Are you still in the stock market?

Brookswood said:
They might have their stocks in IRA or other tax deferred accouts. But, anybody who’s had stocks in a regular taxable account for a decade or so would be hit with capital gains tax. Unless the stock picks were poor. Assuming descent stock picks over the past decade then the tax on the gains is minimal compared to ordinary income taxes for BIG earners.

Personally, I am waiting for the market to drop 25% or more. Then I will have an opportunity to buy into a US Market index fund at a lower price and make some real money in a few years. But, what do I know. I can’t predict the future. Good luck with whatever you choose to do.
Click to expand...
you have people still waiting from 2008
 

I'm still in 40% equities because I can't sell some due to taxes, but I still sleep much better at night. I make modest gains when the market is up and see modest losses when it is down. On Friday the Dow was down over 700 points due to the impending tariffs but I wasn't heavily impacted. It's a nice feeling.

I bought a new car a little over a month ago after driving the same one for 9 years and I'm glad I did. It wasn't based on brilliance and timing. I simply wanted one and got it. Whew!
 

The two [stocks] I hold {P&G and Smuckers food} are still holding their own, so for now I'll stay in. I have some other investments that are Ok as well.
 
Three years ago I took most of mine out and invested in real estate with rental income in a highly desired area for summer renters. It's gone very well and I feel safe and secure. My renters have all been respectful of the property and no issues whatsoever. I love that they can get away, relax, enjoy the view, and take it all in. Everyone is happy and smiling...including me.
 
Lara said:
Three years ago I took most of mine out and invested in real estate with rental income in a highly desired area for summer renters. It's gone very well and I feel safe and secure. My renters have all been respectful of the property and no issues whatsoever. I love that they can get away, relax, enjoy the view, and take it all in. Everyone is happy and smiling...including me.
Click to expand...
An old acquaintance made the same choice several years ago.

Her portfolio is a waterfront ‘beach shack’ on Cape Cod.

It provides some income, a tax benefit, the occasional getaway, and amazing appreciation in value.

It wouldn’t be my choice but it’s definitely a good option for many.
 
Aunt Bea said:
An old acquaintance made the same choice several years ago.

Her portfolio is a waterfront ‘beach shack’ on Cape Cod.

It provides some income, a tax benefit, the occasional getaway, and amazing appreciation in value.

It wouldn’t be my choice but it’s definitely a good option for many.
Click to expand...
Yes to income
Yes to tax benefit
yes to appreciation
But you still don't know the end result until tou sell the property and payback all the depreciation and capital gains from the sale....unless you plan to leave the property to the heirs, in which case, it's not your property at the end.
 
OldOld said:
Yes to income
Yes to tax benefit
yes to appreciation
But you still don't know the end result until tou sell the property and payback all the depreciation and capital gains from the sale....unless you plan to leave the property to the heirs, in which case, it's not your property at the end.
Click to expand...
I don’t believe that you can accurately predict the end result of any investment.

I have some mutual funds that I will probably never sell because of the capital gains but I don’t feel that they were bad investments.

Every situation is different but it’s probably no worse than planning to exhaust your resources and go on welfare. 😉🤭😂
 
Aunt Bea said:
I don’t believe that you can accurately predict the end result of any investment.

I have some mutual funds that I will probably never sell because of the capital gains but I don’t feel that they were bad investments.

Every situation is different but it’s probably no worse than planning to exhaust your resources and go on welfare. 😉🤭😂
Click to expand...
Nobody is saying yours or mine is better or worse.
But the purpose of income property is just as what I have pointed out.
 
OldOld said:
Yes to income
Yes to tax benefit
yes to appreciation
But you still don't know the end result until tou sell the property and payback all the depreciation and capital gains from the sale....unless you plan to leave the property to the heirs, in which case, it's not your property at the end.
Click to expand...
I do plan to leave the property to my children. You said, "in which case it's not your property in the end". Well, in the end I won't need the property. I'll be sleeping on a fluffy cloud with a spectacular view 😇

But it just occurred to me that you meant if I leave the house to my children while I'm still alive. I have heard that some seniors do give their children their house and all assets while still alive so they don't have to pay for staying in a nursing home. But my children keep telling me that they won't have me going to a nursing home. I still need to sort that out. I know that can become too burdensome in some cases.
 
