Scaling back and simplifying; less is more!  2010 finds homeowners down-sizing, conserving and making practical choices in home remodeling, home related purchases and cosmetics / home decorating.  The eclectic mixing of old, used and new furnishings is "in"!   Today, a cleaner, lighter, cool and airy look and feel is making a fashion statement.

Recession Alters Retirement Plans

By Tim Bryant

RISMEDIA, June 22, 2010--(MCT)--As a junior at St. Louis University, Jeff Duncan interviewed an investment banker at A.G. Edwards for a class paper.

The project hooked him on managing financial assets. Over the years he worked at various financial institutions, helping to support financial planners, advisers and insurance agents.

"I learned from them how important a position they played in advising clients in creating and transferring wealth and how to perform these functions in a tax-efficient manner," Duncan said.

Eventually, he realized that if he could share the information he had gathered, individual investors could build their wealth and, as he puts it, "better the lives of the people they care about."

In 2005, he founded Duncan Financial Management, which now has two offices near St. Louis. The firm manages a portfolio of more than $25 million for clients who include engineers, doctors, communications workers, police officers, firefighters, teachers and employees of AT&T, Laclede Gas and Anheuser-Busch.

QUESTION: How should people plan for their financial futures in light of the recession?

ANSWER: The Dow Jones industrial average is hanging around 10,000, a point first reached in 1999. Most investors didn't plan for a stock market that was going to trade flat for 11 years. Investors planning for retirement should plan for the worst and hope for the best. I've experienced time and again that individuals plan for the best and hope for the best.

This mentality developed during the 1980s and '90s, when investors were told to diversify and buy during stock market dips. This "traditional investing" is no longer a valid retirement plan.

Most 401(k)s, IRAs and other retirement investments make money only when markets and the economy expand. Investors need to be able to make money when markets are up, down or sideways.

Q: What are the necessary investment tools?

A: One tool is guaranteed. Investors know that governments, insurance companies and banks guarantee principal, earnings and terms. But what investors don't like today is the low returns.

Another tool is a hybrid. This investment tool has the principal guaranteed and in some cases income guaranteed with the possibility of higher growth potential than the first tool. Banks and insurance companies offer these tools, which have a stated term, possible early withdrawal penalties and possible growth limits.

The third tool is the "risk and potential growth" tool. Mutual funds, exchange-traded funds, brokerages and insurance companies offer these tools. Principal and earnings are not guaranteed. Also, the term is undetermined with that factor left to the investor. This tool carries the risk of market-like losses and the chance of market-like gains.

Consumers want great service, low price and high quality but can pick only two of the three. With investments, the choices are safety, growth potential and liquidity but, once again, only two traits are available. Investors should consider safety first, then growth. Many individuals overemphasize liquidity, dampening their opportunity for growth.

Q: Does effective retirement planning hinge on tax considerations?

A: The federal government's huge budget deficit and debt burden will likely result in higher taxes. As a result, IRAs, 401(k)s and other deferred compensation plans are the biggest tax bombs to individuals.

Recently, investors have been converting their IRAs to Roth IRAs. By paying investment taxes now, individuals can enjoy future tax-free growth. But many individuals who convert their IRAs to Roths don't understand the complexities the IRS imposes on these conversions. Investors should consult a CPA or investment adviser who specializes in this area.

Another key to tax planning is determining the amount of money individuals need to take from their accounts before retirement. Recent studies have shown that withdrawal-rate recommendations are declining from just a few years ago.

Q: What if smart investing conflicts with someone's impulse to be reckless or overly cautious with personal finances?

A: One of an investment adviser's toughest duties is understanding clients' greed and fear. I admire Warren Buffet's philosophy: Buy when everyone is selling and sell when everyone is buying. Unfortunately, most investors do the opposite.

When people invest, they buy investments they think will make them bunches of money. What they fail to plan for is the decision to sell. Smart investors devise an exit strategy before they buy the investment. That protects them from making emotional decisions when markets are turbulent.

Q: What will happen to Americans' retirement plans if other countries — China, mainly — decide that owning U.S. Treasury bonds is no longer wise?

A: Interest rates would go up for everyone. If interest rates rise, the value of existing bonds would fall. I have found only a third of the investing population understands the inverse relationship between interest rates and bond prices. Think of a teeter-totter. When interest rates go up, bond prices go down; when interest rates go down, bond prices rise.

I believe China will maintain its current holdings so that they can hold their value. China wants to keep its economy expanding and recognizes us as a valuable importer.

Where have I been? Most recently, not in some foreign land or sitting by the lake! Attending BOLD for 8 weeks, a new class offered through Keller Williams International, has given me a new lease on life! The basic principle is “Change the way you look at things and the things you look at change”. There are many more BOLD Laws but to name some of my favorites: "There is no "try". What you focus on expands, and comes from contribution".

