Going all the way back to childhood, I do not remember the last time I felt as calm and relaxed as I do now. The reason is explained in this month’s “Investing Outside of Wall Street – Finally, the rat race is over!” Here is a bit more background that describes why the sense of such a relief.
We lived in Bloomfield Hills, Michigan since 1984 when a job offer brought us to the suburb of Detroit. David and I always believed that this was the house in which we would live the rest of our lives. Then, when we had to have the house rebuilt after the 2008 fire, our property tax tripled. In addition to the high interest rates going toward credit card payments, our savings continued to be depleted. Eventually, for the last few years, David ended up having to get a job just to keep paying the taxes.
On top of the losses incurred due to investment missteps, I knew the situation was not sustainable – especially as we advanced in age. The sale of our beautiful home became imminent. Thankfully, armed with a broker’s license which I had obtained primarily for our own investments, I knew I could make things happen myself without incurring additional, hefty broker fees. In fact, just to make it official, I accepted $1.00 on behalf of the listing company, of which I am the president. We both loved the new house but, perhaps, David a bit more than me. Once he finally came around to my way of thinking, I was ready to move quickly. It was sold at the end of last month for slightly above the asking price.
With the sale, by definition, David and I became financially free once again; that is, our monthly revenues exceed expenses. It feels somewhat like when we were working as employees, both making very good money. The only difference is that, today and into the future, we need not ever work for money.
As it turns out, David loves his work at the Bloomfield Township Public Library. He no longer needs to work but wants to continue – so that he can save the extra money for us to resume traveling.
In terms of investing, I did not come anywhere close to what I had set out to achieve by now. My original intent in late 2004 / early 2005 was to have two dozen, cash-flowing properties so as not to have to be dependent on Social Security and/or pension incomes. Well, as of now, I still am. And I am disappointed with myself.
When I started out on the investment journey, I was not yet eligible for Social Security. My small pension income was nice to have but not crucial. After all, David was still working until 2009. After the June 2008 house fire, coupled with the market crash three months later, however, these entitlement revenues gradually became necessities to help meet our expenses. Obviously, such a turn of event was not what I had planned. Regardless, like millions of others who were affected by the 2008 crash, I had no choice but to adapt and adjust accordingly. Staying afloat became priority number one. My goal to become non-dependent on the entitlement revenues became secondary.
With everything that had happened since I chose to be on an investment journey, I was never able to relax. Worst of all, since December 2010, all leisure travel plans had to be cancelled – except for a couple of annual domestic reunions. Because we both had saved diligently over our careers, I never expected us to have any financial concerns in retirement. It broke my heart to have to take away the one thing David loves to do – travel. I paid hefty dues – both literally and figuratively – to finally get to where I am today.
Now that our finances are under control once again, my number-one priority is to resume travelling with David, who is my confidant and best friend. I am also finally in a mood to get back into playing the piano when we will have settled into our new home – something I know David missed listening to very much ever since I went on an investment journey into the unknown.
So long as my memory stays intact, the investment knowledge I have gained will always be with me. I cherish knowing that, if I so choose, I can resume pursuing my original goal of not having to rely on Social Security and pension incomes. It would be nice if I can still accomplish it by my 75th birthday as I had planned. This time, however, I am not desperate for additional properties unless, of course, the numbers make sense to where the cash flow is positive from day 1 of ownership.
