The Steve Pomeranz Show: Recent Episodes
Steve Pomeranz
With Terry Story, a 31-year veteran with Keller Williams located in Boca Raton, FL For their final show together, Steve and Terry Story interviewed each other, sharing some of their personal lives with listeners. They began the conversation by recounting a funny story about how they first met. After being introduced by a mutual friend, […]
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It ain't easy out there to earn a decent amount of income from your investments. Industry veteran, Christine Benz of Morningstar and Steve discuss the best tips and advice to handle this low-yielding environment.
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On this final show, I talk about some of the most important themes I have covered over these many years. Themes that may help you become a little wealthier and a little more financially secure.
The post My Last Commentary To You All appeared first on Steve Pomeranz.
Since this is our last show, here's an interview about another show that was in its final season—my interview with Mad Men's co-producer Josh Weltman.
The post The Subtle Art Of Manipulation: Mad Men Style appeared first on Steve Pomeranz.
The coronavirus has caused the Congress to act swiftly. Here are the tax changes they enacted.
The post This May Be The Only Good Thing About Covid Tax Changes For 2020 appeared first on Steve Pomeranz.
The real estate industry is rapidly adjusting to the coronavirus by changing the way it does business.
The post How The Real Estate Industry Keeps Changing To Help You appeared first on Steve Pomeranz.
Sam Stovall, Managing Director of US Equity Strategy for CFRA Research, offered listeners his insights on the stock market’s likely future direction.
The post Strong Sectors In A Bear Market appeared first on Steve Pomeranz.
Last week I noted Warren's unusual behavior. But wait, there's more....
The post What’s Eating Warren Buffett? Part II appeared first on Steve Pomeranz.
Which States Are Being Hardest Hit By The Coronavirus? What's Eating Warren Buffett? And More
The post Episode 975 appeared first on Steve Pomeranz.
Jill Gonzalez, of Wallethub.com, offers information on how the coronavirus impact varies significantly from state to state.
The post Which States Are Being Hardest Hit By The Coronavirus? appeared first on Steve Pomeranz.
The COVID-19 pandemic has created “a new normal” for buying and selling real estate. Terry Story clues us in on the changes.
The post The New Normal For Buying A Home appeared first on Steve Pomeranz.
During the 2008 crisis, he was all over the airwaves touting a "Buy America" mantra. Today, however, he’s silent. This is what I found out.
The post What’s Eating Warren Buffett? appeared first on Steve Pomeranz.
With the ending of the show, Steve replays and reflects on his memorable 2005 interview with the great American entrepreneur.
The post Remembering Wayne Huizenga: An American All-Star Entrepreneur appeared first on Steve Pomeranz.
Intelligent investing in the style of Warren Buffett is the best way to understand the stock investments you make. Without it, you're probably just "throwing darts."
The post This May Be A Great Time To Buy, But Do You Really Know How To Invest Wisely? appeared first on Steve Pomeranz.
Learn how the coronavirus pandemic is continuing to impact the U.S. real estate market.
The post Learn How Covid-19 Is Changing The Way We Buy And Sell Real Estate appeared first on Steve Pomeranz.
Have you heard? The price of oil fell to less than zero. Will stock dividends follow suit?
The post The Search For High Dividends In A Low Earnings World appeared first on Steve Pomeranz.
It’s wise to work hard and save money, but is denied gratification always necessary? Discover how you can “live rich” without the money!
The post How To Live Richly – No Matter What appeared first on Steve Pomeranz.
The latest on vaccines, cures, and treatments for COVID-19.
The post Episode 973 appeared first on Steve Pomeranz.
The coronavirus pandemic, although creating problems, hasn’t stopped the real estate industry from getting the job done.
The post The Real Estate Industry Adapts To The Coronavirus appeared first on Steve Pomeranz.
Steve sits down with expert reporter, Meg Tirrell, to get specific answers about the drugs that are first in line to cure us.
The post CNBC’s Meg Tirrell Answers The Questions Everyone’s Asking About Cures And Treatments appeared first on Steve Pomeranz.
Did the hoarders create the shortage or was there something else at work? Steve gets to the bottom of the mystery.
The post Mystery Solved! The Toilet Paper Shortage—It’s Not What You Think appeared first on Steve Pomeranz.
You may be tempted to recoup your losses by latching on to the latest investment fad. Here's why it could be the worst idea you've ever considered.
The post Is It Time To Change Your Investment Strategy? appeared first on Steve Pomeranz.
The global communications we take for granted are the result of heroic and persistent attempts by determined entrepreneurs to lay the first transatlantic cable. Would we be as determined today?
The post The Laying Of The First Transatlantic Cable Was A Modern Miracle. Here Is The Awe-Inspiring Story appeared first on Steve Pomeranz.
You wrote in and Steve answered! Here's what you missed from the call.
The post Steve Answers Your Questions! appeared first on Steve Pomeranz.
It may seem like "a month of Sundays," but don’t panic! Yahoo Finance's Rick Newman offers a cool reality check about the true economic impact the coronavirus is likely to have.
The post The Real Economic Impact Of Covid-19 appeared first on Steve Pomeranz.
The real estate industry has its challenges, but new ways of getting it done are taking root.
The post The New Rules Of Real Estate In The Time Of Quarantine appeared first on Steve Pomeranz.
Last week, I held a special call-in show to focus on the new world we find ourselves in, from changes in the economy to challenges in the stock market. So, I thought I would give a recap of my discussion in case you didn’t have a chance to dial in.
The post Steve’s Special Call-In Update About What’s Next appeared first on Steve Pomeranz.
Nathan’s Famous: The hot dog that inspired a movie. In These Vagabond Shoes, Kevin Bacon travels across NYC on a quest for the iconic Coney Island frankfurter.
The post Nathan’s Famous Hotdog: The First 100 Years appeared first on Steve Pomeranz.
Although we are seeing signs of lower prices in today's housing market, Terry explains why this will not become the housing crisis of 2007-2008!
The post Housing In The Time Of Corona appeared first on Steve Pomeranz.
If you're retired, relief is coming your way. Help with taxes and cash flow—and your stocks too!
The post Retired? The Government Wants To Help You. appeared first on Steve Pomeranz.
Biomimicry is a new concept which studies nature and uses those designs to solve human problems. So how does that apply to investing?
The post Nature Knows How To Survive. Studying That Can Make Us Better Investors appeared first on Steve Pomeranz.
When things return to normal, you'll have to stand out even more. Learn how to break through, instead of blend.
The post Building Your Brand Will Be The New Priority. Here’s How To Do It Right. appeared first on Steve Pomeranz.
Just as in the time of Leonardo Da Vinci, the rich soil nourishes the seed. The age and place in which you live is what excites the mind to genius.
The post Can Genius Be Mass Produced? appeared first on Steve Pomeranz.
Get the lowdown on the state of the housing market as the country weathers the coronavirus crisis.
The post The Housing Market In the Coronavirus Crisis appeared first on Steve Pomeranz.
Thinking past Covid-19, we offer a wonderful interview from our archives. JJ Ramberg explains how to help your kids become successful entrepreneurs and give them "a leg up" in business & life.
The post The Fun Way To Help Your Kids Become Successful Entrepreneurs appeared first on Steve Pomeranz.
Real estate is a great way to diversify your investments provided you know how to calculate your real rate of return and are aware of the risks.
Don’t let the new tax law keep you from buying a new home. Instead, focus on low mortgage interest rates and the wonderful benefits of home ownership.
Don’t psych yourself out of the home-buying market due to unfounded fears. Instead, overcome those fears and become the proud owner of your first home.
Real estate prices have risen steadily over the past few years. Will the trend continue? See what’s in store for the 2018 housing market.
People base affordability on down-payment, mortgage, taxes, and closing costs. But there are actually more expenses you should budget for.
Real estate scams are on the rise as people get more comfortable transacting online, sight unseen. Protect yourself with these simple precautions.
Flipping homes can be profitable, but it takes a lot to get it right. You could end up with a renovated home that no one wants to buy.
Could You Or Someone You Know Be A Victim Of Elder Abuse?
Financial crimes against the elderly are nothing new. Older people are often targeted by children, close family, friends and scam artists of various types. The elderly are also vulnerable to cyber-crime, hacking and identity theft. I believe it is important to warn my readers to be aware of crimes against the elderly and convey this on to people who could be targets.
A recent article I came across in the New York Times by Constance Gustke also highlights this topic. The article starts out with a story about an 84-year old woman, Maria, who was approached by a longtime friend, a younger woman, for a $500,000 loan to help get her boyfriend back on his feet. Maria decided to help because she had lent money to her young friend before and it had always been paid back. Without consulting a professional, she handed over $500,000 but never got back a cent even after a judgment against the couple!
Maria now deeply regrets her generosity. At 84, she’s lost her retirement nest egg and lives near the edge of poverty. Thankfully, Maria owns her home and receives social security so she will do okay, but that’s no consolation!
Maria says she treated this “friend” like a daughter. The friend, meanwhile, won her trust and said she’d always be there to take care of Maria and then, sadly, sold her out.
It’s a sad story but what’s even sadder is that this is just the tip of the iceberg. Financial crimes against elders take a toll on their lives and pocketbooks every day. Sadly, trusted caregivers children, friends, and relatives are often most at fault.
Older adults are vulnerable targets because they usually have a fair amount of money saved, are typically debt-free, and own their homes. As old age takes a toll on memory loss, weakened motor skills such as the inability to sign checks after a stroke, dementia, Alzheimer’s, etc., the elderly become increasingly incapable of protecting themselves against fraud and unwittingly become easy targets from people they’d never suspect—trusted friends, close family members, or caretakers who get greedy, especially when they know the elder has no recourse to anyone else for day-to-day survival.
Elderly abuse has no boundaries. It happens across social strata. For example, in a recent high profile case, millionaire socialite Brooke Astor was robbed by her son, Anthony Marshall, of tens of millions of dollars after getting power of attorney over his mother’s assets.
In another prominent case, noted actor Mickey Rooney was robbed by his stepson, who began draining millions from Mickey’s accounts after purchasing hydrocodone without a prescription, receiving power of attorney, and leaving the actor broke and in debt when he died. In testimony to Congress before he died, Mr. Rooney urged abused elderly people to not stay silent as he had.
Track Your Money And Assets At All Times And Don’t Let your Caretaker Get The Feeling They Aren’t Being Watched
Financial crimes experts also urge victims to speak out and contact a lawyer or their state’s Adult Protective Services agency (Florida’s APS can be found here) if they are victims of abuse or deception. They say these crimes often start small with thefts of small items like jewelry and blank checks but increase over time if the smaller crimes go undetected. Track your money and assets at all times and don’t let your caretaker get the feeling they aren’t being watched.
Often, when financial abuse happens, the defrauded person is afraid of looking foolish or causing anguish in the family. Caregivers often threaten or emotionally blackmail elders aga...
First time home buyers often make rookie mistakes that cost them tens of thousands in extra home-related costs. Here's what you need to avoid.
Here are some quirky ways to follow rising costs according to the 12 Days of Christmas.
Unbelievably, as a percentage of median home income, monthly mortgages are more affordable today than 20 years ago. So it’s still a great time to buy!
Wondering what your options are if you're delayed or bumped off the plane? We've got your airline passenger rights listed here so you'll know what to do.
Americans are less willing to relocate for job opportunities than previous generations. Plus...what’s the best time to buy or sell a home?
Could the Republican’s tax code reform initiative drive away home buyers by eliminating the mortgage interest deduction?
With Donna Rosato, Senior Writer at Money Magazine
As we go through our adult lives, it’s important to periodically check our vital signs, for both our physical and our financial health. Donna Rosato, a senior writer at Money Magazine, has the protocol for making certain that all aspects of our money life are monitored on a regular basis, thereby ensuring that we’re prepared for retirement and also for encountering those inevitable emergency situations.
Donna’s recommended checklist for assessing your financial well-being includes keeping tabs on your credit score, regularly contributing to a retirement fund, and maintaining an emergency fund of about six months of living expenses for any of life’s surprises.
Even though people are feeling more secure in the job market today, it’s important to be constantly on guard for potential pitfalls. For example, if you live in an area that depends on the status of one industry and that industry fails, the value in your home could be affected. Donna advises assessing risks along the way and making financial adjustments accordingly.
Setting goals and making a plan to achieve those goals, whether it be a trip to Bali or paying off a student loan, is a strong motivator for success. And following through is much easier with either a visual reminder such as a picture board in your workspace or utilizing one of the tech tools which hit you with a reminder notice that it’s time to contribute to that fund—and then you have the pleasure of watching the dream incrementally materialize.
Disclosure: The opinions expressed are those of the interviewee and not necessarily United Capital. Interviewee is not a representative of United Capital. Investing involves risk and investors should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. Content provided is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered tax, legal, investment advice. Please contact your tax, legal, financial professional with questions about your specific needs and circumstances. The information contained herein was obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by United Capital.
Should adults add a child’s name to the house deed? Real Estate Round-Up has the answer, along with an update on the U.S. housing market.
William Green discusses his new book Great Minds of Investing which offers a human look at some of the most successful iconic investors in the world.
With Mohnish Pabrai, managing partner of Pabrai Investment Funds
Mohnish Pabrai, managing partner of Pabrai Investment Funds which he founded in 1999 is considered to be one of the world's greatest investors and is this week’s addition to our “Great Investor” series.
Back in ‘94, Mohnish was the owner of a successful IT firm when a window opened into a new world as he began hearing and reading about Warren Buffett. He was particularly intrigued by the concept of compounding which Einstein called the “eighth wonder of the world,” leading Buffett to know early on that he would one day be rich. From there, Mohnish began his own compounding engine that eventually took him into a new direction.
Wise words from Warren Buffett
Warren Buffett has often been quoted as saying, "I'm a better investor because I'm a businessman, and I'm a better businessman because I'm an investor.” Mohnish took the core principle of these words and approached every buy as though he were buying either a fraction of or an entire business. Still within what he calls his learning period of the mid-90s, he
held on to the basic ideas of buying a dollar for well under a dollar and looking for businesses that were within the circle of competence.
Looking for the upside without a downside.
After following such great investors as Warren Buffett, Charlie Munger and others—whose style of investing went against the grain of most mutual fund investors at that time who were rapidly turning over scores of stocks with little or no regard to the intrinsic value of the businesses themselves—Mohnish set up The Pabrai Fund in 1999.
Contrary to the perception of the entrepreneur as risk-taker, Mohnish is quick to point out that successful entrepreneurs try to minimize risk and instead look for a business with the lowest risk possible but one with the highest potential rewards—the upside without a downside. He mentions Richard Branson as someone who has managed spectacularly well in this regard.
Lunch with Warren
In 2007, Mohnish won the coveted bid to have lunch with Warren Buffett. During that time, Warren spoke about integrity and, in explaining his internal yardstick, he asked the question "Would you prefer to be the greatest lover in the world and known as the worst or would you prefer to be the worst lover in the world and known as the greatest?" He then said, "If you answer that correctly, then you have the right internal yardstick."
The takeaway for Mohnish from that lunch was that Warren highly values both integrity and truthfulness and looks to his inner scorecard in both investing and in life. Neither Charlie Munger nor Warren Buffett pays attention to what we would consider either acceptable investments or acceptable behavior.
Peter Kaufman’s 3 reasons for great success
Another of Mohnish’s influencers was Peter Kaufman who interviewed both Warren and his partner Charlie Munger for his book Poor Charlie's Almanack, in which he listed the three reasons for their success:
- The willingness to be patient. Charlie Munger said they don't make money when they buy stocks, and they don't make money when they sell stocks, they make money by being patient.
- Extreme decisiveness. You must be willing to bet heavily if the opportunity strikes.
- Having no concern about being different from the crowd.
The keys to great investing
Becoming rich takes certain deliberate actions, according to Mohnish. Point by point, he advises:
-begin early, in your 20s, if possible
-always spend less than you earn
-take advantage of tax laws, IRAs, 401ks, etc
-invest in low-cost index funds
“Dollar-cost average that in throughout your life,” he says, “and even at very modest annual returns and very modest savings rates,
With Tom Russo, Managing Partner at Gardner Russo & Gardner
As part of our new “Great Investor Series,” this is the first “What’s in Their Wallet” segment which can also be found here.
Tom Russo, Managing Partner at Gardner Russo & Gardner, a hedge fund managing about $12 billion, is a recognized thought leader in the field of investments and devotes time lecturing and educating students.
Before we see what makes Tom a Great Investor, it’s interesting to hear how it all began for him, how he segued from a career in law to the world of finance as a money manager when circumstance put one of the greatest investors of all time in his path.
An Early Lesson in Investing from Warren Buffett
As Tom tells it, he was a student in 1982 at Stanford’s Law and Business Graduate Program when his value investment professor brought in one of his colleagues to speak to the class—that colleague turned out to be Warren Buffett. Where most investment conversation at the time had to do with modern portfolio theory, Tom recalls that Mr. Buffett spoke about investing in businesses as though you owned them yourself with such “clarity of thought it that parted the way for me.”
At that defining moment of Tom Russo’s career, Buffett laid out a specific 3-prong analysis of what a business must possess to have a competitive advantage:
- The non-taxation of unrealized gains, which requires the investor to think about businesses that have the capacity to grow, the capacity to reinvest.
- Before investing, you must know that the management whom you trust to reinvest will do so with the owner’s, rather than the management’s, interest in mind.
- Invest in businesses that you like because you’ll probably work harder at it and be more intuitive about it.
By following these guidelines through the years, Tom says sixty-plus percent of his investments have been in family-controlled companies, which to some may imply more risk, but in actuality, there is less risk. In addition, the favored companies are ones that throw off a lot of cash, are able to reinvest that cash successfully, and have global aspirations and brand recognition.
A Great Investor Knows the Difference Between Instant and Slow Roasted Coffee
To be a smart investor, Tom advises, you must have a long-term view and the capacity to suffer; you want to invest in companies willing to make strategic moves in a timely mindful manner that will pay off in the future and one that is strong enough to keep corporate raiders from breaking through the door.
It took Nestle 15 years to perfect Nespresso, the most successful premium single-portioned coffee on the market. During those developmental years of laboring over the crema, the beans, the scent, the bar pressure, the technology, and the marketing strategy, imitators rushed to the scene, pushed their products out the door, and ultimately failed. Nestle, by taking its time, did it right and launched a classy, profitable member of the Nestle Group.
Stock Options: Who Wins And Who Loses?
One of the reasons Tom says he’s invested so highly in internationally based companies is that they use stock options as a far smaller portion of compensation than they do in the US, where the practice of dangling stock options has actually become a destructive practice.
Tom explains, “With options, you suddenly introduce into the equation of reinvestment an element called time. Your options are good for three years, and if the price isn't $72.50 three years from now, they're worthless. You as the manager have every ability to deliver the kind of results that Wall Street demands of you to get to $72.50 in three years, but that might actually come at the cost of the future because you may cut spending. You may make the numbers and ruin the value of the company in ...
Tax deferred investments don’t always make sense for several reasons. So, make sure you understand these 401(k) pros and cons before you dive in.
With Mohamed El-Erian, Bloomberg View columnist, Chief Economic Advisor at Allianz, and Chairman of President Obama's Global Development Council
Continuing with our new series called “The Great Investors, What's in their Wallet?” The Steve Pomeranz Show has invited Mohamed El-Erian, truly one of the world’s greatest investors, to speak about his personal investing practices.
Mohamed is a Bloomberg View columnist, Chief Economic Advisor at Allianz, and Chairman of President Obama's Global Development Council. In previous interviews, we discussed his latest book, The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse, and he helped us understand and get some needed perspective on the implications of the Brexit referendum, when that was a big issue a few months ago.
A Peek Inside Mohamed’s “Wallet”
It may be surprising to learn that about 30% of Mohamed’s portfolio is in cash at the moment, which Mohamed acknowledges doesn’t pay him anything at all. He states, in fact, that inflation actually eats away the real purchasing power of that cash. So how does he explain his present position?
“We have been living through a very unusual period in which financial assets have been decoupled from fundamentals and for good reason. Central banks have tried to use the financial markets as a way of promoting growth, by pushing up artificially asset prices, making people feel richer, and triggering the wealth effect, so they'd go out and spend more. Unfortunately, it hasn't worked.”
The Investor’s Defense
With central banks becoming less effective, the smart investor responds with resilience, in case prices do go down, and with agility to take advantage of overshoots. In that vein, Mohamed says he has reduced his holdings of public equities and public bonds and moved those mostly into cash, and, in addition, has invested more actively in venture capital.
Dealing With Artificially Low-Interest Rates
In spite of the fact that stock prices are high relative to other risky investments, stocks are still an attractive option, and the equity market, says Mohamed, “is the only place you can get any returns or expect to get any returns.” In order to keep the economy moving forward, the Fed has created artificially low-interest rates, which, in turn, has produced an over-priced market. At some point, prices will go down and having cash on hand enables an investor to buy at more attractive prices when that does occur.
The Illuminating Tale of the Dog and The Cat
To illustrate the concept of buying in an artificially priced market, Mohamed uses the example of the dog and the cat. There's a cat that you can buy at $30,000, but there's a dog that you can buy at $10,000. How would you choose? You might say, "I'd rather buy a dog at $10,000." But, says Mohamed, “that doesn't make it a good thing to do. It may be cheaper in relative terms, but in absolute terms it's expensive.” And not a smart investment.
Choosing Your Mistakes as an Investor
Considering the many unknowns in the marketplace, it’s not possible to cover all bases when deciding where and how to invest, and the choice of either staying out of the market and waiting it out or going “all-in” is crucial. So which way do you go? Mohamed says “it's better to recover from a mistake where you've left some money on the table than one in which you've lost quite a bit of money fast.”
Venturing into the Venture Side
With the stock market having done well this year, Mohamed has offset the 0% earnings on his cash by focusing on venture capital investments. Venture capital investments are early stage, risky investments in which you get an equity stake in the business with the hope that it will give b...
The 2008 housing and market crashes hit many US seniors especially hard. Here's how it's affected their retirement income.
Freddie Mac’s 2018 housing outlook predicts a rise in new home inventory, higher mortgage interest rates and a modest increase in home prices.
Home prices have risen every month for the past 66 months but tight inventory continues to hold down home sales.
Floridians appear to have stepped up home selling activity in the aftermath of Hurricane Irma. Plus, Terry’s advice on roof re-inspections after a storm.
Getting a start on a new house can also mean getting a fresh start with your stuff... Here's what needs to go.
Be careful buying flipped homes because "Home Flippers" have little motivation to take care of the property and may not be around if you have problems later.
Hurricane fatigue? Here's some disaster survival tips to help you get it together without too much headache.
Tax deferred investments don’t always make sense for several reasons. So, make sure you understand these 401(k) pros and cons before you dive in.
with Matthew Lundy, Esq., Certified Divorce Financial Analyst
Divorce Planning For Financial Assets
Matthew L. Lundy, Esq. and his law firm specialize in handling domestic relations and family law litigation, along with divorce planning and estate planning. He has developed a reputation as a young lawyer with a special skill for handling complicated legal issues. Matthew has been honored as a "Rising Star" by Super Lawyers Magazine and as an “Outstanding Young Lawyer” by the American Registry.
Matt has seen a lot of complicated cases and has helped many deserving individuals get their fair share in retirement. He also addresses the impact of market fluctuations on retirement portfolio values and how a couple should navigate the complicated finances behind divorce. He sheds light on the complexities behind retirement accounts and offers divorce planning tips on how to divide assets, especially equity assets, so you don’t lose out by having to sell when the market is down.
Qualified Domestic Relations Order
Matt explains his specialty, the QDRO, Qualified Domestic Relations Order, a term that often comes up in divorce cases and is a court order that essentially divides up retirement plans for couples going through divorce. Plans include any retirement and pension plans set up by employers in the private sector under the Employee Retirement Income Security Act of 1974 (ERISA).
He says QDROs are complicated because the subject matter of retirement plans is complicated and goes beyond what most people need to know on a routine basis, which is how much they have in the plan, what their holdings are, and a few trading basics. In divorce planning, you have to get very specific about what the plan is and how it's being divided. It’s not as easy as a simple “divide by two” because it depends on the securities you hold in the plan. He cites the example of a checking account, where the cash value does not fluctuate if you make no transactions, so that is easy to divide. But when a retirement account has a collection of fairly complicated investments—with stocks, options, mutual funds, ETFs, bonds, etc.—values can sharply change within a few hours/days/weeks, so categorizing what is in the portfolio and determining how and when it should be divided is no straightforward task.
Matt’s Most Interesting Case—The Uncompromising Pilot
On Steve’s prompting, Matt says he has seen a lot of interesting cases in divorce planning, in the context of family law.
One case that stands out for him, very early in his career, is where a woman with two children was getting a divorce. Her husband, who was a pilot and made about $200,000 a year, refused to pay any child support or alimony. He wouldn't even pay for the house and, basically, abandoned everybody and left.
The woman was in dire need of money when she came to Matt’s law firm. They went straight to court. On hearing her case, the judge was absolutely irate with her husband for his behavior and wanted to throw him in jail.
Rather than have him thrown in jail, however, Matt and his team asked the judge to enter a QDRO for the entire balance of the husband’s 401(k), which was about $400,000. The judge agreed and took the entire account and assigned it to her. Essentially, what they did was use the QDRO as an enforcement mechanism for a non-compliant person.
Everyone Loses With A Shrinking Portfolio
Next, Steve wonders what happens when a plan’s assets shrink over the course of a year, say from $500,000 to $250,000. Matt says those are classified as passive gains and losses based on market fluctuations, and each party eats half the loss.
Within the purview of divorce planning, he also talks about the more complicated division of Defined Benefit Plans that factor in issues such as the income stream, periodic cost-of-living adjustments,
Make sure you’re not a victim of home buyer’s remorse by thoroughly checking out the home and making sure the neighborhood fits your lifestyle and needs.
Fannie Mae’s new "student loan cash out refinance" program makes it easier to pay off student loans at a lower interest rate by refinancing your mortgage.
Afraid of discussing finances with your partner? Dive into “The New Love Deal” and have one less thing to stress about in your relationship.
See Cuba from the eyes of this Cuban-born US politician, as he takes us though the beginning stages of Cuba's great awakening.
Recent data showed a 7% drop in homes for sale at $100,000 or below, underscoring a worsening of America’s affordable housing crisis.
These techniques can lead to a more productive personal and professional life. The keys to success are as relevant for men as they are for women.
As Bob Dylan, our recent surprise Nobel Laureate once said famously in song… “the times, they are a ‘changin…”
There was a time when working hard and following the rules almost certainly guaranteed a comfortable retirement, but that very American dream of a blissful retirement, free of financial worries, appears to be slipping away for more and more Americans—especially those who “don’t follow the rules.” What I mean by “rules” are simple things such as making a budget, managing expenses, consistent saving and investing, keeping track of your job-related benefits, and sticking to your plan.
Do I have enough for retirement?
Today, most U.S. households are heading for a worse lifestyle and quality of life in retirement than they enjoyed while they were working, despite bringing in reasonably good paychecks, and this is—woefully—because they simply aren't saving enough. Thirty-five percent of U.S. households in their prime earning years have nothing saved in a retirement account and no access to a traditional pension plan, according to an analysis from the Federal Reserve.
Among households that do have some savings, the typical amount is $73,200; that's about 15 months of the median household's income. The only group that doesn't have to worry as much are the richest 10% of households that have more than $400,000 in retirement accounts.
The low retirement balances mean the majority of households — 52% — are at risk of having to cut their spending after entering retirement.
Make a retirement plan and stick to it.
So, for most Americans, things don’t look that good, which is a pity because I believe the American Dream is still achievable by most Americans if they just get their basic financial planning in order and stick diligently to a plan. And let me add this: I’ve been a practicing financial advisor for 35 years, and I have seen many success stories—people with modest jobs and paychecks who, through wise financial planning early in life, conservative spending, and prudent investing are now millionaires.
