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I’ve thought long and hard about dabbling in real estate as a way to diversify my investments. With stock market valuations at a dizzying high and my assets growing to a comfortable level, owning physical structures with a separate and good chance of dependable income just feels right for me. I even went as far as seeing a few properties with an agent, but negative thoughts started making me hesitant with the purchase. What if I get that one bad tenant who complains about every little issue and calls you in the middle of the night just to fix easily fixable issues? Or worst, what if the tenant refuses to pay rent and refuses to move out? I consider myself decently intelligent but I’m a novice in tenant selection and one mistake can wipe up years of returns. Even if I’m able to find good tenants, managing them and overseeing repairs is a part time job at the very least, and more work just doesn’t appeal to me.
The other, perhaps more rational reason, is that I live in Southern California. The cash flow of real estate investments are extremely low in this neck of the woods. Annual gross rents typically range in the 4%, maybe 5% range, and that doesn’t even including property taxes, repairs, tenant turnovers and other expenses. Add those in and you’d be lucky to break even. Investors here usually subscribe to the greater fool’s theory in that they can still make a killing on their investments as long as another investor (fool) buys their property at a much higher price. In other words, you don’t need to care about cash flow here because there’s always price appreciation.
The issue is even worst with commercial properties. I looked at a strip mall once to see how much those properties sell for and the yield was expected to be 1% based on the seller’s asking price. ONE PERCENT! Who in the right mind would buy something like that? [ continue reading… ]
From Hurricane Harvey, to Hurricane Irma, to Hurricane Jose and Maria, not to mention rampant wildfires, we’ve seen plenty of natural disasters in the U.S. this summer. Although the greatest loss is the loss of life, there are also thousands of families who have lost their way of life: homes, places of employment, and literally every possession. Even if we refuse to call ourselves rich, those of us with a roof over our heads and food in our pantries are in the position to help, yet sometimes we hesitate.
David’s Note: They are now saying that 100% of Puerto Rico is going to be without power for months. Months! For the entire country! I can’t imagine living without electricity for a few months, though I imagine that’s not even the worst of the their concern since they are probably low on basic necessities like food and water.
It’s not that we don’t want to give. Rather, in a world full of charity scams and inefficient organizations, we question where to give so our gifts are being used as they’re intended and getting to those who most need them. If you’re eager to help but want more assurance your charitable donations are making an impact, here are a few (hopefully helpful) guidelines.
1. Don’t Donate Stuff – Donate Cash
People tend to start donating used clothes, canned goods, and bottled water every time there’s a natural disaster. The intention is good, but it also forces government officials and charity groups to deal with the logistics of sorting, transporting and distributing random donations. The inefficiency of this process can end up costing more in time and expense. So, unless an organization asks for donation of items that fill specific needs and gives clear guidelines for how to donate them, it’s best to donate money so these groups can better coordinate and streamline their relief efforts. [ continue reading… ]
It’s been a LONG time since I last took a look at another online savings account offering because quite frankly, rates have stayed steadily low for quite a few years. Plus, practically every option offers the usual – transfer by ACH, FDIC insurance, no fees etc.
This year is a little bit different though. With the Fed funds rate moving up, a few of the offerings have been upping their yield. It’s still not awesome, but the trend seems to be our friend. The other reason why I want to talk about CIT Bank is because I’ve been getting a few email questions about CIT Bank lately on whether they are related to Citibank. So let me clear this up. CIT Bank has nothing to do with Citibank. CIT Bank is owned by CIT Group and Citibank is owned by Citigroup (I know, this is clear as mud so let me explain further). Both parent companies trade on the New York Stock Exchange, but CIT Bank has a ticket symbol of CIT and Citigroup has a ticket symbol of C. They are two separate institutions. [ continue reading… ]
When we hear about the increasing weight of student loan debt, we tend to assume it applies mostly to college-age young adults – and it does. But, there’s another group whose amount of student loan debt is growing at an alarming rate: seniors.
A recent FICO report shows that the percentage of adults over the age of 65 with student loans increased 300% in the last 10 years. Individually, Americans over 65 owe an average of $28,268, with those 55 to 64 owing an even higher average of $33,915. One explanation for this jump is the trend of older adults going back to college to prepare for new career paths, and the other is the growing number of parents and grandparents who are co-signing for their children’s loans. [ continue reading… ]
Back-to-college shopping can get expensive. Besides tuition and books, there’s clothing, class supplies, and — of course — dorm essentials. The National Retail Federation’s Back to College survey reports that this year students (or their parents) will spend an average of $969.88 for dorm furnishings and college supplies. Of this spending, the top four categories are projected to be electronics, clothing, snacks and food items, and furnishings.
While this might seem like a small dent compared to the cost of tuition and housing, it can take a significant chunk out of a student’s savings or, worse, end up on a credit card. The question, then, is how many of these ‘essentials’ are necessary? Regardless of how convincingly retailers market their back to college lists and attractively arrange their mock dorm showrooms, it’s doubtful students really need all of that.
Based on feedback from students and parents who have learned the hard way, here are a few things you do and don’t need as you start getting ready to go back to college. [ continue reading… ]
It can feel uncomfortable asking people for donations, even on behalf of a cause or charity you strongly support. This is especially true when the cause is personal: your child’s extracurricular events or college education, a family member’s non-insured medical bills, legal fees surrounding an adoption, or maybe travel expenses for volunteer work. Then there are things it feels downright wrong to ask donations for: a special anniversary celebration, the down payment on your home, and other categories that seem more like wants than needs.
Besides feeling uncomfortable about asking for donations, most of us don’t have the marketing budgets, media channels, or equipment to throw a big event that attracts a lot of attention and support. While you could always grab a coffee can and go door to door, here are a few more comfortable ways to reach your personal fundraising goals on a tight budget. [ continue reading… ]
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