3 Costly Retirement Mistakes to Avoid

Though retirement is an exciting period of life, it can also be stressful — especially from a financial perspective. Think about it: You’re suddenly going from earning a paycheck to living on a fixed amount each month from Social Security and savings. That’s a scary prospect. But by not making these major mistakes, you can avoid the financial worries so many seniors come to face.

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Many people think they can get away with not following a budgetOpens a New Window., during their working years as well as in retirement. But once you move over to a fixed income, knowing where your money is going becomes all the more crucial.

If you’re not used to following a budget, change your tune when you retire. Map out a list of your recurring expenses, factor in one-time expenses (like annual subscriptions or membership dues), and compare that to the monthly income you have to work with. Keep in mind that the money you withdraw from savings isn’t necessarily free of taxes. Unless you’re stashing that money into a Roth account, you’ll lose a chunk of your distributions to the IRS.

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Now, if you find that your monthly income is enough to cover your ongoing expenses, you’re in pretty good shape. Still, there should be a touch of wiggle room in your budget for unplanned bills. So if it’s not there, play around with some of your spending categories. You might, for example, dine out a bit less frequently or get a less expensive car to free up a little money. Either way, make sure you understand exactly where your income is going so you can make the most of it and, just as important, make sure you’re not overspending.

If you’re not used to following a budget, change your tune when you retire. Map out a list of your recurring expenses, factor in one-time expenses (like annual subscriptions or membership dues), and compare that to the monthly income you have to work with. Keep in mind that the money you withdraw from savings isn’t necessarily free of taxes. Unless you’re stashing that money into a Roth account, you’ll lose a chunk of your distributions to the IRS.

Now, if you find that your monthly income is enough to cover your ongoing expenses, you’re in pretty good shape. Still, there should be a touch of wiggle room in your budget for unplanned bills. So if it’s not there, play around with some of your spending categories. You might, for example, dine out a bit less frequently or get a less expensive car to free up a little money. Either way, make sure you understand exactly where your income is going so you can make the most of it and, just as important, make sure you’re not overspending.

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A Leaking Roof may be in your Future

Signs You Might Be Headed for a Leaking Roof

by HomeAdvisor

    
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Signs of an Impending Leaking Roof

  • Missing or torn shingles expose the roof to water damage and rot, and make nearby shingles more susceptible to being blown away. Old shingles will curl, split and lose their waterproofing effectiveness. These weakened shingles are more likely to be blown away by wind gusts.
  • Rusted or missing flashing can result in a leaking roof. Flashing is the metal that surrounds chimneys, skylights and vent pipes and often is found in the valleys where roof sections meet.
  • Check gutters, downspouts and splash pans for evidence of decay or damage. Broken pieces of paint and scraps of roofing may be visible.
  • Indoors, look for discolored plasterboard or cracked paint and peeling wallpaper.

Replace a Roof without Removing the Roof

Signs of a leaking roofYou have two main roof replacement options: You can either remove the old roof or put a new roof down on top of the old one. Putting a new roof down on top of the old one is almost always cheaper but often doesn’t last as long—a typical situation where you get what you pay for. However, some considerations can make one choice better than the other. If you have more than two roofing layers already present, your roof can get heavy, cumbersome, and the sub-layers may end up rotting through to the point where your new roof is no longer stable.

This is one of the reasons why repairing and replacing roofs are a frequent source of home improvement failure. You need to find a quality roofing contractor—this is a difficult enough task on its own—but you should also ask to see your roofing layers before you make a decision.

Removing and Replacing the Roof

If you need to remove and replace your roof, make sure to do it right. If you don’t have the budget to do it on your own, consider financing the project through home equity. Some homeowners even decide to cheaply repair a roof with the knowledge the repair won’t last more than 10 years. By that time, their house has appreciated enough to be able to finance the project. Once the old roof has been removed, there’s a good chance the roof deck will need to be repaired if it has settled or shows sign of rot. You’ll also want to review the slope of your roof to ensure you’re receiving optimal drainage. All of these considerations are paramount to getting the most out of your new roof. A high-quality roofing material and proper installation should give you a new roof that will last half a century.

