Allianz Life Insurance Company released a June 2010 survey of 3,257 people to find out what scared people the most: running out of money in old age or death itself. Quite surprisingly, the results came back showing 61% of Americans between 44 and 75 fear depleting their assets over the inevitability of death. Nearly all respondents (92%) believe this fear of outliving our savings stems from the crisis facing the  retirement system in the United States.

According to the study, those who were relying on employee pensions were less concerned about their retirement future than those whose personal savings were in the bank or wrapped up in 401K plans. Since 57% of those questioned saw a major dip in their net worth because of the recent recession, results also confirmed that some 47% of respondents have found a way to lower their daily spending and 11% have told their children to expect less financial support. If you would like further information about how you and your family can manage your assets please contact our California private fiduciaries and trustees.

Provided by Craig Curreri, Coldwell Banker Residential

Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

The Homebuyer Assistance and Improvement Act of 2010, signed by the President, extended the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.

The IRS reminds taxpayers that special filing and documentation requirements apply to anyone claiming the homebuyer credit. To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties’ names and signatures if required by local law, the property address, the purchase price, and the date of the contract.

Besides filling out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, all eligible homebuyers must also include with their return one of the following documents:

• A copy of the settlement statement showing all parties’ names and signatures if required by local law, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
• For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

Besides providing a tax benefit to first-time homebuyers and purchasers who haven’t owned homes in recent years, the law allows a long-time resident of the same main home to claim the credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. Homebuyers claiming this credit can avoid refund delays by attaching documentation covering the five-consecutive-year period:

• Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

There are three options for claiming the credit on a qualifying 2010 purchase:

• If a 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. Though these returns cannot be filed electronically, taxpayers can still use IRS Free File to prepare their return. The returns must be printed out and sent to the IRS, along with all required documentation. The IRS urges taxpayers claiming refunds to choose direct deposit.
• If a 2009 return has already been filed, claim it on an amended return using Form 1040X.
• Whether or not a 2009 return has been filed, wait until next year and claim it on a 2010 Form 1040.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on the First-Time Homebuyer Credit page on IRS.gov. You can also contact our qualified California Private Fiduciaries to discuss your real estate options.

Mrs. Hazel Soares is 94 years old and was among the proud 500 undergraduates to pick up their diplomas at the Mills College commencement this past Saturday. She is believed to be the world’s second oldest person to graduate from college. Congratulations class of 2010!

Check out the video here.

Best predictor is “Months of Supply” of inventory

Provided by Craig Curreri, Broker Associate/REALTOR, Coldwell Banker Residential

There’s no way to tell exactly when the bottom of the real estate market will be in your area. I’ve been analyzing the data for years and have seen numerous ways to predict what will happen. The truth is that nobody has a crystal ball. The best predictor that I have found is “months of supply”. Here’s how it works…

Assume that there are 96 houses on the market currently in a specific price range within your area. Last month 12 of these houses sold. If no new listings came on the market, it would take eight months (96 listings divided by 12 sales per month) for the entire current inventory to sell.

As a rule of thumb, if there are four months or less of inventory on the market, you are in what is known as a seller’s market. A seller’s market is one where the demand is greater than the supply. The result is upward pressure on the prices. The fewer months of inventory on the market, the greater the potential for price appreciation.

If there are five or six months of inventory, the market may be transitioning or flat. This means prices are generally stable and there is a good balance between the number of buyer and sellers.

If there are more than six months of inventory, you are in a buyer’s market where there may be downward pressure on home prices. The more months of inventory on the real estate market, the steeper the rate of potential price decline.

To determine the best time to buy, check the “Months of Supply” factor to determine if the amount of inventory in your price range is increasing, staying steady or decreasing. Also remember that prices lag behind inventory changes. For example, if a market is currently seeing big drops in the amount of inventory on the market. Nevertheless, the property values are still decreasing. As the excess inventory is absorbed, prices will stabilize. This is the time that most sophisticated real estate investors like to buy — when prices are still falling and the inventory is beginning to shrink.

The $250 million dollar advances and other payments for a March 2010 deal between the Michael Jackson Estate and Sony Records is just the icing on a cake that will delve through perpetual layers of sky-high royalty rates, licensing arrangements for films and television, and 10 recordings through 2017.

The deal comes on the tails of money-making strategies by estate executors for celebrities such as Elvis Presley and the Beatles who have reissued and reused old albums in new ways, generating major revenues across the entertainment board. Since Michael’s death in August of 2009, 31 million copies of his music have been sold worldwide and last year alone Jackson was the biggest-selling artist in the United States.