Mailbag: Should I Sell my Rental Property for More Liquidity?

Today’s Prep:

Time for some questions from the mailbag! Are you making wise financial decisions when it comes to generating retirement income? Hear what Eric has to say on today’s show.

Equipping Points:

On today’s episode of the podcast, Eric answers three questions from the mailbag all related to income in retirement. Do you know how your monthly income will be covered in retirement?

Ray in Altoona owns four rental properties. All of them are paid off and currently being rented, which makes it a great monthly income. That said, he does not have a lot of liquid assets. Should he sell one or more of these properties to invest that money in something more liquid? Eric says to look at diversifying some of your investments. Right now, the real estate market is particularly strong, but we don’t know what the market is going to do. What kind of liquidity do you need?

Lisa in Ames retired at the end of 2021 and planned to start Social Security in a few months when she turns 65. Since then, she’s picked up a handful of consulting gigs and might not need Social Security soon. Should she defer it? Eric talks about the income limits when claiming Social Security to keep in mind. Depending on how much the consulting work brings in, it might be worth waiting on Social Security.

Roger in Marshalltown has determined that they need $12k a month to live the way they’d like to in retirement. Pensions and Social Security benefits will get them about $8k, so how can they generate the other $4k per month from their investments? Eric explains the four percent rule and how to do the math to determine how much you need. What kind of probability of success do you want? Having a plan and knowing your budget is key.

Listen to the entire episode or skip ahead using the timestamps below.

0:47 – Mailbag: Should I sell my rental property for more liquidity?

4:11 – Mailbag: Should I defer my Social Security until later?

6:44 – Mailbag: How much do I need to save to support my lifestyle in retirement?


Today’s Takeaway:

What kind of probability of success do you want? Do you want a 50% probability, do you want a 75%, a 90%? Or maybe you want 99% probability like most people do.”

-Eric Peterson

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment