Retirement Income - Making it Last

[LuxLiving]

Lake of the Ozarks
http://www.businesslakemo.com/living_working.php

[kimiko]

I've seen a new report about how social security and medicare are going to run out of money in 2045, then a month later, they updated that it's expected to be gone in 2044. So I'm not expecting a dime from it and why I'm here, trying to save.

[JBinKC]

Sorry for the late reply! I just got back from Watertown, South Dakota That sure is a nice place to live if you are an outdoorsman. I know that is another low cost city to live in and a very nice place with clean glacial lakes.

Lake of the Ozarks is basically a 92 mile commercial side of dam complex controlled the utility giant Ameren. The western side of the complex is owned by the US corp. of engineers and composes of Truman Lake with virtually no commercial development.

In general, the property values increase the farther east you go however, comparably to other lake property in other states the prices are extremely reasonable even on the expensive side. I live at the 89 MM near Warsaw, MO on a steep cliff where I managed to engineer the ability for direct lake access with my 50 ft of frontage for a very reasonable cost. I bought my 1100 sq ft vacation home for 38K in 2000 and completed maybe 28K in total improvements since then. I estimate the place is worth around 125K.

Property taxes remain low and hopefully I can keep the assessors at bay. My Kansas City residence had a steep 110% property tax increase and has been a very big factor in my final decision of making the change. I now have a setup where I can easily catch fish at will a small garden and can heat my house with free wood.

I am not too worried about money because I have been frugal all of my life and stayed away from potential disasters to wealth accumulation like health problems and divorce. I also had success well with my Roth IRA since its inception in 1986 (however, I must admit my net worth has declined about 1/3rd since May).

As for the comments about property taxes in many states they are way too high. My father pays about 30K per annum alone in property taxes in the tax hell hole of Wisconsin.

My neighbor has their place for sale for 59K and I had interested buyers of that property approach me for a easement rights however, little do they know I know what the value of the easement is very close to the same value as the house being sold.

[rob62521]

Our local PBS station broadcast a Frontline report about 401K's and how so many businesses are doing away with traditional pension plans and offering this great 401K plan. The report compared two men who worked at the same company -- one was an MBA who could manage the 401K and made money and is doing well in retirement. The other guy, the average worker, retired at 62 and because he didn't know how to manage his 401K, wound up losing over $30K that he put in to it. His wife still works and now at 68, he's selling his house and moving to another state for a full-time job. The broadcast basically said that 401K's weren't to take the place of pensions, but to supplement them as well as Social Security. However, many businesses are touting them as a replacement of pensions because they are cheaper for THEIR bottom line.