Why Are So Many People Leaving the Bay Area and California?

Moving???

Recently I heard a stat from a Realtor that 10% of the Bay Area’s population in the last 12 to 18 months, have left the Bay Area for other areas throughout CA and abroad.  They have left for the following reasons:

  • Less or no state taxes
  • Lower home prices
  • Lower cost of living
  • Crime and homeless population plaguing our streets.
  • Traffic and congestion
  • For less politics

In addition, because of Shelter in Place (SIP) and Work From Home (WFH) companies have allowed employees to “zoom” in and work from home and not necessarily locally.  Even, my staff an I have not been in the office since March of last year and were realizing, why even have an office any longer.  In addition, so many companies like Tesla and Oracle are moving allowing employees to live and work elsewhere.  We once saw Apple move to Texas but they quickly came back.  Let’s see if that happens again with Tesla and all the other companies considering fleeing the state or Bay Area.

Lastly, I published a video on this subject with my good friend Cherie Schaller.  Cherie is a top producing agent for Sotheby’s in the Rocklin, CA area that is seeing this trend more often:

https://www.youtube.com/watch?v=lXPx33Cio2U&feature=youtu.be

If you are considering moving to to Rocklin, Roseville or surrounding areas where real estate is a fraction of the cost here. please contact Cherie at:

https://www.cherieschaller.com/

For more info on relocating out of the Bay Area or determining your purchase power, please go to https://101loan.com/purchasing-start/ or contact me at:

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com    rob@101loan.com

408-377-4123 o  650-465-8957 c

101 Loan LLC – 6020 Hellyer Ave #150, San Jose, CA 95138

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

What Your Financial Planner May Not Be Telling You

Financial Planning can be a complicated equation with several moving parts that are constantly changing.  I recently heard that, a house with a crumbling foundation is worthless.  A house, like a financial plan, must have a solid foundation or eventually it can be weakened or even worthless!

This made me wonder why I rarely hear about insurance products as a foundational tool for a properly designed financial plan.  Insurance to some may seem expensive, yet what’s the true cost of NOT having insurance?   I have heard the term “Self-Insuring” or handling the potential risk on your own, seems to be a risky approach to protecting one’s current estate, future retirement lifestyle and legacy for their loved one’s.

We recently learned that there are three primary risks in retirement that jeopardize a retiree of achieving their dream retirement: (1) Market Volatility Risk; (2) Tax Risk; and (3) Longevity Risk.  In other words, losing money in the stock market, while taxes increase and living a long time, could have high risks once retired.

Life Insurance comes in various forms, based upon one’s protection needs:

  • Term life insurance is known as temporary life insurance.  It covers you for a specific period of time.
  • Permanent life insurance is known as cash value life insurance.  It’s used to address permanent concerns and typically covers one until death.
  • Life Insurance provides benefits that can strengthen your overall financial plan.

Long-Term Care (LTC) insurance is a “safety net” for an extended period of time:

  • The need for care may be due to cognitive or physical impairment.
  • LTC can be paid monthly, annually or in a single premium.
  • A 65-year old couple has a 70% chance of one of them needing LTC in their lifetime.

Disability Insurance (DI) is income protection that we can rely on while we are working:

  • If unable to perform one’s job duties, DI will replace a portion of their income, tax-free.
  • DI allows for the continued funding of lifestyle and retirement plans.
  • Severance disability insurance plans can be included in severance packages.

For a recent presentation on the above, please see: 

Finding a Life Insurance, Long Term Insurance or Disability Insurance Advisor that understands how to stabilize the foundation that your financial plan sits on, is key to a successful plan.

For advice on any of the above. please contact:

Nico Wiborg – (650) 465-8957  nwiborg@ft.newyorklife.com

Todd Wellnitz – (415) 846-1521  todd@wellguardfinancial.com

(The above information is for educational purposes only.  For more information on the above, please contact your financial planner, tax planner, estate planner or attorney)

Any questions on the above or lending, please contact me at:

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 6020 Hellyer Ave #150, San Jose, CA 95138

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.