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Florida Real Estate: Values Still Going DownSurvey: Home values will plunge even more By MONICA HATCHERPosted on Wednesday, Oct. 21, 2009 The firm predicts Miami home values will plunge another 29.9 percent by June 2010, on top of price declines of 48 percent since peaking in 2006. Orlando fared second-worse, with values shrinking 27 percent. Prices are forecast to fall another 26 percent in Fort Lauderdale. . . . "Distressed properties are going to fuel the inventory pipeline through 2010,"' McCabe said. "Because they are distressed, they are going to have the lowest asking prices and they are going to dictate market conditions." What this means for youLet's say a Miami homeowner had a home worth $600,000 in 2006. Homeowners can separate the equity from their home and invest it in secure investments that earn 7.2% per year. Based on the above article, here is what someone could to invest, then, now, and next year.
Figures have been rounded in the above table, and it is an example only. Actual results will vary. In other words, a homeowner using the Wise Equity Planning retirement method in $2006 would have $3.8 million by 2036, but if he does it today, he'll have only $2 million in 2037. And if he waits until next year, he'll have only $1.5 million 30 years later, in 2010. Homeowners: The sooner you separate your equity from your home and put it in a guaranteed safe investment that is liquid, has tax advantages, and has a predictable, competitive rate of return, the more money you will have for retirement or for your children's or grandchildren's education. If you wait, you may not be able to do it later. How this works: Your money can make money if you have four things:
Wise Equity Planning is often able to achieve a rate of return above 7.2%, so your money will double even faster. Money in your house is not safe - values keep dropping - contact us today for a free one-on-one meeting where we can determine the best plan to grow your money safely! The Stock Market: What's Coming, and How to Be ReadyOver the summer of 2009, some business leaders, politicians, and commentators are saying that the economy is not slipping as badly as it was. On a month-by-month basis, they may be right. But if we look at the next ten years, and at the years between now and your retirement, we see a different story. Baby boomers are retiring in record numbers. 26,000 are retiring every day, 78 million in the next ten years. When they retire, they stop putting money into Social Security, and start taking it out. Also, less money goes into retirement plans, and more comes out. And retirement plans are dropping in value by trillions of dollars per year. As this continues, less money is invested in the stock market, which means that in all likelihood, the stock market will continue to go down. That affects not only stocks, but also mutual funds, bonds, and the availability of credit. If interest rates go up, inflation will probably spiral up along with it, as it did in the early 80s. But, this time, with so many people retired, and with such a large national debt, recovery is much less likely now than it was then. If you want a different future - if you want to thrive, and not just survive - it is time to take charge of your own financial future, and not just place your hopes in a general economic recovery. Go for choice, rather than chance! Where do you go from here to thrive?
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