Tuesday, May 18, 2010
Finding the Best Place to Retire
I'm still catching up on things, so before I get back to writing about "designing our retirement", here is an interesting article about places to retire.
It's an interactive article where you can choose by demographics, activities, weather, or home prices and it will offer cities that match that criteria. It's helpful if you don't have a clue yet where you'd like to think about retiring, or if you'd just like to dream.
http://www.usnews.com/money/best-places/to-retire/listing/search/
It's an interactive article where you can choose by demographics, activities, weather, or home prices and it will offer cities that match that criteria. It's helpful if you don't have a clue yet where you'd like to think about retiring, or if you'd just like to dream.
http://www.usnews.com/money/best-places/to-retire/listing/search/
Tuesday, May 4, 2010
Do you have enough saved for retirement?
As you can see by the date of my last post, I haven't written much lately. My family and I went to Chile,
and what a wonderful time we had. I'm still catching up, so therefore, I am posting an article of interest
to all of us thinking about our retirement. Stay tuned though. I'll be posting again soon. Thanks!
The New Math of Retirement
Financial advice you've gotten in the past may have been misguided and miscalculated. Here's how to make sure you've got enough saved up.
By Linda Stern
May 3, 2010
There's one key fact of life that most retirement planning advice gets wrong: the way people actually live and spend when they retire. Put simply, most retirement calculators and planners aim for decades of level spending, but most people reduce their spending as they move through retirement. That's a disconnect that can significantly skew the results of the typical planning exercise, says a recent study from the Society of Actuaries and the Actuarial Foundation. It could lead workers to take greater investment risks, or be overly frugal during their final years of work or their first active years of retirement.
When workers retire, their budget often goes through four phases: (1) early retirement, when travel, home improvement, hobbies, and new wardrobes can raise expenses beyond workday levels; (2) midretirement, when people (and their spending) typically slow down; (3) late retirement, when spending and activity slows even more; and (4) end of life, when spending for health care and personal assistance can use up what's left of a retirement kitty. But the typical retirement calculator calculates first-year spending based on a worker's last year of salary, and then simply adjusts that estimate up every year by the inflation rate. "Replacement rates may make sense as an analytical tool when peoples' income and expenses are stable over time. However, generally neither is the case," the study says.
In fact, retirement spending actually declines markedly over time, according to data from the Bureau of Labor Statistics. The average household headed by someone between the ages of 55 and 64 spent $54,783 in 2008, the last full year for which data has been published. That same year, households between 65 and 74 spent $41,433 and those over 75 spent just $31,692. Between the youngest group and the oldest group, spending fell by 42 percent, on everything from food to housing to clothing. Entertainment spending fell by almost two thirds. Federal taxes fell away, almost entirely.
That has implications for how pre-retirees save and how retirees draw down their money. It is also causing the insurance industry to start peddling new products aimed at that last, most expensive period.
"The first couple of years will be the most expensive. People should plan on that," says Diahann Lassus, a financial adviser from New Providence, N.J. "We're going to take dollars from future years and front load because we want to take these trips and do these things while we are all healthy and want to do them together. But at some point, you're going to be paying those dollars back."
How would this work, from a practical standpoint? A rule of thumb holds that your money will last all the way through retirement if you take 4 percent of your savings out the first year, and then increase the amount of your withdrawal by the inflation rate every year. But if your spending starts out high and doesn't increase with the inflation rate, you can take, say 6 percent out the first year, but not adjust your withdrawals annually by the inflation rate. By the time you start slowing down, in the midpoint of retirement, your withdrawals will have backed down, proportionately, to where they would have been had you been inflating a smaller withdrawal from the beginning.
There are, of course, caveats to that approach. Baby boomers who have the bulk of their retirement savings in tax-deferred vehicles may not see the same reduction in taxes as their parents did. A really bad year in the stock market, coupled with your first few years of outsized withdrawals, can wreck the whole retirement plan, says Tim Maurer, a Hunt Valley, Md., financial adviser. He tells clients to view their active early years of retirement as a multiyear stage, and save the expensive cruise for a good year. He also tells active retirees that they should continue to earn some money during those first active and expensive years of retirement, both to keep themselves satisfied and to bring in enough cash to pay for those extras. "Medically and financially, it makes significantly more sense to go with a pseudoretirement" that includes part-time or consulting work.
Finally, there's the issue that even retirees that have seen their spending dwindle for decades can get socked with big monthly expenses as their health deteriorates. They may need long-term care or expensive personal assistance. There are a variety of ways to deal with that--if they haven't already downsized their home, they can sell that and spend the proceeds on their later years. Advisers often recommend long-term-care insurance to clients well-heeled enough to afford the premiums, which typically top $200 a month.
