Sunday, December 28, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Back to the basics

By
From page AHW6 | April 05, 2014 |

I have heard this statement thousands of times in my 30-year career: “Buying my residence was one of the smartest things I have ever done.”

This is another very common theme from so many of my friends, family and clients: “I have made tons of financial mistakes in my life but buying my house wasn’t one of them.”

I love this one: “If I had not bought this house, I would be in big trouble today.”

I am keeping the expletives out of this quote for the family newspaper audience but many very good people are frustrated, scared, angry or depressed when they turn 60 and realize how fast time flies in life. Retirement comes quickly and even if you are a terrible money manager and investor or even if you were a victim of bad luck with money or serious health issues, buying a house and getting it paid off in 30 to 35 years can be a financial life saver for many people.

Let’s go back 35 years from today and look at the rents in Solano County and compare renting versus buying. The rent for a decent three-bedroom, two-bath house was around $300 per month and the cost of the home was around $60,000. The rent today for that exact same home would be a minimum of $1,500 per month, five times the original rate.

The bottom line is this, if you purchased your home and paid it off in 35 years, you would have a home today worth $300,000 and only have to pay for taxes, insurance and maintenance,  maybe $550 per month. You would also have no landlord and the freedom to move to a retirement home community, pay cash for the home and even add to your reserves.

If you were lucky, cautious and smart about money and about maximizing your IRA-401(k), you could retire as a millionaire. If you did 35 years working for a government pension, you can retire with dignity and options. If you had bad luck or handled nearly everything poorly over your financial lifetime, then at least you have Social Security and a free-and-clear $300,000 house that today you could sell tax-free and then move down in price or even in with family with a very decent bankroll to invest.

We all know senior citizens who are in great shape financially and many of these folks never made more than $18 per hour when they worked for the city, the state, the military or the blue-collar private sector, union and nonunion. One thing they all have in common is they own their home and many own a rental property or two. Some have great pensions vested plus hundreds of thousands in savings, mutual funds and bonds.

The financially independent senior citizen does not seem to be a growing population in California today and I believe the rich are getting richer and the poor are getting poorer. I am on a mission to make the middle class richer and the poor less poor.

I need your help on this mission, so call me or your favorite mortgage banker and a great local Realtor today, buy a house and get it paid off in 30 to 35 years while investing as much as you can in your deferred compensation plan as well as regular investments. Get financial advice from your parents and grandparents if they are financially independent while getting modern professional advice from reputable local professionals.

Good luck on your mission. Let’s get back to the basics like the last post-Depression generation.

Jim Porter is branch manager at Solano Mortgage. Reach him at 449-4777 or porter@solanomortgage.com.

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

New circulation director for Daily Republic has California roots

By Ryan McCarthy | From Page: A1 | Gallery

 
Suisun’s transformation launched 25 years ago

By Barry Eberling | From Page: A1 | Gallery

 
Picking the year’s biggest story: A playoff

By Brad Stanhope | From Page: A2

Kwanzaa educates, celebrates African-American heritage

By Susan Hiland | From Page: A3 | Gallery

 
AARP tax program seeks volunteers

By Susan Hiland | From Page: A3

Holiday shopping continues after Christmas

By Susan Hiland | From Page: A3

 
Rush Ranch plans birds of prey workshop

By Susan Hiland | From Page: A4

Winter feeding of backyard birds

By Launa Herrmann | From Page: C4

 
Weather for Sunday, Dec. 28, 2014

By Daily Republic staff | From Page: B6

 
Market predictions for 2015

By Bud Stevenson | From Page: B7

Projects to watch in 2015

By Brian Miller and Karl Dumas | From Page: B7

 
County graduates complete basic training

By Nick DeCicco | From Page: B10

 
Suisun City police log: Dec. 26, 2014

By Susan Hiland | From Page: A12

Fairfield police log: Dec. 26, 2014

By Susan Hiland | From Page: A12

 
.