Last edited:
As of today, even with the downturn, my investment portfolio is still up by 7.21% for the 12 month period, but year to date return is -2.36%. Before the downturn the 12 month period was a little over 21%. During downturns, my utility funds and a couple of other investments hold up well. Since I'm in it for the long haul, I'll buckle up and see where the ride takes me.
 
Lara said:
I do plan to leave the property to my children. You said, "in which case it's not your property in the end". Well, in the end I won't need the property. I'll be sleeping on a fluffy cloud in heaven with a spectacular view 😇
Click to expand...
Great. I am sure your children are happy about that. Everybody is a winner.
 
OldOld said:
Yes to income
Yes to tax benefit
yes to appreciation
But you still don't know the end result until tou sell the property and payback all the depreciation and capital gains from the sale....unless you plan to leave the property to the heirs, in which case, it's not your property at the end.
Click to expand...
And if it's not your property at the end, I am not sure real estate property is a better investment than stock equity. Stock equity can be easily liquidated any portion of it and you can spend the proceed. But with a real estate property, you can't sell one part of it.
 
Last edited:
Lara said:
I do plan to leave the property to my children. You said, "in which case it's not your property in the end". Well, in the end I won't need the property. I'll be sleeping on a fluffy cloud with a spectacular view 😇

But it just occurred to me that you meant if I leave the house to my children while I'm still alive. I have heard that some seniors do give their children their house and all assets while still alive so they don't have to pay for staying in a nursing home. But my children keep telling me that they won't have me going to a nursing home. I still need to sort that out. I know that can become too burdensome in some cases.
Click to expand...
My son, (late) DIL and honorary daughter each said they wouldn't see me go into a home. That's what I said about my mother too. But I wound up having to put her in one because of my health issues and her worsening dementia. Also she kept falling. Blessedly, I found a place that took excellent care of her and the staff loved her. I'm saying this to say that sometimes life supercedes intentions and dictates what actually happens.

I told my loved ones that they might not be in a position to take care of me themselves. My honorary daughter has had her own serious health issues for years and as it turns out, my DIL isn't even here any longer. I did advise my son to try home health care for me first, if at all possible.
He said he would install nanny cams if we went that route. Also, his hours vary by day, so he could be home anytime.

I'm sure your children and mine would'nt do this, but I've read stories about children who "inherited" their parents' homes before they died and actually kicked their elderly parents out !! How heinous is that?! So if one's child(ren) are not trustworthy, that can be a risky move. I admire that you are thinking of your children in your estate planning. Like you, I hope to leave my son a nice inheritance.
 
Last edited:
Good post Diva, thank you. I have no doubt that my children would be trustworthy plus I could only assign one to be executor of my estate. So what she says goes. I chose her because she was the only one at the time to settle my estate that lives in the same state as me which makes settling the estate faster and easier. Everyone understands.
 
Lara said:
I do plan to leave the property to my children. You said, "in which case it's not your property in the end". Well, in the end I won't need the property. I'll be sleeping on a fluffy cloud with a spectacular view 😇

But it just occurred to me that you meant if I leave the house to my children while I'm still alive. I have heard that some seniors do give their children their house and all assets while still alive so they don't have to pay for staying in a nursing home. But my children keep telling me that they won't have me going to a nursing home. I still need to sort that out. I know that can become too burdensome in some cases.
Click to expand...
Do you have your properties set up in trusts for your children?

BTW - Love that you are a friend of the arts.
 
Lara said:
Good post Diva, thank you. I have no doubt that my children would be trustworthy plus I could only assign one to be executor of my estate. So what she says goes. I chose her because she was the only one at the time to settle my estate that lives in the same state as me which makes settling the estate faster and easier. Everyone understands.
Click to expand...
You are are confusing the role of estate executor with beneficiaries. In your living trust, you can actually specify how the proceed of your estate(including your house) should be distributed. For example, you can specify the proceed to go evenly to all your children.
 
You must log in or register to reply here.

Back
Top