Housing Prices Decline Across the Pond

We aren’t the only one’s suffering from falling real estate prices. British properties are down 8.1% on an annual basis, while the number of real estate transactions have decreased to an all time low.
They are also dealing with fears of a recession with key economies being affected.

Much like the United States, retailers have been hit hard by reduced consumer spending.

Read the full story here.

Why the poor stay poor.

One of the major reasons why the poor stay poor is that they fail to take advantage of low cost or money saving opportunities available to them. A study was published by the Center for Studying Health System Changes found that of the 35.4 million people without health insurance, 20% declined coverage from their employers. People often underestimate how likely it is that they will become ill and the associated expenses with illness until it is staring them directly in the face. Another Merrill Lynch study found that 41% of their employers say their employees don’t participate because they can’t afford it. While, that may be true for some of the cases many others will spend $2,000-$3,000 on cigarettes or lottery tickets.

An International Study showed that if you grew up in a low income household, there was a 50% chance that you would become a low income adult. Although this study had far reaching effects and cast a dreary perspective on the future, I remain optimistic. When the odds are 50/50, then you have a classic “glass half full” or “glass half empty.” You could cite that you have a 50% chance of living as an impoverished adult, but instead I choose to see that you have a 50% chance of overcoming a childhood filled with lack and having the possibility of living a life full of prosperity.

Wishing You Wealth in all its Greatest Forms

Living Longer or Living Better?

There’s been a shift in the media attention on aging over the last twenty years. Whether you believe the media is a reflection of nation or not, one thing is true…the focus has changed. As recently at fifteen years ago, the big push was finding out ways to live longer. They showcased new options for preventative measures, medical procedures, and let’s not forget new prescription drugs. The landscape of aging was entering a new frontier. Little did they realize that living longer carried a whole new set of issues. Sure, now you have a longer life expectancy, but with it came a dramatic realization that living longer isn’t a benefit if you can’t enjoy that time. In recent years, the shift in consciousness has been on living “better.” This ranges from eating better to improving brain function. Health food stores and farmer’s markets are more popular than ever with Wild Oats, Whole Foods and Mother’s Market catering to those wishing to live “consciously.” I wouldn’t credit all the push toward a “greener” world with the baby boomer generation, but they have certainly helped fund the growth and expansion of it.

Wishing You Wealth in all its Greatest Forms

Lottery Retirement Plan

While purchasing my SOBE tea at the liquor store, a man told me that this was going to be his lucky day. He had worked hard all his life with nothing to show for it and he was going to win the lottery. This interested me intensely since everything in my training as a financial advisor doesn’t include the lottery as a viable retirement plan. Hmm…I thought to myself...I wonder how many people are depending on the lottery for retirement. Well, an article on MSN stated that 40% of people with incomes between $25K-$35K and 50% of people with incomes between $15K-$25K believe that their retirement nest egg will come from the lottery.

All I can say is that is startling. So if you subscribe to that belief you have a 1 in 135,145,920 of retiring well from your lottery winnings. To increase your chances, you might want to stop by a psychic that will not only tell you amazing facts about your past, but also what the next lottery numbers will be. Luckily, I have my six numbers clearly printed on the back of my fortune cookie message.

Good luck to all you players.

Wishing you Wealth in all its Greatest Forms.

Socially Secure?

Social Security was created by Franklin D. Roosevelt as part of his plan to enhance economic security. Signed into law in 1935 to pay workers age 65 or older a continuing income. According to the White House there were 16 workers to support every one Social Security recipient during the Truman administration. Today, there are only 3.3 workers supporting every beneficiary. By the time the youngest workers turn 65 there will only be two workers supporting every beneficiary.

Social Security is a big source of income for the elderly, providing the majority of income for two thirds of beneficiaries and all of the income for 20% of them. Many people believe that Social Security will disappear and be unavailable for today's youngest workers. It may still be around, but there's a good chance that benefits will be reduced or the qualifying age will be
increased.

The bottom line is that we will be facing a much different retirement than our parents and grandparents did.

Wishing You Wealth in all its Greatest Forms

Real Estate Update - July Independence Day Edition

The real estate market in North Orange County is starting to see some signs of life. Condo sales are up 5.5%. The seasonal buyers trend is up due to many children being out of school, which allows families to consider moving to new homes. It's not uncommon to see families led in caravans by their fearless agents, with the entire family in tow. Many properties that are listed aggressively in relatively good condition are going into escrow in less than two weeks at premiums above their asking price. Buyers who are looking for a bargain are coming off the sidelines. The majority of the properties being viewed are short sales and bank owned properties.

Short sales and bank owned sales currently account for nearly 50% of the pending sales and about 37% of the current listings in Orange County. The inventory of new homes has been falling an average of one hundred per week in comparison to increases of two hundred per week, the same time last year. This may signal that the first wave of foreclosures due to increased mortgage payments may have already worked their way into and through the market.

In a recent Orange County Register article, citing Economists at Global Insight believe that Orange County real estate is now 5.2% undervalued. Whether or not you buy into the media, local activity and interest has increased.

Wishing You Wealth in all its Greatest Forms