These people are positioned to live a rich lifestyle in retirement, free of financial worry, with tremendous peace of mind, and more money in the bank than they’ll likely need. That’s what I want for all of you. So, you see, the problem isn’t that Americans aren’t making enough; it’s that they aren’t being diligent enough about retirement savings.
In light of our recent election, let me also say that this retirement anxiety stretches across political affiliations. Nearly equal percentages of Democrats and Republicans say they're not managing their retirement planning very well.
It’s not your fault, but it is your responsibility.
That said, the fault doesn’t wholly lie with American taxpayers. This looming retirement crisis is also the result of a system that has increasingly put workers in charge of saving for and managing their own retirements. Data shows that the top 10% of U.S. households made more than $162,000 last year—up 6% from a decade earlier, after adjusting for inflation. For middle-class Americans, incomes have barely stayed ahead of inflation, while lower-income households are now making less than they were a decade ago.
With traditional pensions plans increasingly becoming extinct, it's even more important for Americans to save on their own. Meanwhile, Social Security—the last line of defense for many people’s retirement plans—is barely going to be enough to support you as you age.
To help close the gap, states are trying their own measures. California recently passed a law requiring employers to automatically enroll their workers in a state-run retirement savings program by deducting money from each paycheck, and early results are very encouraging.
The bottom line is the onus still lies on you. Making these important changes in your financial life can make all this retirement pain avoidable.
Recent data shows that millennials are buying homes at twice the rate than they are renting, suggesting they're finally getting into the housing market.
Terry and Steve discuss possible changes coming from the Trump administration on federal income tax deductions for property taxes.
We certainly don't want you to be caught out in the storm. Make sure your home is properly insured against natural disasters.
Moving is so stressful that it's actually having a negative impact on the housing market. Plus tips for buyers in a tight market and more...
Low-housing inventory is frustrating buyers and exacerbating market deadlock. Is this why rents are so high?
Wondering about the best credit cards for college students and college grads? Here are the best choices to make money and build credit.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Vero Beach Offers Quiet Retreat From Busy South Florida
On the docket today Steve and Terry chat about the quiet beach town of Vero Beach, Florida, issues that frequently come up with flipped properties, renter fees versus deposits, and landlord's insurance. Vero Beach is an hour north of South Florida, and in many ways offers a contrast to the hectic pace and crowds found in the urban/suburban sprawl that stretches from Palm Beach to Miami. Terry describes Vero Beach as a very nice community, quieter and more seasonal than South Florida, and one where nobody lives more than 15 minutes from the beach. Many people from Fort Lauderdale and surrounding towns drive up to Vero Beach for a leisurely retreat from the hustle and bustle.
One difference South Floridians will notice right away is how much easier it is to get access to the beach in Vero Beach. The area also contains abundant natural beauty, from the coast to the Indian River “lagoon” which the Intracoastal Waterway flows through. Other perks include numerous restaurants and golf courses. The luxury community of John Island offers a more exclusive experience for those who can afford it.
Vero Beach Real Estate And Median Home Prices
Terry notes that the median home price in Vero Beach is about $188,000 or $132 per square foot, quite a bit cheaper than what you'll find further south. There are many single-family homes listing in the 250-350 thousand range. New residential construction has picked up after a long period of inactivity. Like South Florida and other areas in and out of state, the Vero Beach area is no longer seeing foreclosures and short sales. Steve asks whether there's been growth in median home prices, and Terry confirms that prices are up in Vero Beach as in most of the state to the tune of around 10% annually for the last several years. The relatively low, affordable median home prices offer a clue as to how far they fell during the mortgage crisis. The long and slow recovery from a deep bottom may suggest there is more opportunity for price gains in Vero Beach than in other cities in South Florida.
Buyer Beware When It Comes To Purchasing A Flipped Home
The conversation turns to the hot real estate market and the resurgence of home flipping. Steve asks Terry to talk about some of the potential legal complications of buying a flipped property. She replies that it’s crucial to understand who the actual seller is—is it a bank or an investor, and do they have the legal title yet? This scenario usually follows from a foreclosure. Another murky situation can come up when a homeowner has passed away and left their home to an heir. Sometimes the heir doesn't have the title before they sell it to an investor or an investor buys such a property but then has to wait a certain period of time before they can legally re-sell it. This may mean that as a purchaser you have to have two appraisals done before you can buy it. The bottom line is that you need to know who the seller is and be on the lookout for issues that can arise with a flipped property.
Steve recalls that during the height of the housing bubble, he saw home flippers buying homes but not closing on them before re-selling them. Terry says she saw some of that back in the mid-2000s but hasn't seen it lately. What she has seen a lot of recently are investors buying a home, fixing it up, and then having to wait 120 days or so to sell it.
Flipping Houses Not As Easy As It Looks And Many Do It Badly
Flipping houses might seem exciting and easy and better than working a regular job, Steve comments, but the reality is that nothing easy is going to offer a path to success. It's imperative to treat property flipping like you would any business or investment,
Terry Story digs into the numbers along with what's hot and what's not in home features and styles. Turns out man caves are so last year.
Selling your home? These home improvement projects will add the most value to your property.
When's a good time to have the money talk with adult children? How should aging and health be factored into this discussion? Find out here.
Now that housing markets have become less affordable in 25% of the country, where can you go to still be able to afford the house of your dreams?
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Building Materials and Other Costs of Home Building Rise
Steve starts off today's segment with Terry Story by talking about reports which implore new home buyers to “Act Now before prices go up!” Terry says she just heard about these warnings recently and discovered that they are related to a 25% increase in the cost of building materials over the past year. It turns out that lumber is in short supply due to a breakdown in a trade agreement between the US and Canada. But that's not the only factor driving new home building costs up. There has also been a tightening in the labor market, which is pushing wages up for construction and trades workers. Moreover, developed lots are disappearing and the cost of land is going up in many locales. All of these forces are conspiring to make new home building significantly pricier.
Mortgage Rates Rising or Holding Steady?
Many potential home buyers are also anxious about mortgage rates, wondering whether their rise will perhaps put their dreams of home ownership out of reach. But Steve and Terry have good news on this front: they believe mortgage rates probably will not go up very much in the next couple years. Steve points out that it's difficult to predict where interest rates are going. The Federal Reserve manipulates the overnight Fed Funds rate to steer inflation, credit markets, and the economy, and in the last decade, they have been attempting to prop up markets and the economy by maintaining extremely low rates. The Fed Funds rate has risen by 0.25 points three times in the past year and a half, and the Fed itself has indicated it will hike target rates two more times by the same amount this year.
Mortgages are actually tied to the 10-year Treasury note, which fluctuates based on a number of factors, most importantly inflation expectations. Buyers will want a higher yield if they anticipate inflation, which eats away at that yield. Ten-year Treasury yields have not moved up despite the increase in the Fed Funds rate, thus neither have mortgage rates. Steve argues that, as a potential home buyer, instead of following the Fed Funds rate, what you want to watch out for as the economy heats up are signs of inflation in other areas besides housing prices. That will signal impending rises in 10-year note yields and mortgage rates. It helps put things into perspective to remember that it wasn't so long ago—in the 1990s—that mortgage rates were around 7%, and this was considered affordable, which it was, at least in comparison to the double-digit rates in the 1980s. Rates today have a very long way to go before brushing up against 7%, which would require far higher inflation than we've seen in decades.
Thin Credit? Get Back On the Grid!
People who pay for everything with cash are at a major disadvantage when it comes to getting a bank mortgage. Banks make loans based on borrowers' credit history, which helps determine lending rates and other parameters of those loans. Those folks who refuse to use credit cards or other forms of borrowed (and re-paid) money are essentially invisible—“off the grid” as Steve puts it—and therefore are unknown risks to lenders. Most banks will simply balk at offering mortgages to thin-credit individuals. The irony is that many thin-credit individuals are probably in healthy financial shape and may be more responsible than others when it comes to managing their money.
Breaking out from thin-credit status to become someone whom lenders would be willing to work with is not terribly complicated. Opening credit cards and establishing a track record of both using and paying them down can provide a fairly quick fix. But even folks who can't abide the idea of credit cards have options: paying and documenting rent and other bills and ...
With Eleanor Blayney, CFP Board, Directions for Women, Author – Women’s Worth
In her book, Women’s Worth, Eleanor Blayney, author and Consumer Advocate for the Certified Financial Planner Board of Standards, breaks through the traditionally male-dominated field of financial advice to offer insights and information that women can use to make the most of their financial lives. Her approach blends practical advice with easy-to-do exercises that will help you understand your beliefs about money, learn the fundamentals of financial planning, and gain confidence in your financial know-how.
Today, however, Eleanor joins The Steve Pomeranz Show to talk about trusts and their benefits. In introducing Eleanor, Steve notes that one of the most common questions he's asked is whether one should set up a trust for themselves and their assets. Is a trust the best way to pass money onto the next generation or to take care of the financial needs of someone else? Many of these same folks also have the impression that trusts are only relevant to the rich. Eleanor argues against this stereotype, asserting that trusts aren’t just for the wealthy, but may also be a good option for anyone with an “interesting” or perhaps “complicated” life. In situations where someone has been married more than once, for example, or has children with multiple partners, setting up a trust can ensure that more complicated directives on leaving specific assets to specific beneficiaries meeting specific conditions are followed.
Steve asks Eleanor whether there is a simple test to determine whether a trust would be suitable for you and your estate. Her answer is that it comes back to the complexity of how you want your estate parceled up and distributed. Time is also a factor as well, how long you want your assets to last, which we discuss at the end of this summary. The more you find yourself wanting to add more detailed instructions about particular assets and beneficiaries—placing “if, and, or but” conditions on gifts to be bequeathed—the more you should consider a trust as the most reliable way to accomplish that.
Trusts come in two main types: irrevocable and revocable. Revocable trusts can be updated and assets added, subtracted or redirected anytime the trustor wants. (The trustor is the person who set up the trust who is also often the trustee until incapacity or death.) These are sometimes called “living trusts.” Provisions are frequently included that provide directions for what to do when the trustor becomes incapacitated or is otherwise unable to perform these duties. In most cases, the trust becomes irrevocable after the death of the trustor/trustee, meaning that no new assets or instructions can be added to it.
One of the main reasons for setting up trusts is to avoid probate, a court-supervised process of interpreting a will and instructing an executor on how to distribute assets. Trusts are private affairs handled by trustees, while probate entails the creation of a public record. This can have various negative effects, including inciting family members or others to contest the will or merely to stir up jealousy and resentment.
There are other specialized types of trusts that can be set up to define the terms of passing on assets to certain individuals. One of these is a “special needs” trust. This is designed to provide long-term care for children that parents believe will not be able to achieve financial independence.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
What options does a current home owner have if they decide they really want to buy a new home but are unable to come up with the money before selling the home they're living in? Terry talks with Steve about the ins and outs of what is called a “sale contingency,” in which a prospective buyer enters into a contract with a home seller that gives them the option to buy the new home if they sell their existing home by a certain date. Terry admits that these deals are often difficult to negotiate because they can delay the sale and add another layer of complexity from the seller's perspective. Moreover, they always come at a cost to the buyer, who, of course, wants to minimize those costs.
A home sale contingency helps cash-poor buyers who have equity in their current homes get access to the liquidity (cash) they need—usually by selling their own home—to close a sale on a new home. The contingency essentially gives the buyer a little more time to sell his own home. To pull this off, the buyer must price his home more aggressively, accepting somewhat less than he wants to and somewhat less than the comps. The buyer's realtor must persuade the seller and his realtor that the buyer is serious about selling his own home within a short time frame and that the buyer's offer is not only competitive but a better deal than he'll get elsewhere. The seller is also likely to want a kick-out clause added to the contingency, which allows him to nullify the contingency contract in order to accept an offer from another prospective buyer.
One way that a buyer trying to sign a contingency contract can influence the seller is by offering a “rent back” option. This allows the home seller to stay in his own home for a month or two after closing the sale, at a very reasonable rent. For many sellers, this is an attractive add-on to a contingency contract, though for buyers it represents another cost on top of the skin already sacrificed to aggressively sell the current home low and buy the new one high.
Another option for contingency buyers is to take out a home equity line of credit (HELOC)—a kind of second mortgage—in order to raise the cash necessary to buy the new home. This approach is not without its risks and expenses either because a HELOC affects the buyer's debt-to-income ratio, and, therefore, the bank underwriting the new mortgage may back out. Buyers need to discuss the particulars of their situation with their mortgage underwriter before making an offer on the new home, whether a contingency sale or conventional one, to make sure they will still qualify for the new home loan. If all the key numbers are acceptable to the lender—income, credit, equity in the house—this may be a workable option.
Steve and Terry wind down their conversation this week by talking about a new trend in home building: using shipping containers to build homes. These containers are cheap to purchase as is (between $1000 and $4500) and are repurposed by being painted, decorated, or otherwise treated to supposedly look like “real homes.” These might be multiple modular “cans” or solo ones, and the process of turning them into homes is called “upcycling.” Some have been spotted on the market north of $200,000. This trend also has some commercial applications like the hip new restaurants in the arts district of Miami. Neither Steve nor Terry have seen one of these container homes or restaurants in person, and they're somewhat surprised that such a small space—typically around 1000 square feet per container—could have very broad appeal but remark that it fits in with the consumer interest in “tiny homes” of late.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Housing Prices Approaching A Top?
The housing market continued to gain strength in 2017, with the final quarter delivering the fastest sales pace all year. Home prices are still appreciating, notching their 58th consecutive month of year-over-year gains. That said, Terry notes that many buyers are expressing a tinge of trepidation about and resistance to current prices. The fiery stock market in recent months appears—paradoxically, at least, on one level—to be contributing to the modest increase in conservative sentiment, a raising of antennas that markets may be overbought. To some extent, this resistance to current home prices can be explained as a vestigial reaction dating back to the massive meltdowns in the housing and stock markets in 2008. Even though low housing inventory is playing into sellers' hands and adding pressure on buyers to make offers higher than they want to, prices are rising much more slowly than before. Steve avers that he sees only a very small risk of a systemic crisis on that magnitude. He also states that he thinks that a certain amount of skepticism about prices is a sign of a healthy market. It's natural and perhaps even helpful to a self-correcting market for prospective buyers to take an extra breath and say “I'm not comfortable at these price levels”. Healthy, rational markets should fluctuate and adjust to accommodate these kinds of dynamics.
Questions Before Buying A Home
Addressing the buyer side of the market equation in more detail, Steve asks Terry to walk listeners through a brief survey of the three questions that prospective buyers should ask themselves before searching for a home. The first question is “Why do you want to own a home?” Casting aside the common answer that a home is a good investment (it may or may not be), Terry presses her clients to be specific: Is it because you want a great place to raise your kids? A safe place for your family? Do you want a larger place? Do you want more control over your space than you have at a rental? The next question is “where”—not only in terms of location but as in “where are prices headed?” While acknowledging that mortgage rates are expected to rise moderately this year and that prices will probably rise somewhat as well, Steve believes that other factors like location deserve to be weighted more, and neither of these variables changes how much you can afford to pay for a home. Terry agrees, adding that spending less than you can afford is often a smart play, especially if that means owning a home that will also be more affordable for other buyers in the event that you decide to sell it.
Another key element in determining the criteria of your house search is how long you expect to live in the home. For people getting serious about a home purchase, that should ideally be between 5 and 10 years. Five years is typically the “break-even” point in a normal market where you can sell without losing much capital. If you expect to move again in less than 10 years, you should reconsider buying a home and seek out objective professional advice. Steve notes that this is similar to the advice he'd give to someone about to make a significant investment in the stock market: If your timeline is less that 10 years, the risk you're taking on will invariably be much higher.
Condo Association “Sleepover” Rules
Steve wraps up today's segment with another letter sent to the Sun Sentinel's Gary Singer, this time about a condo owner whose housing association has asked her to fill out a tenant application for her boyfriend who frequently overnights. The writer feels like it's “juvenile” for the HOA to ask this of her for her boyfriend's sleepovers. Terry says the only real resolution can be had by reading the HOA's govern...
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Pending Home Sales Down in January 2017
Pending home sales dipped in January 2017, a state of affairs which Terry attributes to an imbalance between supply and demand in the housing market. Housing inventory is less than 6 months, which means, in theory, that if no new sellers added their homes to this inventory, all available supply would be sold in less than 6 months. This sub-6 month supply, incidentally, is the criteria for using the term “seller’s market,” and that is certainly the case in locations across the country today. Terry notes that roughly only 20% of homes that hit the market sell in a timely fashion, and the remainder – which fail to sell because they're too expensive or unattractive for other reasons – constitute the bulk of the unsold inventory.
Low Housing Inventory: Seller’s Market
It might seem counter-intuitive that pending sales have fallen in a strong housing market, but, in part, the recent successes for home sellers have set the stage for the current hiccup by depleting the number of sought after homes for sale. Returning to the lower number of pending home sales, fewer sales contracts means fewer pending sales, and, eventually, fewer closings. Terry explains that the lack of sales contracts, in her experience, is a result of buyers not finding what they're looking for and both sellers and buyers not being able to get on the same page in terms of the value of a home. For many homes on the market, a holding pattern has set in, with both buyers and sellers adopting a wait and see attitude. This is the basic reason for the downturn in pending sales and completed sales.
She describes many sellers as “greedy and unrealistic.” Delving a bit deeper into buyer psychology, Terry observes that a large number of would-be buyers, having witnessed the mortgage meltdown of 2007, are afraid the housing market is overpriced and are wary of buying into a market top. They see housing prices as being near a peak and expect them to, at best, flat-line for the next few years. The number of homes in the locations, condition, and price range that buyers find attractive is very low. Finally, uncertainty in the political realm and euphoria in the stock market are also contributing to a sense that the economy may be overheating.
Luxury Market on Hold
As for the luxury market, asking prices have been coming down, sometimes significantly in dollar terms if not in percentage terms, but the number of buyers in that segment is not large enough to absorb the slack in the market. The strength of the US dollar is also weighing down on sales because it makes these properties more expensive for foreign cash buyers. Compound this factor with a frenzy of new building and thus competition in the high end of the market – at least in Florida – and buyers are taking more time to find more value and better deals.
First-Time Home Buyers Seek Median Priced Homes
The market has been healthier and sales have been strong in other price ranges, particularly in and below the median 300-400K realm, according to Terry. For sellers, asking prices still need to be tuned to the local market, with realistic discounts for needed upgrades and other liabilities. First-time home buyers are out in force and ready to bid on well-priced houses. Correctly priced homes in the median range are still being bid up beyond the asking price, a sign of on-going strength in this niche. Meanwhile, expensive waterfront properties and overpriced homes in the wrong locale are languishing and for all intents and purposes aren't receiving bids near listed prices.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Commercial Real Estate Technology
In this week's talk with veteran real estate agent Terry Story, we cover trends in commercial real estate technology and the technological forces driving change in commercial real estate, as well as questions about urban chickens and the hazards of pet ownership for home sellers and buyers. The conversation starts with an open-ended question from Steve about how new technology is impacting or leading new trends in commercial real estate. Terry affirms that technology is changing the game in a number of areas and begins an overview of these impacts by noting that many retailers are collecting data from their shopper’s cell phones when they are in the store. This data is used not only for marketing purposes but also to guide decision making about store locations and floor layouts. Retail brand apps that offer coupons and promotions have become an important marketing channel as well. Some apps customize offers based on consumer behavior in stores and online, and, on the back end, this data can again be used to inform future business decisions.
E-commerce Distribution Centers
Terry brings up another trend where technology is affecting commercial real estate—the location of eCommerce distribution centers. The phenomenal growth of online shopping has led to new challenges on the industrial side of retailer strategy, namely how to build distribution facilities in closer proximity to major markets and transportation infrastructure like rail, trucks, freights, etc. Until recently, large eCommerce companies built distribution hubs outside of urban areas, where land, labor, and access to transportation resources are cheaper. In an era of same or next day shipping, when speed of delivery is a key competitive benchmark, distribution needs to migrate closer to customers. This shift is affecting commercial real estate demand and prices in formerly under-utilized industrial areas.
Micro-unit Apartments
Terry's final example of technology-driven change is the emergence of so-called “micro-unit” apartments around 350-500 square feet. This trend is fueled by the high costs of urban living, and the apartments are generally priced for recent college grads, especially for those with expensive student loans. Many of these buildings are mixed use, with apartments situated above commercial property. While 350 square feet would feel claustrophobic to many, younger renters appear more willing to accept it as a tradeoff for living in hip urban areas.
Neighborhood Roosters
From today's grab bag of real estate questions, Steve picks a letter from someone living near a neighbor with a rooster. The poor guy seems to be on his last good nerve, what with the rooster starting his crowing before dawn. Steve asks Terry what this guy can do short of buying a gun to deal with the problem. Terry's first recommendation is to talk with the neighbor. If the neighbor is unsympathetic, check with the homeowners' association, if you have one. The association can lean on the rooster owner and will probably have the support of all the other neighbors as well. If you're not a member of an HOA, or if that fails to solve the problem, check in with the code enforcement division of your city. Most will have statutes against agricultural animals in urban or suburban areas, and if you bring a violation of these laws to their attention, they will force the rooster out of the neighborhood (or into a pot of soup, as the case may be). The last resort would be a lawsuit, but, of course, that's not ideal because of the cost, even when you know the law is on your side.
Pet Friendly Real Estate
Finally, Steve segues to a question about pets and pet owners and the apparent increase in the number of pet owners ...
Neuroscience Investigation of Irrational Exuberance and Market Crashes
I came across a rather interesting piece of research from Caltech. The paper has a rather long geeky title, “Irrational Exuberance and Neural Crash Warning Signals During Endogenous Experimental Market Bubbles”. It is about an experimental study to discover warning signs of irrational exuberance and a possible crash as market bubbles start to form. The paper’s findings have also been nicely condensed in laymen’s terms by Kimm Fesenmaier of Caltech. Warren Buffett's advice to “be fearful when others are greedy and be greedy when others are fearful” appears to have found a new foothold in this experiment's results.
In their experiments, Caltech’s researchers used neuroscience to study the brain activity and behavior of people trading in experimental markets where price bubbles were artificially simulated and internally or “endogenously” created. They hooked up electrodes to traders’ heads and watched brain activity and behavior as stock prices rose to levels that were well above fundamental value to see how these experimental traders reacted as prices rose, as stock price bubbles formed, and then burst.
BE FEARFUL WHEN OTHERS ARE GREEDY AND BE GREEDY ONLY WHEN OTHERS ARE FEARFUL
Market Trends and Brain Activity: Classifying Different Responses
On analyzing this experimental trading data, researchers found two distinct patterns of brain activity. One small fraction of participants got early warning signals from their brains that made them feel uncomfortable and urged them to sell even as share prices were rising. The other larger group got brain signals that made them behave greedily, buying aggressively as stock prices rose and even after they peaked.
Researchers found that the lucky few who received early warning signals and got out of the market early earned the most money while the larger group displayed what former Fed chairman Alan Greenspan called “irrational exuberance” and lost their shirts. Again, this pattern resonates with the well-known Warren Buffett advice about going against market currents during periods of fear and greed.
Do Market Bubbles Come from Internal or External Factors?
The researchers also saw a market bubble form without outside hype in the experiments; there were no television sets with talking heads hyping up their various views on the market, just experimental traders in a room reacting to rising stock prices. So, a bubble formed without any outside hype or misinformation, which was a bit of a surprise finding because general market wisdom mostly attributes bubbles to external hype or other external factors.
Trading Strategies and Impulses of Low, Medium, and High Earners
Researchers then conducted a subsequent experiment. They divided participants into three groups based on market earnings—low, medium, and high—and found that low earners tended to be momentum buyers who started buying as prices went up and kept buying even as prices tanked, apparently hoping to make money on a bounce back or trying to lower their average purchase price because they bought when shares were peaking.
Medium earners were those who played it safe, did not take too many risks, and neither made nor lost a lot of money. The high earners were traders who bought early and sold when stock prices were on the rise, above fundamental value, but well before they peaked.
These high-earning traders emotionally did something that was really hard to do: they sold their shares in a rising market because the region of the brain that deals with risk aversion sent out strong early warning signals to this small fraction of high earners.
Warren Buffett Advice on Fear & Greed Explains Trading Outcomes
The neurological experiment by Caltech’s researchers confirmed Warren Buffett’...
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Housing Market 2017 Cross Currents
This week's conversation with Coldwell Banker real estate agent Terry Story touches on a variety of cross-currents affecting the housing market, including rising prices, confusion among first-time buyers over minimum down payments, low inventory, and the possibility of stronger single family home building and the dynamics that stem from pricing homes above or at market levels.
While home sales grew and prices continued to rise last year, there are signs that demand might be topping out. By the end of 2016, only 55% of non-home owners believed that now was a good time to buy a home, down from 63% at the beginning of the year. With mortgage rates inching up, the perception of the market as too expensive may be gaining legs. This view contrasts indirectly with the fact that 90% of homeowners last year were confident that owning a home was a key part of the American dream. To what degree this confidence is rooted in the strong price appreciation accompanying this housing market recovery is up for speculation.
Housing Inventory
Delving further into this story, Terry reports that home prices and rents are up over 40% during the past 5 years, rapidly outpacing wage growth. The combination of high prices, high student loan debt, and limited supply of entry level houses on the market are conspiring to put a damper on first-time homebuyers. These dynamics, as well as the faster growth of rent prices, has steered builders towards apartments rather than standalone homes in recent months. Nevertheless, Story is optimistic that low inventories and the fact that rents and mortgages are nearing parity will start to galvanize new home building. An expanded supply of new homes should help correct the affordability problem to some degree and would be welcome for that reason. An interesting metric that Terry shares is that a greater than six-month supply of homes for sale indicates a buyer's market, while a less than six-month supply signals a seller's market. Terry's South Florida market is currently running at about a four-month supply, which is favorable to sellers.
One area of confusion among new homebuyers is the question of down payments. Many believe that they have to come up with 10% or 20% of the home's value and despair over being able to save enough to meet that number. Terry reminds those new home buyers that they may be able to purchase a home with as little as 3% down. With a lower down payment comes PMI (private mortgage insurance) and that adds to the total cost (but not the closing cost) of the mortgage.
How to Price a Home
Steve and Terry wrap up their conversation by looking at the effect that a home seller's asking price has on potential buyers and their bidding. Terry offers a simple hypothetical example of a homeowner with a home that they hope to sell in the $300-325K range. If they list the house for $300K—a price Terry describes as “right at where the market is”—they are likely to get a surge of interest from potential buyers and oftentimes a competitive bidding situation will arise, pushing the price up towards $325K or more. On the other hand, if the house is listed at $325,000—which is more aligned with where the market is heading—interested buyers should still show up, but there will be fewer offers and, in all likelihood, they will not bid the price up beyond its listing price. Having multiple offers is always a better situation for sellers as it affords them some leverage to ask for a bigger down payment or other concessions. Steve wonders whether there are pros and cons to listing a house at, say, $299,900 instead of $300K, and Terry replies that it absolutely does matter for one main reason: the way people search real estate websites,
With Annell Danczyk and Brian Lazorishak, Senior Portfolio Managers at Stack Financial Management
Picking Individual Stocks for Stock Market 2017
For the second part of their discussion, Steve turns to stock picking strategies and the research which support it. Having defined “valuation analysis” and “growth at a reasonable price” as two poles on the strategy continuum, for the purposes of argument, Steve asks Brian and Annell to elaborate on their approach. Annell admits to a bias towards “growth at a reasonable price” overvaluation, though she adds that “asset protection” remains a cornerstone as well. “Asset protection” is achieved by maintaining a “cash buffer” and shifting portfolio allocations to follow market cycles.
By way of a quick overview of “growth at a reasonable price”, Brian outlines an analytical lens which rates the competitive advantages, superior profitability, and financial strength of individual companies. Companies with intrinsic competitive advantages are more profitable in the long run and pass those profits on as dividend returns as well as capital appreciation. Brian views valuation—again, P/E, or stock price relative to earnings—as a kind of “built-in protection” against price declines. He nuances this observation to say that, in his approach, the idea is not to find the cheapest, most undervalued stocks so much as it is to pass on highly valued companies with less upside to their equity.
