Don't know how to increase your father's wealth, but Pooh has some really good tips on how you can get that $500k quickly.
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Don't know how to increase your father's wealth, but Pooh has some really good tips on how you can get that $500k quickly.
Quote:
Originally Posted by GambleBotsChafedPenis
invest aggressive when you're young (only money, you will always make more etc) and conservative when you've amassed a sum of money and are ready to sit back and enjoy life. like daly said nbh's father shouldn't be looking to get max return on the 500k. that would require a lot more gambling w/ your investments.
agreed...when you are in your 60s you aren't looking for growth so to speak...preserve the capital and make sure inflation doesn't kill the base...Quote:
Originally Posted by lewfatherQuote:
Originally Posted by GambleBotsChafedPenis
invest aggressive when you're young (only money, you will always make more etc) and conservative when you've amassed a sum of money and are ready to sit back and enjoy life. like daly said nbh's father shouldn't be looking to get max return on the 500k. that would require a lot more gambling w/ your investments.
Learn to live off his social security for a while.
Until the market takes a dump, then invest in good dividend companies who haven't lowered dividends in decades.
His SS won't come close to paying his expenses. If he takes SS at 62 the absolute max he can get is $2102 a month. And he probably isn't getting that, maybe $1500. It is expensive as shit to live where we do, that isn't covering much.Quote:
Originally Posted by Texter
After taking in all these responses and thinking about it, he is pretty much going to have to take some risk, or be forced to downgrade his current lifestyle/housing. There is no way what he has coming will sustain him for as long as he needs it to with his current obligations. The house he is in now is worth 750k right on the water and his dream house basically, no way he wants to move. Tough decisions looming me thinks.
He want to eat pasta for the rest of his life and live in his house or sell and move to an ocean front condo down south and have over a million in the bank?
It's a legit question.
Why is it a given that he retires at 62? Sounds young if he's healthy.
I always kinda assumed it was 67 or more.
I would target the business he just sold.
500k on blackjack at a reno casino with generous room comps
he wins he lives like a weird howard hughes he loses literally social security probably gets him a 2 bedroom next to some nice old ladies who leave their ice tea outside to brew in the sun
He has mentioned retiring down to South Carolina before. He could live like a king down there for the same money spent up here getting by.Quote:
Originally Posted by Daly
One other thing I just thought of was he could conceivably draw down the assets over the next 10 years and then hope the appreciation on his house will give him money for the rest of the way. That property could easily be worth 900k in 10 years even at a very conservative appreciation rate. By that time the mortgage would be paid down to about 450k I am guessing. Maybe he can make it work after all, but that is a hell of a roll of the dice.
you need to literally buy your father a boat and murder him on it and collect the whole 9
just a traaaaaaaaagic fishing accident bro hes had a good run
Quote:
Originally Posted by Sanlmar
He sold a bar/restaurant and he is damn lucky he did it 3 years ago. No chance he is getting back in that business they are dropping like flies. Almost unsustainable, he was losing money on a long established place by the end. Lots of factors but you wouldn't catch me dead in that business right now. The only way you can make it work is if you have insane money, and own like 10 of them at once.
so were set on you killing your father for the insurance right its better for him longterm anyways
I personally am with Daly, I aspire for ocean front condo retirement (cheap one) and sit on a pile of cash.Quote:
Originally Posted by NaturalBornHustlerHe has mentioned retiring down to South Carolina before. He could live like a king down there for the same money spent up here getting by.Quote:
Originally Posted by Daly
One other thing I just thought of was he could conceivably draw down the assets over the next 10 years and then hope the appreciation on his house will give him money for the rest of the way. That property could easily be worth 900k in 10 years even at a very conservative appreciation rate. By that time the mortgage would be paid down to about 450k I am guessing. Maybe he can make it work after all, but that is a hell of a roll of the dice.
He may need to just keep working, even PT to keep busy and bring in 20-40k. If the place he just sold runs on hard times, he could go back and work PT and offer to help manage it, and buy the place back for pennies on the dollar at some point, and you take over with Dad training you. Its a tried and true way many families have made $. Just a thought.Quote:
Originally Posted by NaturalBornHustlerHe has mentioned retiring down to South Carolina before. He could live like a king down there for the same money spent up here getting by.Quote:
Originally Posted by Daly
One other thing I just thought of was he could conceivably draw down the assets over the next 10 years and then hope the appreciation on his house will give him money for the rest of the way. That property could easily be worth 900k in 10 years even at a very conservative appreciation rate. By that time the mortgage would be paid down to about 450k I am guessing. Maybe he can make it work after all, but that is a hell of a roll of the dice.
Are you saying the mortgage on his house is near $750k too? Yeah, no way he's retiring in that place with only $500k.
Have him open an account at Fidelity. Take that $500k and buy roughly 125k shares of IVH on triple margin. That many shares will get him $15,625 per month in dividends. Margin interest run him around 4k per month so he'd be able to live on like $11k per month before taxes. That plan would work well for him....until it doesn't.
