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Financial Advisor in South Florida - preferably Miami area.

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Financial Advisor in South Florida - preferably Miami area.

Old 09-03-2015, 12:21 PM
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Default Financial Advisor in South Florida - preferably Miami area.

Hello to the THT brain trust. This is virgin territory for me, so please be gentle.

I'm keen to hear (via PM if preferred) your suggestions of individuals to speak to in this field.

The situation is that my elderly mother is preparing to vacate her home in South Florida for retirement in another location and it is falling to me to determine the best return on her assets for her to best enjoy her retirement.

While she does have some cash savings, her main asset is a paid off 3bed 2.5 bath town home, which is worth in the low $300k range. We need to determine if she would be better of return wise if it was rented long term (with a real estate company managing it) or if it was to be sold and the funds invested and managed professionally - and if we went that route, how and where would it be best invested.

Looking forward to all helpful and constructive contributions.

Cheers !
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Old 09-03-2015, 12:32 PM
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good luck op!
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Old 09-03-2015, 12:35 PM
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Does she have any retirement accounts? Is the house needed for cash flow purposes?
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Old 09-03-2015, 12:38 PM
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I hear great things about Meg Green & Associates.

Just try to get a fee-based advisor to help you- a commissioned advisor will likely want your Mom's assets liquid so they can shuffle them around and generate fees and commissions.
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Old 09-03-2015, 01:13 PM
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Based on your PM that she only has small cash reserves and will be in need of cash flow, I'd look hard at the local market for rentals. If the home is in an area of higher demand for rentals, that should generate the cash flow she's looking for. Just do your diligence with the management companies with regards to their history of getting rentals filled and their expenses.

I'm not sure I'd be selling the home and investing the money as again, she needs the cash flow from it. I believe you could purchase an annuity of some sort, but those notoriously come with very high fees.

Hopefully someone much smarter than I will be along to give you some additional advice.
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Old 09-03-2015, 01:23 PM
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How old is she? I will run an annuity quote for $300K and you can do a side by side of the monthly payout; annuity vs. house rental. Fee's are one time and not high, plain to write but sometimes they work in a particular situation.
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Old 09-03-2015, 01:27 PM
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Also look at the tax implications of selling. You don't want to trigger a taxable gain at this stage.
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Old 09-03-2015, 01:31 PM
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70 years old.

If I understand correctly, and please correct me if I don't, an annuity for the $300k would pay her a monthly amount until her death.

My questions are...(1) how much approximately is that amount ?
(2) what happens to the original $300k after her death ? - she's indicated a desire to leave that for her descendants.

Thanks to all who've responded and looking forward to more info on this daunting subject.
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Old 09-03-2015, 01:38 PM
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Originally Posted by Flying Bajan View Post
70 years old.

If I understand correctly, and please correct me if I don't, an annuity for the $300k would pay her a monthly amount until her death.

My questions are...(1) how much approximately is that amount ?
(2) what happens to the original $300k after her death ? - she's indicated a desire to leave that for her descendants.

Thanks to all who've responded and looking forward to more info on this daunting subject.
you better make sure you read the annuity's fine print and not take the insurance guys word for it.
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Old 09-03-2015, 01:41 PM
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[QUOTE=Flying Bajan;8217729]70 years old.

If I understand correctly, and please correct me if I don't, an annuity for the $300k would pay her a monthly amount until her death.

]

Period Certain or Lifetime benefits
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Old 09-03-2015, 01:44 PM
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[quote=BSpot;8217765]
Originally Posted by Flying Bajan View Post
70 years old.

If I understand correctly, and please correct me if I don't, an annuity for the $300k would pay her a monthly amount until her death.

]

Period Certain or Lifetime benefits
make sure to ask if there are riders like a return of principle, and make sure the illustration is showing how much is going to be left of that premium at certain ages. Because it sounds like she wants to leave money behind to heirs.
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Old 09-03-2015, 01:47 PM
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You should be able to do the math without a financial advisor ....

The rental nets X and the most safe investment would be a bond that pays Y ...

300k @ 2% = 6k annually

My guess is that the rental home may net around the same .....

but at least she can have the depreciation and borrow against it in a pinch ....

If you want I would be happy to put a value on the house ...
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Old 09-03-2015, 01:49 PM
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She does want to leave the $300k plus whatever interest she doesn't spend (that's reinvested) to her heirs.

Sounds like an annuity might not be a good fit, but I know nothing about this subject.

Looking forward to more discussion on financial products and leads on who to talk to that's a professional at this stuff.
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Old 09-03-2015, 01:58 PM
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Originally Posted by triplenet View Post
You should be able to do the math without a financial advisor ....

The rental nets X and the most safe investment would be a bond that pays Y ...

300k @ 2% = 6k annually

My guess is that the rental home may net around the same .....

but at least she can have the depreciation and borrow against it in a pinch ....

If you want I would be happy to put a value on the house ...
What you just pointed out is why he needs to talk to someone. You just compared a 10 year treasury note's return to a rental property's return as if they offer the same risk profile.
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Old 09-03-2015, 01:58 PM
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Harold Evensky is probably the best retirement guy in the country and also a nice person. He has a Miami office. Google him.

http://www.evensky.com/
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Old 09-03-2015, 02:03 PM
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Originally Posted by midcap View Post
What you just pointed out is why he needs to talk to someone. You just compared a 10 year treasury note's return to a rental property's return as if they offer the same risk profile.
you want to put an elderly woman in the stock market ?

and of course I agree he should always seek professional advice ..

Last edited by triplenet; 09-03-2015 at 02:41 PM.
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Old 09-03-2015, 02:16 PM
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More issues than can be fully discussed here. Evensky has a good reputation, but it's a large firm.

70 isn't elderly anymore. Where is she moving and how is she paying for it? What other income does she have? How much does she need from the property or invested proceeds? All questions that need to be addressed.
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Old 09-03-2015, 07:34 PM
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[QUOTE=triplenet;8217798]You should be able to do the math without a financial advisor ....

The rental nets X and the most safe investment would be a bond that pays Y ...

300k @ 2% = 6k annually

My guess is that the rental home may net around the same .....

QUOTE]


Is rental property that cheap in FLA? I would never buy a home If I could rent a $300K home for $500/month. Around here, I'd get $500 for a $40K home if I could find one.

What am I missing?
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Old 09-03-2015, 07:52 PM
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If the house is her primary residence after cost of sale she can just about sell tax free.
The next step is harder.
Good luck.
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Old 09-03-2015, 08:55 PM
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[quote=bamaboy473;8218843]
Originally Posted by triplenet View Post
You should be able to do the math without a financial advisor ....

The rental nets X and the most safe investment would be a bond that pays Y ...

300k @ 2% = 6k annually

My guess is that the rental home may net around the same .....

QUOTE]


Is rental property that cheap in FLA? I would never buy a home If I could rent a $300K home for $500/month. Around here, I'd get $500 for a $40K home if I could find one.

What am I missing?
My guess is he meant 6k after expenses; maintenance, insurance, taxes etc.

Depending where in S.Fl the home is I'd expect it to rent for at least 2k so I think conservatively they should be able to bring in a little more than 6k probably something around 12-15k depending on upkeep required.
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