Saturday, March 24, 2012

REIT portfolio weekly update

Here is the e-FinancialWriter REIT portfolio for the week ending March 23, 2012.  Slightly down over last week, but still far ahead of the S&P 500.

REIT
Sector
Blog date
 Price
 Closing price 03/23/12
Return to date %
Dividend yield %
PSA
Self storage
      90.75
                                           137.07
51.04
2.88







VTR
Health care
      52.87
                                             56.20
6.30
4.17
HCP
Health care

       36.81
                                                39.53
7.39
4.91
HCN
Health care

      47.53
                                             54.08
13.78
5.33
SNH
Health care

      22.00
                                              21.93
-0.32
6.84







IAECREIN:CN
Canada
 19.45cn
23.43cn
20.46
0
ZRE:CN
Canada

 16.29cn
 19.15cn
17.56
5.25
INVRLPRA:CN
Canada

 5.45cn
 5.47 cn
0.33
2

NNN 
Retail
27.18
26.89
-1.07
 5.71







Index return
since inception*




20.55

Avg 12-mo
return of REITs in portfolio*




12.77

Avg dividend yield of REITs in portfolio





4.12
12-mo return S&P 500




6.34


Source: Bloomberg
*Does not include dividends paid

If you have trouble seeing the chart, just in zoom in with your web browser.

To read the posting where I introduced a specific REIT, click the “Blog date” link. And if you’d like to see prior week’s reports, type “reit index” in the search box.

Enjoy your weekend!

George

Thursday, March 22, 2012

Don’t let a rate increase destroy your long term care planning

Did you receive notice of a double-digit increase for the premium on your long-term care insurance (LTCI) policy?

A lot of people have. And they’re pissed!

Policyholders are seeing increases of 10%, 30%, and as high as 90%!

Now they’re asking why.  

The big problem is that long-term care costs are an unknown for insurance companies. It’s a black hole. In fact the problem is so big that President Obama had to pull the CLASS Act provision, which was meant to provide Americans an affordable policy, out of his healthcare plan.

As I wrote on page 32 of A Boomer’s Guide to Long-term Care:

“There has never been any sound actuarial or statistical data indicating that LTCI policies are in any way immune from rate increases.”

The bottom line: Expect premiums to go up.

So what can you do if your premiums take a huge leap?

First of all, take a deep breath … relax … don’t drop the policy. People are living longer, Medicare and Medicaid are under pressure to cut spending, and the healthcare system is in turmoil. With that in mind, long-term care costs will continue to rise and more of the burden will be put on those who need the care. Therefore it’s more important than ever to protect your assets.

Second, contact your insurance agent or the company directly. Ask what alternatives are available to keep the premiums close to where they are now. For example, do you currently have lifetime benefits? Reducing it to 5-year or 3-year could make a big difference in your premium. Another idea: Increase the waiting period from say 30 days to 90 days.

And if your blood is still boiling, consider picking up a copy of A Boomer’s Guide to Long-term Care where you’ll find more tips on cutting premiums and alternatives to nursing home insurance. You can download it right now for only $9.95.


Best wishes,

George

P.S. Got a question or comment about this posting or something else I’ve written? Then go to the comment box below. Or if you’d rather e-mail me directly, click here.


Tuesday, March 20, 2012

Own rental property? Here’s one expense you can easily avoid ...

I have owned and managed rental properties for over 20 years. And to the best of my recollection, have always used 12-month leases with tenants. But here in Florida leases are just about worthless. The laws are very one-sided in favor of the tenant.

However, I was recently reminded of an important reason for having a lease …

Florida charges a 6% sales tax on rentals that have a term of six months or less. So if you have a lease longer than six months, you’re exempt from collecting the tax. You can find the details here.

Plus here in Palm Beach County, we have a 5% bed tax. Now you would think that a bed tax would mainly apply to hotels. But no! The same deal … without a lease of six months or longer, you better collect the money and pass it along to the tax collector.

Laws can vary. But with most states and municipalities awash in red ink, you can be sure they have teams on the prowl for landlords who aren’t coughing up sales tax, bed tax, or what ever they want to call it.

My advice: Check with your state’s department of revenue and local tax collectors. Otherwise you might end up footing an expense that you could have easily avoided.

Best wishes,

George


Saturday, March 17, 2012

Irish Eyes Smiling on REITs

Here is the e-FinancialWriter REIT portfolio for the week ending March 16, 2012.  Still running almost double the S&P 500 since inception!

REIT
Sector
Blog date
 Price
 Closing price 03/16/12
Return to date %
Dividend yield %
PSA
Self storage
      90.75
                                           136.52
50.44
2.89







VTR
Health care
      52.87
                                             56.97
7.75
4.12
HCP
Health care

       36.81
                                                40.21
9.24
4.82
HCN
Health care

      47.53
                                             54.81
15.32
5.28
SNH
Health care

      22.00
                                              22.21
0.95
6.75







IAECREIN:CN
Canada
 19.45cn
24.12cn
24.02
0
ZRE:CN
Canada

 16.29cn
 19.59cn
20.26
5.14
INVRLPRA:CN
Canada

 5.45cn
 5.46 cn
0.16
2

NNN 
Retail
27.18
26.67
-1.88
 5.76







Index return
since inception*




21.43

Avg 12-mo
return of REITs in portfolio*




14.08

Avg dividend yield of REITs in portfolio





2.96
12-mo return S&P 500




11.72


Source: Bloomberg
*Does not include dividends paid

If you have trouble seeing the chart, just in zoom in with your web browser.

To read the posting where I introduced a specific REIT, click the “Blog date” link. And if you’d like to see prior week’s reports, type “reit index” in the search box.

Happy St. Patrick’s Day!  

George