Online Purchases and Sales Tax

Supreme Court sales tax ruling could be commercial windfall

NEW YORK – June 25, 2018 – Commercial real estate practitioners stand to benefit from a Supreme Court ruling Thursday that gives Florida and other states the authority to make online retailers collect sales tax.

The decision, stemming from online retailer Wayfair Inc.’s lawsuit against South Dakota over such a state law, potentially erases internet sellers’ advantage over brick-and-mortar stores, which are legally required to charge sales tax to customers. If shoppers prefer driving to the mall, the may start to do so again since online retailers have lost their tax advantage. As a result, both conventional and online retailers may put more stock in physical spaces, lending more business opportunities to commercial agents.

READ MORE..http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=368011

Will your claim for Water Damage to your Property be accepted or denied?

Water Damage to My Property – Will my claim be accepted or denied?

Water or flood damage to your property can cause a startling amount of damage in a short period of time. In this situation, there will be many contributing factors that determine whether your claim is accepted or denied by the insurance company.

The outcome of your property damage claim depends on the type of policy purchased, the cause of damage, whether the damage was gradual or sudden, and in some cases the availability of your maintenance records.

Water vs. Flood Damage

Water Damage to My Property - Will my claim be accepted or denied?

Water Damage

Water Damage to My Property - Will my claim be accepted or denied?

Flood Damage

 

 

 

 

 

 

 

 

 

A significant determining factor in your claim will be whether or not the damage was due to flooding. In the insurance world, water damage and flood damage mean very different things. Standard insurance policies exclude damages caused by flooding, so it is important to understand the difference.

Water Damage

Water damage covered by insurance policies is typically for a sudden event such as a broken appliance causing a leak or burst plumbing.

Most policies also cover water damage from leaking roofs and walls, including winter ice back up damage. However, some policies will only cover interior water damage if there is direct damage to the building that creates an opening for water to enter, e.g. wind damage.

Flood Damage

  • The Federal Emergency Management Agency (FEMA)¹ defines a flood as, “A general or temporary condition of 2 or more acres of normally dry land area…from:
    • Overflow of inland or tidal waters; or
    • Unusual and rapid accumulation or runoff of surface waters from any source; or
    • Mudflow; or
    • Collapse or subsidence of land along the shore of a lake or similar body of water as result of erosion…”

Flood damages are caused by natural disasters such as hurricanes, tsunamis, overflowing rivers, and heavy rains and are not covered by standard property insurance policies. Policyholders must have a separate flood policy in order to have coverage for flood damages incurred as a result. For most properties the only source for flood coverage is the National Flood Insurance Program (NFIP).

Chronic/Gradual vs. Sudden/Accidental

Chronic/Gradual

A chronic or gradual water damage issue such as an ignored pipe or roof leak causing slow seepage over time will typically not be covered regardless of the cause. Property owners are expected to fix issues to their property in a timely manner. Failure to do so can result in claim denial.

Sudden/Accidental

A sudden or accidental water damage issue such as a broken appliance hose is more likely to be covered by your insurance company. While all policies differ, non-flood related water damage events that occur suddenly and accidentally are typically covered.

Water that flows over the ground into the building or seeps through foundation walls is not covered by regular policies; nor is water that backs up through sewers or drains; however, special limited coverage can be added for the sewer backup damage.

Neglect

Property owners who are neglectful to their properties and suffer a water damage loss can find it hard to collect on their insurance claim. For example: A homeowner who lives in the Northeast leaves for a winter vacation and turns the heat off in his/her house. Temperatures drop below freezing while he/she is vacationing. The homeowner’s pipes freeze and burst due to failure to maintain a proper temperature indoors. This claim would be denied because of the homeowner’s failure to maintain heat or drain the plumbing system.

Avoiding water claims – the best solution!

It is important to properly maintain your property and all equipment, appliances, and other systems that could cause water damage should they malfunction or break.

