Stock Market is the bottom in?

[S.T.Fanatic]

I don't know that the banksters give a rip about inflation. They've been lying all the way until about last week when powell and yellen finally admitted inflation is no longer transitory. Even at that, the gov works overtime messing around with the CPI to ensure accurate numbers aren't reflected. I think they want to destroy the dollar. It's a great way to force the great reset. You don't have to ban meat, travel, and having kids. You just make it so damn unaffordable that nobody does it.

Exactly

 

[jsasker007]

Ahhh freedom

 

[b116757]

Ahhh freedom

I think you mean “RIP Freedom died 2021”

 

[jsasker007]

I think it died along time ago, we just were not aware of it. jmo

 

[Apple Junkie]

Anyone ever analyze buying land for retirement investment instead of stocks?

If you could buy and pay off enough land over 30 years, could you utilize revenue off the land for retirement? Or if need be, sell some of it to retire

I think owning land as a retirement strategy is a poor choice, stocks will always win in my opinion. There is zero to minimal income generated from just owning land, and if you think of taxes as the “expense ratio” it is a killer. Better to have a solid retirement strategy put in place first (401k, SEP, or IRA), then set aside other savings to buy, or pay off, land.

The case for buying land is that it is probably never going to be cheaper than it is right now. Nevertheless, get a good retirement plan in place, then buy land to enjoy in your comfortable retirement. I think you can have both – good luck!

 

[Telemark]

I think owning land as a retirement strategy is a poor choice, stocks will always win in my opinion. There is zero to minimal income generated from just owning land, and if you think of taxes as the “expense ratio” it is a killer. Better to have a solid retirement strategy put in place first (401k, SEP, or IRA), then set aside other savings to buy, or pay off, land.

The case for buying land is that it is probably never going to be cheaper than it is right now. Nevertheless, get a good retirement plan in place, then buy land to enjoy in your comfortable retirement. I think you can have both – good luck!

That's a good point. If you are going to invest in land, don't let it be your ONLY investment. It should only be a part of a diversified portfolio.

 

[SD51555]

I think owning land as a retirement strategy is a poor choice, stocks will always win in my opinion. There is zero to minimal income generated from just owning land, and if you think of taxes as the “expense ratio” it is a killer. Better to have a solid retirement strategy put in place first (401k, SEP, or IRA), then set aside other savings to buy, or pay off, land.

The case for buying land is that it is probably never going to be cheaper than it is right now. Nevertheless, get a good retirement plan in place, then buy land to enjoy in your comfortable retirement. I think you can have both – good luck!

I don't know what to make of the land market anymore. The assessor told me last week they're jumping up our bare land valuation 63% from LY because that's what the comps are going for in the past 12 months. At this rate, my place will be worth a million worthless dollars in 3.5 years, and I don't have running water, grid power, a foundation, or a bedroom.

 

[hunts_with_stick]

im concerned the market is going to crash with the wonderful build back better plan our fearless leader is going to implement.

 

[b116757]

We own farm ground a combination of row crop, native hay meadows and pasture ground. Cash rents run 2.5-3 times taxes and insurance costs per year. Depending on the land you invest in it can be profitable but compared to stock market returns it’s a fraction of the return to capital invested. Let’s say you buy a mile section at $1,900,000.00 or $3000 an acre farm rent if it’s rentable $30,000 taxes/insurance $10,000 profit $20,000 a year. Same $1,900,000.00 in stock market times conservative 8% rate of return $150,000 a year. Now the ground will generally appreciate in value but is it going to appreciate $130,000 per year. Let’s do a single family home next. Purchase home $100,000.00 x 1% = $1000 monthly rent
$12,000 a year in rent
$1200 in taxes/insurance
$1200 in upkeep.
Net $9000 a year much closer to a stock market type return but there is management involved that can be a huge headache at times. Single family homes do also appreciate in value so you do gain some there also. I will add that I’ve own multi-family units in the past and will never again own one management is a nightmare.

I own all these investments in real life this isn’t an exercise in academics for me. I didn’t dig out my tax returns for actual numbers but you get the idea.

 

[swat1018]

We own farm ground a combination of row crop, native hay meadows and pasture ground. Cash rents run 2.5-3 times taxes and insurance costs per year. Depending on the land you invest in it can be profitable but compared to stock market returns it’s a fraction of the return to capital invested. Let’s say you buy a mile section at $1,900,000.00 or $3000 an acre farm rent if it’s rentable $30,000 taxes/insurance $10,000 profit $20,000 a year. Same $1,900,000.00 in stock market times conservative 8% rate of return $150,000 a year. Now the ground will generally appreciate in value but is it going to appreciate $130,000 per year. Let’s do a single family home next. Purchase home $100,000.00 x 1% = $1000 monthly rent
$12,000 a year in rent
$1200 in taxes/insurance
$1200 in upkeep.
Net $9000 a year much closer to a stock market type return but there is management involved that can be a huge headache at times. Single family homes do also appreciate in value so you do gain some there also. I will add that I’ve own multi-family units in the past and will never again own one management is a nightmare.

I own all these investments in real life this isn’t an exercise in academics for me. I didn’t dig out my tax returns for actual numbers but you get the idea.

Glad my farm ground isn't where yours is! If I have 640ac of ground, that's $130,000 in rent. But, I'd gladly take $1200 of taxes on a 640.

