Archive for the ‘Time to Move’ Category

Baby Boomers And Retirement: Are You Financially Prepared?

Friday, July 15th, 2016
Financially prepared

Baby Boomers, are you financially prepared for retirement?

America, we’re getting older. Those of us born in the USA after World War II and before 1964 (ages 51-69 respectively) are known as Baby Boomers, and we’re nearing retirement. Are you financially prepared to get to retirement or through retirement? Is there a chance you will not get through retirement because you are not financially prepared to do so? It’s time we evaluate our fiscal health.

None of us knows what’s ahead in the next 1, 5 or 10 years, but there are ways to prepare financially to get us through retirement One of the best ways to ensure your money lasts through retirement is to plan on living longer than you think. Here are four ways for Baby Boomers nearing retirement to get financially prepared:

Reduce Your Expenses and Get Rid of Debt

Take charge of your spending. It’s important to create a budget that you can stick to now in case your income is reduced in the future. If you’re looking for ways to save money, look here: Federal Citizen Information Center.

Stop Self-Investing and Go Pro Instead

The pros can manage a lot of money cheaply. How?

  • Their costs to do what they do for their clients are at an institutional rate
  • They get lower commissions on buying/selling securities
  • They can manage money for a lot less

Your 401(k) and IRA returns can amount to little because money managers charge you “retail” and overcharge for their commissions for sales, management and securities. Costs matter. Find the lowest-cost provider in every retirement fund you have, particularly in your 401(k) if you have one.

Add to Your Income-Producing Investments

Take a look at your investment portfolio. Is it heavy on the stock funds side?  If so, now is a good time to increase the percentage of bond funds or other investments that are designed to provide a steady income for you throughout retirement. Ask your financial pro to review your money distributions.

Invest in Real Estate to be Financially Prepared for Retirement

Real estate is a secure investment, and homeownership is critical in building wealth and financial security over time. That’s important when planning your retirement. Owning is much wiser than supporting a landlord financially and having no equity to show for any of it. Homes appreciate. Owning is far superior to renting because it locks in your housing costs and over time your real costs decline.

In the past two years, home prices have increased more per year than the 4% average that rents have risen per year. And homeownership comes with valuable tax benefits, too.

If you don’t own a home, consider purchasing one. Real estate is a secure investment to use as your retirement fund.

Take advantage of the great real estate market situation. Brooklyn real estate is at an all-time high, but we don’t know for how long.

The bottom line

Because we are nearing retirement, don’t take unnecessary risks to get financially prepared. There is no wisdom in trying to recover losses we may have incurred by putting even more money in risky investments. We will need that money for living expenses throughout our retirement.

But do get financially prepared for your retirement now. Save with purpose and intensity, invest wisely and take advantage of the benefits of today’s great real estate market.

Are you financially prepared for retirement? Are you ready to downsize and simplify as you near retirement? Is it time to sell your real estate investment? Get the help of real estate agent Charles D’Alessandro, your Brooklyn real estate agent with Fillmore Real Estate. Call (718) 253-9700 ext. 206 or email him at charles@brooklynrealestatesales.com today!

Is It Time To Relocate?

Tuesday, June 30th, 2015
Time to Relocate

Is it time to relocate in Brooklyn or someplace new?

Is it time to relocate? It’s always a good idea to think through a major change, such as a move, before listing your home. So, before you pack your dishes and silverware, consider all your options to find out if relocating is right for you.

Is it time to relocate, or are you just restless?

Does the “grass seem greener on the other side”? To find out if it is truly time to relocate, sit down and make a list. Write down everything you love about where you are currently living. List all that you would truly miss if you moved: the community group activities you are involved in, the neighbors who are always there for you when you need help with something, your church family, family who lives close by, someone who you take care of. If you really give it some thought, you’ll write down things that are unique to your city, town or community, too. Things such as the historic hotel that serves the best meals for miles around, your favorite bakery and coffee shop that are within walking distance, the deli that knows what you’ll order when you walk through their door, because you always order the same favorite items. These “little things” matter more than you may realize.

