Posts Tagged ‘return on investment’

A depressing fact only 5% of Americans will be able to stop working. A scary fact, specially for the rest of us. Nevertheless, with painstaking preparation and a basic awareness of investing, you can undoubtedly become a member that 5%, even if you don’t yield that much money each year.

Investing in real estate could be a excellent way to become a member that 5%. I comprehend that this is not a fashionable feeling right now given the condition of the market. Regardless, investing in real estate has made countless millionaires throughout history. In addition, investing in real estate offers significant benefits over other investments Also, the current down market provides an exceptional for appreciation of the investment.

So where do you go to get started? The primary thing you must know is that there are three areas to focus on when buying an investment property. First and foremost, you ought to focus on making sure that the rent covers the costs and mortgage. After rents comes the forecasted appreciation of the property. The third area of focus is the effect that the investment will have on your taxes. When you look at a potential investment property these are the primary issues that you need to address.

A big mistake that many investors make is not wholly evaluating the financial impact of an investment before the purchase. There are scores of real estate investment software products on the market, and many of these real estate software programs are free for investors to download.

As a novice in real estate investing, you possibly will not entirely understand all of the ratios and data that a retail or free of charge real estate investment software program provides, the data provided by the program is still required to guide you on your decision. For most software programs the plain data is quite easy to realize and will allow you to get a feel for if the rent will cover the cost of the investment and if the investment property will truly be profitable. The more in-depth data returned from the real estate software may be better understood by bankers and accountants. However, these are professionals that you ought to come to know as you commence investing in real estate.

Download your own free real estate investment software from freetrainer.com and learn more about real estate investing from GRAR.

This week I think about long-term care insurance and whether that you should consider taking out a policy. It does not rank as one of the best investments for everybody, but you should consider carefully whether it may provide you with the assurance of continuing care that you need. As with all insurance, there is a chance that you will not see a return on investment, but you may want to pay for peace of mind.

Long-term care covers many services beyond the routine medical requirements, including help with eating, bathing, dressing, and getting around. In fact, ordinary health insurance does not provide any benefits towards long-term care, but the need for long-term care is very real as there is about a 50% chance if you’re 65 that you will spend some time in a long-term care facility.

People generally fall into one of three camps when considering this type of insurance. They may have enough money in their investments that they feel confident they can cope with the costs should they arise. The actual cost of long-term care services is on average about $30,000 per year, although it can be much higher, so these people may decide that they will face these costs if they need to.

On the other hand, they may have so little spare income that they cannot afford the premiums, which may be $2000 per year, and decide that they hope they qualify for Medicaid if the need arises. In fact, long-term care insurance for these people would only save the state money, not them.

Long-term care insurance is sold to the third group of people who have sufficient funds to afford the premiums and want to feel secure. Your investment advisor should be able to help you determine if it is right for you. Contact Ken Himmler (www.kenhimmler.com), or Integrated Asset Management (www.iamllc.biz) for advice.

If you decide to afford long-term care insurance, it is something you need to think about sooner rather than later, and you should not wait until retirement age. If you apply in your 50s, there is a one in 10 chance that you’ll be rejected; in your 60s, the charts increases to two out of 10; by the time you’re 70, the chance of rejection is four in 10. The younger you apply, the cheaper the premiums will be, so you cannot afford to wait until retirement. Be sure to read the fine print to check that you are getting the coverage that you want.

Authored by Kenneth Himmler, Sr.