Retirement means different things to different people, but the one common factor is that retiring from earning a traditional income means that you will be working with a "fixed income" from whatever sources you have set up to see you through those "golden years".

"Old-school wisdom says you can use 4% of your retirement savings during your first year," writes Allison Kade on LearnVest.com, "and that amount plus more for inflation each year going forward. That rule is supposed to keep you afloat for three decades because the model assumes that your investments will keep earning money to replenish what you spend."

Times have changed.  People are living longer and now you need to make sure that your retirement portfolio is recession-proof.  Retirees who tried to retire during this last recession found that their nest-egg took a huge hit.  According to Kade, the old rules don't apply anymore. You need to prepare yourself.

The New Rules of Retirement

1. Have an Emergency Fund:  You need to make sure that you have different sources of income to draw from.  "You can't predict what the market will do," says Rachel Sanborn, a certified financial planner. "Those first couple of years are crucial," Sanborn says. "If someone can avoid drawing on their investments when the market is bad, they'll be much better off financially throughout retirement."

Try to have 18-24 months of living expenses set aside in a money market account to live on and try not to withdraw funds from your investment sources.

Annuities and bonds are great products that pay regularly.  Ask your financial advisor for advice.

A reverse mortgage is another great income source.  "If your home is fully paid off and you're searching for other income sources, you might look at a reverse mortgage (which allows homeowners 62 and older who wholly own their homes to access the equity in their primary residence) as a backup line of credit to hold off selling other investments." suggests Kade.  Then when the market goes back up, you can sell some investments to pay back the line of credit.  There are pros and cons of reverse mortgages, make sure you ask a professional before entering into any deals.

2. Do the Math:  To understand how much you can withdraw annually from your investment income, you need to decide a few things.  How many years will you be in retirement? How long will you live?  The IRS has a life-expectancy chart to help you calculate based on your age.  "For example," explains Kade, "if you retired at age 62, your life expectancy (according to the I.R.S.) would be another 23.5 years. Let's say that, in this example, you had $1 million saved when you started retirement. $1 million divided by 23.5 means you can withdraw $42,553 this year."  Kade suggests recalculating every year.

Every situation is different and it's important to get professional advice before you retire.

Related: Baby Boomers: Are You Ready to Retire?

Read the full article at LearnVest.com

photo credit: SalFalko

Posted in Headlines

U-Haul released the results from their Migration Trend Report which reflects the nation's top growth areas based on one-way truck rentals and their destinations.  Denver ranked 19^th on a list of 30 Top Growth cities in 2012, showing 1.51% growth.  The top city was Pittsburgh, showing 9.04% growth.

"The report, reflective of growth patterns in the United States during 2012, was compiled based on nationwide trends in cities of all sizes and reflects communities with more than 5,000 families moving in or out of the area," stated John "J.T." Taylor, president, U-Haul International, Inc. "Growth cities were then determined by calculating the percentage of inbound moves vs. outbound moves for each area."

Washington and Vermont ranked as the top growth states in the U.S. during 2012, showing 4.27% and 13.59 percent respectively.  Washington had the highest percentage for states with more than 20,000 families moving and Vermont was the highest for states with 5,000-20,000 families moving.  Colorado ranked 7^th in the top growth states with 1.44%.

See more at U-Haul.

Posted in Headlines

Non-current mortgages, that are in foreclosure or are over 90 days delinquent, are down 18.1 percent in February compared to the same period last year, according to Ryan McMaken, chief economist at the Colorado Division of Housing (CDOH).  Colorado was ranked sixth in the nation for lowest number of non-current loans, having only 5.2 percent during February 2013.

Non-current mortgages were down nationwide, as well.  Only 10.2 percent of mortgage loans during February were non-current.  "The states with the highest rates of non-current loans were Florida, New Jersey, and Mississippi with non-current rates of 18.5 percent, 16.3 percent and 16.0 percent, respectively."

Read more at CDOH.

photo credit: elycefeliz

Posted in Join Metro Brokers, Marketing, Headlines

Are you considering investing in real estate now that the economy is showing signs of improvement and mortgage rates are still low?    

We've all heard about investing in education; many investors have been doing exactly that by buying real estate in college towns and taking advantage of the low home prices and high rental demand in these areas.

Investors look at the factors that come in the cost of owning a home calculated by the number of years after which buying makes more financial sense than renting.  "For an investor," writes Suzanne Woodley on Bloomberg, "the shorter the period the better."  Buying at the University of Pittsburgh, for example, scores high on the breakeven meter published by Zillow. "Pittsburgh has the shortest breakeven horizon on the list, at one year and eight months." she says.  The break-even point for Boulder is 3.3 years, the Denver area is 2.5 years.

At CU in Boulder, for instance, students are paying an average of $900 per room.  A two bedroom condo costs $250,000 and with a $50,000 down payment, the monthly payment would be approximately $1,000.  Even with HOA dues, and other monthly payments, the cost to purchase vs. cost to rent makes this a great investment.

Parents are finding themselves investing in college properties for their college students to live in because it's cheaper than paying rent.

Before investing in a college town, you should closely examine the local real estate market, the enrollment numbers and off-campus rental rates compared to what the monthly payment would be including HOA dues, utilities, etc.  Another thing to consider is the number of students who live off campus and what plans the University has to build more housing, if any.

Whether you are an investor or a parent of a college student, college towns offer some of the best investment opportunities on the market.  See: Invest Now for Your Future

Read more at Bloomberg

photo credit: Sean Munson

Posted in Headlines

Homeowners who lost their homes during the recession to a foreclosure or short sale will soon be eligible to buy again though the Federal Housing Administration.  "By the end of next year," writes Brandon Ballenger of Money Talks News, "more than a quarter (due to short sale) will be eligible."

After a short sale, there is a 3 year waiting period and you must have a down payment of at least 3.5 percent to get an FHA mortgage.  But you must have a good credit score. (Read: How to Rebuild Your Credit)

Errors on your credit report need to be fixed, and make sure that your short sale is not listed as a foreclosure, which can make you ineligible for a Fannie Mae or Freddie Mac backed loan for seven years.  If you lost your home due to foreclosure, the waiting period is seven years.

Read more at MoneyTalksNews.

Posted in Buyer Resources, Headlines