Sales may be slow in your market, but that doesn’t mean your real estate business can’t grow. On today’s State of the Market podcast, we revisit the real estate predictions we made the last time Eric Bramlett was on the show. Plus, we offer new predictions regarding interest rates and the market as a whole. After that, we analyze Austin home sales and stats impacting real estate in similar markets. Finally, we cover the best ways to stay positive and productive during a downturn.
Listen to today’s show and learn:
What’s happening with the Austin real estate market [2:38]
Austin’s peak median sale price compared to today’s [7:26]
Agents working twice as hard to make the same amount of money [9:00]
Home buyers have lost their sense of urgency [11:25]
Why luxury home sales are slow right now [13:05]
Predictions regarding interest rates and the real estate market [15:48]
Predictions regarding commercial real estate and multifamily properties [18:31]
How to grow when the market is slow [25:30]
Pivoting away from inbound marketing campaigns [31:10]
The BIG benefit of a downturn [35:48]
Eric and Aaron offer their final thoughts [40:59]
Related Links and Resources:
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
Last Updated: July 2, 2017 BY Michelle Schroeder-Gardner – 24 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
A few months ago, Joe from Retire by 40 published the quiz How Serious Are You About Early Retirement? I took the quiz (BudgetsAreSexy did too!) and found it informative and entertaining. I thought it would be fun to share my answers with you and let you know about the early retirement quiz, if you haven’t taken it yet.
Early retirement is a great financial goal to have.
Related articles:
For us, I don’t know when or if we will ever completely stop working, but having the option to is important.
Looking at early retirement as a goal, whether you stop working completely or not, means financial stability is a top priority for you. You just never know what may happen, and that stability is always a great thing to have.
Here are the directions for the quiz: “You need to keep track of your own score for this quiz. The questions are just TRUE/FALSE. You get a point for every TRUE. Then simply put your score in the poll at the end.”
Here’s the quiz:
1. You know your net worth
Yes, I know my net worth!
Tracking your net worth with a platform such as Personal Capital is a great way to stay on track and stay motivated.
2. You have a Roth IRA
Yes!
3. You have no consumer debt – car, credit card, etc…
We have no debt. We do some travel hacking (learn how to get to Hawaii for less than $25) but we pay off our credit cards every single month.
And, yes, even our RV was paid for with cash.
4. You have a “retire by” date
We have a date, but we are not super strict about it. We could retire right now if we wanted to, but we have chosen to keep working because we love what we do so much.
5. You have a side hustle or two
I have many different streams of income. However, I don’t currently have anything outside of my business going on. I think I’ll still give myself a point for this because I used to side hustle like crazy 🙂
Related: How To Make Extra Money
6. You have passive income
Yes, I have passive income through affiliate marketing on my blog. This isn’t considered 100% passive as I do need to do a little bit of work, but I’m still going to count it.
Plus, I also have retirement accounts that pay dividends.
7. Your investments are worth more than your house
Yes, our investments are worth more than our RV.
8. You have a post retirement plan – volunteer, etc…
We currently live a very exciting life and will probably be doing something quite similar even when we retire.
9. You save 50% of your household income
Yes, we currently save over 90%.
10. You have backup plans
Yes, we do have a backup plan. If things go downhill, then I am all about workamping – volunteering at campgrounds at national parks and state parks in return for a free campsite and electricity 🙂
Bonus point – You cut your own hair
Ha, nope! My hair is my one splurge. I like to have it colored different ways (multiple times a year), and I do get a haircut about once a year.
Early Retirement Quiz Scoring:
0-5: Skeptic. Do you believe in early retirement? Perhaps it’s not a goal of yours?
6-7: Novice. You’re on your way to early retirement!
8-9: Committed. You’ll get to early retirement soon.
10+: Driven. Early retirement is definitely on your mind, or you may even already be retired!
I scored 10 points on this early retirement quiz. And, early retirement is definitely something I am aiming for, although it’s just the independence that I’m crazy about because I still do love to work.
Now, even if your score wasn’t what you hoped, you can still work towards early retirement. It probably just means that you need to be aware of where you are at and where you want to be. Remember, being aware of your situation is the first step!
What was your early retirement score? Share in the comments and let’s start a discussion!
Editor’s note: TPG’s Erica Silverstein accepted a free tour from Tours by Local to review its services. The opinions expressed below are entirely hers and weren’t subject to review by the company.
I’m standing atop a 13th-century arched stone bridge, looking out over a river rushing photogenically over smooth-hewn stones. I’m on a guided tour in the mountainous interior of the French island of Corsica, yet I’m blissfully alone — with the exception of Yulia, my guide.
“Alone” and “guided tour” are two concepts that tend not to be found together, but I’ve achieved this unusual combo during a cruise port call by booking a tour through a company called Tours by Locals.
Tours by Locals is essentially a matchmaking service for travelers looking for a local perspective and guides looking to show foreigners their homeland. Tours by Locals partners exclusively with top-caliber guides and thoroughly vets them before letting the guides post tours on its website. The guides use their local knowledge to create their own tour itineraries and set prices so they’re fairly paid.
As an avid cruiser, I often find myself on ship-organized tours on a bus with 25 to 40 other people, following a set itinerary and wasting time waiting for my shipmates to buy souvenirs, use the bathroom and meander back to the bus. I often skip the tour and explore on my own, but I don’t always get the full background on what I’m seeing. A private tour offers the best of both worlds – a small-group, customizable itinerary and a knowledgeable guide – but can be expensive.
For cruise news, reviews and tips, sign up for TPG’s cruise newsletter.
I was curious if a Tours by Locals tour would be worth the price, so when I was offered the opportunity to try one on a port stop in Ajaccio, Corsica, I jumped at the chance. I chose the approximately five-hour “Prunelli Gorges Half Day Road Trip,” which costs $586 for up to three people and promised “extraordinary views and discovery of Corsican tastes.”
