Q. A friend told me I can buy a retirement home using my IRAs to purchase property. Is this legal? And, if so, how do I go about doing it?
A. Yes, you can buy your retirement home using your IRAs, 401K, or pension. But there is a catch. You can’t live in the house until you can take the entire value as a distribution from your IRAs and that’s after age 59.5. Until then, you’ll have to rent it to someone else!
You can use IRAs and Roth IRAs to purchase property (homes...and even apartment buildings). You’ll have to do your homework, though. Most banks and brokerage firms don’t offer this service—it’s just too costly for them implement.
How do you set up this program? First, you can transfer your existing IRA, or roll over money from an existing plan (401K, pension) to a “self-directed IRA.” You’ll then need to have bank custodian oversee the account. They will receive an annual fee for this, typically .5 percent to 1.5 % percent of the asset. You’ll also need a property manager to maintain and rent the property. You are not permitted to manage the property, according to IRS regulations.
If you’re truly interested in pursuing this option, choose your investment wisely. Make sure you base your decision on the size of your IRA, the time between now and age 59.5, and your level of comfort with risk. For more information on investing with IRAs go to www.IraResources.com . If you are in the market for a home and need competent and caring representation, please call me at 206-226-0565.
Monday, August 31, 2009
Sunday, August 30, 2009
“How Live On The Bright Side”
Teaching Kids
Encourage, limit, help, show, and give. That’s a simple way to say it, but it’s true. Today there can be so many distractions, too many expectations, and unrealistic and realistic fears kids must face each day. Here are five simple strategies to help your kids learn how to live on the brighter side of life:
1. Encourage Your Child’s Special Talents. Research has shown that children who are encouraged to follow their talents by supportive parents are much more successful than parents who have high expectations and are critical.
2. Limit Your Child’s Exposure To News. The news can create an unrealistic perception of danger in your child’s day-to-day life.
3. Help Them To Find The Bright Spot In Their Day. Make this a daily ritual for your family, and have your kids write them down in a book.
4. Show Them Tools To Shake Off A Bad Mood. If your child is a little blue, spend time with him/her reading, talking, playing a game or musical instrument, or go for a walk together.
5. Give Them Hope. Plant a tree...or a garden. Rent a funny comedy. Go see a play. Turn on some upbeat music and get up and dance.
6. Teach by example, live your life as upbeat and positive as you can. Children watch and learn your habits so look at things in a glass half full kind of way.
Encourage, limit, help, show, and give. That’s a simple way to say it, but it’s true. Today there can be so many distractions, too many expectations, and unrealistic and realistic fears kids must face each day. Here are five simple strategies to help your kids learn how to live on the brighter side of life:
1. Encourage Your Child’s Special Talents. Research has shown that children who are encouraged to follow their talents by supportive parents are much more successful than parents who have high expectations and are critical.
2. Limit Your Child’s Exposure To News. The news can create an unrealistic perception of danger in your child’s day-to-day life.
3. Help Them To Find The Bright Spot In Their Day. Make this a daily ritual for your family, and have your kids write them down in a book.
4. Show Them Tools To Shake Off A Bad Mood. If your child is a little blue, spend time with him/her reading, talking, playing a game or musical instrument, or go for a walk together.
5. Give Them Hope. Plant a tree...or a garden. Rent a funny comedy. Go see a play. Turn on some upbeat music and get up and dance.
6. Teach by example, live your life as upbeat and positive as you can. Children watch and learn your habits so look at things in a glass half full kind of way.
Saturday, August 29, 2009
Inexpensive Staging Tips
Q. We’ve purchased a new house, and are selling our existing home. We don’t have a lot of money to fix up our existing home before selling it. Do you have any inexpensive suggestions?
My first suggestion is to deep-clean the house and “make it sparkle!” Here are a few more tricks of the trade to help you get the most for your money:
• If your master bedroom looks drab, add new linens, pillows, and shams to spice it up the bedroom and add a little color.
• Buy a bright colored shower curtain and rug to perk up a dull bathroom. Re-grout if your bathroom grout is chipped or discolored.
• Eliminate clutter. Remove photos, knickknacks, refrigerator magnets and other personal items. Organize your cabinets and closets.
• Clear off kitchen and bathroom counter tops. Put away appliances.
• Arrange your furniture so it focuses on your home’s strongest feature (it may a view, a garden, flowers, or a painting). Remove excess furniture. Create a “model home” look, clean, attractive with well-place items.