Index Funds and Asset Protection
Steve brings up the question of index funds, noting that while he often recommends them to clients, he also feels that investors won't find much reassurance that they own quality companies during a market downturn. Brian expands on this, asserting that a well thought out selection of individual stocks can preserve assets better in a market downturn. He agrees that index funds are widely and legitimately used by many private investors as well as fund managers, but qualifies this by arguing that, to some degree, a passive instrument like an index fund looks better during a bull market than it will over the course of multiple market cycles.
Finally, Steve wraps up the conversation by turning to interest rates and inflation. The Federal Reserve raised the Fed Fund rate by 0.25% at the end of 2016, and the yield on longer-term bonds moved up accordingly. Steve wonders whether the rate hikes, along with possibly large economic stimulus in the form of infrastructure programs launched by the new Administration, will add to inflationary pressures. Brian replies that he sees inflation largely under control for the moment but admits that pre-inflation factors like wage growth and a tighter job market could foreshadow more rapid inflation. He asserts that the Fed will feel pressed to “normalize” (increase) rates if they detect an increase in inflationary signals.
Annell and Brian will be speaking together at the MoneyShow Orlando on February 9th: Is a Bear Market Looming in 2017: Where to Watch and February 10th: The Worst & The Best: Where to Survive & Thrive in the Next Bear Market.
Steve will be speaking on February 10th: Myth Busting Your Way to Riches.
For more information on the MoneyShow Orlando and to register for free, click here.
Click here for Part I
With Greg McBride, Senior Vice President & Chief Financial Analyst for Bankrate.com
Mortgage Rates in 2017: Are they Heading Up, Down, or Flat?
Greg McBride, Chief Financial Analyst at Bankrate.com, returns to On the Money today to talk about mortgage rates, the federal funds rate, housing markets, and the economy, in general, and where they all might be headed in 2017. Naturally, Greg is an expert on these and other topics, and we're lucky to have him here to share his insights and expectations about the coming year.
Before turning towards a more forward-looking trends analysis (including Greg's forecast for mortgage rates in 2017), the conversation begins with a look at mortgage rates and the Federal Reserve's modest rate hike at the end of 2016. On December 14, 2016, the Fed raised the overnight “federal funds rates” by 0.25%—only the second of such raises in almost a decade. This immediately caused a larger spike in rates (aka yields) on 10-year notes and 30-year bonds and this, in turn, elevated mortgage rates, which are tied to these longer-term government securities. Building on a rise that started in October, mortgage rates ended the year up 0.75%, an increase that has inflicted a certain amount of pain on potential home buyers. Granted, this is coming on the heels of summer mortgage rates that scraped record lows of 3.5%, so, in that context, the Q4 rise is not a major game changer.
Trump and the Prospect of Fiscal Stimulus and Rate Inflation
Greg notes how unusual and, indeed, how unprecedented it was that every week in Q4 2016 saw mortgage rates creep up (except for one week when rates were flat). Steve wonders whether this might be evidence of an “inflection point”, where a short-term trend becomes a long one. It's important to recall that mortgage rates were rising before the fed funds rate change, and Greg attributes this, in large part, to an expectation that Trump will follow through on his promises to cut taxes and invest in large-scale infrastructure spending. These stimulus programs, if and when they arrive, should accelerate economic growth (GDP), add heat to an already strong stock market, and add to inflationary pressures. This would also shift bond prices lower and yields higher on all securities including mortgage rates in 2017.
Despite these rumblings of higher rates fueled by economic expansion, Greg is optimistic about where mortgage rates are headed in both the short term and for the remainder of 2017. He points out that rates have pulled back slightly already in 2017 (from 4.3% to 4.2%) and expects that they will bounce around the 4-4.5% range for the foreseeable future. He also expects that any correction in stock markets, international financial crisis, or a broader downturn in GDP will drive mortgage rates lower. This is because, reacting to fear of falling asset prices in a so-called “flight to safety”, investors will rotate out of stocks and other equities and into bonds. Higher demand for and thus prices of bonds leads to lower yields and hence cheaper mortgages. This could present an opportunity for buyers to lock in rates under 4% and for homeowners to refinance at those rates as well.
Treasuries Rates and Deeper Economic Trends
Greg makes a case that the bulk of the rise in interest rates has already been priced in by the market. Looking deeper into the dynamics shaping the economy, he sees volatility emerging from conflicting trends: on the one hand, fiscal stimulus, and, on the other, weak productivity gains and an aging population. The uneven growth that would result from these conflicts is not a departure from the pattern over the last few years. As we've seen in the recent past, Greg expects mortgage rates to continue bouncing up and down. In fact, he takes a step beyond this mixed forecast and states that he think...
Twelve Key Insights from the World’s Top Investors
On one of my recent commentaries, I spoke about Howard Marks and shared some of his investing philosophies with you. Today, I want to share 12 key insights that are commonly shared by the 99 top investors in the world… but, first, let me give you some background.
Magnus Angenfelt is a retired hedge fund manager and financial journalist from Sweden who recently wrote a book titled The World’s 99 Greatest Investors: The Secret of Success where he looks at the top 99 investors by highest absolute returns irrespective of investment style. His list includes some names you know and many you likely do not—folks such as John Bogle, Warren Buffett, Leon Cooperman, Ken Fisher, Mario Gabelli, Carl Icahn, Mark Mobius, Julian Robertson, George Soros, David Tepper, Paul Tudor Jones, Martin Zweig and more.
Angenfelt says, on average, his chosen 99 most successful investors outperformed the market by about 12 percentage points each year for 25 years.
Investing Styles of the Most Successful Investors
In the top 99, investing styles vary quite a bit, from value investing to speculating to quantitative-based trading. More than half of the top 99 are from the U.S. and, of these, about half are value investors who buy good stocks when they are marked down.
But his list does not include prominent investors such as bond king Bill Gross of PIMCO simply because, as Angenfelt puts it, neither Gross nor any other investor who solely focuses on bonds made the cut because their returns are simply too poor, relative to returns from equity investments.
The list has no women either, again, simply because no women made the cut purely on returns delivered over 25 years, even though the author names women investors such as Susan Byrne of Westwood Management who has produced better returns than many men—but not enough to qualify in the top 99.
12 Insights from World's Top Investors
And one of my favorite investment websites, gurufocus.com, compiled a list of Angenfelt’s top 12 insights that were common to almost all of the top 99. Here’s the list:
- Be true to yourself. As Guy Spier, a Harvard-trained investor puts it, “My job is to be Guy Spier. I’m not going to do a very good job of beingBill Ackmanor Warren Buffett, but I’m going to do a damned good job of being Guy Spier, better than anybody on the planet. Everybody’s path is unique and I think it’s really, really important that we find our own path.”
- Know your strengths and weaknesses.
- Consider the risks, not the potential. This one goes back to Howard Marks’ comment on playing “not loser’s tennis,” which is basically about focusing on the risks as much as on the rewards so you avoid loss-making investments.
- Be prepared to change your strategy if the market changes.This is a key insight—a lot changes over a 25-year period. Just compare, for example, our world and lifestyle in 1989 to where we are today in 2014. Much has changed. So, these top 99 investors have been very adept at keeping their ears to the ground for seismic changes in the investing landscape and making moves ahead of others to deliver outstanding returns… without being stuck to rigid strategies, while also being core to their fundamental approach to investing. For example, Buffett was a value investor then and is a value investor now, but he has changed his strategy over the years— from small businesses to big businesses, from domestic-only to international, and from non-tech to selectively tech. So, markets evolve and great investors evolve with them.
- Don’t invest on the basis of tips. I think many individual investors are fairly shallow on due diligence and tend to implicitly p...
With Terry Story, a 28-year veteran with Coldwell Banker located in Boca Raton, FL
Terry Story joins Steve for their weekly confab about the latest news from real estate markets. This week they discuss REX agreements, a new program pioneered by the FirstREX company which allows first-time home buyers to borrow money towards increasing their initial down payment, which in turn has a number of advantages for buyers, and, of course, some advantages for lenders as well. They then turn their attention to rising eviction rates in rental markets around the country. The trend is alarming to many, not least of which are renters in locales where home prices continue to gain altitude. Finally, Steve and Terry discuss the often thorny pre-closing negotiations between home sellers and buyers over required disclosures, inspections, and the cost of repairs.
REX Agreement Benefits for Buyers and Lenders
As Story explains, REX agreements have taken off in the past few years as a popular way for cash-strapped home buyers to borrow funds to apply towards the down payment portion of their mortgage. Instead of offering a 10% down payment, a REX agreement can provide the cash to increase that to 20% of the property's price. This enables buyers to sidestep the private mortgage insurance program they would otherwise have to pay into, a decent savings in and of itself. It also frees up funds for the buyer to make improvements to their new home, which naturally has knock-on benefits for other industries. The REX homebuyer program (underpinned by the REX agreement between homebuyer and lender) is not only offered without an accompanying annual interest rate, it also defers repayment of the loan until the house is re-sold. Instead of a steady stream of income, the down payment lender takes an equity position in the home which is only actualized when the home is sold again or when the mortgage is paid off. The lender, in most cases, does ultimately get paid more than their initial loan, but that amount floats depending on the home's appreciation. These REX agreements are not without risk for the lender, which is why they tend to get made more often in local markets which are seen to have good long-term prospects for stable and rising home prices.
Rising Rents + Stagnant Income = Higher Rental Evictions
Next, Terry turns our attention to an unsettling and broad-based trend in rental markets: spiking eviction rates. The fundamental problem is a disconnect between rising rents— up 66% since 2001—and a much more modest rise in income—around 35%. A huge number of renters are paying a greater portion of their income, the so-called “housing burden,” towards rent. This, of course, puts many renters in a more vulnerable position, perhaps one expensive medical bill or job loss away from eviction and possibly homelessness.
Disclosures, Inspections & Repairs
Wrapping up this week's conversation, Steve and Terry talk about negotiations between home sellers and buyers on issues related to required disclosures and inspections and necessary vs. optional repairs. Before closing a home sale, current owners are bound by law to disclose everything they know about problems with the property, a process that goes hand in hand with required inspections. Buyers are then given a window of time to propose repairs to any important issues identified in disclosures or inspections. Negotiations can break down and even threaten the closing if both sides are unable to come to an agreement on what needs to be fixed and how much it should cost. Terry mentions a novel approach to resolving some of these disagreements: Instead of renegotiating the sale price, or delaying the close until all repairs are complete and re-inspected, a seller might offer a “monetary credit” to the buyer, which the latter can then use to address repairs on their own time.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Living small in all the right places
Our resident real estate expert, Terry Story, is talking small this week—but in a very big way. It seems that there is a surge of interest in some parts of the country for tiny houses, houses no bigger than 200-300 square feet. In Spur, Texas, for example, an entire community of these Lilliputian homes is sprouting up, costing on average of from $30,00 to 50,000. Although these homes are illegal in some parts of the country, in Florida, Colorado, and Texas, people are going for them in large numbers.
The size and other relative characteristics, such as these mini-homes being either on wheels or on a solid foundation, may not seem so different from traditional mobile homes that have been around for a long time now. Whatever the comparison, these new super-down-sized dwellings which offer only three essentials— kitchen, bathroom, and bedroom—are an up and coming phenomenon in the housing industry. How better to simply your life than by going tiny?
Before you sell your home, know the lucky numbers.
Lucky 8s, unlucky 13, or is it number 4? When it comes to listing your home for sale, it turns out that the listing number is very important. We all know that the number 13 is perceived to be an unlucky number for most people here in the U.S., however, within Chinese communities, it’s the number 4 that’s to be avoided. So, if you have a home to sell in Los Angeles, San Francisco, or New York, you’d do well to list your home with as many 8s as possible since that’s the most desirable number within the Chinese culture. Realtor.com, who conducted the research for all this, conceded that in reality, of 178 homes that popped up on listings that included multiples 8s, they only sold about 0.32% faster than other listings.
The Trump Effect
Whether you are buying large or small and no matter what you consider your lucky number, the new administration that will soon be taking over our government will have the greatest impact on the housing market.
As far as the South Florida housing market is concerned, Terry believes that if Trump follows through on his promises
to lower taxes and to increase jobs and infrastructure the housing market will indeed benefit, even though rising interest rates will hamper the ability of some to make new housing purchases.
The anticipation of faster growth in 2017 is one of the reasons the stock market has been on the rise, but this growth could also bring on inflation which will have its own impact on housing across the country.
Terry reminds us that we’re pretty much at the peak of a 10-year cycle, one that rose up after the 2008 market downturn and, although it won’t happen overnight, the movement will slide downward at some point
Terry’s best advice: Buy what you can afford and don’t overreach just because we’re in a positive cycle because—we all know that what goes up does eventually come down.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story continually reminds us that the real estate market is sensitive to outside factors, so it’s smart to know which way the wind is blowing in 2017 if you plan to buy or sell.
How high will they go?
Yes, the Fed has been threatening to raise rates by the end of this year and now with a new administration moving into the White House, a slight rise has already happened. Don’t worry about huge hikes anytime soon, though; most experts say we’ll be dealing with rates of 4-4 1/2%, still well below 5%.
We’ve been seeing low inventory and high prices for a while now, and Terry predicts an increase in price of about 3.9% for 2017. With inflation running around 2%, that’s still a gain greater than inflation.
It’s baby boomers and millennials all over again.
And what does all this mean to buyers, especially first-time buyers? Realtor.com says they will face new hurdles navigating the qualification and buying process. Higher mortgage rates mean higher monthly payments, in most cases, putting a strain on the budget of millennials who are the largest demographic group out there looking for new homes. They could find themselves priced out of the market. A bright spot on the horizon, however, is the anticipation of a stronger economy which will bring higher wages and less job insecurity to this young group of buyers.
On the other side of the demographic spectrum, baby boomers, who make up 30% of prospective buyers for 2017, will be out there are wanting to downsize. So, we have these two distinct age groups dominating the market and pretty much determining trends for the next 10 years.
Go Midwest, Young Man and Woman
Especially for millennials, the real estate hotbed is in the midwestern cities, as illustrated in the chart below from Realtor.com for top housing markets. (A tip for business owners or entrepreneurs catering to this demographic.)
Top housing markets from Realtor.com:
1
Phoenix, AZ
2
Los Angeles, CA
3
Boston, MA
4
Sacramento, CA
5
Riverside, CA
6
Jacksonville, FL
7
Orlando, FL
8
Raleigh, NC
9
Tucson, AZ
10
Portland, OR
11
Durham, NC
12
Colorado Springs, CO
13
Jackson, MS
14
Detroit, MI
15
San Diego, CA
16
Salt Lake City,
With Guy Spier, Value Investor with Aquamarine Capital, Author of The Education of a Value Investor
With so many investors all trying to beat the market, what separates a truly Great Investor from the pack? One major factor is that Great Investors know the territory that lies underneath the map.
Guy Spier is a Zurich-based investor and author of a book on investing entitled The Education of a Value Investor and is well known for bidding $650,100 with Mohnish Pabrai for a charity lunch with Warren Buffett in June 2007.
Guy says his investment theory comes down to zigging when all the others are zagging—and the ability to know the difference between the “map” and the “territory”.
Between the map and the territory
The “map”, he goes on to explain, shows data and other salient information about a company that on the surface appears to reveal what’s going on inside but, in reality, is covering up the true value and obscuring future prospects.
A firm’s quarterly report, for example, is a “map” created by the accountants who estimate sales and future earnings based on a number of assumptions, when, in fact, those assumptions often don’t pan out. To assess the actual value, Guy stresses the importance of looking more deeply into the “territory” for the degree of divergence between the two. For example, is a company posting revenue figures at the point when clients have actually bought or are they throwing out higher numbers that reflect only the intention of clients to buy? A great investor looks for that divergence and moves when the divergence swings in his favor.
Warren Buffett defines the moat.
Just as in days of old when plundering knights were thwarted by an open drawbridge over the moat surrounding the castle, attractive investments are those that have defensible characteristics.
Warren Buffett has been quoted many times about the moat which he explains somewhat as a tall bridge across a sea mass, where the only way you can drive a car from point A to point B in that area is over that bridge. A company that is protected in such a way that renders it not vulnerable to competition is becoming even more rare in the digital age. Buffett’s partner, Charlie Munger, has stated, "Moats are getting attacked in many, many different areas and whole corporations that were set up for a certain kind of information and economic infrastructure are having to adjust. Some will adjust and some won't."
With moats breaking down, the challenge to the investor is even greater, says Guy, and “the problems we face as investors is that those moats have become even more highly valued because people realize they're even rarer than they were before.” Those fewer companies that are protected by a moat become even more valuable, leading in some cases to extreme over-evaluation.
What’s in Guy Spier’s wallet?
The question we always ask of our Great Investors is “what’s in your wallet?”
Guy answered that even though investing in smaller cap companies is a better place to be, it’s also more likely to be more vulnerable to changes in the competitive dynamics in a way that larger companies aren't. “This has created a bias in me to want to be and feel safer in larger companies. One of the best places to protect yourself from inflation,
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
When the numbers come in, sometimes it’s good to pay attention, especially if you’re in the real estate market and the numbers in question relate to record highs.
Terry Story, our resident 28-year agent with Coldwell Banker, reports a 25% gain in housing starts, which is new construction. “That's the highest level since August of 2007, according to the Commerce Department last week”, says Terry. “This is actually the greatest percentage gain since July of 1982.”
In September of ’82, the Federal Reserve started to reduce rates which precipitated the great bull market of the ‘80s and ‘90s, and here we are coming into 2017 back at record levels.
The highest surge in housing starts has been with single family homes, up 10.7% of all new construction. In the South Florida market, this hasn’t been so apparent because there’s not much land on which to build, unless you go farther north and west. What is evident in South Florida, however, are a lot of home renovations, high rises, and rental units.
Although it’s impossible to know if this upward trend will last, Terry points out that historically these construction projects do have a certain amount of economic endurance. Throughout the process, building materials, furniture, and appliances, for instance, are being bought—an example of trickle-down economics at work.
Again, for the South Florida market, inventory remains low and prices remain high, which has created a state of stagnation since many properties just aren’t saleable; there’s little to buy at fair market value.
Interest rates may have a big impact on all of this very soon as we’re seeing rates on 10-year treasury notes increase, foreshadowing an uptick in home mortgage rates and making it more expensive to buy a home. On the other side, it may also bring home prices back down to a more realistic range for buyers.
For the next several years, the movement in the real estate market will most likely be defined by two diverse age groups: older millennials (between 25 to 35 years old) will be out there buying new homes as baby boomers (the 65-year-old age group) will be selling and then downsizing into smaller homes or rentals.
So lots of movement ahead in the housing world, according to all the data.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
More of the same is not always a bad thing, and heading into 2017, Terry Story sees the real estate market continuing along its present path—low inventory and high prices. Both of these factors affect baby boomers and the elderly who hope to sell and downsize and young people with limited funds looking to move into their first home.
Many millennials have little option other than renting and, even though rental construction has been ramped up, the price of rentals still outpaces income which creates a conundrum if you’re trying to save for a down payment.
Rise and fall of interest rates
Terry says that if interest rates rise, which they are expected to do by the New Year, that increase coupled with housing and rental prices will create a double squeeze making monthly payments less affordable for most people.
Will self-correction save the day?
If prices remain too high, then buyers will stay away, houses won’t sell, inventory will rise, and prices will soften.
This is the way markets self-correct and is something to think about, says Terry. “It’s the interesting dynamics of working with a free marketplace. It's good. It's the way markets self-correct.”
Cycles generally run in 10-12 year segments, and we’re now coming up to the end of one and the beginning of another. Regardless of the political or economic climate, we should begin seeing shifts and adjustments in certain areas.
Terry says a demographic shift is already occurring with the urbanization of the suburbs. Since housing prices have pushed many people to settle for living in communities outside of the city centers, shopping malls, restaurants, movie theatres, and other establishments common to urban centers are opening up in these areas.
Commercial real estate vs online shopping
Online shopping with free shipping and easy returns signals some warnings for many brick and mortar businesses. A case in point is Macy’s who this year announced the closure of a sizable number of its stores due to online purchasing. Expect to see some changes in the types of businesses occupying space in major retail centers—health clubs and gyms and restaurants, for example.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
The climate today is definitely not as it was back in 2006-2008 when the real estate market was spiraling downward and many people found themselves underwater and couldn’t afford to live in their homes. One way out of that bad situation was to sell short of what was owed on the home and then appeal to the bank for loan forgiveness.
Terry says that, although not nearly as common as back in the days of the big bubble burst, short sales can still be found in the today’s real estate market.
A Bargain or a Big Mistake?
Before succumbing to the lure of the great buy, Terry has some words of caution:
- Keep your emotions at bay while you assess the true value of the home.
- A house in short sale has probably sat there for a while, probably not well-cared for.
- Check for signs of neglect such as termite damage, water damage, appliances in disrepair, etc.
- Do the home inspection immediately, even before waiting for the bank to accept the offer.
- Investigate all legal and insurance information in advance.
What looks at first sight like the deal of a lifetime could turn out to be a big mess, so proceed with caution.
Terry’s Real Estate Survivor Guide
Question #1: When does an offer become binding?
If a buyer submits a strong offer that, after a length of time, is rejected, does that potential buyer have any legal recourse?
Terry’s answer is an unequivocal no, unless there is some written contractual relationship between buyer and seller, and that stands even if the listing agent conveys unrealistic expectations to the buyer.
Question #2: When is a post-occupancy agreement needed?
If the seller remains in the house after closing (and is then technically a tenant) or the buyer moves in before closing, it’s advisable to have a written agreement to protect against damages incurred either by fault of the occupant or act of God. So always be sure to have insurance and liability issues in place.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
This week we begin Terry Story’s Real Estate Roundup with the question that’s always on the minds of home buyers and sellers:
Are home prices rising or falling?
Terry reports the findings of the S&P Core Logic Case-Shiller 20-City Index Report which shows a rise of 5.1% in August after a 5% gain in July.
The highest gains are in the Seattle and Denver areas, a reflection of better employment figures and rising pay rates. Other notable cities in this category are Dallas, Miami, and San Francisco.
Looking forward to 2017
Terry says that for the coming year, it’s predicted that the majority of home purchases will be those of first-time buyers. Low inventory and high prices are somewhat balanced out by easier mortgage qualification and low-interest rates which make ownership more affordable.
The most desired features trending for these primarily young first-time buyers are safe neighborhoods, more space, and larger yards, all of which indicates a heavier move to the suburbs.
The hottest times to buy that house
Typically, spring and summer are when realtors see the most activity owing to the school calendar, but this varies around the country and certainly in Florida with its steady influx of retirees.
How has the rental market changed in the past year?
Terry says the rental market is still hot and points to an average annual gross rental yield of 8.7% as the draw for investors. Of course, this doesn’t take into account costs of maintenance and upkeep and the risk of vacancy, all of which still allows room for profit.
With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Every week, expert realtor Terry Story keeps us up-to-date on the latest news in the real estate market.
Following up on last week’s topic about the returning trend of flipping houses, Terry emphasizes the importance of having the necessary insurance if you’re planning to engage in that practice.
Insurance checklist:
- Before renovating, notify your homeowner’s insurance company, since you’ll be increasing the value of the home.
- Confirm that the general contractor is licensed and bonded and carries workman’s compensation and liability insurance.
- Consider coverage for subcontractors because, if the contractor doesn’t pay them, it becomes your liability.
- Think about having builder’s risk insurance which covers building materials and equipment.
- Confirm that your contractor has completed operations insurance in case something goes awry after the job is done.
When to Drive By a Real Estate Listing
You see a house in the paper or online that you like but are unsure as to certain aspects of the neighborhood. What time of day is best to drive by? According to Terry, one of the best times is around 8 a.m. in the morning, during rush hour. From there, she recommends:
10 a.m. to check for construction, traffic, noise
3 p.m. when kids return home from school
5:30 p.m. again to check on traffic and commute time
after midnight for noise from trains or planes overhead
*Friday night for level of activity and safety concerns
Having the experience of a real estate expert on your side is probably the best investment you can make when considering to buy or sell your property.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
We Americans were all a bit closer back 100 years ago, at least in the physical sense. In 1910, the average household of 4.5 people occupied approximately 1300 square feet. Today, those averages are 2.5 people sharing 2400 square feet.
Averages aside, home sizes are heading in opposite directions depending on the part of the country. Orlando, San Antonio, and Nashville top the charts for the most square feet per house, whereas the smallest average homes are being built in Boston, San Francisco, and Miami. The obvious correlation here is the high density of population to smaller dwellings, perhaps most evident with New York City where the average home being built today is 11% smaller than in 1910.
But the rising popularity of the micro-home, perhaps best characterized by IKEA’s 200 square feet version, can be attributed not only to a dearth of land in certain areas but to cost. Terry tells us she recently went inside one of these tiny houses in Maine, “a tiny house on a property, and the shower was actually outdoors, but it was teeny, and two people were living in it. It was like, the bed was above the kitchen. The place was immaculate, and this person told me he feels very comfortable living in there.”
Terry also reports a return to the trend of flipping houses made popular back before the recession of 2008. But this time around, partly because banks are lending money a bit more freely, this practice is doable for the smaller operator who can buy an investment home of $200,000 or under, perhaps fix it up, and then flip it for a profit.
Terry’s cautionary note for anyone considering a foray into flipping is to remember “you always have to have an end user. When you're in the flipping business, you're taking a house, making it nice, and then reselling it. So as long as you have an end user still buying these properties, and the people buying, the end users, are people that want to live there.”
To return to an old theme—but one of interest if you’re buying or selling a home—home prices climbed in July an average of 5%, according to the Case-Shiller report and, again, it’s because of limited inventory. But, as always, there are geographic differences with some places in the double digits and others only from 1 to 5%.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
It might seem like you need a divining rod to predict the way the real estate market will go at any point in time, but, from all her years of experience, Terry Story usually can foresee the future highs and lows all by herself.
Citing some information from the fall 2016 Housing and Mortgage Market Review published by Arch Mortgage Insurance Company, Terry says the likelihood of home prices declining over the next year or so is very low. Speaking specifically of the South Florida market, although prices are still rising and inventory is relatively flat, the housing market is in a period of stabilization. Since there is a need here for more inventory, the risk of declining seems to be minimal.
In those parts of the country affected by the coal, oil, and natural gas industries, those areas which are economically sensitive, Terry says there is evidence of some softness in housing prices.
One thing to remember is that because many people coming out of the last recession who received loan modifications that have now reached their time limits, you may see a bit of an increase in short sales if those individuals haven’t
been able to build up enough equity in their homes to be able to sell.
Terry interjects that of all the best areas for real estate investors to invest, Florida again dominates the top 25 list. These are the places with the largest year-over-year rental rate increase.
A recent and frequent topic of discussion among realtors and their clients has been the idea of multiple offers coming in for a single property. Terry offers some useful tips for negotiating these multiple offers:
- Offer an increased amount of earnest money upfront.
- Send the offer with a bank statement or such verifying you actually have the funds.
- Give the seller some flexibility moving out, perhaps allowing them to remain in the house after closing.
- Don’t include contingencies like the sale of your own property.
- Don’t ask for home warranties and termite bonds.
- Don’t demand the seller pay part of your closing costs.
As an agent, Terry says, “you're not allowed to discuss motivation, unless the seller allows you to do so. Getting that kind of information may be difficult. It'd be great if you have it, but that's all part of the negotiating.”
That being said, a good real estate agent can make the negotiations much easier. After all, experience counts.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story has been talking for months now about the lack of inventory driving up prices in the real estate market and generally making it increasingly more difficult for buyers to find what they can afford. Because location is sometimes everything, Terry explains that there are geographical exceptions. Trulia, the online resource for real estate listings, cites six metro areas currently recording annual increases in inventory: Fort Myers, Miami, and Sarasota, Florida; Las Vegas, Nevada; Fresco, California; and Oklahoma. Interestingly, these are also the areas having had the biggest declines in the market crash of 2006.
