Posted on March 19, 2010 @ 9:37 am - Written by BawldGuy
One of the most crucial skill sets a real estate investor must have, is the ability to recognize and adapt to major shifts in longstanding market behaviors. What in the name of Aunt Fannie is he talkin’ about?! Here’s an example. Though thousands of trees have given their lives so a myriad books could be written about real estate cycles, they become deafeningly silent when those so-called predictable patterns become, um, much less predictable.
A case in point is the San Diego income property market. It’s been one of the nation’s darlings for my entire 40 year career. Buy something, hold it, sell it for a profit, usually a nice one, rinse and repeat. Let’s take a close look at the factors now in play that have quite efficiently rewritten the San Diego script. Read the rest of this entry »
Posted on March 15, 2010 @ 8:37 am - Written by BawldGuy
Written By — David Shafer
You are 32 years old, a man in good health, and newly married. You have a good job, make good, not great, money, and want to start out in life on solid financial footing. You are responsible financially and, along with your wife, have saved 6 months worth of expenses. What is the next step? You have been putting money into an 401K, but recently have started to question that decision as you have a long way to go to you can access this money without penalties and you see the big ups and downs the market has provided.
You see your parents worrying about the big losses in their retirement funds over the last decade and you want to consider something different!
Perhaps an EIUL????? Read the rest of this entry »
Posted on March 4, 2010 @ 8:43 pm - Written by BawldGuy
BawldGuy Axiom: When the farmer plants corn in the spring after proper preparation, tends his fields diligently, fertilizes as needed, and adjusts to any bumps in the road, he’s not surprised when he’s harvesting corn in the fall.
A robust harvest was his end game. He had a Plan — executed it — adjusted to any unscheduled visits by Murphy, Though probably not the perfect analogy, it gets the message across.
Here are 10 ways folks investing in real estate for retirement can delay and/or diminish their retirement. Read the rest of this entry »
Posted on February 19, 2010 @ 11:15 am - Written by BawldGuy
This blog is an extension of our firm, Brown and Brown Investment Properties, which came into being January of 1977. I’m the dad now, but was the son then. What we do, put as simply as possible, is take our clients from where they are today, to the best retirement we can create together, never leaving their sides ’till that special day arrives. Oh, and we love being invited to any retirement party. 
As you’ve noticed the last several weeks, more authors have begun to appear. This isn’t just a trend, it’s a format change. It’s meant to provide even more solid, helpful information for my readers. This blog’s reputation is for staying incredibly focused on your retirement, how to get you there safely, sooner, and with maximum income, as much of it as possible tax sheltered or tax free. (We don’t talk about unrelated topics here, with the occasional exception for Padres and Charger stuff. Oh, and there are the weekend bio-story posts.) 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 16, 2010 @ 8:08 am - Written by BawldGuy
Written by David Shafer
This week I thought I would give readers a different funding example for EIULs. I recently had a man contact me who is 36 years old, in great health and wanted to put $500/ month into an EIUL until he retired and then pull out income during retirement. I used the same assumptions as I told you about last week. 8.26% average crediting rate [11% below 20-year look back], and a variable rate loan on disbursement of funds set at 6.75%. However, because it is a monthly premium we set it up as a level face value.
We pay monthly premiums until social security age of retirement at 67. At that point we start pulling out income until age of 84, which is 7 years past average age of death for his cohort. At age 84 roughly 70% of his cohort has died. So, again we have used conservative assumptions. Read the rest of this entry »
Posted on February 9, 2010 @ 11:30 am - Written by BawldGuy
Written by David Shafer
It always amazes me that folks can hold on to foolish ideas in their heads despite ample logical evidence of the foolishness of those ideas. For example, I constantly see referenced a couple of articles written by some Wall Street Lackeys about the superiority of stock investing over real estate investing. When you actually go to look at these articles, they are so poorly argued that it is amazing that the magazines that printed them would consider them fit to print in a financial oriented magazine. But, they get continually recycled.
For the record, historic research into internal rate of returns for investment real estate versus stocks demonstrate a huge advantage for real estate. This is not to say that fortunes can’t be made investing in stocks [Buffett, Lynch, etc.], only that arguing it is always better to invest in stocks over real estate is just dumb. I mean when you look at the wealth of super-wealthy people, on average, there is 3 times as much in investment real estate as stocks and bonds. Read the rest of this entry »
Posted on February 3, 2010 @ 8:46 am - Written by BawldGuy
Early last month I wrote a piece about growing capital and creating solid cash flow, much of it sheltered, while experiencing no appreciation whatsoever. The bottom line was surprising to many. Their capital nearly quintupled — while simultaneously creating reliable retirement income. Regardless of whether the capital grows by a factor of four or five, or less, the result will be far more palatable than a 40% loss a few years before your scheduled retirement, which is what’s happened to so many good people.
BawldGuy Axiom: Figuring return on disappearing capital is oxymoronic. Treating appreciation as anything but a luxury is akin to walkin’ in an unmapped minefield. Read the rest of this entry »