Posted on March 2, 2010 @ 5:22 pm - Written by BawldGuy
BawldGuy Note: Cuz Max Whitmore’s computer needs are so rare, (some pretty intense and sophisticated software/analysis) he’ll be unable to post until the specially designed machine he’s ordered is delivered, probably by this Friday. (Fingers/Toes crossed.) Which leads us to:
BawldGuy Axiom: When life is boiled down to its essence, logistics rule us all. 
Max and I thank you for your patience.
This conversation happens a few times a year. Got a call recently from a very nice house agent, who was concerned one of her clients/friends was entering into a tax deferred exchange. I asked why the concern? Doing an exchange is common, just do ‘em right. Apparently the transaction was being done as a result of the advice of a recently retained local accountant. She’d feel better if I’d talk with them — would I please humor her? Not a problem. Read the rest of this entry »
Posted on February 27, 2010 @ 9:02 am - Written by BawldGuy
As I was finishing a very simple, but delicious four egg cheese omelet topped with some taco shop salsa, (hhmmmm, good) a conversation from a couple days ago popped into my head. A real estate investor asked an excellent question. It forced me to pause awhile before answering. It wasn’t that the answer wasn’t coming to me, it was how to frame it. The questioner was gonna hear an answer they didn’t necessarily bargain for, and how it was presented was important to me. I didn’t wish to offend or cause hurt feelings. The question?
“In your opinion, what is the most common hindrance to the real estate investor’s chance for long term success?” Read the rest of this entry »
Posted on February 24, 2010 @ 8:01 am - Written by BawldGuy
Cash flow is sooooo sexy, isn’t it? Even the phrase itself flows through our minds generating rivers of soothing endorphins. All cash flow ain’t equal of course, as many real estate investors will readily attest. A client once told me, fire almost pouring like lava from her eyes, that she felt she was making half of minimum wage just to get the so-called ‘crazy good’ cash flow her properties were ‘generously’ disgorging every month. She always did have a way with words. Oh, how she resented those units. I made the mistake of laughing — just once though — as she finished one of her rants. Her husband told me later it was OK to laugh, as he too thought it was Grade A standup material.
San Diego income property owners are acutely aware of what I’m talkin’ about here. Many of ‘em aren’t laughin’. It’s past time most of them shift into forward gear and begin the process of moving their equities to better performing regions. The same could be said for areas like Palo Alto, CA.
Resent cash flow? Really? Are you thinkin’, ‘I’d love a chance to resent some ‘crazy good’ cash flow. Please, gimme the chance.’ Read the rest of this entry »
Posted on February 17, 2010 @ 4:00 am - Written by BawldGuy
My parents and grandparents, more so with the latter of course, imbued me with a deep respect and understanding of the economic/financial ‘normal’ which permeated their lives. Even when some of the paradigm shifts radically changed the landscape, post WWII, their mindset for the most part wavered not an inch. I’ll confess to being the typical Boomer, in that my early adult years demonstrated a combination of ignorance and a certain self assuredness not supported by either empirical evidence or personal experience.
Put more succinctly, I was the typical 20-something know-it-all whose real life lack of experience, expertise, and knowledge was nearly immeasurable.
Then several ’storms’ converged to enlighten me. Read the rest of this entry »
Posted on February 11, 2010 @ 5:34 pm - Written by BawldGuy
Back in 2004 or so, my bodybuilding took an unscheduled exit off the muscle (muscle-head?) highway. Both elbow tendons finally told me to take a hike, they weren’t gonna do their part any longer. For a few months I literally winced in pain when dealing with the powder puff grips of elderly women during a courtesy handshake. Given that level of failure, you can imagine the pain generated by grabbing 100+ pound dumbbells. The party was over. It was my second bad elbow tendon experience, as I’d beat it about five years earlier with months of rest and intense physical therapy. No such luck this time. A new fitness approach had to be found.
BawldGuy Axiom: Those unable to adapt when necessary are those who cease thriving.
Truth be told, though I was wicked strong, especially for being over 50, I was never a threat to Arnold — not even in my mind. What was important was the ability to adapt to the new reality. Serious bodybuilding using the traditional methods was no longer on my menu. Even lightening the weights made no sense, as eventually I’d get stronger again, jump starting the same predictable cycle with the painfully familiar end result. What to do? Read the rest of this entry »
Posted on January 19, 2010 @ 5:31 pm - Written by BawldGuy
Ever wonder about the ‘known fact’ that when you retire, you’ll automatically find yourself with vastly reduced income? Given any thought to what that implies? I have, and for quite some time. Granted, for the small fraction who’re big wage earners, it’s more likely to be true than not. You may agree with me though, that at least the 80/20 rule probably applies. But if you’re in the vast majority of wage earners, it simply doesn’t have to be true, nor should it be.
What the heck am I talkin’ about?
Let’s create a case study of sorts. We’ll construct a typical 35 year old couple. Their goal for retirement is to quit working at 65, sooner if possible. They both work, have a couple kids, and are savings/investment oriented. They gross a combined $95,000 a year — him as the manager of a Costco store meat department and her as a pre-school teacher. Read the rest of this entry »
Posted on January 18, 2010 @ 10:45 am - Written by BawldGuy
Written By David Shafer
Last week we posted on the history of universal life insurance and why I like the indexed universal life product above all others. This week I want to answer the question why an EIUL would be a good addition to current strategies employed by the readers. In order to answer that question you, the reader need to answer the following questions:
Do you have or plan on having wealth that they would like to keep protected from the tax man?
Do you think that taxes in general are likely to increase over the next 10-20 years?
Do you have dependents, spouse, or assets they wish to protect in case of an earlier than expected demise?
Would you like another pool of liquid $$$ that does not go negative in bear markets?
Does the idea of tax free retirement income put a real smile on your face?
Read the rest of this entry »
Posted on January 14, 2010 @ 6:26 pm - Written by BawldGuy
Consider this the first of what will no doubt be an ongoing theme of posts on Self Directed IRAs/401Ks — along with acquisition of real estate using them as a tax deferred vehicle. Large numbers of folk are now either doing it already, have been doing it, or are askin’ about it. Why? You know the answer to that — fear of not only more Wall Street losses, but the desire for two things. They want more stability, and cash on cash returns of more than .4% on their capital.
Let’s start with the answers to a few basic questions. As time passes, I’ll be drillin’ down to more and more detail. Before long, you’ll have a fairly decent grasp of at least what’s possible, the nuts ‘n bolts of how, and what might make sense — or not — for you. Let’s get started. Read the rest of this entry »