Narrowing the discussion down to the South Florida market, Terry shows a bit of a recent decline in inventory causing a rise in prices and resulting in an average of 75 days for a home to sell. Most of the new housing construction, she said, is not taking place in her particular area, but more to the north and west of it.
Perhaps an indication of an overall confidence in the economy is at the root of the increase in real estate investments Terry sees going on. As opposed to what might be the more profitable venture of investing in stocks and bonds or even gold, many people like the sense of owning something they can feel and touch, the bricks and mortar sense of things. A note of caution with a real estate investment, however, is the difficulty of liquidating quickly if need be.
The question posed for this week’s segment we call “Ask A Real Estate Pro” is, “Can a home owner's association charge owners extra for gate control access?”
Terry answers, “Absolutely. They can pretty much charge for anything that they want. You see this all the time.” And owners should be aware that if they don’t possess a copy of the HOA documents for the buyer, they may be charged for a new set, including application fees, by the home owner’s association.
It’s wise to know the rules before going into negotiations of any kind and, before venturing into the real estate market, a qualified realtor is your best ally.
With Holden Lewis, Senior Mortgage Analyst and Senior Editor at bankrate.com
The conventional wisdom regarding home mortgages is that the 15-year is better than the 30-year plan in the long run. After 15 years, you’ll own your home free and clear, a basic tenet of the American dream, and you’ve paid fewer fees and a lower interest rate.
Holden Lewis, Senior Editor at bankrate.com and a senior mortgage analyst, recently wrote an article focused on the drawbacks of taking out a 15-year mortgage, why people typically opt for them as opposed to a 30-year mortgage, and why they often refinance at some point into that 15-year period.
On the surface, it appears that the main drawback of the 15-year mortgage is a higher monthly payment. Holden says that part of the appeal is the emotional satisfaction that comes with knowing you can have your home paid off in a shorter period of time and, that when that day comes, no matter what happens, your safety net, your security zone, is that home.
But a deeper analysis reveals that having a 30-year mortgage actually gives you more flexibility and security in hard times. As Holden explains it, “Let's say the car needs a big repair and someone is hospitalized. All of a sudden, you’ve got all these huge bills. If you have a 30-year loan with that smaller monthly payment than a 15-year loan, then you just have more room to pay all of your bills, including your mortgage.” You’d be better prepared for any of life’s unexpected events.
He advises taking out a 30-year loan and paying extra on that mortgage each month as long as you can. Assuming there is no financial crisis along the way, you have the potential to have the same benefits of a 15-year loan with less interest paid and full home ownership in less time.
With a 30-year loan, you also have the option to refinance into either a 15-year loan or into another 30-year loan with a lower interest rate. “If you refinance into another 30-year loan under the scenario I have,” says Holden, “if you pay an extra $530.00 a month on this $200,000.00 mortgage, you'll end up paying it off in 15 years, but if you get a 15-year loan, it's $73.00 less than that $530.00 extra.” You get a break on the interest rate with a 15-year and, again assuming a $200,000 loan amount, you would be ahead $73 a month, an amount you can use for savings.
Paying less on that monthly mortgage offers the possibility to set aside an amount to invest in, perhaps, a basket of common stocks such as the S&P 500, which over a 10 or 20-year period, statistics show would have a higher rate of return than investing in your home.
In addition, cautions Holden, “…it would be utter madness to be paying off your mortgage in 15 years when you're carrying a balance on a credit card that has an interest rate of 12% or 18%.” So before you go for a mortgage, know all the facts and determine what’s in your best interest.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story always knows which way the wind is blowing in the real estate market and now, she reports, home prices are taking a turn after years of rapidly accelerating price gains.
The Case-Schiller Report shows home values still soaring in the northwest, but slowing down in other parts of the country because of a dwindling supply of inventory.
Prices can only go up so high since they have to keep up with incomes. If prices rise past the ability of those who buy these homes to afford them, they can get stretched which we saw back in the bubble of '05. High home prices and low inventory are driving more people toward renting instead of buying.
Another problem Terry notices is that many lower-end buyers can’t find what they thought they could get for the money and so they become discouraged. Oftentimes, then, they’ll settle for a desired neighborhood and end up buying a house that needs fixing or renovating, which enables them to make it more like a new home, one closer to the original dream.
There is help with financing out there, Terry says. The FHA offers a 203K plan and, in Florida, this can get you a mortgage up to 340,000 which includes money for repairs, which often solves a problem especially for young first time home buyers who don’t have the extra 20 to 30 thousand dollars for improvements.
Fannie Mae also has a program called Home Style Renovation that lets you mortgage up to $417,000, but repairs can’t exceed 50% of the value after appraisal.
Terry has advice for how to prep your home for sale: Clean, clean, clean, she urges, and purge of your home of knick-knacks, family photos, and all other clutter. Make it as much like a model home as possible by de-personalizing the space and fixing items that are in visible need of repair. As a final note, she says to make your environment look and smell good—so deodorize, spruce up the landscaping, add fresh mulch and flowers, and present a clean and orderly garage.
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Steve Pomeranz: It's time for Real Estate Roundup. This is time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: After years and years of home price gains and almost at an accelerating pace, I think the tide is turning a little bit. Tell us about home prices these days.
Terry Story: You know, Steve, according to the Case-Schiller Report, they do analyze the 20-city home price index, there's a little bit of a slow down. What we're looking at, home values are still soaring in the northwest. That place is on fire, but we're starting to see slow downs nationwide. Prices are increasing, but slowing down. However, they're still increasing more than buyer’s incomes. What's happening is we're now getting into a dwindling supply of homes available. That's just changing the dynamics a little bit. For example, homes in the northwest, they climbed at a double-digit pace; we're looking at 12%. Cities in the Midwest, that was kind of a mixed bag. The southern areas, we saw stronger price gains like Dallas, Atlanta, Tampa area, and then the index plunged. The index did plunge after the housing burst in 2006. It actually plummeted by more than a third before the prices started to rise again back in March of 2016. We're starting to see overall just a slow down in the price gains which is no surprise because there's a ceiling. You can only go up so high. People's incomes have to be able to keep up with this.
Steve Pomeranz: Yeah, I mean, trees don't grow to the sky.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Buying a new home is one of the most exciting events in a person’s life, but it also can be one of the most frustrating. Instead of going into a state of high anxiety, consider allowing a professional real estate agent to guide you through the process from start to finish.
Even though the economy is good and interest rates are low right now, the real estate market is in constant flux. With her 27 years in the business, Terry Story has learned how to ride through the changes and negotiate the best deal for her clients.
Terry says that prices are higher across the board right now because of low inventory, so it’s important to know how to position yourself to get the best house for the money. At the beginning of the search process, Terry advises prospective buyers to have realistic expectations, to not go in looking for the elusive perfect house, but to expect to make some compromises and to stay focused on those points most essential to you, like being in the right school district.
Your qualified agent can also be your best source of information when it comes to qualifying for a mortgage. No longer is a 20% down payment a requirement; it can be as low as 3%, and if you’re a veteran, 100% financing could be possible.
Many people today are purchasing homes governed by a mandatory homeowner’s association. It’s critical for the buyer to have a copy of the HOA documents before signing the contract since there may be some restrictions or rules that are unacceptable and may be cause for not purchasing in that particular neighborhood. It’s the buyer’s responsibility to ask for these documents in advance, and a good real estate agent will make sure that happens.
A complicated situation could occur if the unthinkable happens and the buyer dies prior to the closing. Terry says she recently experienced such a predicament where one of the spouses passed away and the surviving spouse didn’t want to go through with the transaction. A real estate attorney was called in at her suggestion which then resulted in a reasonable resolution for all.
So since your realtor can be your greatest advocate all through the home buying process, finding that person you can work with is your best first step toward a happy conclusion.
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Steve Pomeranz: It's time for real estate roundup. This is the time every single week we get together with noted real estate agent, Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: So, Terry, the economy is improving, interest rates are low, and many consumers now find themselves in a position financially to become a first time homeowner. However, there are some frustrations that people are experiencing right now. Let's talk about them. What's one of the first frustrations that a new time home buyer might encounter?
Terry Story: Sure, well, first of all, don't get discouraged. The first thing that I find is they can't figure out the home buying process, and that's what realtors are for. Really if you're a first time home buyer, don't try to do this on your own. Get yourself associated with a good realtor who's familiar with the area that you're looking for. It can be a very frustrating process, but if you have a professional guiding you, it'll make this process so much easier.
Steve Pomeranz: It's like anything else that you attempt to do. There's complications to it. There's details that…we don't really do this for a living, so, therefore, you can read all the articles you want or maybe even a book or two and that's just wonder...
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story always reminds us that all real estate is local and so even when talking about high-end housing, the luxury market, it’s no different.
Since February 7, the number of luxury homes for sale in our area (those priced between 1 to 2 million) jumped from 7 to 18, that’s over 100 % increase, but there has been only one sale during that period. So clearly there’s a stall at that level.
The median price here in South Florida is in the $500,000 range, which is over double the median price nationwide. This is the range of the move-up buyer, the executive type buyer, the relocation buyer, and these homes were moving up until late 2015. Then sellers began to hear that the market was going up 3 to 4%, and they then began to price their homes accordingly, causing another stall at this level. Terry thinks the buyers are actually there, but they're just waiting for the sellers to become more realistic with their pricing so inventory can start moving again. The irony here is that interest rates are lower today than back at the beginning of the year, and the market and the economy, in general, are doing well.
The main reason people are listing their homes right now is that they’re looking for larger or nicer homes—they’re moving up the ladder, as it were. These move-up buyers, says Terry, account for about 40% and then those relocating to other areas comes in at about 24%.
The remaining percentage can be attributed to retirement, change in marital status from death or divorce, and then those wanting to move to a better school district, which is always a factor.
We live in a mobile society in stark contrast to say 40 or 50 years ago when homes were, if not forever, at least, for most of one’s adult lifetime. Many of us move many times throughout our lives and that’s what makes the real estate world go round and round.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent, Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The markets ebb, and the markets flow, and there are low priced and medium priced homes, but today I want to talk about what the luxury priced market is doing. It's not so healthy, is it?
Terry Story: You know, I mean everything is local. You have to look in your own local marketplace. What we've seen, Steve, since late 2015, there's been severe inventory woes. You can see this in Manhattan, West Village, or Beverly Hills in Los Angeles, where actually it's more of high levels of inventory. It's that old story, supply and demand. The inventory levels are rising, and when inventory rises, prices fall.
I can relate that to my own marketplace. I did a study the other day in an area that I sell a lot of. Interestingly enough, I noticed that the inventory since February was seven luxury homes for sale, non-waterfront homes, and that to today's date jumped up to 18. That's over a 100% increase in inventory. Interestingly enough, during that, however, many months, February through August, there's only been one sale. You've got to say to yourself, "All right, what's going on here?"
Steve Pomeranz: What are the general prices of these homes you're talking about?
Terry Story: This study that I did were homes priced from a million to two million. Our median market price, in this area, is in the 500 range. This is more than double the median priced homes. This is your typical move-up buyer, your executive type buyer, relocating buyers,
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Things can get a bit bumpy in the real estate world and, according to Terry Story, this is one of those times. Existing home sales have slowed down, inventory is low in many parts of the country, and prices are generally too high for most buyers.
A regional breakdown of the decline in home sales shows the Northeast down by 13%, the Midwest by about 5%, the South by about 2%—however, the West rose about 2.5%.
Terry’s remedy for this stalled market is for sellers to price more realistically, perhaps by utilizing the new pricing strategy she’s talked about recently; that is, by pricing the home just at or slightly under the desired price, thereby creating a bidding war among buyers which ideally results in a satisfying conclusion.
As evidence of the effectiveness of this approach, Terry says she has five offers on one house at the moment, with prospective buyers competing with each other to get a higher and higher price.
A page from the Terry Story Real Estate Survival Guide
Your house has sold and the inspection process has been completed. What is the best way to handle repairs that need to be done after the inspection?
Terry says that in our area homes are generally sold as is. After a report is generated indicating the necessary repairs, a dollar amount is determined, and the seller issues a credit to the buyers who are then responsible from that point forward. This avoids the buyer being dissatisfied with the quality of work done by the seller which, in turn, could cause problems at closing.
On a final note, September is Realtor Safety Month, designated as such primarily to alert sellers to be mindful of keeping valuables, personal information, drugs, car keys, and even pets hidden or locked away when realtors and customers come through your homes.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week, we get together with noted real estate agent, Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The real estate market's getting a little bit bumpy here. I understand that existing home sales have slowed down. That's existing homes sales. What do you think the reason for that is?
Terry Story: Steve, we have low levels of inventory in certain parts of the country. When you have low levels of inventory and the price is rising, you're going to get a slowdown in sales. What we're looking at is … And for the month of the July, they really fell off track. We've been climbing and climbing and climbing. Especially for the summer months, summer months are really busy times, especially for the single parent homes. They're usually really strong. It comes down to affordable housing. Low levels of inventory, prices rising, buyers can't seem to afford what's out there. We do have inventory, it's not like there's no inventory, but it's not inventory that people want. There are always homes that are on the market that are over-priced and those homes are going to sit there because the buyers aren't willing to pay more than what the market will bear.
Steve Pomeranz: Right. We’ve talked about this almost endlessly in the last few months. The fact that sellers really need to price realistically in order to get that house sold. We even talked about new strategies. Instead of pricing it high and looking to negotiate the price down, is price it just slightly below.
Terry Story: Yep. I got an offer today I'm trying to put in, there's already five offers.
Steve Pomeranz: Yeah.
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
A house goes on the market and everyone is on his best behavior, putting his shiniest foot forward. The seller cordially opens up the home to potential buyers who are generally respectful and wanting to make a good impression, and everyone is smiling. But after the sale, that relationship between buyer and seller sometimes takes a radical shift.
Terry says you have to look at both sides. From the buyer’s point of view, after the inspection process has taken place, they’re eager to make plans, maybe come back in and measure windows or flooring. The sellers, however, want to lock the door and get back to their lives. It could be risky and even jeopardize the sale if the buyer does come back in and realize from perhaps their contractor that what they had imagined isn’t possible to accomplish.
Nevertheless, Terry advises her clients to go through the inspection process with a contractor and wait until the walkthrough before going back in. It’s a good idea to have your realtor or contractor at the walkthrough as well, especially if the house has been vacant and vulnerable to vandalism.
Now with the beginning of the school year, Terry notes a bit of a lull in real estate activity here in the South Florida area. Most home seekers have made their new home decisions, but in this business, Terry says, there’s always another peak season just around the corner.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Let me ask you this question. Can and should buyers be entitled to come visit the house that they're bidding on after the inspection period and before their walkthrough? Because that contains all kinds of problems.
Terry Story: It does, Steve, and it depends on how you're looking at it. Take the view of the buyer and you can take the view of the seller. The buyers like to go back to the house multiple times. After they've done their inspection, they like to place furniture, take new measurements. From a seller's perspective, they've sold their home, they'd like to go on with their life. They don't want to have to necessarily keep showing it, keeping it clean and tidy. There's risk involved when you do this, Steve. The more, especially if the buyer is planning on renovations, and what we find is the buyer would like to come back and bring this contractor, then that contractor. This can become a problem and a deal killer, actually. A buyer may find out, "Oh, I can't really do what I thought I could do by taking down this wall," or what have you.
Steve Pomeranz: It's risk to the seller because the buyer may be changing their mind or something?
Terry Story: That's correct.
Steve Pomeranz: For whatever reason.
Terry Story: That's correct. Now you have some circumstances, lately, in this type of market that we're in, you'll have people buying homes that are from out of state. They're familiar with the neighborhood. They visited the neighborhood. They know what the homes are like, yet they left without being able to buy a home because there is nothing available that they liked when they were in town. What we find, Steve, is people will go online, look at houses in that particular neighborhood. They find one that they like. They'll send their agent over there to preview the home for them, and then they're making offers on the house. I've had this happen multiple times this...
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
HGTV, one of the most popular TV channels, is all about today’s trend toward remodeling and renovating instead of buying a new home, which all looks very fun and easy on the screen. Someone comes in, takes the measure of things, does a little here, a little there, and you’re left smiling in the middle of your brand new living space at the end of the segment. This is fantasy TV, says Terry, who offers some valuable advice if you’re considering such a project on your own.
- Beware of knocking down walls since they may be there for support or to house electrical or plumbing.
- Permits must be pulled when doing many of these changes.
- Consider the character of a home before you make a design decision. You could be devaluing a historic home with contemporary updates.
- Be mindful of installing high-priced materials that may not pay off if you sell your home down the road.
Always consult with a professional before making decisions that could cost you.
We recently talked to Terry about the best pricing strategy when putting your home on the market. How to do this to your best advantage—especially considering that more and more people are checking listings online before they hit the streets—is to straddle both sides of the fence. As an example, if the appropriate value of your home is in the 190s or the 210s, placing it at $200,000 would catch both the lower and higher brackets and give you the most exposure.
Check back with us every week for Terry’s take on the current and ever-changing real estate climate.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: There's a huge trend today towards renovating and remodeling your home and staying put as opposed to moving to a new home. What are some of the do's and don't's to consider?
Terry Story: Wow. Home renovation, you have all these great television shows that make it look fun and easy, and it can be done quickly….
Steve Pomeranz: In a half hour, right?
Terry Story: Yeah. By the end of the show, your house is completely redone, and life is great. There were no headaches along the way. There is a big trend towards renovating homes. Here are some things that often turn out badly. Tearing down walls, while some walls—they look like they're easy to tear down—you might want to bring them halfway or actually rip them out. You need to know what you're getting into because many of the homeowners don't realize that they're load-bearing walls. They're holding up the floors, the framework of the house, and may be full of electrical and plumbing. Before you decide to start knocking down walls, make sure you consult professionals to see what's the implication of taking that down. Then, of course, there's also municipality codes. When you start getting into changing out electrical and plumbing and moving that around, you really need to pull permits.
Steve Pomeranz: Yeah, don't knock out a wall if it's a load-bearing wall, guys, okay?
Terry Story: Definitely don't. It won't be so pretty.
Steve Pomeranz: It's not going to work out really well for you if you do that.
Terry Story: No. A thing to rethink is modernizing a historic house. Removing some of the historic appeal and character of a home, such as like removing original woodwork, or built-ins, or those claw-foot bathtubs,
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Caught in the middle of selling your old home and buying a new home? A common situation for many of us who aren’t in the position to pay two mortgages. With 27 years of experience under her real estate belt, Terry has a formula to meet this challenge:
- Before putting your home on the market, carefully research where you want to live and have a general idea of prices in that area.
- If you get an offer on your home before you find your new home, state that the sale is contingent upon finding that home within a certain time frame.
- Establish an extended closing period of up to 90 days instead of the usual 45.
- Be prepared to go into temporary housing, whether with a family member or into an apartment or short-term rental, if necessary.
In Terry’s experience, rarely does it come to this last situation since, she says, something always seems to work out, perhaps because once you have a buyer, the motivation to find a new home ramps up.
We spoke with Terry recently about pricing your home so that you receive multiple offers from which to choose. If you happen to be one of those potential buyers who placed an offer in this scenario and you really want to win at this, what can you do? Terry advises employing a bit of psychological warfare—in a friendly way, of course—by:
- Obtaining pre-approval before submitting your offer. Turn in your tax returns, bank statements, all necessary financial requirements.
- Setting up a shorter inspection period in the contract.
- Putting down as large a down payment as possible.
- Making your offer not contingent upon appraisal, if you really want the property.
Timing isn’t always everything when buying or selling real estate. As Terry will tell you, a little creativity and flexibility need to go into the mix as well, whether you’re a buyer or a seller.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker, located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Hey, Terry, if I'm in a position where I want to buy a new home, but I haven't sold my current home, how do I handle this difficult positioning of buying a new home at the same time I'm trying to sell.
Terry Story: Sure. Let me tell you, this is a challenge. It can be done. There's a couple of different ways you can do it. What I tell my customers is, first, when you decide to make that decision and you know that you have to sell your house first and you're not quite sure where you want to go, begin shopping the general area. Decide you want this part of town, you want that part of town. Maybe what particular neighborhoods you want. Have an idea in mind as to where you want to go. If you feel that you can find something in that area, then go ahead and put the home on the market. While you put your home on the market, keep an eye on these particular areas that you're looking at. What happens is you get the offer on the house and now you have to panic because you're like, "Oh, my gosh. I'm going to sell my house and I have no place to go."
Steve Pomeranz: Right, exactly.
Terry Story: That's what everyone does. First, try to get the buyer to give you so many days contingent upon you being able to find a house. That would be plan A. Plan B, maybe give yourself an extended closing. Say, maybe instead of 45 days, make it 60 or 90 days, if the buyer buying your home is willing to do so. Plan C is the most important.
With the unfortunate passing of Robin Williams and all that has been written about his struggle with depression, I began to think about my own practice and the men I speak with who seem to experience their own journey of sadness and depression as they enter into retirement.
I decided to highlight elderly male depression in my commentary, partly as a small tribute to Robin Williams, Philip Seymour Hoffman, and others who cut their lives short.
In particular, I’m focusing on men today because, being a man and being an observer over many years of financial advising, it doesn’t take a psychologist or an expert in any of the social sciences to know that we men go through our own set of mental challenges unique to our gender and which are fundamentally different from women.
For example, men who are already retired or getting ready to retire can go from working lives and good health to retirement and possibly poor health. They can experience sadness and depression that typically will go untreated and unaddressed. This is so because, in large part, we men are less communicative about our problems than women. Let’s face it, guys, we just don’t wanna talk about it! Right?
Maybe we see dependency and life off-the-treadmill as a weakness or something to be ashamed of. Many of us have a hard time coping with this major life change.
According to psychotherapist Terrence Real, there is a growing body of research which shows that retirement significantly increases the risk of clinical depression and even suicide among men. Surveys show there are about 11 million depressed men in America at any given time—that’s about 9% of the adult male population. The real number is probably higher because men just don’t talk about these sorts of issues and don’t voluntarily tell those who care about them that they are sad, depressed, or need help. Often we’re simply unaware that we are clinically depressed and attribute our sadness to old age, lethargy, illness, or some other factor.
as we approach retirement, our traditional “masculine role” fades and make us feel a sense of loss which gets deeper if we can’t successfully transfer our “sense of identity and self-worth” to new interests.
Many of us typically attach our “sense of identity and self-worth” to the professional work we do, the money we bring home, and the support we give to our families. But as we approach retirement, our traditional masculine role fades and makes us feel a sense of loss which gets deeper if we can’t successfully transfer our “sense of identity and self-worth” to new interests. This sense of loss is the leading cause of depression in older retired males.
And that’s not all, folks. Other losses such as the death of a spouse or close friend, loss of workplace friendships, and the sense of professional belonging can add to these feelings. Also, we can see the prospect of mental or physical decline as something to worry about, especially, because, typically, we often lack support networks that can help rehabilitate our sense of self-worth.
The good news is that studies show a 90% success rate for people who seek help. So it is important not to go into this alone and shut yourself off. You need to gently open up about your sadness and find the right resources which are plentiful and there is medication which can help considerably if prescribed by an experienced professional.
There is a lot of help out there.
So what are some of the signs you should look for? First, know that this sadness is fairly common, not something to be ashamed of.
Some of the classic signs of depression are feeling blue, losing one’s sense of pleasure and joy in life, changes in sleeping or eating habits and fatigue, increased drinking, a marked increase in irritability and aggression, and a significant withdrawal from other people and life.
Spotting depression is not easy because a number of other things can mimic depres...
The Millionaire Mindset
In addition to giving you my take on the markets and how to invest your money, I like to keep reminding my readers on “habits” you can easily embrace that will systematically bring you closer to building and retaining wealth.
Somehow wealth has started to become a dirty word in America, so, if you’re so inclined, just substitute the word wealth with security and independence.
With so many theories in the world today, I’m sure that some think the rich are born with some sort of a “millionaire gene”, something inherent in their DNA that makes them better adapted for wealth creation. I don’t think such a gene exists. And even if it did exist, I think your chances of getting wealthy would be significantly higher if you focused on a few tried and true steps toward building wealth, rather than wishing you’d won some sort of genetic lottery.
The investing world is full of common folk, like you and me, who have gotten rich through simple behavioral changes they’ve deeply embedded into their mindset and lifestyle—simple, regular people who don’t earn phenomenal sums of money but still have millions in overall net worth
Today, I plan to outline a few traits that are commonly seen in millionaires that we can all learn from. By the way, these traits have been nicely outlined in an article titled “Are You Millionaire Material?” by Serena Kappes at DailyWorth.com.
People focused on wealth building see opportunities instead of obstacles. They don’t let excuses stymie them and are adept at getting past obstacles. For example, if they have shortcomings, they will look for simple ways to overcome them by leveraging outside skill sets, like selling their ideas to those with better sets of skills, getting outside investors, or bootstrapping their resources to get the job done themselves. People with the millionaire mindset believe strongly in themselves and have the strength to overcome odds and win.
The millionaire mindset focuses on investments – on using money to make money. And, as we all know, while saving heavily may get you money in the bank, it may not—by itself—make you a millionaire unless you start really early and live a long life. Those with a millionaire mindset focus on investments, on using money to make money, knowing that money in the bank earns close to nothing and loses buying power over time to inflation. It’s not something they want, so they learn to leverage the power of investing and compounding.
Millionaire minds also constantly spend time and money on increasing their knowledge, skills, and capabilities. They invest time in learning new things so they’re professionally ahead of their peers; they read a lot so they can foresee emerging trends; and they keep themselves fit and eat well, realizing that good physical health is also an investment in their future.
The millionaire mindset dares to be different and is open to being wrong. It can stomach “reasonable” risk and understands that risk inherently includes the risk of failure. Millionaires also hone their risk taking over time. As Frank McKinney, a maverick real-estate millionaire known for building luxury spec homes advises, “Exercise risk like a muscle… take a calculated risk and then see if it pays off and then take another calculated risk and see if that pays off, too, and soon you’ll start to better trust your own judgment and analysis.”
The millionaire mindset is comfortable with taking reasonable risks, but, to be clear, they don’t gamble or put themselves or their families in harm’s way for a dream, but assess the situation and take a chance only if it seems like a reasonable risk could deliver a worthwhile return.
Millionaire mindsets are also programmed to quickly bounce back from adversity and move in continuous forward motion even when failure and setbacks happen...
Our economy is fueled by the stuff we buy and sell—you know that—and it includes all kinds of transactions by individuals, by businesses, by governments, and, nowadays, most of these transactions don’t include cash. They either use credit or, increasingly, online services, such as Paypal or other mobile pay applications. Think about it: When was the last time you paid for something significant with cash?
So in our credit-based world, an individual's credit score is an all-important factor in making credit transactions affordable at low-interest rates. While we use credit or debit cards for routine transactions, big-ticket items, such as mortgages or car payments, require new lines of credit with lenders calling credit-rating agencies to check on your credit scores. But each time there's a “hard” inquiry, your credit score takes a hit.
But how much of a hit do your scores really take—a bit, not too much? It’s typical for the score to drop 5 to 10 points after a hard credit inquiry. But there’s a bit more to it than that behind the scenes.
How Applying for Credit Can Effect You.
The hit isn't the same for everyone because your history with credit matters a lot. With hard inquiries, the change in your score depends on factors such as how long you’ve been using credit and whether your credit report includes any late payments, delinquencies, etc.
An inquiry’s effect on your credit score also depends on what you’re applying for. Many scoring models combine multiple credit inquiries and put things, such as mortgage, auto or student loan inquiries, together to allow consumers to shop around for the best rate, without worrying about how much each inquiry might ding their score. Depending on the scoring model, that “rate shopping” period, in which multiple inquiries count as one, can vary between 14 to 45 days. This is new and very important. One of the great obstacles for shopping around was the negative impact it would have on your credit rating. The rating agencies got smart and did away with this restriction. Bravo for them!
