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Heritage News
Inside This Issue:
Hayward Street Party and Galaxy Tablet 2 drawing

Push to do 50 free Financial Plans in the month of August

The Housing Market Gets More Buyer Friendly

How a 401(k) Actually works

Spotlight Events: Outdoor movies

Luxury Real Estate and Income Properties
Special Points of Interest
• Our website can be found at heritagefundrealty.com
 
• Upcoming Fun Events

· Waterfront Flicks Jack London Square AUG 22nd at 7:30 pm

· Lake Chabot Hike, San Leandro

 
• If you have a request or an idea for a topic for the newsletter or blog, please send an email to:                             info@heritagefundrealty.com
 
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Hayward Street Party and Galaxy Tablet 2 drawing
Yesterday the Hayward Chamber of Commerce organized a Hayward Street Party. This was the last street party of the summer and it was one of the best. This was a fun event with music, food, and many local businesses. We thank everyone who came out to join us as we had a great time. We were able to sign up many people for our newsletter and for free financial planning appointments. Each person that is signed up for this newsletter is automatically entered to win a Galaxy Tablet 2. 

The drawing will be held after August 31st and the winner will be announced in the newsletter.

Tell your friends they still have a little less than a month to sign up for the newsletter and get an entry into the drawing.


Push to do 50 free Financial Plans in the month of August
Hello everyone,
 
Heritage Fund Insurance Services has a goal of scheduling 50 Financial plans in the month of August. We would like nothing more than to work with our community in building wealth and financial independence. 

Our financial planning sessions are completely free of charge and can be scheduled at the clients home or at our Hayward office.

We believe that everyone, no matter where they currently are financially, could benefit from talking to one of our trained professionals. We believe in it so much that we are offering a free $10 gift card to anybody who schedules a appointment before August 31, 2013. Just tell our associate what type of gift card you would like, and we will bring it to the appointment. This is just our way of saying thank you for giving us 30 minutes of your time.

If you are interested in scheduling a financial plan appointment, contact us at info@heritagefundrealty.com or call Kevin Benson,
VP of Insurance services, at 510-604-1525
 
The Housing Market Gets More Buyer Friendly
Kerry Fisher lost at least eight homes in the past four months to faster and more cash-rich buyers. But recently an agent called her, asking if she was still interested in a home she thought she'd lost. She expects to close on the $195,000 condominium later this month.
 
"That was different," says the 41-year-old escrow assistant, who lives in Orange County, Calif., one of the nation's hottest real estate markets the past year. Her experience points to a slightly kinder housing market for buyers in parts of the U.S., especially the West, as more homes come on the market, asking prices show signs of slowing and higher interest rates keep more shoppers at home.
 
"The market has become significantly more balanced," says Glenn Kelman, CEO of real estate brokerage Redfin. "There just isn't the madness we saw before."

Through June this year, U.S. home values gained 10%, CoreLogic says. That's the fastest pace since 1977, but there are signs that may not last much longer. Nationwide, asking prices — a leading indicator of sale prices — were up 3.3%, on a seasonally adjusted basis, in May, June and July from the previous three months, according to real estate website Trulia.
That increase is robust, but it's less than the 4.2% jump that occurred from the three months ended in January vs. the three months ended in April, Trulia says.
 
In some of the hottest real estate markets, including Las Vegas, San Francisco and Portland, Ore., increases in asking prices have narrowed even more in recent months, Trulia says.
Pending home sales — which typically result in final sales a month or two later — also dipped in June, the National Association of Realtors says. Rising interest rates started to weigh on buyers.

The market's pace is "a little less frenzied," says NAR economist Danielle Hale.
 
FEWER BIDDING WARS

Strong competition for homes has helped drive prices higher. But bidding wars appear to be ebbing as well.
In July, 63% of buyers' offers on Redfin faced competition in 22 markets coast to coast, its data show. That's down from 68% in June and the peak of 76% in March.

Some markets saw even bigger monthly drops. Boston fell to 65% of offers in July from 74% in June. San Francisco eased to almost 80% of offers from 90%, Redfin says.

Some of the slowdown is likely seasonal. People go on vacation in July. More inventory also plays a role. Nationwide, the seasonally adjusted inventory of homes for sale was up 6% in June from January, NAR data show.

