There was an article on Yahoo Finance yesterday about monetizing hobbies as part of a retirement plan. This is something I have been writing about for a long time (this oldest post I was able to find was just from February 2007) and so it is nice to see it covered elsewhere.
The article profiled a photographer, a guy who makes mobiles and the writer of the article is himself retired doing a little writing. None of these people make a lot of money but they enjoy what they do and something that could take 10% off of the burden of your portfolio and gives you purpose is absolutely a positive.
And I think 10% could be a low number with a little of planning and leg work done ahead of time. I have made many references to my 77 year old neighbor who charges $60 per hour for backhoe work and he can have all the work he wants. I have another neighbor (whom I've mentioned) who has plow on the front of a snow cat.
Are you a car buff? What about house calls for cars? Are you handy? How about working as a Mr. Fixit? What about something related to your job or, if you don't like your work that much maybe something related to some aspect of your job you do like?
Are you a sports fan? We have had two minor league teams come to our town in the last couple of years and there may be another one and there is work available there too. One family member in a bigger city was offered part time work for a major league baseball team, there is work available in these sorts of places.
None of it pays much, or at least should not be expected to but so what? The key is that this is something you one way or another enjoy being around and again if you need your portfolio to generate $60,000 in 2008 dollars (which implies a pretty big portfolio) do you think $6000 might be realistic? If it is realistic then you can see how it would be beneficial to reduce the draw on your portfolio.
There are infinite possibilities for this.
Wikinvest Wire
9 comments:
1} Is Larry and Roger related?
2} Larry is correct it does appear Heebner {CGM Focus}has lost all his 2008 profits in 2 weeks.
3} Do either of you think he will regroup and go in other areas or will he just stay in energy, steel, mining, etc??
Heebner is going into mobiles. Seriously, though, I wonder what affect the retiring boomer population might have on the cost of business? One has to imagine that there is and will be, a great deal of (relatively) low-cost, high-skilled, services available.
Roy, slightly bigger macro the effect of the transitioning, i think a better word, of the boomers will have all sorts of consequences that will create some strains, some positives but overall an adjustment to a lot of things. the country will adapt but i wonder if it will take a long time.
Roger,
Given this statement, $60,000 in 2008 dollars (which implies a pretty big portfolio)
What are your thoughts for a safe withdrawal rate of a well diversified portfolio? Bernstein says 2% is bulletproof for a portfolio to last in perpetuity.
I have written about that topic many times and while I drew some reasonable criticism my take is whatever you got, 4%.
So if your portfolio goes down by 10% one year then it would be 4% of the lower number.
perhaps a more practical, real world application would be to take 1% of the portfolio value every quarter.
So if this quarter you have exactly $500,000 then you would take $5000. if next quarter you have $510,000 you could take $5100 and so on.
Thanks Roger.
I really enjoy your blog and insights. I have posted comments/questions several times in the past anonymously since as a buy and hold indexer I don't think I can contribute much of substance here. However, I value your opinion and the professional way you run your blog. Put me down as a regular daily reader.
Thanks again from a fellow Arizonan in Casa Grande.
Anon 1:30pm
Hi Roger: As you have written , REITS are highly correlated with financial stocks. While this has been good in the last week, it is obviously not optimal for those of us interested in a portfolio of loosely correlated assets. While I read you are investigating other sources of real estate, I am wondering if you keep a REIT allocation in client accounts, and if so, what are your current vehicles of choice (apologies if you have already written about this)...... Many thanks and keep up the great work!
no reits for now. i'm sure i'll be back in at some point
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