Credit card applications have a different scoring model
Every time you apply for a credit card, you take points off your score, typically about five points or less for each credit card application.
It pays to do your homework and shop around.
Experts suggest that consumers shop around for credit to help minimize the damage that inquiries cause to your scores. But first, do your homework in terms of credit card applications. Doing your homework before you apply will give you an understanding of the qualifications different cards have ahead of time. This way you can, for instance, avoid applying for a card that requires a high score if your score is low and avoid the futility of getting a sure-shot rejection letter while also having the hard inquiry impact your score.
Be Strategic.
It’s a good idea to only apply for credit when you need it and to time your credit card application so it's not when you have major purchases coming up that could be affected by recent inquiries on your credit report. For example, if there is any likelihood of your applying for a mortgage in the near future, don’t apply for new credit because you could lower your score and increase the interest rate on your loan. So hold off on applying for any new credit until after closing on the home. But don't overly sweat it because, on the bright side, the score tends to be somewhat forgiving of negative new account impacts, with any such harm tending to lessen after about six months of history.
Keep an Eye on Your Credit.
Immediately after applying for credit, your score may drop a bit, but, like I said, this dip isn’t permanent. So if you've kept credit balances low and have not missed making timely payments, your score should recover and even improve over time if you are a disciplined user of credit.
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
It always seems like such a conundrum: is it better to rent or buy? After 27 years as a real estate expert, Terry Story still has to answer, “it depends”. Not only is the real estate market local, it’s also changeable. Like the stock market, things go up and things go down, so you just have to know where you are in place and time.
Terry says that after about five years of rising rental rates, “we're starting to see a surge of multi-family permits and buildings going up creating more supply. As you know, when you have more supply, the prices start to come down.” Not only will there be more choices for the renter, but many of these new rental properties will begin competing against each other which will further drive down the cost and create the option for more amenities than before.
For business owners looking for office space, however, Terry refers to Res.Inc which reported that US office vacancy rate had fallen to a seven-year low, meaning that prices will be on the rise in this area.
Back to the decision of whether to buy or to rent a home, Terry advises the third of all home buyers who are 35 years or younger to buy if they plan to stay in the home at least for two years. That two-year mark along with interest rates now hovering in the 3.6% zone almost ensures that buying is the better way to go. That being said, Terry cautions against making a purchase that is more than 28% of your gross pre-tax income on a monthly basis. Another factor to consider is the amount of hidden costs in being a home owner—taxes, insurance, lawn care, incidental maintenance, and repairs.
Going back to the question, “Should I rent or buy?”—after everything is taken into account and the numbers add up, at this time and in most places, it’s a good day to buy a home.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent, Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Many people are still renting, and home buying still is a challenge for many. What is going on with the rental market? Are prices or rents still rising as they were?
Terry Story: Yes and no. It's starting to lose its mojo. I like the way that sounds. Basically, what we're seeing, Steve, that the rents have gone up so much in the last five years—they jumped up about 20% nationwide during this five-year period of time—but we're starting to see a surge of multi-family permits and buildings going up creating more supply. As you know, when you have more supply the prices start to come down. These buildings aren't built overnight, so it does take time, and it takes a couple of years. You can even see in our own market. We've got lots of buildings going on, and that's going to make the prices begin to fall a little bit.
Steve Pomeranz: In your own community, if you see buildings going up, and they are rental buildings, know that that's probably a good sign if you're a renter. First of all, it gives you more options, and, secondly, there may be a time in some future where these projects will start competing against each other.
Terry Story: Yeah, like, for example, in New York, they're going to see 2.6 times more apartments in the next year. It's a historical average in Boston of 2.5 %. These areas should start to see the prices soften a little bit, or the developers or the community's offering more amenities, or giving you a free month rent, that sort of thing. It's by no means indicating that there's not a demand—the de...
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Although home sales are doing well these days, the home renovation business is thriving. Terry says there are two kinds of renovators out there— first-time buyers fixing up older homes and long-time homeowners choosing to stay and fix up the place.
The largest group is the new home buyers who purchase older homes because of location or price and take on ambitious projects such as remodeling kitchens and bathrooms, adding on rooms, or major landscaping. Generally, they’re spending an average of $66,000 on such improvements.
The other group, those who have lived in the home for perhaps 25 years or so, spend about $36,000 making upgrades and enhancements as the alternative to moving.
Terry says this is an excellent time for anyone selling products or services for remodeling—contractors, carpet and flooring specialists, stores such as Lowe’s and Home Depot.
As a busy real estate agent, Terry often encounters problems that can derail a closing date on a home sale. Since few people can pay cash for a new home, for the most part, these delays or cancellations are related to issues with the buyer’s financing. Quite often, the buyer of a new home is faced with having to first or simultaneously sell their present home before being able to take on the costs for the new one. For some, bridge loans are an option as is tapping into a home equity line of credit. Terry’s advice to her clients is to have a plan in place should the timing not be so well coordinated.
In closing, Terry comments on the flipping phenomenon that was so prevalent back before the housing crash. Instead of buying and trying to flip a house, as in the past, Terry says investors are buying, fixing, and then renting. Since rents are on the rise, this practice usually brings a good rate of return.
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Steve Pomeranz: It's time for Real Estate Round-up. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: I know that home sales are doing rather well, but I think a lot of people these days are deciding to stay in their home and renovate. What's going on in the renovation market? Is there more than one type?
Terry Story: Absolutely, Steve. There are actually two kinds of renovators. What we're seeing, the largest group of people renovating are the new homeowners. They're taking on the larger projects, so somebody who just purchased a home and they want to redo it. They didn’t want to buy an old house. They wanted to buy something that is more centrally located, so they're buying that older home, turning into bigger projects. For example, they're remodeling the kitchens, that’s the most popular. Then they're tackling the bathrooms and then maybe doing curb-appeal projects such as painting the house, roof, et cetera. They're spending on average about $66,000 on homes.
Your next kind of home owner/renovator, they're spending about $36,000. That’s the person who's been in their house 25 years. They don’t really want to move, and they tend to tackle the projects on their own. They might not hire that general contractor, therefore, they tend to spend less.
Steve Pomeranz: Yeah.
Terry Story: The new home-buyer coming in spends a lot more than the current person currently living in the house.
Steve Pomeranz: Yeah, so this is a good time for anyone really in the local remodeling construction business, I guess, for people who sell flooring and those kinds of services as well.
Terry Story: Absolutely.
With Cheryl Casone, reporter and anchor for Fox Business Network, Author of The Comeback: How Today's Moms Reenter the Workplace Successfully
The stay at home mom is a dinosaur from days long gone. Whether from economic necessity or desire, most moms today are either already out in the workforce or they’re returning after time out to raise children. Recognizing that reentry after a long hiatus from earning a paycheck can be an intimidating venture, Cheryl Casone, reporter and anchor for Fox Business Network, wrote a book on the subject called The Comeback: How Today's Moms Reenter the Workplace Successfully.
Cheryl herself grew up with a working mom which she says was her inspiration for living her own life and for mentoring other women who may be agonizing over the guilt of leaving their children coupled with the insecurity of going back into an arena where the rules have changed.
The two biggest concerns women have about the return to work after having children, says Cheryl are: The kids will suffer; I won’t have anything to offer; my skills are rusty or out of date.”
To counter these fears, Cheryl points to a recent Harvard University study that interviewed both mothers and daughters of over 50,000 women in 25 countries and concluded that daughters, in particular—but sons as well—were more successful and reported higher levels of work/life balance than children raised by mothers who never worked. This cultural shift is light years away from the days of Leave it to Beaver.
In researching her book, Cheryl interviewed over 100 women many of whose stories are cited in the book as supporting testimony for the findings from the Harvard study.
Acknowledging the obstacles facing many women wanting to return to the business world, Cheryl offers invaluable advice on how to navigate back to a satisfactory position in the workplace.
- Before leaving your present job, she counsels, always secure contact information for your colleagues, so you can keep in touch from home.
- Social media means you never have to be in isolation. The world is right there on your screen, so maintain those contacts during your time off from work. Also, reach out for actual face-to-face meet ups with local colleagues.
- Acknowledge that after being at home for a while, you might have to accept less money or a different title.
- Building a resume is a key factor in presenting yourself as a prospective employee. Cheryl’s advice is to emphasize your strong points at the top of the page, front and center, and to not minimize some of the skills you’ve used at home, such as negotiating, multi-tasking, and organizing.
The Comeback: How Today's Moms Reenter the Workplace Successfully is a self-help book that will coach you back into the workplace. Cheryl gives you advice, resources, and courage to go confidently into the arena of the successful working mom.
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Steve Pomeranz: Each year thousands of women put promising careers on hold hoping to return to them at a later point. In her book,
With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story always has her real estate eye fixed on the local market and, therefore, is tuned into the potential effects Brexit could have in South Florida. “In the short term,” she says, “the US could be flooded with investors flocking to the US as a safe haven, putting more demand on real estate, and, of course, that would be a good thing for us.” Also, she adds, interest rates will likely remain low or go down, meaning that mortgage rates will be more attractive to the home buyer. Recently, we saw average home mortgage rates of 3.46%, producing lower monthly payments and giving the buyers greater buying power. “To give you an idea what this means,” says Terry, “it'll allow the average home buyer to buy 8% more expensive of a house.”
Home prices have climbed overall in April, with five US cities showing record home values and 20 major markets having double-digit annual increases. The cause here has nothing to do with Brexit, but with shrinking inventory, which was actually created by the pushback from buyers who refuse to consider paying such inflated prices.
One of Terry’s resources for real estate news, a report called The 8 Critical Trends in Real Estate, predicts that commercial projects will decrease as many insurance companies, bankers, and debt marketers reach allocation limits. To better understand this, Terry explains that, especially with commercial real estate, the big building projects are launched during a healthy economic phase. But since these ventures can take up to or more than two years to complete, the economy could be back to a negative position, where few developers would risk beginning something new.
Based on the shifting demographics of the millennial population growing at about the same rate as that of baby boomers retiring, Terry offers this optimistic prediction: “There's going to be continued growth in the multifamily and growth in the boomer-focused housing, offering medical facilities, assisted living facilities.”
Although Terry often says that all real estate is local, it’s important to remember that world events from afar can have consequences in our own back yard.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in sunny Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The news has been and continues to be is this vote by the British Union to get the heck out of the European Union, and we're wondering what effect might that have on US real estate.
Terry Story: Steve, in the short term, the US could be flooded with investors flocking to the US as a safe haven, putting more demand on real estate, and, of course, that would be a good thing for us. While there's a rise in the dollar, it could hurt US exports. It's also expected to put downward pressure on the long-term mortgage interest rate. It's going to be two-fold. One, long-term interest rates; two, investors leaving some of their investments in London, specifically, and moving to the US.
Steve Pomeranz: When you have stress times like these, the big money, institutional money, and pension money has to go somewhere, and if it seeks safety, there's only a limited few areas they can invest in. The most liquid area in the world to invest in for big dollars is US Treasuries, so if there's more demand for those bonds, then prices rise, which means the corresponding interest rates fall, and then if interest rates fall, mortgage rates, which are pegged to treasury rates, will also fall.
With Danielle Marceau, Senior Economist with Prevedere
If you’re going to the beach and you want to know if it’s going to be sunshine or storm clouds, you could check grandma’s arthritic knees, pick up a divining rod, or maybe call Al Roker. When it comes to forecasting the economy, however, you’ll want a more scientific approach.
Danielle Marceau is a senior economist at Prevedere, where economic growth is predicted by identifying leading indicators and coming up with algorithms that have produced results with more than 85% accuracy. Prevedere defines their method as a “statistical combination of multiple leading macroeconomic trends, creating a single line representing the future momentum of the industry.”
Danielle says that the Federal Reserve, in contrast to the philosophy behind Prevedere, uses a reactionary method to measure economic growth, one based on the current state of the economy and not necessarily on looking into the future. An example of the disparity between the two systems concerns the employment numbers that just came out in May. The Fed had predicted the number of jobs added to be around 160,000, when, in reality, they came in at 38,000. Prevedere had actually predicted a lower number of new jobs based on their indicators, which included, for instance, the fact that corporate profits, small business confidence, and industrial production were all calling for weaker jobs growth.
It’s important to note, Danielle points out, that in spite of the slow growth we’re currently experiencing, we’re not looking at a contraction, a pulling back, but instead a period of deceleration, a softness in the economy.
Even factoring in for the uncertainty caused by Brexit, none of the leading indicators are foreshadowing an imminent recession in the US because of Great Britain’s divorce proceedings from the European Union.
This optimism is partly due to Prevedere’s industry outlook scores, health scores, as it were, that measure the health of certain industries trending in a positive direction, which they refer to as B to C industries—business to consumer—which include healthcare, technology, retail packaged goods, and the auto industry, all consumer-end focused industries which have scored positively. Based on their data, the US economy doesn’t seem to be particularly vulnerable to the global fallout incurred by Brexit.
Brexit, however, has undoubtedly rattled the stability of the world economy and volatility will probably be with us for the foreseeable future. According to Prevedere’s calculations, the economic forecast may not promise all blue skies and sunshine, but neither does it point to stormy weather.
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Steve Pomeranz: There's a lot of talk these days about the fact that the Fed keeps predicting or keep making bad predictions about the US economy as they try to adjust interest rates to either speed up or slow down economic growth. My guest, Danielle Marceau, is a senior economist at Prevedere. She's an expert of forecasting growth and the growth and contraction of the US economy. And their algorithm, so they write, has produced results with more than 85% accuracy. So that truly interested me, and I wanted to get to talk to her. Welcome to the show, Danielle.
Danielle Marceau: Thanks, Steve. Thanks for having me.
Steve Pomeranz: Those of us who follow policy making from the Federal Reserve, and I know you do as well, have noticed that they've talked about raising interest rates quite often, and they only really were able to raise them once, and they keep modifying their predictions on growth. What's going on there?
Danielle Marceau: Yes, I believe and what I've seen is that, really, they missed their opportunity to get the raise in that they had expected or wanted to get in.
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
When talking shop, Terry always counsels that all real estate is local. And so speaking of the South Florida market, one buyer’s positive is another seller’s negative. A lack of inventory has created a sit back and enjoy the show moment for anyone with a For Sale sign in front of their house. Buyers, on the other hand, find themselves in a state of frustration with higher prices and heavy competition for a few desirable properties.
When it comes to the choice of either buying or renting today, Terry cites the Case-Shiller Home Price Index as showing that in some metro areas, such as Boston and New York, it’s better to buy, whereas, in Dallas and Denver, renting seems to be the smarter way to go for the moment. Again, it all depends on your location.
As for the luxury market (over $2.2 million), there’s been a decline both globally and nationally. Even in Dubai, that area of glitz and extreme wealth, housing prices have tumbled by about 25% because of falling oil prices.
From the large and luxurious to the extreme opposite side of the housing scale are tiny homes, those of about 400 square feet. These Lilliputian dwellings are a rising and growing trend appealing to students, millennials, and retirees.
For today’s slice of her Real Estate Survival Guide, Terry talks about a term known as “procuring cause”, which is the series of events taking place with a client that determines if the realtor is entitled to a commission on a sale. This often happens when a home seeker works with multiple realtors. Besides often resulting in an ugly situation that has to be arbitrated through local real estate boards, using more than one realtor is not a smart move for the buyer since, especially in the same community, all realtors have access to the same properties.
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Steve Pomeranz: It's time for Real Estate Round Up. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker, located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Hey, Terry, are sellers happy these days? Are buyers happy? Who is happy?
Terry Story: Who is happy? Happy, happy, happy. Right now, we have happy sellers and very frustrated buyers. They did a recent home purchase sentiment index by Fannie Mae and, basically, the report indicates this: The homeowners are at an all-time high in their happiness as to it being a good time to sell. On the reverse side, we have the buyers at an all-time low as their sentiment as to the market conditions. What's causing this is lack of inventory. Lack of inventory is driving fewer choices for buyers, prices rising, being placed into multiple bid situations. For a seller, they're sitting back and watching the show and enjoying it.
Steve Pomeranz: They're not really selling in mass, though.
Terry Story: No, they're not selling in mass. The numbers of sales, I think, are down. I know the reason why the number of sales is down is because we don't have enough inventory. The demand is out there. There's plenty of buyers. When I talk about this, Steve—real estate is local—so when I say this, this may not necessarily be true in your specific neighborhood or community. On a national level, this is what we're seeing.
Steve Pomeranz: Terry, is it more advantageous to buy today or to rent? We always have that discussion.
Terry Story: The buy-rent battle.
Steve Pomeranz: In different economies, in different locations, one may be better than the other. What do you see?
Terry Story: Sure. The Case-Shiller Home Price Index found that, nationally,
There is a constant stream of messages telling us to save, save, save for retirement. They are important messages and you should listen closely.
However, there are key pivotal ages when your retirement portfolio will require hands-on attention when you’ll have to make decisions that impact your financial security and quality of life for years to come. These windows of opportunity may last as little as a few months, so listen carefully and make sure you don’t miss these five crucial ages to make your best financial progress.
Money’s Penelope Wang recently penned an article which zeroed in on five key pivotal times in your life and career when you should take full advantage of windows-of-opportunity to stash away money and stay on track—and I have added some of my own ideas, as well.
- Age 25: Commit to Saving
When you’re just out of college, saving can be hard. But halfway through your twenties, with a job or two behind you, you’re psychologically and financially ready to set money aside. If you start your savings at 25, you’ll get the full effect of 40 or more years of compounding… and you’ll develop a habit that will serve you well for life.
Here’s your key move for this age: Aim to put away at least 10% of your pay in your workplace plan, if you have one, or set up a Roth IRA. Most 25-year olds are also fairly computer savvy, so to keep you on-track, pick one of many free financial apps that automatically helps you track and save towards your goals. For example, an app at Acorns.com is free and diverts small amounts into your savings accounts by rounding up your debit or credit card transactions to the nearest dollar and funneling that change into an investment account.
- Age 45: Turn Up the Volume
At 45, you’re near your peak earning years, which are 48 for men and 39 for women—that’s when your salary level is at its highest and you most likely have fewer working years ahead of you than behind you, so retirement has to be a priority. This is a good time to turn up the volume on your savings and power-save. Now is also the time to not get carried away into making wasteful or over-indulgent purchases.
Here’s your key move for this age: Take stock of your savings over the past 20 years. Then use online tools and retirement calculators to realistically estimate how much retirement income your portfolio will generate over the next 20 years. While forecasts aren’t perfect, they can inspire. A 2014 study out of Stanford University found that seeing such long-term estimates helped spur workers to boost their savings. For more detail and guidance, hire a qualified financial planner who can find other areas of savings and help keep you on track.
- Age 60: Get Familiar with Social Security
The earliest you can receive Social Security, generally, is at age 62, but claiming strategies, especially for married couples, can be complicated. As I’ve mentioned before, early withdrawal from social security comes with a life-long penalty. So don’t rush to get your social security, but come up with a plan that keeps you from tapping that resource until it’s penalty-free for you, so you get its full benefit.
Here are your key moves for this age: Although about 40% of all retirees claim social security at age 62, look for ways to hold off because monthly benefits grow 7% to 8% per year until you’re 70. While you wait, build up enough cash to cover emergencies and daily expenses and temporarily lower the risk of your portfolio in case a bear market rears its ugly head. Your adviser should be recommending this and a good one will know exactly what to do.
- Age 65: Enroll in Medicare
Unless you or your spouse is still working and you’re on an em...
With Vitaliy Katsenelson, Chief Investment Officer at Investment Management Associates and contributor to Institutional Investor Magazine
As Chief Investment Officer at Investment Management Associates in Denver, Colorado, Vitaliy Katsenelson knows we can’t look to the history books for answers in today’s uncertain and rapidly changing economic climate. One takes a lot of risks making large bets on any one particular investment theme.
In an article written for contrarianedge.com, “Manifesto – The Values of Value Investing”, Vitaliy explains the difficulties of betting on inflation versus deflation. A good investor knows what to invest in to make money in an inflationary world, just as he or she knows what to own for a successful outcome in a deflationary world. The problem is that today’s economic environment is unprecedented in its unpredictability and, therefore, betting large amounts of money on any particular outcome carries unacceptable risks. The best approach is a diversified portfolio which covers all possible outcomes.
Vitaliy discusses the challenges of being a value manager due to the fact that the value style can be out of favor for long periods of time. The market often acts irrationally, rewarding companies that have little economic value but sparking the investing public’s imagination and desire to get on the bandwagon. Value investing, by definition, involves paying a fair price for a solid and sensible business without regard to how popular or “sexy” a venture it may be. A good example is Apple. For a while, everyone wanted a bite of that Apple, making it the hottest stock on the market. Apple has since cooled and is now a favorite pick of value managers. How long will it take for the market to once again recognize its true future value? It's anybody's guess, but therein lies the value manager's greatest challenge—convincing investors to hold on while "fresher apples" hit the marketplace.
The role of media in shaping public opinion cannot be discounted or underestimated. We live in a media-driven culture and few of us are immune to its influence. When it comes to looking for investing tips, the news media may try to explain what’s going on (ratings do count) but financial professionals understand it’s just noise and that no one really knows.
Great minds of the past and today have cautioned against being too confident. Albert Einstein once said, "A true genius admits that he or she knows nothing. Smarter and humbler people than me were willing to say ‘I don't know' and it's okay for us mortals to say it, too." More recently, Warren Buffett’s partner Charlie Munger said, "If you're not confused about a global economy today, you don't understand it."
As an investor, what you should know is what’s inside your portfolio and, as Vitaliy explains, it’s the job of a good financial advisor to communicate clearly and transparently what and why you own what you own. As the market does its up and down dance, the client, instead of panicking, can then move confidently into their investment future with full understanding of the logic behind their investment choices.
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Steve Pomeranz: Vitaliy Katsenelson is Chief Investment Officer at Investment Management Associates in Denver, which is a value-oriented investment firm specializing, as I said, in value investments, and he writes extensively for Institutional Investor Magazine and other important publications. He's been with me on the show a number of times and is a great source and a great investor himself. Welcome back to the show, Vitaliy.
Vitaliy Katsenelson: It's my pleasure, Steve.
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story’s weekly segment today tackles some interesting points included in her Real Estate Survival Guide: Dealing with uncooperative tenants and ignoring insurance risks when buying a home.
A recent scenario involved an owner trying to sell his rental property and confronting a tenant who wouldn’t allow access to the home for the prospective buyer. This resistance from an otherwise good renter, one who paid on time and took care of the property, can be a sticky issue which often has to be resolved by a real estate attorney.
Aside from some of the emergency or mutually agreed upon reasons a tenant can legally access a renter’s home, in the case where the landlord has put the property on the market, by law, he must give reasonable notice to the tenant in order to show that property. The concept of “reasonable notice” is subject to interpretation and often means cajoling the tenant into being cooperative and then that often is a battle.
Another situation which real estate agents frequently confront is the new home buyer who either ignores or minimizes the cost of insurance when calculating the price of their purchase. They may be aware of the down payment, the monthly mortgage payment, and real estate taxes, but only factor in insurance premiums at the end—which can be a shock if no advance research has been done. Terry advises the client to consider factors such as the age and condition of the roof, whether the home is in a flood zone or not, how far from a fire station it is, and if it has a swimming pool—all things that affect the cost of homeowner’s insurance
The best advice from Terry is to do your homework before you set out on your search for your new dream home.
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Steve Pomeranz: It's time for Real Estate Round Up. This is the time every single we get together with noted real estate agent Terry Story. Terry is a 26-year veteran with Coldwell Banker located in sunny Boca Raton, Florida. Welcome back to the show Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: I love when we do your real estate survival guide. It's my favorite part of the show. You've got a couple of them for us today. Take us through the first one.
Terry Story: Steve, the first one is what happens when you're trying to show a house and the tenant won't cooperate in letting you in the house?
Steve Pomeranz: Have you ever had that experience as an agent?
Terry Story: I'm living through it right now, Steve. It's very challenging but, really, the question that was proposed was the seller is trying to sell his rental property and the real estate agents are not having any luck with the tenant cooperating. The tenant has always paid on time and does take decent care of the property but doesn't even seem to be available. There's a prospective buyer that wants to take a look at the house. What are your rights? What can you do? That was the question that was presented to Gary Singer who's a local real estate attorney.
Here's the answer: The law in most written leases allows landlords access to rental properties, for a couple of reasons. One, to make repairs provided that there's an agreed upon service and that you’re showing the property to lenders, contractors, and prospective tenants. The landlord must give reasonable notice to the tenant to access the property. Now this is where the problem lies. What is considered a reasonable amount of time? The tenants have no skin in the game. They're going to be moving out of the property. They have no reason to cooperate except just to be nice.
Steve Pomeranz: They may be resistant.
Terry Story: They're resistant.
As most of you know, the much-loved singer, songwriter Prince died recently of unnatural causes at the age of 58. He was a musical innovator best known for his eclectic work, flamboyant stage presence, extravagant dress and makeup, and wide vocal range. Prince sold over 100 million records worldwide, making him one of the best-selling artists of all time.
But with the mourning over his death barely over, bickering has already begun over Prince’s estimated $200-300 million estate and $500 million back-catalogue. Prince died with no known will — so his sister, Tyka Nelson, and five remaining half-siblings will likely inherit his fortune under Minnesota state law. But whatever the final result, squabbling over the millions promises to be a drawn-out process.
BBC ran an article written by Kate Ashford, which spells out a lot of the ramifications of contesting a will and other aspects of wealth transfer after death; so, as I always like to do, we take a recent celebrity’s death to educate you about your money.
Here’s a true story: A mother and father own a farm and have four children. Only one of the children, let’s call him Michael, works on this farm. He does so for 40 years for little pay, keeping it afloat, while the other three children have successful careers elsewhere. In their estate documents, the parents stated that when they die, the family farm should go to Michael and the family home should go to the other three siblings.
Unfortunately, the parents also added a paragraph that said, “These are the arrangements to be carried out unless the children vote to change it.” Now, after the parents’ death, the other three siblings outvoted Michael and are each suing for a quarter of the value of the entire farm. If they win, the farm will be liquidated, leaving Michael with only a quarter of the value of the operation at age 60.
This is the situation facing a financial planner in the State of Virginia who says: “There is no question what the parents’ intentions were, but the siblings are still taking Michael to court. They no longer speak to each other. They all think Michael is being greedy. They will lose the court battle but the family may never heal.”
Contesting a will is a gut-wrenching process and could potentially be avoided if more families talked about estate planning in advance. Despite the many obvious benefits of estate planning, three-quarters of all wealthy families in the U.S. don’t discuss money and inheritance ahead of time, in ways that avoid misunderstandings and unintended consequences after they’re gone.
There’s usually also a lot of animosity that develops over the years and makes wills that much more contentious. The war extends beyond the will into settling decades of simmering tensions.
So if you’re in a situation where you’re faced with contesting a will, make sure you have good reasons and a fair amount of stamina because disputing a will isn’t easy.
Here’s what you should know:
What it will take: You’ll need to provide an acceptable legal argument for invalidating the will. You’ll also need the resources to pay a lawyer who specializes in estate litigation —which can cost tens of thousands—and the confidence to go up against your family if circumstances warrant it. So given how disputing a will can be a difficult, emotional, and expensive process, make sure you know what you’re getting into ahead of time.
Depending on where you live, you may also need to have “standing” to contest a will. To have standing, you’d need to have been in-line to inherit even if there had been no will. When there's no estate document, the rules of intestacy apply, which are the state or country laws that apply to the transfer of an estate after a death. Typical intestacy rules might pass property to a spouse first, children second, parents third, and so on,
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
As a longtime real estate agent, Terry Story has encountered many complications along the way from the first showing to the handing over of the keys. It has happened, she says, that just before the deal is inked, the seller is gripped with buyer’s remorse and backs out. Where’s the recourse for the buyer?
