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Investing/Strategies / Retirement Investing
|Subject: Re: Funding our retirement||Date: 8/9/2000 12:12 PM|
|Author: tsouth||Number: 24028 of 76106|
Your rental properties sound as though they are making a decent income. Evaluate your financial needs. Could you live off the net income of the rental properties and your military retirement? Have you considered your long term needs (health, housing, etc.)? How about health insurance -- would you need to get individual coverage? Don't forget to figure the property insurance and maintenance for all of your properties as expenses. Also, if you became unable to manage the rentals in the future, would you be able to sell them and live off the money? Do you have insurance coverage in case one of your tenants sues you for any reason?
You may be close to a point where you could be financially independent, but there is a lot of number crunching you should do first. I do agree that if you've been handling your real estate investments for a while and the income is fairly stable, that it is feasible to live off the income, but there is a lot of planning you should do before you quit your jobs. I would recommend keeping some money aside in case of emergency or expensive property maintenance. If you don't touch the money you have in stocks, you'll still have that money for later in life when you may not be able to live off the rental income. But you do need to take a close look at your standard of living and how you expect your financial life to change in the future, and how long you expect your assests to cover your expenses.
You may want to consider using a fee-based Certified Financial Planner to help you make the transition financially.
Best of Luck,
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