Season 5

Surprise! Your home may be costing more than you think.

Episode Notes

It’s a common belief that owning a home is an investment, but the reality is otherwise. While the national year-over-year appreciation rate of 14.5% (as of April 2021) may seem high, this figure includes both areas where housing prices are skyrocketing as well as regions where appreciation is relatively low. Once you add the costs of owning a home—mortgages, taxes and home repairs—into the equation, the actual appreciation rate of the average home barely matches the inflation rate. So, for many people, their home not only isn’t an investment, but, depending on the never-sending cycle of home maintenance costs, it may end up being a money-losing proposition. That’s why you should think of your home solely as a place to live in, and one for which you need to set aside money each year for both ongoing maintenance as well as costly “surprises.” Making a list of when you last fixed your roof, had the exterior painted, installed a new furnace or central air conditioning system or bought a water heater, dishwasher or washer/dryer and estimating when they may need fixing or replacing can help you estimate how much you should put aside each year-- 1% of your home's market value may be a good place to start--and financially prepare you when these “surprises” occur. Having this rainy-day fund is important, especially during retirement, because the last thing you want to do is to tap into your retirement nest egg to pay for emergency expenses, especially if making a non-required withdrawal from your IRA or 401(k) plan assists could raise your taxes.

For further research: 

Recent Podcasts

Season 8
Tax Tips — Don’t Procrastinate!

Show Episode Notes

The clock is ticking towards Tax Day, April 18. Here are some timely tips for tax form procrastinators.

For further research:

Season 8
Annuities for Retirement Income

Show Episode Notes

Mention the word “annuity” and most investors recoil. There seem to be so many hidden secrets and costs.  And high pressure sales tactics along with "free dinners."

In today’s podcast we unravel those mysteries – with the one man who has consistently worked to educate the public to the ins and outs of annuities – as well as some of the better uses of these insurance company contracts.  Stan Haithcock’s website – www.StantheAnnuityMan.com -- is a great resource for free basic information and good advice on annuities.  And Stan is one of the most entertaining financial speakers you’ll ever meet.

So, sit back and enjoy our podcast.  We devote special attention to Multi-Year Guaranteed Annuities (MYGAs), now yielding over 5.5%.  They’re the insurance industry’s version of a bank CD, without the FDIC backing.  And they are a great way to improve yields either inside or outside your IRA.

To read more about MYGAs, here’s a link to Terry’s column on the subject:  https://www.terrysavage.com/an-annuity-that-works-for-you-myga

And if you’d like to listen to more of Stan’s terrific approach to financial markets, both Terry and Pam have recently joined him on HIS podcast.  You’ll find the links to these conversations here:

Terry Savage: The Savage Financial Truth in 2023
https://www.stantheannuityman.com/fwa-terry-savage-january-2023

Pam Krueger: Your Wealthramp to Fiduciary Advice
https://www.stantheannuityman.com/fwa-pam-krueger-february-2023

 

Show Episode Notes

Podcast Hosts

Pam Krueger

Pam Krueger

Terry Savage

Terry Savage

Richard-Eisenberg

Richard Eisenberg

Stay Tuned Into Friends Talk Money

Copyright © 2021 FriendsTalkMoney.org