US / World

Shoppers brawl inside Northern California mall

By The Associated Press | From Page: A4

 
Police in San Diego suburb give cash at traffic stops

By The Associated Press | From Page: A4

Death penalty states unmoved by botched execution

By The Associated Press | From Page: A5

 
San Diego sees costs balloon for outdoor public toilets

By The Associated Press | From Page: A5

Arizona police officer, suspect killed in shootout

By The Associated Press | From Page: A5

 
Lava creeps 15 yards closer to Hawaii marketplace

By The Associated Press | From Page: A6

NYC officer mourned at funeral as tensions linger

By The Associated Press | From Page: A6

 
School error takes money from staff bank accounts

By The Associated Press | From Page: A6

Protester in St. Louis area charged with arson

By The Associated Press | From Page: A6

 
Spokesman: George H.W. Bush remains in hospital

By The Associated Press | From Page: A6

2 small planes collide in Maryland; no injuries

By The Associated Press | From Page: A6

 
Drought, plastic bags prompt new California laws

By The Associated Press | From Page: A7

School bans ‘I Can’t Breathe’ T-shirts at tournament

By The Associated Press | From Page: A7

 
Final goodbye: Roll call of some who died in 2014

By The Associated Press | From Page: A9

Families take future war dogs into homes as foster pups

By The Associated Press | From Page: B10

 
Woman uses quilt to help those in military

By The Associated Press | From Page: B10

Del. WWII vet honored with medals 70 years later

By The Associated Press | From Page: B10

 
Snow, ice sweep Europe, stranding drivers

By The Associated Press | From Page: A10

N. Korea uses racial slur against Obama over hack

By The Associated Press | From Page: A10

 
Pilot recalls last flight to Cyprus airport

By The Associated Press | From Page: A11

Wanted extremist leader surrenders in Somalia

By The Associated Press | From Page: A11

 
.

Opinion

Sound Off: Dec. 28, 2014

By Glen Faison | From Page: A8

 
Redrawn districts made for some tight races

By Dan Walters | From Page: A8

Putin’s epic annual news conference, condensed

By Ishaan Tharoor | From Page: A8

 
Leaders fan flames of racial hatred

By Letter to the Editor | From Page: A8, 4 Comments

 
.

Living

Today in History: Dec. 28, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Dec. 28, 2014

By Susan Hiland | From Page: A2

Why do we celebrate Christmas, part two

By Perry W. Polk | From Page: C3

 
Comforting immigrants is nun’s mission

By The Associated Press | From Page: C3

Pope’s role in Cuba deal fractures Cuban-American flock

By The Associated Press | From Page: C3

 
Bethel Community Church buys Temple Baptist site

By Susan Hiland | From Page: A3

Coping with mental illness or loss during holiday season

By The Associated Press | From Page: C4

 
Horoscopes: Dec. 28, 2014

By Holiday Mathis | From Page: C4

My son’s cat is being neglected and I don’t know what to do

By Kathy Mitchell and Marcy Sugar | From Page: C4

 
.

Entertainment

Blagojevich brother: I was fed ‘pawn’ to get then-governor

By The Associated Press | From Page: C6

 
Company loses bid for rights to Marvel superheroes

By The Associated Press | From Page: C6

Jonah Lehrer working on book about digital life

By The Associated Press | From Page: C6

 
TVGrid

By Daily Republic Syndicated Content | From Page: B11

.

