Retirees Learn Financial Advice at The Silver Hair Tsunami

SAN DIEGO - Sept. 26, 2014 - PRLog -- The best advice for baby boomers in regard to real estate and financial decisions is to be informed and plan accordingly.

That was the main message Thursday night at The Silver Hair Tsunami, hosted by Steve Sexton, president of Sexton Advisory Group, and featuring Alan Nevin, director of economic and market research at Xpera Group; Glen Henderson and Shannon Keatley, brokers and owners at Alliance Group Real Estate Services; Bill Exeter, president and CEO at Exeter 1031 Exchange Services, LLC; Don Meredith, financial adviser at Tactical Income, LLC; and Craig Sewing, radio and TV host.

The event, which attracted more than 150 attendees, was held at the Kona Kai on Shelter Island. Sexton and Nevin presented a $500 check to the Friends of Downtown San Diego at the event. Attendees donated $700 to the charity, which was matched by Sexton, adding an additional $1,400 to the donation.

There are more than 90 million people over the age of 65. Ten thousand people have turned 65 each day since 2008, equating to about 4 million people every year for the next 20 years, Sexton said.

“Baby boomers will have a significant effect on the economy for decades to come,” Sexton said.

Technology companies are developing tools that will make it easier for people over 65 to live life. Travel agencies have also jumped on this trend and are focusing their efforts on baby boomers, Sexton said.

Retirees typically enjoy traveling to see grandkids, check off items on their bucket lists, have increased doctor visits and prescriptions, downsize their homes and move to assisted living facilities.

Sexton’s goal on Thursday was to give baby boomers the information they need to make informed decisions moving forward – to find ways to make their money last longer.

Henderson helps his clients develop a plan in order to obtain their goals when buying and selling real estate. Not properly planning is on Henderson’s and Keatley’s list of the “7 Costly Mistakes to Avoid When Selling a Home.”

“It doesn’t matter if it’s next month or five years from now, we want to help you develop that game plan,” Henderson said. “The reason someone got a fantastic deal on real estate is because the person on the other side of that transaction didn’t have a plan. They weren’t prepared for the time that they were putting their home on the market. Whether there was a life event that they didn’t prepare for, or there was an uninformed or uneducated or unprepared Realtor that didn’t give them the proper guidance.”

Those selling a home need to have a roadmap and know what the stops would be, Henderson said. This should be the same for a retirement plan, financial plan, estate planning, tax planning and insurance planning.

In Nevin’s presentation, “Up: The Next 5 Years,” he explained that the economy should have recovered three years ago, but it’s getting better. Despite setbacks in the housing market, California has experienced population and job gains.

Nevin forecast San Diego to add more than 20,000 jobs and 25,000 people this year and next year. He expects home sales to increase slightly due to townhouses in the county. And interest rates will likely remain around 4 percent for the next couple years, Nevin said.

As a result of the most recent recession, investors own about 21 percent of all single family detached homes in San Diego County, and about 43 percent of all condominiums, Nevin said. That’s starting to change now, he said. Home prices have been steadily increasing, and the county’s median home price has surpassed $500,000.

Those who invested in real estate during the recession include individuals – some of whom were at The Silver Hair Tsunami event – who may now be interested in a 1031 exchange. This type of transaction may be beneficial for those investors who want to pass their real estate onto their heirs without burdening them with capital gains taxes.

A 1031 exchange is a tax deferral strategy that allows real estate owners to build wealth by selling properties and using the proceeds to invest in another property, Exeter said. This process allows the investor to defer capital gains taxes.

To qualify, the property sold and the property purchased must be used as a rental, investment or in some kind of a business. Any property that is held for sale – a condo conversion, a flip, etc. – does not qualify for a 1031 exchange. Capital gains taxes will be paid on the difference when the amount paid for the new property is less than the amount gained from the sold property.

For more information on The Silver Hair Tsunami, visit thesilverhairtsunami.com. (http://thesilverhairtsunami.com/)