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| Small Nest Egg; Big Dreams? Here's How to Catch Up |
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If you're dreaming of becoming a homeowner, or planning to upsize, you'll need to tap your savings for a down payment and to support your mortgage application. Are you there yet?
If not, you're not alone: Most adults over age 55 are behind on savings, according to a survey of 968 respondents conducted by Financial Engines. The survey showed that 68% of adults aged 55 and older have procrastinated when it comes to building a nest egg. And while most agreed that the best age to start saving is 25, many don't start until 35...and it makes a difference.
The study provides a hypothetical example: This individual saves 6% of a $36,000 salary annually. The nest egg increases by 1.5% a year, due to raises, etc. If the saver begins at age 25, assuming a 3% employer-matching contribution and a 5% annual return, by age 65, he or she will have saved
roughly $500,000.
But to reach the same goal when starting at age 35, the saver would have to contribute 12% of his or her income per year.
Making up for lost time isn't easy, but it's not impossible, thanks to the power of compounding. And if returns are compounded in a tax-deferred account, the potential income growth is even greater.
If you did get off to a late start, there's still time. Talk to your advisor, and together you can build a solid savings plan to make your housing dreams come true. Just perhaps a bit later then you'd like. |
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| Being Home Alone on Halloween: Now That's Really Scary! |
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Some people are scared of snakes; others are scared of clowns. But that's nothing: 77% of respondents to a recent www.Houzz.com survey are scared of being alone in an empty house.
Being home alone involves facing your fears...alone. For example, the Houzz survey found that people were scared by all manner of things. But just imagine how much scarier to face these things on your own. Especially on Halloween. Following are some fears uncovered in the survey:
- Fifty-four percent of urban dwellers said the possibility of break-ins was the scariest; 46% of respondents who live in rural areas said the same thing.
- Fire was the scariest possibility for 35%.
- Creepy-crawly things-spiders, to be specific-freaked out 24% more than anything else.
- Carbon monoxide or gas leaks-a threat with very scary consequences-topped the list for 22%.
If you, too, feel nervous when you're home by yourself, you may want to stay away from the backyard (especially at night), the garage, and the basement. Those were ranked the three scariest places in or near a house.
Sometimes all it takes is an unidentifiable noise to set off an imagination. Howling winds and creaking floorboards were rated the most fear-inducing noises by survey respondents. What to do on a quiet evening with no one else around? Make sure all windows and doors are securely locked, identify mysterious noises, and put on a funny movie. And for Halloween: Get into the "spirit" and hope your night visitors are all human. |
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| Confusion at the Hardware Store: Light Bulbs Aren't Just For Light |
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Just as watches, phones, and household appliances have gotten smarter and become more versatile thanks to technology, so, too, have light bulbs. Lightbulbs are evolving rapidly from objects that simply illuminate dark rooms to smart, multipurpose devices.
Lightbulbs are commonly available today with built-in features that regulate brightness and scheduling. Using a smartphone app or a Bluetooth connection, you can dim these bulbs, turn them off and on, or even direct them to change direction or color; special features allow you to conserve energy and enhance a home's security.
Beyond that, there are specialty bulbs with built-in speakers that can be controlled with an iPhone or Android device, and bulbs that have integrated Wi-Fi radios, which extend the coverage of a wireless network.
Other ideas that are currently on the drawing board include LED lightbulbs with built-in security cameras and smoke detectors, including a prototype smoke
detector that has its own battery so it works even when the light is off or the power is out.
In today's market, smart lightbulbs are still a bit pricey, and some may also be a little buggy, requiring special apps that are not universal and do not work with all systems. Nevertheless, the market is growing for enhanced lightbulbs.
And as with all things technological, the cost will likely come down and standards will probably be adopted over time. Just imagine: One day we'll wonder how we ever got by with a bulb that just turns off and on. |
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| Wondering How Much Your Home Is Worth? |
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How has the price of your home or rental changed in today's market? How much are other homes in your neighborhood selling for?
If you're wondering what's happening to prices in your area, or you're thinking about selling your house or investment property, I'll be able to help.
