Keep Your Nest Egg Growing and Safe
by Michael Sexton
Does retirement planning scare you?
If so, you’re not alone. As soon as the subject comes up, most people start to sweat. They worry that they haven’t saved enough. Or they blame themselves for waiting too long before thinking about their retirement years.
Put the blame game aside. The good news is, you can change that kind of thinking in a day. You can do it now if you confront the issue of retirement head-on, and take some small steps to get started.
Do the Simple Stuff First
There are lots of complicated things you can do to plan for retirement. You can read reams and reams of complex investors’ information on the Internet. You can meet with an investment advisor and take home a briefcase stuffed with information about stocks, funds and bonds. You can call your friends and relatives and listen to their advice about what you are doing wrong.
But why start by putting more obstacles in your way? To get a quicker start, take a simple look at the things you already have in place. If you work for a company and have a 401(k), for example, set your contributions to the highest possible level - especially if your employer matches the dollars that you put in. If you forgot to increase your 401(k) contribution after your last raise, do it now. Also monitor your Social Security account so you always know how much income you’ll get when you retire.
Keeping your eye on the basics will add more money to your retirement accounts than you can imagine. Best of all, you are doing that by controlling retirement accounts that you already have - not ones that it will take you months to research, set up and fund.
Start Saving and Investing Today, Not Tomorrow
Thanks to the magic of compounding, even late starts can make a difference of tens of thousands of dollars -maybe hundreds of thousands - and a better-funded retirement.
Starting today gives you a psychological edge too. It builds your confidence and momentum.
A good investment advisor can help. To find the right one, get referrals from four or five friends and meet with the advisors they recommend. To keep your selection simple, go with the advisor who takes the most time with you, who shows interest in your objectives and situation - and who shows no frustration about answering all your investment questions.
If one of them makes you feel dumb for asking basic questions - well, that is a dumb advisor.
Get Realistic about Spending
The point of accruing wealth is to live an interesting and rewarding life. Everyone at Trump University is in agreement with that idea.
But there is a difference between living well and throwing money away. And part of the problem is that some of the acquisitions you make today can cost you a lot of money tomorrow. (And for many of us, “tomorrow” translates into “retirement.”)
For example, the residences you buy today will become more expensive to own in the years ahead. You have to think about that. Property taxes, on luxury residences especially, could well increase four or five times in the next 15-20 years. So the point is, ask your financial planner to help you decide when you are reaching the point of being overextended in your real estate holdings. Remember that the expenses you can carry today are not necessarily the expenses you can handle tomorrow, because some of them will grow.
Also get in the habit of buying only things that you know you will use and enjoy. When a new gadget appears that you want, wait for the price to fall before you buy it. It makes financial sense to treat money with respect. And if you have children, you’ll teach them the value of what a dollar can buy.
Talk to Your Investment Advisor about Risks
Investment advisors, you have noticed, like to talk about potential earnings - and rarely like to tell you what can go wrong.
The simplest way to learn about risk is to keep aksing about it. Some good questions to ask are:
“Is my return on this investment guaranteed by any government agency or some other entity?”
“How much money can I lose if this investment fails?”
“Do you have your own money in this investment account or vehicle?” (If the answer is no, find out why!)
Remember, you might not hear about risk unless you ask about it.
Get Smart about Your Insurance Coverage
Don’t spend such a fortune on insurance that you become insurance poor. But do buy enough to make sure that your residence, possessions and autos are covered - and that their full replacement value will be yours in the event of catastrophic loss.
Also review your liability coverage. If a guest becomes injured in your yard or home, for example, will you run the risk of losing everything?
The bottom line . . .
When you retire, you want your nest egg to have grown. But you also need it to be safe and sound, because a lot of money that is at risk does not represent security.
Just remember that it is not beyond you to reach those goals. The key is to get started today.
Nick Woodard
Keller Williams Realty
www.nickwoodard.com
615.566.9839
Tuesday, November 20, 2007
Tuesday, November 6, 2007
Foreclosure Training
Investing in Foreclosures? The Fundamentals Still Apply
by Michael Sexton
When you’re buying foreclosed properties, you can throw away all the classic wisdom about real estate investing, right? It’s a whole new world with new rules.
No, wrong. The fundamental rules apply, only moreso. Let’s take a closer look.
Rule One: Foreclosure or not, location is still of prime importance. You still need to look for properties in locales that promise growth and appreciation. So always consider the trends in municipalities where you might buy investment property. A new commuter line, a new hospital or a new school can dramatically increase property values. Even though you will find more foreclosures in dying communities, stay away from them. Location is still king.
Rule Two: There must be a way to increase the value of what you are buying. If there is no potential for growth, why invest? Remember, not all foreclosures are the same. As with all properties, some are standouts and some are duds.
