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Apache is functioning normally

Incentivized by a 200 basis point decline in mortgage rates, 14 million homeowners in America refinanced their mortgages between the second quarter of 2020 and the fourth quarter of 2021, according to a recent research report by the New York Fed. 

Approximately 5 million homeowners extracted $430 billion in home equity from their cash-out refinancings ($81,000 on average), while 9 million received a rate-term refi and shaved more than $200 on average from their monthly mortgage payments.

All told, approximately one-third of outstanding mortgage balances got refinanced during the refi boom, and an additional 17% of mortgages outstanding were refreshed through home sales, the New York Fed found.

In other words, 50% of homeowners with a mortgage in America have little financial incentive to sell. They’re actually disincentivized given that they’d face a housing market where home prices are 36% higher than they were pre-pandemic and the cost of financing is up significantly.

It seems increasingly likely that the COVID refi boom will prove to be the most consequential event in housing in modern American history. It reset the board. Mortgage lenders were so successful at refinancing their own customers that they have a hugely diminished customer base just two years later. Some lenders won’t survive. Real estate brokerages have a related problem — transaction volume is down. Way down. Their bread-and-butter move-up customers can’t make the math work and/or are reluctant to give up what they’ve got.

Take my wife’s cousin Christopher, for example. Christopher and his spouse bought a townhouse in Charlotte, North Carolina, in 2021 and scored a mortgage rate in the 2.8% range. They want to start a family soon and would like more space and yard, but feel stuck. They don’t want to give up that mortgage rate. Although they could rent out the townhouse and make a profit, it wouldn’t be enough to offset the cost of a new home in the suburbs. 

At this point, Christopher is waiting until a major life event happens or the market becomes much more favorable. 

A lot of households are in this sort of holding pattern. In a recent survey by Realtor.com, 82% of 1,200 potential sellers felt “locked in” by their currently low mortgage rate.  

So where do housing pros turn? There’s always the first-time homebuyers who are ready to take the leap. And a proportion of people will move for new jobs, divorce, death of a spouse, etc. But the fact that most home sellers also need to buy at the same time complicates matters and will suppress transaction volume until affordability improves.

The medium-term answer may rest with the boomers (since they have all the money). In that aforementioned Realtor.com survey of potential sellers, more than half of those who identified themselves as boomers said they did not feel “locked in” by their current mortgage rate. (It’s worth noting that 87% of Gen Xers said they did feel locked in, but one-third said they planned to sell anyway, perhaps because they have lower debt levels.)

A related potential target is the roughly 40% of households that don’t have a mortgage and own their property “free and clear,” according to Census Bureau data. This group tends to be older and must plan out their final chapter in life. That might mean moving to be closer to family and downsizing, extracting equity from their home to pay for age-in-place upgrades (HELOCs and reverse mortgages), or finding a more affordable lifestyle in a cheaper area. If we’re going to see inventory unlocked, this is one segment it will have to come from.

Where do you think existing home inventory will come from? And when? Share your thoughts with me at [email protected].

In our weekly DataDigest newsletter, HW Media Managing Editor James Kleimann breaks down the biggest stories in housing through a data lens. Sign up here! Have a subject in mind? Email him at [email protected]

Source: housingwire.com

Apache is functioning normally

This guest post from Sydney is part of the “reader stories” feature at Get Rich Slowly. Sydney blogs about personal finance, entrepreneurship, self improvement, travel and lots of other fun stuff on Untemplater.com. Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.

It’s hard to believe it’s been about 20 years since my parents first separated, and it’s actually a blessing it happened when it did. No parent ever wants to put his or her child through the nastiness, heartache and sadness that comes with divorce, but having lived through my parents’ split, I can tell you that it actually can be the best option.

When I was a kid, I didn’t understand why my parents couldn’t get along. Neither one of them was mean or evil; they didn’t cheat on each other. They had jobs, loved me, supported my interests and activities, and they didn’t seem that different from my friends’ parents. Well, except for the arguing. It got really nasty toward the end of their marriage. There is absolutely nothing positive or healthy for a child of any age who has to live in a house with two yelling parents.

Money and debt drove my parents apart

I tried to avoid them when they were angry at each other, but it was hard not to listen to them even from down the hall with my door closed. What was the No. 1 thing they would always fight about? Money. Their finances were terrible. It wasn’t until I became an adult that I learned just how bad they were with money. Even though both my parents worked full time, they had low-paying jobs and a staggering amount of debt.

I’m convinced that my parents’ radically different views on money were main reasons they were incompatible as a couple. My mom loved to spend money that she didn’t have. She probably had about 20 different credit cards. My dad was pretty much the complete opposite. He was extremely frugal and did everything he could to save money by fixing things around the house on his own. He always found ways to reuse things, hated shopping, and could stretch a dollar in so many different ways. Every time he tried to talk to her about bills and budgeting, she’d try to brush off the ugly stuff and then they’d both end up blowing up.

Here are 10 things I want to share with you that my parents inadvertently taught me about love, work and money.

1. Don’t rush into marriage. Don’t tell them I told you, but my parents had a shotgun wedding and they started things out rushed and frazzled. They were lucky to be in love at the time, but they had no savings, and didn’t really know what they were getting themselves into. I didn’t want the same thing to happen to me, so I took my time finding and getting to know my soul mate. We openly talked about our relationship, goals and desires before deciding to settle down, and things have been incredible!

2. Talk about money while you’re dating. Being on the same page with your partner about money and financial goals is so important. I’m not saying you need to talk budgeting and financial goals in the first few months of dating someone, but if you want to take things to the next level, you owe it to yourselves to talk about money way before tying the knot. If you have drastically different thoughts on budgeting and saving, be forewarned this will bring a lot of stress and tension over time, and things could get very, very ugly.