Here’s how my day went and my thoughts on whether the experience was worth the price.
A slow start
The benefit of a cruise ship tour is convenience. You’re whisked off the ship straight to a tour bus, and you don’t have to worry about meeting points and finding your guide.
Sign up for our daily newsletter
I’d been texting my guide Yulia on WhatsApp prior to my ship’s arrival in Ajaccio, Corsica, a port I’d never been to. She promised to be waiting for me just outside the port with the other private guides, holding a sign with my name on it.
But when I got outside, I didn’t see an obvious meetup point for private guides and instead of a woman with a sign, I got a text that Yulia was stuck in traffic and running late. Uncertain where to meet her, I wandered around the terminal building feeling awkward until we finally managed to connect.
Even though guides try to arrive early, no one can predict bad traffic. Make sure you have texting access, either via Wi-Fi or an international cellphone plan, wherever you plan to wait for your guide to arrive.
Related: Ship-sponsored vs. independent shore excursions on cruises: Which should you book?
Avoiding the crowds
Although the planned tour was to explore outside of the city of Ajaccio, Yulia thought it was a good idea to see a few of the town highlights before we set off. She took me through the local market across from the port, where she told me about the region’s sausage and cheese, and I ogled bowls piled high with olives and colorful fruits and vegetables.
Ajaccio is famous for being the birthplace of Napoleon, so she gave me an overview of Napoleon’s family and early years while we walked by the house where he was born and the cathedral where he was baptized.
Yulia provided the context I would have missed by wandering the city streets on my own. I could have gotten the same information on a walking tour of the city booked through the cruise line, but I’d be jostling for views in a large group and strolling at the pace of the slowest walker.
After a coffee break, we headed off on the first leg of the tour, to drive out of the city and up into the hills to visit two small, local businesses: Corsica PaM, an essential oils distillery and laboratory owned by two brothers, and Le Jardin des Abeilles, the shop and tasting room for a family-run honey farm.
Cruise ship tours do go to these places, and I imagine you’d all have to listen to a canned presentation about how things work and then wander about while 25 people browse and make purchases. Instead, Yulia showed me the different essential oils, describing the ones she uses personally and taking me out back to see the fields of rosemary and lemon verbena, which are distilled for their oils.
The proprietors only spoke a little English, so she translated as one of the brothers explained how to extract the oils from the plants. Yulia explained how the unique Corsican scrubland, called maquis, is home to endemic species of plants, such as the “immortelle” plant, which are ideal for the production of organic essential oils – and how what would seem like a modern healthy and beauty trend comes from a long history of using plants for medicinal purposes.
At the honey farm, I had a private honey tasting with one of the owners who explained the differences in his five seasonal honeys and let me taste them – as well as a special small-batch honey he did not sell. He explained how Corsican honey is unique as it’s produced from the island’s black bees and gets its flavor based on its specific climate and native flora. Yulia laughed and took photos as I sampled the most bitter honey, and I felt less alone than I would have as a solo traveler visiting on my own.
Related: Tips for booking the best cruise shore excursion for your money
Special extras
Yulia, who also guides for cruise ship and other large group tours, told me that the typical itinerary offered by ships is to get on the bus, visit the oil and honey farms, then return to town. But that was only the beginning of my private tour.
From the honey farm, we drove farther into Corsica’s interior, past some small mountain towns to the Prunelli Gorges. We could have stopped in one of the villages if I were hungry and wanted to try local charcuterie or wine, but as the tour was customizable and I was still full from my cruise ship breakfast, we happily carried on.
The gorges are an area of steep, craggy mountains, dotted with rivers and lakes, and full of hiking trails and via ferrata routes that I’d love to explore on a longer stay. The government no longer allows tour buses to traverse the narrow, curving roads, so you’re not going to get to the gorges with a group.
Yulia was determined to show me some unique spots, despite a rain shower that plagued most of our drive through the gorges. She took her little Kia down an unpaved road so I could see Tolla Lake and its dam set amid the craggy peaks. We slowed down to follow a herd of goats being shepherded by a dog, no goat-herding human in sight, as we pulled up to a scenic overlook to take in the vista and see where some of the black bee hives are kept.
Yulia parked by the side of the road and took photos of me on a bridge over a rushing river. And then, with the weather clearing, we pulled over again to hike down to the old Genoese-era arched bridge to cross the well-worn stones and appreciate more river views. We barely saw another human on the entire road trip.
Making it personal
I’m an introvert and Yulia’s English was fluent but not perfect, so at first conversation didn’t come easy. How am I going to make it through a half day alone with this stranger, I wondered. Had I been traveling with my family or a friend, it would have taken the pressure off, but as I was solo, it was up to me to make conversation.
But as the hours passed, we became more comfortable with each other, and Yulia opened up about how she came to Corsica, her family life, her hobbies (including gardening and flower arranging) and even how essential oils helped her during a difficult time in her life. Throughout the tour, she volunteered to take my photo as I was alone and as she put it, photos are always better with people in them. The experience was like traveling with a new, extremely knowledgeable friend.
Traveling with Yulia also gave me a glimpse into what it’s like to live in Corsica, from French bureaucracy and political corruption to the housing situation and local commutes.
She also shared her honest feelings about why smaller tours are much better than large-group tours. In her opinion, some of the more manufactured tours from Ajaccio (such as a little train that takes tourists up the mountain to a specially built center to try some local Corsican foods) are low-quality and inauthentic.
So many travelers come here and they don’t know what they’re looking to get out of a visit, she said. I admit, I wasn’t sure what I wanted to get from my day in Corsica, other than to get out of the city and get a glimpse of the island’s beauty. I got all that and more.
Should you book with Tours by Locals?
