Registered Investment Advisor - All Comments

re: John and Jane Bighouse Downsize

scottb — Wed, 02 Jul 2008 18:49:11 GMT

Flatman--- You're absolutely right. There are lots of choices out there but you may not find exactly what you want in the place you want to be. One good way to start is to pick up a copy of "Where To Retire" magazine. It regularly compares different cities and provides good data on shelter costs (not to mention taxes, etc). I think of down-sizing as a major exercise in adaptation. The more adaptable we are, the more we are likely to find good solutions to the issues we face. Scott

re: John and Jane Bighouse Downsize

scottb — Wed, 02 Jul 2008 18:41:14 GMT

ESPlanner doesn't make any automatic assumptions about shelter costs. It allows you to enter the figures for the house you currently own (including financing) and to select a time to sell and move to another house or condo (or rental) with assumptions about its costs. Since costs are related to size and specific areas, you can estimate pretty close to what the actual figures are likely to be. From there, ESPlanner will calculate a level standard of consumption--- the amount of money, in constant dollars--- that you will have to spend after taxes, Medicare premiums, shelter expenses, and any other special items that you may have entered. Because it calculates a specific lifetime annual amount, the program allows you to make close comparisons of different decisions. Scott

re: Yes, You’re A Virtual Millionaire. But So Is Everyone Else.

scottb — Sat, 28 Jun 2008 19:35:57 GMT

Insurance has often been used as a substitute for credit quality and credit quality is what counts--- the ability of the municipality to service its debt.

re: Yes, You’re A Virtual Millionaire. But So Is Everyone Else.

pgornick — Thu, 26 Jun 2008 15:18:50 GMT

Given the financial condition of the firms that insure municipal bonds, you should prefer uninsured but AAA-rated bonds over insured bonds. Scott, can you expand on this? Do uninsured bonds always have a higher yield?

re: John and Jane Bighouse Downsize

flatman — Wed, 25 Jun 2008 18:25:54 GMT

A lot depends on your definition of downsizing. About 3 years ago I moved to a less expensive area of the country from New England. I actually was forced to buy a bigger house than I wanted because many of the retirement areas were not building smaller houses then at least not unless you wanted to live in a development next door to a couple with 2 kids and a swing set. But I got much lower property taxes, much lower utility bills (my old heating would have been $6K this year), lower maintenance and better weather. Its was interesting to me that a lot of the building requirements in many of the desirable retirement areas have covenants that require houses to be be quite large.

Thoughts on Retirement and Financial Independence | Luxury Star in TURKEY

Thoughts on Retirement and Financial Independence | Luxury Star in TURKEY — Wed, 25 Jun 2008 08:51:23 GMT

Pingback from Thoughts on Retirement and Financial Independence | Luxury Star in TURKEY

re: John and Jane Bighouse Downsize

Barney — Tue, 24 Jun 2008 23:40:56 GMT

Scott- Does the ESPlanner factor in the reduced utility, property taxes, and maintenance associated with going from a 3K to 1.5K SF of space when downsizing? As I am contemplating downsizing, I expect also to benefit from these lower costs. On the other hand, there are the transaction costs of selling and buying the homes, and the costs of moving personal goods. Again, does the ESPlanner compute thes downside costs? Thanks.

re: John and Jane Bighouse Downsize

flattax — Tue, 24 Jun 2008 17:31:07 GMT

Mr. Burns: Life style and personal security aside, do you have a retiree's financial "formula" to evaluate renting an apartment versus purchasing a condo? Thanks in advance.

re: Another Reason Oil Prices Are Soaring

worriedinTX — Tue, 24 Jun 2008 15:02:26 GMT

I am not disagreeing with the premise that the value of oil may have direct correlation to the state of the US economy---frankly I am glad that there has been no attempt to use the pound or euro as the benchmark to price oil at after the past year of US rollercoaster.... but my husband was watching C-SPAN this morning and viewed some of the testimory of the hearings about oil speculation and price manipulations.... When Morgan Stanley is one of the largest owners of oil futures AND acts as an oil analyst prognosticating about the current/future price of oil on an "open market"--the fox is in the hen house...and he is wearning sheep's clothing--to mix several contradictory metaphors/images... Hearing that closing the "Enron loophole" will just send the futures market into more obscure and difficult to control/supersive areas is probably true to a small extent but it is also extremely self-service and protective advice---since many of the people giving it have the most to loose...

Thoughts on Retirement and Financial Independence ??? Get Rich Slowly

Thoughts on Retirement and Financial Independence ??? Get Rich Slowly — Tue, 24 Jun 2008 07:19:13 GMT

Pingback from Thoughts on Retirement and Financial Independence ??? Get Rich Slowly

re: John and Jane Bighouse Downsize

scottb — Mon, 23 Jun 2008 16:59:50 GMT

2B: Couples cover the board. I'm met couples who sold their house easily and moved on to a smaller house, to a condo, or to become renters rather than owners. Whether it can be done depends a lot of attitude and attachment to things. Many people can't "give up" any of their possessions. Others look around and realize that they could easily live without most of the "stuff" they've accumulated. to JDwalker04: Lot's of people do this. I know a couple in the process right now. Ironically, it is often easier to find a rental unit than it is to find a condo or small house. Many of the condos that are for sale are in the "lux" market and have wildly upscale prices that negate the benefit of downsizing. The same market, however, may offer very nice apartments at reasonable rents. Scott

Weekend Blog Roundup: Emergency Charity Fund, MLM, and AMT - Consumerism Commentary: A Personal Finance Blog

Mon, 23 Jun 2008 04:37:43 GMT

Pingback from Weekend Blog Roundup: Emergency Charity Fund, MLM, and AMT - Consumerism Commentary: A Personal Finance Blog

re: John and Jane Bighouse Downsize

jdwalker04 — Sun, 22 Jun 2008 13:29:03 GMT

In my memory, anytime that you deal with the subject of downsizing, your conclusion is the suggestion to buy a smaller house or condo. Why do you seem to never mention rental of apartments? From our own years of apartment living as a young couple, we certainly are aware of the sometimes undesirable issues of the apartment environment. But considering only the money side of it, is there an advantage to the owned condo? We would get no tax benefit from itemizing, would have property and school taxes, and would be responsible for maintenance. Does condo ownership have some money benefit beyond these negatives that trumps apartment rental?

re: John and Jane Bighouse Downsize

2B — Sat, 21 Jun 2008 13:26:23 GMT

This "concept" is a recurring discussion between me and my wife. We are empty nesters with the 3,000 sq ft money pit. She can't imagine our life without all of our "stuff" and two rooms dedicated to the occasional visitors. Trying to point out the financial aspects makes no difference to her. I believe that men have the weakness of identifying themselves with their career. Women identify themselves with their house. I'm ready to move on but she's still holding on.

re: Even at Low Yields, Fixed Income Is Essential for a Retirement Portfolio

tlroberts — Fri, 20 Jun 2008 18:52:06 GMT

Scott, If we start building our ladder five years before retirement should we fill the ladder with TIPS inside our regular IRA accounts?