Insurance companies are busy devising new products aimed at the latter years of retirement. Called "longevity insurance," these products really are deferred annuities that don't kick in until the owner turns 80 or so. But they tend to be too expensive for what they deliver, says Lassus. "We aren't big fans."
and what a wonderful time we had. I'm still catching up, so therefore, I am posting an article of interest
to all of us thinking about our retirement. Stay tuned though. I'll be posting again soon. Thanks!
The New Math of Retirement
Financial advice you've gotten in the past may have been misguided and miscalculated. Here's how to make sure you've got enough saved up.
By Linda Stern
May 3, 2010
There's one key fact of life that most retirement planning advice gets wrong: the way people actually live and spend when they retire. Put simply, most retirement calculators and planners aim for decades of level spending, but most people reduce their spending as they move through retirement. That's a disconnect that can significantly skew the results of the typical planning exercise, says a recent study from the Society of Actuaries and the Actuarial Foundation. It could lead workers to take greater investment risks, or be overly frugal during their final years of work or their first active years of retirement.
When workers retire, their budget often goes through four phases: (1) early retirement, when travel, home improvement, hobbies, and new wardrobes can raise expenses beyond workday levels; (2) midretirement, when people (and their spending) typically slow down; (3) late retirement, when spending and activity slows even more; and (4) end of life, when spending for health care and personal assistance can use up what's left of a retirement kitty. But the typical retirement calculator calculates first-year spending based on a worker's last year of salary, and then simply adjusts that estimate up every year by the inflation rate. "Replacement rates may make sense as an analytical tool when peoples' income and expenses are stable over time. However, generally neither is the case," the study says.
In fact, retirement spending actually declines markedly over time, according to data from the Bureau of Labor Statistics. The average household headed by someone between the ages of 55 and 64 spent $54,783 in 2008, the last full year for which data has been published. That same year, households between 65 and 74 spent $41,433 and those over 75 spent just $31,692. Between the youngest group and the oldest group, spending fell by 42 percent, on everything from food to housing to clothing. Entertainment spending fell by almost two thirds. Federal taxes fell away, almost entirely.
That has implications for how pre-retirees save and how retirees draw down their money. It is also causing the insurance industry to start peddling new products aimed at that last, most expensive period.
"The first couple of years will be the most expensive. People should plan on that," says Diahann Lassus, a financial adviser from New Providence, N.J. "We're going to take dollars from future years and front load because we want to take these trips and do these things while we are all healthy and want to do them together. But at some point, you're going to be paying those dollars back."
How would this work, from a practical standpoint? A rule of thumb holds that your money will last all the way through retirement if you take 4 percent of your savings out the first year, and then increase the amount of your withdrawal by the inflation rate every year. But if your spending starts out high and doesn't increase with the inflation rate, you can take, say 6 percent out the first year, but not adjust your withdrawals annually by the inflation rate. By the time you start slowing down, in the midpoint of retirement, your withdrawals will have backed down, proportionately, to where they would have been had you been inflating a smaller withdrawal from the beginning.
There are, of course, caveats to that approach. Baby boomers who have the bulk of their retirement savings in tax-deferred vehicles may not see the same reduction in taxes as their parents did. A really bad year in the stock market, coupled with your first few years of outsized withdrawals, can wreck the whole retirement plan, says Tim Maurer, a Hunt Valley, Md., financial adviser. He tells clients to view their active early years of retirement as a multiyear stage, and save the expensive cruise for a good year. He also tells active retirees that they should continue to earn some money during those first active and expensive years of retirement, both to keep themselves satisfied and to bring in enough cash to pay for those extras. "Medically and financially, it makes significantly more sense to go with a pseudoretirement" that includes part-time or consulting work.
Finally, there's the issue that even retirees that have seen their spending dwindle for decades can get socked with big monthly expenses as their health deteriorates. They may need long-term care or expensive personal assistance. There are a variety of ways to deal with that--if they haven't already downsized their home, they can sell that and spend the proceeds on their later years. Advisers often recommend long-term-care insurance to clients well-heeled enough to afford the premiums, which typically top $200 a month.
Insurance companies are busy devising new products aimed at the latter years of retirement. Called "longevity insurance," these products really are deferred annuities that don't kick in until the owner turns 80 or so. But they tend to be too expensive for what they deliver, says Lassus. "We aren't big fans."
Thursday, March 25, 2010
I have to thank HGTV!
Whether you start your process by interviewing an architect, a draftsperson, or a builder, it's a good idea to interview three potential prospects. We loved the HGTV shows, "Designer's Challenge" and "Landscaper's Challenge." When these shows were first on, we didn't even own our retirement property, but quickly realized what a good idea it was having three plans and quotes to choose from.