Rule Three: Cash flow is still king. Even if you are applying a prudent“buy and hold” strategy, how will you generate income from your holding? Remember that the “on paper” value of the properties you own is fine, but that negative cash flow can drain the lifeblood from your investments and sink you.
Rule Four: Comparable values are still the yardstick for success. Comps are the yardstick you must use to evaluate the potential of your investment. So do the math. When buying a house to renovate and sell, deduct the cost of your renovations from its fair market value. That’s how much you should pay, not one cent more - whether the property is a foreclosure or not.
Rule Five: You still need expert advice and counsel. Buying a foreclosure does not entitle you to get sloppy and make decisions on the fly. You need a good attorney, a capable home inspector and all the other pros who can help you minimize risks and avoid mistakes.
Rule Six: Take your time. Even with “foreclosure fever” in the air, the first foreclosed property you see is probably not one you should buy. Yes, there might be a limited period of time left to take advantage of the current foreclosure boom. But that doesn’t mean that you should rush to snap up the first property you consider and make unwise mistakes. You need wisdom on your side.
Nick Woodard
Keller Williams Realty
www.nickwoodard.com
615.566.9839
by Michael Sexton
When you’re buying foreclosed properties, you can throw away all the classic wisdom about real estate investing, right? It’s a whole new world with new rules.
No, wrong. The fundamental rules apply, only moreso. Let’s take a closer look.
Rule One: Foreclosure or not, location is still of prime importance. You still need to look for properties in locales that promise growth and appreciation. So always consider the trends in municipalities where you might buy investment property. A new commuter line, a new hospital or a new school can dramatically increase property values. Even though you will find more foreclosures in dying communities, stay away from them. Location is still king.
Rule Two: There must be a way to increase the value of what you are buying. If there is no potential for growth, why invest? Remember, not all foreclosures are the same. As with all properties, some are standouts and some are duds.
Rule Three: Cash flow is still king. Even if you are applying a prudent“buy and hold” strategy, how will you generate income from your holding? Remember that the “on paper” value of the properties you own is fine, but that negative cash flow can drain the lifeblood from your investments and sink you.
Rule Four: Comparable values are still the yardstick for success. Comps are the yardstick you must use to evaluate the potential of your investment. So do the math. When buying a house to renovate and sell, deduct the cost of your renovations from its fair market value. That’s how much you should pay, not one cent more - whether the property is a foreclosure or not.
Rule Five: You still need expert advice and counsel. Buying a foreclosure does not entitle you to get sloppy and make decisions on the fly. You need a good attorney, a capable home inspector and all the other pros who can help you minimize risks and avoid mistakes.
Rule Six: Take your time. Even with “foreclosure fever” in the air, the first foreclosed property you see is probably not one you should buy. Yes, there might be a limited period of time left to take advantage of the current foreclosure boom. But that doesn’t mean that you should rush to snap up the first property you consider and make unwise mistakes. You need wisdom on your side.
Nick Woodard
Keller Williams Realty
www.nickwoodard.com
615.566.9839
Sunday, November 4, 2007
Real Estate Picking back up?
Is the real estate market picking back up in Middle Tennessee? The answer, yes and no. I have been keeping a very close eye on what is going on around me lately. The real answer to the question is, "what area are you talking about?" Because 3 miles can make the difference in a Hot market and a Cool Market. In the neighborhood that I purchased my home in Antioch Tennessee, 3 months ago the new sales agents were selling about 4-5 units per week, a combined 185 units for the previous year. As of 2 months ago, they are selling about 1 every two weeks. But just down the road in a new neighborhood that Kathryn and I just put a contract on a home, I have brought 5 different buyers that are purchasing a home this week. So you see, when someone asks you " is the market slowing down?" the real answer is "yes and no" it just depends on where you want to be. In a market like we are currently in, it is all about finding opportunities.
The government is keeping loans at a very reasonable rate. Jobs are continuing to come available. People are moving. What seems to be the problem? Media. Media. Media. The media is putting a false sense of dispair on buyers and sellers. Yes there are states and cities in this country that are having a terrible reversal of the market. But here in Nashville, we are sitting pretty. There is absolutely no reason to be nervous about buying a home in the Nashville market at the current state. Things look bright for our future here in God's Country.
If you need help with a real estate transaction in Middle Tennessee, give me a call. I would consider it a blessing to be able to help. God Bless
Nick Woodard
Keller Williams Realty
615.566.9839
www.nickwoodard.com
The government is keeping loans at a very reasonable rate. Jobs are continuing to come available. People are moving. What seems to be the problem? Media. Media. Media. The media is putting a false sense of dispair on buyers and sellers. Yes there are states and cities in this country that are having a terrible reversal of the market. But here in Nashville, we are sitting pretty. There is absolutely no reason to be nervous about buying a home in the Nashville market at the current state. Things look bright for our future here in God's Country.