• Dress up your rooms with attractive area rugs and framed prints.
• Install new light fixtures if they’re damaged or unappealing.
• Paint your walls in neutral tones. Paint the front door if needed.
• Trim bushes and make sure the outside landscaping is neat and clean.
If you are in the market for a buying or selling a home and need competent and caring representation, please call me at 206-226-0565.
My first suggestion is to deep-clean the house and “make it sparkle!” Here are a few more tricks of the trade to help you get the most for your money:
• If your master bedroom looks drab, add new linens, pillows, and shams to spice it up the bedroom and add a little color.
• Buy a bright colored shower curtain and rug to perk up a dull bathroom. Re-grout if your bathroom grout is chipped or discolored.
• Eliminate clutter. Remove photos, knickknacks, refrigerator magnets and other personal items. Organize your cabinets and closets.
• Clear off kitchen and bathroom counter tops. Put away appliances.
• Arrange your furniture so it focuses on your home’s strongest feature (it may a view, a garden, flowers, or a painting). Remove excess furniture. Create a “model home” look, clean, attractive with well-place items.
• Dress up your rooms with attractive area rugs and framed prints.
• Install new light fixtures if they’re damaged or unappealing.
• Paint your walls in neutral tones. Paint the front door if needed.
• Trim bushes and make sure the outside landscaping is neat and clean.
If you are in the market for a buying or selling a home and need competent and caring representation, please call me at 206-226-0565.
Friday, August 28, 2009
Kindness Is Good For You!
When was that last time you noticed you were grumpy, then, out of the blue, someone does or says something nice to you? Didn’t it make you feel better…even a lot better?
When you are kind to other people, it also makes you feel good about yourself. And it’s good for your health. Researchers have found positive people have fewer health problems. In his book, It’s a Meaningful Life, it Just Takes Practice, author Bo Lozoff writes about the importance of being kind and building a better community. That community encompasses family, friends, co-workers, and the people you meet in your daily life (the bank teller, cashier, the parking lot attendant).
So as you go about your day, be kinder to your spouse, your kids, your co-workers, and wherever your travels take you. Then see if adding a little more kindness to your daily diet makes a difference in how you feel, how other people respond to you, and how others feel when you are kind to them. It’s a worthwhile experiment!
When you are kind to other people, it also makes you feel good about yourself. And it’s good for your health. Researchers have found positive people have fewer health problems. In his book, It’s a Meaningful Life, it Just Takes Practice, author Bo Lozoff writes about the importance of being kind and building a better community. That community encompasses family, friends, co-workers, and the people you meet in your daily life (the bank teller, cashier, the parking lot attendant).
So as you go about your day, be kinder to your spouse, your kids, your co-workers, and wherever your travels take you. Then see if adding a little more kindness to your daily diet makes a difference in how you feel, how other people respond to you, and how others feel when you are kind to them. It’s a worthwhile experiment!
Thursday, August 27, 2009
7 Simple Steps To Happiness And Success!
Are you feeling stuck on the roadmap of life? Have you longed for greater success and happiness, but haven’t yet hooked the brass ring?
Albert Schweitzer once wrote, “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.” Here are seven steps you can take today to achieve more happiness and success in your life:
1. Believe In Yourself. Identify your natural talents and abilities. Do what you enjoy and what you do best. Truly successful and happy people find joy in their working lives. Invest your time in what you do best. Focus on your strengths and not your weaknesses.
2. Develop a Vision. First, define your path and start working your plan. Write down a vision for yourself and your life. Be specific. What do you want to accomplish? What do you want your life to look like in 5 years, 10 years?
3. Develop Good Habits. Happy and successful people choose good habits. If you’re watching too much TV, chronically late, or eating poorly, make a commitment to change your bad habits into habits consistent with your goals.
4. Show Gratitude. The happiest people are also the most grateful people. Count your blessings frequently and you’ll quickly start seeing a change in yourself and the world around you.
5. Take A Chance. Seize opportunities! Success and happiness does not come to those who sit and wait for it to be brought to them.
6. Give to Others. Studies reveal that the happiest people are also the most generous. Do, say, or give something nice to another and see how your own life improves.
7. Take Responsibility. You hold the key to your future. Take responsibility for your actions. Choose the work you like to do, and do it well. Ultimately, you are the master of your fate. You choose your own future by the decisions you make and the actions you take.