Is it time to relocate because you don’t like your present circumstances?

Think things will be better somewhere else? Choosing to relocate because your current job or a current relationship has “gone south” should be reconsidered. Look at whether or not relocating would honestly solve either situation. Instead of choosing to make a major change like relocating to fix a bad job or bad relationship, try finding a new job, starting a new career or spending time with a new group of people instead. This could solve your present circumstances without the major change of moving. It may not really be time to relocate.

If it is time to relocate, what will change?

It’s time to sit down and make another list. Make a list of the positive things that the new city, town or community has to offer. Compare these positive factors with the list of everything you love about where you are currently living. Will a larger or smaller city, safer neighborhood, better cost-of-living, better schools, better weather, more access to outdoor recreation, etc. be preferred over all that you enjoy where you currently live? Now, for the new city, town or community, rank, in order, what is most important to you and your family, number 1 being most important. Does where you are currently living already offer what is important to you and your family? Look at what your life might be like one, five or even ten years down the road with or without a move. Relocating is a major change that requires long-term planning. It requires commitment, energy, patience and financial resources as well. Your family might be better off physically, emotionally and spiritually if you delay moving. Perhaps you could better afford relocating in a few more years. There are a lot of changes that must be considered to determine whether or not it is time to relocate or stay put.

If it is time to relocate, can you afford to move?

Now it’s time to move from the emotional side of relocating to take a look at the practical side. If it is truly time to relocate, it is time to plan. It’s important to be financially prepared before a move.

  • Develop a budget. Look at how much you have to spend.
  • Research and estimate all moving costs. It’s best to overestimate to be better prepared.
    • Movers (Get estimates from at least two or three moving companies. Should you hire movers? Find helpful tips here: Hire or not )
    • Costs for driving to the new location
    • Costs for flying to your new location
    • Price of renters insurance, homeowners insurance and auto insurance
    • Property and income taxes
    • Price of housing
    • Monthly average for utilities and hook-up costs
    • Accommodation and storage costs (while shopping for your new house)
    • Food, taxis, parking and even the time it will take (while you look for a new place)
  • Know what help you’ll receive financially.
  • Don’t overspend. Play it safely and securely! Do not deviate from your budget!

Learning about relocation costs and the costs unique to the new area will help you when creating a budget. It is wise to plug these costs and figures into a spreadsheet so that you know where you stand financially. You’ll clearly see what you can afford and how to develop a budget to stick to. You’ll also see what you have to work with in order to keep from overspending. Budgets help you prioritize!

You can never be 100% sure whether or not it is time to relocate, but you can be confident about moving (or not) with good planning. Determine your priorities and create a spreadsheet. If you’re retired, you might want to take a 3 to 6-month vacation in the area you plan to move to in order to “give it a try.”  Visit Best Places to Reinvent Yourself for some helpful tips.

When you know the costs of relocating, you know the positives of the new place outweigh the positives of where you live currently and that you can afford to move, then it is time to relocate. It is the right time to call your Brooklyn real estate agent, Charles D’Alessandro with Fillmore Real Estate at (718) 253-9600 ext 206 or email charles@brooklynrealestatesales.com.

Related Links:

Now Is The Best Time To Buy Or Sell In Brooklyn, Or Is It?

5 Factors That Indicate It Could Be Time To Move

Sources:

http://moving.about.com/od/preparingforyourmove/u/plan_to_move.htm

http://moving.about.com/od/whymove/a/time_to_move.htm

http://moving.about.com/od/preparingforyourmove/a/best_time_move.htm

http://moving.about.com/od/shouldyoumove/a/should_you_move.htm

http://money.stackexchange.com/questions/11377/i-am-moving-to-a-new-city-how-do-i-plan-and-prepare-financially-for-the-mov

http://blog.doortodoor.com/the-importance-of-preparing-financially-for-a-move/

5 Factors That Indicate It Could Be Time To Move

Saturday, May 30th, 2015
Time to Move

Think about it. Right now could be the perfect time to move.