We started our project with a draftsperson since we started with a stand-alone garage. (More on draftspersons and architects in a later blog). We designed it and re-designed it. And re-designed it again. In retrospect, we would have saved ourselves some money by buying plans for this project. It's not an unusually shaped building, there were things we wanted that may not be totally normal in a garage, like a storage space upstairs that was nice enough to be used for overflow overnight guests, if needed. But still, we probably didn't have to design it from scratch. Also at the time we didn't realize our builder was so experienced and qualified, we could have purchased plans and changed them just by discussing it with him. Oh well, live and learn.
two works in progress
But back to the theory of three.... We decided to start with the builder/contractor. You can find builders from ads in the local papers, from your realtor, or from looking at open houses in the area and finding out who built the ones you like. And, of course, the yellow pages. In the book, "Designing Your Dream Home" by Susan Lang, she suggests sending out a letter to the three, explaining you are considering them for your project, telling them some basic information such as your timetable, approximate size of the home, the address, and add in a questionnaire, which includes questions such as, how many homes have you built, what is the largest, what is your home construction background and experience, how many homes are you currently building, how many are you currently bidding on, can you provide a copy of your certificate of insurance, and your license to build in this state. (For more, buy or borrow a copy of her book - it's extremely helpful!)
We called three companies, set up appointments, and then asked all our questions in person, rather than doing this separate step of mailing questions. We wanted to meet each builder we were considering right from the start, since both John and I like to get a sense of the person from talking with them. Either way is fine, you have to go with what you are comfortable with. Our process was helpful for both us and the builders since we met them right at the site. We were able to assess their reaction to the property, and they could see for themselves exactly where our project was. Then we went over our list of questions with each....and a long list it was.
More on these next time.
We started our project with a draftsperson since we started with a stand-alone garage. (More on draftspersons and architects in a later blog). We designed it and re-designed it. And re-designed it again. In retrospect, we would have saved ourselves some money by buying plans for this project. It's not an unusually shaped building, there were things we wanted that may not be totally normal in a garage, like a storage space upstairs that was nice enough to be used for overflow overnight guests, if needed. But still, we probably didn't have to design it from scratch. Also at the time we didn't realize our builder was so experienced and qualified, we could have purchased plans and changed them just by discussing it with him. Oh well, live and learn.
two works in progress
But back to the theory of three.... We decided to start with the builder/contractor. You can find builders from ads in the local papers, from your realtor, or from looking at open houses in the area and finding out who built the ones you like. And, of course, the yellow pages. In the book, "Designing Your Dream Home" by Susan Lang, she suggests sending out a letter to the three, explaining you are considering them for your project, telling them some basic information such as your timetable, approximate size of the home, the address, and add in a questionnaire, which includes questions such as, how many homes have you built, what is the largest, what is your home construction background and experience, how many homes are you currently building, how many are you currently bidding on, can you provide a copy of your certificate of insurance, and your license to build in this state. (For more, buy or borrow a copy of her book - it's extremely helpful!)
We called three companies, set up appointments, and then asked all our questions in person, rather than doing this separate step of mailing questions. We wanted to meet each builder we were considering right from the start, since both John and I like to get a sense of the person from talking with them. Either way is fine, you have to go with what you are comfortable with. Our process was helpful for both us and the builders since we met them right at the site. We were able to assess their reaction to the property, and they could see for themselves exactly where our project was. Then we went over our list of questions with each....and a long list it was.
More on these next time.
Thursday, March 18, 2010
Let's Begin
John and I began our designing and building of our retirement property a little backwards. We started (and are still in the midsts of) the outbuildings and landscaping some of the property, and will then move on to the "dream home" - in a couple years.
I read a quote the other day, "It's called a Dream Home because it winds up costing twice as much as you ever dreamed it would." Well, from experience I can tell you this has been true of everything. Sometimes 10% more, sometimes 70% more. But with the higher amount, some of it was because we were so new at the process and didn't take into account the cost of work that needed to be done even before the building. (Like raising up the land so it doesn't flood - it's waterfront property.)
But, I'm getting ahead of myself. It's a good idea when you're starting out with your project to get yourself a few binders or folders so you can keep your information organized. One of the books I've read (I'll review books in a future blog) suggests getting folders, binders, and a rolling suitcase to carry it all. That may be a bit extreme, but the general idea is good....organization is the key.
John's binders are of the "phase's" of our project. Plus one for all contracts and bills. I have four binders, "outside the house", things like windows, doors, stairs, docks, info on a wind turbine and solar panels, etc.; "inside the house", including pictures of kitchens, bathrooms, molding, ceilings, paint, wood floors, etc.; "floor plans," including pictures of the outside of houses that I like, and the last one, (for now) is "landscaping and the backyard." However you decide to assemble them, they will be a great help as your project moves along.