A private tour is always better than a group tour, in my opinion. You get to customize the itinerary, you don’t have to wait for large numbers of people to use the bathroom or buy coffee, and you can ask questions or get more personal with your guide.
However, $586 is a lot for one person to spend on a driving tour with a handful of stops, even with Tours by Locals’ policy of tips not being necessary. (Guides set their prices so are paid fairly; Tours by Local takes a cut of the fee.) For a couple, $293 per person for a half-day tour is possibly double or triple what you’d pay for a cruise ship tour, but the quality and intimacy make it worth it if you have the budget.
If you’re looking for the best value, you will want to shop around and compare prices and tour inclusions with other independent guides or guide-providing services. You’ll need to read the tour descriptions carefully; for example, Tours by Locals excursions are priced per tour, but the maximum number of people for that price varies from guide to guide, and you may or may not be able to pay extra for a larger group.
What I liked most about Tours by Local is the ease of searching out a guide. Instead of scouring the internet or online chat groups for recommendations, you put in your destination and up pops a list of tour offerings. You can read reviews of the guides, see the full tour itinerary and type of transport, and even get a feel for what items are not included and how much cash you might want to bring. You can even message a guide to ask questions before you commit, and pay by credit card online rather than worrying about paying day of in cash.
I don’t have the budget to book a private local guide in every city I visit, but for special occasions or in a destination I wanted to explore to the fullest, I would definitely consider using Tours by Locals for a private tour.
Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
Previous Post
Save on Parenthood: Skip These Baby Gear Money Traps
Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
Previous Post
Save on Parenthood: Skip These Baby Gear Money Traps
I started the Best Interest on December 16, 2018. It’s been two years! And this also marks two years since I’ve been tracking every single expense in my budget. E-v-e-r-y-t-h-i-n-g. Today’s post will be a year-in-review for both the blog and for my personal finances. There will be lots of fun numbers. And I’ll show you how my preaching works in practice.
To get your bearings, here’s the Year 1 Review.
Thank you!
Thank you. Yes, you. Thank you for reading, and thank you to my generous patrons.
I don’t write here because of financial gain (see the Sankey diagram in the Budgeting section). I write here because you’re reading. And because it’s incredibly fun and you readers make it rewarding.
I was recently asked about my mission statement. It’s just in draft, but:
I value helping and teaching. At my core, I want to help people improve their lives by teaching them valuable skills & knowledge. I think personal finance is a tangible, vital, and universal skill set.
Improving personal finance == improving lives.
Sharing with you is my mission. And you sharing your attention with me is a privilege that I don’t take for granted.
Every small compliment you’ve given me is extremely meaningful. I love answering your questions, your Tweets, and your Reddit comments. So again, thank you for being here.
Some Stats
Who doesn’t like statistics? Here’s what 2020 looked like on the Best Interest.
Back in 2019, about 19,000 people visited the blog. I was ecstatic.
In 2020, over 160,000 readers visited. I’m over the moon. In 2021, I’d like to hit 500,000.
As of this publication, about 210,000 words over 82 articles have been published in 2020. About 70% of those are my own, and the other 30% I can attribute to the wonderful bloggers I work with at the Money Mix.
The Money Mix is a group of like-minded writers, bloggers, and internet nerds. We share lessons learned, tips & tricks, and even share one another’s best written work. I’ve learned a ton since joining in April and attribute much of the Best Interest’s growth to learning from TMM.
The blog’s subscriber base grew by about 400% this year. If you haven’t joined, I send out a quick newsletter every week and include all new Best Interest articles.
Never miss another Best Interest post—subscribe here.
And lastly, the blog cost ~$2800 to operate and improve (notice the sweet logo?!), plus the hundreds of hours of writing and site maintenance. The mission makes it worthwhile. But if you’d like to support the cause, please join the patronage. I truly appreciate it. The more this site pays for itself, the more time I can devote to the mission.
Budgeting
Another year, another streak of tracking every single dollar using YNAB. If you’re looking for a smart Christmas present, YNAB is a great idea.
Note: you and I both get a free month of YNAB if you end up signing yourself (or someone else) up with the link above. No extra cost to anyone involved. You get a 34-day trial, and then an additional free month. That’s two months to figure out if you like it!
Below, you can see a snapshot of my YNAB journey from November 2018 until now. During this 2+ year period, I’ve used YNAB to budget and track every dollar that I earn and spend.
Is it overkill? Yes, tracking every dollar is overkill for most people. But I highly recommend that you run a budget, and I even interviewed some other experts for alternative budgeting ideas. Find the right budget for you.
Where the Money Goes
As for where my money actually goes, the Sankey diagram below is a terrific visualization.
I’ve normalized this diagram against 100% of my salary. Why? Because it helps visualize what percentage of my income goes where.
For example, 23.4% of my income went to taxes before I ever saw it. Only 59.42% of my income ever came to my bank account via paychecks and, therefore, was budgeted. Of that 59.4%, I spent about half and saved/invested the other half.
The bottom of the Sankey diagram shows how previous years’ investments grew, and shows the free money that comes from my employer’s 401(k) matching. If the stock market had gone down, the “Investment Interest” section could have been negative.
But as it sits, 2020 stock market returns added the equivalent of 25.44% of my salary to my portfolio. And my employer’s 401(k) match was equivalent to 6% of my salary (that’s free money, by the way). The Investments section below has more detail on those individual investments.
Between budgeted savings (Roth IRA, taxable brokerage account, emergency fund) and pre-tax savings (401k, HSA), about 45% of my salary went towards savings and investments. Add in the “extra” savings (investment returns, 401k match), and the equivalent of 76% of my salary went towards savings and investments.
Your results may vary. But this is how my preaching looks in practice.
