Getting a Mortgage - Are You Ever Too Old?

As retirement slowly creeps up on you, you might think that it’s far too late for you to buy your first home. While this can be true in some cases as it wouldn’t suit certain individual’s situations, there are still occasions where it’s a good idea to buy. In this article, we answer the question that many people have been scared to ask - are you ever too old for a mortgage?

For the older homebuyer, there may be some extra things to think about that younger borrowers needn’t even consider. You’ll still want to get an idea of the crime rate, schools, and compare prices of similar houses in the area; but older home owners will also need to accept the fact that maintenance will become harder for them as they get even older. In a rented house, appliances, leaks, and other problems can be replaced and fixed no problem for free, but in your own home you’ll need to arrange a professional to fix them. Not only that, but simple things like cleaning the house will be a lot harder too. The closer you get to retirement age, the more you should think about your health, your finances, and how the house will impact your family in the future.

Some people say that buying a house when you’re older is better, as you have more savings and investments tucked away. However, if your retirement plans involve lots of exotic destinations and cruise ships or something similar, then it makes no sense to burden yourself with a mortgage to pay off (and the other fees that come with being a home owner). However, if you plan on settling down in one place for your retirement (having done all your travelling previously), then it might not be such a bad idea to get a mortgage now.

You might want to consider a time when you aren’t so mobile though - will you be able to afford care in your home? If not, you might one day need to move to a caring home which could result in you selling the house (even more hassle, and upsetting).

A home should be considered as a long term investment, and you need to think about what will happen to the investment when you can’t look after it yourself anymore. You don’t want to be left panicking, “how can I sell my house fast?”, do you? To help plan for the future, you may want to invest in a maintenance service and make sure you have cash tucked away for a rainy day just in case.

Sitting down with your loved ones and talking about long term plans for the house is also a good idea, as you’ll be able to fill them in on all of your ideas. How long do you plan on staying there? Do you plan to sell it eventually? Or are you planning on leaving the home to your kids or grandkids? Whatever your plans, make sure you have a good chat with them so you’re all on the same page.

Buying a house could be a great investment for you, regardless of age, providing you’ve thought it through properly and planned as best you can. In conclusion; you’re never too old for a mortgage if the time feels right for you!

What Does a Wealth Management Company Do?

Wealth comes in many different forms, and wealth does not necessarily mean having a large amount of money sitting in your bank account, and people with wealth and disposable income usually have complex financial arrangements. Generally, wealthy people have ‘assets’ that diversify their wealth and this is where wealth management companies come in. 

What Is Their Job?

The job of a wealth management company is to make these assets work efficiently and productively. People employ wealth management companies because of the complexity of the markets; as an in depth knowledge of both financial markets and investment opportunities required.

A wealth management company manages the wealth of its clients. People with a high net worth or HNW as it is known by people in the financial sector, are generally people who have financial assets that are valued at around $1 million.

There’s no set type of client eligible for wealth management, however. Although many people who employ wealth management companies come from the financial sector, business owners, celebrities, entrepreneurs and people who have acquired their wealth through inheritance also use them widely. 

What’s On Offer?

What a wealth management company offer is completely dependent on the individual’s assets. It is incredibly common for a client to have a diverse portfolio of assets rather than a cash lump sum in a bank account and, as a result, wealth management companies provide comprehensive financial support.

Advice offered is wide ranging, covering a number of different strategies such as taxes and asset protection, investments and property advice. Due to the fact that a wealth management company cannot be experts in all of these fields, they will act as a front for other parts of the bank or for other institutions that have a more in depth knowledge of how to invest. These other sectors or companies, however, will always be trusted partners.

Employing a wealth management company is a long-term strategy and, as such, you should not expect to make a quick buck. As a result, wealth management companies such as Sanlam Private Investors will touch upon many aspects of their clients’ lives in order to build a solid client-business relationship. This is vital to create trust between the two parties; especially with the size of the money that could be gained or lost.

Discretionary vs. Non-Discretionary

Wealth management is available at a discretionary and non-discretionary basis. If a client opts for a discretionary service, they effectively hand their assets over to the bank and the bank will invest on their behalf; assuming responsibility for protecting and growing the wealth of the client. On the other hand, non-discretionary means that, although the client receives advice from the bank, ultimate decision-making still lies with the client.