If you need help with a real estate transaction in Middle Tennessee, give me a call. I would consider it a blessing to be able to help. God Bless
Nick Woodard
Keller Williams Realty
615.566.9839
www.nickwoodard.com
Thursday, October 25, 2007
Today's Top Ten!!!!
Today's Top Ten signs that it is time to sell your home.
10. When you bought your house, you lived in the country. Now you're surrounded by high rises.
9. You can't get any appliances repaired because "they stopped making those parts years ago"
8. The swing set in the backyard has sprouted roots.
7. The plumber's number is on your speed dial.
6. Your phone number is on your plumber's speed dial.
5. All the children's rooms are now guest rooms.
4. You haven't visited the other half of the house in six months.
3. You have to move the furniture to see the carpet's original color.
2. Your bathroom is a lovely shade of avacado green......from the first time that it was in style.
And today's #1 sign that it is time to sell your home...........
1. You can't make any improvements to the exterior of your home without getting approval from the Board of Historic Monuments.
For assistance with the purchase or selling of real estate in the Greater Nashville area give me a call, I would be glad to help. God Bless
Nick Woodard
Keller Williams Realty
www.nickwoodard.com
10. When you bought your house, you lived in the country. Now you're surrounded by high rises.
9. You can't get any appliances repaired because "they stopped making those parts years ago"
8. The swing set in the backyard has sprouted roots.
7. The plumber's number is on your speed dial.
6. Your phone number is on your plumber's speed dial.
5. All the children's rooms are now guest rooms.
4. You haven't visited the other half of the house in six months.
3. You have to move the furniture to see the carpet's original color.
2. Your bathroom is a lovely shade of avacado green......from the first time that it was in style.
And today's #1 sign that it is time to sell your home...........
1. You can't make any improvements to the exterior of your home without getting approval from the Board of Historic Monuments.
For assistance with the purchase or selling of real estate in the Greater Nashville area give me a call, I would be glad to help. God Bless
Nick Woodard
Keller Williams Realty
www.nickwoodard.com
Wednesday, October 17, 2007
Selling your home in a cool market
SELLING YOUR HOME in a cooling market is stressful at best. A couple years ago, headlines screamed of bidding wars and of homes moving off the market within days. No more. Across the country, new home prices are now down slightly from one year ago. And many predict housing prices will fall farther before they're done.
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what's selling, what's not and why. Finally, don't expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
That said, can you still get a good price? You bet. Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. "The first question a buyer asks is how long the house has been on the market," says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. "If it's been on a while, they ask what is wrong with the house."
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. "Overpricing leads to low bids," Liebman says. "Proper pricing leads to high bids."
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don't forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. "If your grass isn't green, make it green," Liebman says. "If you have weeds, get rid of them. If the shrubs are overgrown, cut them." Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. "If there are any doubts about the mechanical functions, a buyer will walk," Remodeling Magazine's Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don't forget to paint over ugly water stains. If you don't, a potential buyer could see it as a warning sign of a larger issue.
If you're inclined to leave your home as is, prepare to drop your asking price. "I hate to say it, but price cures everything," says Era Key Realty's Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There's some basic advice that's worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group's Liebman even suggests fresh flowers. "Baking cookies could be a bit silly and obvious," she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.
Nick Woodard
Keller William Realty Franklin,TN
www.nickwoodard.com
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what's selling, what's not and why. Finally, don't expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
That said, can you still get a good price? You bet. Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. "The first question a buyer asks is how long the house has been on the market," says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. "If it's been on a while, they ask what is wrong with the house."
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. "Overpricing leads to low bids," Liebman says. "Proper pricing leads to high bids."
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don't forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. "If your grass isn't green, make it green," Liebman says. "If you have weeds, get rid of them. If the shrubs are overgrown, cut them." Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. "If there are any doubts about the mechanical functions, a buyer will walk," Remodeling Magazine's Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don't forget to paint over ugly water stains. If you don't, a potential buyer could see it as a warning sign of a larger issue.
If you're inclined to leave your home as is, prepare to drop your asking price. "I hate to say it, but price cures everything," says Era Key Realty's Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There's some basic advice that's worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group's Liebman even suggests fresh flowers. "Baking cookies could be a bit silly and obvious," she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.
Nick Woodard
Keller William Realty Franklin,TN
www.nickwoodard.com
Monday, October 15, 2007
Q & A about your credit score
My friend was told by a "debt counselor" that he should keep his credit utilization ratio at about 30 percent because having it too low would hurt his score. I dispute this notion. My (credit ration) generally sits between 1 and 4 percent based on monthly purchases (paid in full) during a statement period. Can you settle this dispute?
-- John R., Phoenix Ariz.
In general, making generalizations about credit scores is not a good idea.
