Posted on July 1, 2008 @ 12:35 am - Written by BawldGuy
How many times have we been out to breakfast, looking at a menu showing mouth watering pictures of fresh squeezed orange juice? You know the one — a pitcher of juice surrounded by the most perfect oranges the Good Lord ever made? Then while leaving you pass the kitchen and see them mixin’ up another batch, throwing away the frozen concentrate. Hey, those oranges were fresh at some point, right?
It’s all about expectations, isn’t it? I’ve spoken to investment clubs, and the experience generally falls into three categories.
Newish club so mostly newbie investors — great questions, solid response
More mature club, a few ‘leaders’, one of which I inadvertently cross while talking
The ‘1 in 10′ club, interested only in real info, in depth detail, real expertise and advice
After a conversation yesterday with a long time client, I’ve decided what the heck, it might be time to revisit clubs. She recounted a recent trip outa state to her see her brother. They’re both seasoned investors, and he took her a meeting of the local club. She’d told them during a break about how we do things at Brown and Brown, and that we used to speak to clubs like theirs. Read the rest of this entry »
Posted on June 29, 2008 @ 6:59 pm - Written by BawldGuy
When speaking to audiences in historically high appreciation areas, it’s common to hear them voice serious concern with regions I’m recommending. Their real problem? They’re lookin’ at appreciation at the cost of capital growth — theirs. They’re literally penalizing themselves to the tune of millions over the long term. In baseball terms, strikeouts are cool, but how many earned runs a pitcher allows per game is the real gold standard. No? Ask yourself if for the big game you’d want the guy who strikes out 12 batters a game but has a 5.3 ‘earned run average’ (ERA), or the guy who hardly ever strikes anyone out but only allows three runs a game?
Not a difficult decision, is it? ‘Course not. It’s obvious on it’s face. Why? ‘Cuz in baseball the winner is decided by how who has the most runs at the end of the game — not the team sporting the pitcher with the most strikeouts.
Appreciation = Strikeout Pitcher whereas Capital Growth = Very low Earned Run Average
Posted on June 28, 2008 @ 11:58 pm - Written by BawldGuy
A few times yearly a positive perfect storm hits where I live. It happened today. Getting ready for a big family deal 60 miles up the 15, I messed around all day. The exception was a very cool conversation with a ridiculously smart young guy whose advice I’m considering. I say he’s smart, but he lives in the Phoenix area on purpose. I guess different strokes, etc., right?
Anyway, I went through the whole day gleefully anticipating the family deal — and never once, not even a hint of a thought about writing something semi-intelligent. Oh well. Life goes on, and something tells me your lives didn’t change ‘cuz I forgot to put on my real estate investment dude hat on. The family party? The best ever. Everyone had their sharpest double edged swords out. Haven’t laughed like that in a long time. I was cut to pieces, but got my share in too. The Glenlivet was smooth as always, and The Boss was lookin’ hot hot hot.
On an absolutely unrelated note, if you’ve heard of twitter.com you can follow me. I’ll be, ah, @bawldguy — duh. If you haven’t heard of twitter, check it out.
I’ll be back in spades tomorrow though, and that’s a promise.
Here’s some music designed to put a cool twist on the weekend, and smooth everything over. Blasts from the past. Even Lani’s gotta like these two.
Posted on June 27, 2008 @ 11:10 pm - Written by BawldGuy
There are plenty of things you can do, not the least of which is to recognize the sea change happening in real time before our eyes. I’m worried for your future. You should be too. And no, I don’t think your properties are gonna put you in the poor house, ‘cuz they’re not. This market correction will end, and at some point your properties will not only regain their value, but go higher.
The Problem?
If your real estate investment world begins and ends at San Diego’s borders, you have a big problem. If they don’t, takin’ your equities Outa Dodge will easily mean $1 Million in additional capital growth for most of you in the next decade. And that figure’s a relatively safe one. Talk about the tortoise and the hare. And for the record? It’s only in the fable that the tortoise wins. Where we’ll take you, the hares don’t stop and lollygag. All things being equal, those leaving San Diego with their real estate investment equity/capital will race past those who stay in town.
It’s a no-brainer. Those who leave now, will be working towards another $5,000 a month retirement income in the next 10 years or so, give or take. This isn’t a game. This is your retirement, and I’m serious as a heart attack about this subject. It’s what I do.
Do not invest in San Diego income property now, or keep what you have longer than it takes to sell/tax defer (1031 exchange) your way out. I’ve been tellin’ folks to buy SD property since Carter was in office. I don’t say these things lightly, as I understand the gravity of decisions based upon one’s future retirement income. But it’s the right thing to do. That makes it an easy call.
I’ll be in town this weekend, available by phone and email. I’m pretty good about gettin’ back to folks quickly. So Contact the Hairless One and let’s see what it’s gonna take to get your retirement back in high gear. Oh, and by the way, for clients doing tax deferred exchanges with Brown and Brown, the selling costs will be reduced by $10,000 or more 90% of the time.
Really — wouldn’t kid ya ’bout that.
Now for some kinda sorta on-topic weekend music. (Just go with it, OK?) Have a good one.
Posted on June 27, 2008 @ 11:51 am - Written by BawldGuy
David Shafer and I agree on most things related to the attainment of wealth and a magnificently abundant retirement. Here’s a bonus for my readers today. Wanna know the slam dunk difference between those living a hand to mouth retirement and those for whom the hardest decision is where to travel to next?
BawldGuy Axiom: No wildly successful action ever came from anything but a thought. Thought — thinking, always comes first. Poor thinking = equals poor doing.
A superb retirement comes from Purposeful Planning, doing things on purpose. It doesn’t come from a mental attitude equivalent to rollin’ dice on the Craps table at the casino.
2. You’ll see yourself in all your security driven splendor, then race down the hallway to the door marked ‘DENIAL’.
3. You’ll see yourself, recognize the need for a sea change in your thinking, and begin your new and abundant life.
David and I want everyone to enter retirement with a sense of excited anticipation. If the thought of your retirement makes your palms sweaty, and sleep hard to come by, click the link and read the post. If it changes your thinking it’ll change your life.
Without the right mindset, your retirement might very well end up as a life sentence. When you finish reading David’s stellar post, come back here and take a short listen to the Grandpa Economics podcast. You won’t be sorry.
If you now think you’d like some help with your retirement, Contact Me. I love this stuff. It’s the only reason I keep doin’ it. Let’s figure a Plan just for you.