I’m just getting back from relocating my sons in South Carolina, and now I’m thinking, “Is it time to move?” “Should we simplify our life and downsize?” “Do we need to move up to a bigger home?” “Is now the best time to sell, or will it be best to sell 5 years from now?” “Will the market be as strong then as it is now?” “Is it time to leave Brooklyn?” We need to start planning now.

Choosing to move is a big decision. There are many lifestyle and financial factors to consider and a lot of questions that must be answered. Here are 5 factors that indicate it could be time to move:

  1. Life events call for a move up to bigger or different. Company comes to visit. Some stay overnight and there just isn’t anywhere for them to sleep. An aging parent is moving in with the family because they can no longer care for themselves. Closet space is limited or overcrowded. The little kids are now big kids outgrowing shared bedrooms or the number of children in your family has increased. You’ve started an at-home business and need a home office. The space in your home just isn’t cutting it any longer. It could be time to move.
  2. Your life has changed, really changed. Baby Boomers, folks in their 50’s and 60’s, are becoming empty nesters. This is an important life change that trumps all other reasons to sell a home. For example, our sons wanted to establish their independence but realized Brooklyn was too expensive for them to live on their own. They chose to move to South Carolina for affordability and even bought their first home. Now my wife and I need to move into a home that sync’s with our empty nesting phase in life, a home that makes more sense for our life as we now know it. Becoming an empty nester, taking on a new job that comes with a new, long commute, retiring, divorcing, etc., are all significant reasons that can indicate it is time to move.
  3. Home improvements and landscaping are being neglected. Is it time to move on to a maintenance-free way of life? Are home improvement projects and landscaping no longer fun to do? Do you have time to keep up with it all? Maybe you are now physically challenged and are unable to paint, plant or hammer. If your home and yard are being neglected, it will take more money to get it ready to sell. What’s even worse is you may have to ask for a lower price to get your home sold. It may be time to move to a smaller and simpler home that you can take good care of.
  4. The market is strong. The shortage of houses for sale in Brooklyn is an extra incentive causing bidding wars. The backlog of homebuyers means multiple offers on new listings and higher home prices are normal. The value of a house in Brooklyn is soaring! According to the National Association of REALTORS®, total existing-home sales increased 6.1 percent in March – the highest annual rate since September 2013. The number of houses for sale, however, has experienced a fairly small increase of 2 percent above a year ago making it a seller’s market!
  5. You have equity in your home. Many homeowners have positive equity in their homes and don’t realize it. According to Corelogic’s Third Quarter 2014 Equity Report, 94 percent of homes priced at $200,000 and above have positive equity. You may have lost your home’s equity during the housing crash, but don’t stay there in that mindset. Have your home reappraised to find out how much equity you have built in your home. Selling may be an option once again, and it could be time to move.

Now just might be the time to move, to finally put your home on the market. The seller’s market may switch to a buyer’s market as more homes come on the market. Mortgage rates are predicted to stay low because of geopolitical unrest and lower oil prices keeping inflation in check. Take a look at all your opportunities. How long will they be as good as they are today? Staying in Brooklyn doesn’t get easier, and market where you are considering moving to is getting stronger.

Call your Brooklyn real estate agent with Fillmore Real Estate, Charles D’Alessandro at (718) 253-9600 ext 206 or email charles@brooklynrealestatesales.com. If you’ve been wondering about moving for a while, now might be the best time to move.

Sources:

http://www.inman.com/2015/04/29/boomerang-buyers-recovery-or-bubble-repeat/

http://www.inman.com/2015/04/29/pending-home-sales-rise-for-3rd-straight-month/

http://www.marketwatch.com/story/five-real-estate-trends-to-watch-in-2015-2014-12-29