Colorado Home Journal DEC08

December 2008

Selecting a Financial Advisor

Our Premiere Issue

An All-Out Winter Adventure

W

elcome to our first monthly issue of Colorado Home Journal! Through a collaborative effort at Colorado Home Realty and Colorado Home Mortgage we bring to you what we believe to be Denver’s most timely and relevant headlines of the local real estate and mortgage industry designed specifically to keep those we care about informed.

W E LC O M E

I have in the past communicated how I run my business by referral, which means my job is to exceed the expectations of my clients in every way, every time so they will feel passionate about referring me to everyone they know. By referring me, my friends and family ensure the people they care about receive the best service in the business.

This newsletter takes that level of professionalism and passion to a new level in providing valuable, timely information on an ongoing basis so you can make the best decision possible for yourself about investment properties, second homes, refinancing or buying a new home in this crazy market.

You, along with a small number of other people, will receive this newsletter every month. My hope is you find the information pertinent and informative.

I welcome your feedback and desire to see anything new each month. We have exciting news coming in next month, so please be sure to look for your next addition of the Colorado Home Journal.

mortgage Selecting A Financial Advisor Many successful professionals don’t have the time, information, or know-how to effectively manage their finances and plan for the future. Finding someone to help is very important, but the process can involve significant risks. All too often, we hear stories of less-than-scrupulous individuals who end up taking advantage of clients. To help you on your search, here are some essential guidelines for selecting a financial advisor.

Find a financial advisor with whom you’re compatible It’s important that you find someone with whom you feel at ease. Open channels of communication are imperative. You should feel comfortable enough to honestly share your goals and long-term plans, not just your financial information. In order to consult with you most effectively, your financial advisor needs to fullyunderstand and appreciate you, your situation, and what you want for your future.

Make sure you can trust your financial advisor Any time that you involve someone else in your personal affairs, you need to establish a level of trust. As you begin to work with your financial advisor, you should feel that you’re establishing mutual respect and commitment, as well as becoming more comfortable with the solutions your financial advisor makes available to you. While you should always be diligent about understanding and

monitoring your finances, the best financial advisor-client relationships are those in which both parties know each other well and work together towards achieving the client’s stated goals.

A good financial advisor should be a good teacher.

By gauging your current level of financial knowledge, your financial advisor should explain options and choices in language you understand, while also sharing new concepts that help you think more dynamically and proactively. Look for a financial advisor who has a broad level of knowledge on a wide range of financially-related topics.

Choose someone with a good team in place Choose a financial advisor who can work with you and your network of specialists. The financial advisor should be able to help you coordinate the roles of your specialists such as your CPA, trust and estate attorney, insurance professional and lending specialist.

Your Expectations It’s important to take the time to assess the relationship you have with your current financial advisor to determine if it is working for you. Finding the right financial advisor can make a dramatic difference in your future.

The Dynamic Colorado Real State Market r e a l S T A T E

Despite a depressed economy and real estate sales on the decline nationally, the message, at least for Colorado has not changed: It’s still a great time to buy a home. Mortgage rates are hovering at a historic low and are still falling. Additionally, there are some areas in Colorado that are experiencing lower inventories, and stable home values.

National Association of Realtors, President Richard Gaylord recently said, “It’s more important than ever to examine what’s happening with home prices at the city and neighborhood level.

The old real estate mantra of ‘location, location, location’ is perhaps more relevant today than ever before as all real estate is truly local.”

If you are a buyer, it’s a great time to go shopping. You have a lot of choices, bargains abound in foreclosed properties and, if you can afford to delay the decision, you may be able to get a great property at an outstanding value.

But what if you are a seller in Colorado? No one needs to tell you that today’s market is challenging. The buying public is taking much longer to make a decision. When offers do come in they are usually lower than might be expected and buyers are asking for a variety of concessions and benefits they might not have the courage to seek in a stronger market.

