What's the number?

Are you valuing that pension at half of that 2 million? I know you are in Seattle but 2 million, your pension, and social security you are 12-15k a month depending on 3-4% withdrawal rates, so pretty much in perpetuity with virtually zero. That's a lot of cheddar with a paid off house.

I'm warming up to this whole airbnb thing as a great way to have a couple different places in retirement for pretty minimal effort. Summer and a winter place sounds nice. Wifey likes Maine summers. The airbnb side looks like it cash flows, even with another loan.

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Originally Posted by AdironRider

Are you valuing that pension at half of that 2 million? I know you are in Seattle but 2 million, your pension, and social security you are 12-15k a month depending on 3-4% withdrawal rates, so pretty much in perpetuity with virtually zero. That's a lot of cheddar with a paid off house.

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No, I estimate my 401k will be in that range by then, depending on market performance of course. I do have the option to take the pension as a lump sum and that would be in the $1 million range.

It seems like a lot of $ but I also plan to have many more years of living when I'm 55!

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Originally Posted by AdironRider

I'm warming up to this whole airbnb thing as a great way to have a couple different places in retirement for pretty minimal effort. Summer and a winter place sounds nice. Wifey likes Maine summers. The airbnb side looks like it cash flows, even with another loan.

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You may already know this and it may not apply where you're looking, but lots of people who viewed the airbnb thing as guaranteed extra income are now getting "screwed" as municipalities pass strict laws limiting airbnb rentals. Would suck to sink a bunch of money into a place counting on that income and then not get it because of local regulations.

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Originally Posted by The AD

No, I estimate my 401k will be in that range by then, depending on market performance of course. I do have the option to take the pension as a lump sum and that would be in the $1 million range.

It seems like a lot of $ but I also plan to have many more years of living when I'm 55!

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Yeah 55 means you need more, but that is still 9-12k before SS hits. That is double the household income still, and that's if you are single. Could be in a worse spot, but hey no one complains about having to much money. 2 mill in a 401k at 55 is pretty awesome discipline on your end.

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Originally Posted by Danno

You may already know this and it may not apply where you're looking, but lots of people who viewed the airbnb thing as guaranteed extra income are now getting "screwed" as municipalities pass strict laws limiting airbnb rentals. Would suck to sink a bunch of money into a place counting on that income and then not get it because of local regulations.

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For sure. I also don't see it as guaranteed income, but do feel despite nimby's trying to flex, AirBNB has reached the tipping point of mass consumption where you are never going to get rid of it. Kinda like Uber or in another sense any recreational drug really.

Also if it is anything like here in Jackson, those "regulations" are a joke and haven't stopped a single STR as far as I can tell. Better to beg for forgiveness than ask for permission kinda thing. The towns ultimately just want their cut of taxes.

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Originally Posted by AdironRider

Also if it is anything like here in Jackson, those "regulations" are a joke and haven't stopped a single STR as far as I can tell. Better to beg for forgiveness than ask for permission kinda thing. The towns ultimately just want their cut of taxes.

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They police it here for sure. Have some friends who do a rental of their downstairs bedroom, and they got contacted by the city to confirm that they were abiding by the regs (part of which is exactly as you say, confirming that they had the license and were paying taxes, but there was more to it).

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Originally Posted by AdironRider

2 mill in a 401k at 55 is pretty awesome discipline on your end.

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Of course I'm not anywhere near there yet, so that's still the big unknown.

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Originally Posted by The AD

And--at least for now--my company offers retiree medical

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As a Medicare supplement they aren't paying much for it.

An Airbnb investment for retirement income would be a poor choice. Illiquid, duration risk, high transaction costs plus the justifiable regulations of illegal hotels and zoning. The only reason it might be good is it lets you use leverage which also has its own risk.

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Originally Posted by 4matic

An Airbnb investment for retirement income would be a poor choice. Illiquid, duration risk, high transaction costs plus the justifiable regulations of illegal hotels and zoning. The only reason it might be good is it lets you use leverage which also has its own risk.

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really? It's just basically a real estate investment, guests pay for most/more/all of mortgage, right? If that goes sour, get yearly tenants. The sell before you need the cash for retirement if you need the lump sum, or keep it if mortgage is paid and you can use it as monthly income.

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Originally Posted by 4matic

As a Medicare supplement they aren't paying much for it.

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I'm not talking about a Medicare supplement, I'm talking about insurance coverage from retirement until age 65.

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Originally Posted by The AD

I'm not talking about a Medicare supplement, I'm talking about insurance coverage from retirement until age 65.

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That's awesome! As a former fed i can restart my health at 65 and they pay 73% of the premium, i'll have to run the numbers when I get there to see if it makes sense or not...

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Originally Posted by muted

really? It's just basically a real estate investment, guests pay for most/more/all of mortgage, right? If that goes sour, get yearly tenants. The sell before you need the cash for retirement if you need the lump sum, or keep it if mortgage is paid and you can use it as monthly income.

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Yeah, I meant that it is a poor investment for someone already in or close to retirement. As an ongoing business pre-retirement it might be ok.

I don't see how it sucks if you want a second house to cover its expenses.

You aren't going to get rich off of it, which seems to be your frame of mind.

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Originally Posted by The AD

Of course I'm not anywhere near there yet, so that's still the big unknown.

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Just to clarify, are you married with dependent(s) or single, and is this yours, or yours+wife combined?

