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Conversationalist

Re: RETIREMENT INVESTMENT

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Message 1 of 14

In many cases, tax liens are against seniors.  Many seniors have paid off their homes but for variety of reasons, they over looked their property tax payments.  Their homes were then put on the tax lien auction.  Unfortunately seniors don't read counties' tax break letters, they lose the chances of getting their taxes reduced.  Being ignorance does not get you off the hook on tax payments.  It is a sad situation when we see some seniors lose their homes this way.

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Re: RETIREMENT INVESTMENT

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Message 2 of 14
ttryu,
You are absolutely correct. The tax lien "pitchmen" make it sound easy. It is important to understand the details before putting money in anything.
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Re: RETIREMENT INVESTMENT

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Message 3 of 14

I do not.  I would never say you cannot make money in tax liens.  You need to understand the local laws before you get into this.  You could lose money if you don't know.  Also, you should do a lots of research before you jump in.  I know so many online ads saying you could make easy and big money investing in tax liens.  Anytime when someone tells you that you could get rich with little effort and little money.  It usually is not true.

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Re: RETIREMENT INVESTMENT

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Message 4 of 14
larryk678000...Did you attend a seminar to learn how to invest in trust deeds or tax liens?
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Re: RETIREMENT INVESTMENT

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Message 5 of 14

There is no such thing as income without risk.  However, buying rental property at the right price could provide a good income stream.  I have 6 rentals and it is doing well.  Yes, I also invest in stock market for my retirement.  I think rental income is more predictable.  Of course, you have to put up with the headache of repairs here and there.  I have property managers managing my homes for me.  It does not mean I have nothing to worry about it.  The best investment is to have multiple stream of passive income.  So you don't need to depend on one only.

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Re: RETIREMENT INVESTMENT

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Message 6 of 14

I am happy to share items I invest in which are all designed for income:

https://www.retirementincome.net/alternative-investments-for-retirement/

I think one of the most overlooked investments for income is private mortgages (called trust deeds in some states).  Your financial advisor will never mention these because he does not offer them.

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Re: RETIREMENT INVESTMENT

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Message 7 of 14

Retiredtraveler - Thank you for responding.  I appreciate your input and will consider your experience as I try to decide whether this type of investment will be the right one for me. 

Thank you.

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Re: RETIREMENT INVESTMENT

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Message 8 of 14

"...The stock market has been crazy....my financial advisor has never mentioned "junk bonds" because he knows I am a conservative investor. I've had my share of speculative type of investments but at my age I'm through taking too many chances and I definitely don't like losing money....".

 

I know I won't convince you, and there is no intent to. For the purpose of discussion, I'll state that it's really difficult to determine what is 'conservative' in investing. Junk bond funds have not shown themselves to be 'risky'. I know of none of the better rated funds (and someone correct me if they have better intel), to have done poorly, or gone under. The high-yield funds I have certainly don't perform as well as stock funds, but they have been consistently good, across the board. I have the facts-and-figures (and steady income), to show that.

   Junk bond funds, and I stress funds, have not demonstrated the risk so often assigned to them. If you're curious, ask your financial advisor to show you what is so risky with these better-rated, Morningstar junk bond funds.

  Anyway, just providing discussion. I know, from 40 plus years of investing, the money 'experts' are wrong, most of the time. I've never paid for financial advice, and I retired at 55 solely on my investments (well, DW and I both retired on those investments). 10+ years later, 95% in junk bonds, still going strong (again, realizing I missed the huge gains in the stocks, but have kept my income stream consistent for 10 years).   

   One piece of trivia. After the big 2008 crash, junk bond funds dropped in half in price, most about 60% further. They were priced with an assumption of a roughly 35% default rate. The sky was falling after the crash. In the Great Depression, the highest default rate for corporate bonds was 18% -- the highest. Once again, it was a great example of how so few people understand the macroeconomics of the markets, and simply let their misguided emotions rule their investment decisions. 


Just think. The world was built by the lowest bidder.
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Re: RETIREMENT INVESTMENT

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Message 9 of 14
retiredtraveler,
The stock market has been crazy....my financial advisor has never mentioned "junk bonds" because he knows I am a conservative investor. I've had my share of speculative type of investments but at my age I'm through taking too many chances and I definitely don't like losing money.
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Re: RETIREMENT INVESTMENT

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Message 10 of 14

SIMPLEGAL wrote:
".....Good suggestions for sure, and I have both but am hoping to findsomething with a better return....".

That's the rub. The general rule, forever, has been greater risk, greater return. How risky a specific investment may be is the source of endless discussion.

   I invest, almost exclusively in my old age, in 'junk bonds' (low rated corporate bonds). However, I mitigate the risk by investing in bond funds. I get less return, but the chances of a fund 'tanking' is pretty close to nil.  If you read about them, you'll get warnings (as you will with all investments). But, I'm happy with a pretty steady 8%-10% total return, year-after-year. 

   Now, someone else will come along and say, look, the stock market is going nuts, you should have invested in that. Yup, I missed the huge returns of the last 5 years. But, sooner or later, we'll have a major correction in the market. If past history has anything to do with current conditions, we're way overdue for a correction. So, how risky is that?

   That should keep you confused for awhile................

     


Just think. The world was built by the lowest bidder.
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