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Strategies & Market Trends : Retirement - Now what? -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (101)	4/6/2005 9:24:06 AM
From: Drygulch Dan	Respond to of 288

Just focusing on the RE asset class, I've divided this into three categories, these being real estate held for enjoyment, appreciation (growth), or income. I am just assuming all real estate is held for capital preservation as well. Enjoyment meaning we happen to live in it. Real estate held strictly for its appreciation potential happens for a variety of reasons including situations where helping out other family members was/is a priority. Income property was acquired for that purpose or evolved into that purpose. Of the income property we have gross rents multipliers ranging from 8.3 to 266.7. Obviously the 266.7 property is a troubled situation. It happens to involve partners and is currently a subject of discussion among the partnership. In total, this income property is generating just a shade less than 50% of our desired annual income stream. The shortfall will have to be made up by other asset class income production as well as capital consumption. On a percentage basis, we have: Enjoyment - 38% Appreciation - 32% Income - 30%

To: OldAIMGuy who wrote (101)	5/10/2005 4:50:35 PM
From: Drygulch Dan	Read Replies (2) \| Respond to of 288

I find it interesting that your approach says, "...that will generate that level of income without invading the principle." While this is a most conservative and therefore appropriate attitude for a retiree to adopt, in my case I have already given up on achieving that ideal. I accept that some capital depletion will occur over time. Else I would have to go back to work for a number of years, something I do not want to consider at this time. So with this reality, I want to manage that capital depletion such that I don't deplete it at an unsustainable rate. I hope I can do this. My thought is to sell off properties in a ranked order such that I preserve the most personally valuable ones till last. The problem with this approach comes from death taxes. Do you have any ideas for dealing with this ultimate reality given the approach I am taking? ie Is there a free lunch at the end of life? At least for the heirs/beneficiaries.