Water Damage to My Property - Will my claim be accepted or denied?Items to regularly maintain in your home, to avoid water damage:

  • Hot water heaters
  • Heating equipment
  • A/C drain lines
  • Indoor and outdoor pipes and faucets
  • Appliance hoses
  • Showers, tubs, sinks, toilets
  • Windows & doors,
  • Roofs
  • Sewer drains
  • Rain gutters & downspouts
  • Sump pumps²

You Do Not Have to Handle Your Claim Alone.

It is always a good idea to get professional advice especially from someone who understands the insurance claims process, such as a public adjuster.

There are three types of “adjusters” who you may interact with over the course of your claim. Public adjusters are the only category of insurance adjuster who work exclusively for you, the policyholder.

  • company adjuster (often referred to as simply the “insurance adjuster”) works for the insurance company.
  • An independent adjuster also works for insurance companies, not for policyholders. They are simply an independent agent rather than an employee, so an independent adjuster could be working for multiple insurance companies.
  • public adjuster represents the only category of adjuster that works exclusively for policyholders and never for insurance companies. This means there is no inherent conflict of interest when it comes to advocating on your behalf to the insurance company.

STOP Wasting Money and the 28 Ways to do it.

28 Ways to Stop Wasting Money

C.J. Burton

It’s a pretty good bet that you have leaks in your budget—car insurance that costs too much, bank account fees, home-energy wasters or mutual funds with high expense ratios. Each of those leaks in isolation won’t damage your finances, but all of the drips can quickly add up to big bucks—maybe even thousands of dollars a year—going down the drain. We identify typical leaks and show you how to fix them so you can keep more money in your pocket.
READ THE  28 WAYS…

 

Home Insurance: It’s Time for Your 2018 Checkup

It’s Time to Run Your 2018 Home Insurance Checkup

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Thousands of homeowners saw their houses razed by the series of wildfires that swept across California late last year. Undoubtedly, most of them had some form of home insurance policy in place that will now help them to rebuild their lives. However, the broad discrepancy in reimbursement that various homeowners receive may surprise you.

Some will see their home and property totally replaced—brick for brick, item for item—by their insurance company. Others may receive a check that covers only a portion of the costs. Unfortunately, some from the latter group might not have realized that they didn’t have enough coverage until it was too late.

With most of 2018 before us—and such stark examples of unexpected home loss—we believe that now is an excellent time to conduct your own homeowners insurance checkup, to make sure you have the coverage you’ll need if your home is damaged this year.

What are your policy’s limits?

While most home insurance policies cover the structure of your home, the fine print of your policy will reveal how much you’ll actually be reimbursed if your house is destroyed. Policies describe their hazard coverage limits with one of three terms, and the payout that’s implied by each term can make a huge difference to homeowners.

The three types of coverage limits

  • Actual Cash Value (ACV):The ACV is the market value of your house, minus any depreciation. It’s possible that the value of your land may have increased since you bought it, but specific elements of your house, such as the plumbing or floorboards, have aged, and therefore may have depreciated in value. Because of this, the ACV likely won’t cover the entire cost to rebuild your home with new materials.
  • Replacement Cost Value (RCV):The RCV is the amount it will cost to rebuild your house at the current prices for labor and materials. A policy that covers your home’s RCV will have higher premiums than one that covers only the ACV, but it could provide a substantial amount of additional reimbursement if you need to replace all or a part of your home. However, a policy that covers the RCV is still subject to limits.
  • Guaranteed Replacement Cost (GRC) / Extended Replacement Cost (ERC):The GRC/ERC of a home is like the RCV, but with a guarantee that the insurance company will pay a certain percentage beyond your policy’s limits to rebuild your home. This is relevant if a regional disaster, such as a wildfire, temporarily drives up the cost of labor and building materials. However, this is the most expensive option.