Quote:
Originally Posted by CharhamHe may need to just keep working, even PT to keep busy and bring in 20-40k. If the place he just sold runs on hard times, he could go back and work PT and offer to help manage it, and buy the place back for pennies on the dollar at some point, and you take over with Dad training you. Its a tried and true way many families have made $. Just a thought.Quote:
Originally Posted by NaturalBornHustler
LOL the day he signed the agreement both of us thought about the dream scenario.....where the new owner can't come up with the final payment and he can take the bar back. Would be like hitting the lottery.
The new guys are Iranians who own all these gas stations I heard, they don't fuck with anyone else but their own. Which makes me think there isn't a chance in hell they are defaulting on that last payment. But we can dream. I'm guessing they are using it for a write off, there is no way they are making any money in that place. A lot of the money my Dad made when he was killing it came from the video poker machines. Once the economy died those customers went away, and so did a large chunk of what was keeping the place afloat. He had a hell of a run though, bought the place dead broke pretty much, not that long ago either.
Actually this isn't far fetched and can be done. Have him buy a shitty unprofitable pizza place for cheap. Then sell to Spartard for 3X what he paid. Two months later he buys back at 1X. Rinse and repeat.Quote:
Originally Posted by NaturalBornHustlerQuote:
Originally Posted by Charham
LOL the day he signed the agreement both of us thought about the dream scenario.....where the new owner can't come up with the final payment and he can take the bar back. Would be like hitting the lottery.
The new guys are Iranians who own all these gas stations I heard, they don't fuck with anyone else but their own. Which makes me think there isn't a chance in hell they are defaulting on that last payment. But we can dream. I'm guessing they are using it for a write off, there is no way they are making any money in that place. A lot of the money my Dad made when he was killing it came from the video poker machines. Once the economy died those customers went away, and so did a large chunk of what was keeping the place afloat. He had a hell of a run though, bought the place dead broke pretty much, not that long ago either.
No I mentioned earlier he has about 200k equity. Only owes about 500k on it. Worth minimum 700k, just to be safe.Quote:
Originally Posted by Pooh
But think about it even at a 2.2% yearly appreciation rate he makes an additional 75k over 10 years, even factoring in the property taxes. And he obv will be paying the house down during that time too, probably by another 30k(total guess, but probably close). Add all that to the current equity and he has 300k more to work with, unless the housing market crashes.
Holy shit 11%Quote:
Originally Posted by Pooh
if you dont want to kill your father you can always make him think he is losing his mind and then put him in the cheapest nursing home you can find until one of the nurses kills him
start by moving things around his house, hiding his keys, etc
then you can escalate by making up things that he told you, show up with 2 watermelons and pretend he told you to buy him two watermelons
eerrrrrr dude, you are forgetting inflation and mortgage IR he's paying. That 2.2% appreciation is more like -3.3% depreciation. that additional 300k in 10yrs will be worth FAR less than you think. He's living way out of his budget. 500k can be stretched out for a longgggg time assuming you keep your expenses low, this does not seem like the case.Quote:
Originally Posted by NaturalBornHustlerNo I mentioned earlier he has about 200k equity. Only owes about 500k on it. Worth minimum 700k, just to be safe.Quote:
Originally Posted by Pooh
But think about it even at a 2.2% yearly appreciation rate he makes an additional 75k over 10 years, even factoring in the property taxes. And he obv will be paying the house down during that time too, probably by another 30k(total guess, but probably close). Add all that to the current equity and he has 300k more to work with, unless the housing market crashes.
Honestly, he should seek the help of a real professional (Daly approved), get a side job for 3-4 yrs making pennies but total return on his SS will be much better and then once he is legit retired he should get an off the books job.
Quote:
Originally Posted by NaturalBornHustler
Everyone seems to be stuck on this 500K thingy.
Just for clarification, he has more than that correct? The 500K was just part of the money, no?
Mortgage "IR"Quote:
Originally Posted by handicapmeeerrrrrr dude, you are forgetting inflation and mortgage IR he's paying. That 2.2% appreciation is more like -3.3% depreciation. that additional 300k in 10yrs will be worth FAR less than you think. He's living way out of his budget. 500k can be stretched out for a longgggg time assuming you keep your expenses low, this does not seem like the case.Quote:
Originally Posted by NaturalBornHustler
Honestly, he should seek the help of a real professional (Daly approved), get a side job for 3-4 yrs making pennies but total return on his SS will be much better and then once he is legit retired he should get an off the books job.
What in the hell are you talking about?
500k is the last payment.Quote:
Originally Posted by Hockey GuyQuote:
Originally Posted by NaturalBornHustler
Everyone seems to be stuck on this 500K thingy.
Just for clarification, he has more than that correct? The 500K was just part of the money, no?
He got an initial payment, paid off any and all business/personal/tax debt.
Been living on the payments from new owner that are about to end for past 3 years.
But basically it is the 500k plus house equity of 200k left. Plus SS monthly when that kicks in.
What are the monthly mortgage payments including tax and insurance?
Think around $2500. It might even be less.Quote:
Originally Posted by Pooh
It was like $3500, but then Ocwen modified it due to the class action judgement against them and it dropped an insane amount. That is why I thought it was a scam when he told me about it, because it just wasn't adding up. They knocked him down to like 2% or something ridiculous I think from the original 5% or something.
