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How do we move on from coronavirus and get back to work?

Posted on May 1, 2020April 7, 2020 by Victor Varma

Today we know every member of the workforce is extremely valuable because when we went home in March, everything fell apart.

The stock market (and our retirement savings), our incomes, companies, and a good slice of our dreams, at least in the short term. Not to mention our friends and family who suffered with the virus that has been the top of our minds.

But now that we see the end of the virus in sight, what do we do?

People have different ideas

Harvard Business Review recommends the following:

Test every worker — Open the parking lots and make sure every person is well.
Certify patients as ready to work (and not shedding virus.)
Employers, retailers, restaurants, even friends and neighbors insist on verification that each person is virus free. Everyone maintains social distancing.
States would optimize the plan.

Meanwhile, the Imperial College of London says stringent controls will be required to keep people safe.

They suggest: Impose social distancing every time admissions to intensive care units spike. Relax when they fall.

Their advice is to do this until a vaccine is discovered, possibly 18 months. So schools would close and social distancing practiced in two month blocks, with one month off.

Meanwhile, until a vaccine is available, everyone mostly stays in quarantine, minimizing social contact.

Under this model, we just accept that restaurants, cafes, sports, gyms, theaters, malls cruises, and airlines basically shut down.

A dour existence in which we live the pandemic daily?

Not everyone is so downbeat.

Most observers think that mass testing is really the main requirement for getting back to work and a social life.

In China, traffic jams and smog are back and sales of housing and cars are ticking upward, according to Foreign Policy.

One problem in China that is slowing a return to growth: People are not spending money, especially on big ticket items. Maybe everyone, everywhere is saving an emergency fund.

3 Reasons You Need Renter’s Insurance

Posted on April 29, 2020April 29, 2020 by agentinsure

As a renter in Cypress, TX, you’re not responsible for protecting your dwelling against damage or loss due to a catastrophe. You are, however, responsible for protecting your belongings and safeguarding your assets against liability claims due to accidents that may occur on your property. Renter’s insurance from InsureUS can provide this protection and more. Here are a few good reasons to purchase a renter’s insurance policy.

Protection for Valuables

Like most people, you’ve probably accrued quite a few items over the years, i.e. designer clothes, sports gear, electronics, etc. If these goods were stolen or destroyed by fire, would you have the funds to replace them out of pocket? Renter’s property insurance protects your goods against theft, damage, or total loss from a major disaster. Actual cash value coverage covers the cost of your goods, minus depreciation. Replacement cost coverage provides you with the funds to replace your goods outright, after subtracting your deductible. Renter’s property insurance in Cypress, TX is an affordable, practical way to protect your valuables.

Protection Against Accidents

Renter’s liability insurance is designed to protect you against accidents on your rental property. If a guest slips in your driveway or falls down your stairs after one too many drinks, you can be held responsible for paying his or her medical costs. Liability insurance covers the cost of accidental injuries in your rental home so you don’t suffer financial loss. With liability coverage, you can host festive occasions with confidence knowing you’re protected against mishaps on your property.

Compensation for Living Expenses

If your rental home is damaged by fire or gets waterlogged in a storm, you may have to move out temporarily until repairs are made. Additional living expenses insurance helps cover your living expenses elsewhere to include hotel, food, transport, etc. until you can move back home. To quality renter’s coverage at reasonable costs, contact InsureUS today.

Does a 15-year mortgage cost twice as much per month as a 30-year loan?

Posted on April 24, 2020March 10, 2020 by Victor Varma

Paying a loan in half the time does NOT mean making double payments. In fact, many homeowners are surprised at how little they need to pay on a shorter length loan.
For decades, the 30-year mortgage was the standard when it came to financing a home purchase. But, in recent years, the 15-year, fixed-rate mortgage has become popular for a couple of reasons.
One advantage of the 15-year fixed is that a shorter term can mean lower rates. Today’s interest rates are historically low at around 3.9% to 4.5%, so they aren’t the make-or-break issue they were, say, in the 1980s when the interest rate could easily top 12%. But interest rates count.
Another advantage isn’t as easy to see. On a 30-year $100,000 loan financed at 3.9%, the payment would be a very affordable $473. On a 15-year loan, the payment rises to $736, still likely affordable.
So, why not just take the lower payment for 30 years? Because nestled within that lower payment, is a big stack of money. On that $100,000 loan over 30 years, you pay nearly $70,000 in interest. That’s real money. On the 15-year note, you pay less than half of that: about $32,000.
The question for the buyer is whether to shop around for a lower-priced property overall (in order to make the 15-year numbers work), or buy something more expensive with features that make the 30-year mortgage more attractive.

