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My background

April 6th, 2014 at 07:16 am

After reading comments on my last blog posting I realized how disorganized my money reflections are. Especially to the new members that were not privy to the posts I submitted when I was called Gamecock.

So to help everyone, including myself, I'm going to try and outline my financial standing.

I received an inheritance 7 yrs ago that, if treated correctly, could support me for...maybe my lifetime? As inflation rises it will cover less and less expenses. I'm not an economist, or schooled in money management so I'm still treating the money and my future with uncertainty.

It's not enough to draw on directly and live off for the next 30 years. But if it is invested correctly, it could produce interest that will enable me to live- or almost live comfortably.

So I invested about 20% in the stock market for a retirement account. My financial adviser tells me that if I allow it to grow in the stock market I should have enough to retire when it is time to retire.

The rest has kind of gone into real estate. I say "kind of" because I made two big mistakes which I have blogged about. I invested in a great real estate deal but gave the property to a family member for my wholesale costs. Rather than being paid in one lump sum as expected to allow me to re-invest elsewhere, the payments have been pieced together over the last 2 years and the small & large payments that have gotten...spent. On what I'm not sure. I know husband got a truck. And that truck got about $15k in repairs. And then there were other misc purchases...sigh. I hate that everything played out as it did.

The second mistake was taking the remaining liquid money and trying to start a "cant fail business" with a good friend. There were lots of reasons I tried it and the result is it was a BIG HUGE F**ing FAIL.

But luckily it was not all foolishly spent. We got 2 duplex's (1 has a mortgage), and our primary residence without a mortgage. These properties are generating income for our day to day lives. So I am trying to live off the interest of this inheritance. The principal amount is in these properties- but my day to day income comes from the rent generated.

After recovering from the failed business I told husband we need to stick with what we are good at. Real Estate.

So we have some remaining money left and it has been earmarked for 1 last property purchase. I still have money owed to me for the two big financial mistakes made- but you cant invest what you don't have. So I cant use that money right now.

So that's why I blog about my monthly expenses being tight, and my worries about day to day finances.

Along the way of this journey- my husband became disabled and has not worked in almost 3 years. And we added a baby. So the inheritance now needs to cover 3 people.

I have learned that if I have liquid money accessible then I spend it. So I'm trying to get it out of reach. Trying to tie it up in investments. My husband has taken much longer to the mindset of preserving it than I would like. He has a much "risk taker' mindset than me. Both big financial mistakes were his ideas. But our biggest money maker duplex was his idea as well. And he persuaded me to buy what is now our primary residence. So he's at about a 50% success rate right now.

And any financial decision is both of ours to bear the responsibility (even if it was his dumb decision in the first place- it was me who controls the bank accounts.) So we share the results of our finances.

So yeah- thats my situation. And this is my journey. Will I wind up penniless in 10 years? Maybe. Especially if something catastrophic happens to real estate. But right now today we are comfortable. I'm just trying not to have to get a full time job right now. But who knows what will happen in the future.

6 Responses to “My background”

  1. creditcardfree Says:

    I think it is good you brought this up again, to refresh some of our memories. I was pretty sure the inheritance was where you were getting the money for your future rental.

    I think you are wise to stick to what you know and can make work. I would always trust your gut. I would be very careful trusting your husband to make good decisions with YOUR inheritance. It would be very upsetting to realize in the future that he influenced you to spend your money in the wrong way and you no longer have it. I think I only say this from your posts were you are in disagreement on how to spend money. Just be careful! I want you to have that money working for you. Smile

  2. TashaC. Says:

    Unfortunately you have to make mistakes to learn lessons. I'm hoping he and I have learned enough lessons. I hope there are no more in our future...ugh. we will see.

  3. creditcardfree Says:

    I hope so, too, Tasha! Always rooting for you. Smile

  4. Ima saver Says:

    Me too tasha, you are young and you can catch up! I am so glad that I invested in mutual funds at a fairly young age.

  5. ceejay74 Says:

    I think you can recover! Just please check what the total cost of your invested accounts are. I learned in the past year that even 2% costs can eat away 60% of potential future growth, so if it's expensive, you may want to switch to low cost index mutual funds at Vanguard (their fees are about a tenth of most 401ks and actively managed funds).

  6. Shiela Says:

    Oh wow, I didn't realised you are back Gamecock. I've always wondered what happened to you. I didn't realised it was you at all. I was away (not blogging for months) didn't realised you came back.

    I agree with Ima that you are still very young and can recover from this in no time. It's best to learn this type of lessons while you are young and have time to recover.

    Welcome back and congrats with the new baby.

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