• No Financial Plan? No Excuse!

• Q&A on the Capital Gains Exclusion

• Mortgage Rates Head Higher in May

• Senior-Friendly Web Sites

Your Real Estate Partner - Terry Farrell, Senior Real Estate Specialist

Seniors Real Estate Specialist

Real estate markets are humming along nicely in most parts of the country, thanks to the strong economy, favorable interest rates and the American ethic of home ownership.

People in their senior years often have the bulk of their personal wealth invested in real estate. That’s why it’s so important to make wise decisions, whether you’re selling your home, buying a replacement residence or making an investment.

Helping seniors make wise real estate decisions is my forte. As a seniors real estate specialist, I have the necessary skills and experience to answer your questions. Give me a call and I’ll be happy to help you.

Mortgage Interest Rate Update

Mortgage interest rates moved higher at the end of May, after a period of rates below the 7 percent level.

For the week ended June 5, 1999, the rate for a 30-year fixed mortgage averaged 7.41 percent, according to Freddie Mac’s Primary Mortgage Market Survey. That level was a considerable increase from the prior week’s average of 7.23 percent and the year-ago average of 7.05 percent. The 7.41 rate is the highest since the 7.53 percent average posted in September 1997.

The average interest rate for 15-year mortgages stood at 7.04 percent in early June, while the average for one-year Treasury-indexed adjustable rate mortgages (ARMs) was 5.85 percent.

Points were an average of one for fixed-rate mortgages and 1.1 for 15-year mortgages and ARMs.

A Freddie Mac economist attributed the higher rates to concerns about the strong housing market fueling an economy that might be growing too quickly.

It’s Never Too Soon or Too Late for Financial Planning

Financial planners have heard every excuse in the book for not planning one’s financial future. An informal survey recently turned up the following seven frequently heard excuses:

1. I don’t need to plan.

2. I don’t have time to plan.

3. I think planning is too complicated.

4. I don’t have any goals.

5. I don’t have any money to invest.

6. I’m too young to plan.

7. I’m too old to plan.

What’s your excuse?

Capital Gains Exclusion Q&A

The latest rules governing taxation of capital gains on the sale of a principal residence have been in effect for some time. However, consumers are still sorting out the details.

Q: Do I have to purchase a replacement residence to claim the $250,000 (singles) or $500,000 (married couples) exclusion?

A: No. The "rollover" requirement of buying another home no longer applies.

Q: Can I deduct a loss on the sale of my principal residence?

A: No.

Q: If my capital gain is less than $250,000 or $500,000, can I apply the excess amount to a future sale?

Web Sites for Seniors

Seniors are one of the fastest growing populations of people surfing the Web and using e-mail to keep in touch with family and friends. If you’re online, you’ll find hundreds of senior-oriented Web sites worth visiting. Here are three suggestions:

At http://www.seniorfriendly.com , you’ll find evaluations of some popular consumer electronics, based on their senior friendliness and easy of use. The site doesn’t have many models evaluated yet, but it’s a good start. Call (847) 564-8860 to order the Senior Friendly newsletter.

At http://agingwell.state.ny.us (no www on this one), you’ll find tips for eating well and staying fit, a health and wellness library, a public forum and a seniors news-stand. This Web site is sponsored by the New York State Office for Aging.