Posted by Philip on March 13, 2004 at 08:07:14:
Has saved many folks from financial ruin.
I commend you for your actions.
Now, my parents are in a different situation. I think if my mom ever let a credit card payment go, and had to actually pay interest…she would faint dead away!
If you look up self-discipline you will see her picture!
Less so with dad.
Thanks,
Philip
Your expert ideas for retirees - Posted by Philip
Posted by Philip on March 12, 2004 at 15:45:22:
Let me put a situation in context and see what you all think. My retired parents are 66 and 64 years old. They have been retired several years and travel much of the year. They own 40 acres, where their little used home sets; and another house with 5 acres, 1 mile away. On one front acre of their 40 acres I have a home on 1 acre.
They invest with me a little on the few mobile home Lonnie deals I have done.
They need further investments that are not 3% Cds.
They are trying to figure out what is the best thing to do with their home and land. They will sell, but don?t know when they should.
Will rising interest rates, which are sure to come, reduce the number of buyers a year from now?
Will it affect the type of buyer they want? Namely, someone with 30k + equity in an existing home?
They would sell their property whole, partial, develop a few site built homes?whatever.
They are just kicking ideas around and will take action soon if deemed necessary due to the market,?.or sit and wait if that is better.
Their home and 40 acres is worth about 140k in this low cost of living part of Missouri. The property is free and clear and well maintained 10 minutes from town.
The other 5 acres has an older home that is in foreclosure (parents are the bank) and there are different possibilities there as well. They have thought of separating the house off, and selling it to carry the note. The house is worth about 40k.
After separating the house they have thought of drilling another well and putting in a small metal building and a pad to park their 2 RV?s. They have considered land/home packages (maybe 2) with doublewide mobiles.
Should they take the fact that credit will tighten into their factoring?
Or will they not be affected if willing to carry the note?
They do need investments, but not 20 years in length?.
I would help them with any developing and be a partner in some things, and just helping with others?.if they chose that route.
I do NOT want to do anything but suggest ideas to them?it is their property and their money and they earned every penny of it!
Thanks,
Philip
Re: Your expert ideas for retirees - Posted by Cynthia Brewster
Posted by Cynthia Brewster on March 12, 2004 at 16:15:41:
Wow!
Until your parents decide what it is they want, they are like the millions of people at the casinos with a handfull of quarters walking from one machine to another trying to figure which machine will be the big winner. I’m not being cynical. But, they do need to sit down and decide what it is they want to do and more importantly, what excites them. What is a real turn on to them in the investing world. Or, you decide to become fabuously wealthy and take care of them so they can travel and enjoy their golden years,
Cynthia
2 for 2 & some things they agree on - Posted by Philip
Posted by Philip on March 12, 2004 at 18:12:46:
That notion of “deciding” has been posted in both answers.
Some things they agree on:
They will continue to travel until unable to enjoy it.
They will have to have an easier upkeep home, inside town, or near it in 10-15 years.
They need better use of their money.
They hold the note on 5 or so homes and the rest has been headed into 3% cd’s and they dont’ like that!
They have invested tiny amounts with me in mobile homes, with nice short notes. They love that, but I can’t find them fast enough!
I guess I will have to agree, and have also asked them in the past…“what do you want to do?”
Thanks,
Philip
Re: 2 for 2 & some things they agree on - Posted by Cynthia Brewster
Posted by Cynthia Brewster on March 12, 2004 at 19:22:21:
Philip,
This may just be the universe offering you an opportunity to create. You may want to begin to see your parents as the perfect opportunity to teach wih love and to guide and lead them into places they would never dream of going. At some point they will switch roles with you and you will be the leader and they will be the followers-it happens! Think of all the wonderful things ahead for you as you learn these things.
Good luck!
Cynthia
It has already started - Posted by Philip
Posted by Philip on March 12, 2004 at 19:38:43:
That reversal of roles, but in a voluntary way. My parents make good choices, but are getting VERY tired of legwork.
They listen to what I have to say and weigh it against what they already know.(which is more than me)
Sometimes they like it and sometimes they don’t.
I RARELY bring things up…but when I do they have 100 questions.
Like I told another poster they seem reluctant to ask initiate any questions…but more than happy to talk once the ball is rolling.
It might be a hesitance to be the “asker” instead of the “askee” (?)
I certainly have to stay out of the way until they decide more details of WHAT they want to do, then decide how later on…
Thanks,
Philip
I agree about switching roles and teaching… - Posted by Tillman (DE)
Posted by Tillman (DE) on March 12, 2004 at 19:36:46:
your parents. That happened to me and my mom a couple of years ago. My mother was always horrible with her finances, and her husband was no better.
I learned about financial responsibility with Larry Burkette and Dave Ramsey, and since then eliminated all of my debt except my mortgage - which is why I don’t use credit cards anymore.
Well, my mother and step-father had some issues with debt and using those check cashing places to fill the gap when they couldn’t pay their bills - I ended up bailing them out once or twice.
The third time I refused unless they read a book I gave them on financial responsibilty and debt free living, and committed to a plan to eliminate their debt and control their spending. They did, in two years, paid off ALL of their debt and saved $11,000, with one of them on disability and the other one earning $7.50/hr. It’s a good thing when you can lead your parents or anyone into a better life!