Albert Schweitzer once wrote, “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.” Here are seven steps you can take today to achieve more happiness and success in your life:
1. Believe In Yourself. Identify your natural talents and abilities. Do what you enjoy and what you do best. Truly successful and happy people find joy in their working lives. Invest your time in what you do best. Focus on your strengths and not your weaknesses.
2. Develop a Vision. First, define your path and start working your plan. Write down a vision for yourself and your life. Be specific. What do you want to accomplish? What do you want your life to look like in 5 years, 10 years?
3. Develop Good Habits. Happy and successful people choose good habits. If you’re watching too much TV, chronically late, or eating poorly, make a commitment to change your bad habits into habits consistent with your goals.
4. Show Gratitude. The happiest people are also the most grateful people. Count your blessings frequently and you’ll quickly start seeing a change in yourself and the world around you.
5. Take A Chance. Seize opportunities! Success and happiness does not come to those who sit and wait for it to be brought to them.
6. Give to Others. Studies reveal that the happiest people are also the most generous. Do, say, or give something nice to another and see how your own life improves.
7. Take Responsibility. You hold the key to your future. Take responsibility for your actions. Choose the work you like to do, and do it well. Ultimately, you are the master of your fate. You choose your own future by the decisions you make and the actions you take.
Wednesday, August 26, 2009
Homeowners Insurance Information for the First Time Buyer
Q. We have just purchased our first home. What should we know about homeowner’s insurance before we go shopping for a policy?
A. Getting homeowner’s insurance should be a fairly simple process. Your goal is to get enough coverage to rebuild your house and replace the contents in the event of a total loss of your home. Along with insuring your house, you also need protection in case someone is injured on your property and sues you for maximum damages. Some agents will pull a “quickie” assessment based on your location, the size of your mortgage, and the number of rooms in your home. This can be risky at best, so here is some insider information on how the insurance industry will gauge your homeowner’s policy.
The insurance industry classifies homeowner’s policies on a scale of 1 to 8, tagging them as, for example, “HO-3.” Each level defines a different type of policy, separated by what they cover. Here is a brief list of HO1-8 policies.
HO-1, HO-2 – These basic policies cover from 11 to 17 named perils. Named perils can include fire, lightning, riot, theft, vandalism, falling objects, snow and ice damage, and faulty electrical and heating systems.
HO-3 – This homeowner’s policy is broader and more practical for most people. HO-3 policies protect against all perils except the ones explicitly excluded from the policy. Earthquakes, floods, and nuclear accident are usually excluded.
HO-4 – This level is excellent for renter’s insurance that covers your possessions from 17 named perils, but excludes the structure itself.
HO-6 – If you buy a co-op or condominium residence this level of insurance covers personal property and adequate liability coverage.
HO-8 – If have an antique or landmark-class home, you may not be able to get a guaranteed replacement policy. Companies figure the cost of rebuilding this type of home with the original materials and craftsmanship to be impossibly high. This policy covers against 11 named perils and will repair damage (with no guarantee on materials quality), or pay you the actual cash value of your home.
A. Getting homeowner’s insurance should be a fairly simple process. Your goal is to get enough coverage to rebuild your house and replace the contents in the event of a total loss of your home. Along with insuring your house, you also need protection in case someone is injured on your property and sues you for maximum damages. Some agents will pull a “quickie” assessment based on your location, the size of your mortgage, and the number of rooms in your home. This can be risky at best, so here is some insider information on how the insurance industry will gauge your homeowner’s policy.
The insurance industry classifies homeowner’s policies on a scale of 1 to 8, tagging them as, for example, “HO-3.” Each level defines a different type of policy, separated by what they cover. Here is a brief list of HO1-8 policies.
HO-1, HO-2 – These basic policies cover from 11 to 17 named perils. Named perils can include fire, lightning, riot, theft, vandalism, falling objects, snow and ice damage, and faulty electrical and heating systems.
HO-3 – This homeowner’s policy is broader and more practical for most people. HO-3 policies protect against all perils except the ones explicitly excluded from the policy. Earthquakes, floods, and nuclear accident are usually excluded.
HO-4 – This level is excellent for renter’s insurance that covers your possessions from 17 named perils, but excludes the structure itself.
HO-6 – If you buy a co-op or condominium residence this level of insurance covers personal property and adequate liability coverage.