Millennial buyers want the “goods” delivered!

Posted on April 17, 2020March 10, 2020 by Victor Varma

Millennials are buying homes, and it’s probably fair to say, they would like that deal delivered.
Those people born between 1980 and 1999, made up the largest share of home buyers last year (37 percent), according to data from the National Association of Realtors. Of those, 86 percent of younger millennials and 52 percent of older millennials were first-time homebuyers.
Millennials want different things from previous generations. While previous generations might have wanted to get away from the city, millennials are just as likely to want to be in it. So, if the city has spread out toward your once-suburban home, don’t be afraid to emphasize the location. Millennials want short commutes. They don’t like lines. They want everything delivered and that includes all the services of the city from groceries to fine dining or even fast food. They want lots of choices in restaurants and bars, and nearby entertainment.
According to the National Retail Federation, millennials are in a hurry. Millennial buyers don’t house shop casually. They are internet savvy and accustomed to doing research online. More than 80 percent of millennials look for a home on a mobile device.
Millennials are less likely to care about square footage than other generations. They prefer home features: Garages that double as recreation rooms, designer laundry rooms, and walk-in pantries that hold food, wine, and appliances.

Refunds confuse taxpayers, survey finds

Posted on April 10, 2020March 10, 2020 by Victor Varma

Nearly half (46%) of taxpayers don’t know a refund comes for overpaying taxes to the federal government.
That is one finding of a survey of taxpayers by Credit Karma.
About 70% of Americans typically expect to receive a refund check each year, and many are unsure about the origins of the money.
While 46% knew their tax refund money comes from their paychecks, an equal percentage thought the money was given to them by the government.
Forty percent knew that getting a tax refund means they overpaid income taxes.
About 11 percent knew it meant they were essentially giving the government an interest-free loan.
More than half of respondents (51 percent) did not know they could determine whether they get a refund each year by adjusting their withholding amounts.
More than half said they would rather get a tax refund than consistently have more money in their paychecks throughout the year.
Only 34% said they would prefer to have proper withholding.
According to data from the IRS, the average refund amount as of February 7 was $1,952–up 0.2 % (or $3)–when compared with 2019. The number of refunds issued was down 4.8%, as the tax agency paid 4.6% less cash.

Coronavirus and investments: Don’t worry, be happy

Posted on April 3, 2020March 10, 2020 by Victor Varma

So the stock market tanked in historic drops in February on news of the coronavirus Covid-19. It also recovered in an historic one-day recovery.
Dizzy yet?
Investment experts at Market Watch say ignore the headlines.
The market will go up and down during the virus crisis, but no experts think it will stay down.

Long-term investors need not worry
Those with a 401(K) or IRA are probably still doing well compared to the same time last year or even the year before. If you have some time before retirement, take a deep breath. You made a lot of money in the last three years, and you are probably still ahead.

Don’t let bad news make you sell good stocks
Headline risk. That’s what stock advisers call short-term bad news that panics some investors into selling.
Don’t panic.
Apple, for example, was selling for around $146 in 2018 but soared to more than $330 before the virus crisis. During the crisis, it dipped to around $220. But, even though in the short run, sales will be slower and the supply chains crazy, it’s still Apple. Still a great company to own.

Opportunities arise
Plus, in the meantime, as stock prices sink, buying opportunities rise. Buy the bargain. A short-term crisis offers lots of buying opportunities.
One caution from Market Watch: Don’t try to guess when the market will be lowest. No one can. Buy when the bargain seems good.
It might be time to look at your portfolio and consider rebalancing your ratio of stocks to bonds, according to Market Watch.

Getting Ready For Spring? Your Motorcycle Checklist

Posted on March 31, 2020March 30, 2020 by agentinsure

Getting Ready For Spring? Your Motorcycle Checklist

Rev your engine and get ready to feel the cool breeze in your hair as you fly down the freeway – spring is almost here! It’s time to make sure you have your motorcycle ready to take you on adventures throughout the warmer months. Use this checklist to ensure that you and your bike are ready to roll. At InsureUS, serving Cypress, TX, we’re here to help you make sure you stay safe on your bike this summer.

Stop in to see a motorcycle mechanic. While you know your bike inside and out, it’s a good idea to have a mechanic do a quick tune-up to make sure everything is in proper working order.
Get planning. One of the best things about having a motorcycle is the ability to fly wherever the wind takes you, but it’s also fun to have a few scheduled summer trips to look forward to.
Check your emergency kit. Do you have working flares, a poncho, an emergency blanket, and water stowed away, just in case you break down? This is the time to make sure your emergency kit is up to date and ready for summer.