Now is the time you will go through all sorts of magazines, and the web, of course, and tear out everything you love and may want to put in the binders. You will cull through it later, but add it all! It will also be helpful, I have found out, when you'll be sitting down with your architect or draftsperson or designer (more on this in the next blog) to have a file with a few things you really don't like. It will help eliminate right up front some of the styles you're not interested in, saving time, and therefore, saving money. A very good thing.
I read a quote the other day, "It's called a Dream Home because it winds up costing twice as much as you ever dreamed it would." Well, from experience I can tell you this has been true of everything. Sometimes 10% more, sometimes 70% more. But with the higher amount, some of it was because we were so new at the process and didn't take into account the cost of work that needed to be done even before the building. (Like raising up the land so it doesn't flood - it's waterfront property.)
But, I'm getting ahead of myself. It's a good idea when you're starting out with your project to get yourself a few binders or folders so you can keep your information organized. One of the books I've read (I'll review books in a future blog) suggests getting folders, binders, and a rolling suitcase to carry it all. That may be a bit extreme, but the general idea is good....organization is the key.
John's binders are of the "phase's" of our project. Plus one for all contracts and bills. I have four binders, "outside the house", things like windows, doors, stairs, docks, info on a wind turbine and solar panels, etc.; "inside the house", including pictures of kitchens, bathrooms, molding, ceilings, paint, wood floors, etc.; "floor plans," including pictures of the outside of houses that I like, and the last one, (for now) is "landscaping and the backyard." However you decide to assemble them, they will be a great help as your project moves along.
Now is the time you will go through all sorts of magazines, and the web, of course, and tear out everything you love and may want to put in the binders. You will cull through it later, but add it all! It will also be helpful, I have found out, when you'll be sitting down with your architect or draftsperson or designer (more on this in the next blog) to have a file with a few things you really don't like. It will help eliminate right up front some of the styles you're not interested in, saving time, and therefore, saving money. A very good thing.
Friday, March 12, 2010
A Closing, and a Beginning
Yes, I did want to say "A Closing and an Opening", but it didn't make as much sense.
Just a few words about the "closing". John and I have closed on numerous houses and properties. Not only for ourselves, but while helping our parents. And this is one thing we've learned. There is no "correct" way to close on a property. We've sat with our lawyer in his office with both the seller, the seller's lawyer, and our realtor. We've sat in our lawyer's office just him and us. We've closed on the phone, and we've closed through the mail! Whichever way it works out, the one constant is to make sure your lawyer looks over every piece of paper.
And now, comes the new beginning. It's a journey, navigating our retirement. For our purposes, I will be concentrating this blog on building a home. You, however, may decide to purchase a house, or a condo. But our course is similar. We are taking a new road. Scary? A little. Exciting? Definately! And fun.
John and I have spent many happy hours, talking about our new property, how we want to design the house, or landscape the property. And I seriously mean hours and hours. For the entire four hour drive to that property we discuss, and plan, and argue and compromise. It may be a long road. But we are elated! And that old saying is true; for us, it's the journey, not the destination.
Monday, March 8, 2010
Making an Offer
Hopefully, after all your looking and researching, you will find a place that you love. It speaks to you, and offers all sorts of possibilities for your future retirement life. It's exciting, and scary both at once.
Well, the advice I have for you now is to try and approach the offer process without that emotion. It's difficult, but if you truly want to get the best deal, be prepared to walk away. Of course, that's sometimes easier said than done. And truthfully, as my husband John likes to say, what makes a good deal is when both parties walk away happy. But in the past, we have applied this to a couple of real estate transactions, and we were successful, even though our realtor suggested we raise our offer amount!
I asked John to give us some advice, here's what he had to say -
"As we're all aware, there's been no better time in recent history to be a buyer in the real estate market. When you're ready to make an offer, look at both the listing price and how many days it's been on the market. These days, it's not unheard of to offer 20 to 25% less than the asking price. Yes, some realtors might consider that insulting, but by law, they have to bring that offer to the seller. Also, if you have your funding all set already, and you can close quickly, then you may be in a much better situation to get the property at a better price."
This low offer tactic actually worked in our favor twice in our purchasing history. The first time our realtor was horrified! She tried to talk us out of it, and said the seller wouldn't deal with us anymore. But for some reason we weren't that concerned, and knew if we didn't get that property we would find another. We told her to present the offer and we'll just see what the sellers come back with. Well, to all of our astonishment, they accepted it right off the bat!
