Victor Varma | Blog

How to buy a home when there aren’t many on the market

Posted on October 10, 2017September 17, 2017 by Victor Varma

In economic parlance, many describe today’s housing market this way: demand is high and supply is low. In practical terms, this means there are more buyers than homes for sale. While this isn’t true in all areas of the country, it is true in many areas.

According to USA Today, there was a 4.3 month supply of homes nationally in August of 2017. That means it would take a little more than four months to run out of homes for sale if no other homes came on the market. This number was down from earlier in the summer when there was a 4.6-month supply. The normal number of homes for sale is a 6-month supply.

Why is supply of homes for sale so low? Baby Boomers don’t want to sell, according to USA Today. A recent realtor.com survey showed that 85 percent of Baby Boomers aren’t selling but 60 percent of millennials are.

In this market, sellers may easily get the price they want, but buyers must have all their shingles in a row these days.

Here’s how you have the best chance of snagging the house you want:

*Get your financing ready
First get pre-qualified for a loan. This is an informal process where you visit with various lenders, giving them an overview of your financial situation. The lenders can then give you an idea of how much you can borrow and an idea of interest rates. But, beware, this is not a promise to loan you the money. It merely gives you working numbers.

*Shop around
The good thing about pre-qualification is that you can start shopping around before you are ready to buy. You can get an idea of what you can afford and what you want in a house. Even if this isn’t your first time in the market, don’t skip the growing period, according to USNews. If you have been out of the market for more than a year, then you don’t know what is out there.

*Get pre-approved
When you know you want to take the plunge, get pre-approved for a loan. At this point, you should have an idea of which lender you might want to use. The lender checks your credit, verifies employment, and confirms your ability to qualify for a mortgage. With a pre-approval in hand, you are ready to make a credible offer when you find the home you want.

Never use a Roth IRA as an emergency fund

Posted on October 6, 2017September 17, 2017 by Victor Varma

Roth IRAs are unique retirement tools in that they allow the owner of the account to withdraw their original deposits from the account at any time without penalty. Because the accounts are funded with after-tax money, Uncle Sam doesn’t have to worry about getting a cut as money moves in and out of the IRA. This feature could lead some people to use their Roth IRA as a sort of emergency fund if they have no other savings to draw from.

According to The Simple Dollar, however, it is not a good idea to use the account in this way because most of the gains will be lost with a withdrawal and only so much can be contributed over a lifetime. Say that a 25-year-old deposited the $5,000 yearly limit and wanted to see how much this would turn into when they retire in 40 years. At 7 percent interest compounded annually, there will be $74,872 when they turn 65. Taking that $5,000 back out when they are 30 to cover an emergency will result in only $21,489 over the same time frame. Taking money out early might sound good in the short term, but it will be disastrous for long-term financial security.

Besides Insurance, How Can a Business Prepare for a Hurricane?

Posted on September 27, 2017September 28, 2017 by Victor Varma

Besides Insurance, How Can a Business Prepare for a Hurricane?
By M Wyzanski

Any insurance professional will stress the importance of a good commercial policy that includes wind and hail as well as flood coverage in relation to protecting your business from the elements. Case in point is the fact that many stricken by current hurricanes do not even own flood insurance.

We won’t get into the implications of damages and losses recovery in regard to this unfortunate set of circumstances. Suffice it to say, in wake of the destruction, these home and business owners have to deal with the financial stress on their own, save for whatever government assistance they can get.

Besides having a proper insurance plan in place, businesses can prepare for the worst weather scenarios by doing the following.

Review your company’s impact study:
• Make a tally of what type of losses you may incur.
• Consider the amount of risk loss and severity probability that may impact your business.
• Look over your business process flow agenda: Should one portion of your company become unworkable, assign another unit to take over.
• Choose which operations are vital for continued survival and recovery.
• Ensure all records of sales and customer-base, as well as tax data and documents are stored in a secure off-site location.
• Assign others to take over executive management if those in place are not able to carry out duties.

Partner with Other Businesses
• Have vendors ready to outsource services in case of a hurricane disaster.
• Mark down important vendor and business partners and store this info in an off-site multiple employee-accessible location.

Make Alternate Plans for your Facility
• Contemplate the use of other locations in the event your main office is rendered inaccessible or inoperable.
• Plan for security of people and property.

Ensure Payroll Efficiency
• If it is pertinent, ensure the vendors you will deal with understand how to continue with payroll.
• Partner with your vendors to ensure employee info is stored securely in an off-site location.

Team up with Other Operations
• Group together with other corporations at your building site to prepare for continued business in a weather-induced crisis.
• Reach out to emergency personnel and power companies to show them how your operations are conducted.
• Devise a plan together with your suppliers, shippers and others you rely on so that you will know how to carry on in the event of an emergency.

Keep Up with Your Protection Plans
• Review your plans on how to deal with an emergency situation yearly. Revise them if you feel changes need to be made.
• Conduct consistent emergency drills.
Risk control is part of any major insurance company’s policyholder’s benefits. Contact an independent agency that does direct business with many of the leading providers for more information on how your company can protect itself from a hurricane or other natural disaster.

