Worry Your Retirement Nest Egg Won’t Last as Long as You Do?

Worry Your Retirement Nest Egg Won’t Last as Long as You Do?

A study conducted by Boston College’s Center for Retirement Research has found that American workers are $6.6 trillion short of what they need to retire comfortably. A striking number, 46% of all American workers, have less than $10,000 saved for retirement. Maybe, you are the exceptional American, though I suspect most of you still worry your retirement nest egg won’t last as long as you do.  The important thing to realize is that you have options.

You Have Options

Turn hobbies into income

– in a block party recently, neighbors discovered that some play the banjo and harmonica. How about giving lessons? One was a retired English teacher. Another liked to write. Still, others loved reading, gardening, and walking. Why not teach others to play the banjo. Lots of people are coming across our border; how about teaching them English. Add to your income by becoming a freelance writer, write articles about your city, and take photos on your walks.

Downsize

– do you really need that big house? Think of the utility money you’ll save with a smaller home or on property taxes, and the less time spent on upkeep. When you downsize, you’ll discover a new hobby, selling your excess stuff at a garage sale, or learn about Craig’s list.

Sharing in the new economy

– new companies have sprung up to help you rent out a room. “You can rent out rooms in your house through HomeAway.com, Vacation Rentals By Owner.com or Airbnb,” says Sandy Franks, executive director of the Women’s Financial Alliance in Baltimore. “One room rented out two nights per week is about $10,400 a year in extra income.”

Track your spending

– a lot of people don’t really know where their money goes each month. Start now, and for a month, write down everything you spend money on. At the end of the month, look back on your spending by grouping your expenditures. Are you amazed at how little things get to be big things? Are you spending money wisely? Are you wasting money? Did you really need that to buy that?

Sell or rent out your home

– You could sell your home, bank the money and house sit for others in exotic locations. Enjoy Mexico, Italy, and Thailand. There are people all over the world looking for singles and couples to trust with their pets and home for some period of time. While you are away, rent out your home — just Google house sitters.

Go online to “Kiplinger” or “International Living”

to get advice on the best places to retire in the U.S. and abroad.

Move to a city or a country where the cost of living is low

– Become an expat In Mexico, for example. The cost of living is about half of the U.S., and there’s a fabulous climate where you can reinvent yourself. As much as the media disses Mexico, you’ll find that Mexico can be safer than many big cities in the U.S.

Continue to invest

– put something away each month. Remember the slogan, “Pay yourself first!”? It is still a good idea to save 10% off the top.

Get out of debt

– stop being a slave to the credit cards. There is no place for debt in retirement. Think about how much cheaper you could live without a mortgage and credit payments.

Worry Your Retirement Nest Egg Won’t Last as Long as You Do?

Get debt free by selling your house. Call us and discuss your options.

 

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

Pros and Cons of Owning a Vacation Home

Pros and Cons of Owning a Vacation Home

The Pros and Cons of Owning a Vacation Home differ by whom you ask. Maximum Exposure Real Estate opines, “Buying a vacation home is great for a number of reasons. Not only does it serve as a great place to spend time away from the world, but it also works as an excellent investment for you as well.

Noted financial adviser Dave Ramsey said, “The idea of owning a second home is tempting. You can buy it near your favorite vacation spot or in your own city. But the truth is, for a lot of people, the purchase of a second home is a bad idea.

Pros and Cons of Owning a Vacation Home

PROS

  • A great place to spend time away from the world. Returning to the same place time and after time can be comforting as you become familiar and comfortable with the location. It allows you the freedom to be yourself and the opportunity to expand long-term friendships with residents – you can become part of the social fabric.
  • An excellent investment for you. While all assets fluctuate in value in the short term, vacation properties are more likely to retain their value and appreciate because they are located in popular areas with a geographically limited supply.
  • Rental income. If you decide to rent your home, but personally use the property as well, you’ll need to determine whether you’re eligible to deduct operating expenses. To determine this, add up the days you rented the property. If you occupied the property fewer than 10% of the days, you rented it or for less than two weeks – whichever is greater – you can deduct all of the operating expenses of the home including interest, utilities, cleaning fees, lawn maintenance, and management fees.

CONS

  • There’s the money. Most people simply aren’t in a position financially to buy a second home. According to the Census Bureau, two-thirds of today’s homeowners have a mortgage on their current homes. Jumping the gun and buying another property before your primary residence is paid off simply doubles your risk—even if you plan to rent it out when you’re not using it.
  • It takes time and hassleHow much time do you spend on the upkeep of your home? While a second home may not double that time, it can mean many more hours and headaches than you think. Dave Ramsey said, “If this is a vacation home that will remain unoccupied most of the time, just imagine the damage a burst water pipe could cause if it goes undiscovered for weeks.
  • Your vacation spot is also an easy target for vandalism and burglary, so you’ll need a top-notch security system and insurance designed to cover damages that are more common in vacation homes.
  • Are we going to the mountains again? If you are paying a significant amount of money each month for a second home, you may feel that you need to constantly and exclusively visit the property to justify your investment. How much time do you have for vacations? Do you want to go every year to the same place?