Enjoying this article? Subscribe below to get new articles emailed straight to your inbox
Investing
After plenty of questioning, I wrote an article in October that provided every detail of how I invest.
One of the nice things—for both you and I—is that it’s fairly easy to track my portfolio over time. There are four assets:
Large U.S. stock index fund (ex: Fidelity’s S&P 500 index fund, FXIAX)
Mid and small U.S. stock index fund (ex: Fidelity’s Russell 2000 index fund, FSSNX)
Bond index fund (ex: Fidelity’s Total Bond Fund, FTBFX)
International stocks fund (ex: Fidelity’s Total International Stock Fund, FTIHX)
As of 12/16/20, these assets have performed as follows in 2020:
S&P 500 Index = +13.3%
Russell 2000 Index = +17.6%
Bond Index = +3.6%
International Stock Index = +6.2%
For the 2019 year, these indices’ performances were:
S&P 500 Index = +28.9%
Russell 2000 Index = +23.72%
Bond Index = +9.9%
International Stock Index = +21.5%
What are the takeaways? 2019 performance was blistering, and 2020 performance feels oddly optimistic given current events. I don’t expect every year to be as “good” as the past two.
Nevertheless, I’m trying to leave my emotion at the door and stick with my plan. Specifically, I invest the same dollar amount every month, whether the market is up or down. If you want to learn why I’m confident in that plan (despite current events), I wrote all about it this past autumn:
Even if the markets are at all-time highs and it feels like a crash is coming, my outlook is long-term. I have faith the the long-term (10, 20, 30+ years) economic outlook is good.
Favorite Blogs Posts
I’m proud that my writing is highly regarded. I was featured this year on MSN, Grow/CNBC, the Ladders, the Good Men Project, SoFi, Budgets are $exy, the Plutus Awards Showcase, and elsewhere. Woohoo!
If you think my writing is worthy of someone else’s attention, I’d love for you to share it with them. Post a link on Facebook, Reddit, Twitter, etc. Send your Uncle Dave the article I wrote about him. If you found a post particularly useful, let your tribe know about it. Simple grassroots sharing.
Here are some of the best posts from 2020:
January—The 2010’s Will Happen Again—If you’re worried that the 2010’s were a “once in a lifetime” investing decade, this article will show you how that’s not quite true.
February—Index Fund Bubble: Arguments For and Against—I invest solely in index funds. So when well-known investors warned of a bubble, I wanted to understand for myself.
March—Viral Stock Market Strategies—Lots of Twitter experts discussed their personal investing techniques during the early days of COVID-19. So I wrote a MATLAB script to back-test all their best laid plans. Spoiler—the simplest approaches always fare best.
April—The Biggest Lesson from COVID-19—Slack. Safety net. Margin. Out of the many lessons from COVID-19, this article discusses the biggest one: how building slack in our systems—personal finance, business, hospitals, even hiking—is a life-and-death issue.
May—Jeff Bezos and the Meritocracy Kings—Jeff Bezos, resource allocation, Vonnegut, meritocracy, survivorship bias, systemic flaws, and quarantine kings.
June—Simple Financial Goals—a two-minute punch-list to start you down the path to better personal finances.
July—Do you know Dave?—a funny story about a man you know, and the perilous personal finance circumstances he finds himself in.
August—Long Term Investing Takes Faith—I returned from a camping trip rejuvenated. But memories of the rolling waves reminded me of slow, steady, long-term investing.
September—Amazing People Everywhere—inspired by Tim Ferriss’s Tools of Titans, I interviewed some amazing people in my own life, and asked them what lessons they’ve learned in their unique journeys.
October—The True Cost of Car Ownership—a detailed analysis of car costs, answering the important questions like:
How should I compare time owned vs. miles driven?
What’s the full-life true cost of owning a car?
How much does a car’s value depreciate over time?
How do I place value on the utility of my car (e.g. a work truck vs. a compact sedan)?
When is a used car purchase smarter than a new car?
How does leasing compare to owning?
Should I sink more money into an old beater? Or just get a new car?
November—Your Retirement Savings Goal for 2021—my first dabble into coding my own calculators. If you’re looking for an easy 2021 resolution, start by calculating your 2021 savings goal.
December—Curses, Miracles, and the Best Interest Student Loan Solution—The status quo is a haunting curse. The proposed solution is a divine miracle. I propose a middle-ground solution. And the math backs me up.
2020: Year of the Dog
We fostered nine sweet dogs in 2020. No dog goals for 2021, other than to keep fostering. There are lots of great dogs that just need a home. If you’re looking for a dog, consider adopting through a shelter or foster organization.
But because it’s fun and funny, here are the 2020 dog power rankings.
Starting at #9: Josie. She was one of Sadie’s puppies. And man, was she mean. Clearly, Josie learned that the meanest puppy always gets fed, and she would absolutely torment poor Oscar. If you’ve ever seen Tasmanian devils fighting on the National Geographic channel, that’s how Josie was at feeding time. Bad girl! But she’s a sweetheart now as a young adult 🙂
Next at #8, Ranger. While Ranger was a good boy, he chewed on too many things. Most dogs are athletes. Not Ranger. He was a happy, dopey, skittish, and unathletic dog.
Louis a.k.a. Mr. Bones a.k.a. Louie Long Legs comes in at #7. Not the cutest pup, and one of the only dogs that legitimately drew blood from his playful bites and claws. But he was just a pup, so you can’t hold it against him!
Jules is our current foster, and she comes in at #6. She’s a little whiny and took a poop behind the Christmas tree. Is she super cute? Sure. But a cute face only gets you so far on the Best Interest.
#5 is Raven, a solid puppy. The most athletic of Sadie’s puppies, there was nothing to dislike about Raven. If she has stayed around longer, she could have competed for the top 3. But she got adopted quickly and didn’t have much time to rise to the top of the heap.