Article Source: https://EzineArticles.com/expert/M_Wyzanski/2158115

Not just Florida: Consider the world when planning retirement

Posted on September 22, 2017August 10, 2017 by Victor Varma

Not just Florida: Consider the world when planning retirement

Living in North America offers access to an unprecedented standard of living, stable employment, safety, and entertainment.

But it comes at a high cost. What if you could retire in style at a fraction of the cost? Enter geo-arbitrage which means taking advantage of the cost of living in different locations.

To make retiring early feasible for the average individual, Business Insider points out that American dollars can buy a lot more in other countries than they can at home. As an example, most retirement calculators are based on about $40,000 per year in annual retirement income to compute their savings goals. This assumes that the person is using the standard 4 percent withdrawal rate from their retirement savings. To manage that number, a person would need $1 million in the bank to retire. This amount of money will require diligent saving and strong market performance to achieve.

Conversely, an individual might only need about $12,000 per year to live comfortably in a place like Guatemala. This means that they could retire with the same standard of living while only having $300,000. This could literally shave more than a decade off of a person’s working life. Sure, the standard might not be an exact apple-to-apple comparison, but many resources are available online that help to provide direction and information for would-be expatriates. Many from these groups are already living abroad and have helped pave the way for this trend to flourish.

Now, this type of lifestyle change might not be feasible for everyone, especially families with children still in school, but options exist outside of the traditional method of working until the age of 65. It would pay to take notes anytime someone is traveling abroad on how they might like to spend the rest of their lives in that location. For someone up for adventure and yearning for financial freedom, geo-arbitrage might just be their golden ticket.

Flood Insurance, Even in a Non-Flood Zone? You Bet

Posted on September 18, 2017September 25, 2017 by Victor Varma

By M Wyzanski

Record breaking flood waters have emerged following one of the most devastating hurricanes the US has come to know. In fact, in the southeast areas of the lone star state, the majority of homeowners do not even own flood insurance. And who can blame them? There was never a precedent in the locality. Although hail and wind storms are a constant concern for property and business owners, no one imagined that rain waters would contribute to enormous damages as those suffered and broadcast throughout the country in recent days. Surely not the home mortgage companies, for they do not even require it from borrowers!

But now that the toll has risen among the dead and those forced out of their homes seeking shelter, one thing remains clear. When things eventually do settle down, home owners and people in the commercial sector will have to deal with the epic losses and damages on their own because of a lack of related coverage.

For homeowners without flood coverage the facts are uncomfortable, as they are painful: a standard home insurance policy does not protect from floods and the damages related to them. The insurance industry stresses in no uncertain terms that compensation is only provided to those who had the foresight to acquire flood insurance in the event of water damage emanating from atmospheric conditions like a hurricane, a tropical storm or other inclement weather.

A little history about Flood insurance:
The year was 1968 when the US Congress mapped out its flood program. Designed to help assist home and business property owners from the financial ravages of a damaging flood, its policies are offered in all communities that are involved in the rules of participation.

Flood coverage shields property owners or renters from building damage and contents damage.
This includes the following:
• The structure, as well as building foundation
• Electric and plumbing systems
• Central air conditioner, furnace, water heater
• Refrigerator, stoves, and any installed appliances, like a dishwasher
• Carpet that has been installed over bare flooring
• Personal clothing and electronics
• Drapery
• Transportable heaters and air conditioners
• Carpeting other than what is included in the property coverage
• Washers and dryers

Typically, flood recompense claims include:
• Replacement Cost Value: up to eighty percent of the amount needed to replace property damages in a single-family, primary residence
and
• Actual Cost Value – replacement costs at the time of loss reduced by physical depreciation

Note: The flood program always uses actual cost value to determine reimbursement of personal property.

Article Source: https://EzineArticles.com/expert/M_Wyzanski/2158115

Note from InsureUS: As a result of Hurricane Harvey and the horrific devastation caused by flooding in Harris and surrounding counties, floodplain maps will likely be revamped in the near future, which means rates for flood insurance could be on the rise. If you believe your home may be in a period that will be on the new floodplain map, NOW is the best time to act on it as the rates will go up after the new maps are created. Call InsureUS today at (281) 640-8888 for your quote.

Visa campaigns for cashless small businesses

Posted on September 15, 2017September 25, 2017 by Victor Varma

Money talks to small business and one credit card company is speaking loudly.

Earlier this year Visa unveiled a campaign to encourage small business food service owners to stop taking cash as payment. The effort highlighted the continued move by merchants to make it easier for customers to pay with credit cards, and now even digital currency, like Bitcoin.

For Visa’s campaign, small business food service owners who committed to join its 100 percent Cashless Quest could be awarded up to $500,000.
According to Visa, 70 percent of the world’s people, or about five billion, will have a connected mobile device by 2020.

That is an “incredible opportunity to educate merchants and consumers alike on the effectiveness of going cashless,” Visa noted.

The card company’s campaign was a call-to-action for small business restaurants, cafes, and food truck owners to describe what cashless meant for them, their employees, and customers. It also highlighted the opportunities for small business merchants.

