Yes, as we all know… just as with politics, and Tip O’neil’s famous mantra, “All politics is local”… so, with real estate, “All real estate is local”. Having said that, this article in US News and World Report is instructive in that it lays out 5 general factors that we can, and should, pay attention to when it comes to making any buying, selling, increasing or decreasing decisions relative to our own, local housing situation.
THE big key to be aware of in the housing arena in today’s economy is this: Housing will most likely FOLLOW, not lead, the rest of the economy out of a slump. It has become a ‘following indicator’, where in the past housing was a major part of economic expansion.
WASHINGTON (AP) — Many baby boomers say they’re likely to stay put in retirement amid a shaky economy. Those who hope to buy a new place are looking for a smaller home somewhere with a better climate that’s more affordable and close to family, a new poll finds.
The 77 million-strong generation born between 1946 and 1964 is increasingly worried about retirement and their finances in light of the economic crisis of the past three years. Just 9 percent say they are strongly convinced they’ll be able to live comfortably when they retire, according to the Associated Press-LifeGoesStrong.com poll. Read the rest of this informative article here…
Here is Rajiv’s insight into the Service Employees International Union (SEIU) proposed training legislation, in which he takes into account 2 articles published this week in the Seattle Times… one on the News pages, the other on the Opinion Page.
“I agree with the position that Initiative 1163 does not have the best interests of Washington seniors at heart. SEIU has only their membership in mind, not the impact on the broader community. The problem is not necessarily training, or lack thereof, for Washington’s healthcare workers. The problem is this we are in a time when Medicaid is reducing funding to adult family homes, home care agencies, nursing homes and others. Therefore, it is not rational at the same time to propose a bill that mandates these same groups take on additional expenditures, which they will be required to do if the initiative passes. I agree that the healthcare workers are underpaid and therefore create a perpetual revolving door environment, but now is NOT the time for people to be selfish and look out for their interests over the welfare of a senior community facing cutbacks in services. Finally, with the recent focus on the plight of victims in the long term care world in the newspapers and media, businesses are being forced to recognize the issue. A better solution at the current time would be to hold businesses responsible for poor performance, but not add costs to those providers who are already providing excellent care. I would urge people to defeat initiative 1163″.
On issues ranging from medical decisions to finances and housing, with their paternalistic caregivers families sometimes face a choice between honesty and, to their minds, warranted deception that’s in the older person’s interest. See the full New York Times story here…
Let’s say you are wading into the deep water. You think your parent or another older relative needs more care, perhaps at home, perhaps in an assisted living facility or other residence. You don’t know where to turn, which places or agencies to consider. Online, you find a referral service that can provide assistance — and it’s free. Sounds good…right? Maybe not. See the New York Times article here.
Since working longer is the key to a secure retirement for the vast majority of older Americans, it is useful to take a look at labor force trends for those under and over age 65 for the last century. This report from Boston College sheds light on a common question individuals and couples face when plotting out their final 1/3 of life “maps”.
We’re proud of our grandchildren as they grow in knowledge, such as when they first learn their ABC’s. Unfortunately, when we qualify for Medicare, we discover that we have to learn our ABCs all over again, and it’s a lot tougher this time around. See if you’ve got the framework straight for Medicare here…
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When “shallow” Seinfeld character, George Costanza, attempted to get out of his wedding engagement by asking his fiance for a prenuptial agreement she cracked up, laughing in his face. Why? Because George had no assets whatsoever to speak of. He’d have to figure out another ploy for remaining single.
But having no assets whatsoever is usually NOT the case for most seniors, male or female, who might be considering re-marriage. That’s why its smart to consider a prenuptial agreement.
Due to an increased life expectancy, a 50% or higher divorce rate in the United States, and an increasing amount of serial marriages, prenuptial agreements are now widely accepted. It is very important for seniors to approach the idea of a prenuptial agreement with an open mind. It must be emphasized that a prenuptial agreement does not mean that you are planning to get a divorce, or that you do not trust your new spouse. Instead, senior couples are now recognizing the seriousness of their upcoming commitment of marriage. Moreover, senior couples are now communicating their concerns for the future financial security of their other relatives, and are expressing their respect for the hard-earned assets and accomplishments of their future spouse. See the full whitepaper here…
The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms. Let’s put the 2011 federal budget into perspective:
- U.S. Income: $2,170,000,000,000
- Federal budget: $3,820,000,000,000
- New debt: $ 1,650,000,000,000
- National debt: $14,271,000,000,000
- Recent budget cut: $ 38,500,000,000 (about 1 percent of the budget)
It helps to think about these numbers in terms that we can relate to. Let’s remove eight zeros from these numbers and pretend this is the household budget for the fictitious Jones family.
- Total annual income for the Jones family: $21,700
- Amount of money the Jones family spent: $38,200
- Amount of new debt added to the credit card: $16,500
- Outstanding balance on the credit card: $142,710
- Amount cut from the budget: $385
So in effect last month Congress, or in this example the Jones family, sat down at the kitchen table and agreed to cut $385 from its annual budget. What family would cut $385 of spending in order to solve $16,500 in deficit spending?
It is a start, although hardly a solution.
Now after years of this, the Jones family has $142,710 of debt on its credit card (which is the equivalent of the national debt).
You would think the Jones family would recognize and address this situation, but it does not. Neither does Congress.
The root of the debt problem is that the voters typically do not send people to Congress to save money. They are sent there to bring home the bacon to their own home state.
To effect budget change, we need to change the job description and give Congress new marching orders. It is awfully hard (but not impossible) to reverse course and tell the government to stop borrowing money from our children and spending it now.
In effect, what we have is a reverse mortgage on the country. The problem is that the voters have become addicted to the money. Moreover, the American voters are still in the denial stage, and do not want to face the possibility of going into rehab.
By: DAVID THOMAS
Chief Executive Officer
Equitas Capital Advisors LLC
