New to BP but been investing for a while.
Hey All,
I'm in my 50's I've been investing for 15(ish) years I've recently retired via rental real estate. I'm contemplating a path towards decumulation by selling a few and putting a bit more into the stock market.
We currently have 14 and no debt, I'm looking for some advice from those that have done the same or have done the research.
Thanks for reading this,
John
Most Popular Reply
@John Johnson, my position is similar, BUT I have never considered what you are talking about. Here are a few thoughts:
1. The stock market is in scary bubble territory! If anything I am considering pulling more money OUT of stocks for a while.
2. If you are relying on rentals for income, why would you want to rock that boat?!? There are some things you may not want to screw with for security's sake especially since you do not yet qualify to claim your Social Security benefit.
3. Selling to buy stocks means you will pay taxes on the sale. Since you have been investing ~15 years that means when factoring in depreciation you would likely pay taxes on most of the proceeds from the sale!
Who wants to pay the tax man?!?
4. If your goal is passive investing, there are ways to do a 1031 exchange to sell a property and invest the proceeds in something more passive but still real estate related.
5. I personally intend to accumulate more real estate until I die! My heirs will inherit at the stepped up basis and avoid federal tax. I'd rather my heirs get more and Uncle Sam get less!
5. Having no debt on rentals is "ok" if you are retired and simply want to live on the cash flow and self manage.
It is secure and allows you to get the income you need while managing LESS properties. So, you don't have to
6. Maybe if you state what your goals/reasons are people could give some good responses.
7. If you are looking for passive/secure investing/savings I would consider precious metals as something worth owning even in modest amounts.