The Unpredictability of Investing

It’s easy to judge an investment in hindsight. What’s hard to do is to predict what will happen with an investment when you purchase it. If it’s stock, who knows how the company will perform over the long run? Will it’s products or services remain relevant? Will ownership continue to innovate? If you have invested in property (i.e. land or a building), will the improvements you make upon it work out? If you plan on renting it out, the rental market in the area remain strong or end up weak? These are unpredictable things that create risk with every investment. Continue reading The Unpredictability of Investing

“Rightsizing” Retirement

Do you see yourself staying in your current house in retirement? It’s not uncommon for retirees to seek to downsize during retirement. Reasons for doing so often focus on cutting costs, reducing maintenance work, and relocation a different locale or region. Furthermore, it can be tempting to use the profit from a home sale–especially if you live in a seller’s market–to pay down debts or add a boost to your retirement savings. For example, for an empty nester couple with a 2,500-square-foot house and a mortgage to pay off, the profits from the sale could go a long way towards Continue reading “Rightsizing” Retirement

Being Passive in Retirement

From time to time you may have seen the phrase “passive income” mentioned in the blog as a way to help stretch out or supplement your retirement savings during your twilight years. In case you are unfamiliar, “passive income” is income that is derived from a rental property, limited partnership, or other entity in which the person is not actively involved or working. For many retirees, a rental property can be a consistent source of passive income (but may come with other headaches, such as maintenance costs). For others, investing in a business or being part of a limited partnership Continue reading Being Passive in Retirement