Unfortunately, sometimes the only answer lies with the courts, but suing can be expensive, time-consuming, and often not rewarding for the buyer. Terry’s advice is to simply turn away and begin a new home search, as heartbreaking as that may be.
As part of Terry’s Real Estate Survival Guide, she encourages buyers to comply with a code of house-seeking etiquette. Realizing that the owners have staged their homes so they show in the best possible way and then have to vacate for the duration of the prospective buyer’s visit, buyers should always show respect and restraint toward another person’s property. Don’t come with an army of friends and relatives, don’t allow children to run helter-skelter through the rooms, don’t move objects around, and don’t leave fingerprints on windows. The homeowner may be recording your visit on a hidden camera, and so your performance could derail or negatively influence the buyer’s desire to purchase that home.
Terry tells all buyers to pretend they’re walking into the White House and to act accordingly.
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Steve Pomeranz: It's time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent, Terry Story. Terry is a 26-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Well, you know I always like for us to do our Real Estate Survival Guide, and this is the time in the show that we try to put in every single week where there's a problem that springs up or a tip that you can give to our listeners about real estate. What is it this week?
Terry Story: Well, this week it's about buyer's remorse and buyers wanting to get out of contracts, and they have so many outs through their inspection clause, through their mortgage, but what happens when a seller gets seller's remorse and they want to back out of a contract?
Steve Pomeranz: What happens?
Terry Story: Basically, it's this. Sellers, sometimes it happens, not very often, where they want to get out of the deal. You, as a buyer, don't want that to happen, so the only way you're going to be able to realistically deal with this in a practical sense is you're going to have to sue them. What are you suing them for? Specific performance.
Steve Pomeranz: Before you go on, let me read the actual question because I think it's a well-written question: "We found a house and entered into a contract to buy it. We did our inspections, got our mortgage loans set up, and are ready for the closing about three weeks from now. Last night, the seller called and told us that she had an unexpected issue and will not be able to sell us the house. Don't we have rights here? Do we have to wait until the closing date comes and goes before we can start taking action to enforce the contract?"
That is the situation. You've put all this effort and time and your heart into buying this new home and seller pulls out at the very last minute. You feel like, "Heck, I deserve some redress here."
Terry Story: Yes. The first thing you have to do is hire an attorney. That's the absolute first thing you need to do, and there are some provisions to try to prevent this from happening, and one of them, Steve, you know the commission…if a realtor is involved and...
With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
A real estate agent is a good source of information for the home seeker, but it’s important to know where the line is drawn. Terry Story says there are certain loaded questions that you should avoid asking and that any savvy agent will avoid answering.
Buyers will always want to know about the quality of the neighborhood: Is it good, is it safe, and what kind of people are on the block—questions that would require an answer that may violate discrimination laws. The agent also has to be on guard for “testers”, those people who are fishing around for infractions in this area that could jeopardize an agent’s career. Terry advises that many of these questions, such as the crime rate of an area, can be found easily on the internet.
Another issue of discrimination that might occur concerns homeowner association rules. Any alteration to existing regulations which interferes with a person’s religious practices could be viewed as discriminatory. One example of this comes from a reader in the Sun Sentinel who worried that the mandatory use of an electric key fob to gain access to his community would violate his religious beliefs on the Sabbath. In such instances, the problem would have to be solved through his HOA or condo association.
So when it comes to speaking with your realtor, do some online advance research and don’t put him or her in an uncomfortable position.
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Steve Pomeranz: It's time for Real Estate Round-up. This is the time every single week we get together with noted real estate agent, Terry Story. Terry is a 26-year veteran with Coldwell Banker located in Boca Raton, Florida. Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The life of a real estate agent. People are always asking you questions, of course, about the home.
Terry Story: Everything.
Steve Pomeranz: Everything. Everything. However, there are certain questions that I think should not be asked of a real estate agent. Talk to us about that.
Terry Story: Sure. You can't expect agents to answer these loaded questions, and people ask them all the time. Is this a good neighborhood? Is this a safe neighborhood? Are the schools good? What type of people live here? Worse is when they specifically ask, can you show us a neighborhood where there's a large number of “fill in the blank”? We have to adhere by national housing laws, the Fair Housing Act, and we can't answer these questions because of discrimination laws. Just don't ask the agents these questions.
Steve Pomeranz: Again, some of these are so subjective when someone asks you if this is a good neighborhood. That could be a code word for something.
Terry Story: It could be a code word. For someone, it may be a code word, but it is very subjective. What I think is a good neighborhood, Steve, and you think is a good neighborhood aren't necessarily one in the same. It puts agents in a very funny position. Is it a safe neighborhood? Those are things that are easy to look up.
A lot of these answers to these questions, Steve, a buyer can find out fairly easy on the internet. We're not really allowed to direct you to what sites to go to per se, but I can tell you that a lot of the cities have their own websites that talk about crime statistics. Certainly, you can pull up the school ratings in any of the … just Google the names of the schools and they'll show you, in many cases, charts and graphs. They grade the schools on a variety of categories. If you are concerned about the schools, go visit the schools. Learn for yourself, is this a good school for my child?
The one I get all the time,
with Lauren Stiller Rikleen, Expert on Strategic Leadership, Author of You Raised Us – Now Work With Us: Millennials, Career Success and Building Strong Workplace Teams
Is the workplace really a battle zone between seasoned and experienced baby boomers and the less experienced, but ambitious and self-confident millennials? Lauren Stiller Rikleen has conducted research which exposes the cultural differences largely to blame for the bad rap attributed to both sides and lays it all out in her book, You Raised Us, Now Work With Us: Millennials, Career Success, and Building Strong Work Place Teams.
Millennials (those born between roughly 1978 and 2000) were raised in the technology decades and for that reason alone come into the workplace with better tech skills than the majority of boomers. In addition, boomer parents raised this generation to be self-confident as well as having given them travel and educational advantages far exceeding those of previous generations, for the most part.
The stereotypical traits attributed to millennials are a sense of entitlement, lack of loyalty and commitment, as well as a lack of respect for the older worker. The boomers, on the other hand, often view these younger workmates, who appear to be aggressive and disrespectful, as vultures on the limb, waiting to swoop down and take their positions.
Lauren points out that another intervening generation, the gen Xers, pushing to take on senior leadership roles, are more often a greater cause of friction with the older boomer generation who, in fact, are sticking around and holding on to those positions longer than in the past. So while the work ethics and manners may differ between boomers and millennials, it’s actually the gen Xers creating most of the discord.
Lauren writes in her book that because the cultural gap between boomers and millennials is immense, better communication and understanding is the key to a harmonious working environment.
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Steve Pomeranz: The battle between generations rages on in the workplace. Boomers say, "These kids don't have a clue what hard work is." Millennials say, "These old fogies think we're free tech support." Well, there's going to be some discussion in between and, if there is a chasm between generations, my next guest can explain it and help us to work it out. She is Lauren Stiller Rikleen, President of the Rikleen Institute for Strategic Leadership and author of You Raised Us, Now Work With Us: Millennials, Career Success, and Building Strong Work Place Teams. Hey, Lauren, welcome to the show.
Lauren Stiller Rikleen: Thank you so much.
Steve Pomeranz: So we're talking about the millennial generation, how big is this generation in the US?
Lauren Stiller Rikleen: 86 million.
Steve Pomeranz: 86 million young people.
Lauren Stiller Rikleen: Yeah.
Steve Pomeranz: Now we're talking about ages approximating what?
Lauren Stiller Rikleen: Well,
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Luxury home sales have slowed down lately, so the gap in sales has been filled somewhat by lower priced new housing. For example, D.R. Horton in Florida, Texas, and the Carolinas is designing and building homes which are affordable for the younger first-time home buyer, a group that has in the past found new housing to be beyond their means. These homes range from a basic no-frills model to more up-scale, but still affordable levels.
The scale of homes is also seeing an increase, from an average of 2660 square feet, not too long ago, to 2720, according to the National Association of Builders. In addition, the average price of a new home today is $350,000, an increase of $100,000 since 2009, which is pretty remarkable.
Another current trend to note is the emphasis on playrooms as opposed to big yards, this being the obvious influence of millennials who are starting and raising families.
As for rising mortgage rates, Terry says, it will happen, but no one knows exactly when.
Not to be over-looked as affecting our current housing market is the fact that local communities, in order to not lose federal funds, must comply with affirmative action rules set by the U.S. Department of Housing and Urban Development, which can alter where affordable housing can be built.
Real estate agents are also concerned with the impact of erosion on beachfront property, especially here in Florida where so many houses and condos are seeing the water coming closer and closer. This issue, Terry emphasizes, is of great concern.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
While most people thought the Federal Reserve’s move to raise interest rates was the tipping point—beyond which mortgage rates would begin to climb back up—Terry sheds prescient light on why that is not the case. She says mortgage interest rates have little to do with the Fed’s raising of short-term rates, but more to do with the market’s overall view on where the economy and inflation are headed over the long-term. This expectation is more closely reflected by the interest rate on the 10-year Treasury bond. So with a tame economy and weak inflation (as is currently the case) mortgage interest rates continue to be very attractive.
Moreover, as equity markets sink on fears of domestic and global economic weakness, investors move their money to highly liquid safe havens, such as the U.S. Treasury market. This action drives up Treasury bond prices, which also drives yields down and keeps mortgage rates low. So Terry urges home buyers to not read too much into the Fed’s quarter-percentage point rate increases.
Terry also gives us a heads-up on greater government oversight in the luxury home market, homes that sell for more than $1 million in most parts of the U.S. and for more than $3 million in more expensive housing markets, such as Manhattan. She says the Justice Department’s Financial Crimes Network has initiated a pilot program to find out who’s buying these expensive homes, which could cause high-end home buyers to lose their anonymity. The government is apparently doing this to track “dirty” money and to keep it out of the housing market, which is probably a good thing.
Finally, the short supply of affordable homes has led to a dramatic upswing in property rental prices and is causing multiple families to split the rent in single-family homes. Terry sees high rentals for the near future, but believes things will even out over time.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry addresses November 2015’s rising home prices and all-time highs in select markets such as Dallas, Denver, San Francisco, and Portland, areas that have fully rebounded to pre-crash levels, causing tight inventory and affordability issues. She sees inventory of “saleable” properties (those which pass the 4-point inspection and are otherwise desirable) as the biggest issue right now. Buyers want to buy but don’t want to over-pay.
And she still sees appraisals lagging the market, where comparable homes are hard to find, making home values hard to peg down. But buyers can work around lower appraisal prices by negotiating with the buyer or putting up the difference as cash, because the lender will peg to the appraised price.
She also addresses new home sales, which were up 11% in December 2015 due to seasonally warm temperatures, especially in the northeast. She attributes this to steady job growth, low unemployment, and an uptick in wages—all of which are positives for the home market. People are also still eager to lock in low interest rates, which is spurring home sales. The strength of the U.S. dollar versus the Canadian dollar is also driving some sales by foreign owners who are keen to cash out and repatriate funds back to their home countries. However, Terry believes in holding on to homes for the long-run rather than trying to run a quick profit.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Has the future finally arrived, and do we now have the long awaited self sufficient home? Terry believes we’re getting one step closer with innovations such as Amazon’s Replenishment Service where machines at home, such as printers or appliances, automatically reorder supplies when needed. For example, your laundry machine could automatically place an order for detergent when it’s running low—one less thing for you to worry about on your to-do list! Sounds kinda nice and promising and could help us cut down on a lot of routine chores.
Changing gears, more 55+ home owners now are selling and moving into rental properties, causing an increase in rental prices, particularly for high-end luxury rentals. This rise is attractive to real estate investors and is fueling a selective construction boom. The rental market is also attractive (and often the only option) for many people who were adversely affected by the 2008 economic downturn and who haven’t yet been able to qualify for a mortgage. Another reason rental properties are hot right now.
Finally, a lot of people don’t trust traditional FICO credit scores, causing online lenders, such as Social Finance of San Francisco, to switch to other measures of creditworthiness. These lenders offer personal, student, and home loans by looking at more forward-thinking credit measures and by discounting one-off factors, such as job losses during the 2008 crisis. These factors are often better indicators for predicting someone’s creditworthiness.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry updates us on the housing recovery’s “missing link”… and what she’s alluding to is the drop off in first-time home buyers. In the past, first-time home buyers have accounted for about 40% of homes bought, but that number has now dropped to about 30% – and that’s a problem… because if first-time home buyers don’t buy, then the number of move-up buyers reduces. So first-time home buyers are critical to building a solid base for the housing market.
When surveyed, 56% of 18-34 year old first-time home buyers wanted to buy a house but were not aware that they could do so with just a 3% down-payment – much less than the 16% down payment misconception many of these younger potential buyers had. So there’s misinformation amongst this critical group that is also holding the housing market down, and education is key. Many of these buyers also have fresh memories of the recent housing crisis, and that too is driving hesitation.
But as the employment picture brightens, first-time home buyers should step-up more boldly into the housing market. Moreover, most surveys indicate that housing should rise by about 3.5% in 2016, and that there’s little long-term downside from where home prices now stand. Prices now are also a lot more stable than they were before the 2007 crash.
Terry answers a listener’s question… about a do-it-yourself deed that has incorrect information – and what the new owners will have to do to clear up their deed – because a bad deed is a dead-stopper for a re-sale. Finally, Terry talks about a For-Sale-By-Owner situation and how the seller needs to work against a slew of people that are essentially against you, trying to beat you down on the deal. So FSBO only if you have a lot of information on home sales minutiae, else you’re simply better off getting an agent.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
This week, Terry talks about a return to “normal” in the housing market after the best-year ever since 2007. So Terry believes the home-buying market will stabilize and slow down a little after rising sharply higher over the past few years. With a strong jobs report and clear signs that the U.S. economy appears to be getting back on its feet, Terry expects more millennials to enter the housing market, just as baby-boomers downsize as they enter retirement. Builders, who had earlier targeted higher-priced luxury homes, now see a trend reversal that makes affordable construction more appealing – to match the increased number of lower-paying jobs. As a result, markets with the highest prices could see some cooling.
And while the Federal Reserve has raised short-term interest rates, long-term interest rates remain really low by historic measures and continue to support the return to normalcy in housing. Moreover, high rental rates – with many renters paying more than 30% of their income towards rent – might also spur a move away from rentals to property ownership, especially if more affordable homes come to market that require a smaller down-payment – because in 75% of the U.S., it’s cheaper to own a home than pay monthly rent.
Terry also addresses the shortage in supply of homes for sale – with inventory at just 5.1 months across the U.S. Anything less than six months is a seller’s market because there is less inventory, solid demand, and prices could be bid up, especially if your home sits in a desirable neighborhood. That said, it may not always pay to downsize if you live in a state that rewards home ownership through lower taxes, or where downsizing does not really improve your overall quality of life.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
The U.S. Department of Housing and Urban Development (HUD) has launched a new initiative called the Good Neighbor Next Door at HUD Homestore. Buying a home through HUD's Good Neighbor Next Door initiative is designed to encourage renewal of revitalization areas by providing an opportunity for law enforcement officers, firefighters, emergency medical technicians and teachers to purchase homes in these communities. HUD provides a substantial incentive in the form of a 50% off the list price of eligible properties, and bids for property must be submitted by a HUD-registered real estate broker.
HUD Home Store is the listing site for HUD real estate owned (REO) single-family properties. This site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale. In addition, registered real estate brokers and other organizations can place bids on behalf of their clients to purchase a HUD property. HUD Home Store also includes many informative user-friendly features providing advice and guidance for consumers on the home buying process. A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Many of these homes can be fixed to provide good value to buyers.
Terry also gives us the Housing Forecast for 2016 – new home construction and moderate gains in the existing homes market should push home sales to a record high in 2016 – so expect a solid year for the housing market – with price gains in the sustainable 3% range, and millennials buying about 30% of it all. Retirees are also expected to buy up a lot of retirement properties. Sales are expected to peak in prosperous job markets.
In her Real Estate Survival Guide, Terry talks about down payments… and that it would take 22 years for the average Floridian to save up for a 10% down-payment on an average home… pretty shocking! Terry also talks about whether Neighborhood Watch signs – and says it really depends on how you view it, especially if you only see those signs in a few select neighborhoods – so think positive, don’t be alarmed, and ask a few questions to make sure you’re not moving into an overly crime-prone area.
With Diane Oakley, Executive Director, National Institute on Retirement Security
While most Americans don’t save as much as they should, is the retirement savings crisis worse than we think? Of 38 million working age households, fully 45% do not have any retirement assets at all. And older Americans – between the ages of 55-64 - only have a median of $12,000 in their IRA or other retirement accounts.
Diane Oakley’s organization does research on America’s retirement trends and directly knows a lot about our preparedness as a nation for retirement - because she’s been involved in retirement planning, social security and related issues at the highest levels of government. Diane shares some rather shocking statistics on retirement. For example, while most people need a certain multiple of their income to maintain their lifestyles in retirement, 90% of us are grossly behind where we should be on retirement savings, in an era when “defined benefit” plans have been replaced by “defined contribution” plans – so we have no guarantee of the income we’ll have in retirement and are essentially left to sink or swim on our own. Wealthier folks generally tend to be better prepared for retirement with a stable “three-legged stool” that’s made up of an IRA, a 401(k) and a defined benefits plan… but they are in a minority. Most Americans, however, are way behind on their retirement savings – and needs to step up their savings for retirement.
Diane shares her thoughts on how much we should save per year to make sure we are prepared for retirement, as a percentage of our income, and the bare minimum we should have (as a multiple of last salary) going into retirement. She also offers tips on savings schemes that are matched by the government and should be taken advantage of so we can all better prepare for a dignified retirement as jobs also continue to get scare for older Americans, specially when economic growth slows.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Noted real estate veteran, Terry Story, talks about the importance of appraisals when you sell a house, and reminds us that we only need appraisals if there’s a mortgage involved, not if it’s an all cash deal. One in five home sale contracts get delayed over appraisal issues and of that, about 10% fail to go through.
Appraisals also have quantitative and qualitative aspects because an appraiser essentially compares the home for sale to similar properties in the neighborhood, and has to make changes for things such as an extra bedroom, a bigger or smaller covered area relative to the neighborhood median, the condition of the house, etc. So some of these adjustments tend to be approximations that are open to interpretation. For example, an appraiser may value an extra bedroom at about $2,500 but the market value of an extra bedroom is significantly higher. So when you see an appraised value, make a few adjustments of your own to reflect how the market might value differences. Additionally, appraisal values on intangibles such as, say, the views from a home, are also very subjective.
In her Real Estate Survival Guide, Terry addresses a rental scam where tenants paid the security deposit upfront, moved into an apartment where the owner purportedly lived abroad and regularly paid their rent, only to get an eviction notice a few months down the road because their rental was a bank foreclosed property, a rather common scam that targets foreclosed homes or property owned by persons living abroad. Terry’s sage advice? Always check public property records and do your homework before moving in.
If you’re in the market for a newly built home, move quickly because there typically is a lead time of at least three months before you can move in. Moreover, take advantage of still low mortgage interest rates before they start to move up. Finally, if you are selling a “smart” home, make sure you remove all your codes and passwords from the home’s smart devices lest that information fall into unscrupulous hands.
With Terry Story, 26 year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry updates us on real estate sales in the U.S. She says the Pending Home Sales Index has essentially stayed flat in the month of October, which is unusual after two straight months of declines. She attributes this to a shortage of inventory which makes it harder to sell more homes. Surprisingly, the Northeast saw the most dramatic price appreciation and constraint on sales than any other part of the country.
Flat October sales are also surprising because interest rates were at all-time lows, the U.S. economy was doing well, unemployment was down and mortgages were easy to get, often with as little as 5% down for home buyers with good credit.
Terry also discusses the impact of new mortgage rules. Realtors had a year to prepare for this new “3-day rule” and now work a lot harder to close a sale. The good news is this hasn’t really slowed down the home buying process in any discernible manner and is a win for buyers because it offers a lot more transparency. Moreover, as realtors get used to this new process, things should get a lot easier under the new rules.
And here’s a surprising bit of new census data: More millennials now live in their parents’ house than during the Great Recession of 2008. 31% of those between the ages of 18 and 34 now live with their parents, up from 27% a decade ago. Rising prices have also cut down on first-time home buyers because of higher down payments.
In the “Ask the Real Estate Pro” segment, Terry touches on “not cutting corners on permits”. A home owner wants to put a shed in his backyard but the permit process is stalled because the city is concerned over a setback. This is the space you need to leave between your boundary and any construction, perhaps due to utility easements, etc. Terry also says that despite the added time and cost, people should get their permits in place, especially if it’s about adding to the property. Not only will this keep the city from asking you to tear it down, it will also enhance your property value. Do not bypass the permitting process.
Another listener’s question is about a branch from a neighbor’s fruit tree hanging over the fence, dropping fruit and attracting pests. The listener has repeatedly asked the neighbor to cut the branch, but the neighbor refuses. Terry’s advice is to send a written note to the neighbor, and then trim that branch in a manner that causes no damage to the tree. The same applies to roots, but it’s better to consult an arborologist before whacking an axe at it!
With Terry Story, a 26 year veteran with Coldwell Banker located in Boca Raton, FL. For more about Terry Story go to terrystory.com
Terry updates us on the housing recovery’s “missing link”, and what she’s alluding to is the drop off in millennial homebuyers. In the past, millennials have accounted for about 40% of first-time home buyers each year, as they settle down, marry, have children, and look to buy a home. But the number of millennial buyers is down sharply this month – to just 32%. She believes this is due to factors such as student loans, rising rental costs that cuts down their savings for a down payment, etc. So most of the buyers now are move-up buyers who have built-in equity that they transfer from one home to another.
And while homes are not the best long-term investment (Warren Buffett did not get rich buying and holding homes for the long run), owning a home keeps you at par with other homes, which is another way of saying that your home price rises with your neighborhood, and this accumulation of home equity—where you pay down your mortgage monthly and see home price appreciation—gives you the freedom to relocate and buy another home. By comparison, renters do not see any equity buildup effects from their rental payments and need to have other backup sources of income to keep paying their rents.
Additionally, how do you choose which home to buy in a neighborhood you like? Do you necessarily forego buying an expensive house for something that’s less pricey, or are you better off buying a more expensive home? According to Terry, the least expensive home will see the most appreciation—partly through remodeling—that could deliver a significant upside in home value.
Should homebuyers talk to banks or specialist mortgage lenders? Turns out, mortgage lenders have a wider basket of products that can better suit your financial constraints, often at a lower mortgage rate.
Finally, Terry answers a listener’s question about living in a townhouse that shares a wall with a house that has a rat infestation problem. Terry suggests first checking with your homeowner’s association which is often responsible for common walls or writing to the absent neighbor to let him know there is a rat problem, or, if all else fails, treating the infestation and getting/suing the HOA or the neighbor for their share of the expenses.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
After a solid 2015 year-to-date, Terry tells us that the housing market is still going strong, with a shortage of good homes for sale and continued low interest rates that continue to drive prices higher, especially in choicer neighborhoods. Median home prices continue to rise, with a 5.5% year over year gain in the median price of $229,000 across the U.S. in the third quarter of 2015. But she also sees a bit of a slowdown taking place, which she views as good for the market in the long run so prices don’t go through the roof and create a bubble. Cities in California and Hawaii continue to top the board, with strong price appreciation in San Francisco, San Diego, Santa Ana, and Honolulu. Cities in the Mid West – Ohio, Illinois and other states - have seen the lowest appreciation. But the fastest home price appreciation in 2015 was in Terry’s turf of South Florida, where there has been solid job gains, little new construction, and foreign investments.
First time home buyers are being forced into buying a home faster than they may want to. Normally, millennials make up about 40% of first time buyers, but this number dropped to 33% in 2014 on high education loans and lifestyle choices such as the desire to settle down first and marry later in life. However, with rental rates rising faster than home appreciation and with interest rates still low, they see home buying as a better investment option.
Terry also talks about some good news for first time condominium buyers. New FHA rules now allow more homes to be FHA-approved, so buyers don’t have to cough up higher down payments.
In her Real Estate Survival Guide, Terry helps buyers become savvier, to better understand the negotiating process and the rules of the game. For example, sellers are under no obligation to disclose that they have other offers or to enter into discussions with the first bidder on a house. So offering full price or paying in cash is not a sure bet. And counter offers only hold if they are in writing, so skip verbal and have offers signed by all parties. Also, once the seller accepts the contract in writing, there is no backing away. So look to your agent to understand the rules of the game before you get into the housing market.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Getting a mortgage and how companies look at your credit history is pretty antiquated… but there’s change on the way… the new system will look at “trending” data with payment frequency and more relevant data – especially for younger borrowers with limited data history - that would help lenders make better decisions about the credit worthiness of borrowers – hopefully making the system safer over the long run.
Terry talks about the changing mindset of consumers. For example, adapting building design to tenant use in ways that are more practical to how business is done today. She also talks about how cities are beginning to think about things like driver-less cars and the culture of sharing, and how that would change city planning,
She also tells us why we have to fill out so much paperwork when we apply for a mortgage… basically because banks want to stay in the lending business, and not get stuck with collateral property.
In her Real Estate Survival Guide, a listener received notice that a utility wants to rip-up his fence and lawn, and wants to know if that’s legal. Terry’s response… when you buy a house, it comes with easements so utilities can service their assets; those are areas that home owners should not build on. If they do, the utility has every right to rip out the fence and access their easement, without having to pay a dime to the home owner for that new fence.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
This week, Terry begins by addressing the rise in state laws and ombudsmen offices to monitor and regulate Home Owners Associations. With a rising number of legal challenges and disputes between condominium and home owners and their Home Owners Associations (HOAs), many states are setting up offices to monitor, mediate and manage HOA – Resident relations. States recognize that fault often can lie with both parties – rule-flouting home owners or overly onerous HOA administrators who can sometimes be overly strict towards residents in the HOA.
Next, she talks about rising interest in older, less expensive homes as investors shy away from expensive new properties and look for higher yields in attractive older neighborhoods where rental rates are rising and homes are still reasonably affordable. Terry advises such investors to focus on location, location, location and look for qualities such as a high-performing school district, but warns investors to expect above-average prices in more desirable neighborhoods.
She also addresses the rising trend of home flipping as home prices rise across the U.S., with the most homes flipped for a profit in sunny Florida, according to Realty Trac. But, Terry warns, home flipping isn’t for everyone – you really need to know what you’re doing, have full grasp of remodeling expenses and hidden costs, and know how to contain costs by perhaps having your own team of trusted contractors. While the gross profit on flips averaged $66,000 in 2014, Terry warns that to make that profit, you need to be very efficient.
Finally, she discusses the pros and cons of renting versus buying. While some may argue that renters don’t have to pay for expensive ongoing maintenance and repairs, Terry points out that the landlord is ultimately an investor and he factors-in ongoing expenses into the rent you’re paying. So while you won’t have to pay to replace a broken appliance or a leaky roof in your rental property, these one-off expenses are factored into the rent you pay. Moreover, she believes that the financials of home ownership almost always outperform rentals, and home ownership is a great way to generate long term wealth.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry shares her insights… and her befuddlement on some recent US migration data which show that about 8.5 million people migrate each year from one metro area to another within the US. For example, the largest recent migration flow happened in Southern California where about 90,000 people moved from the Los Angeles metropolitan area to the city of Riverside which is only about 55 miles to the east of downtown LA. And 54,000 people moved west from Riverside to LA… so go figure!
Terry also talks about the recent October 3, 2015 changes in mortgage rules to favor consumers. It’s basically a 1,900-page new rule book that aims to increase transparency on costs and other issues related to mortgages. But the new rules will require new hiring and administrative overhead and are expected to hike lending costs from about $4,500 to $7,000 per loan – and buyers and sellers will likely end up footing the bill for these added costs.
And with El Niño raising its head, many regions across the U.S. may need to brace for more storms. The Tampa Bay area is ranked as the most vulnerable with potential for $175 billion in losses, followed by New Orleans at $130 billion and New York City at $100 million.
