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October 2009
Newsletter 42
5 Ways to Make Your Nest Egg Last a Lifetime
Back in the good old days, before the crisis of 2008-09, many experts suggested that all you needed to do was withdraw 4% per year, adjusted for inflation, from your nest egg. That strategy, experts said, was a near-guarantee that your nest egg would last a lifetime.
Well, go tell that to the guy selling apples and pencils on the street corner. Yes, conventional wisdom has proven to be more conventional than wise. And now everyone is trying to figure out the best way to turn a nest egg into an income stream that will last throughout retirement. And that includes AARP, which recently released two tip sheets that “challenge conventional thinking and offer general guidance about how to make the best decision for you and your circumstances.”
First-Time Homebuyer Tax Credit Actual Deadline is Mid-October
Those interested in taking advantage of the First-Time Homebuyer Tax Credit must realize that the much-publicized November 30th deadline is for the closing date (i.e., the day keys are officially handed over).
However, the list of customary closing requirements- ranging from mortgage approvals and appraisals to home inspections- can typically take 45 to 60 days between the contract signing and the closing date.
NextRE advises that any eligible first-time homebuyers – anyone who hasn’t purchased a home in the last three years- who wish to take advantage of the First-Time Homebuyer Tax Credit need a sense of great urgency and must select a home, have their offer accepted and be under contract by mid-October at the very latest in order to safely close prior to the expiration of the tax credit.
As you look around your home, it’s hard not to notice all the minor flaws. Maybe you want to move to something bigger and better, but your realtor thinks you’re better off staying put for a while.
You don’t have to wait out the market in a house that makes you cringe. Instead, real estate expert and author Loren Keim offers a few simple tips to help you turn a flawed house back into your (temporary) dream home:
Honey Do It Now As you walk through your home, you’re bound to see little things that have been on the “honey do” list for years: the dripping faucet, broken closet shelves, ugly caulk in the bathtub. Set aside one weekend to tackle all these minor repairs; the house will instantly seem newer, and when it does come time to sell, you’ll already have these things completed.