The purpose of my diligence and hard work during this class (oh, yes, it continues on) is to build a life by design and not by default. It is my goal to continue to work hard, educate myself to help my clients and to work smarter, to have time for the people I love - my family!

I am sharing our graduation day photos, including my peers at Keller Williams & our new found friends from Keller Williams- Kalamazoo and Holland offices.

Remember that success is simple, not easy!

 

Sales of new homes reached a 4-month high, soaring 26.9% over February, 2010, due to the expiring Federal Tax Credit, ending April 30, tomorrow!  This being said, this figure is meager by historical standards and job creation is paramount to sustain this trend for March.

Our real estate market is precarious; consumers are motivated to take advantage of low mortgage interest rates and affordable home prices.  They realize owning a home is a good investment and the outlook of our market remains dependent upon the direction of our economy.

Rsearch indicates that most Americans don’t change much after a recession and are likely to end up where they once were. In other words, many of us don’t plan for recessions; we just ride along with them.

Putting together a recession plan is a neglected strategy in financial planning. Budgeting and coming up with a plan of action when money is tight is a valuable practice to get in the habit of doing. This would include building and maintaining an emergency fund to cover expenses during a financial disaster such as a job loss. Another wise move would be to have saved money for purchases when the stock market and prices go down. A good financial planner will present these different scenarios to help draw up a disaster plan.  Information compliments of Lowe's Real Estate News.

$59,500.00 916 Benjamin Ave. SE Grand Rapids, MI 49506 Beds: 4 Rooms: 11 Full Baths: 1 Sq. Ft.: 1356 Garage: 1 Built: 1920   Totally remodeled home, ready for your first time home buyers! This adorable ranch is conveniently located across from Martin Luther King Park, near the bus line, local schools, shops and stores. Newly painted exterior, interior, new floor coverings, updated kitchen with electric stove, refrigerator & dishwasher too! Remodeled bath and three bedrooms complete the main floor living space. There is a walk-up attic for added storage as well as a finished daylight room in the lower level/4th bedroom. Second bath(1/2), laundry, storage and one stall garage complete this perfect package. New water heater and newer high-efficiency gas furnace, which is ready for a central air unit to be added. Where can you find such value for this price? $59,500. This is a new listing that I thought you might be interested in. Visit this listing online to see more photos of the property, Google Earth satellite images, and much more.   If you have any questions about this property or require more information, please feel free to call. Linda Pell Keller Williams Realty 616-813-1436 www.grandrapidsliving.com     Visit this listing here

That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting

Over the years the name has changed, but regardless if it is Butterworth or Blodgett or both, the SPECTRUM HEALTH FOUNDATION GALA 2010 will be held on April 24.  This year's Gala will benefit our children by establishing a "Healthy Weight Center" at the Helen DeVos Children's Hospital.

Over the past 30 years, our children have become heavier, with a rate of 50% of preschool children and teens who are suffering from diabetes, high cholesterol and heart disease due to obesity.

Spectrum Health's Gala, a black tie dinner and dance event, will raise funds to support a new initiative to reverse the trend of childhood obesity and to improve the health of children living in West Michigan.

For more information about the Gala, to sponsor or attend, please contact the Foundation Office, Tara Werkhoven, at 616-391-2069 or visit spectrum-health.org/gala.

Hope Lodge, Jefferson at Cherry, Grand Rapids, Michigan

Purpose: To alleviate the cost of illness for cancer patients and their caregivers.

This is an American Cancer Society funded program, along with donations and volunteers.

April will mark the 25^th month of the Grand Rapids Hope Lodge and they are pleased to

offer help to everyone, ages 18 years and older, from any health care provider here

in Kent County.

Hope Lodge offers rest and relaxation for anyone experiencing cancer surgery, cancer treatments

or those who are ill and need to see physicians here in the city and live outside of Greater G.R.

There are no set fees for this respite but contributions are accepted.

There are 20 bedrooms available and each has a “locker” or pantry located off the kitchen and

dining area. Locals engage in donating “community dinners” on Tuesday and Thursday evenings;

these are furnished by local churches, college or school groups, companies or corporations. We

all realize what a giving community we enjoy here in w. Michigan.

Hope Lodge was built LEED Certified: the use of recyclables constitute 86% less waste in building

materials, 26% less energy use, almost 90% of all materials used for building come from within a 500

mile radius, and low-flow plumbing, with a savings of 28% of our water!

A remarkable building, a caring and giving community! Thanks to Susan for a tour, the information

and for her generous gift of philanthropy!