With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
So with the housing market doing pretty well, Terry sheds some light on why people buy and sell their homes and key factors of what's driving home sales. The #1 reason for sellers appears to be “I’m just tired of it” as people accumulate junk through the years, tire of the same old layout, have no desire to go through renovations and are basically just done with the home and looking for a change. The #1 reason for buyers, at least right now, is that mortgage rates are still at all-time lows – under 4% - rates we last saw in 1971! Moreover, home prices still appear reasonable, especially with the lower mortgage rates.
Now, with the economy bouncing back, people feel more confident – financially – and have recovered some of their losses through the 2008 recession – so they are more comfortable with making the financial commitment, have an employment and salary history that can get them a mortgage, and have money saved up for a down-payment, which no longer needs to be as high as 20% but is down to single-digits, especially for those with good credit.
People are also buying and selling homes because of changes in family circumstances – births, deaths, families merging together, etc.
And the #1 mistake when you’re buying a new home or building a custom home is over-building! With the average cost of construction at about $105 per square foot, shaving off even 500 square feet is about $50,000 in savings. Not to mention the maintenance, furniture and fittings. People should also think of resale value and look at whether people are really looking to buy a 5,000 sf home. In the same vein, holding back on upgrades can save you money that can be better used on must-have features. And stay on top of the process.
Terry also talks about millennials becoming a more important demographic as 10,000 baby-boomers retire each day and are looking at down-sizing – eyeing some of the same properties that younger millennials may find attractive, and winning out with greater buying power.
With Pamela Dennis, Author of Exit Signs: The Expressway to Selling Your Company with Pride and Profit
Pamela has worked with amazing leaders and their organizations for over 35 years: from emerging companies and small, closely held partnerships to global Fortune 100 firms. She knows the challenges of diverse industries in growth times and in downturns. Pamela also built and led an international consulting business that received recognition for its own growth and impact. She sold that business after nearly 20 years and the firm continues today -- profitably, with new and legacy organizations in the US and internationally. That experience is the basis for her book, Exit Signs.
In the next five to ten years, millions of small and mid-size business owners – aging baby boomers - will try selling a small business. But an astonishing 87% of them don't have an exit plan. If you've been waiting to make a plan to transfer ownership of your business, then this is the book you've been waiting for. Exit Signs is about both the tactics of selling and the transitions of leaving. It gives you a step-by-step map for selling a small business in a way that produces the profit you've dreamed about. These steps bring you confidence and pride knowing your company will be in solid hands and they give you greater serenity about the next chapter in your life. For any type of owner and any type of business now is the time to let Exit Signs help you onto the expressway towards a great sale.
As she puts it, there are 22 million small businesses and less than 50% have an exit strategy – partly because they are all consumed with growing their baby, partly because they don’t think this is the right time and partly because they’ve never thought about selling a small business. And with small businesses making up a large percentage of American payrolls, a disastrous sale potentially impacts millions of jobs.
She also talks about steps such as financials, customer retention, bench strength, operational efficiency if the owner leaves and other steps to make sure the company succeeds even after the owner leaves.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Home buyers, millennials and the rest of us, often have Buyer’s Remorse. Terry talks about the Top Buyer’s Remorse Issues with post-purchase regret. Believe it or not, topping the list is “my house is too big” – especially when their utilities jump up in the bigger home with higher electric, gas, heating, cooling, watering bills, cleaning area, etc.
The second remorse is “layout awkwardness” so make sure the home’s layout matches your needs. Also make sure you don’t get caught up in fancy new millennial trends that are like passing fads and make your home less saleable down the road. Many, especially physically active millennials, love the pool at first but soon figure out that it’s more a liability and an ongoing cost, without much use. Granted, pools do help with resale value in certain regions of the U.S. but not necessarily across the country.
There’s also some good news, buying a home today is 48% more affordable than in 2006 – this despite home prices outgrowing wage increases, largely aided by significantly lower mortgage interest rates today compared to 2006 – that lead to lower monthly payments, making home more affordable.
98% of Americans now have cell phones and people are increasingly getting rid of landlines and even setting up their alarm systems through cellular connections. So it’s important to make sure you buy a home in an area that is well served by mobile service providers, and gives you at least two options when choosing land-line based Internet service, with at least one fiber optic provider so you can get the blazing fast Internet speeds you need to work and play. You could even be in a city like Manhattan or San Francisco, and still face connectivity issues – so make sure you check this out too before you buy, in this increasingly interconnected world.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry covers four key aspects related to housing – recent consumer-oriented changes that impact mortgages, a question on unauthorized property alterations by a tenant, whether it’s better to rent or buy, and the reasons that people tend to want to move out of their homes and neighborhoods.
The Consumer Financial Protection Bureau just put out a new mortgage initiative – the Know Before You Owe mortgage disclosure rule - designed to help consumers understand their loan options, shop for a mortgage that’s best for them, and avoid costly surprises at the closing table. The Know Before You Owe mortgage disclosure rule replaces four disclosure forms with two new ones, the Loan Estimate and the Closing Disclosure. The new forms are easier to understand and easier to use. The rule also requires that you get three business days to review your Closing Disclosure and ask questions before you close on a mortgage. So to make sure the closing process goes smoothly for you, it’s important to know how this rule will affect you as a mortgage buyer, and help you choose lenders and realtors that are aware of and well prepared to handle these changes on your home mortgage process. The bottom line is that consumers will now know their closing costs and all relevant numbers three days prior to closing - for better consumer awareness... but be prepared; the rule went into effect October 3 and it’s going to be crazy initially as computer systems changeover and people get comfortable with the changes.
Terry answers a listener’s question about a tenant who made changes to a rental property without written permission from the owner – that’s a big no no, by the way – such changes are clear grounds for eviction and you shouldn't expect to get reimbursed for the changes you made... so it's important that landlords and tenants are aware of this. Major property repairs typically are the landlord's problem, so if you encounter something serious, don’t take it upon yourself to fix it… but contact your landlord first, and know that you can also use this as grounds to cancel your lease. In a nutshell, know your rights and your limitations.
Is it better to rent or buy? There is no right answer and it really depends on your financial situation and where you live... some locations and situations favor ownership, others are closer to breakeven between owning and renting – so there is no straight answer but view this in context to where you live.
And lack of space appears to be the #1 reason people want to move, followed by maintenance related issues (too old, not well maintained, chronically problematic plumbing, etc.), noisy and unfriendly neighbors, messy yards, too many fast-moving vehicles on their street, houses that are too close to each other, or being too far from retail – the reasons runs the gamut.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Even Web-Savvy Millennials Prefer A Face To Face On Their Home Buys
Here’s something that’s pretty counter-intuitive… the abundance of online information has actually driven up demand for the face to face real estate agent – from 83% in 2010 to 88% in 2015. Part of the reason is that there’s just so much information out there that it’s hard to tell truth from fiction and marketing hype, so buyers, including younger, web savvy millennials are using their online research to select experienced agents that can hold their hands through likely their biggest expenses ever – a home purchase.
There’s also the issue of changing real estate and mortgage laws which buyers have a hard time keeping up with, and naturally see value in using an agent that’s up-to-date on all the regulations and is on-hand to help with negotiations and answer questions face to face.
And with rising unemployment, demand for housing continues to be strong, especially in more desirable areas. So higher prices are pushing buyers out to cheaper areas away from city centers and commuting distances appear to be rising. Tight inventory is also capping people that want to sell and trade out or trade up, so it’s a bit of a Catch 22, which is why new home construction could be the answer to alleviating the crunch in housing.
with Robert Laura, Financial Planner, Author of Naked Retirement: Living A Happy, Healthy, & Connected Retirement
Robert discusses topics he details in his book, “Naked Retirement” which aims to prepare people for retirement – not just the financial aspects of retirement but, more importantly, the non-financial aspects that can make all the difference between a good and a bad retirement. Everyone dreams of retiring, they see it as this Holy Grail when they’ll finally live the life they’ve always wanted… but sadly, only 40% of all retirees find happiness in retirement. There are tremendous positives to retirement but there is also a dark side… with depression, suicide, stress, loss of meaning, etc.
So, in conversation with Steve, Robert shares the essence of his book and lays out the kinds of topics that people heading into retirement should think about ahead of time so they can make the most of their golden years. Robert offers simple exercises and worksheets that people can use to prepare themselves for this next phase of their lives where they are unburdened by distractions such as going to work, taking care of children, etc., and often end up not knowing what to do with all this free time unless they plan ahead.
Now I know that a lot of my listeners and clients are well on their way to a comfortable retirement and are living fulfilling lives with all the joys of a steady job or business, a nice house of their choosing in a good neighborhood, and a good lifestyle with material and social comforts such as the ability to dine at nice restaurants, take nice vacations, socialize with wonderful people and indulge their desires for things like comfortable cars, elegant home furnishings, etc. - things that are nice to have and make for a rich, comfortable and fulfilling life.
There are joys to buying new cars and high quality name brands, but only if you've got everything else taken care of.
That said, I also routinely meet people who have had steady, well paying jobs but have still not managed to save enough for retirement, and are worried about their financial future. And when quizzed about what they did to not be financially secure, I often see the same pattern repeated over and over – with unwise financial moves – mostly out of ignorance or an overly carefree live-for-today attitude – that kept them from saving and regularly investing for a financially-secure.
There are joys to buying new cars and high quality name brands, but only if you've got everything else taken care of. In the meantime, be smart, pull yourself together and get in great financial shape.
So here's a list of eight unwise financial moves that I came across in an MSN Money article that I wanted to share with you today. But before that, let me stress that some of these moves, like buying a fancy new car, do not apply to people who are financially secure but to those who don’t have enough savings and need to save more so they can build a comfortable nest egg.
8 Tips to Get Your Finances in Order
- Borrowing to buy depreciating assets
Problem: Your IOU becomes an OMG when your purchase loses value. That’s why the housing crisis was so devastating to many families. Everybody with an underwater mortgage – meaning they suddenly owed more than their homes were worth – learned this the hard way.
How to avoid it: While homes typically increase in value, we generally know beforehand what’s going to lose value – almost everything. And borrowing money to buy things that decrease in value — like cars — is simply compounding the loss. That’s why — ideally — credit should be used only to buy those few things that generally increase in value: a house, an education, or maybe a business.
- Buying a new car
Problem: If consumers want to feel smart, they comparison shop, kick a few tires, and talk to a few salespeople in an attempt to get a decent deal. But even if they drive the hardest possible bargain, that new car is still guaranteed to lose thousands of dollars in value the second they buy it and drive it off the lot.
How to avoid it: For starters, buy used, preferably from private sellers. And there is something of an art to finding a great used car. Check out tips and resources online with a search on “Tips for Buying Your Next Car for Less” or “Things You Should Check Before Buying a Used Car.”
- Saving while in debt
Problem: Savings provide a sense of security, but if you pay more interest on your debt than you earn as a return on your investments, you’re going backward. One possible exception could be debt that comes with a tax benefit, such as mortgage interest or some student loans.
How to avoid it: As a rule of thumb, use low-interest savings to pay off high-interest debt. The reverse will gradually reduce your net worth. But don’t sacrifice peace of mind. If you’re in danger of being laid off or expecting a big expense, and retaining cash helps you sleep at night, that’s worth factoring in.
- Buying name brands
Problem: In some cases, name brands are worth the extra cost.
With John Rekenthaler, (http://www.morningstar.com/advisor/authors/john-rekenthaler.htm) Vice President, Research and Columnist with Morningstar
John built Morningstar's retirement advice business from a start-up operation into one of the largest independent advice and guidance providers in the retirement industry, reaching more than 10 million participants and 63,000 plan sponsors. John also helped develop Morningstar's proprietary methodologies such as the Morningstar Rating for mutual funds, and earlier directed Morningstar's investment information products for variable annuities.
John walks us through the history and evolution of the mutual fund industry over the past 60 years – from a murky industry with gimmick funds and questionable charges once as high as 8% and sales fees of 1% per year in perpetuity. Then things started to get more competition-driven with the advent of no-load funds, greater regulatory scrutiny and greater transparency. ETFs helped put more pressure on the industry, with lower cost and greater diversity to help investors better customize and manage their portfolios.
With Terry Story (http://www.terrystory.com/), 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
With almost sure signs of an interest rate hike in 2015, the housing market continues to stay strong with mortgage applications up 11% and refinancing up 17% as people move to cash in on low mortgage rates before they go up. There’s a line of buyers and a shortage of supply, and recent stock market volatility appears to have unfazed home buyers.
So there is strong demand for new homes to fill the inventory gap… but builders don’t appear to be ramping-up supply because profit margins on lower end homes aren’t compelling enough for builders who remain focused on higher-end luxury homes.
Federal Housing Administration home loans are getting a tuneup, with many changes going into effect Oct. 4. Under new rules, potential borrowers will likely save thousands at closing. But those monthly mortgage payments will be a little higher. Terry talks about the new rule that is easier for consumers to read and understand, but could disrupt and extend home closings – so buyers and sellers should plan on some turbulence as these new rules settle into the home buying ecosystem, and pick lenders that can handle this transition.
With Greg McBride, Chief Financial Analyst, BankRate.com (http://www.bankrate.com/)
BankRate.com (http://www.bankrate.com/) recently reported results from their survey on whether Americans were saving more or less towards their retirement accounts such as 401(k) and IRA. The good news is that 20% of all working Americans are socking away more towards retirement than last year… and there’s been a 50% drop in Americans who have not upped their savings… so that’s all positive.
But there are trouble spots – with 10% saying they did not contribute towards retirement this year or last year – and that’s the highest in five years… so it’s a mixed report. Part of this can be fixed with workplace retirement plans and auto-enrollment. Moreover, contributions should go up as you near retirement – seamlessly and automatically, straight off the top before you get your hands on that money. So tune in to see how and why you should not ignore your nest-egg today.
With Terry Story (http://www.terrystory.com/), 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Home sales continue to rise, at record highs, and good homes get snapped up pretty quickly. So, what should you do as a seller looking to trade up? Should you buy before you sell your primary home? And are you ready to stay in a “temporary” home for a considerable period of time until you buy a home that’s right for you, at the right price?
And how will an increase in interest rates impact the housing market? Will higher rates kill demand or continue to pull in buyers attracted by near record-low rates? Are housing trends strong across the U.S. or in small pockets? And will the recent rout in stocks drive people to invest in homes as a rush to safety?
With Terry Story (http://www.terrystory.com/), a 25 year veteran with Coldwell Banker located in Boca Raton, FL
BankRate.com recently released results from a survey that placed Real Estate as the #1 investment choice for American consumers when asked what they considered the best investment vehicle for money they could tie up for 10 years or longer. Real Estate was comfortably ahead of stocks, which placed third. Though American consumers are still concerned about jobs and the economy, survey respondents mostly feel good about their personal finances.
27% of the survey’s respondents picked real estate, 23% picked cash investments (savings accounts, CDs, etc) and the stock market came in at 17%. Precious metals were at 14%. Bonds were farther down at 5%. 8% didn't like any of the choices, and 7% didn't have an answer.
Terry tells us why she isn’t surprised, and why she is delighted, by the survey’s results. That said, on the show last week, Greg McBride of BankRate.com (http://www.onthemoneyradio.org/results-are-in-stocks-better-than-real-estate-cash-and-gold/) also explained why investors must really consider stocks for the long run as their best bet to wealth creation.
Terry also tells us how lenders are relaxing standards and dropping credit score requirements significantly to encourage home ownership. And gives us the latest home improvement trends in American homes.
With Terry Story (http://www.terrystory.com/), 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Real estate has been on the up and up, and existing home sales and prices have now surpassed 2006 levels which was near the height of the housing market. This past spring was the hottest selling season since the downturn, and the momentum has continued into the summer. Home sales and median prices have risen sharply over the past year, pretty much across the U.S., and the West Coast is still the most expensive place to live in with prices up almost 10% over the past year. So affordability is now becoming a bit of an issue because higher prices also mean higher monthly mortgage expenses and increased home price appraisal issues.
But rising home prices offer a lesson, especially for folks that lost their homes to foreclosure – that it pays to carefully evaluate your finances… and only buy a house you can truly afford to pay off, even through downturns and periods of extended unemployment. So folks should consider holding-off on buying that dream house… unless they can really afford it.
And there’s change afoot. Effective October 3, 2015, banks have to give their documents to a buyer at least three days before closing – to give them a chance to review what they are signing. While this is a good consumer rule, ground reality reflects last minute changes all the time… so this rule is going to push out closings and upset home moves initially, but things should iron out over time.
with Ian Kennedy (http://simplesmartinvesting.com/), Former Director of Investment Research at Cambridge Associates and Author of “Simple, Smart Investing”
Ian Kennedy served as the Director of Investment Research at noted equity research firm, Cambridge Associates, for several years and has studied market movements and investor performance through multiple bull and bear markets. Ian has compiled his insights in a new book titled “Smart, Simple Investing” where he walks investors through the pitfalls of investing and the secrets to doing it right. Steve likens his book to a “How to Invest Guide - For Everyone”, with nuggets of wisdom that Steve wholeheartedly endorses for the most part… heck, Steve should’ve written this book but Ian beat him to it!
In this segment, Ian discusses the pros and cons of letting experts manage your money, what to look for when selecting a financial advisor, what you need to know to succeed as a D-I-Y investor and how best to diversify your portfolio in a global world. He also busts widely prevalent myths on investing and shows you how to cut through the noise to focus on long-term investment success. This 12-minute segment could significantly change the way you manage your money - the simple, smart way.
With Terry Story (http://www.terrystory.com/), 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Often times as we move or upgrade our homes, we are faced with a choice – do we sell the house or do we rent it out? Terry sheds light on how to rationally approach this question - with pros and cons that cover hard financial facts and the softer side of successfully being a landlord. While passive income is great – and being a landlord seems like an easy way of doing so – don’t be fooled. Real estate comes with a lot of risks such as non-payment of rent, long terms of vacancy between tenants, maintenance, physical inspections, tenant violations, etc.
So real estate involves expenses you cannot escape such as property taxes that must be paid irrespective of whether you have the property rented out or not. So before you jump in, consider the alternatives, such as stock index funds where you literally don’t have to life a finger and can see your investment grow steadily over time.
And, switching gears, home prices were rocketing higher at about 12% annually but seem to have tapered off to about 4% to 5% annually. So is this a slowdown or is this a healthy taper? And with prices up so much, are we now in a housing bubble and is a crash on the cards or will prices continue to rise sustainably for the foreseeable future?
With Terry Story (http://www.terrystory.com/), 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Believe it or not, most people looking at buying new homes in the U.S. have one must have that’s on top of their list… and that’s… high speed broadband… of all things, especially in rural and less connected parts of the country… either because they need that broadband connection for work or simply, more likely, just want to watch Netflix!
And as home sales continue to rise, especially as rental economics make less and less sense, there’s good demand for homes. Easier lending standards have made it easier for more people to now get loans, even people with lower than ideal credit but good employment histories. In addition, with home prices now well above what they were in 2008, home equity loans are again back in fashion – with competitive rates and interest only loans for the first 10 years of the loan.
Finally, Terry answers a listener’s question about whether a hot-tub needs permission from your HOA.
With Donna Rosato (http://time.com/author/donna-rosato-3/), Senior Writer at TIME MONEY on Career Strategies, Retirement Planning
Donna Rosato advises older listeners on how they can land jobs and get back into the workforce as a second career, probably with fewer hours. It is all about embracing change and being willing to try your hand at new skills. But even in this improved job environment, jobs are not going to fall into your lap like manna from the skies. Instead, Donna talks about key job seeking strategies and what job seekers should do to improve their chances at landing the jobs of their dreams. She also addresses new social media like Facebook and LinkedIn and how effective they are in helping folks find jobs.
She also addresses common concerns where people want to work beyond retirement age but don’t want to do something that’s well below their skill sets (down shift), or want jobs that give them more flexibility such as having fewer working hours so they can strike a good balance between working and being retired.
Last week, I spoke about low interest rates and how investors could adjust their fixed income holdings to prepare for the inevitable uptick in interest rates.
See, it’s been nearly a decade since investors have had to contend with the Federal Reserve raising interest rates. And, going by recent comments by Federal Reserve Chairwoman – Janet Yellen – the Fed will almost certainly raise interest rates by a notch – 0.25% - sometime in the second half of 2015, with Fed watchers expecting a rate hike in the September timeframe. Economists then expect the Fed to raise interest rates in a measured manner, leaning on the side of caution so as to not upset our recovering economy.
So, with an uptick virtually a sure thing, it’s time investors prepared their stock portfolios for a rising interest rate environment.
Arguments for a Continued Bull Market
Ultra low interest rates have led to extensive low-cost borrowing, and this borrowed money has been plowed into investments that have powered the stock bull market since March 2009. So what happens if money gets more expensive when rates go up?
On the one hand, strong unapologetic bulls say the stock market believes in Janet Yellen and her accommodative monetary policies, and believe a gradual raising of rates will continue to drive and improve the U.S. economy… which they reason, will drive stronger corporate earnings and, consequently, take share prices even higher. And these bulls point to the fact that historically, some of the best and most consistent stock market returns occurred when interest rates were rising from very low levels – much like the current scenario.
What's more, market bulls note that one of the biggest threats to stocks and bonds in the long run is high inflation. So if one of the motivators of a rate hike is to battle the threat of inflation, then inflation is less of a concern… so, in theory, that should hold down longer-term interest rates and bolster stocks.
What the Bears Say
In the opposing camp are analysts who have studied the impact of central bank policy on markets. They note that, historically, the stock market's performance is dramatically better when the Fed is in an expansive period and lowering rates to enable cheaper borrowing than when it’s in a restrictive period and raising rates to raise companies' borrowing costs and head-off inflation. In this higher or rising rate environment, cash and new bonds pay more, offering more competition for stocks.
And although some bulls believe the Fed will stop raising rates after just a few small rate hikes, analysts believe that it's not the level of rates that matters but the direction they’re headed in.
It's also worth noting that the global economy and markets have never been in the situation they're in today, which makes it tougher to imagine what's next. For one, even if the Fed begins to raise rates, central banks in much of the rest of the world — including Europe, Japan and China — show no sign of following suit. That could act as a weight on U.S. bond yields if foreign investors turn to the U.S. for better yields because their buying of U.S. bonds could hold or drive-up prices and weigh on yields.
But while I don’t think investors should abandon U.S. stocks just because rates are going to go up, I do want you to prepare for a rockier road for equities as the economic expansion ages, specially with many stocks richly valued relative to earnings.
So look at your holdings and consider selling or hedging stocks that appear rich or over-valued, and consider focusing on many fairly-valued stocks, including some big name U.S. stocks that benefit from economic growth at home and abroad.
Now, another factor to keep in mind is that rising interest rates could lead to a stronger dollar and this makes U.S. exports more expensive for international buyers and reduces repatriated corporate earnings when the dollar is higher than most other currencies.
A Trust isn’t just for people with a lot of money but quite simply, for anyone with an interesting life...
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
A recent report alluded to the Silent Housing Crisis that spoke about rising rental prices, specially places like San Francisco and New York where renters are paying 30% to 50% of their income to stay in rented houses – that’s a lot! But builders see this, and have responded by ramping up the construction of multi-family homes. Even so, new home supply takes a while before it’s available for rent but new rental construction, especially in hot markets, should alleviate the Silent Housing Crisis when it comes to rentals.
In other news, first-time home buyers are jumping into the housing market in record numbers – partly helped by low interest rates, down payments as low as 3% to 5% and a relaxation of credit rules to enable easier but not riskier home loan origination. But borrowers beware, lenders have little tolerance for lies on home loan applications so make sure you don’t try and game the system.
Interest rates aren’t likely to rise too fast, likely stay in the 4% range on 30-year loans for 2015, which looks like free money compared to rates of 16% and more in decades past.
John’s passion for investing began at age 12, when his father began buying him stocks as Christmas and birthday gifts.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
As part of the sale and purchase of a home, families move in and out of houses all the time. And while moving may seem trivial, Terry has a few surprising stories on how people paid a price by not being fully aware of contract terms and insurance coverage on the move. In one instance, a moving truck caught fire and someone lost all their belongings, with no recourse to insurance! Others paid a lot in additional fees to place their belongings in storage. In April 2015, there were over 3,600 complaints, 351 investigations and 11 arrests for wrongdoing… and that’s just in Florida alone! So while there are reputable moving companies, there are shady operators out there too, so tune in to get Terry’s tips on how to protect yourself while moving.
Terry informs us that people are also changing how they approach home buying… millennials, for example, prefer homes that support their values, healthier lifestyles and the environment – and view homes in ways similar to how they view investing in the stock market. Finally, Terry tells us who’s responsible for home related damages on golf-course facing properties.
As my listeners undoubtedly noticed, there’s a lot of drum-beat now on whether we are in yet another bubble. So here's Part II.
There’s little sense in draining accounts to help your child with a home purchase if the costs and risks are just too high. Terry gives us other practical and viable alternatives.
When the best sales happen on various big ticket items – things like cars, furniture, mattresses, appliances, computers, cruises, airline tickets and more.
Terry talks about the three questions all buyers must ask themselves before buying a home including the non-financial aspects on why you really are making this decision.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Good news on housing - a new Index says the housing market is the healthiest it’s been over the past 15 years based on parameters such as employment, demographics, house prices, etc. The 10 healthiest markets have a few surprising names – with three of the top 10 in the state of Pennsylvania. So is your market on the Top 10 list?
Data also shows that pending home sales have been surging. It’s a forward looking indicator that reflects pent-up demand and market strength, despite a really slow housing market in the winter-struck Northeast in Q1 2015 and the lack of housing supply. The lack of housing supply is significantly tied to many home owners slowly overcoming their negative equity situation. And with more buyers and tight supply, this again is a sellers’ market.
With Rochelle Ohrstrom, Artist, Author - Ponzi & Picasso
Rochelle Ohrstrom is a familiar figure in the New York art world, in roles as diverse as artist, patron, and collector. Her novel, Ponzi & Picasso, tells the story of an esteemed New York art dealer plagued by greed. Ohrstrom fills us in on the story of art fraud, what it takes to set record sales, and how to invest in art - what makes a good investment and how to know if it will hold value.
With Mike Offit, Wall Street Veteran in Mortgage and Asset-Backed Securities, Author – Nothing Personal, A Novel of Wall Street
Mike Offit spent 30 years on Wall Street, primarily in the commercial mortgage and asset-backed sectors. In his book - Nothing Personal – Mike pens a literary financial thriller that follows the path of a young gun from business school to Wall Street, where his meteoric rise is boosted by a series of sudden and brutal murders. The novel, set in the 1980s, takes the reader inside the manipulative, vulgar world of Wall Street, set in contrast to the genteel, old money and high WASP enclaves from Florida to Maine.
He offers details on how major firms operate and take advantage of markets, regulators and their clients, and pulls you into a world of money, lust and murder where morality struggles with greed for the ultimate winning hand - reality shaped into a compelling fictional account with a lot of truth on what really happens in the murky world of big money and banking.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Pending home sales were up in February 2015, to its highest level since June 2013, with gains in the Midwest and the West offsetting declines in the Northeast and the South. The rise was attributed to a steady improvement in the labor market and continued low mortgage interest rates. Additionally, the National Association of Homebuilders’ Sentiment Index was up four points to 56 in April 2015 from a revised reading of 52 in March. This reflects growing home builder optimism that sales will perk up in the spring home selling season. In parallel, inventory continues to be low and is holding down sales. Buyers are also divided between urban rejuvenation and moving to the suburbs.
