I have mentioned several times on this blog that way back when (1970s), my mother would advise me, “diversify investments and do not rely on social security for your only form of income when you retire.”

Back then, it was hard enough to own my first house and not go into deeper debt as I renovated it to make it habitable.

But over time, with persistence, patience, and lots of “sweat equity,” I bought houses that were on the market as financially distressed properties (most of them were in foreclosure or about to be)… renovated them myself, and rented them to police, firefighters, and teachers who need to have affordable housing in the same county where they worked.

Well, today…

… I sold one of those properties to a current tenant.

This was harder for me to do than I thought it would be. I lived in that house for four years, and have memories there. Especially on what it took to remodel it and bring it up to more recent building code and electrical code requirements. That took a LOT of hard work, pestering of local officials, and most — if not all — of my “free time” for two whole years.

But by “investing myself” (labor) and working as my own General Contractor, I saved lots of money and was able to pay off the loan for the house in less than five years.

That self-investment, though, also is an investment of my soul, in a way.

Anyway, today the sale was completed for a current tenant. A local police officer and her family are now very happy, as am I — in a bittersweet way.

I put the proceeds of the sale into an LLC that is owned by a self-directed IRA. I can withdraw funds as I need it to live, and when I make a withdrawal, those funds are then taxable. But the full sale price is not taxable immediately. Win-win for all around. Yay!

Life is short: plan for your retirement through diversified (and tax-protected) investments!