93-acre project in Costa Rica now available

A friend of mine in Costa Rica, George Lundquist, has developed several successful residential projects in the Central Valley region. And now he has a 93-acre farm near the village of Grifo Alto that is available for development.

Click here for photos to get an idea of what this property offers.

And if you want more information, including costs and projected cash flow, you can contact George directly.

Best wishes,

George

Not meeting this deadline could cost you a bundle

Are you required to take distributions from your IRA? If so, you better get a move on it, because the deadline is December 31 … just a few weeks away.  And the penalty for not meeting the requirement by then is a staggering 50% on the amount not withdrawn.

There is, however, an exception …

If you turned 70½ this year, you’ll have until April 1, 2012, to take your first distribution. But the second distribution will have to come out by December 31, 2012. That means you’ll have to include both distributions as income on your 2012 tax return.

You can find more information on IRA distributions in IRS Publication 590.

Best wishes,

George

P.S. There was no way Obama’s long-term care plan was going to work. Now it’s official: The CLASS Act is dead. And that means the responsibility to take care of yourself if your health changes rests on your shoulders. Get the facts and learn your options in my just-updated book: A Boomer’s Guide to Long-term Care.

Week end REIT index

I got a number of e-mails asking about the REITs I mentioned on December 7. So I updated the numbers and put together an “e-FinancialWriter REIT Index.” And I plan on posting this each week so we can see how they do.

REIT	Blog date	Price	Closing price 12/9/11	Return to date %	Dividend yield %	1-yr return %
PSA	3/14/2010	90.75	130.17	43	3.42	34.79
VTR	12/30/2010	52.87	53.40	1	4.23	11.63
HCP		36.81	38.81	5.4	4.95	26.36
HCN		47.53	50.74	6.75	5.59	18.04
SNH		22.00	21.57	0	6.91	8.81
IAECREIN:CN	9/27/2011	19.45cn	21.98cn	13	0	15.68
ZRE:CN		16.29cn	18.19cn	11.6	7	15.48
INVRLPRA:CN		5.41cn	5.42 cn	0	2.03	6.79
Index return				10.09		17.20
SPY					1.95	3.27
Source: Bloomberg

If I add or remove any REITs during the week, they’ll show up in the index at the end of the week.

Best wishes, 

George

Proof ... real estate is NOT dead!

With the year wrapping up in a few weeks, I thought it’d be interesting to see how the investment ideas I’ve posted have done. And I since think there is always a way to make money in real estate, I was particularly interested in how the REITs I picked have performed.

So let’s take a look:

On March 14, 2010 and again on November 30, I told you about a REIT I’ve owned for years, Public Storage (PSA). Since I first mentioned it, it’s up 47%. And the 1-year return is 32.55%.

On December 30, 2010, I gave you four REITs in the health care sector to check out. Here they are with their 1-year returns:

• Ventas (VTR) up 7.01%

• HCP, Inc. (HCP) up 18.04%

• Health Care REIT (HCN) up 14.92%

• Senior Housing Properties Trust (SNH) up 5.24%

Then on September 27, 2011, I told you about three Canadian REITs that were worth a look. Granted, it hasn’t even been three months. So for a long-term investor like me performance one way or the other doesn’t really matter. But they are all up. And their 1-year returns are pretty impressive.

• IA Ecoflex Real Estate Income Fund (IAECREIN CN) up 14.76%

• BMO Equal Weight REITs Index ETF (ZRE CN) up 11.15%

• Investors Real Property Fund (INVRLPRA CN) up 6.79%

Seven of the REITs are cash cows, too, with dividend yields ranging from 2.03% to 7%.

Compare the above returns to SPY, the exchange traded fund that tracks the S&P 500; it’s up 5.22% over the past year.

I’m not suggesting that you put your entire investment portfolio in real estate. That would be as irrational as putting everything in gold (GLD up 24.1%). But a small allocation (10%-15%) could make a lot of sense.


Best wishes,

George

A Real Deal on Some of the Best Skiing in North America

Are you a snow ski enthusiast?
 

How does this sound to you: 

• Lift tickets that only cost $55 (compared to $90 in Park City, $102 in Vail),
• $32/day rental for skis, boots and poles,
• NO lift lines,
• Moderate temperatures, and
• Some of the best skiing in North America!

Click here to check it out for yourself.

When a skiing friend told me about Brundage, Idaho, a few years back, I wasn’t too excited about the 7640 elevation. After all, other areas offer higher peaks. So the runs might not be quite as long as those found in Vail, Park City or Canada. But let me tell you, I’ve gone there three times ... and I absolutely loved it! And I can almost guarantee you will, too.

What’s more, it’ll cost you a heck of a lot less than going just about anywhere else. 

We have a condo in McCall, Idaho that sleeps 10 for February 6 through February 13.

If you, or anyone you know, is interested in tagging along (for all or just  part of the trip) to share the cost of the rental car and food (the condo is already paid for!) and have a great time at a bargain basement price, let me know ASAP and I’ll answer any questions.

Best wishes,

George

Looking to add real estate to your portfolio, then read this …

Real estate has taken a bloody beating over the past five years. And as I’ve written several times in this blog (most recently in September), now could be a great chance to add a piece of dirt to your portfolio.

If you agree, then you should read about a Morningstar study that found the REIT returns beat real estate funds.

You can see it here.

Best wishes,

George

The CLASS Act is not a class act

Back in October 2009 and again on March 15, 2011, I wrote about the CLASS Act. That’s the Community Living Assistance Services and Support Act), the long-term care insurance plan that’s within Obamacare.

There has never been any doubt in my mind that whole concept of this plan is built on thin ice — another government sponsored Ponzi scheme. Simply put: There won’t be enough money coming in to support the number of Baby Boomers who could need long-term care.

And just recently, a Congressional committee detailed the insolvency of the CLASS Act in a report titled: CLASS’ UNTOLD STORY: Taxpayers, Employers, and States on the Hook for Flawed Entitlement Program.

It seems the committee found that the Obama Administration’s Department of Health and Human Services (HHS) was aware that the program was unsustainable and withheld this information from Congressional leaders and the American people prior to the passage of the law, all in an effort to achieve phony savings to offset the bill’s massive spending and taxpayer-funded price tag.

Several Committee members voiced their concerns; for example:

• Rep. Joe Pitts said, “The CLASS Act is an ocean liner that was put to sea with a giant hole in the hull.”

• Rep. Michael C. Burgess said, “Instead of focusing on reducing the costs of long term care insurance for Americans, the president’s health care law exploits tax payer confidence through creating another program that is poorly structured and will cost taxpayers even more money.”

• And from Sen. Lindsey Graham, “Remember Enron accounting? Well, I believe even Enron executives would be embarrassed by the accounting gimmicks created by the CLASS Act."

So now with further confirmation that another government plan for older Americans is doomed, what should you do now to make sure you can get the care you may need some day, without leaving you flat broke?

First, don’t stick your head in the sand. Become informed. Learn what government programs are available, before you or a loved one needs them.

Second, evaluate the options, including your ability to pay for your own care.

Third, develop a plan for dealing with the day when your health changes. Then share it with your family.

And if you’re not sure how to go about putting these steps into play, I suggest you pick up a copy of the latest update to A Boomer’s Guide to Long-Term Care.

Best wishes,

George