Orchid plant at Kahala Nui, a retirement home in Honolulu, Hawaii.
I was thinking of how we should never depend on a possible inheritance or on charity. I believe in going out and making our own money.
When David and I were both working, we were able to buy and own two condominiums in Honolulu. One we lived in, and the other we rented out for $850 per month. This was back in the 1980s. The resident manager screened applicants for our rental and chose a married military couple as our tenants. Military tenants are ideal, because if they don’t pay their rent, their superiors will sanction them. This couple always appeared at our doorstep on the first of every month to give us a cashier’s check for $850.
In 1991, we sold both condos and purchased our present house a few miles away. I adore this house, because it keeps giving and giving and giving. When David needed a $25,000 full mouth reconstruction, we applied for a home equity loan. When he got demoted and his pay was cut, we applied for a reverse mortgage. In the future, when he retires as an accountant, we will transform our master bedroom into a studio (it already has a separate entrance) and rent it out. This will augment our savings, so that we will never run out of cash. My worst nightmare is that we will out-live our savings.
Hence, we have two plans. Plan A is to maintain the status quo (David employed as an accountant). Plan B is to become landlords (David retired as an accountant). We will live very well, implementing either plan.
I think everyone should have a Plan B, don’t you?