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personally my retirement strategy is a triplex (multi-family home with 3 units). for better or for worse multi-family owner occupied housing in the united state

personally my retirement strategy is a triplex (multi-family home with 3 units). for better or for worse multi-family owner occupied housing in the united states is too lucrative. especially if you bought before covid. the problem with equities or bonds alone is that even with a good allocation it's hard to protect yourself completely from retiring into a recession. if the usa allowed multi families by right this would be something that could help lower housing costs and help retirees. regarding the article, it's crazy how people making 6 figures don't properly save for retirement. Americans truly have a spending problem. based on the professions of some of the people in the article, I would expect them to have more money but it's hard to say without knowing when and how much they made.

voisin 4y ago
The beauty of real estate is that you can live off the income rather than having to draw down the principal like in a traditional stock/bond portfolio which doesn’t have a very strong current yield. But, as you age you need a manager and that takes a bite out of it.
88913527 4y ago
The problem with real estate is your retirement plan for a triplex may not materialize if you own in Detroit, and it's the 1970s and car manufacturing won't ever decline. It's putting a lot of eggs in one basket. You have no way of knowing if the location will fall out of favor. At least with the stock market, there are many other actors who have a shared interest in its success.
- endisneigh 4y ago
  Though you're not wrong, most places did not see such a collapse such as Detroit. In the end though, you're hedging greatly with the fact that it's a multi-family. So even if it did fall out of favor, you're paying a fraction of what you would otherwise due to the rental income gained from the other units. Most importantly, you were going to spend money to live somewhere anyway.
stevesimmons 4y ago
> the problem with equities or bonds alone is that even with a good allocation it's hard to protect yourself completely from retiring into a recession I've never understood this logic... Even if I retire in a recession, I only draw down say 5% of my equities each year. Recession lasts say two years. So only 10% of my holding is liquidated when valuations are low.
- endisneigh 4y ago
  a good portfolio will be liquidated from equities to bonds as you get older. if there is a recession while this process is happening you both reduce your holdings and are at risk. not to mention that there's no guarantee that it will ever go back to what it was.

voisin 4y ago

The beauty of real estate is that you can live off the income rather than having to draw down the principal like in a traditional stock/bond portfolio which doesn’t have a very strong current yield. But, as you age you need a manager and that takes a bite out of it.

88913527 4y ago

The problem with real estate is your retirement plan for a triplex may not materialize if you own in Detroit, and it's the 1970s and car manufacturing won't ever decline. It's putting a lot of eggs in one basket. You have no way of knowing if the location will fall out of favor. At least with the stock market, there are many other actors who have a shared interest in its success.

endisneigh 4y ago
Though you're not wrong, most places did not see such a collapse such as Detroit. In the end though, you're hedging greatly with the fact that it's a multi-family. So even if it did fall out of favor, you're paying a fraction of what you would otherwise due to the rental income gained from the other units. Most importantly, you were going to spend money to live somewhere anyway.

stevesimmons 4y ago

> the problem with equities or bonds alone is that even with a good allocation it's hard to protect yourself completely from retiring into a recession I've never understood this logic... Even if I retire in a recession, I only draw down say 5% of my equities each year. Recession lasts say two years. So only 10% of my holding is liquidated when valuations are low.

endisneigh 4y ago
a good portfolio will be liquidated from equities to bonds as you get older. if there is a recession while this process is happening you both reduce your holdings and are at risk. not to mention that there's no guarantee that it will ever go back to what it was.