Public Pension Shortfall Hits a Trillion

Underfunded pension plans have been the norm for as long as I can remember. Most people don't realize that fact, however, until it's too late. Now might be a good time to check up on your employer -Public or Private!



Mathews Realty Group

"Building Lifestyles For Life"

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Pew: States' retirement shortfall exceeds $1.26 trillion

The gap between the promises states have made for public employees' retirement benefits and the money they have set aside grew to at least $1.26 trillion in fiscal year 2009, resulting in a 26 percent increase in one year, according to a report released Tuesday by the Pew Center on the States.

"In many states, the bill for public sector retirement benefits already threatens strained budgets, and is competing for resources with other critical needs, including education, infrastructure and health care," said Susan Urahn, managing director for Pew Center on the States in a press release. "The $1.26 trillion shortfall for pensions and retiree health care will drive up annual costs and make already tough budget decisions even tougher." Read more at www.benefitspro.com

 

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Bad News is Great News For Buyers!

The average medium home price across the US is back to what they were in 2003! If you count all the Homes that sit vacant and all the Shadow Inventory still waiting to come to market, you end up with a number close to 7 million.

Amplify’d from www.dsnews.com

Housing Crisis Continues to Batter Nation's Homeownership Rate

With the housing crisis still taking its toll, the nation’s homeownership rate slipped further during the first three months of this year. The U.S. Census Bureau reported Wednesday that the homeownership rate dropped to 66.4 percent at the end of the first quarter. It’s fallen back to a level not seen since 1998. Analysis of the numbers shows that the housing bust has more than reversed the increase in homeownership gained during the boom.

Two million of the homes up for sale were sitting empty during the first quarter and another 4 million empty properties were not even listed, he explained. Read more at www.dsnews.com

 

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Housing Recovery In Calif.- Not Yet!

Mathews Realty Group

Retirement Advisor/Investment Services

Self Direct IRA/Solo 401K Plan Specialist

Amplify’d from www.doctorhousingbubble.com

The reason I think we are still years away from any normal market is the fact that there is still a large appetite for housing.  The current market is now dominated by investors and first time buyers.  These buyers are picking lower priced properties but again, a bulk of these people are speculating even for cash flow purposes.  Psychologically assessing the market I believe sentiment is still too strong in some areas.  The bottom will come when people look at homes more as a place to live instead of an investment.  The California market is facing challenges ahead:

The only things keeping this market together is artificial methods of intervention like the Federal Reserve and accounting gimmicks.  These actions have kept the above data stagnant for a year but how long can this game of pretend go on?  If incomes are not rising then how are households going to pay for their home?  What if mortgage rates start retreating to their more historical average?  Ultimately incomes have to go up or home prices have to go down. Read more at www.doctorhousingbubble.com

 

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Home Buyer Confidence Gone!

The Greatest Home Buying opportunity of a lifetime! Will you miss it???

Amplify’d from www.bloomberg.com

Americans Shun Most Affordable Homes in Generation as Owning Loses Appeal

The most affordable real estate in a generation is failing to lure buyers as Americans like Pauli sour on the idea of home ownership. At the end of 2010, the fourth year of the housing collapse, the share of people who said a home was a safe investment dropped to 64 percent from 70 percent in the first quarter. The December figure was the lowest in a survey that goes back to 2003, when it was 83 percent.

“The magnitude of the housing crash caused permanent changes in the way some people view home ownership,” said Michael Lea, a finance professor at San Diego State University. “Even as the economy improves, there are some who will never buy a home because their confidence in real estate is gone.” Read more at www.bloomberg.com

 

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Strategic Defaults Hit New High!

Is it a Moral issue or just a Prudent Financial Decision?

In today's market, it's extremely hard to justify the Morality of walking away from one's home. when your local banker is getting rich, with the Feds blessings and at the same time; pointing out that the Home owner has a Moral obligation to pay their mortgage no matter what! Until the Gov. stops supporting all of these banks and mortgage holders (using tax dollars), Strategic Defaults, will only continue to rise! Hey Feds! Are you listening???



Mathews Realty Group

Retirement Advisor/Investment Services

Self Direct IRA/401K Plans Specialists

Amplify’d from www.dsnews.com

FICO Profiles the Strategic Defaulter

As home prices began heading further and further south, the term “strategic default” made its way into industry jargon…and into the minds of lending and servicing professionals already struggling to keep up with large volumes of borrowers who actually can’t afford their mortgage payments. Strategic default refers to a relatively new phenomenon where borrowers who have the capacity to make their mortgage payments but choose instead to default, often because the property value is less than what they owe on the mortgage loan.

Experts say continued weakness in the mortgage sector is driving greater numbers of strategic defaults. Studies from the University of Chicago Booth School of Business indicate that in September 2010, 35 percent of mortgage defaults were strategic, up from 26 percent in March 2009. Read more at www.dsnews.com

 

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Seniors Fear Grows About Retirement!

I remember seeing a TV commercial a few year back, sponsored by a big Insurance Co. The slogan was; "Retirement Isn't The Finish line - It's The Start Of a New Lifestyle". The Big concern and question today is however, What kind of "NEW" Lifestyle are you talking about!?



Mathews Realty Group

Retirement Advisor/Investment Services

Amplify’d from www.benefitspro.com

Seniors fear public policy will derail retirement plans

More than half of retirees responding to a LIMRA survey say changes to Medicare, Social Security programs and increased taxes will affect their ability to afford retirement.

More than 85 percent rely on Social Security and three-quarters benefit from a traditional pension plan for their income, according to LIMRA's research. Forty-four percent of retirees listed investments and taxable savings as an income source; 35 percent an annuity (8 of 10 have a deferred annuity); and about a fourth mention employee earnings, defined contribution plans and IRAs funding their retirement income. More than half of their income is used to pay for basic living expenses.

The study also found that less than half of retirees worked with a paid professional advisor to make investment decisions and only 22 percent had a formal written plan [See related: Retirement advisors ignoring middle-income Americans]. Prior LIMRA research has discovered that retirees who have a formal written plan are far more confident in their financial well being than those who don’t. Read more at www.benefitspro.com

 

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NAR Report In Question Again!

Here we go again! Phony facts from the National Association of Realtors. You would think, since the reputation of every Realtor in this Country is lower than dirt, that the NAR, would stop playing politics with all the sales numbers.



Mathews Realty Group

Retirement Advisor/Invesment Services

"Building Lifestyles For Life"

Amplify’d from www.dsnews.com

Analysts Weigh in on NAR's Existing-Home Sales Report

The National Association of Realtors (NAR) reported Wednesday that sales of previously owned homes rose 3.7 percent last month, following the 9.6 drop recorded in February.

Reaction was mixed after the release of the report. Reuters called the news “a hopeful sign for recovery.” Blogger Stephen Gandel commented, “This month’s data says, once again, the recovery is not yet in sight.”

Referring to statements made by CoreLogic in February that NAR’s measure of home sales is “exaggerated,” Dales added, “What’s worse is that these figures may be overestimating the level of sales by up to 20 percent. Once revisions have been made in the summer, housing demand may look even weaker.” Read more at www.dsnews.com

 

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