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Tag Archives: investment property

Adding Diversity to Retirement Investments

diversity in retirement

Adding diversity to retirement investments is the key to weathering ups and downs in the market and greater overall economy. While some combination of stocks, bonds, and cash should probably make up the bulk of retirement portfolios, adding a few alternative asset classes can help keep balances up during traditional stock market downturns.  There are several types of alternative investments outside traditional stock and bond funds. Precious Metals Many investors consider precious metals to be an investment to hedge against inflation and an unstable economy. During recent recession years, gold and precious metals have certainly held their value while other investments were all over the charts. There are a few ways to invest in precious metals. If you have a vault or other secure storage space, bars and coins known as bullion can be purchased, but this is not always a practical solution for most investors due to the difficulty of transport. It also might be difficult to find a buyer if a quick sale was necessary. Probably the easiest way to add this type investment to your portfolio is by purchasing funds such as a gold IRA retirement account. Gold IRA’s can be new or established by rolling over ...

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Housing Prices in Southwest Colorado

House on 3 acres for $290,000

  Since real estate is one of my favorite topics, I couldn’t miss the chance to add my two cents along with some other recent blog posts about how much house you can get for $150,000, $250,000, or $1 million. Make sure to check out these other areas if you missed them. Portland: Frugal Portland New York: Broke and Beautiful Life Denver: Shop My Closet Project Silicon Valley: Don’t Quit Your Day Job New Jersey: Red Debted Stepchild Central Indiana: Club Thrifty Aukland: NZ Muse Guatemala: Reach Financial Independence Colorado Housing Prices Southwest Colorado is a bargain in my opinion. That’s one reason why we live here. It’s rural, so if you’re looking for big city excitement, it’s no where to be found. You can, however, enjoy an outdoor paradise with mountain or desert terrain. Take your pick or do both on the same day if you’d like! With the money we save by living here, we can take a weekend road trip to the city when we feel the need. Denver, Phoenix, Albuquerque, Las Vegas, and Salt Lake City are all less than 8 hours away, and we can be in LA in 12 hours. Colorado is all over ...

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The First Year of Owning a Rental Property

It’s been one year since our first residential rental property opened for business. I say that because it’s very important to treat investment property like a business.  After being landlords for a year, I though I would share my thoughts on the whole process of rental property ownership.  Property Management We chose to use a property management company, and up to this point, they have done a wonderful job. The particular company we use has an agreement in each lease to go in every quarter for seasonal updates to the property. While, this is true, it’s actually a great way to make sure the tenants aren’t running a meth lab in our house. We also get a report after each inspection with repairs that need to be done right away or in the future. Our tenants were late with the rent only one time. They paid about a week late, along with the $50 late fee.  I’m honestly very glad I haven’t had to go chasing anyone for late rent because I’d probably be a sucker for a sob story. For now, we will keep property management so that we don’t have to worry about things like this.  Unexpected Costs ...

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Flipping a House: Beware of Partners

      As you might recall, we are currently in the process of flipping a house. We partnered up with a property management/ remodeling company for this project. Basically, they brought us the deal. We are putting up the money, and they are responsible for taking care of repairs and remodeling the property. You can read more about the financial details in the previous two posts. We Flipped a House!- Part 1, Buying the House We Flipped a House!-Part 2, Renovating a Distressed Property My last update had us almost finished and ready to put the property up for sale. However, not very long after that post was published, the wheels fell off, and we have not seen much progress toward finishing the house. If you do want to purchase real estate as an investment, I would be very careful before deciding to take on a partner. What Happened? Honestly, I’m not sure. When we noticed that no progress was being made, I repeatedly tried to find out why. I got a whole slew of excuses; everything from “my Mom has been ill” to “we had an emergency with another rental property”.  We are pretty reasonable people, but this was ...

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Financial Independence Day

Happy Independence Day to all of my US readers today. I hope you get to enjoy a day off, eat some good food, and watch fireworks. If you don’t live in the US, well Happy Thursday. I’ll either be completing or recovering from a triathlon, so sitting around this evening sounds just wonderful. My friend Pauline from Reach Financial Independence has asked me to share some thoughts on what it means to be financially independent. I’m not there, yet but hope hit Financial Independence Day in a few years. I’ve seen several  arguments discussions about what it means to be retired. Does retirement begin with achieving financial independence? Can you call yourself retired if you still work? How many times can you retire? Honestly, the name you call it doesn’t matter. Becoming financially independent allows you to do whatever you want. What Does Financial Independence Mean to Me? Financial Independence is when you have enough money to cover the cost of all of your expenses without having to work for a paycheck to provide that money. You could argue that my in- laws are financially independent. They live solely on social security and own nothing other than their vehicles and ...

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