According to the people who created the scoring system, a lower credit utilization is usually gives you a better score. That's why closing credit accounts without paying down debt on open accounts can lower your score. By reducing your total credit limit without a corresponding drop in your debt balance, you raise the ratio of debt to credit limit.
Still, your score is based on a complex formula that takes a number of factors into account. For more on how it works, check out the Fair Isaac & Co (FICO) Web site. They used to be fairly secretive about how the scoring works, but these days they’re happy to share the criteria with the public.
As for your friends “credit counselor,” in my opinion many of those holding themselves out as counselors are simply selling more credit. The common scam is to consolidate loans into a new one, charge a higher interest rate and then stretch out the term for many more years to lower the monthly payment. Since most people are so fixed on monthly payments they go along with this. But they end up paying much more interest before the loans are paid off.
The only credit counselors we believe to be legit are those certified and affiliated with the National Federation of Credit Counselors. You can find one in your area by going to www.nfcc.org.
For a list of reputable qualified lenders or assistance with your next real estate transaction, visit www.nickwoodard.com
Thanks and God Bless,
Nick Woodard
Keller Williams Realty
615-566-9839
www.nickwoodard.com
-- John R., Phoenix Ariz.
In general, making generalizations about credit scores is not a good idea.
According to the people who created the scoring system, a lower credit utilization is usually gives you a better score. That's why closing credit accounts without paying down debt on open accounts can lower your score. By reducing your total credit limit without a corresponding drop in your debt balance, you raise the ratio of debt to credit limit.
Still, your score is based on a complex formula that takes a number of factors into account. For more on how it works, check out the Fair Isaac & Co (FICO) Web site. They used to be fairly secretive about how the scoring works, but these days they’re happy to share the criteria with the public.
As for your friends “credit counselor,” in my opinion many of those holding themselves out as counselors are simply selling more credit. The common scam is to consolidate loans into a new one, charge a higher interest rate and then stretch out the term for many more years to lower the monthly payment. Since most people are so fixed on monthly payments they go along with this. But they end up paying much more interest before the loans are paid off.
The only credit counselors we believe to be legit are those certified and affiliated with the National Federation of Credit Counselors. You can find one in your area by going to www.nfcc.org.
For a list of reputable qualified lenders or assistance with your next real estate transaction, visit www.nickwoodard.com
Thanks and God Bless,
Nick Woodard
Keller Williams Realty
615-566-9839
www.nickwoodard.com
Monday, October 8, 2007
September closings in Willimson County Tennessee
Williamson County Association of REALTORS® Announces September Housing Numbers
October 8, 2007 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of September 2007. There were 364 residential and condominium closings reported for the month of September, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to September of 2006, the single family residential closings decreased 30 percent and the median price decreased by 2 percent. Condominiums closings have decreased by 42 percent and the median price increased by 8 percent. The average days on the market (DOM) for residential homes have decreased by 35 percent and condominiums have increased by 14 percent. Days on the market have been consistent since the onset of 2007, with the days ranging from 61 - 68 days. Median prices have remained consistent since January 2007, ranging from $367,500 to $391,200. The median is a typical market price where half of the homes sold for more and half sold for less.
"Our County continues to attract buyers and sellers of property and homes. Although the market is not performing to 2006's record-setting year, the market has been consistent since the beginning of 2007 and the trend of seasonal closings is consistent year over year," said Susan McKinney, 2007 President of the Williamson County Association of REALTORS®.
For more information about our real estate market or for my personal real estate services, please contact me at 615.566.9839 or go to www.nickwoodard.com. Thank you and God Bless.
Nick Woodard
Keller Williams Realty
615.566.9839
nick@nickwoodard.com
www.nickwoodard.com
October 8, 2007 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of September 2007. There were 364 residential and condominium closings reported for the month of September, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to September of 2006, the single family residential closings decreased 30 percent and the median price decreased by 2 percent. Condominiums closings have decreased by 42 percent and the median price increased by 8 percent. The average days on the market (DOM) for residential homes have decreased by 35 percent and condominiums have increased by 14 percent. Days on the market have been consistent since the onset of 2007, with the days ranging from 61 - 68 days. Median prices have remained consistent since January 2007, ranging from $367,500 to $391,200. The median is a typical market price where half of the homes sold for more and half sold for less.
"Our County continues to attract buyers and sellers of property and homes. Although the market is not performing to 2006's record-setting year, the market has been consistent since the beginning of 2007 and the trend of seasonal closings is consistent year over year," said Susan McKinney, 2007 President of the Williamson County Association of REALTORS®.
For more information about our real estate market or for my personal real estate services, please contact me at 615.566.9839 or go to www.nickwoodard.com. Thank you and God Bless.
Nick Woodard
Keller Williams Realty
615.566.9839
nick@nickwoodard.com
www.nickwoodard.com
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