Esther—coming in at #4—was one of two recent moms to come through our home. And poor Esther definitely missed her puppies, making multiple escape attempts over our fence. She was a sweetie. Not much is cuter than hearing a 25-pound part-Huskie give out a “big” wolf howl.
Sadie’s third-and-final puppy, Oscar, comes in at #3. This little guy was everyone’s favorite of Sadie’s three puppies. While we figured, “Ahh. Dad must have been a Blue Heeler,” we actually found out that Sadie is 55% Blue Heeler. Her recessive traits are expressed in her more slender physique and black color. Oscar’s phenotype, however, is very much the stocky, mottled grey Blue Heeler.
Scooby, the cutest bloodhound puppy around, is #2. Not only did Scooby have stellar looks, but he had the personality to match. He was playful, mostly potty-trained, and slept through the night from Day 1. He was wise beyond his weeks. The “Doobie Brother” was a very good boy.
Coming in at numero uno, it’s got to be Sadie. I’m a big softie for Sadie. She was our first foster and probably the only one who arrived at our door significantly unhealthy. She had been homeless in Houston, scrounging for nutrition to support herself and her three puppies (Josie, Raven, and Oscar). Sadie was only 27 pounds when she showed up. But we nourished her, fell for her, and adopted her ourselves! She’s now a sturdy 42 pounds and has been a great friend to all the other fosters to come through our house. She’s also kinda famous in the blogging world.
2021 and Beyond
In 2021, I’d love to help half-a-million (or more!) readers.
Monetization of the blog is something I’ve considered before. Right now, a few generous Patrons donate to the blog, and I don’t run ads (here’s why). But if the income from running ads allowed me to further the blog’s mission without interfering with that mission…would that be worthwhile? I’m interested in what you think about that idea. Do ads bother you?
Content-wise, I’m always looking for useful questions to answer. My own confusion inspired my Explaining the “Big Short” post. The many new parents in my life inspired this guide to 529 plans. If you want to learn something, let me know.
I’m excited for 2021! And I hope you are too.
Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
If you prefer to listen, check out The Best Interest Podcast.
For most people contributing to a 401(k) retirement plan at their workplace is the main way they’re investing for the future.
Sometimes those retirement plans are easy to understand, low cost, and offer great options to invest, but other times they’re confusing and complicated.
Blooom is an automated investment advisor and advice engine that can make managing your 401(k) a little bit easier.
Blooom is a robo-advisor for your 401(k). Let’s take a look at who Blooom is, and what they do.
Blooom History
Blooom was founded in March 2013 in Overland Park, Kansas by three friends, co-founders Chris Costello, Kevin Conard and Randy AufDerHeide.
The idea behind the company was to help give better advice and management for 401(k) plans, for regular people.
The firm’s researchers analyzed close to 90,000 401(k)s, with over $3 billion in total assets, and they found that over 80% of them were managed poorly.
That’s where Blooom decided to step in.
Blooom helps people to manage their employer sponsored retirement plans. They can manage your 401(k), no matter where your plan is held, or who your employer is.
They’ll give you good advice, and manage the 401(k) in your best interest, since they are a fiduciary and are required to by law.
Here’s an overview of the company from the folks at Blooom:
[embedded content]
What Does Blooom Do?
Blooom will automatically manage your 401(k) retirement account for you. It is a robo-advisor that will help you to maximize returns within your company sponsored retirement plan.
If you work for a company that has a 401(k) plan, often the company won’t give you much advice on how to manage your investments, once you’re signed up for a plan.
They basically tell you there’s a plan, that they’ll match your contributions up to a certain level, and give you a login for your account.
Simple enough. But what happens once you start contributing money? Where does that money go, and what should you invest in? What are the expense ratios on the different funds?
If you’re in your 20s and just starting out these concepts can be a bit difficult to grasp, especially if you’re more focused on building a career.
Blooom can step into this knowledge gap and help you to make sure your investments are aligned with your future goals.
They’ll find out some basic information from you like your age, target retirement date and a few other things, and then Blooom will recommend an allocation for your portfolio.
For younger people they’ll typically recommend a 100% stock allocation, and as you age the portfolio will begin to be more heavily weighted towards bonds. In other words, you’ll be taking on more risk in your early earning years, and move towards more stable investments as you age. If you don’t like their recommendation you can opt for a different ratio of stocks to bonds.
Whenever possible Blooom wil select a low cost index fund to help you meet your goals, and if you’re someone who has accidentally selected high cost mutual funds, this could bring some significant savings for you right off the bat. They’re looking to get you into investments that will be low cost, and track the performance of the market.
Based on their algorithm, Blooom will rebalance your portfolio every 90 days to make sure your desired stock to bond ratio is maintained. If you want to adjust your allocations, or target retirement date, you can do that at any time as well.
In addition to managing your 401(k) account, Blooom will allow users to ask financial questions from experts and real advisors. Should you invest or pay extra towards your mortgage? Should you be worried about market downturns? Ask them and they’ll be happy to help.
Get Started With A Free 401(k) Checkup
Blooom offers a free 401(k) checkup before you even sign up for their services, no promo code needed.
They’ll take you through a quick questionnaire where they ask you for your name, date of birth and when you expect to retire.
Next, they’ll ask you for an email address and password to secure your account.
Third they’ll confirm that you do in fact have a 401(k), 401(a), 403(b), 457 or TSP account, and ask you to link that account.
Finally they’ll analyze your retirement account, and you’ll see how your account is doing, and what you might be able to do better. It will show you how you can do better with fees, with allocation, and with the diversity within your portfolio.
Finally it will give you a summary of your 401(k) checkup telling you just how much Blooom can save you, and how they can help.