As a seller you have to rely upon the attractiveness of your property to break through these obstacles. To give yourself the best opportunity in the current market, make sure your home is as appealing and competitive as it can be. If repairs are needed, take care of them before you put the home on the market.

Whether you are a buyer or a seller, there are opportunities. It’s just a matter of understanding the market and having a great Colorado Home Realtor.

health&fitness F O C U S Crowded ski slopes, expensive destinations and chair lift lines are three reasons to cinch your feet into a pair of snowshoes and set off on a winter adventure.

While snowshoeing has been a means of travel through tough mountainous terrain for thousands of years, transition from the early wood-frame shoes to the sleek, sophisticated designs of today has helped pull this activity into the 21st century.

While we’ve been hiding ourselves atop a ski slope in our snowcaps and sunglasses, the sport of snowshoeing has found a following around the world. Modern-day snowshoe enthusiasts partake in this sport for racing, training and, of course, fun.

What’s to love?

Snowshoers say this sport is easy to learn, inexpensive, and poses little to no risk for injury. It is truly a family-oriented activity. According to research provided

by Snowsports Industries America (SIA), 9.4 percent of snowshoe enthusiasts are children, 40.8 are women, and 44.2 percent of snowshoe enthusiasts range in age from 25 to 44. Wives, mothers, children and fathers are finding this activity to be perfect for all ages. Athletes in training use the sport of snowshoeing to shape up physically and build their cardiovascular systems. According to SIA, this sport will burn more than 600 calories per hour (that is 45 percent more calories than walking or running at the same speed).

Snowshoeing An All-Out Winter Adventure.

Snowshoe Shopping Like tennis shoes, snowshoes range in price. A good pair of snowshoes cost anywhere from $100 to $300. Ask a snowshoe retailer what is best. It truly depends on how hardcore one plans to become. A back-country snowshoer (in search of some powder, tough climbs and steep descents) will be in need of backpacking snowshoes. Strong and steady, these snowshoes are created with aluminum frames, durable flotation material, and tough bindings. However, they fall on the more expensive end of the pricing spectrum. For those family-oriented athletes looking for a good hike, quality time and some pretty mountain views, a simpler shoe will certainly do the trick. REI, Eastern Mountain Sports (EMS), and Backcountry.com all carry a nice selection of snowshoes and snowshoe sport accessories.

Slopes, Terrain & Trails With a spectacular view well worth the steep climb, The Crags at Cripple Creek is a great trail for a more experienced athlete. Bear Lake Trail (located inside of Rocky Mountain National Park in Estes Park) is home to an array of wildlife. Noted as a great beginner trail, Bear Lake is a perfect place for a family to find great-horned owls, steller jays, deer, elk and breathtaking scenery.

For those in search of an interesting change of pace, begin comfortably with the versatile sport of snowshoeing. It is truly as simple as it sounds.

Buy some shoes, dress for the elements, and get moving!

economic F O C U S

401(k) Plan Commonly Asked Questions

Because your retirement planning is so important to your future well-being, you should ask questions about the retirement plans available to you and how they work, as well as how best to use your retirement dollars. Below are answers to several commonly asked questions about 401(k) Plans.

Q. How do my 401(k) contributions lower my income taxes?

A. Your 401(k) contributions are made on a pre-tax basis.

This means that they aren’t reported to the Internal Revenue Service as current income on your W-2 form to the Internal Revenue Service. For example, if you earn $25,000 a year and decide to contribute 10 percent of your salary ($2,500) to your 401(k) account, only $22,500 will be reported as current income for income tax purposes. Why does the government give you this excellent tax break? Because it wants to encourage individuals to save as much as possible with their own dollars today so that they are better prepared for their retirement in the future.

Q. What is a Roth 401(k)?

A. Roth 401(k) is not a type of plan, but rather a type of plan contribution. If a 401(k) plan offers this feature, employees can designate some or all of their elective contributions as designated Roth contributions, (which are included in gross income) rather than traditional, pre-tax elective contributions. Meaning that Roth contributions are taxed in the year they are contributed to the plan. Upon distribution, Roth 401(k) contributions are received tax free.