HO-8 – If have an antique or landmark-class home, you may not be able to get a guaranteed replacement policy. Companies figure the cost of rebuilding this type of home with the original materials and craftsmanship to be impossibly high. This policy covers against 11 named perils and will repair damage (with no guarantee on materials quality), or pay you the actual cash value of your home.
Tuesday, August 25, 2009
Banish Headaches with Amazing Natural Remedies
Do you suffer from chronic headaches? Headache pain is one of the top ten reasons for absenteeism in the workplace and schools. The migraine headache strikes 18 percent of women, 6 percent of men and (surprisingly) 8 percent of children. Migraines are throbbing headaches that affect only one side of the head and can be accompanied by vision complications, nausea, and sensitivity to light and sound. The duration of a migraine can last from a few hours to a few days.
A variety of foods, the body’s own hormones, and environmental stimuli can trigger migraines. Migraine sufferers should avoid beer, red wine, monosodium glutamate (used liberally in Chinese foods), certain cheeses, yogurt, and smoked fish. Sodium nitrate, found in bacon, cold cuts, and hot dogs is also a known cause. Caffeine and chocolate also may be connected with migraines.
Fluctuations in hormones can cause migraines. It can affect men, but it especially affects women during their monthly cycle – possibly due to fluctuations in estrogen and serotonin levels in the body. Sixty percent of female migraine sufferers have them in relation to their monthly cycle.
People on long-term prescription medications or painkillers like aspirin and acetaminophen can experience a “boomerang” effect when medications are stopped. The body may go into withdrawal, triggering a massive migraine. A magnesium deficiency may also trigger migraines, and has been correlated to the migraine-like symptoms of early fibromyalgia.
Can anything be done for sufferers of migraine headaches? The answer is yes. There are new prescription medications for treatment of migraines, but simpler natural solutions may effectively eliminate or lessen migraine suffering with less cost and side effects. Here are a few suggestions:
1. Watch what you eat. Keep a food diary, and notice the effects of the food listed above. If symptoms appear up to 18 hours after eating, avoid the food.
2. Try the herb “feverfew.” This potent herb reduces the release of serotonin and the production of an inflammatory substance known as prostaglandins. Both of these events in the body are associated with migraines. Taken regularly, it has been shown to prevent future attacks.
3. Take 800 mg. of L-carnitine a day. The amino acid L-carnitine decreases the sensitivity of the body’s nervous system to fluctuating oxygen levels, one of the key migraine triggers.
4. Take a calcium and magnesium supplement daily. These two minerals work in tandem to reduce the duration and severity of migraine attacks.
A variety of foods, the body’s own hormones, and environmental stimuli can trigger migraines. Migraine sufferers should avoid beer, red wine, monosodium glutamate (used liberally in Chinese foods), certain cheeses, yogurt, and smoked fish. Sodium nitrate, found in bacon, cold cuts, and hot dogs is also a known cause. Caffeine and chocolate also may be connected with migraines.
Fluctuations in hormones can cause migraines. It can affect men, but it especially affects women during their monthly cycle – possibly due to fluctuations in estrogen and serotonin levels in the body. Sixty percent of female migraine sufferers have them in relation to their monthly cycle.
People on long-term prescription medications or painkillers like aspirin and acetaminophen can experience a “boomerang” effect when medications are stopped. The body may go into withdrawal, triggering a massive migraine. A magnesium deficiency may also trigger migraines, and has been correlated to the migraine-like symptoms of early fibromyalgia.
Can anything be done for sufferers of migraine headaches? The answer is yes. There are new prescription medications for treatment of migraines, but simpler natural solutions may effectively eliminate or lessen migraine suffering with less cost and side effects. Here are a few suggestions:
1. Watch what you eat. Keep a food diary, and notice the effects of the food listed above. If symptoms appear up to 18 hours after eating, avoid the food.
2. Try the herb “feverfew.” This potent herb reduces the release of serotonin and the production of an inflammatory substance known as prostaglandins. Both of these events in the body are associated with migraines. Taken regularly, it has been shown to prevent future attacks.
3. Take 800 mg. of L-carnitine a day. The amino acid L-carnitine decreases the sensitivity of the body’s nervous system to fluctuating oxygen levels, one of the key migraine triggers.
4. Take a calcium and magnesium supplement daily. These two minerals work in tandem to reduce the duration and severity of migraine attacks.
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