"There's been a surge of inventory," says Robin Kingsbury, agent with Red Oak Realty in the San Francisco Bay Area. "But that means instead of getting 15 offers, you'll get five to eight."
Nationwide, the for-sale home inventory was down 5.2% in July from a year ago. That was an improvement from January when it was down 16% year over year, Realtor.com says.

From June, inventory was up 1.4% in July. Some markets, especially in the West, posted bigger monthly gains. San Diego had a 13% jump. Los Angeles and Orange County, where Fisher was shopping, saw inventories rise 8%. Orlando was up 12%.

"Larger inventories, especially in the hotter markets that experienced rapid price increases in the spring, are expanding buyers' choices and helping to moderate price increases," says Steve Berkowitz, CEO of Move, which operates Realtor.com.
 
SLOWING GROWTH IN HOME VALUES

Growth in median home values in some markets has been slowing, says Zillow economist Svenja Gudell.
In Miami, for instance, median home values increased 0.7% in May from April and 0.6% in June from May. But in the previous five months, values rose at least 1% month to month, Zillow data show.

Values in San Jose, Calif., rose about 1% month to month in May and June. They increased at a 2% plus clip in the three prior months, Zillow says.
Slowing price gains wouldn't be a bad thing, says John Burns, CEO of John Burns Real Estate Consulting.

Rapid appreciation encourages flipping — when homes are bought and resold in short intervals for fast profits — and pushes home prices into unaffordable territory as wage gains lag.

If prices keep rising as fast as they have been, "It will create a bubble," Burns says. Zillow's panel of 106 economists and real estate experts predicts home values will end this year up 6.7%. Appreciation will slow to 4.4% next year, the panel says.
Kelman even expects prices to flatten or decline in some markets this fall as inventories increase.

"It isn't just going to be up, up and up," he says.
 
Article from: http://t.co/XQZBlOdwtk
Article by: Julie Schmit
How a 401(k) Actually works

A 401(k) plan is a retirement plan offered to you through your employer. 401(k)s are the most common kind of defined contribution retirement plan.

Here's how it works: You decide how much you want to contribute, and your employer puts the money into your individual account on your behalf. The investment happens through payroll deduction: You decide what percentage of your salary you'd like to contribute and, from then on, that amount comes straight out of your paycheck and goes into your account automatically, without you having to lift a finger. Your paycheck will be smaller as a result - though not as small as you might think, thanks to the tax benefits involved.

Your company serves as the "plan sponsor" for the 401(k), but it doesn't have anything to do with investing the money. Instead, the plan sponsor hires another company to administer the plan and its investments. The plan administrator may be a mutual fund company (such as Fidelity, Vanguard or T. Rowe Price), a brokerage firm (such as Schwab or Merrill Lynch) or even an insurance company (such as Prudential or MetLife).

Your employer sends your payroll deductions directly to the company managing your plan. But you are responsible for deciding how to invest your money among the options offered by your plan. Typically, a 401(k) offers five or more mutual funds that invest in various sectors of the financial markets. Some 401(k) plans also offer shares of your employer's stock.

HOW MUCH CAN I CONTRIBUTE TO MY 401K?

Given the plans' valuable tax breaks, it makes sense to invest the maximum if you can. There are annual limits. In 2012, if you are under 50 years old, you can contribute a maximum of $17,000. If you're 50 or older, you can make an additional catch-up contribution of as much as $5,500, for a total of up to $22,500.

Those contribution limits change annually to track inflation. The reason: Inflation will gradually reduce the value of a dollar, meaning you will need to contribute more dollars to have the same purchasing power.

Try to contribute at least enough to qualify for your company's maximum matching contribution. Research shows that about one-third of 401(k) participants don't contribute enough to qualify for the maximum matching contribution from their employer. Your Human Resources department can tell you how much you need to contribute in order to get the greatest match. Do it!

HOW DOES THE MONEY GET INVESTED?

That part is up to you. You have to choose among the investment choices - typically mutual funds - that the plan offers. While your company may give you information about the funds, you'll need to figure out which ones are best for you. Since you're bearing all the risk, it's important that you choose wisely.

When investing for a long-term goal like retirement, you typically want to invest mostly in stocks, which have the best chance to generate returns that outpace inflation. Adding some bonds or cash to your mix can help reduce the volatility of your overall portfolio. See the Investing section for more on investment strategies. You can also use our asset allocator and retirement planner calculators to determine the best mix of stocks, bonds and cash for your retirement money.