We also did it with the property we bought now, our beautiful retirement property. The sellers bought the house to flip, but didn't winterize it, and it was totally damaged. Which was fine with us, since we just wanted property. This time, we offered about 30% less because it had been on the market awhile, and the house was uninhabitable. We went back and forth quite a bit with the sellers, but the sellers wanted to close within three weeks, and since we had our funds available, we came to an excellent agreement, we got it for close to 25% less than they were asking. Were we shocked? Yes. Were we prepared to walk away? Again, yes. But we have been happy and thankful every time we see the place!
John now continues, "Include that your offer to buy is subject to a clean title, and inspection (if it's a house) or a survey if it is property. You may have to give your realtor a good faith down payment at this point, and sign papers proving it's a legitimate offer. Also, if you don't know a lawyer in the area, ask your realtor for a few names.
These principles are just guidelines because every situation is different. Some people, especially early in the listing, do not want to budge from their listing price. And sometimes, your emotional attachment to a place is so strong, that you don't want to lose it! In that case, don't worry that you didn't get the absolute lowest price you could have gotten. If you're happy, and the seller is happy, it was a good deal!"
Well, the advice I have for you now is to try and approach the offer process without that emotion. It's difficult, but if you truly want to get the best deal, be prepared to walk away. Of course, that's sometimes easier said than done. And truthfully, as my husband John likes to say, what makes a good deal is when both parties walk away happy. But in the past, we have applied this to a couple of real estate transactions, and we were successful, even though our realtor suggested we raise our offer amount!
I asked John to give us some advice, here's what he had to say -
"As we're all aware, there's been no better time in recent history to be a buyer in the real estate market. When you're ready to make an offer, look at both the listing price and how many days it's been on the market. These days, it's not unheard of to offer 20 to 25% less than the asking price. Yes, some realtors might consider that insulting, but by law, they have to bring that offer to the seller. Also, if you have your funding all set already, and you can close quickly, then you may be in a much better situation to get the property at a better price."
This low offer tactic actually worked in our favor twice in our purchasing history. The first time our realtor was horrified! She tried to talk us out of it, and said the seller wouldn't deal with us anymore. But for some reason we weren't that concerned, and knew if we didn't get that property we would find another. We told her to present the offer and we'll just see what the sellers come back with. Well, to all of our astonishment, they accepted it right off the bat!
We also did it with the property we bought now, our beautiful retirement property. The sellers bought the house to flip, but didn't winterize it, and it was totally damaged. Which was fine with us, since we just wanted property. This time, we offered about 30% less because it had been on the market awhile, and the house was uninhabitable. We went back and forth quite a bit with the sellers, but the sellers wanted to close within three weeks, and since we had our funds available, we came to an excellent agreement, we got it for close to 25% less than they were asking. Were we shocked? Yes. Were we prepared to walk away? Again, yes. But we have been happy and thankful every time we see the place!
John now continues, "Include that your offer to buy is subject to a clean title, and inspection (if it's a house) or a survey if it is property. You may have to give your realtor a good faith down payment at this point, and sign papers proving it's a legitimate offer. Also, if you don't know a lawyer in the area, ask your realtor for a few names.
These principles are just guidelines because every situation is different. Some people, especially early in the listing, do not want to budge from their listing price. And sometimes, your emotional attachment to a place is so strong, that you don't want to lose it! In that case, don't worry that you didn't get the absolute lowest price you could have gotten. If you're happy, and the seller is happy, it was a good deal!"
Friday, March 5, 2010
Search for Property Records
Most of the information you will need about a property you are interested in, or a home for that matter, will be given to you by your realtor. Eva, our realtor, had all sorts of information, including in many cases, the back story on the property owners.
Your realtor will be able to tell you how long the seller has owned the property, how much the seller originally paid, and how much is owed against the property. They can find out how many days it has been on the market, if it was on previously, and then withdrawn and relisted, or if it has recently sold and is now a "flipper".
This information is very useful, and you should not consider making an offer without it.
There are times, however, you may want to get more information than your realtor has given you, and then you must do a little searching on your own.
You can go into the town hall, to the county assessor's office. Or there may be another office where these records are kept, for instance, the county courthouse or city hall. There will be one place where the public can go to search for information on a property. You can find out the owner, the tax records, the assessed worth, the size, zoning information, and find out if the seller has filed for bankruptcy.
You can also so some searching online, although many I have attempted to do for this article, ran into a "pay for information" situation. But, here are some suggestions:
http://www.publicrecords.onlinesearches.com/
http://www.nationalpropertyrecord.org/
http://www.zillow.com/
www.freeprf.com/property.html (this site doesn't include all 50 states)
All these facts will help you make a realistic and successful offer.
Till next time.
Your realtor will be able to tell you how long the seller has owned the property, how much the seller originally paid, and how much is owed against the property. They can find out how many days it has been on the market, if it was on previously, and then withdrawn and relisted, or if it has recently sold and is now a "flipper".
