Right now we’re going to talk about planning for your upcoming retirement.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking about the quandary that people come to. They almost seem surprised, I don’t want to be judgemental, but surprised that their income’s going to stop when they retire, and haven’t made a really substantial plan on how that’s going to look for sustaining the lifetime that could go well into the 90s.
Bob Nelson: And the first thing they’re going to ask about is how much social security do I get? You got to be out there somewhere around 68 years of age, somewhere or so. Now, you can actually kick in, I guess, to social security a couple of years earlier than that, but it restricts the amount of income that you could earn, if you do accept that option. If you delay and take the later option, as the rules are written today, there’s no restriction on the amount of income you could receive.
Marcia Edwards: And I think what is pivotal, what you just said is, as the rules are today.
Bob Nelson: As the rules are … oh boy.
Marcia Edwards: Those rules can change and then so much is impacted in your life. Let’s take control that with a little bit of foresight.
Bob Nelson: Yes, and if you don’t do that, if you fail to plan, you’re planning to fail, and I say that in the most sincere manner. What’s the game plan? Well, first of all, if you’re in a vocational pursuit where you’re paid by the hour for the amount of time that you spend on the job as an employee, that’s fine. But as that hourly opportunity diminishes in a recession, or by whatever, your lack of talent to be able to stay current with what’s required, all of a sudden your hours are cut. And as your hours are cut, your income is cut. You need to be in a position where you can generate passive investment income to supplement those hourly wage opportunities that you have.
Marcia Edwards: So you’re seeking control. You’re seeking control and influence within your reach, and that is pretty much the fundamental statement, I think. That’s what creates urgency in my mind, is I want to grasp and hold onto control of my future and my family’s future by doing something today in a proactive way to create a passive income that cannot be taken away.
Bob Nelson: Exactly. And you might say, “Well, gosh, if I bought a rental house, it’s going to take me 25 or 30 years to pay the thing off.” Well, that may be true. There are other opportunities, though, where you generate additional equity as value grows from the property, and you can go into two or three other properties later on. But if you don’t start planning, you’re planning to fail.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.