Daily Real Estate News

NAR Asks Trump Administration to Reopen Rural Loan Program

NAR Daily News Magazine - 22 hours 33 min ago

Rural Housing Loan Program applications have been stalled since the government shutdown started.

CNN Quotes NAR Chief Economist on Economic Drag of Shutdown

NAR Daily News Magazine - 22 hours 33 min ago

While documenting the effect the month-long government shutdown is having on federal government employees and businesses, reporter Lydia DePillis turned to NAR for comment on the home sales impact.

Gov’t Shutdown Puts Opportunity-Zone Investors in Limbo

NAR Daily News Magazine - 22 hours 33 min ago

Those who were planning to move quickly in taking advantage of opportunity-zone tax provisions are putting on the brakes.

Builders Bet on Luxe Townhomes to Win Over Young Buyers

NAR Daily News Magazine - 22 hours 33 min ago

Homebuilders across the country are betting on high-end townhouses to try to get more millennials into homeownership.

Man Arrested in Armed Robbery of Real Estate Office

NAR Daily News Magazine - 22 hours 33 min ago

Two masked men in Kirksville, Missouri, held a gun to a real estate broker’s head as they demanded money. Police are still on the lookout for one of the suspects.

Why 400,000 Young Adults Aren’t Buying

NAR Daily News Magazine - 22 hours 33 min ago

A new study by the Federal Reserve points to one of the main culprits for the lower rate of homeownership among young people over the past decade. 

‘Bucket’ Approach to Spending Reduces Stress of Retirement

RisMedia Consumer News - January 16, 2019 - 4:13pm

(TNS)—Anyone retiring in 2019 could understandably be feeling a little skittish.

There’s retirement research showing market declines in the first few years can devastate a portfolio’s chances of providing enough income for life, and recent volatility after a nearly decade-long bull market is worrisome.

Interest rates moving higher could be a good sign, in theory, for someone hoping to build ladders of CDs, for example. On the other hand, if it also ushers in an era of rising inflation, that’s troubling, too. A prolonged government shutdown could have even more of an impact on the economy.

If delaying is no longer an option, either because of health, the job market or simply your own conviction, consider building in a few contingency plans. Several financial advisers contacted for this article say they are carving out cash buckets for retirees’ living expenses. Some of them take spending money directly from the cash bucket, replenishing it with stock gains periodically, while others keep the cash as a reserve to draw from during market downturns.

Either way, they say the cash acts as a volatility buffer, allowing clients to refrain from panic selling into a market decline.

“Creating a bucket strategy can help clients compartmentalize assets designed for certain purposes or periods of time,” says Ashley Folkes, a financial planner in Scottsdale, Ariz. “Having safe money to draw down from for the first few years alleviates some of the stress from the buckets (that are invested in stocks).”

Consider a couple retiring this year at precisely their full retirement ages, as defined by the Social Security Administration. The 66-year-olds will get a combined $3,000 a month in Social Security benefits and they have retirement accounts worth $500,000. Suppose the couple wants to withdraw $21,853 this year from savings, which is the spending rate recommended by BlackRock’s LifePath Spending Tool. Using a bucket strategy, the couple would put $65,559 into the cash bucket while investing the remaining $434,441 in a portfolio of 60 percent stocks and 40 percent bonds.

So, the couple will have about $260,665 invested in the stock market, $173,776 in bonds and the $65,559 in cash. Without the cash reserve, a 60/40 stock/bond allocation would mean the couple had $300,000 in stocks and $200,000 in bonds.

Clearly, the cash bucket creates a more conservative portfolio overall, which is important for retirees to understand as they try to find the appropriate amount of risk to cover their expenses and inflation.

Now, for the cost side of the equation.

Anyone about to retire should know precisely how much they are spending, though advisers says this is sometimes a big area for miscalculations. Particularly in the first few years, travel and hobby expenses can really add up, notes Mike Alves, a financial planner in Pasadena, Calif.

“Every client is different,” he says.

Rather than building in an unsustainable long-term withdrawal rate to accommodate a few trips in the early years, he carves out another bucket for big-ticket items. Clients see that bucket and know that when it’s gone, it’s gone, and they are left with their long-term withdrawal rate that pays the essentials, he says.

Janet Kidd Stewart writes “The Journey” for Tribune Content Agency. Share your journey to or through retirement or pose a question at [email protected].

©2019 Tribune Content Agency
Distributed by Tribune Content Agency, LLC

The post ‘Bucket’ Approach to Spending Reduces Stress of Retirement appeared first on RISMedia.

Where You’ll Find the Most Competitive Buyers

NAR Daily News Magazine - January 16, 2019 - 1:00am

Find out where home shoppers have the highest average credit and the ability to make large down payments.

Report Raises Concerns Over Dual Agency

NAR Daily News Magazine - January 16, 2019 - 1:00am

Consumers are confused when it comes to dual agency arrangements in real estate, cautions a new report from the Consumer Federation of America.

The Trending Kitchen Styles in Remodels

NAR Daily News Magazine - January 16, 2019 - 1:00am

Find out some of the top styles, features, and finishes in the kitchens that will most catch your clients' eyes.

2019’s Most Powerful People in Real Estate

NAR Daily News Magazine - January 16, 2019 - 1:00am

T3 Sixty releases its rankings of the most powerful leaders in the residential real estate industry. See any familiar names?

15 Cities That Bedbugs Love to Call Home

NAR Daily News Magazine - January 15, 2019 - 1:00am

These bugs are on the prowl. Find out where the thirsty parasites are most common.

Non-Owners Dream of Ownership, But…

NAR Daily News Magazine - January 15, 2019 - 1:00am

About 75 percent of non-homeowners believe owning a home is part of their American dream, but they haven’t made a move yet. Here’s why.

REALTORS® Help Reopen Key Programs as Shutdown Drags

NAR Daily News Magazine - January 15, 2019 - 1:00am

In another win for real estate, NAR successfully pushes the IRS to continue a mortgage program vital to keeping closings on track.

Top 5 Landscaping Trends for 2019

NAR Daily News Magazine - January 15, 2019 - 1:00am

The National Association of Landscape Professionals released its list of outdoor features that will dominate yard designs in the new year.

7 Signs of a Market Cooldown

NAR Daily News Magazine - January 15, 2019 - 1:00am

How to tell if your market is cooling and the ways you can adjust accordingly on behalf of your clients.

Would Buyers Benefit If Fed Pauses Rate Hikes?

NAR Daily News Magazine - January 14, 2019 - 1:00am

Notes from the Federal Reserve's latest meeting indicate it won’t raise interest rates until after March.

7 Safest, Most Affordable Cities in America

NAR Daily News Magazine - January 14, 2019 - 1:00am

These locations boast the lowest crime rates and home prices well below the national median of $300,000. Should your clients consider moving to one of them?

Sales Slump Forces Builders to Offer Incentives Again

NAR Daily News Magazine - January 14, 2019 - 1:00am

Twenty-three percent of builders in December lowered their prices and offered deals such as rebates for appliance upgrades, according to a new survey.

Homeownership Tenure at Highest Level in 18 Years

NAR Daily News Magazine - January 14, 2019 - 1:00am

More than a decade out from the last housing crisis, the trend of homeowners staying put longer is only deepening.

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