Should you really buy now???

I love this quick and simple write up from Zillow.  I here this all the time from clients and friends.  We are pushed into the allure of home ownership, when in reality it may not make sense for you.  Especially if you live in a hot market like Los Angeles.

The biggest take away... Remember you are not throwing away your money on rent!

Have a hangup about renting? Don't buy into these misconceptions.

Renting a home can often get a bad rap.

It’s true that some aspects of being a renter are less than glamorous. The quirks of renting can range from 1980s burgundy carpet to a neighbor who loves to practice the trombone every evening for three hours or a landlord who refuses to take down the Holly Hobbie wallpaper in the kitchen.

But it’s not all bad. In fact, the number of renters is on the rise, and the traditional mindset about renting is changing rapidly.

Here are three of the most common myths about renting that are ripe for debunking.

1. You’re throwing away your money

Many people say giving your rent check to a landlord each month is like taking your money and throwing it away. While you may not be gaining equity in a home when you rent, you are paying for somewhere to call home, which is not the same thing as throwing your money in a trash can.

And let’s not understate the value of not being responsible for household maintenance costs. Most rentals include upkeep and repair services, and some even include the cost of utilities.

More importantly, buying a home may not be a wise financial decision for you right now. Maybe you live in a very expensive housing market, or you’re unsure how long you’ll stay in your current location, or you don’t have quite enough saved for a down payment. Simply put, renting may be in your best financial interest.

To find out whether renting or buying is more financially viable for you, there are several tools available to help you make an informed decision.

2. You have no negotiating power

A common myth surrounding the landlord/tenant relationship assumes the landlord has all the power.

Contrary to popular belief, renters have a lot of negotiating power when they sign a lease, says Tracy Atkinson, director of global marketing and relations for Goodman Real Estate in Seattle.

“If you think you may be buying a house soon ask, ‘Do you have a mortgage clause?’ You can also ask about a job relocation clause. Simply ask, ‘Can you work with me?’ Each resident has the power to do that,” she advises.

The most important thing is to read the lease in its entirety to ensure you understand what you’re signing. If you see terms you want adjusted, don’t be afraid to ask.

3. It’s difficult to get out of a lease

Another common misconception about renting is that it’s hard to get out of a lease.

Though it’s not advisable to sign a long-term lease when you know there are some life changes up ahead, sometimes life throws us a curveball. Whether you have to relocate for a job or your roommate moves out and you need to downsize, sometimes it’s necessary to break your lease unexpectedly.

If you need to get out of a lease without having to pay the remainder of the lease term, one option is to sublet your place. Check with your landlord or property management company to ensure that subletting is allowed, and get everything in writing from both your landlord and the new tenant.

Another way to break your lease is to work with your property management company to find out if there are any available units in the same building, at a sister property, or even in another state if you are relocating. Talking with your property manager and explaining your situation will always help you find the right solution for you, Atkinson says.

Of course, there may be fees associated with breaking your lease no matter how you choose to go about it, so be prepared for that.

Spin class etiquette... something to remember.

I found this piece by Stacey Colino, and she hits it right on the head.  Entertaining and something to remember before your next class.

Enjoy!

In a perfect world, there’d be no need to discuss the basics of good behavior in an indoor cycling class. But unfortunately transgressions often happen in these intimate studios. Not only does bad behavior put the instructor in the awkward role of disciplinarian, but it also makes other riders feel uncomfortable, distracted, or worse. The truth is, every cyclist has as much of a right to enjoy his or her workout as you do.

So with that basic principle in mind, here are 10 commandments for what you should or shouldn’t do in an indoor cycling class.

Thou shalt not fight over a particular bike. If you have your sights set on a certain bike, get to the studio early and claim it or reserve it ahead of time if you can. If it’s already taken, find another one to ride. Remember: It’s not your bike; it belongs to the studio so other people have as much of a right to claim it for a class as you do.

Thou shalt check a bad attitude at the door. Cyclists with bad attitudes can be like energy vampires, sucking the vitality and enthusiasm out of the studio and spoiling the class for other people. If you know you don’t like the teacher or music in a particular class, don’t go. If you discover this partway through the ride, aim for an Emmy-worthy acting performance. Fake it, in other words!