This information is very useful, and you should not consider making an offer without it.
There are times, however, you may want to get more information than your realtor has given you, and then you must do a little searching on your own.
You can go into the town hall, to the county assessor's office. Or there may be another office where these records are kept, for instance, the county courthouse or city hall. There will be one place where the public can go to search for information on a property. You can find out the owner, the tax records, the assessed worth, the size, zoning information, and find out if the seller has filed for bankruptcy.
You can also so some searching online, although many I have attempted to do for this article, ran into a "pay for information" situation. But, here are some suggestions:
http://www.publicrecords.onlinesearches.com/
http://www.nationalpropertyrecord.org/
http://www.zillow.com/
www.freeprf.com/property.html (this site doesn't include all 50 states)
All these facts will help you make a realistic and successful offer.
Till next time.
Sunday, February 28, 2010
Let's Go See!
So you found a place you'd like to go and check out, you've contacted a few realtors, and now you're ready to go and take a look. This is the fun part! There are, however, some things to know before you go.
You've hopefully been checking the internet, looking at properties online, and also having your realtor send you some listings that he/she thinks fits what you are looking for. John and I spent many hours doing this, and even though sometimes we'd get up from the computer cross-eyed, it was a great help and was also a lot of fun. Eva, our realtor, sent us at least ten listings a week. We'd go over them separately, then together, and totally eliminate some for one reason or another. Here's a word of advice, the picture doesn't tell the true story all the time. There were many properties that looked wonderful, and sounded even better, but when we went to see them, we found out the camera was taken from an angle that really didn't give the true picture. You just have to go out to see them, and then experience will start helping you weed through some of the jargon.
We were looking for property, not a house. After many trips down to the area not finding something that "spoke" to us, Eva, now knowing exactly what we were looking for, wanted to take us to a property that had a house and two other buildings on it. We were surprised when she first mentioned it, but she said, this property is exactly what you want, and the house is uninhabitable. The owners bought it to flip, but didn't winterize it, so the pipes had burst and the entire house was damaged. We agreed to go and take a look, and she was right! It was exactly the property we had in mind, in fact it was even better than we thought we'd ever find! But those buildings! It would add so much work, and money! We let it go for awhile, and kept looking. But I'm sure you can figure out what happened. We never found anything to match that property. More on this in future blogs.
Here, though, is my most helpful tip when you are going out to look at properties - (or even at houses), take your camera and a notebook! Since the properties we were looking at were far and wide, we saw about three or four in a day. We'd go for the weekend, so that meant we'd see about eight to twelve properties on a trip. You think you can keep it all straight in your mind, I even wrote notes on the property sheets Eva had given us, but I quickly became aware that they all started to blend after we got home. Eventually, I even started writing down in my notebook the numbers of the pictures I was taking to go with each property. It made our lives much easier later when John and I went over all that information when we got home. You'll thank me later.
Till next time.
You've hopefully been checking the internet, looking at properties online, and also having your realtor send you some listings that he/she thinks fits what you are looking for. John and I spent many hours doing this, and even though sometimes we'd get up from the computer cross-eyed, it was a great help and was also a lot of fun. Eva, our realtor, sent us at least ten listings a week. We'd go over them separately, then together, and totally eliminate some for one reason or another. Here's a word of advice, the picture doesn't tell the true story all the time. There were many properties that looked wonderful, and sounded even better, but when we went to see them, we found out the camera was taken from an angle that really didn't give the true picture. You just have to go out to see them, and then experience will start helping you weed through some of the jargon.
We were looking for property, not a house. After many trips down to the area not finding something that "spoke" to us, Eva, now knowing exactly what we were looking for, wanted to take us to a property that had a house and two other buildings on it. We were surprised when she first mentioned it, but she said, this property is exactly what you want, and the house is uninhabitable. The owners bought it to flip, but didn't winterize it, so the pipes had burst and the entire house was damaged. We agreed to go and take a look, and she was right! It was exactly the property we had in mind, in fact it was even better than we thought we'd ever find! But those buildings! It would add so much work, and money! We let it go for awhile, and kept looking. But I'm sure you can figure out what happened. We never found anything to match that property. More on this in future blogs.
Here, though, is my most helpful tip when you are going out to look at properties - (or even at houses), take your camera and a notebook! Since the properties we were looking at were far and wide, we saw about three or four in a day. We'd go for the weekend, so that meant we'd see about eight to twelve properties on a trip. You think you can keep it all straight in your mind, I even wrote notes on the property sheets Eva had given us, but I quickly became aware that they all started to blend after we got home. Eventually, I even started writing down in my notebook the numbers of the pictures I was taking to go with each property. It made our lives much easier later when John and I went over all that information when we got home. You'll thank me later.
