Income Replacement Funds for Retirees

Came across some new funds by Fidelity and Vanguard. They are in-effect Income Replacement Funds.

Here is the idea behind the funds. Once retirees give up their regular paycheck, they need to decide where the money will come for daily expenses.Also making sure their nest egg does not run out during their life time.

Fidelity is offering 14 of such funds. These funds "liquidate money" over certain schedule. Basically our savings and gain return back to us over the lifetime of the fund. There is not guarantee about how much monthly income we will receive. It would depend on performance of the portfolio in which Fidelity invests.

Here is Fidelity's page with more information on "Income Replacement Funds". They also provide a simple calculator which tells you for given investment what would be approximate monthly income.

http://personal.fidelity.com/products/funds/content/WhatYouCanBuy/income_replacement_funds_overview.shtml.cvsr

Vanguard has also come up with similar funds with little different approach. They are quite new though and at this time there is no telling how they would perform. More on them at some other time.

Loan Modification - Reduce Monthly Mortgage Payment

I just came accross this HOPE foundation browsing through some news.

"The Home Ownership Preservation Foundation" (HOPE).

This foundation helps people avoid forclosures. Their website suggests they help for free. And that they are non-profit and provides HUD approved counselors.

As per their website they do not just provide general guidance, but they also help take you action. And sooner we call them, more options we may have. They might be able to reduce mortgage payment as well as property tax.

It is worth knowing that they do not help with downpayment or mortgage. What they do it help you connect with some local non-profit resources that may be of assistance. They also have relationship with lending agencies and mortgage companies. Due to which they might be able to work out some solution with them.

Here is their website. http://www.995hope.org/

Here is their hotline. 888-995-HOPE

Home Buying (Part 4) - Home Inspection

Home inspection is very critical part of home buying process. Even though you are buying new home it is necessary to get home inspection done. Home Inspectors vary in training and type of things they inspect. It also very by states. There are websites available to find inspectors. Here are some basic things they inspect.

1. Structural System - Foundation, Grading and Damage, Roof Covering, Roof Structure and Attic,Walls, Ceillings and Floors, Doors, Windows, Fireplace and Chimney,Porches Decks and Carports.

2. Electrical System - Service entrance and Panels,Branch Circuits, Heating and Cooling equipments, Ducts and Vents

3. Plumbing System - Water supply system and fixures, Drains, Wastes and Vents, Water Heating Equipments,

4. Appliances - Dishwasher, Food Waste Disposer,Range Hood, Ranges/Ovens /Cooktops, Trash Compactor etc

There are items that may not be covered in this basic inspection.

1. Termite
2. Mold, Meldew, Fungi
3. Lead

Seperate Inspaction/Inspector may be required for above items.

Failure to fix one of the major items came out during inspection could decide whether you want to go further with the house or not.

Here is website I mentioned where you can find out home inspectors.

http://www.ashi.org/