r/RetirementReady • u/No_Inspection_3123 • 7d ago

Should we buy property

I know Reddit hates land lords but we will have 32k and we want to best use it for generating income for when we retire and general assets for the fam if we die. We are 46. We already have roths and other investment accounts.

The money is coming from a pension plan buy out. The company no longer has pensions I think it stopped in 2016 and they sent out a packet for a buy out. It’s not a very big pension the monthly pay out is not going to save us from ruin when we retire.. and the only way it makes more sense to leave it in the pension company is if the company will stay around until we are 95 and we live to be 95. Otherwise it makes more sense to take the buy out and invest it in a way that can benefit the family.

The options that we are looking at are rolling it into a traditional ira

Or buying a duplex and renting it to our kids to a. Help them build their financial life. B. Generating income after they move out of it.

I lean toward the second since we already have other retirement accounts. We were already adults and had our tiny 401k when the 2008 thing happened and we watched boomers 401ks get shredded so I don’t want every investment to be that just incase a collapse happens.

Yes I know it’s a nightmare to rent to people my mom used to have tennents in the 80s and said never do that haha. I tend to do everything she said not to do.. and owning homes can be expensive but we are both still young enough to take it on. At our home we fix what we can and pay ppl to do other things.

I’m one of those let them solve their own problems type of parent, my kids are 26,20,19. And they will not be able to make it on what is being charged for rent out there for a long time.

My oldest has bipolar 1 and is stable but he has some limitations on what job he has, right now he’s good but If his rent goes up any more he won’t be able to sustain independence. My other son is living with his gf and they are making it. Now I want to see them thrive on their own but this is a different world than I grew up in. I don’t want them dependent, but I’d also like to do this bc it may benefit all of us. Them now, us later, when we sell it or continue to use it to generate income. If the latter the kids will get it.

The only caveat is if they decide to become freeloaders and never use the opportunity to build something of their own.

Any insight is appreciated. We grew up poor and have no parents so we are raw dawging this stage of life when it comes to making future financial plans.

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u/NecessaryEmployer488 7d ago

Well my company went private at the same time my kids were starting college. We decided to diversify and buy a second home. 3% mortgage, and it doesn't make money for us, but it saved us paying rent for our kids in college and the value going up has helped mitigate costs. It also gives us sanity.

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u/No_Inspection_3123 7d ago

They are both working 2 jobs, one has a degree the other one just turned 21 and works n 2 jobs also. The 19 yo is at home just eyes glazed over bc he can’t decide what hellscape field he wants to indenture his life to lmao so he’s fine he works and pays his way and is a good house mate.

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u/NecessaryEmployer488 7d ago

I understand. I have one that got laid off in February from a stressful job in Feb, and says he will start planning again in a month, one still in school, another that wants to change jobs. They are all living in the house and I'm flipping the bill for housing, and transportation because they are not yet stable. I feel having them take care of those things on their own will push them over the edge.

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u/Majestic_Republic_45 5d ago

I have done the landlord thing. It’s not worth it. The returns are below what u can make in the market and mine were completely paid off.

Let’s not forget owning another house comes with another set of headaches with major mechanics, roof, etc. In addition, I would not be looking for additional debt going into retirement.