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

 

How to Fund Your Kids’ Education

How to Fund Your Kids’ Education

Deborah Fowles at The Balance writes, “If you’re the parent of a newborn or young child, you’ve probably heard the depressing estimates of the cost of a college education when your child is ready to enter college about 18 years from now.” The cost of four years of a public college is expected to cost in excess of $100,000 and for a private school over $200,000. So, how to fund your kids’ education is a big question on parents’ minds.

How to Fund Your Kids Education

  1. Start Early. The sooner you start investing for your child’s education, the better. As with any other investment goal, time and compounding interests are your best friends and most valuable asset. RapidTables has a calculator online that you are free to use. Use it to figure out how a disciplined savings plan can get you to the $100,000 you will need.
  2. Start a Plan. The first step in making a college savings plan is to estimate what the total cost of your child’s education is likely to be. The average in-state tuition and fee total for a four-year public school came to just under $10,000 for the 2017-18 academic year. At five percent inflation per year, the estimated cost per year 18 years from now would be around $24,000.
  3. Save Often and Regularly. In order to amass enough money to finance four years of college, you not only need to start saving early but also invest aggressively and regularly. Rather than investing a certain lump sum every year, consider contributing a small amount every month to take advantage of dollar-cost averaging strategy and compound interest, as every month counts.
  4. Invest Wisely. The only thing worse than not saving at all is putting your money in a passbook savings or money market account. Stock funds historically have almost always exceeded other investments over periods of ten years or more. Look for no-load (no fee to purchase or sell) mutual funds or exchange-traded funds for diversification with fewer costs. But certain types of real estate can yield 10% to 12%. That’s something Paige Panzarello of Coal to Cash Homebuyers, Inc.. is an expert at teaching and investing.
  5. Know Your Investment Options. Be sure to take advantage of any tax-deductible or tax-deferred methods that you’re eligible for. Some of the best investment options for college savings include:

Roth IRA

Coverdell Education Savings Account (formerly known as an Education IRA)

State College Savings Plans (529 Plans)

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

Reasons to Sell to Cash Buyer

Reasons to Sell to Cash Buyer

Los Angeles houses land on the market for a variety of reasons. Coal to Cash Homebuyers, Inc. is a real estate investor and redevelopment company, and we see all of the reasons to sell to a cash buyer.

Need to relocate quickly

There is a tornado of activity when you relocate to another area. It could be a result of new job placement; job transfer or increased security concern. For whatever the reason, it is a stressful situation to be in and we can help by reacting fast to your need for speed.

Divorce

Two homeowners may be dancing to different music, and divorce cries out as the only option. A divorce and settlement involve selling the house.  The ex-couple may want to sell quickly so they can begin their lives anew.

Financial Issues

Stressful as they can be, financial challenges are the main reasons to sell to a cash buyer. People need to quickly sell their homes if too much debt keeps them awake at night and are facing a possible foreclosure or even bankruptcy. We can help fast, even taking care of tax liens and past due utility bills.

Costly Repair Work

The homeowners may want to sell the house, but the house requires major repairs before it can attract buyers. Should you renovate or sell as-is? If the cost of renovating the house is high, it might make sense to sell the property instead of renovating. It may make more sense to sell the property and add money that could have been used for repairs to buy a more fitting and beautiful house. We Are a Cash Buyer of Los Angeles Houses

Death in the family

Death in a family is one of the main reasons to sell to a cash buyer. With our dispersed families, the house you inherit here in Los Angeles may be a long way from your home. You may not have the time to go through the process of selling the house. The house may need extensive work to increase the curb appeal, but the heirs may not have the money or inclination. We can help. We Are a Cash Buyer of Los Angeles Houses

Downsizing

The kids have left the nest. The house is just too big for the two of you. You find you just rattle around in the big, old house and the maintenance is overwhelming. You decide that you need something smaller. Maybe, you have the travel bug and don’t want to worry about the big house here in Los Angeles. Maybe, you want to leave right away. We can help.

We Are a Cash Buyer of Los Angeles Houses

Whatever your reason for wanting to sell here in the Los Angeles area, call us. We can close in less than 30 days.

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

 

Opportunity Zones

Opportunity Zones

Could you be one of those who say, “I can’t sell because of the capital gains taxes I would pay.” Welcome to Urban Renewal for America – Opportunity Zones, a program created in the 2017 tax overhaul to spur economic development in low-income neighborhoods while offering investors potentially large tax breaks. The program has not received much publicity in the media, but investors around the country are poised to funnel billions of dollars into funds targeting developments and businesses in low-income neighborhoods.