Till next time.
Friday, February 26, 2010
Ten Tips for Picking the Right Retirement Spot
Someone recently sent me this article about how to pick a good retirement spot. I thought it might be worth adding in here, it's good advice.
It was written by Emily Brandon, USNews.com
Most people retire in the same town where they spent their final working years. But some seek out a new locale with ski slopes or perhaps ocean views. Of course, budget is a big concern. "Many people move close by and move to a smaller home or condo where they have less upkeep," says William Frey, a Brookings Institution demographer. "But they still want to stay close to their children and stay involved in the business world by consulting and remaining close to their clients." Here are some tips for finding a place that fits your budget and interests.
Cost of living.
Moving to a place with lower housing, food, and entertainment costs is an obvious way to stretch your nest egg. "A lower cost of living is the major factor behind retirement mobility," says David Savageau, author of Retirement Places Rated. "I don't know anyone moving from Kansas to Hawaii." Some 22 percent of Americans age 51 and older who moved between 1992 and 2004 did so to save money, according to a recent Center for Retirement Research at Boston College analysis. Estimate how your expenses will change if you move.
Low-tax locales.
Tax rates vary considerably by location. Seven states don't levy an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee tax only dividend and interest income. And five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Be sure to evaluate property taxes and state and local tax exemptions for seniors.
Healthcare facilities.
Your healthcare needs are bound to increase as you age. Make sure your prospective retirement spot has adequate health and elder-care facilities and a doctor who can treat any condition you may have. "You can call and see how difficult it is to get an appointment," says Michael Perskin, a geriatrics physician at the New York University Langone Medical Center. "If you're on hold for more than 10 minutes or you leave a message on voice mail and you don't get a call back, then you know."
Proximity to family.
Many retirees would like to become more involved in their grandchildren's lives. Living near family sometimes has another bonus: help with lawn care or transportation for grocery shopping-services you would otherwise have to hire. More than a quarter (28 percent) of older Americans who have relocated after age 51 did so primarily to be near children or relatives, Boston College found. "People often migrate toward someone because they have become more disabled or have lost their spouse and they need some support that they are not getting in their current location," says Mark Fagan, a sociology professor at Jacksonville State University in Alabama who studies retirement migration. "They will move toward their children or some friends to help them with their daily life.
Job opportunities.
Many people who haven't saved enough or have seen their investments drop significantly in value will need to work during the traditional retirement years. More than a third (38 percent) of Americans between the ages of 62 and 74 worked in 2008, up 39 percent since 1993, according to the Census Bureau. Although the national unemployment rate has been climbing, cities such as Kennewick, Wash.; McAllen, Texas; and Danville, Va., have added thousands of jobs over the past year. Look for a place that has plenty of part-time job opportunities or consulting work in a field that interests you.
Recreation and culture.
When you're no longer tied to a job, you have the freedom to live in wine country or within walking distance of a beach. Perhaps your ideal retirement spot has plenty of art galleries, golf courses, and hiking trails. College towns often fit the bill and host world-class speakers and entertainers, and they often have an affordable cost of living.
Public transportation.
Retirees often reach a point when they can't or no longer want to drive. Consider the cost and quality of a town's public transportation system and how to get around without a car. AppalCART, a regional bus service in Boone, N.C., for example, provides free local transportation. And retirees who join Walnut Creek, Calif.'s Senior Club ($7 annual dues) are eligible for a minibus service that offers transport within the city limits for $1 each way.
Housing needs.
Downsizing into a smaller house or condo goes a long way in stretching your retirement budget. "There's a lot of money tied up in your home, and sometimes there is someplace else you could buy a home and free up some of those assets," says Michael Goodman, a certified financial planner and president of Wealthstream Advisors in New York. Retirement communities and assisted living facilities aim to cater to baby boomers' changing needs and whims. "As you age, you are going to be less able to maintain a large home and [keep up the grounds], and you may be looking for a smaller place with less maintenance," says Fagan. "Rent in a place for a while to see how well you really like it."
Weather.
To some, it's important to not have to shovel snow or defrost a car. But warm climates also come with the downside of larger air-conditioning bills. Think about whether you want four distinct seasons. Some retirees can get the best of both worlds by maintaining or renting a residence in the north and then heading south for the winter.
Amenities.
Of course, you'll want to cover the basics, including the crime rate and quality of healthcare facilities. But don't forget about things like libraries, Internet and cellphone access, shopping, religious institutions, and senior centers. If you plan to travel on a regular basis, look for a place that's near an airport or train station. Some cities, including Boston, Princeton, N.J., and Washington, have developed nonprofit associations of seniors who pool their resources to stay safely in their homes longer. These aging-in-place communities typically provide a range of services, including affordable door-to-door transportation, home maintenance and meal services, and even a daily check-in phone call for an affordable annual fee.