Interest Rate... you know the thing you have to pay when you borrow money????? So a house appreciating at 2.2% a year, with inflation and your INTEREST RATE on your mortgage, you are actually losing money the longer you hold.Quote:
Originally Posted by NaturalBornHustlerMortgage "IR"Quote:
Originally Posted by handicapme
What in the hell are you talking about?
OK that is what I thought. My point was he could still gain more money down the road from the house.Quote:
Originally Posted by handicapmeInterest Rate... you know the thing you have to pay when you borrow money????? So a house appreciating at 2.2% a year, with inflation and your INTEREST RATE on your mortgage, you are actually losing money the longer you hold.Quote:
Originally Posted by NaturalBornHustler
And he has to pay to live somewhere even if he doesn't have the mortgage, so he is basically laying out that money either way every month.
I guess depends how you look at it, but I see what you are saying.
Now now be nice. I didn't know what the hell you were referring to either. Interest is deductible and his interest rate is so low that the mortgage is probably a good thing. That said, 500k isn't even close to enough to retire on for his father unfortunately. It would be a stretch even if the house was fully paid off.Quote:
Originally Posted by handicapmeInterest Rate... you know the thing you have to pay when you borrow money????? So a house appreciating at 2.2% a year, with inflation and your INTEREST RATE on your mortgage, you are actually losing money the longer you hold.Quote:
Originally Posted by NaturalBornHustler
Smartest thing he could do is dump the house, take the equity and buy a house for 200k free and clear. Then he has a chance. Problem is this is the dream house and people rarely do the smartest thing.
sorry if I was mean. I get what your saying, but why doesn't he move out now rather than 10yrs later? Buy a smaller place and pay it in cash and have 0 interest payment what so ever??Quote:
Originally Posted by NaturalBornHustlerOK that is what I thought. My point was he could still gain more money down the road from the house.Quote:
Originally Posted by handicapme
And he has to pay to live somewhere even if he doesn't have the mortgage, so he is basically laying out that money either way every month.
I guess depends how you look at it, but I see what you are saying.
It's amazing to me how people become attached to a house. I'm in a 3/2 with a pool and all the trimmings.... I can't wait to dump this thing. The second my kid moves out (in ten years) I'm going right to the beach for half the cost.Quote:
Originally Posted by Pooh
I was just assuming that he had way more than that from the OP.Quote:
Originally Posted by NaturalBornHustler500k is the last payment.Quote:
Originally Posted by Hockey Guy
He got an initial payment, paid off any and all business/personal/tax debt.
Been living on the payments from new owner that are about to end for past 3 years.
But basically it is the 500k plus house equity of 200k left. Plus SS monthly when that kicks in.
I see no scenario where he is any position to retire & live on the income from 500K unless he did some very high-risk stuff & happened to hit it out of the park.
I have substantially more than that right now plus a relatively new home free & clear & don't feel I can even come close to retirement yet. Granted I am 10 years younger & I'm talking Canadian currency but still.
Lot of good advice here already along with a few stupid things.
But you are better off listening to the richer people on this subject. I would suggest:
1. Sell the house, downsize, cut the monthly nut however you can. Add this money to the retirement bankroll.
2. Speak to a financial advisor and get ideas, but not necessarily sign up. Look at all the horror stories of people getting screwed.
3. As pooh said get a fidelity account or vanguard is good too. Invest 1/3 REITs, 1/3 treasury bonds or an etf like tlt, 1/3 in a dividend etf like SDY. I would stay away from bonds because the interest rate hikes will likely cause problems.
If this doesn't make enough to support him, then i would look at something he can rent and keep an eye on like a 2 family house or a place with an extra room but has to be careful who the tenant is. If short on money then he needs to work,rent a room, or run some kind of small business to cover.
BTW is Pops single? If single another angle would be find a rich wife. I know a guy who did it. Got divorced was very bitter, worked out every day to look good. Bought a nice car and clothes to advertise. Hung out in bars up in the hamptons, and scored a rich widow. Plus got to rub it in the face of his ex.
A lot better investment than bitcoin, gold, or buying pieces of a poker player.
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Originally Posted by MumblesBadlyIf he uses a financial planner, be sure that planner only charges a flat fee, and does NOT get *ANY* commissions for finders fees for investing. For example, try this site to look for one to scope out.Quote:
Originally Posted by NaturalBornHustler
https://www.napfa.org
I can make him 2.5k a week for life
Quote:
Originally Posted by NaturalBornHustlerHis SS won't come close to paying his expenses. If he takes SS at 62 the absolute max he can get is $2102 a month. And he probably isn't getting that, maybe $1500. It is expensive as shit to live where we do, that isn't covering much.Quote:
Originally Posted by Texter
After taking in all these responses and thinking about it, he is pretty much going to have to take some risk, or be forced to downgrade his current lifestyle/housing. There is no way what he has coming will sustain him for as long as he needs it to with his current obligations. The house he is in now is worth 750k right on the water and his dream house basically, no way he wants to move. Tough decisions looming me thinks.
Can he rent the house out during vacation season and stay with you.