To get started with your free 401(k) checkup, head on over through our link here:
After Your Free Checkup
After your free 401(k) analysis, if you choose to continue with Blooom within 30 days they’ll adjust the investments in your account so that it aligns with your goals.
the average Blooom client cuts their hidden investment fees by 44%. (Based on Blooom clients‘ median pre-Blooom expense ratios and median post-Blooom expense ratios as of August 5, 2018)
First they’ll check your 401(k) and remove any funds that aren’t worth having. They’ll prioritize index funds, and typically only use actively managed funds to gain investment exposure in an area that you’re light.
Then Blooom will use their algorithm to select the best portfolio based on costs and manager experience.
Any time a change is made, they’ll advise you of the changes, and you’ll get a full break down of what has changed with your investments, how your investments look now and how you can save more.
Finally, every 90 days or so Blooom will check your account for opportunities to rebalance your portfolio. If the investments are out of balance, Blooom will rebalance them. Regular rebalancing can add an additional 0.5% to the annual returns on investment.
What Types Of Accounts Will Blooom Manage?
Blooom only manages employer-sponsored retirement accounts at the current time. That means that you can sign up and use them if you have one of these types of retirement account:
401k
403b
401a
457
TSP
IRAs, Roth IRAs and other taxable account types need not apply.
Blooom Security
If you’re concerned about the security of Blooom, and whether or not your retirement accounts are safeguarded, they are. Here is how they’re protecting your information:
256 bit encryption, bank level security: The website is secured with secure socket layer encryption, and bank level security. Their servers are secure and encrypted to ensure private online transactions.
Third party verification: They take extra measures to ensure you are really who you say you are any time changes are requested.
What Is The Cost To Use Blooom?
What does it cost to use Blooom?
Currently it costs only $10/month to have Blooom manage your 401(k). If you have additional 401(k) accounts to manage under the same login it is an additional $7.50 per account.
Depending on how much you have invested, the fee may be a large percentage of your portfolio, or it could be an extremely reasonable fee. Let’s look at why that is.
The more you have in your 401(k) account, the better deal Blooom will be for you. For example, let’s compare Blooom to the fees charged for assets under management by Wealthfront or Betterment. They both charge 0.25% annual fee for assets under management. On the other hand a human financial advisor will often charge somewhere around 1%.
Let’s say you have $1000 invested in your 401(k) (not very much), then the $10 monthly fee will come out to $120/yr, or a 12% fee. That’s not going to make much sense for most people.
If you have a larger account, however, say $100,000, the $10/month fee will come out to about a 0.12% fee. At $50,000 it will be a 0.24% fee.
Once you reach a certain level it’s very reasonable and low cost to have your 401(k) fully managed by Blooom. The more you have in your 401(k), the more cost effective it is.
Reasons To Use Blooom
There are a lot of reasons to like Blooom, and to give them a try:
They’ll give your 401(k) a free once over: Even before you pay for their service, they’ll analyze your 401(k) for free, and give you some recommendations. If you don’t like the recommendations, don’t sign up.
Their service is unique, and helpful: They are one of the only full service 401(k) management services available, and what they’re offering is helpful, and at a reasonable price.
Cancel the service at any time: There are no long term management contracts. Just cancel through your blooom account before your next billing cycle and you won’t pay additional fees.
Fees are paid directly with credit or debit card: Often investment companies will take their fees directly from your investments, decreasing returns you might gain. Blooom will charge your linked card for the $10 monthly fee.
Their analysis will give insight into your plan’s fees, funds: Once they analyze your plan, they’ll give you insights into our investment options in the 401(k) plan that you may not have had before. Things like which funds have the lowest expense ratios.
You have access to a real advisor through email and chat: Not only will you get the automated financial advice, you’ll also have access to a real person through email and chat if you have questions. It doesn’t necessarily have to be about your 401(k).
Reasons To Not Use Blooom
There are a few reasons to avoid Blooom. They may not be for you if:
Have a non employer sponsored type retirement account: If you don’t have a 401(k), 401(a), 403(b), 457 or TSP account, you won’t be able to work with Blooom.
Don’t agree with their aggressive stock allocations for younger investors: Most investors under the age of 40 receive a stock allocation of 100%. If that’s too aggressive for you this might not be for you.
If your account is too small to make the fee worthwhile: If your account is small enough the fee may be too large or a percentage of your assets under management. You’re probably better off managing it yourself for the time being, and working hard to max out your contributions. Sign up later.
Blooom Is The Low Cost Robo-Advisor For Your 401(k)
Blooom is a low cost automated investment advisor for your 401(k).
Most people will contribute to a 401(k), but aren’t really fully aware of what they’re investing in, or why. If you don’t have the time or the inclination to research your 401(k), it can be like fishing in the dark. Which funds are the best for my situation?
Blooom can step in, and fill in the gap. They have the expertise, knowledge and the technology tools in order to turn your 401(k) around.
They’ll analyze your account for fees, allocations and diversity of investments. They’ll find ways that you can improve your investments and then help you to implement their suggestions.
In short, they’ll manage your 401(k) and allow you to focus on things that are more important to you.
2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $822,375* (Call 888-573-4496 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in San Benito County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in San Benito County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the San Benito County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in San Benito County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31, 2021, the median home value for San Benito County is $715,049. In addition, the median household income for residents of the county is $86,958.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
Due to its location, San Benito County has no significant flood hazard areas with the only potential flood areas being immediately around the Paicines Reservoir.
How do I learn about Property Taxes?
Tom J. Slavich is the San Benito County tax assessor. His office can be reached at 481 4th Street, Hollister, California 95023 and by calling (831) 636-4030.
Veterans, owner-occupiers, and senior citizens may be eligible for property tax relief. You can find out whether you qualify through the county assessor. In addition, the Assessor’s Office can do re-appraisals to determine property values and flood risks.
What is the Population?