Thou shalt not be disruptive if you come late or leave early. It’s no big deal if you’re a bit tardy or you need to slip out before the cool-down but do take or leave your place quietly.

It’s a matter of courtesy to your fellow riders. (But keep in mind: The warm-up and cool-downs are for your benefit.)

Thou shalt not bring excess baggage into the studio. In most cycling studios, the space between bikes is tight and the room is dark. So if you cram a hefty duffle bag, a large coat, and other stuff next to your bike, other people could trip on it.

It’s a safety hazard, pure and simple. Put your stuff in a locker if possible; otherwise, place it against the studio’s front or outer wall, away from the bikes.

Thou shalt not chat nonstop with the rider next to you. An occasional comment or quip is fine but talking continuously to your neighbor or on a cell phone or texting during the class distracts other riders and interferes with the spirit of the class. If you need to use your cell phone during the class, leave the room to do so.

Thou shalt not criticize the instructor during the class. I have been a participant in classes where disgruntled riders have blurted out things like “This is not inspiring!” and “Stop talking so much!” Harsh comments like these just make everyone feel uncomfortable and they ruin the mood in the class; I once saw an instructor pushed to the brink of tears by mean-spirited participants. Just as you may not appreciate it when an instructor picks on you, if you have something that’s not nice to say, keep it to yourself until after the class; then, politely share your opinions with the instructor privately.

Thou shalt not ogle the rider in front of you. I know it’s tempting to admire the fit bodies around you but consider it a matter of personal space and privacy. Even though the room is often dark, people can sense when someone is staring at them when they’re riding. So keep your eyes on the instructor or check yourself out in the mirror.

Thou shalt not be a high-maintenance rider. Don’t pepper the instructor with questions throughout the class. It’s group exercise, which means it’s not just about you. If you’re new to indoor cycling, arrive early so you can ask questions about what to expect, how to perform the basic moves, and how to set up your bike properly. If you have questions after the class, feel free to ask the instructor then. During the class, limit your questions or requests so other riders can enjoy the experience, too.

Thou shalt not leave a mess behind. Please clean up after yourself. Don’t leave your empty water bottles on the floor or sweaty towels draped over the bike (and don’t come to the class if you’re really sick). Take your germs and your wreckage with you, and clean your bike with a disinfecting wipe after the ride. Imagine what a disaster the studio would be if every rider left a mess in his or her wake!

Thou shalt not be inappropriate with the instructor. Feel free to compliment an instructor’s physical fitness level or personal style but keep the comments in the proper zone. Don't ask the instructor to wear shoulder-baring tank tops if she prefers t-shirts (this once happened to a friend of mine) or make wet t-shirt comments after class (ditto).

I once had a married man with grandchildren, a regular in one of my 6 a.m. classes, tell me that he really liked my rides, my music, and my coaching style. But “I want to see more of you in the class,” he said, gesturing from my head down to my feet. I asked what he meant. “You’re very attractive,” he said. “I’d like to see you flirt with the class while you’re teaching.” When I told my group exercise director, she was horrified. “That’s completely inappropriate!” she said. “You’re a fitness professional, not an entertainer!” Sure, indoor cycling can be fun and festive, but it’s about exercise first and foremost. It’s not about fulfilling an individual cyclist’s desire for a sexy encounter with an instructor. So please, don’t even go there!

Saving for Retirment... it's up to you.

I thought I would share this nice short piece on saving and retirement.  I have done this myself, and if you don't pay attention it's actually shocking how much you spend on the non-essentials.  At the end of the day your financial independence will be driven by your ability to save and manage your expenses, investing can only help so much.

How one couple saved $1 million in 4 years to retire by age 43

In 2013, "Mr. and Mrs. 1500" — the pseudonym of soon-to-be early retirees Carl and Mindy — decided to get serious about their savings goals.

"I was having this horrific day at work," 42-year-old computer programmer Carl told Farnoosh Torabi on an episode of her podcast. "I was 38 at the time, and I'm like, 'There's no way I can do this until I'm 62 or 65 or whatever age people normally retire at."

Inspired by the idea of retiring early, the husband-wife duo with two kids vowed to build a portfolio of $1 million and no debt by February 2017. This would allow them to retire in 1,500 days at the ripe age of 43.

They achieved the $1 million mark ahead of schedule — in April 2016 — and now aim to reach $1.12 million by February, at which point they'll officially retire.