Visa found that if businesses in 100 cities switched from cash to digital, their cities stood to gain $312 billion of savings, largely in the form of labor costs.

Small food service businesses already have been making the move away from cash with the explosion of easy ways to accept with credit cards. Now that tide is even turning as people take advantage of digital currency, like Bitcoin, to make their purchases. The number of ways for merchants to accept digital currency is growing, as Bitcoin, and other types of cryptocurrencies, shed their negative reputations.

Hurricane Harvey highlights small business risk

Posted on September 11, 2017September 3, 2017 by Victor Varma

The devastation left by Hurricane Harvey is a good reminder to small business owners that preparing for disaster is essential. The devastation left by Hurricane Harvey is a good reminder to small business owners that preparing for disaster is essential. Catastrophic hurricanes claim close to 40 percent of small businesses, according to FEMA. It can take years for even the most prosperous businesses to recover. Most Mom-and-Pop operations running on the edge never reopen. According to a 2016 study by Harvard Business Review, small and young businesses, already taking big financial risks, are notably unprepared for a disaster such as a hurricane. The study focused on small and young business recovery one year after Hurricane Sandy in 2012. Among its findings:

* Many firms were uninsured. Nearly one-third of companies affected by Sandy had no insurance of any kind. Of firms less than five years old, about 60 percent were uninsured. Those that were insured found that their insurance covered none of their losses.

* Businesses increased their debt load when they could. More businesses applied for credit after Sandy than received insurance payments. * Credit was often constrained. Firms unprepared for disaster found that their interest rates went up after Sandy. Smaller firms were unable to secure credit because they did not meet the requirements, according to an informal survey by the New York Daily News.

* Community banks reduced lending. After Sandy, so many households and businesses were affected at once that small banks found loan defaults depleted capital. They were unable to lend. The study concluded that risk analysis had to be made a strategic priority.

September is National Preparedness Month

Posted on September 8, 2017August 10, 2017 by Victor Varma

A few easy steps can prepare for disaster
No part of the country is immune to natural or man-made disasters.

During September, the Department of Homeland Security joins with national, state, and local agencies to encourage Americans to prepare their homes for disasters of all kinds.

According to the Federal Emergency Management Agency (FEMA), engaging citizens in disaster preparedness is a critical first step in effective response and recovery efforts.

In other words, if you know what to do when a disaster is predicted, what to do when it occurs, and what to do afterward, you will be in a better position to save yourself and your home before help arrives.

While there are obvious differences in preparing for a hurricane and preparing for a forest fire, there are similarities in preparedness for all types of disasters. You should know where you will go to escape, what your mode of transportation will be, and when you should leave. (It’s never a good idea to let your car be almost out of gas.)

Assemble important documents to take with you including copies of insurance policies, identification, and bank account numbers. Use a waterproof container and include some cash.

It may not be necessary to leave your home. Do what you can in advance of a storm or earthquake to make it safer. Remember the basics of survival: water, food, clean air, and warmth.

Consider the amount of water and non-perishable food your family will need to stay in place without power for at least three or four days. Always have extra batteries for portable radios. Also have a backup battery for cellphones.

Drivers of all ages can increase their comfort, safety

Posted on August 30, 2017July 19, 2017 by Victor Varma

All vehicle drivers should check this advice from the National Highway Traffic Safety Administration. Older drivers particularly should check it out.

* Visibility: Be sure your seat is adjusted correctly. Drivers should be able to see at least 10 feet in front of the vehicle. Headlights should be aimed at the roadway. A mechanic can determine if they are aimed and aligned right.

* Check with an ophthalmologist to be sure your eyeglasses are correct.

* If your night vision is less than it once was, drive only during the day. Arrange your activities so you are not caught outside in the dark. You still have your independence, but remember: safety first.

* Ease of entry. When you are having trouble getting in and out of a car with low seats, consider buying a minivan or SUV, which have higher seats. People of all ages should consider this.

* Ease of driving. Almost all cars have power steering today, which takes much less strength to guide the car. An automatic transmission is easier to drive than a stick shift, even if the stick shift is thought to be more sporty.

Many people feel that small cars are easier to drive. If your big car no longer seems comfortable, a smaller car might be right for you.

* Check your medications. Today, the average person takes several, some of which can produce drowsiness, dizziness or nervousness. If you think a medication has one of these effects, ask your doctor for an alternative medicine

ADHD teens and car accidents

Posted on August 25, 2017July 19, 2017 by Victor Varma

Teens with attention-deficit/hyperactivity disorder(ADHD) are more likely to have a car accident, according to a new study.

According to Allison Curry, director of epidemiology and biostatistics at the Center for Injury Research and Prevention at Children’s Hospital of Philadelphia, ADHD teens are less likely to get a license after they become eligible and more likely to have an accident.

Curry’s study compared New Jersey health records to car accidents. Of the 2,500 teens with ADHD, nearly 43 percent had a car crash. About 36 percent of teens without ADHD had a crash, the study found.

Only 12 percent of ADHD teens had been prescribed medication in the month before driving.

The study was reported in the journal JAMA Pediatrics.