The county’s population of 62,808 is 60% Hispanic, 32% White, and 3.9% Asian.
Most county residents are between 18 and 65 years old, with 25.5% under 18 years old and 13.1% older than 65.
In total, the county has about 18,135 households, with an average of 3.3 people per household.
What are the major cities?
There are two cities in San Benito County, including Hollister, which serves as the county seat, and San Juan Bautista’s city.
About San Benito County
Beyond the beautiful scenery of San Benito County is an area where excitement and activity abound. As part of the San Jose Metropolitan area, residents are near all offered in the big cities of San Jose and San Francisco while simultaneously maintaining the quiet and calm more typically found in small-town America.
The closeness to the big cities provides easy access for veterans to veteran services. San Jose is home to a VA clinic and many smaller veteran support groups.
Additionally, given the multitude of gorgeous fauna and flora native to San Benito County, it should come as no surprise that Benitoite, rare blue titanium, was initially found in the area. The county is so lush in plant and floral life that the Benito, a genus of flowering plants, is named for the county. As the parable goes, where there are plants, there are bugs, exemplified by San Benito County, where a millipede with more legs than any other millipede species was discovered in 1926. This ecological display is prominently featured at the Pinnacles National Park, a federally protected area.
Veteran Information
The county is currently home to 2,619 veterans.
San Benito County is home to two VFW post:
Post 9242 Hollister Post – 649 San Benito Street, Room 204, Hollister, California 95023.
Post 6359 Leslie L. Garratt Post – 58 Monterey Street, San Juan Bautista, California 95045.
County Veteran Assistance Information
San Benito County Veteran Service Office – 649 San Benito Street, Hollister, California 95023.
Apply for a VA Home Loan
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
At the moment, there are no VA-approved condos available in San Benito County. However, if you’re still interested in getting a condo through the approval process, call us at (877) 432-5626.
There are dozens of different factors that could impact your life insurance plan. If you are suffering from Crohn’s Disease, you may think your medical condition will prevent you from ever getting life insurance.
This simply isn’t true.
There are plenty of affordable options to get you the life insurance protection that your family deserves. While Crohn’s Disease is a serious medical condition, just having this disease isn’t enough to disqualify you from getting approved for life insurance.
The cheapest life insurance rates and coverage for you depends on the severity of your disease and your personal situation. In this article, we will look at the life insurance underwriting guidelines for people with Crohn’s Disease so you know your insurance options.
Life Insurance Underwriting With Crohn’s Disease
As you begin your life insurance application, every carrier’s questionnaire will likely have the same types of questions, with slight variances. They’ll be something to the tune of:
When were you diagnosed?
When did you last show symptoms of Crohn’s Disease?
How many episodes have you had over the past 6 months, 5 years, and in total?
Have you ever had to go to the hospital because of your condition?
Are you taking any medications for your condition?
Has surgery even been recommended and have you ever had surgery?
Was your condition ever bad enough to qualify you for disability?
Common medications include for Crohn’s Disease include: Sulfasalazine, Mesalamine, Azathioprine, Purinethol, Infliximab, and Adalimumab. Thought it does depend on other factors, none of these should be an immediate declination.
You’ll want to disclose any and all medications to your agent or underwriter as soon as you can, especially on the application itself. If an insurance underwriter doesn’t have a complete picture of your condition, your chances of a rated policy or a rejection go way up.
Your Crohn’s disease information isn’t going to be the only factor that the life insurance company looks at when deciding to insure you or not. Additionally, they are going to want a full overview of your health. This will include your heart rate, blood pressure, weight, and much more. After the application process, expect to provide blood and urine samples by way of an exam before any further underwriting can be completed.
Ads by Money. We may be compensated if you click this ad.Ad
Life Insurance Quotes With Crohn’s Disease
While Crohn’s Disease is a chronic condition, it is usually not fatal. This is why applicants with this disease can typically qualify for life insurance. It’s only when the disease is severe enough to cause frequent diarrhea, weight loss, and inflammation of the kidneys and livers that applicants run into high risk life insurance problems as these issues can lead to other serious health risks.
Your life insurance quote depends on your answers to the questions above as well as your insurer’s underwriting guidelines.
Preferred Plus: Applicants with Crohn’s Disease almost never qualify for Preferred Plus, the best possible rating. The chances of future complications are just too high.
Preferred: Possible in rare cases. Crohn’s Disease symptoms must have been in remission for at least 36 months and never have been serious enough to cause hospitalization. A perfect health record otherwise will also be required.
Standard: Best possible rating for most applicants. Symptoms are in remission for at least 36 months. No hospitalizations and only mild symptoms during past flare-ups.
Table Rating (substandard): Most applicants. Your rating will depend on the severity of your symptoms, the age you were diagnosed, whether you went to the hospital and/or needed surgery, and whether your condition is ongoing or in remission.
Declines: If there are signs of dysplasia on any biopsies or sclerosing cholangitis. Recent hospitalizations can also lead to a decline.
Just to be clear, your rating directly impacts your premiums, or the amount you pay. The better rating that you get, the less risk you are to insure, and the less that you’ll pay every month for your insurance protection.
Crohn’s Disease Life Insurance Case Studies
To get approved for life insurance with Crohn’s Disease, you need to be up front and honest on your application.
Here are a couple case studies that highlight the benefits of a proper application.
Case Study: Male, 32 y/o, non-smoker, single flare-up. Short period of steroid use for symptoms. In remission for 4 years. No health issues.
This client was only able to receive Standard rates or worse with his previous applications. We suggested he submit a letter describing his healthy lifestyle, solid work history, and otherwise perfect medical records. We also told him to make sure he listed the steroid use on his application, something he neglected on past applications. With this more clear application, he was able to obtain a Preferred rating on his policy and get a rate discount. This is not typical but can definitely happen.