So, if you’ve got a wide range of assets and want to expand your wealth, try giving a wealth management company a try.

4 Advantages to Homeowner Loans You Need to Know

Are you looking to take out a loan? Homeowner loans might seem daunting and risky because you’re borrowing generally a large sum of money against the asset (your home). What this means is that if you can’t afford to pay the monthly amount, your home will be reclaimed to make the payments. 

This concept is challenging to deal with and intimidates a lot of people, but it needn’t. Homeowner loans are much more than a way to lose your home, and they can be a very sensible investment, when taken out for the right reasons, so to help you decide, here are 4 benefits to homeowner loans that you really ought to know.

4 – Borrow Huge Sums

When you take out a homeowner loan, the stakes are higher because your house is on the line. As a result of this, however, you are able to borrow a larger amount of money than you’d be able to with an unsecure loan, so whether you’re looking to extend your home or go on that once in a lifetime holiday, money doesn’t have to limit you with a homeowner loan. 

3 – Attractive Interest Rates

Because there’s more at stake, the interest rates on homeowner loans are likely to be significantly lower than with unsecured loans. From a lender’s perspective, this is a less risky investment because they know you have a lot on the line. So if you know that you’re not going to have a problem paying your monthly repayments, a homeowner might be a good idea because you’re not going to have to bother with high interest rates.

2 – Consolidating Debt

Are you struggling to pay your debts off? If you think you might benefit from consolidating your debts into one easy monthly repayment, one of the best options available to you is a homeowner loan. Using a secure loan, you could pay off a large number of debts – all with their own individual interest rates, and transfer the debt into a single payment with a low interest rate. This makes debt-management less stressful, and could be well worth the effort of setting up the loan and transferring your existing debt.

1 – Afford Something Special

You have worked hard to get into a position where you own your own home, so by taking out a homeowner loan, you don’t have to limit yourself to investing the money into consolidating debt. Spend the money on something you’ve been trying to save up for. Do you want to help your children through university? What about renewing your wedding vows? Maybe you just want to take time out in your timeshare? Whatever it is you want to do, you can use a secure loan for it.

All you need to do to find out more about secure homeowner loans is speak to the experts at a place like 1st Stop Home loans, with a little bit of guidance, you could find the perfect loan for you.

How Much Can I Give to Charity?

Giving to charity is not limited to just your funds. While charities do rely on your money to help them succeed and help them do what they've set out to do, they need more than just your money to work effectively. Charities also need your time.

When deciding how much you should contribute to your favorite charitable cause, there are some considerations you have to examine. There is no standard amount of money or time you should spend on your favorite charity; each case is unique.

How much is appropriate?

If you're an avid churchgoer, you know you're supposed to give 10 percent to charity. However, most Americans don't give anywhere near 10 percent of their income to charity. Most Americans give far less, in fact.

The average amount of charitable donations over the course of one year in the average household is 3.2 percent. While it might not seem like much, many families give what they can afford to and they do it happily. It's not always a greed issue.

Consider what you can afford

Before you pledge 10 percent of your income to charity, consider what you make versus your expenses. The sad reality is that most average households cannot afford to donate 10 percent of their income to any charitable foundation, after all's said and done.

However, that doesn't mean you can't afford to give to charity at all. Even if you can afford only a few dollars here and there, every little bit helps -- even when you're on the strictest of budgets.

Give charities your time

Another way in which you can donate to charity is with your time. Charities need volunteers to help run their programs. They need people who are willing to serve, to help, to teach, and to work hard to make sure those in greatest need are getting what they should.

While financial giving is nice, if all you have is time, it's just as valuable to most charitable organizations.

Giving to charity is a highly personal financial decision. If you can afford 10 percent, by all means do it. If you can afford more than that, good for you. However, if all you can afford is a few hours of time every week, it's just as much appreciated by a charity as your money.

Giving comes in many forms. Financial giving is the most talked about, but it's not the only way you can provide a charity with your help.

Top 10 Places in the United States to Invest in Real Estate

Investing in real estate is about timing, smart choices, and location, location, location. Good investors keep an open mind about where to find the best opportunities, often looking for places fare and wide that will allow for them to make a good deal of money. Here are ten top places in the United States for real estate investing that can all net you a profitable return on your investment.