It was written by Emily Brandon, USNews.com
Most people retire in the same town where they spent their final working years. But some seek out a new locale with ski slopes or perhaps ocean views. Of course, budget is a big concern. "Many people move close by and move to a smaller home or condo where they have less upkeep," says William Frey, a Brookings Institution demographer. "But they still want to stay close to their children and stay involved in the business world by consulting and remaining close to their clients." Here are some tips for finding a place that fits your budget and interests.
Cost of living.
Moving to a place with lower housing, food, and entertainment costs is an obvious way to stretch your nest egg. "A lower cost of living is the major factor behind retirement mobility," says David Savageau, author of Retirement Places Rated. "I don't know anyone moving from Kansas to Hawaii." Some 22 percent of Americans age 51 and older who moved between 1992 and 2004 did so to save money, according to a recent Center for Retirement Research at Boston College analysis. Estimate how your expenses will change if you move.
Low-tax locales.
Tax rates vary considerably by location. Seven states don't levy an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee tax only dividend and interest income. And five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Be sure to evaluate property taxes and state and local tax exemptions for seniors.
Healthcare facilities.
Your healthcare needs are bound to increase as you age. Make sure your prospective retirement spot has adequate health and elder-care facilities and a doctor who can treat any condition you may have. "You can call and see how difficult it is to get an appointment," says Michael Perskin, a geriatrics physician at the New York University Langone Medical Center. "If you're on hold for more than 10 minutes or you leave a message on voice mail and you don't get a call back, then you know."
Proximity to family.
Many retirees would like to become more involved in their grandchildren's lives. Living near family sometimes has another bonus: help with lawn care or transportation for grocery shopping-services you would otherwise have to hire. More than a quarter (28 percent) of older Americans who have relocated after age 51 did so primarily to be near children or relatives, Boston College found. "People often migrate toward someone because they have become more disabled or have lost their spouse and they need some support that they are not getting in their current location," says Mark Fagan, a sociology professor at Jacksonville State University in Alabama who studies retirement migration. "They will move toward their children or some friends to help them with their daily life.
Job opportunities.
Many people who haven't saved enough or have seen their investments drop significantly in value will need to work during the traditional retirement years. More than a third (38 percent) of Americans between the ages of 62 and 74 worked in 2008, up 39 percent since 1993, according to the Census Bureau. Although the national unemployment rate has been climbing, cities such as Kennewick, Wash.; McAllen, Texas; and Danville, Va., have added thousands of jobs over the past year. Look for a place that has plenty of part-time job opportunities or consulting work in a field that interests you.
Recreation and culture.
When you're no longer tied to a job, you have the freedom to live in wine country or within walking distance of a beach. Perhaps your ideal retirement spot has plenty of art galleries, golf courses, and hiking trails. College towns often fit the bill and host world-class speakers and entertainers, and they often have an affordable cost of living.
Public transportation.
Retirees often reach a point when they can't or no longer want to drive. Consider the cost and quality of a town's public transportation system and how to get around without a car. AppalCART, a regional bus service in Boone, N.C., for example, provides free local transportation. And retirees who join Walnut Creek, Calif.'s Senior Club ($7 annual dues) are eligible for a minibus service that offers transport within the city limits for $1 each way.
Housing needs.
Downsizing into a smaller house or condo goes a long way in stretching your retirement budget. "There's a lot of money tied up in your home, and sometimes there is someplace else you could buy a home and free up some of those assets," says Michael Goodman, a certified financial planner and president of Wealthstream Advisors in New York. Retirement communities and assisted living facilities aim to cater to baby boomers' changing needs and whims. "As you age, you are going to be less able to maintain a large home and [keep up the grounds], and you may be looking for a smaller place with less maintenance," says Fagan. "Rent in a place for a while to see how well you really like it."
Weather.
To some, it's important to not have to shovel snow or defrost a car. But warm climates also come with the downside of larger air-conditioning bills. Think about whether you want four distinct seasons. Some retirees can get the best of both worlds by maintaining or renting a residence in the north and then heading south for the winter.
Amenities.
Of course, you'll want to cover the basics, including the crime rate and quality of healthcare facilities. But don't forget about things like libraries, Internet and cellphone access, shopping, religious institutions, and senior centers. If you plan to travel on a regular basis, look for a place that's near an airport or train station. Some cities, including Boston, Princeton, N.J., and Washington, have developed nonprofit associations of seniors who pool their resources to stay safely in their homes longer. These aging-in-place communities typically provide a range of services, including affordable door-to-door transportation, home maintenance and meal services, and even a daily check-in phone call for an affordable annual fee.
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