 

[b116757]

Glad my farm ground isn't where yours is! If I have 640ac of ground, that's $130,000 in rent. But, I'd gladly take $1200 of taxes on a 640.

Taxes on 640 runs me about $10,000

 

[jsasker007]

Do you live in Cali?

 

[b116757]

Kansas

 

[Triple C]

Pretty good chance that 30 years from now, American business, American innovation, and American drive will still be the envy of the world. Administrations come and go. Liberal/conservative congresses come and go. Recessions come and go. American biz been trucking right along through all of em. I grew up in the decade of the 60's when JFK was assassinated, Bobby Kennedy assassination, MLK assassination, Kent state student murders and the turn on and drop out, anti-establishment movement of the late 60's. Remember my parents and grandparents predicting the world was ending. Couldn't get any worse. We still kicking! Been a great run for me over the decades and bet it will be in the decades ahead. Steady contributions month after month over many years and several decades gonna get most any disciplined person in a good spot. News these days is always slanted toward the 10% of extremes on either side when 80% or more of Americans just continue to get up, shut up, suit up and show up. Not really news these days. Just talking heads and opinions spewed over the airways whether mainstream or cable. Go 30 days without turning on CNN or Fox or any news for that matter and you'll prolly think the world is just fine. Own land, real estate and multiple stock market investments. Never tried to pick a bottom or top. Just kept slowly adding to the kitty and plan to continue till I quit kicking.

 

[TreeDaddy]

Pretty good chance that 30 years from now, American business, American innovation, and American drive will still be the envy of the world. Administrations come and go. Liberal/conservative congresses come and go. Recessions come and go. American biz been trucking right along through all of em. I grew up in the decade of the 60's when JFK was assassinated, Bobby Kennedy assassination, MLK assassination, Kent state student murders and the turn on and drop out, anti-establishment movement of the late 60's. Remember my parents and grandparents predicting the world was ending. Couldn't get any worse. We still kicking! Been a great run for me over the decades and bet it will be in the decades ahead. Steady contributions month after month over many years and several decades gonna get most any disciplined person in a good spot. News these days is always slanted toward the 10% of extremes on either side when 80% or more of Americans just continue to get up, shut up, suit up and show up. Not really news these days. Just talking heads and opinions spewed over the airways whether mainstream or cable. Go 30 days without turning on CNN or Fox or any news for that matter and you'll prolly think the world is just fine. Own land, real estate and multiple stock market investments. Never tried to pick a bottom or top. Just kept slowly adding to the kitty and plan to continue till I quit kicking.

As a corollary:

GrandDad predicted the End when Kennedy elected

Dad , the same, when Carter elected

I did the same with Obama!

bill

 

[roymunson]

As a corollary:

GrandDad predicted the End when Kennedy elected

Dad , the same, when Carter elected

I did the same with Obama!

bill

Lets not get into the thought that our grandparents had on our parents music, what our parents thought of ours, and what we think of our kids...

The end is coming, and one of these times, we're gonna be right.

 

[TreeDaddy]

Lets not get into the thought that our grandparents had on our parents music, what our parents thought of ours, and what we think of our kids...

The end is coming, and one of these times, we're gonna be right.

Indeed
My folks considered the Stones to be Satan incarnate

They are gospel singers compared to contemporary rap detritus

bill

 

[westonwhitetail]

We own farm ground a combination of row crop, native hay meadows and pasture ground. Cash rents run 2.5-3 times taxes and insurance costs per year. Depending on the land you invest in it can be profitable but compared to stock market returns it’s a fraction of the return to capital invested. Let’s say you buy a mile section at $1,900,000.00 or $3000 an acre farm rent if it’s rentable $30,000 taxes/insurance $10,000 profit $20,000 a year. Same $1,900,000.00 in stock market times conservative 8% rate of return $150,000 a year. Now the ground will generally appreciate in value but is it going to appreciate $130,000 per year. Let’s do a single family home next. Purchase home $100,000.00 x 1% = $1000 monthly rent
$12,000 a year in rent
$1200 in taxes/insurance
$1200 in upkeep.
Net $9000 a year much closer to a stock market type return but there is management involved that can be a huge headache at times. Single family homes do also appreciate in value so you do gain some there also. I will add that I’ve own multi-family units in the past and will never again own one management is a nightmare.

I own all these investments in real life this isn’t an exercise in academics for me. I didn’t dig out my tax returns for actual numbers but you get the idea.

Thanks for this. Looks like you'd need to do more with the land than just rent it for ag to make it by in retirement.

You wouldn't want to, but you could potentially sell half at the future value and live off that as well. If you sold 320 acres at a future value of 3.2 million, you would likely do just fine.

The thing I hate about stocks is you can't use them your entire life besides looking at an account balance. Land you can use now for recreation at least so I like the idea of using land for a sort of retirement savings better. But maybe the numbers don't add up. The hard part would be to sell part of it at retirement.

 

[S.T.Fanatic]

Just remember the interest that gets paid on land over the course of time. Could end up paying double the price once you take interest into account. Which means you have to sell it at twice the amount you paid for it to break even.

 

[Bszweda]

land / restate gives you the option to use leverage. So if you could find an restate investment that can cover the loan cost it could work out very well for someone. ( though this would include dealing with the hassle of dealing with a renter, government contract, crop sharing, etc..) The thing that bothers me the most with the stock market is how do you deal with a 20 % downturn on a bad year when retired. I also think some stock valuations are out of touch with reality, and will have to correct eventually.