Just give my office a call for a no-fuss, professional evaluation
I won't try to push you into listing with me or waste your time.
I'll just give you the honest facts about your home and its value.
And maybe I'll also give you the "inside scoop" on what's happening in the housing market near where you live!
Just give my office a call or reply to this email to arrange an appointment. Alternatively, stop by at the office. |
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| Is There a Cost to Not Purchasing a Home Now? |
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The New Oxford American Dictionary defines opportunity cost as "the loss of potential gain from other alternatives when one alternative is chosen."
With interest rates and home prices expected to rise in the near future, the opportunity cost of not purchasing a home in today's market may grow, according to the Opportunity Cost Report issued by www.realtor.com. The site provides online
real estate information and services through the National Association of Realtors.
The www.realtor.com report examines various factors by market, including the property appreciation gain renters forego when they hold off on buying, as well as other financial benefits of homeownership.
According to Jonathan Smoke, chief economist for www.realtor.com, "Current market conditions give buyers an opportunity to build substantial wealth in the long term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation." He notes that the "analysis looks solely at the financial reasons to buy a home, based on assumptions about rising mortgage rates and changes in home values." It doesn't consider other reasons to buy or not buy.
In buyer-friendly markets, homeowners generally make
more money over the life of their ownership than in balanced or sellers' markets. However in virtually all markets, homeowners see significant financial benefits over lifetime renters. In 88% of U.S. Metropolitan Statistical Areas (MSAs), buying a home produced a financial benefit of at least $100,000 in 30 years. In buyers' markets, that benefit will rise to, on average, $217,726 over a 30-year period.
It's important to realize that opportunity costs are not just financial or lost monetary gains. Opportunity costs can include things like lost time or other delayed or foregone benefits. In the case of home ownership, tax benefits, the ability to access area schools and amenities - and the satisfaction of being a homeowner and realizing the American dream - should all be considered. |
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Judy Stringari
REALTY WORLD Golden Hills
2680 South White Road
Suite 265
San Jose CA 95148
1-408-313-9067 Cell
1-408-223-3647 Office
1-408-238-6896 Fax |
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| www.JudyStringariRealEstate.com |
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| Judy@RWnetwork.comm |
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| Thinking of Buying a Home? Get My Free Guide |
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Buying a home is a complex process with many factors to consider.
Prepare for the decisions you'll need to make along the way by requesting my free report, "10 Easy Steps to Buying a Home." |
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| Just reply to this email and I'll send it right out to you. |
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| Quick Quiz |
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Each month I'll give you a new question.
Just reply to this email for the answer.
Diodes are used to convert alternating current into what? |
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| Recipe: Coconut Sticky Rice with Mango and Sesame |
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| A delicious and unusual dessert |
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| Serves 6 |
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2 cups short grain/glutinous rice |
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1/2 cups dried quick-cooking polenta (cornmeal) |
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1 15-ounce can coconut milk |
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| Garnish |
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2 mangos, peeled, pitted, and diced |
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2 tablespoons toasted black and white sesame seeds |
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| Directions |
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Combine rice and water in a saucepan. Bring to a boil, then cover and reduce heat to low. Cook until water is absorbed, 15 to 20 minutes. Fluff with a fork and transfer to a bowl. In a small pan, mix coconut milk with sugar and salt. Bring to a simmer, then remove from heat and pour over the cooked rice, folding in until combined.
Serve in bowls topped with mango. Sprinkle with sesame seeds. |
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| Ask the Agent: This Month's Question |
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How do I find a starter home?:
Starter homes had fallen somewhat out of favor for a while. However, now they're considered a smart buy; in many markets they're available at bargain prices.
The Oxford Dictionary defines a starter home as "a relatively small, economical house or condominium that meets the requirements of young people buying their first home." They are characterized as unremarkable: average homes of average size in average post-war neighborhoods.
These days, millennials across the country are looking in starter neighborhoods because of their high walkability scores and access to transit. Many starter neighborhoods are located outside of city cores but are close enough to downtown. Starters offer a simplicity that appeals to younger buyers, but can be customized from the inside out in order to meet
their demand for amenities - a winning combo for today's demanding millennials. |
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