Urban Renewal for America – Opportunity Zones

The Opportunity Zone program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. To stimulate private participation in the Opportunity Zones program, taxpayers who invest in Qualified Opportunity Zones are eligible to benefit from capital gains tax incentives available exclusively through the program.

To qualify for nomination as Opportunity Zones, a census tract must meet the following low-income requirements as defined by US Internal Revenue Code Section 45D(e):

  • A poverty rate of at least 20%; or
  • A median family income of:
    • No more than 80% of the statewide median family income for census tracts within non-metropolitan areas.
    • No more than 80% of the greater statewide median family income or the overall metropolitan median family income for census tracts within metropolitan areas.

Under this scope, 57% of all neighborhoods in America were up for consideration as Opportunity Zones, according to the Brookings Institute.

Essentially, Opportunity Funds can only invest in the construction of new buildings and the substantial improvement of existing unused buildings. If an Opportunity Fund invests in the improvement of an existing building, it must invest more in the improvement of the building than it paid to buy the building. Whether the building is constructed from the ground up or improved, the development of the building must be completed within 30 months of purchase.

How Can a Real Estate Investor Benefit?

When an investor divests an appreciated asset, such as stocks or real estate, they realize a capital gain, which is a taxable event. Under the Opportunity Zones Program, if an investor reinvests a capital gain into an Opportunity Fund, they can defer the taxes until April 2027 and reduce their tax liability on that gain. Beyond that, they can also potentially receive tax-free treatment for all future appreciation earned through the fund. Together, these tax incentives can boost after-tax returns for Opportunity Fund investors:

Those who hold their Opportunity Fund investment for at least 10 years can expect to pay no capital gains taxes on any appreciation in their Opportunity Fund investment.

The first Opportunity Zones were created in Vicksburg, a city where 68 percent of the population is black or African American. And even though mayor Flaggs is a Democrat, he did not hesitate to share the stage with Trump or to tout the success of the new program.

“As a mayor of Vicksburg and a former legislator for 25 years, I’ve never seen any piece of legislation that allows more collaboration between federal, state and local gov’t,” Mississippi mayor and Democrat George Flaggs said, thanking Trump for his tax cuts and support.

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

What is a Fiduciary?

What is a Fiduciary?

“But to say that a man is a fiduciary only begins analysis; it gives direction to further inquiry. To whom is he a fiduciary? What obligations does he owe as a fiduciary? In what respects has he failed to discharge these obligations? And what are the consequences of his deviations from duty?”

– Justice Felix FrankfurterSEC v. Chenery Corp., 318 U.S. 80, 85-86 (1943)

A Realtor you work with to buy or sell a house in the traditional way is a Fiduciary. Fiduci – What? What is a fiduciary? Kathleen Elkins, writing for Make It, says, “It’s a key financial term. Yet most Americans cannot define it, and that puts them at risk.”

What is a Fiduciary?

Mark Walker at Reality Business News defines the subject: “Fiduciary means faithful servant. A person or organization who enters into a legal agreement to put another person’s needs first – even ahead of their own. In a real estate context, this means your Realtor is ethically required to put your best interests first. There are also a number of other responsibilities that come along with a fiduciary relationship:”

  1. Care – your real estate agent must give you their best at all times. They must use their skills, experience, and expertise to help further your best interests, even ahead of their own. The agent must use all of her skills to the best of her ability on behalf of the client.
  2. Loyalty at all times – The agent owes undivided loyalty to the client and puts the client’s interests above her own.no matter the situation, your Realtor must put your best interests ahead of everyone else’s during your transaction – that includes their own interests. There are no exceptions. Loyalty is a must.
  3. Confidentiality – Realtors are negotiation experts, and you hire them, in part, to handle the tricky business of negotiations for you. Any private info that you reveal to your agent should remain exactly that – private and confidential. This is especially so if it concerns info that could hamper your negotiating position.
  4. Full obedience – your real estate agent has an obligation to do as you wish –The agent must obey all lawful orders that the client gives her.
  5. Accounting – any funds that you entrust to your real estate agent must be accounted for properly. A Realtor must not, accidentally or otherwise, commingle your entrusted dollars with their business or personal funds.
  6. Total disclosure – remember; your agent has a responsibility to you. If they gain information that could assist you in negotiations, they have a duty to tell you, even if it makes their life more difficult. You are number one.

Being a Fiduciary

One final thought: a Realtor and a Registered Financial Advisor are fiduciaries, but not a stockbroker.

Those not working to the fiduciary standard are held only to a suitability standard, meaning their advice must be suitable for your financial situation.”

Stockbrokers are bound to a lower legal standard called suitability. The non-fiduciary stockbroker must only follow the standard of “suitability,” which does not require the client’s interests to be placed first; stockbrokers need only provide suitable advice given the client’s resources.

Good to know?

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?