Financial Planning

Will You Outlive Your Assets when you Retire?

Here’s an alarming article that says 3 out of 5 Americans who are approaching retirement age are in danger of outliving their assets without increasing their rate of savings immediately.

The article also discusses life annuities, and a bill before Congress to relieve some of the tax associated with these annuities.

Articles are good at giving general advice, but to find out how your situation will look when you retire, it’s best to work with an experienced financial planner. In the meantime, you can visit our Financial Calculator page.

Is it time to sell the McMansion?

Despite the slower market right now, shifting demographics say it may be time to downsize now.

As usual, it’s all about the Baby Boom. Here’s some facts:

• The baby boom is just starting to downsize.
• As Boomers who want to downsize, many of us want smaller homes that are closer-in.
• The generation behind the baby boom is smaller, less prone to buy large houses, and is inclined to live in higher density, closer-in areas.
• Housing economists predict the average household size and average home size will be shrinking in the future.
• Presently, there is an over supply of condos and townhomes on the market.

This brings up two questions. 1. Who will buy our mcmansions in the ‘burbs in the future? 2. If smaller homes and condos will become more popular, their prices should rise faster than the overall market, and doesn’t it make sense to buy now, when they are being sold at a discount due to over-supply?

This sounds like a sell-high, buy-low strategy.

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