Case Study #2: Female, 42 y/o, non-smoker, ongoing symptoms of diarrhea and mild bleeding, hospitalized 4 years ago for symptoms.
With fairly severe symptoms, this applicant had trouble receiving anything better than a rated policy. However, her condition had improved significantly since her hospitalization because she started taking better care of her symptoms. We set her up with a company that specialized in applicants with Crohn’s Disease and better understood her condition. We also recommended she ask her doctor for an explanation of her history and improvement. This helped her upgrade to a more affordable Standard rating.
Bottom Line
When you have Crohn’s Disease, the right application and insurance company make a big difference for your rating. Working with a broker that understands this condition will make sure you handle this process correctly.
The investor community is split into two factions: FIRE vs. YOLO.
The YOLO crowd includes the people who read Reddit’s r/WallStreetBets, who chase speculative trades, who place margin trades on Robinhood.
They share stock tips on Discord and bet on whatever appears in their chat feed. Earlier this week they piled investments into Galway Metals, Inc., briefly shooting up the trading volume, for no reason other than that its ticker symbol is GAYMF.
They poured into Dogecoin last night, a cryptocurrency with the face of a dog that started as a joke, causing the price to skyrocket 205 percent in a single day.
They’re placing margin bets on GameStop, triggering a short squeeze, and riding it to the moon.
They treat the stock market like a casino; they feed off tales of survivorship bias. They’re seeking alpha*, buying meme stocks**, and turning their $600 stimulus checks (“stimmies”) into the ultimate prize: enough profits to purchase a meal of chicken tenders, or “tendies.”
They’re nothing like the FIRE folks.
The FIRE crowd is passionate about index funds, passive investing, and long-term buy-and-hold. We prefer Vanguard over Robinhood and embrace the Boglehead investing philosophy.
We hope to keep pace with the overall market, not beat it, and we cite academics and advisors with peer-reviewed research to back up our ideas.
We debate about whether the 4 percent withdrawal rule is too conservative or aggressive; should it be adjusted to, say, 3.5 percent – 4.5 percent? We agonize over asset allocation and wonder whether we should add a REIT or international equities component to our two-fund portfolio. We know the expense ratio on our Vanguard target date fund.
The YOLO crowd thinks the FIRE crowd is boring, slow, conservative.
The FIRE crowd thinks the YOLO crowd is bro-ey, speculative, and unmoored from reality.
For years, the FIRE and YOLO camps maintained a peaceful coexistence, blissfully ignoring one another, each crowd living in its own universe.
We were content to ignore them; they were content to ignore us.
That changed yesterday.
Yesterday, major trading platforms did something so outrageous that their actions triggered a Congressional request for a Dept. of Justice investigation, inspired a class action lawsuit, and rapidly united the FIRE and YOLO camps into strange bedfellows.
What did they do?
They blocked us from the markets. They didn’t let us trade.
Yesterday, almost every major brokerage, including Robinhood, Schwab, Ally, Fidelity, and TD Ameritrade, halted trades on many high-profile stocks, freezing retail investors like you and me out of the game.
They targeted the trading freeze on stocks targeted by the Wall Street Bets subreddit, including GameStop, Nokia, Blackberry and AMC Theaters.
This means individual investors — you, me, Grandma — literally could not get in on the action.
To be fair, this is standard protocol when prices change too rapidly; it’s a safeguard to prevent another 2010 ‘flash crash.’ But typically, these types of trading halts affect everyone, both institutional and individual investors alike. That didn’t happen yesterday.
Individual investors (also known as ‘retail investors’) who wanted to sell were sidelined, watching prices fluctuate on assets that they wanted to liquidate, but couldn’t. They watched their gains evaporate while only a limited segment of the market — the major hedge funds and institutional investors — could freely transact.
Congressman Paul Gosar, in his request for a DOJ investigation, described this as “a concerted effort to de-platform and silence individual investors.”
When trading resumed, many brokerages — most notably Robinhood — only offered one-way trades: you could sell, but you couldn’t buy.
This is a move that drives markets. If the only choices are to hold or sell, eventually retail investors must unload, driving prices down. It reeks of market manipulation.
It outraged every individual investor.
Yesterday, FIRE and YOLO united under a common banner:
Let the people trade.
On Wednesday afternoon, I recorded a 20-minute podcast episode outlining the FIRE perspective on the GameStop rise.
I explained the history of meme stocks, the mechanics of short sales, and how the speculative frenzy over GameStop can be framed into a broader context.
On Thursday morning, when trading halted, I recorded another 9-minute episode explaining why this is an affront to all individual investors.
“Yesterday, I advised you not to be stupid,” I said. “Today, I defend your right to be stupid.”
If you want a rundown of everything that’s happened this week, listen to those two episodes.
There’s enormous context and depth to this story.
It’s a David vs. Goliath narrative — with a myriad of reasons why that narrative shouldn’t be taken at face value.
It’s a behind-the-scenes story of market makers and high-frequency traders.
It’s a story involving SEC regulations, credit line limits, and unanswered questions about decisions made in the days before the trading halt.
It’s a story of social media vs. Wall Street …⠀
… and the innocent bystanders who get caught in the crossfire. ⠀
It’s a story of stonks, stimmies, tendies, and the rise of meme stocks.
It’s a story of market manipulation and the reality that a subreddit can move markets faster than the Treasury Department. ⠀
I’ll write a detailed article next week providing context and history around Wall St Bets, GameStop, and the rise of meme stonks.
For the moment, if you want a primer on the craziness of this week, here’s where to look:
Until next week,
Paula
*“seeking alpha” is a phrase used by investors to indicate that they’re aiming for better-than-market returns.
**a “meme stock” is any stock that gets bid up based on a groundswell of enthusiasm from individual investors, not as a result of fundamentals but rather as a result of flash trends.