401k and other retirement plans: have you raided yours yet?

[crazy canuck]

Surely there are health regulations against that?

One would have thought the US banking sector would have a lot of regulation that simply wasnt there.

[stjaba]

I've thought a lot about investing in RE once I accumulate some cash. My preferred strategy would be going the slum lord route and renting out Section 8 housing. Since the government pays a large portion of the tab, there's much less of a risk of non-payment. Your tenants are incentivized to follow the rules and not fuck up your place because they stand to lose Section 8 benefits if they stop paying rent or break rules.

[Barrister]

Just received the following email:

I want you to be among the first to hear about the Premier's Televised Address. It is scheduled for broadcast on CTV across the province tomorrow (Thursday) night at 6:52 p.m. It will be re-broadcast on CTV2 at 7:52pm, 11:52pm and on January 25 at 11:52 am.

I know there's been a lot of discussion lately, among the Alberta Public Service and across the province, about the current fiscal state of the province and what that might mean to both the revenue and expenditure sides of the equation. Premier Redford will speak to Albertans about her vision for our province, the priorities of this government, the opportunities to meet the growth that we continue to experience as well as the fiscal challenges that we currently face. I encourage you to watch the Address, which will be immediately followed tomorrow night with a special edition of the Connector delivered to your inbox that will feature highlights from the address, along with messages from the Premier and me to all members of the APS.

I'm confident that through an informed, committed, inspired and engaged Alberta Public Service, we will rise to any challenge put before us. With your support, we'll continue to deliver the core programs and services important to Albertans.

There will be blood.   


For those of you not following the state of Alberta's economy, the recent declines in the price of oil (which are magnified here due to limited shipping / refining capacity) is doing a number on the province's bottom line.

What a stupid announcement.

'Despite record-setting deficits, we are committed that we will not raise taxes, nor will we cut social services'.

Instead they are going to "review spending", as if we haven't heard that before.

The first shoe finally dropped - a three year salary freeze for non-union and management public servants (i.e. me).

The second shoe, pensions, is still dangling... 

[Phillip V]

I will get details this week of government contract change at my workplace; may have to take a $10k-$20k paycut.

[Barrister]

I will get details this week of government contract change at my workplace; may have to take a $10k-$20k paycut.

I'm not bitching about a salary freeze because I know what the alternatives could have been.

Hope that doesn't happen to you PV.

[Caliga]

*catches up on the thread*

Investing in rental properties: stupid IMO.  Who wants to deal with scum all day?
Investing in land: much less stupid.  I've been thinking about buying timber land down here or a bit further south.  While the trees are maturing I can camp, fish, etc. there.  Once it's TIMMMMMMMBER time, I make money off of my recreational land, and then I'd consider building a cabin on it.  What is this scheme free of?  Scummy poor people.

[MadImmortalMan]

*catches up on the thread*

Investing in rental properties: stupid IMO.  Who wants to deal with scum all day?
Investing in land: much less stupid.  I've been thinking about buying timber land down here or a bit further south.  While the trees are maturing I can camp, fish, etc. there.  Once it's TIMMMMMMMBER time, I make money off of my recreational land, and then I'd consider building a cabin on it.  What is this scheme free of?  Scummy poor people.

How much capital is required to make it worthwhile?

[Caliga]

I've seen decently sized timber parcels for ~$100K in Tennessee, Mississippi and Alabama.

[derspiess]

Investing in rental properties: stupid IMO.  Who wants to deal with scum all day?

A gal in the office owns some rental property.  I get to overhear her talking to her tenants now & then.  I'm with you-- no thanks.

[Caliga]

Did I ever tell you guys the story about the campground my parents used to own that had a live-in manager, and after my dad fired the guy he refused to leave and it took OVER A YEAR of court wrangling for my dad to get his ass out of there?   That experience alone would make me shy away from ever owning a rental property.

[MadImmortalMan]

A quick look says the land goes for between 2000 and 5000 per acre. So for the cost of a residential property you could get maybe 50 acres. What kind of income can you expect out of that?

[Ed Anger]

I had no problem renting out my 1st house. Of course, I didn't rent it out to scum.

[CountDeMoney]

A quick look says the land goes for between 2000 and 5000 per acre. So for the cost of a residential property you could get maybe 50 acres. What kind of income can you expect out of that?

Sharecropping.

[MadImmortalMan]

I had no problem renting out my 1st house. Of course, I didn't rent it out to scum.

Well I rented mine out to my mom. Which has the risk that I wouldn't ever want to evict her, naturally.   

[Barrister]

The one time I looked into it you could purchase naked farmland (broken but no improvements, far from town) for about $100k, and expect to receive ~$2-3k per year in rents.  Oh - quarter section worth, or 160 acres.

Which of course is a 2-3% ROI.  Land of course is basically inflation proof and quite safe, but hardly lucrative.