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Originally Posted by Marshall Tucker

Just to clarify, are you married with dependent(s) or single, and is this yours, or yours+wife combined?

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Married, no kids. That's mine. My wife has a lot less socked away, but she's got some.

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Originally Posted by AdironRider

I don't see how it sucks if you want a second house to cover its expenses.

You aren't going to get rich off of it, which seems to be your frame of mind.

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You gotta do some work on regular basis like Washing sheets and cleaning the place up

As opposed to just rent ing it out long term which is zero work and steady income and probably less hassle from the town

No one I know with one does this. They take a 75-150 dollar cleaning fee and then pay a housekeeper 2/3 of it to clean up the joint and pocket the rest.

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Originally Posted by AdironRider

I'm warming up to this whole airbnb thing as a great way to have a couple different places in retirement for pretty minimal effort. Summer and a winter place sounds nice. Wifey likes Maine summers. The airbnb side looks like it cash flows, even with another loan.

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We rented a house in Alta 2 years ago that is now only available for renting a month at a time now. Seems like you can get screwed pretty quick with changing regulations.

SLT just voted a ban in. Bay Area tech people have been buying up working class neighborhood homes and airbn-ing them for years. Waiting for prices to drop so I can buy my retirement home.

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Originally Posted by Marshall Tucker

Just to clarify, are you married with dependent(s) or single, and is this yours, or yours+wife combined?

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I'm a CPA (in industry large corporate tax) and get into it a bit more than the average person. I did this massive thing I referred to as the 1998 plan in which I tried to model how I thought it would go financially starting with that year through death. As utterly foreign as it may sound to many here, the point was to see how much, if anything, I would leave for my kids one day.

I'm about $100k or so ahead of forecasted savings for retirement, but it's been interesting ride. My savings rate has been roughly double what I thought it would be, and what the investments earned has been about 40% of what I thought they would be (in those days we still beleived in average annual 12% return / ibotson & whoever). I'm about 50k ahead on annual income. I've been as much as 40% behind and as much as 25-ish percent ahead (gross investment balance). if I stay on track I should be able to leave each of them the equivelent of a pretty good sized house. I say "if" because I'm in my mid-50s and the company I work for is getting bought out and I'm probly gonna get synergized, though I don't know anything yet.

Needless to say, kids can change things a lot; though I already new in 1998 what they were.

But by any measure, if you've saved a mil arleady that's pretty darn good. Very few people do.

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Originally Posted by Marshall Tucker

Needless to say, kids can change things a lot; though I already new in 1998 what they were.

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You knew what kids were way back in 1998? :)

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Originally Posted by 4matic

An Airbnb investment for retirement income would be a poor choice. Illiquid, duration risk, high transaction costs plus the justifiable regulations of illegal hotels and zoning. The only reason it might be good is it lets you use leverage which also has its own risk.

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Too many numbers running your life. I'm here to tell you that it's a good retirement investment if you imagine yourself skiing after you work. Maybe you won't make money, maybe it will be a negative on the spread sheet, and, doesn't make sense for even a month s year while you're working vs, haha, an AirB&B, but, when you pass through the other side, there's your pretty much paid for bed. Beds are expensive in my life. Passes are cheap. And, like I said, most resorts are dying for a responsible, educated, damn good looking (heh) mature employee who shows up on time and isn't hungover as their public interface. Weekends, easy job, free pass, gas money. Every little bit helps. Sure makes everyday skiing cheap. Pick a place with a nice summer, and you're set. Good investment.

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Originally Posted by The AD

You knew what kids were way back in 1998? :)

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at the time, and what prompted it, was that my wife was pregnant with our twins, to add to the one we already had. I had asked for two, got three, and new very well the cost of each. Interestingly, the doctor at the time said that w/o inusrance, the average cost of delivering one was 10k. the average cost associated with twins was 30k, and the average cost associated with triplets was 120k.

"humans were not deisgned for litters"

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Originally Posted by Benny Profane

Too many numbers running your life. I'm here to tell you that it's a good retirement investment if you imagine yourself skiing after you work. Maybe you won't make money, maybe it will be a negative on the spread sheet, and, doesn't make sense for even a month s year while you're working vs, haha, an AirB&B, but, when you pass through the other side, there's your pretty much paid for bed. Beds are expensive in my life. Passes are cheap. And, like I said, most resorts are dying for a responsible, educated, damn good looking (heh) mature employee who shows up on time and isn't hungover as their public interface. Weekends, easy job, free pass, gas money. Every little bit helps. Sure makes everyday skiing cheap. Pick a place with a nice summer, and you're set. Good investment.

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This is pretty much my take on it less the work at the mountain part. I'd be pretty stoked to ski Monday - Friday then rent the place on weekends and let them pay the freight and deal with the crowds. I'll spring the g for a pass vs working in retirement.

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Originally Posted by AdironRider

This is pretty much my take on it less the work at the mountain part. I'd be pretty stoked to ski Monday - Friday then rent the place on weekends and let them pay the freight and deal with the crowds. I'll spring the g for a pass vs working in retirement.

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It's not really for the money. It's for interacting with humans. Social life is scant after work. This gets you out there. Gets you into a local employee scene, too. My friend's wife works with some stoners in the ticket office. She doesn't need the money. Fun people.

Saturday sucks for skiing outside of heavy powder days, anyway. I would get high on edibles and smile and goof the gapers.