Call InsureUS, Serving Cypress, TX

If you’re ready to make sure your motorcycle insurance policy is up to par to keep you protected this summer, we’re here to help. Reach out to us at InsureUS, serving Cypress, TX, today to learn more about how we can keep you and your motorcycle safe, so you can rest assured that you’re covered as you embrace the open road this summer.

FIRE movement promotes extreme savings, early retirement

Posted on March 27, 2020February 11, 2020 by Victor Varma

A relatively new financial movement aims at financial independence and early retirement, sometimes extremely early retirement.
And that’s the name of the movement: Financial Independence; Retire Early.
Adherents say people can retire in their 40s or even 30s if they practice extreme saving and investing.
The key idea is to enlarge the gap between necessary expenses and income. The money in the gap is what you invest.
As a practical matter that means closely tracking expenses, eliminating anything that isn’t necessary. Make sure your living arrangements are as inexpensive as possible. Eliminate all debt. Cut expenses to the extreme. Then, enlarge the gap by side jobs or part-time jobs to create a big monthly investment number.
FIRE people try to make sure they max out 401K and retirement programs, while saving extra on the side. They intend to retire before they can withdraw funds at age 59 and a half. They also have to make enough money to buy private health insurance.
FIRE retirees actually don’t think of retirement as a way to stop work. They think of it as a way to work the way they want, without worrying about money.
Semi-anonymous blogger Roman, founder of TenFactorialRocks.com, says this can even be done with children. While the USDA says it costs $11,000 to $12,000 per year to raise a child, Roman says it costs more like $4,200 to $7,000 a year, depending on day care costs. Roman writes, “Kids want your time and attention more than expensive gifts, lavish vacations, overpriced tutors and royal treatment summer camps.”
On the other hand, Lisa Harrison of the Mad Money Monster blog, rejected the FIRE movement in favor of simple living. When trying FIRE, she and her husband cut out every single extra expense, from coffee dates to dinners, and they found that, after two years, their savings were up but their happiness was down. They decided to simply live in a frugal manner, saving money regularly, keeping expenses down, but going on dates and buying pizza. “A feeling of relief washed over me,” she writes.

Mortgage rules for condo buyers

Posted on March 20, 2020February 11, 2020 by Victor Varma

No, for the buyer, the same rules that apply to any mortgage apply to a condo buyer. Keep in mind that in calculating your debt-to-income ratio for the loan, lenders will count your condominium fees as part of your total monthly expenses.
A condo mortgage is different because the building itself has to qualify for the loan.
Generally, lenders won’t make a loan on a condominium that is in poor financial shape or poorly maintained. It has to be a properly run residential building.
The lender looks at the condo association records to make sure it is sufficiently insured, isn’t being sued, and residents are paying their dues (no more than a 15% delinquency).
Lenders also want to make sure the building is residential, with at least 50% owner-occupancy. They don’t want to see stores or hotel rooms. They don’t want to see condo units sold as time shares.
Finally, at least 90% of the units have to be occupied.
If the condominium project is established and known to meet guidelines, and you are a credit worthy borrower, you will probably have little difficulty getting a conventional loan.
You might want to do a little extra research, however. Remember that when you buy a condo, you are buying into the Homeowners Association and you are sacrificing some privacy for convenience. It’s a good idea to take a look at the minutes from the HOA meetings to see the sorts of issues being discussed.
When the building qualifies and you find the property suitable, financing a condo should be much the same as a conventional home.

Statistics about Americans

Posted on March 13, 2020February 11, 2020 by Victor Varma

58% of Americans have less than $1,000 in savings: GOBankingRates
40% of Americans would struggle to come up with $400 for an unexpected bill: MetLife
American debt in 2018/2019 averaged $136,365, and totaled $13.95 trillion: NerdWallet
Americans have an average of $6,849 in credit card debt: NerdWallet
The Median (half above, half below) household income for Americans in 2018 was $63,179: US Census
12.8 million children lived in poverty in 2017, which was 17.5%. That was a decrease from 2016 when 18% lived in poverty: US Census
45% of Americans believe in the existence of ghosts and demons: YouGov
40% of Americans don’t wash their hands after going to the bathroom at home.
Super Mario Brothers is the most popular and the most famous video game: YouGov
The most popular sandwich in America is grilled cheese (79% say it is their favorite) followed by grilled chicken tied with turkey (75%). Roast beef comes in next at 71%.