Interesting, I had never thought of that. We already sold one condo in July, so that option is probably past, but we are thinking of getting rid of another one soon. Just don’t want to keep dealing with this particular condo, but if it costs too much to get rid of it, we will hang onto it.
1031 tax exchanges can be a great tool if used carefully. It helps to have an attorney experienced in 1031s help make sure all is done correctly.
The exchange process is a bit cumbersome, but if deferring gains is important, it’s worth looking into.
https://www.realized1031.com/blog/rolling-from-property-to-reit
Great information. Thank you for those links, @HImom an @notrichenough. I would have never thought of a 1031 exchange, as I thought we’d have to exchange it for more rental property, and we are so done with that. We could definitely get into a REIT, though.
If you could buy a broadly-based low cost REIT mutual fund, that would help reduce risk as well and be easy to manage.
I’ve never tried doing a 1031 exchange from a property to an REIT, only one rental to another.
We gave a good property manager so don’t do hands-on with the property.
@notrichenough, that is a really interesting idea. We have two properties with a total capital gain of maybe $750K. We won’t sell one for at least a couple of years as a new subway stop is coming in two blocks away. But, we are a little tired of being landlords. I guess the question is what kind of REIT will do well in the next paradigm. I’m suspect that lower leverage will be a good idea as asset values are likely to drop. Office buildings probably not a good idea.
Came across this article. Scary! ? Make sure to scroll all the way down to the 14 States That Don’t Tax Your Pension. 
Wrong thread. Oops.
@BunsenBurner, looks appropriate. Which thread did you want to post it in?
My daughter and son both think we should move to Jackson WY. She drove through there earlier this month on the way to SF. He and his partner are running a retreat for their startup there (the partner lived there or has a house there or something) for the second year (although the team is bigger a year later).
We were in Jackson just a couple of weeks ago. It’s beautiful, but it’s expensive. Any outside of Jackson there’s not much, for a long time. The national park is spectacular, but I’d feel isolated there pretty quickly. PLUS, housing is very expensive. (I was surprised to see the prices when we passed a real estate place and looked in the window).
As we get older, being near a large airport and good medical care is increasingly important to us. Far from both us problematic for me, as I have some chronic medical issues and I suspect H may develop a few as well.
Being near an airport is handy for visiting others or them visiting us.
Good points @HImom. Access to high quality health care becomes increasingly important. We have that in spades in the Boston area and I am still somewhat connected to folks who can a) recommend; and b) get us into the best specialists in an area. In the Bay Area, we have no connections, but high quality care exists. And, as long as I am working, major airport access is very important. Just got back from London and have trips to Stockholm, London, Sao Paulo and NY coming up (I’ll train to NY, I think).
I suspect Jackson is a place our kids know we would love and they would come to visit for vacations. Plus, our friends there took ShawD to an art gallery showing work by an artist similar to ShawWife at high prices so it seems that there is a market for her kind of work. Of course, she doesn’t need to live there to show there…
@shawbridge - Maybe next summer you can splurge for a rental week or two in Jackson… might be fun time with the kids.
Question about Jackson, Wyoming. I have been there and while beautiful the average price per square foot for home is $800 or $1,600,000 for a 2,000sqft property. Is this a retirement area for only the wealthy?
Would you work 2 extra years to get $4000 extra a year for the rest of your life? (Along with the $$ made over the 2 years, etc?)
Assume that you have saved fairly well for retirement.
@1214mom - I guess for me it would depend on if I was still enjoying the job. If you look at it over 25 years that is an extra $100K. I think it really depends on the situation.
@1214mom your question is exactly what we are asking. IF DH works four more years, his SS will be $12,000 a year MORE than it is now…plus he will continue to sock away money in his retirement accounts and draw a salary.
BUT the trade off is…he will have to wait four years to retire and collect SS…which means he (we) also have to delay any retirement plans we might want to make.
It’s a toss up.
I saw my retirement planner two years before I retired. He politely told me I needed to work two more years, because it increased my pension by a lot over $1000 a month. He was right…so I did! But I also loved my work, and actually have continued to do it for long term leave positions.
Nope. That amount wouldn’t make or break my lifestyle.
Would you also get almost that $4000/year extra if you stopped work… but still deferred SS for 2 years?