A victim of the California wildfires that held a policy that covered the ACV of their home would likely end up paying tens of thousands of dollars out of pocket to rebuild their house. If your current homeowners insurance policy wouldn’t cover the full cost to replace your home, you should consider increasing your policy limits this year. While an increase in limits will come with an increase in premiums, that extra coverage will be well worth the cost should your home face significant damage.

Do you have home or hazard insurance?

Many people don’t understand the difference between home and hazard insurance. While standard homeowners insurance, such as an HO-3 policy, includes hazard coverage, it includes property and liability coverage as well. This type of comprehensive coverage is vital if your home and all of your possessions are destroyed, or if someone is injured on your property and decides to file a lawsuit against you. However, if you have an HO-1 policy, you only have hazard insurance. Hazard insurance, also known as dwelling coverage, insures only the structure of your home from the perils named in your policy. That means that if your home is destroyed, your insurer would help cover the costs of rebuilding your house and its attached structures. You wouldn’t receive a dime, though, for any of your personal property that was destroyed with the home, or damage done by an unnamed peril. If your current policy only includes hazard coverage, you should consider the worth of all of your possessions: your TVs, furniture, laptops and more. The total probably amounts to a significant sum of money. Next, consider the sum all of your financial assets that would be at risk if someone were to be injured at your home and then successfully sue you. The resulting legal fees and medical costs could exceed your entire net worth. These are the types of risks from which you’re protected under a homeowners insurance policy. In most cases, a comprehensive home insurance policy is worth the additional premiums you’ll need to pay.

Are you using the best company?

You may be surprised by the rates you find if you shop around for the best rates offered by home insurance companies. However, rates alone do not imply the best deals. When shopping around, look for the factors we consider when comparing insurers, which include affordable rates, the best customer service and the highest claims process satisfaction score. While it might not sound like the most enjoyable exercise, beginning the year with a homeowners insurance checkup can help you uncover critical areas where you’re underinsured or overpaying. If your home is subject to an unexpected disaster, you’ll be happy you planned ahead.

The article, It’s Time to Run Your 2018 Home Insurance Checkup, originally appeared on ValuePenguin.

Wills, Trusts and Estates: Joint Tenancy pitfalls

Estates, wills and trusts: The pitfalls of joint tenancy

STUART, Fla. – Feb. 21, 2018 – As individuals get older, many decide to add their children’s names to their homes or their brokerage and bank accounts. This is called owning something in “joint tenancy.” People are told that by doing this they will avoid probate and automatically pass those assets to the persons named on the property or accounts.

This is true, but doing this may have significant adverse consequences that most people are not aware of.

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Your Credit Score and Real Estate

TransUnion exec talks credit scores and real estate

NEW YORK – Jan. 29, 2018 – It may be winter now, but the spring house-hunting season is just ahead. John Danaher, president of consumer interactive at credit bureau TransUnion, says that makes this the perfect time for home-seekers who want the best terms and rates on a mortgage to take control of their credit.

TransUnion is one of the three major credit bureaus, which keep track of and provide consumer credit reports. Your credit report and score are integral to securing the best terms for a mortgage.

Question: Why think about real estate now?

Answer: Typically the home-buying season starts to heat up in the springtime. That is when people start looking around in earnest. So what we recommend is doing some work upfront to make that process go as smoothly as possible. That involves checking and knowing what your credit standing is and doing work to be preapproved for a loan so you’re ready when you find the house you want. It helps you set a budget and know how much house you can afford

READ MORE… http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=4&id=361733

New and Improved Poe & Associates Realty Website

We are Proud to announce the release of our New and Imporoved website for Poe & Associates Realty. Please take a moment and click the link to see what we have to offer, view properties you may be interested in, look at our different commission Flat Fee Plans, checkout the testimonials, view our listing For Sale and For Rent. We hope you like our new look and will sign up to receive our FREE home valuation or our FREE Buyer or Seller Property Alert or Market Alert for your community.

http://www.PoeRealty.net

Respectfully, Yours in Real Estate

Peter J. Poe
Broker/Owner
Poe & Associates Realty
941-729-8523 office
727-804-4811
Peter@PoeRealty.net