Sports

Warriors shake off skid, beat Timberwolves 110-97

By The Associated Press | From Page: B1

 
No. 1 Kentucky holds off No. 4 Louisville 58-50

By The Associated Press | From Page: B1 | Gallery

Vanden’s Koss named 2014 DR Male Athlete of the Year

By Brian Arnold | From Page: B1 | Gallery

 
Broncos see a much better Raiders team this time

By The Associated Press | From Page: B1 | Gallery

Cardinals have hopes of division crown, 12 wins

By The Associated Press | From Page: B1

 
Anze Kopitar leads LA Kings past Sharks, 3-1

By The Associated Press | From Page: B2

Sam: Coming out was right thing to do

By The Associated Press | From Page: B2

 
Vikings stadium builders work on career highlight

By The Associated Press | From Page: B2

Devils replace DeBoer with 3-headed coaching staff

By The Associated Press | From Page: B2

 
Authorities question Cubs’ Castro after shooting

By The Associated Press | From Page: B2

Browns suspend receiver Josh Gordon, Manziel late

By The Associated Press | From Page: B2

 
Sports deaths: elegant Tony Gwynn, Jean Beliveau

By The Associated Press | From Page: B2 | Gallery

 
Cousins leads Kings past Knicks 135-129 in OT

By The Associated Press | From Page: B2

 
Bowling report for Sunday, Dec. 28, 2014

By Daily Republic | From Page: B4

First Step seeks players, help for 2015 season

By Daily Republic staff | From Page: B4

 
Devil Dawgs retiring after run of success

By Daily Republic staff | From Page: B4

Virginia Tech beats Cincy 33-17 in Military Bowl

By The Associated Press | From Page: B4

 
S Carolina tops Miami 24-21 in Independence Bowl

By The Associated Press | From Page: B4

Arizona State beats Duke 36-31 in Sun Bowl

By The Associated Press | From Page: B4

 
Penn State tops Boston College 31-30 in OT in Pinstripe Bowl

By The Associated Press | From Page: B4

Kessler leads No. 24 USC to 45-42 win over Huskers

By The Associated Press | From Page: B4

 
Jameis, Marcus and Mickey: Rose Bowl week starts at Disney

By The Associated Press | From Page: B4

 
This date in sports history for Sunday, Dec. 28, 2014

By The Associated Press | From Page: B5

.

Business

 
Top business stories of 2014: US grows, world slows

By The Associated Press | From Page: B7

BP appeals rejection of removing spill claims head

By The Associated Press | From Page: B8

 
Why areas with good jobs have hard-to-afford homes

By The Associated Press | From Page: B12

US company to open tuna cannery in American Samoa

By The Associated Press | From Page: B12

 
Ruling opens door for cruise malpractice lawsuits

By The Associated Press | From Page: B12

6 US cities: Good jobs but hard-to-afford homes

By The Associated Press | From Page: B12

 
.

Obituaries

Judy Zamora Rogers

By Nancy Green | From Page: A4

 
Concordia Albang Lichauco

By Susan Hiland | From Page: A4

Frances Cruz Pangelinan

By Nancy Green | From Page: A4

 
Oriole Ernestine Cohen

By Susan Hiland | From Page: A4

John Benjamin Calvin Adams

By Nancy Green | From Page: A4

 
Rae Jean Malveaux

By Susan Hiland | From Page: A4

.

Comics

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B4

 
.

Secrets of Success 2014

120 Years: Fentons still a treat after all this time

By Susan Winlow | From Page: SOS2 | Gallery

80 Years: Gillespie’s adapts to meet customer needs, thrives

By Ian Thompson | From Page: SOS5 | Gallery

60 Years: Ryan’s Automotive hits milestone of service

By Ian Thompson | From Page: SOS6 | Gallery

55 Years: Mary’s Pizza Shack keeps dishing the pies

By Amy Maginnis-Honey | From Page: SOS7 | Gallery

50 Years: Cal Yee Farms marks half-century – and counting

By Ian Thompson | From Page: SOS7 | Gallery

40 Years: Floors To Go weathers recession, bounces back strong

By Ian Thompson | From Page: SOS8 | Gallery

40 Years: Vaca Valley Auto Parts a Fairfield mainstay

By Barry Eberling | From Page: SOS9 | Gallery

35 Years: Vogelpohl prides herself as problem solver

By Ryan McCarthy | From Page: SOS10 | Gallery

35 Years: Medic Ambulance rolling strong

By Barry Eberling | From Page: SOS10 | Gallery

35 Years: Scandia Family Fun Center roots run deep

By Ryan McCarthy | From Page: SOS10 | Gallery

30 Years: North Bay Pediatrics serves children, parents

By Ryan McCarthy | From Page: SOS11 | Gallery

35 Years: More than 1,700 home sales – and counting – for Watson

By Ryan McCarthy | From Page: SOS11 | Gallery

30 Years: Sportabout all about tennis – and shoes of all sorts

By Jess Sullivan | From Page: SOS11 | Gallery

25 Years: It’s always showtime for Fairfield’s Finger

By Tony Wade | From Page: SOS12 | Gallery

25 Years: Feins helps build memories through Air Land & Sea Travel

By Jess Sullivan | From Page: SOS13 | Gallery

25 Years: The Hair Place celebrates quarter-century of cuts

By Susan Hiland | From Page: SOS13 | Gallery

20 Years: Quality breeds success for Universal Painting

By Jess Sullivan | From Page: SOS14 | Gallery

10 Years: By the People helps with basic, complex legal issues

By Susan Hiland | From Page: SOS15 | Gallery

10 Years: Cornerstone Quilt Shoppe adds new wrinkle at decade mark

By Barry Eberling | From Page: SOS15 | Gallery