WHAT IF I NEED THE MONEY BEFORE I RETIRE?

Typically you need to keep the money in the plan until you reach age 59 ½. Withdraw any of it before then and you'll be hit with a bruising 10% early withdrawal penalty, on top of the regular income tax that is due on withdrawals. Bad idea.

There are exceptions, however. The IRS waives the 10% penalty for certain "hardship" withdrawals. Each plan's rules vary (check yours to be sure), but you may be able take money out of your retirement account penalty-free before age 59 ½ if you use it for:

  • Purchasing your first home
  • Expenses after the onset of a sudden disability
  • Higher education expenses (like college for your kids)
  • Payments you make to prevent eviction or foreclosure.

Don't count on it, though. This money is locked up until retirement for a very good reason: If you spend it now, you risk jeopardizing your financial security when you're older.

If you can't get the money anywhere else, your best option is probably a loan. Many 401(k) plans allow you to borrow against the amount in your account. You must repay the money to your account within a set period - usually a few years - or the loan is treated as a withdrawal, meaning you'll owe taxes and a 10% penalty on it.

There are three main drawbacks to taking out a loan. First, you reduce the money you have growing for your retirement years. Second, you have to pay interest on the amount you borrow - typically the prime rate plus one percentage point - though you do pay the interest to yourself. Third, you must repay any outstanding loan within a few months if you are laid off or decide to change jobs.


WHAT ARE THE CONS OF INVESTING IN A 401K?

1. Your money is invested in the stock market, so you can actually LOSE money, and as you approach retirement, you take on extra risk, and you may not have time to make up for stock market losses.

2. The 59 & 1/2 rule: which states that if you take your money out before 59.5, you pay a 10% penalty on top of the state and federal taxes.

3. The 70 & 1/2 rule: Which states that you If you don’t take your money out at a pre-determined rate set up by the IRS, then they’re going to take 50% of what you were supposed to pull out. 
 
They force you to pull it out whether you want to or not because they haven’t taxed you for all these years.
 

WHAT ARE SOME ADDITIONAL OPTIONS FOR MY RETIREMENT FUNDS?

There are alternatives to 401k. Some of those options are:

1. Traditional IRA

2. Annuities

3. Indexed Universal Life Insurance

4. Real Estate Investing

These options should be considered only after you have reviewed your company's retirement plan.


At Heritage Fund we can help you answer these questions and any other questions you may have. Contact us at info@heritagefundrealty.com or 510-269-7406 to speak about your retirement or to schedule a meeting.

 
Interpreted from :
http://money.cnn.com/retirement/guide/401k_401kplans.moneymag/index2.htm?iid=EL

 
Article by CNN Money
 
Spotlight Events: Outdoor Movies

WATERFRONT FLICKS

Hey Team & community, our office will be doing a series of outdoor events this summer.
Next week we will be attending Waterfront Flicks in Jack London Square, it's absolutely free, and will be held on the market Lawn at sundown. This week they will be showing "The Goonies""

The Address to Jack London Square is: 466 Water St  Oakland, CA 94607

 
Luxury Real Estate & Income Properties
Gorgeous Doug Dahlin designed equestrian estate. 8734 sf home on 47 Acres. 5 Bedroom 5 1/2 bath; infinity pool; 2 acre lake.


4 unit in the HOT lcation of West Oakland
$380,000 asking price

Down Payment = $76,000

Mortgage = $304,000 @ 7 %

Cash-Flow = $1124 monthly

Cash on Cash return = 17% 
 
For information on these properties or other cash flow investments, contact us at info@heritagefundrealty.com or 510-269-7406
Heritage Fund Realty and Investments is one of the Bay Area’s leaders in Real Estate, Financial Services, and Financial Education. We aim to not only grow the wealth of our clients, but to grow the knowledge of our clients and our community.
 
Our areas of products and services are:
Buying and selling Real Estate
Mortgages (Purchase, Refinance, Commercial)
Real Estate Investment
Property Management
Life Insurance
Financial Planning and Education
 
We know real estate, we know financial services, We know the markets, and we know the area. We are passionate about our community and our goal is to provide the best services available.
 
Copyright © 2013 Heritage Fund Realty and Investment, All rights reserved.


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