Earnings on Roth 401(k) contributions will not be taxed upon distribution if the Roth account has been open for at least 5 years and distribution occurs after 59, death or disability.

Traditional 401(k) contributions and Roth 401(k) contributions are subject to a combined limit of $15,500 for 2008 ($20,500 if age 50 or older).

Q. Am I able to contribute to both a 401(k) and an IRA? A. Yes. Many individuals contribute to their 401(k) Plan and to an Individual Retirement Account (IRA) or Roth IRA. It may be best to maximize your traditional 401(k) contributions first, since they are made with pre-tax dollars. (Your IRA contributions may or may not be tax deductible, depending on your annual salary and other qualifications.) If your employer offers matching contributions and you qualify for a Roth IRA or deductible IRA, it may make sense to contribute enough to your 401(k) to attract the maximum employer match, and then contribute to an IRA or Roth IRA. If you have not exhausted the maximum allowable contribution and can afford to do so, contribute again to your 401(k) Plan.

Q. If I change jobs, may I take my 401(k) money with me?

A. Yes. All contributions you have made to your 401(k) account are 100 percent yours. Contributions made by your employer (if any) may be yours depending on a vesting schedule. You will need to check your plan for specific vesting schedules.

In addition, if you do change jobs, it may be a good idea to consider either rolling your 401(k) money over into an IRA or another qualified plan (such as a profit-sharing or 401(k) Plan) at your new employer. Otherwise, you may incur taxes and early withdrawal penalties. Be sure to check with your tax adviser before taking any distributions from your 401(k) Plan.

community C LO S E U P

Christmas with the Colorado Children’s Chorale.

On Dec. 23 at 7:30 p.m. at the Denver Center for Performing Arts, 400 children will raise their beautiful voices in celebration of this holiday season. A Charlie Brown Christmas with the David Benoit Quartet is expected to be sensation. Favorite classics come alive with the Colorado Children’s Chorale and Benoit’s contemporary jazz quartet. Don’t miss “O Tannenbaum,” “Christmas Time is Here,” “Pebble Beach,” Christmas is Coming” and many more.

When they are not touring the world and performing for presidents, the Colorado Children’s Chorale is a wonderful, community-oriented organization. They have created an education program, with weekly choral music and performance training in targeted schools, school workshops and concerts.

“My passion for artistic excellence and music education is the driving force in the development of the Chorale’s School Partnership program,” explained Deborah Desantis, Artistic Director and Conductor.

The Chorale keeps busy throughout the year, performing unique concerts for both children and adults.

The choral consists of children between the ages of seven and fourteen. They have collaborated with many different musical talents, including artists Placidio Domingo, Michael McDonald and Natalie Cole. They have performed throughout the United States of America, Europe and Asia.

Samuel Lancaster, who has composed dozens of works for the Colorado Children’s Chorale throughout the years, has described their CDs as “a collection of valuable antiques.” Their spirited performances, complete with exuberant choreography and sweet melodies, have made this group a local treasure.

To book your tickets for A Charlie Brown Christmas with the David Benoit Quartet, visit www.coloradosymphony.org. To learn more about the Chorale, visit www.childrenschoral.com

Erie 1560 Alpine Court. $592,500.

Beautiful home with incredible mountain views at the end of the cul-de-sac. Will not Disappoint!

fe a t u r e d LISTINGS

Parker 178 Albion Street. $ 599,999.

923 Bungalow. Fantastic hilltop property with lots of charm.

Parker

Denver

5459 Golden Current Way. $785,000. Awesome timbers home on Cul-de-sac. Upgrades galore!

75 Emerson Street. $169,900.

Mountain and city views.

Hardwood oors. Close to bike trail.

Must see.

10822 West Toller Drive, Suite 180 Littleton.CO 80127 720.981.4109

ColoradoHomeRealty.com