Investment advice

[99GTvert]

I recently got engaged and we are set to be married next year. We are both coming into the marriage with a fair amount in savings. I would guess it is about 90k between us. I have been looking into deferred comp and IRA's through my work and other ways to invest the money and I have a few questions. A lot of the models show an average of 8% gains. Is this optimistic, or is this a reliable figure?

Another option is investing in real estate through rental properties. I figure on keeping roughly 20k of the 90 in a savings account just as emergency money. Then, with the remaining, buy my first property. I am looking in the 60-100k range. It would be for a 3 bedroom, ~1500sq ft, in one of the best school districts in the area, that I should be able to rent out for $1200. My parents have had good luck with this on a few that they have. The plan is to roll the money I profit from one into the next. The ultimate goal is to have around 5 in the next 10 years. Maybe more, depending how things go. That would give me around $3000 a month until the loans get paid off, then it would go up even more. Then, if and when I need the money when I retire, I sell off the properties.

Right now I am leaning towards the rental properties. I am going to get a decent pension when I retire, nothing crazy, but not where I would need a huge amount to supplement. The rentals would fit in with this better I feel because it gives me more money now and will still provide more than enough when I retire. I know neither way is foolproof, but with the housing market the way it is, I feel there would be no better time to get in on the rental market.

What would you guys do?

 

[Outlaw99]

rental properties are great if you can buy them with plenty of equity.

 

[JPD5801]

I would go talk to a professional. But I am a little biased.

This may be hard to believe, but there is a lot of really bad advice online!

 

[2001GTTT]

Acquire what you can in your own name before you get married. You'll thank me later.

 

[99GTvert]

rental properties are great if you can buy them with plenty of equity.

They would be bought with at least 20% down.

 

[99GTvert]

I would go talk to a professional. But I am a little biased.

This may be hard to believe, but there is a lot of really bad advice online!

I will be taking the advice I get for what it is, advice off the internet. I just know that there are more than a few people on here that are fairly successful, and may be able to give me different points of view.

 

[99GTvert]

Also, I work for a fire department, so my schedule is very flexible and awards a fair amount of days off. I can do just about any work that a house would need as well.

 

[2010 Red&white]

Go see a pro and stick to the plan you all agree to ( You , Wife & Pro) . Don't take any advice off the internet.

 

[VenomousDSG]

If you get into anything real-estate, look into REITs.

 

[alex3610]

Also, I work for a fire department, so my schedule is very flexible and awards a fair amount of days off. I can do just about any work that a house would need as well.

I need to work for your department. They pay us in peanuts down here. I can't even remember what the word savings even means. I miss collective bargaining.

Having 90k between you two going into marriage is fantastic though, you are head and shoulders above most. I like the idea of rental properties personally. I'm sure plenty of the guys you are on the job with moonlight in various trades and get help you out with work on your rental property, making it that much better for you.

 

[99GTvert]

I need to work for your department. They pay us in peanuts down here. I can't even remember what the word savings even means. I miss collective bargaining.

Having 90k between you two going into marriage is fantastic though, you are head and shoulders above most. I like the idea of rental properties personally. I'm sure plenty of the guys you are on the job with moonlight in various trades and get help you out with work on your rental property, making it that much better for you.

Yeah we still do pretty good up here, but we are all medics as well.

 

[black4vcobra]

If you do get into rental properties, make sure you can be there to closely monitor them. Renters have a way of failing to pay rent on a timely basis, leaving shit all over the yard, or not taking out the garbage for weeks at a time. Be VERY selective about who you rent to and they have any red flags in the background check, do not rent to them.

 

[99GTvert]

If you do get into rental properties, make sure you can be there to closely monitor them. Renters have a way of failing to pay rent on a timely basis, leaving shit all over the yard, or not taking out the garbage for weeks at a time. Be VERY selective about who you rent to and they have any red flags in the background check, do not rent to them.

They would most likely be within five minutes of my house. Keeping it in a good school district and multiple bedrooms, I am looking for a single parent trying to get their kids in a good school. They seem to be more respectful of the property and still care about their credit. That is the formula my parents have used and it has worked so far for them. Paint and new carpet after each family is pretty much a given, but that is factored into the security deposit/rent. A couple guys I work with have them in worse neighborhoods and some of the dirtbags they get are unbelievable. I know they're out there, but I don't mind putting the money up to get a property in a nicer neighborhood.