Posted on August 24, 2010 @ 9:46 am - Written by BawldGuy
If you’re in your late 40’s or older, ensuring that time and your comfort zone play well together is easier said than done. I tend to be a stickler on comfort zone, as, like you, being anxious isn’t something for which I strive. In fact, along with the Sominex Account (cash reserves for newish readers), a real estate investor’s comfort zone resides at the top of the A-List of ‘must haves’.
The friction, of course, is caused by the practical need to get things rollin’ with a sense of urgency, while keepin’ at least one foot firmly entrenched in the Zone of Comfort. Frequently this results in the investor takin’ a step back to define exactly which comfort level they’re gonna salute, cuz there’s a couple, not just one — and their demands are often in conflict with each other — irritatingly so. Read the rest of this entry »
Posted on August 12, 2010 @ 6:02 pm - Written by BawldGuy
When I initially meet with new clients, one of the first things we go over is what their end game is when they think of retiring. I usually get the ‘Captain Obvious’ stare for a second or two. Of course, income is what allows them to even contemplate retiring, but after the last few years, most have come to covet stability of income, along with the safety of their investment capital. It’s one thing to arrive at retirement with a boatload of equity, it’s quite another to fall asleep each night knowing it’s foundation is secure, as in deeply sunk, steel reenforced, heavy duty concrete secure.
What many of the studies put out by Dalbar Inc have shown is that the typical investor, whether lookin’ for long term capital growth or fixed income, just hasn’t faired well at all — if they’ve given their money to Wall Street. I don’t mean lately. I mean the last 20 years — pretty much a generation. Want numbers do ya? Read the rest of this entry »
Posted on July 29, 2010 @ 6:46 pm - Written by BawldGuy
“The definition of insanity is doing the same thing over and over again and expecting different results” Albert Einstein
Gonna throw some reality, some empirical truth, and some food for thought about your retirement. This goes for all ages.
By the time the average American celebrates their 58th birthday, their retirement plan, in whatever form it resides, is worth less than $70,000. As thoughts go, that ain’t sobering, it’s downright frightening.
The average annual return enjoyed(?) by those with company sponsored 401Ks, the overwhelming majority of which are invested in mutual funds, in Wall Street’s own 20 year study, was less than 4%. In other words, they performed less than twice as well as the government has with our Social Security payments, which, according to the gummit folks themselves, has averaged an impressive 2%. Read the rest of this entry »
Posted on July 28, 2010 @ 7:24 pm - Written by BawldGuy
Everybody wants a retirement with more than ‘enough’ income, stability, more than a little tax shelter — all while knowing their capital is relatively safe. That’s a huge order for one reason — great return, heck any return on your capital, is a distant second to the preservation of that capital.
The assessment of risk is one thing. Even if you’ve convinced yourself the inherent risk in a particular real estate investment fits your comfort zone, the analysis isn’t over — not by a long shot.
Let’s pause here for a reality check. Has it ever really hit you between the eyes why it’s called risk capital? It’s cuz your capital is — at — risk. Read the rest of this entry »
Posted on July 20, 2010 @ 2:26 pm - Written by BawldGuy
In a recent conversation with another professional who wished to consult about one of their current clients, something struck me — hard. There are literally thousands of couples in their late 40’s-50’s happily driving down the road to their much anticipated retirement. They already see themselves with exotic drinks on perfect sandy beaches.
Epiphany: They don’t see or hear the train hurtling right at them head-on. I’ve witnessed this first hand many times in the last few years. This conversation made me realize how many people are 5-15 years from what they think is a hard-earned retirement, when they’re really that close to a dream crushing train wreck. Read the rest of this entry »
Posted on June 28, 2010 @ 3:52 pm - Written by BawldGuy
Last Thursday’s post pretty much summed up my thinkin’ about what most, not all real estate investors should now be doing. A common denominator found in the daily calls and emails I receive is the ultimate question — What should I do now, if anything?
You may be surprised, or not, to learn that much of the time my counsel is to stand pat, or almost. For the record, ‘Doing something‘ isn’t a Plan. I read everything I can about the economy and real estate in general, and have frequent conversations with those in the business for whom I hold well earned respect. Allow me some relatively unfiltered PlainSpeak today. Read the rest of this entry »
Posted on May 20, 2010 @ 10:19 am - Written by BawldGuy
One of my all-time favorite quotes: “In the end it all comes down to talent. You can talk all you want about intangibles, I just don’t know what that means. Talent makes winners, not intangibles. Can nice guys win? Sure, nice guys can win – if they’re nice guys with a lot of talent. Nice guys with a little talent finish fourth and nice guys with no talent finish last.”
Let me know in the comments who you think might’ve said it. Don’t Google it, OK? 
Hint: It was an iconic sports figure.
Folks insisting they can do most things in life themselves are not only doers, but to be admired. On the other hand, it’s amazing sometimes what gets on their ‘most things’ list. Some of us can do things very well that others simply can’t or won’t do. For instance, I don’t design my own office interiors — nor do I paint them myself. Could I? Of course. Should I? Um, not if I want clients to think my IQ has three digits before running into that pesky decimal point. Read the rest of this entry »
Posted on May 12, 2010 @ 8:32 am - Written by BawldGuy
Written By — David Shafer
Life insurance is a flexible tool for estate planning. I want to add a demonstration on how it can be used by someone just outside of what are normal parameters would be, age wise, for income from an EIUL. Let’s take a 63-year-old man who has significant real estate holdings and also significant depreciation available for offsetting taxes. Normally we would say that this person is a little above our age cut-off for using EIULs for income.
This person has planned well and will have enough income from his real estate holdings and other sources to live an abundant life. But he does have a couple of concerns. He has been the manager of his real estate holdings, making the major strategic decisions. What happens when he reaches an age where he either can’t or doesn’t want to continue to be actively involved? Or what happens if he dies and his wife is suddenly confronted with the real estate portfolio? Read the rest of this entry »