The good news is, anyone can do the same — and you don't have to be an investment banker raking in millions. All it takes is "smart decisions along with intelligent saving and investing," they write on their blog. 

Here's a look at exactly how Carl and Mindy are making early retirement a reality:

The couple started by analyzing their spending habits. "My wife and I wrote all of our expenses in a book," Carl explains on their blog. "Every time we returned from shopping or paid a bill, we logged it."  

Based on their logs, they determined they could live on $24,000 a year. To be safe, they added a $6,000 cushion and bumped that estimate up to $30,000 a year.

Using the "4 percent rule" — the slightly controversial rule of thumb used to help you determine the amount you can withdraw from your retirement savings each year without running out— they came up with their magic number.

"Based on the 4% rule, I need about $800,000 to retire with no debt," Carl wrote on the blog in 2013. "However, I'd like very much to be able to help my children through college, so I'm going to bump the number up to $1,000,000."

They committed to putting $2,000 a month toward their investments, which stood at $570,000 when they started, in order to build their portfolio up to $1 million in 1,500 days. You can read more about their initial financial standing and calculations on their blog.

Once they settled on contributing at least $2,000 a month, the couple immediately looked for ways to cut their costs. It's a good starting point for anyone, they told Torabi. It's "something you can do immediately."

They also recommend recording each and every expense, which will allow you to see exactly how much money you're spending and where there's room to save.

"You'll be surprised," they say. "We started doing this and were like, 'Wow, we spent that much on groceries? What were we thinking?' After you do that, evaluate every one of those line items and see how you can cut those down."

Shortly after making the decision to retire early, the couple sold their 5,000-square-foot lake house in Wisconsin and bought a 1,400-square-foot fixer upper in Colorado. It meant a significantly smaller mortgage. Plus, "those extra 3,500-square-feet added absolutely nothing to my happiness," Carl adds.

They also note that their location in Colorado is a big part of the reason they're able to retire in their 40s with a million-dollar portfolio: "If you lived in San Francisco or Manhattan, I don't think you'd be able to do it, but we live in a very low-cost area in Colorado. … Life is pretty cheap here, and we can get by on about $2,000 a month."

Next, the couple focused on earning more. Carl's main side gig is blogging, but he also fixes up homes and writes smart phone apps. Mindy, who was previously a stay-at-home mom, landed her current job as a writer for a real estate investing website through their blog. They both plan to continue working on the side in retirement.

They also made smart investments, including buying the $176,000 fixer upper home that they estimate is now worth over $400,000. Another major investment vehicle for Carl and Mindy is the stock market. Although they don't recommend picking individual stocks — which is much riskier than investing in low-cost index funds — they did have success buying shares of Facebook (FB).

"I don't endorse it and it's not my new methodology, but I bought 2,000 shares at Facebook at about $30 a share and now it's like $120 a share," Carl told Torabi. "I'm an index-fund guy now."

Whether you choose to invest in real estate or the stock market, or neither, the point is that focusing on increasing earnings is just as important as saving. Increasing income isn't always as easy as cutting costs, but most people don't work more than 40 hours a week, they said on Torabi's podcast. They said you can drive for Uber or Lyft and rent out a spare room through Airbnb to increase your income.

"I learned that you don't need a lot of money," Mindy told Torabi. "My quality of life has not changed since we became laser-focused on cutting out our expenses. I don't need the cable TV. ... I don't need a super-expensive phone plan."

"I don't miss all this stuff because it didn't really add to my life," she said.

Central banks keep pumping... and it's not working.

Market is hitting all time highs, yet this is exactly why we operate with caution.  It's really ugly under the hood people.

Central banks around the world are now spending $200 billion a month on emergency economic stimulus measures, pumping this money into their economies by buying bonds. The current pace of purchases is higher than ever before, even during the depths of the financial crisis in 2009.

And yet, despite the extraordinary support of so-called quantitative easing (QE), the global economy is not in great shape. What was supposed to bolster economies temporarily during times of crisis has become a routine tool for policymakers, who long ago cut interest rates to zero (or below) but haven’t seen the pick-up in activity they would have hoped.

Alberto Gallo, a fund manager at Algebris Investments, says we are in a state of “QE infinity” with persistently low growth, low interest rates, and central bank policies that don’t fix things.