Atlanta, Georgia

Atlanta is a fast growing city with a high vacancy rate. There’s Coca-Cola, Time Warner, a large international airport, and colleges abound. The population has grown by 1.6 million in the last ten years. There is a real estate market here with unrealized potential that is easy to get into and that will more than likely generate enormous profits in the coming years.

Baltimore, Maryland

The median list price for a home is up more than 3 percent from last year, a clear sign of stabilization. Investors can look forward to maximized gains on properties in Baltimore, especially as government jobs and private corporations continue to flood into this area.

Columbus, Ohio

This city’s economy was insulated from upheaval through robust government jobs and employment stability at Ohio State. Columbus’ unemployment rate is below the national average. It’s seen an increase in rental averages, which might make it a great place to possibly invest in a rental home that will be able to generate a regular income.

Fort Worth, Texas

The unemployment rate in this city is extremely low when compared to national averages. With that prosperity, home sales are flying through the roof. Homes are going 20 times faster than a year ago, with median listings up as high as 8 percent.

Ithaca, New York

Ithaca is prime for investors looking for rental properties. There are many colleges and schools. Realty Trac’s median rent list has Ithaca among the highest in the nation, with students and young families gobbling up available properties that are in the area.

Kansas City, Missouri

The median price list for homes increased four percent over the last year. Economic recovery is gradually making its way throughout mid-America, promising solid returns for investors willing to take action.

Raleigh, North Carolina

The unemployment rate is low and apartment occupancy is at 95 percent. The median price for homes is up 7.5 percent. Raleigh is a vacation/college town and it is one of the most popular searches on Realtor.com.

San Jose, California

Holds on real estate are gradually offering greater returns to investors. Rapid job growth has also prompted a housing shortage. This means that home prices are going for a premium, with rents also continuing to be on the rise.

Santa Monica, California

Santa Monica real estate is an option for the motivated investor. Single family and two-to-four units are available at the low end of the market. There are great long term and rental opportunities available in this diverse and family friendly area.

Tucson, Arizona

Townhouses, condos, single family, Tucson offers many possibilities. Realtor.com put Tucson at the top of its investment markets list. The job market is turning and foreclosures are declining as median list pricing rises.

Even in difficult times there are opportunities for the savvy real estate investor. It’s always going to be about research, striking when the iron’s hot, or holding until it is.

How to Retire After Getting a Late Start on Saving

retirement (Photo credit: 401(K) 2013)

Ideally, you would have started saving for retirement in your early 20s. In this case, by the time you were 50-years-old you would have had a decent amount put away with roughly 15 years left to add to this amount. Unfortunately, this is not reality for many people globally, but it is not the end of the world. The typical American household in the 55 to 64 age group has only accumulated enough in retirement assets to provide an additional $400 per month on top of social security, according to an article found in the USA Today, so you are definitely not alone.

Getting a late start does not have to mean the end of your retirement goals, as long as you make use of the time that you have left before the big day arrives. Despite what people may have told you, there is no right way to retire. It is a very individual thing, so come up with your own plan and stick to it.

Spend Less

Perhaps the greatest mistake that couples make once their children have finished university and their house is paid off is they start spending more money. This can include lavish vacations, new vehicles and remodeling the house. In fact, the USA Today reports that the average couple increases spending by 51% once the kids move out, which makes it very difficult to save.

Even spending $500 less per month until retirement and putting it into a 401K can give you an extra $600 per month after retirement, depending on your investments. That makes a huge difference when attempting to continue your current lifestyle when you are no longer working. 

Consider Your House an Asset

If you have purchased a house, this is probably your greatest asset. A large family house will bring you in a great deal of value and you can invest this money in your retirement savings. This will also reduce your monthly expenses since you will not have to pay for a large house.

Once the children move out, you do not have much use for a large house anyway, so it makes sense to get out and use the money for your eventual retirement goals. Unless you have made money saving renovations like adding solar panels or digging a well, your monthly bills will cost more than they are worth once you have an empty nest.

Plan to Keep Working

Those who do not have much money put into their retirement savings might want to consider working for a few additional years. Not only does this give you more money to put into your retirement savings, it also means a few less years of draining your retirement fund.

Many people choose to retire when they are feeling burnt out by their job. At this point, it might be a good idea to start a second career. This gives you the chance to work a new job for a few years, which will increase your retirement savings, while giving you the chance to experience something completely different.