Julia Beverly / Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. While Mark Cuban still works today as a 67-year-old and has no plans to retire — once telling CNBC, “I’ll go until I drop” — the former Shark Tank star didn’t always believe in skipping retirement (1). In fact, when he was young, he was dedicated to the FIRE (Financial Independence, Retire Early) movement. Must Read “I read this book, it was called How to Retire at 35. And th ...

Core Insights - The rise of Debt-Service Coverage Ratio (DSCR) loans has allowed small and midsize real estate investors to acquire properties with less scrutiny from lenders, focusing on the property's cash flow rather than the borrower's creditworthiness [1][3][4] - Serious delinquencies on DSCR loans have increased significantly, indicating financial strain among landlords amid a rental market slowdown, although these troubled loans represent a small fraction of the total [2][9] - Despite the challenges, the demand for DSCR loans remains strong, with substantial amounts being secured by landlords, suggesting ongoing interest in real estate investment [14][15] Group 1: DSCR Loans Overview - DSCR loans enable landlords to purchase rental properties by demonstrating that the expected rental income will cover mortgage payments and basic expenses, rather than relying on personal financial history [1][5] - The popularity of DSCR loans surged during the pandemic, with over $44 billion in loans issued in 2022, up from $5.6 billion in 2019, driven by low borrowing rates and rising home prices [7][8] - Institutional investors have increasingly embraced DSCR loans, contributing to the growth of this asset class [8][14] Group 2: Market Dynamics and Challenges - The percentage of DSCR loans in serious delinquency has nearly quadrupled since mid-2022, rising from around 0.5% to just under 2% of securitized loans, signaling potential risks in the market [9][10] - Landlords who refinanced traditional loans into DSCR loans faced higher borrowing rates, which required higher rents to cover payments, leading to over-leveraged positions for some [11][12] - The rental market is experiencing slower growth, with single-family rents increasing by only 1.4% year over year as of August, the lowest in 15 years, which may impact landlords' cash flow [16] Group 3: Future Outlook - The ongoing preference for renting over buying could benefit landlords, but stagnant rent growth poses challenges for maintaining profitability [16][17] - As the market adjusts to higher interest rates and changing economic conditions, the landscape for DSCR loans and real estate investment may continue to evolve, with potential opportunities for first-time buyers as distressed assets become available [16][17]

Core Insights - Retirement planning without a 401(k) is feasible, but strategies may differ from those who have access to such plans [1] Group 1: Alternative Retirement Accounts - Individuals without a 401(k) can still invest in retirement accounts like traditional or Roth IRAs, with annual contributions up to $7,000 ($8,000 for those over 50) [3] - Freelancers or small business owners can utilize SEP IRAs or Solo 401(k) plans for higher contribution limits compared to standard IRAs [3][4] Group 2: Income-Generating Assets - Building income-producing assets is recommended for those not relying on retirement accounts, including real estate, dividend-paying stocks, index funds, and online businesses [4][5] - Real estate is highlighted as a particularly lucrative option for generating cash flow and capital gains, providing control and liquidity [5] Group 3: Healthcare Planning - Planning for healthcare is essential as retirement typically lacks employer-provided health benefits; options include ACA health plans and Health Savings Accounts (HSAs) [6] - HSAs offer tax advantages, allowing pre-tax contributions to grow tax-free and enabling tax-free withdrawals for medical expenses [7] Group 4: Financial Independence Approach - The FIRE (Financial Independence, Retire Early) movement is suggested, advocating for saving 50% to 70% of income and investing in low-cost index funds [7]

Core Viewpoint - The article contrasts the FIRE (Financial Independence, Retire Early) movement with the life of 101-year-old Ann Angeletti, who continues to work and thrive, suggesting that traditional views on retirement may not be beneficial for everyone [1][4]. Group 1: Angeletti's Lifestyle and Work Ethic - Ann Angeletti, at 101 years old, works six days a week at her jewelry store, Curiosity Jewelers, demonstrating a vibrant and active lifestyle [2][3]. - She has been working since childhood, having dropped out of school to help in her family's grocery store, and opened her jewelry store in 1964 with a rent of just $85 [3]. - Angeletti emphasizes the importance of self-care and has outlined six secrets to her longevity and success, which include basic self-care routines and the decision not to retire [5]. Group 2: Implications of Early Retirement - The article raises questions about the long-term benefits of early retirement, noting that studies have shown it may not be better for health or wealth [4][6]. - Research indicates that early retirement is linked to various health risks, including cognitive decline, cardiovascular issues, and increased mortality rates [6].