“They won’t ever say they’re out of ammunition, but central bankers are starting to look like naked emperors,” Gallo wrote in an article for the World Economic Forum.

The criticism central banks face for enacting these policies—that many argue increases inequality—is getting more heated. Meanwhile, governments are accused of not doing their part, leaving central bankers do all the heavy lifting.

The Bank of Japan and the European Central Bank are the biggest contributors to the current bond-buying spree, at about 10 trillion yen ($96 billion) and €80 billion ($88 billion) a month, respectively. The Bank of England said last week that it was getting back in the QE game, fearing the economic consequences of the Brexit vote. It will add £60 billion ($78 billion) to its stock of government bonds over the next six months, and is also buying £10 billion of corporate debt for good measure.

Over and over again, central bankers say that their stimulus measures only buy governments time to enact more durable reforms. But we shouldn’t expect a burst of fiscal stimulus from elected officials anytime soon, JPMorgan analysts warn in a recent research note. In fact, fiscal policy will act as a drag on growth into next year, they say. This was also the case between 2010 and 2015, when government policies to tighten spending dampened global GDP, working against the monetary stimulus provided by central banks revving their printing presses.

Jörg Krämer, chief economist at Commerzbank, says that the ECB’s bond-buying program has allowed governments to gloss over the root causes (pdf) of the region’s financial malaise, artificially boosting asset prices across the euro zone. Specifically, QE has pushed down yields on government bonds so nations can borrow for less than ever before, removing any sense of urgency about restructuring and reforms.

After years of QE, central banks already own much of their nations’ debt, a problem in itself. This week, just two days into the Bank of England’s latest round of bond buying, it ran into trouble after not getting enough offers from holders to sell the securities it was looking to purchase. This raises questions about the effectiveness of these policies, if central banks can no longer convince the market to give up their holdings even when offered above-market prices.

View Original Article Here

Saving Enough???

According to a study published by Vanguard, last year in 2015 the average 401(k) balance stood at $96,288.  That may sound like a lot until you realize that, in this same study, Vanguard found that pre-retirees – those between the ages of 55-64 – have average balances of just $177,805.  This amount would generate less than $8,000 a year in annual income for 30 years in retirement.

Make sure you are making the most of your company retirement plan.  Even a incremental increases can have a profound impact over time.

Time is your friend when it comes to retirement:

Contact us and let’s start an action plan today!

Click here to view the article on msn

Group Therapy – REBOOT

I am back in town and feeling refreshed after a quick trip to the Eastern Sierra back country. My good friend and I spent days living in the mountains free of work, family, kids and yes even my mobile, Facebook, twitter, LinkedIn and email. I found the break and relaxation the vacation gave my brain unbelievable. This may be a stretch, but it was almost like drugs for the mind. You take away all that societal stimulus, leave behind only the beauty of the outdoors and sounds of lapping water on the lakes edge, and you find yourself in a different world.

In the years I have provided financial and fitness advice, I have learned that some of the most important things you can do for you is to be a little bit selfish. In that, you deserve some time away to disconnect and reboot. All around you will benefit from this seemingly selfish act.

My body and mind feel rebooted, and I cannot wait to come back and share another great ride with all of you. You do not get the great outdoors with me in class, but you do get to disconnect. Come and ride tonight, where all we do is focus on the energy, the ride and good music.

Group Therapy – YMCA Spin

Time for another Group Therapy session at the CCYMCA.  This site and blog will serve my students and loyal fans as a resource for you to get access to the music you hear in class (see sound cloud page), and get updates about the class in general as well.

As it is my birthday today, I hope all of you can make it for a great cycling session tonight!  I just went through the Schwinn Indoor Cycling Certification class and am looking forward to enhancing our already awesome energy that we have.

Be ready to ride hard tonight!!!

Hello World!

Welcome all to my personal site.  My goal is to provide relevant information, and interesting information to all my friends, family, clients and students.

Healthy living is very much a lifestyle and can be interpreted in many ways.  I believe staying physically and mentally fit directly translates to being able to keep your financial house in order.

Those of you that know me, know I share a passion for helping the people around me make smart decisions with their finances, physical and mental well being.

As I get this off the ground feel free to post questions, comments and feedback.

Cheers!