While employment prospects are solid, wage growth trends are keeping a lid on home affordability where home price gains have far outstripped wage gains. Sales of vacation homes is also booming, up 57%, to about 21% or one-fifth of all homes sold, primarily driven by stock market gains – but vacation homes tend to be restricted geographically so only a few select regions have gained from this trend.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
As part of her Real Estate Survival Guide, Terry facetiously cautions listeners against buying a home with a sibling and, on a more serious note, says having a written agreement is key when buying a home with a sibling or friend. Many of us love our siblings and close friends, and are often tempted to jointly buy real estate with them – things such as vacation rentals or small commercial properties. Terry acknowledges this reality but dips into her experience to warn you of things that can and do go wrong, and what you need to think of and clearly have in writing before you jump into these joint deals – issues such as property Title, who’s going to be responsible for maintenance and upgrade costs and supervision, etc. She helps you think it through and tells you what to discuss beforehand, which could make you decide against buying property jointly or protect you in a manner where expectations and responsibilities are well documented so as to prevent conflict down the road.
Terry answers a renter’s question on damage to a condo through no fault of his, and lays out this renter’s options while also offering precautions all renters should take to protect themselves.
And, it appears, property bidding wars are back! 33% of all recent home sales were above asking price – driven by a lack of inventory and low mortgage rates. Terry gives us tips on how buyers can negotiate these ‘wars’ to improve their chances of winning a property without being the highest bidder.
With Gillian Zoe Segal, Author – “Getting There: A Book of Mentors”
In her book – Getting There – Gillian shares the secrets to navigating the rocky road to success from thirty leaders in diverse fields, including Warren Buffett. In an honest, direct, and engaging way, these role models describe the obstacles they faced, the setbacks they endured and the vital lessons they learned. They dispense essential and practical career advice, and priceless wisdom applicable to life in general. ‘Getting There’ is for everyone - from students contemplating their futures to the vast majority of us facing challenges or seeking to reach our potential.
Gillian says her discussions with Warren Buffett were life changing, for the simplicity with which he made her see things and the wealth of his wisdom. She shares highlights from her conversation with Buffett, and how she’s passed this wisdom on to her friends and loved ones… with Buffett quotes such as “you can always tell someone to go to hell… tomorrow!” and what he really means. She shares several incredible nuggets from her conversations with the leaders she interviewed, and highlights the top traits that these 30 incredible leaders share.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
New home sales were up 7.8% in February to a seven-year high, with a seasonally-adjusted rate of 539,000 that is the closest they’ve been since a pace of 593,000 in February 2008. New home sales reflect consumer optimism and are an indicator of future purchases of consumer durables such as appliances and furniture. The report was well ahead of analyst estimates and bodes well for new home sales in 2015. The median price of February new home sales was $275,500 and inventory stayed tight with 4.7 months of supply. Existing home sales were up 1.2% in February. Moreover, with weak Q1 economic data, the Fed will likely not raise interest rates before September 2015 so mortgage interest rates will stay low and could further boost the housing market, just as lenders relax rules and make getting a mortgage loan much easier.
Another report said that 1.2 million borrowers regained the equity in their homes – which means they now live in homes that are worth equal to or more than what they paid for the home. Additionally, rent-to-own appears to be making a comeback… so those are other encouraging statistics tied to jobs, housing and mortgage affordability.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Much of America transacts online one way or another – either through Internet connected computers or smartphones – and now, the real estate industry appears to be finally heading in that direction too, to some extent. While sites like Zillow.com and others provide real estate information, mortgage choices, etc., there now appears to be some sites that let you buy a house online too! So are real estate agents soon going to be a thing of the past?
People’s home-buying requirements are also changing, with a sharp move towards energy efficiency, smart homes, etc., so they can cut down on utility bills – especially with younger buyers. So this creates another conundrum - will aging baby boomers’ homes suit millennial buyer preferences, or are we at the cusp of a dramatic overhaul in the housing market as supply and demand fail to find common ground?
A lot of people work hard, live prudently and save diligently to build-up wealth but they often pay little or no attention to preserving this wealth for their survivors and heir and don’t fully think through the consequences of accidental disablement, ...
On February 23, 2015, President Obama proposed stricter regulations on investment brokers who handle retirement funds to limit hidden fees, “back-door payments” and conflicts-of-interest – in a bid to reduce the costs associated with investment fees, expenses and biased investment advice, such as when some advisors steer clients into funds that pay high kickbacks but do not deliver superior returns.
This is Obama’s revival of an effort quashed by industry opposition four years ago – and part of his renewed focus on a populist economic message.
Proposed Changes
The proposed rule, which Obama can put in place without congressional approval, would require financial advisors to act as what the law calls “fiduciaries” for their clients and put clients' interests ahead of other factors, such as their own compensation or company profits.
Currently, advisors are required to recommend investments that are “suitable” for client portfolios… but that leaves considerable room for abuse.
The new rules are expected to target the market for rolling over 401(k)s into IRAs. 401(k)s generally have lower fees but IRAs offer a wider range of investment options, including annuities, and usually include higher fees. This rule change is prompted by a shift in most workers' pensions from so-called defined benefit plans managed by professional investors to 401(k)s and IRAs that call on individuals themselves to make investment decisions.
The Obama administration says a retiree who receives "conflicted advice" in a rollover could lose about 12% of his savings and this adds up to about $17 billion in lost returns in IRAs each year. With compounding, losses build to tens of thousands of dollars for average workers. High fees drag down returns, which means less money to spend in retirement.
But financial services’ industry officials dispute those estimates, saying the losses are smaller. Opponents argue that these rules could prevent investors from receiving important advice and dictate how firms compensate their employees.
The final wording of the proposed rule changes isn't expected for a few more months and a lot hinges on how it is worded and what exceptions are allowed under the new rules. The new version will include exemptions and would not prohibit revenue-sharing or commissions, or dictate how firms pay their advisors.
FAQ… What You Need to Know
Shortly after the announcement, the Los Angeles Times ran a nice Q&A piece on what these changes really mean for average American investors.
Doesn’t the current rule put clients' interests first?
Under current standards, investment advisors are required only to ensure that investments are "suitable" for their clients, a lower standard that doesn't preclude advisors from making recommendations that may allow them to steer clients to higher-cost or lower-return investments that may pay the advisor more in commissions.
What's the new rule?
The new rule would turn advisors on a range of new transactions into fiduciaries, making them liable if they put their own interests ahead of their clients, for instance, when handling rollovers of 401(k) plans to individual retirement accounts.
Why would anyone be against that?
The financial services industry, which has fought the rule change vigorously, argues that it would restrict access to investment advice to those who need it most - lower- and middle-income workers and retirees. They fear that the new rules will prohibit transactions in which an advisor takes a commission or other payment, and would require individuals to pay upfront for investment advice, thereby sharply limiting the number of people who would get it.
Proponents say the new rules will allow commissions but simply require that advisors be held to a higher standard when making recommendations.
But, irrespective, I think we should do all we can to reduce conflict of interest… and focus on making sure Americans save as much as they can,
With Terry Savage, Nationally Recognized Expert on Personal Finance, the Markets and the Economy, Author – The Savage Truth on Money (Amazon.com bestseller)
Are winds changing for gold? Gold has traditionally been a safe haven; a store of value that’s traded in all currencies. This precious metal saw a sharp 18% jump in price recently, with many wealthy Japanese, Europeans and Russians buying into gold. What’s behind this jump? Is it trading noise or are there fundamental reasons behind the rise? And what are some funds that help you invest in gold against your home currency, without holding physical gold? Terry Savage tells you how!
She also talks about the next innovation in free mobile financial transactions that helps you stay on top of your bills and finances and keeps you from incurring late fees and charges.
Daymond John is a classic American success story, rising from humble origins in Queens, New York, to a highly-respected and altruistic entrepreneur who created an innovative brand called FUBU – For Us, By Us. Daymond is now known as a marketing/manufacturing/branding guru, and investor and mentor to multiple startups.
He attributes his success to knowing his consumer segment really well, working really hard, bouncing back from adversity and not worrying about having 99 of 100 doors shut out.
Daymond also takes us behind the scenes at Shark Tank, gives us his insider’s take on the other sharks on the show, what sharks look for, which co-host he would go into business with, which one he won't, and the real process behind making their investments on Shark Tank, beyond the ten minutes we see on television.
John’s discusses his newest project, Miller Light Tap The Future, where entrepreneurs with original business ideas will compete for a grand prize of more than $200,000 and receive expert advice from John, one of the contest judges.
With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Housing stocks have plummeted in the Mid-West, primarily due to severe weather in many parts of the country – but this effect is likely temporary and should go away as the weather thaws, literally allowing ground breaking for new construction. In addition, guided by Fannie Mae and Freddie Mac, buying a house today is way easier on your wallet than a few years ago. Interestingly, rentals in some places are now 20% higher than mortgage payments, specially in the low-income sector. Contrast that to 2006, when mortgages were 76% more expensive than rentals – so the housing market really goes through cycles of self-correction. So tune-in to find out what all this means for the housing market.
Factors That Impact Home Prices
When people buy and sell homes, how do they know what their home is really worth? Home pricing is a combination of art and science, and factors in variables such as location, weather, neighborhood demographics, crime statistics, quality of local schools, employment opportunities, access to entertainment and recreation, access to services such as healthcare, what comparable homes recently sold for, mortgage interest rates, etc. But there is no exact formula that we can all agree on, so we mostly let the market set the price of a home based on supply and demand. When demand is low, home prices tend to drop, and vice versa.
And with the advent of the Internet, I am sure quite a few of my listeners are familiar with websites like Zillow.com, RedFin.com and sites run by banks such as Chase and Bank of America, that tell you what your home is worth – either as a single number or as a range. But, if you try this exercise on your own property, you’ll find that estimates and price ranges can vary by more than a hundred-thousand dollars – so despite better information flows in a more connected world, home pricing is still an inexact science. And while this was not news to me, a recent article in the Los Angeles Times further confirmed what I had known all along.
Popular Websites for Home Price Estimates
By the way, for those of my listeners who aren’t familiar with the websites I just mentioned – here are a few pointers. Zillow.com is the most popular online real estate information site – it provides active listings of properties for sale and information on houses that are not on the market. So, for example, you can enter your address or zip code on Zillow.com – I’ve put the link on my website OnTheMoneyRadio.org - and pull up information on the home such as square footage, lot size, number of bedrooms and baths, photos, taxes, location maps, neighborhood home prices, etc., and get what they call a Zestimate (pronounced ZEST-ti-met) of what your home is worth.
Home shoppers, buyers and sellers routinely use Zestimates as a baseline for home values. So if a house for sale has a Zestimate of $350,000, a buyer might challenge the sellers' list price of, say, $425,000. Or a seller may question his real estate agent on why the home should be listed at below its Zestimate… things like that. To make matters worse, another site, such as Chase Bank’s Home Value Estimator may give you a different price. So this disparity in prices drives everyone nuts! As one realty agent put it, these varying price estimates are "the bane of his existence" because buyers and sellers each lock into different estimate – so a buyer might lock into a lower Zestimate, for example, and a seller may lock into a higher Chase Bank estimate… and this causes grief all around, often to the point of killing or delaying home sales.
Estimates Can Vary Widely
As the LA Times articles states, when the CEO of Zillow was asked if Zestimates are accurate, he said they're "a good starting point" but have a "median error rate" of about 8%. To put that in perspective, 8% on a $500,000 home is $40,000 give or take – so we’re talking big numbers here and it’s the agent’s job to get buyers and sellers to converge on something they can both live with. And here’s where supply/demand kick in… if it’s a slow market, buyers typically have more leverage; but if it’s a hot market with several competing bids, in places like San Francisco, the highest bidder gets the prize!
Moreover, as Zillow says on its website – in small type – Zestimates can vary significantly from market to market, and 95% of the time, Zestimates are wrong, sometimes with disparities as large as almost $200,000.
For example, in Manhattan, the median home valuation error rate is near 20%. In San Francisco, it's near 12%. So with a median home value of slightly over $1,000,000 in San Francisco, Zestimates have a price disparity of $120,000… or more for higher priced homes.
I like to constantly remind my listeners – new and old – of the advantages of cutting down wasteful discretionary spending, then plowing those savings into investments and letting the magic of compounding do its trick. Often times, people routinely spe...
Ronald White of The Los Angeles Times recently wrote an article that nicely highlighted the retirement challenges faced by America’s so-called millennial generation. Ron’s article focused on Jonathan Ng, a 29-year old - the financial challenges he faced and the steps he took to make sure he saved enough for retirement.
Find Out If You Are Ready For Retirement
It all started like this. Jonathan, a part-time worker and free-lance web designer in Los Angeles, did not worry too much about his spending habits or about finding a full-time job – as a result, he earned okay but did not have employer-sponsored health insurance, matching savings contributions and all the other perks that come with a steady job. Then, the 29-year-old got engaged and took an online quiz to see by when he could save enough money to retire comfortably – at a website called Outer Worth that encourages millennials to consider their financial futures. The site’s at www.OuterWorth.com and I’d encourage everyone to take that quiz too, millennial generation and older.
Okay… so Jonathan took that quiz and got the result… it said, "WOOHOO! You could be a millionaire by age 87."
BAM!!! For Ng, who worked up to 70 hours a week at as many as three part-time jobs, the quiz result was a major shock because he thought he was doing enough to save for retirement, but clearly he wasn’t. It got him pretty worried because he was planning on soon marrying his sweetheart and looking at long-term goals such as buying a house, raising future children, saving for their college educations, having enough left for retirement, etc. So this quiz took him from worrying too little about his finances to worrying too much – which I think is a good thing – because at 29, Jonathan’s young enough to make meaningful changes to reach his life and retirement goals.
Millennials Need to Step Up Savings, Investments
Another, worrisome data-point for Jonathan’s generation - Moody's Analytics recently estimated that the savings rate for millennials had fallen from 5.2% in 2009 to minus 2% in 2014… so not only are millennials not saving, they're spending more than they earn... in a time when this generation is burdened with more student loan debt than ever, higher unemployment and lower levels of wealth than their two immediate predecessor generations.
In addition – career trends have also changed significantly. People like Jonathan see freelance jobs as viable career options and where they get regular jobs, millennials typically spend no more than 18 months at a job, on average, before moving to another, which often deprives them of retirement benefits if they leave before the standard four-years of getting fully vested.
A recent survey also found that two-thirds of millennials said they were saving only half of what they thought they should for retirement, and relatively few millennials had sought the services of a financial planner… something financial planning experts routinely see with this younger generation… and urge them to start saving for future expenses and retirement by resetting their spending, savings and investments.
So the “shocking” quiz result was exactly the kick-in-the-pants that Jonathan needed, and got him into “action” mode. For starters, he took some savings and paid off $8,000 in credit card debt… and freed himself of expensive monthly interest payments. Next, he began to carefully track his spending so he could cut out non-essentials and go from over-spending to savings mode. He also reviewed his stock portfolio and realized that he wasn’t a great stock-picker – he’d lost money on the stocks he self-picked… so he wisely decided to end his stock-picking days and invest his money in a low-cost diversified portfolio that is automatically rebalanced.
Savings Tips for Millennials
Now… while Jonathan’s case may sound pretty bad… turns out, he’s actually in pretty good financial shape for a 29-year old. Luckily for him,
Buffett’s Top Tips for 2015
A website I came across – GoBankingRates.com – profiled 12 personal finance experts in December 2014 for their insights on growing your wealth in 2015. I plan to share their tips with you today and I’ll start with one of my favorites – Warren Buffett’s advice on succeeding at investments in 2015.
Put Your Estate in Index Funds
In his 2014 letter to Berkshire Hathaway shareholders, Buffett revealed his estate plan, reminding readers to keep their investments safe, low-cost and long-term. Buffett plans on leaving all of his cash for his wife – with 10% in short-term government bonds and 90% in a very low-cost S&P 500 index fund. He believes the trust’s long-term results from this policy will be superior to those attained by high-fee managers.
Stay Away From Bitcoin
Buffett’s problem with Bitcoin is that it’s not any kind of investment at all, because it doesn’t have value. He sees it more as no more than a method of transmitting money – an electronic version of a check – with which can be replicated and has no intrinsic value
Learn How to Read Financial Statements
Buffett wants you to take all the accounting courses you can find because accounting is the language of business and it’ll make you comfortable with reading financial statements. As he puts it – a little study early on, but it pays off big later on.
Focus on Saving, Not Getting Rich Quick
He says the biggest mistake is not learning how to save and trying to get rich quick. Buffett believes it’s pretty easy to become well-to-do if you save and invest regularly but it’s no where as easy to get rich quick.
When Stock Prices Drop, Buy — Don’t Sell
Buffett likes to buy when markets go down, and the more they go down, the more he likes to buy – because he does his analysis thoroughly and buys businesses for their long-term growth potential.
Stop Pretending to Be an Expert
He says, if you invest in things you don’t know, you’re just gambling. He says you’ll do just fine if you recognize your limitations, stick to a plan and stop pretending to be an expert on the market. He likes to keep things simple, not swing for the fences or look for quick profits.
Tips from Other Experts
Okay – that was the Sage from Omaha… now here are some more pieces of advice from other noted experts in the field:
Stop seeing yourself as a victim — of the job market, economic downturns, etc. – and stop relying on someone else to ‘save’ you. Instead, shift your mindset from ‘victim’ to ‘champ’ and put your talents, your intelligence and your strengths to work - to take control of your life and your financial future.
Give yourself a raise in 2015. Do this by either mustering up the courage to ask your boss for a pay raise, or by starting a side business, or increasing your billing if you already have your own company. Then make sure you’re saving at least 5 percent of your total income!
Work towards setting specific financial goals and the steps needed to achieve them - with an accountability partner. Money management is a team sport, and in 2015, find someone who can help you build and nurture a meaningful financial plan where you prioritize your needs over wants and stick to the plan.
For example, if you want to buy a house - don’t give yourself the vague goal of saving up for a down payment. Instead, commit to saving, say, $250 each month, by cutting expenses and transfer this money every month to your savings account until you reach your desired down payment.
Put your goals in writing and track your progress to motivate you.
Go back to the basics – spend less and save more. There are hundreds of ways you can do that and your challenge is finding the ways that work for you. It’s not just the big savings that matter. Change your mindset and realize that no savings are too small, they all add up. Educate yourself to really understand where you are spending your money.
with Ben Steverman, Reporter – Bloomberg News
Target Date funds are catching on with investors; these are funds where an investor provides his retirement date and the fund automatically rebalances his portfolio allocation between stocks and bonds as he nears retirement date – so investors themselves don’t have to worry about portfolio rebalancing over time. Target Date funds are simple and have a low structure but they really only work if all your retirement money is in target-date funds… which is not the case for 62% of all holders - who mix and match them with other investments to “diversify” and lose about 2% in performance compared to those who go all-in with target-date funds. So a mix-and-match approach changes your risk profile in ways that typically do not benefit your portfolio, and this 2% under-performance can significantly impact your portfolio over 20 to 30 years.
Switching gears - the Top 1% of all Americans earn close to $400,000 per year and include well-paid professionals, moderately successful small business owners, doctors, etc. – but still feel financially insecure. Rich Americans think they pay too much in taxes but don’t get enough bang-for-their-buck on taxes paid because of sky-high college expenses, rising healthcare costs and the lack of benefits for higher income Americans. Taxes in other developed economies, notably in Europe, provide a financial safety net and tend to take care of healthcare, education expenses, etc., but Americans – not just the wealthy – have to really depend on their own savings for a decent retirement. So it’s imperative that we channel our savings well and have a strong nest for retirement.
Annuity 101
A lot of my clients ask me if they should put some of their money into annuities or if they are better off with simple bond investments… so I thought I’d make this a topic on my show today. The gist of my commentary is from an article on of FinancialPlanning.com titled Annuities vs. Bonds: Do the Math, by Elliot Kass.
As Americans are living longer due to better healthcare, diet and nutrition… many are worried that they will outlive their retirement savings… and see annuities as an attractive option for guaranteed lifetime income… and as insurance if they outlive their retirement assets.
And annuity underwriters are well aware of this fear and structure annuities so they pay relatively unattractive interest but provide the peace of mind of a guaranteed annual payout. Returns on annuities, after annual fees, are often less than 3%… so, in essence, your annuity payment does not even keep pace with inflation.
Here’s how an annuity works… when you buy an annuity, the underwriter subtracts certain fees and expenses and does some math to come up with a fixed amount he can pay you each year… say that works out to $5,000… now $5,000 is what you will receive each year for the rest of your life, without any adjustments for inflation.
Annuity Drawbacks
But over the course of 20 years, with inflation at about 3%, the purchasing power of $5,000 drops significantly… to the equivalent of about $2,000 – so that’s one catch with annuities – your income stream does not keep pace with inflation and loses purchasing power significantly over time – so factor that into your annuity purchase decision.
Here’s something else to be aware of: With annuities, investors generally get their principal back in about 15 years… so if you opened an annuity at age 65… you’ll earn back your principal and recoup your invested capital by the time you’re 80… then… if you’re still alive past 80, you’ll start seeing a paltry return on your investment – doesn’t sound too appealing!
Most annuities also charge fairly high fees – from 3.5% to 5% each year… so if your annuity earns about 5% to 7% a year… after fees, you only end up with a net yield of 1.5% to 3.5% each year. A lot of these fees pay for generous broker commissions… which is why annuity salespersons sell you pretty hard, often locking-you into unrealistic expectations.
Should you choose to break an annuity, you’ll end up paying hefty penalties.
So, if you’re considering annuities, research your options well – look into fees, commissions, payouts, inflation adjustments… and compare them to yields on simple or inflation-protected U.S. Treasurys or high-quality corporate bonds that yield a bit more, don’t charge exorbitant fees and do not lock-in your money or have you pay hefty penalties on early termination.
Howard Marks is a legendary investor who founded Oaktree Capital Management, an investment management company that has delivered an average annual return of 19% over the past 22 years, after fees – that’s pretty phenomenal. Needless to say, he’s loved ...
with Richard Davies, Economics Editor at The Economist
Technology was supposed to raise wages and standards of living – but have we seen these expected benefits? Technology increases economic efficiency and productivity, and – in theory - should drive an increase in wages and purchasing power. But wages, especially at middle levels, haven’t really risen in most developed countries, so what gives? Are machines increasingly replacing workers? Were we simply brain-washed into believing technology would make our lives better so we wouldn’t go out and trash machines?
Thankfully, history shows us that technology has raised real wages in previous economic cycles – sometimes with a long lag between technology implementation and the time benefits trickle down to workers. But rising “machine intelligence” could threaten blue- and white-collar jobs alike. Cases in point – ride-sharing app, Uber, has upended local taxi monopolies, and robots now more accurately perform certain aspects of surgery. Ultimately, technology benefits end consumers and disrupts the livelihoods of many others. So how can you stay ahead of this inexorable trend?
with Michael Farr, Founder and CEO of Farr, Miller & Washington Investment Management, Author - A Million is Not Enough: How to Retire With the Money You’ll Need
Michael Farr is a veteran of the markets and has seen several trends come and go – like the time in 1999 when investors wanted to sell oil and buy dot-coms… and we all know how that turned out. He takes a longer view to investing, and understands that market movements are tied to a combination of economic fundamentals, geopolitical events and the shenanigans of deep-pocketed hedge fund traders who often use leverage with deadly effect. Michael also knows it’s hard to predict when trends might reverse. For example, no one saw the sharp drop in oil prices coming. And now that oil is down significantly, many are predicting a slide down to $20 based mostly on an extrapolation of recent trends. But with fundamental demand for oil still sound, and global appetite for energy on the rise, could this be a good time to buy oil?
And while the slide in oil is certainly a boon for U.S. consumers who are expected to save about $120 billion at the pump, it could also cause refinery shutdowns and job losses in the energy sector, the very sector that was key to our economic recovery. The energy sector could also see a wave of consolidation as part of a natural economic “survival of the fittest” cycle. Moreover, the slide in oil has begun to significantly redraw geopolitical alliances – and pushed countries like Russia to the wall – perhaps to where they may react in unexpected ways. A lot happened in 2014 – in good ways and bad – so there’s enough out there to surprise the markets in unexpected ways in 2015.
with Sam Stovall, Managing Director – U.S. Equity Strategy at S&P Capital IQ Global Markets Intelligence Group, Chairman S&P Investment Policy Committee
Only 2 of the 11 bull markets since World War II have moved into their seventh year, so will 2015 be a Lucky-7 for our current bull market? This current bull market had a record of 69% from March 2009 to March 2010, well above any other sustained bull market since World War II, but are we now skating on thin ice? Could a bigger correction come in 2015 with the Federal Reserve poised to raise interest rates or will a strengthening U.S. economy and lower oil prices give markets more real reasons to rally? And how will presidential politics impact Wall Street in 2015?
And should we fear falling oil, or rejoice over the drop. It’s a match-up between slowing global economies and lower demand from certain regions versus the benefits of lower oil prices. So will global corporations report higher earnings from lower oil or lower earnings from weakened economies?
Every year on this auspicious holiday, I revisit the ever-clever tongue-in-cheek Christmas Price Index based on (you guessed it!) "The Twelve Days of Christmas" where PNC Bank entertainingly tracks the prices all the goods and services mentioned in tha...
Home prices across the U.S. were up 6.1% in October relative to a year ago, as mortgage rates dipped, as home supply tightened and as buyers rushed to purchase homes before winter set in. And, as you know, we all depend pretty heavily on our local real estate agents to guide us through the home selection and buying process, with their inside knowledge of the local market a key advantage in helping us close a good deal… so it’s really important that we have a good agent on our side.
And even though the Internet has led to a proliferation of online real estate information that lets us track homes sold, homes for sale, etc., the digital revolution has done little to reduce the importance of choosing the right real estate agent to work with.
Picking a Good Agent
And though a home purchase is typically a household’s largest investment, many buyers and sellers give little thought to choosing the right agent. So if you’re in the market to buy or sell a home, pay a little more attention to finding yourself a good real estate agent. Get recommendations from friends and relatives, and see which agents are buying and selling the most homes in your neighborhood. Read online reviews, but realize they don't tell the whole story, since most clients, satisfied or dissatisfied, don't write reviews. Once you’ve narrowed the list down based on competence, interview three or four agents to find the one who you feel most comfortable with. Ask them how many listings they have, how many homes they’ve sold in your area, how and how often they will communicate with you - and in what format, etc.
If you're a seller, ask the agents how they’ll market your home, target buyers and get your home in front of preferred buyers. If you're a buyer, ask how often the agent will send you listings and whether he or she has worked with other buyers in your situation.
Equally important - watch out for certain red flags when choosing an agent. So Teresa Mears of U.S. News and World Report put out a list of “9 Red Flags to Watch For When Picking a Real Estate Agent” and I’m going to share her list with you.
Red Flags When Screening a Real Estate Agent
Here are a few prominent red flags to watch for when choosing a real estate agent:
The agent does real estate on the side, part time. Part-time really doesn’t work in real estate because you want an agent who is actively following the market every day, and can jump on new listings and show them to you immediately. If you're a seller, you want an agent who is always available to show your home to prospective buyers.
The agent doesn't know the real estate landscape in your neighborhood. Home values and desirability often change from block to block, so it’s critical that you find an agent who is an expert on your neighborhood. Local agents are typically in touch with local homeowners and may know what properties are going to hit the market before outside agents. In addition, if you’re looking to sell, having a local agent on your side may help you close the deal much sooner.
The agent doesn't usually deal with your type of property. If you're buying or selling a condominium, don't pick an agent who rarely sells condos. If you're looking for investment property, find an agent who traditionally works with investors. Many agents have multiple specialties, but make sure your agent is well-versed in the type of transaction you're doing.
The agent doesn't usually work with buyers in your price range. Similar to the point I just made, look for an agent that is comfortable working in your price range and is willing to do whatever it takes to close a deal. For example, if you’re a first-time buyer looking for a $200,000 entry-level home, don’t sign up with an agent who mostly handles million-dollar listings.
The agent is a relative. It’s often tempting to use a close family friend or relative who’s known to be a fantastic real estate agent… but for major transactions like home sales,
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.
Listen in on nationally recognized Certified Financial Planner and Investment Advisor Steven L. Pomeranz' On the Money! radio program, covering the entire financial spectrum.The show educates and protects listeners with 1-hour of money advice, from money rebates and rip-offs, to smart shopping, wise investing and retirement financial issues.