3. Go to college and don’t expect your parents to pay 100 percent. My parents didn’t graduate from college, and this put a limit on their career paths and eligibility for promotions and raises. They were incredibly supportive of me going to college, and I was lucky to have paid for half of my tuition through financial aid and grants. Having to foot the other half of the bill myself taught me to be disciplined and work hard for good grades and internships. Paying for some or all of your schooling yourself is incredibly motivating and makes you really appreciate your education and the opportunities it presents.

4. Become financially independent. The fact that my parents didn’t have a lot of money was a big reason why I studied and worked so hard. I’m saving as much as I can and fighting hard to get paid what I’m worth. Being financially independent is an incredible feeling and gives you so many freedoms. I love the quote from Mary Schmich’s essay “Wear Sunscreen”: “Don’t expect anyone else to support you. Maybe you have a trust fund. Maybe you’ll have a wealthy spouse. But you never know when either one might run out.”

5. Avoid credit card debt. Credit card debt is bad. Just don’t do it. If you can’t afford something, just leave it in the store. I wish my mom learned this when she was young. Credit card debt has put both of my parents through hell. I shudder to think about how much money they threw away over the years in interest, fees and penalties.

6. Update your budget at least twice a year. My parents never made a budget when they were married. I, on the other hand, am crazy about budgets. I love tracking my savings and looking at my short- and long-term financial goals. The markets are always changing, so I also recommend diversifying your income streams and monitoring all of your investments regularly.

7. Don’t waste money on junk. I couldn’t even count how many car loads of clothes, books, household goods and junk I’ve donated to Goodwill over the years. A lot of it was from things my mom bought for me over the years, as well as stuff I accumulated in my 20s that I really didn’t need. I’ve adopted a moderate minimalist lifestyle now, and I’m happy not shopping. Instead, I take care of my things so they last. I have absolutely no interest in designer jeans, handbags or shoes. The money I do spend is on traveling, activities, helping my family and saving for an early retirement.

8. Have difficult conversations. My parents had a lot of problems communicating with each other and it brought so much stress and unhappiness into their marriage. I’ve learned that relationships build on trust and deep conversations. Relationships can also grow stronger through having difficult conversations and facing the awkward, scary, uncomfortable and unpleasant things head on.

9. Don’t quit your job without a plan. There were several times that my dad quit his job on the spot without anything else lined up; that really put our family between a rock and a hard place. I learned never to quit a job without a plan in place and another job waiting. It’s easy to take our jobs and benefits for granted until we lose them, and then we desperately need income and coverage. My advice is to calculate your cost of living and make sure you have at least 12 months’ worth in savings before making any radical career or life changes.

10. Think positively and help others. Keep a positive attitude whenever you can. You’ll be surprised how much better your life will become! We don’t need a lot to be happy. Look around you and be thankful for what you do have. I’m very grateful that my parents taught me to look on the bright side of things and help others. They weren’t always happy or trouble-free themselves, but they always took care of me and reminded me that even when things are bad, there are always other people out there who need help much more than we do.

Sometimes I wonder what life would have been like if my parents didn’t have all those money problems and stayed happily together. I know one thing, the holidays and visits would have been so much easier without having to shuttle back and forth! But I think their struggles led me to become the motivated, patient and independent person I am today. It’s what we learn from our experiences that make us better!

Source: getrichslowly.org

Apache is functioning normally

This is a guest post from the Millionaire Mommy Next Door. At her blog, MMND shares her recipe for success, happiness, and financial freedom. This piece originally appeared on her site in a slightly different format.

When my husband and I married (at age 23), I was working as an office assistant at a veterinary hospital earning $7.50 per hour. Unsatisfied with my low wages, I brainstormed ways to generate extra income.

Going to the Dogs

I had worked as a volunteer dog-trainer for the Humane Society since age 14, so I combined my experience and youthful exuberance into a part-time side business. I offered dog-training classes and taught them in the veterinary hospital’s backyard. It was a win-win situation: my employers had a new service to offer their clients, and I was self-employed, with very low operating expenses.

I soon added home- and pet-sitting to the services I provided. Within about a year, my part-time business was earning more than my full-time wages at the veterinary hospital, so I quit my job. Over the next few years, I expanded my business and hired a few part-time employees. It was at that point that I discovered the joys of working from home in my pajamas.

In the Pipes

Meanwhile, my husband served as a company-employed plumber working for hourly wages, earning $30,000 to $35,000 a year.

At age 30, I sold my dog-training and pet-care business (for about $75,000) and we launched a plumbing and heating business of our own. My husband served as the project estimator and plumber; I was the business manager and bookkeeper.

Our customers quickly spread the word about our new plumbing company. Within our first year, we had generated enough business (via personal referrals) to keep us busy and profitable. Building a business based on personal referrals completely eliminated the need for us to spend a dime on advertising.

Doing the Math

We soon faced an important decision. Should we expand our services by hiring other plumbers? Here are the two options we considered:

Option A:
Continue to manage a small in-home business operated by:

  • 1 full-time plumber (my husband; 40 hrs/wk)
  • 1 part-time apprentice (20 hrs/wk)
  • 1 part-time bookkeeper (me; 5-10 hrs/wk)

With this model, we could earn $250,000 annual gross revenue with 50% net profit (low overhead expenses means a higher percentage of revenue remains as profit).

~or~

Option B:
Manage a storefront business operated by:

  • 5 full-time plumbers (200 hrs/wk)
  • 2.5 full-time apprentices (100 hrs/wk)
  • 1 full-time bookkeeper (40 hrs/wk)
  • 1 full-time manager (40 hrs/wk)

Under this scenario, we would earn $1,250,000 annual gross revenue (5 times more revenue, with 5 plumbers, than Option A above) with 10% net profit (higher overhead expenses means a lower percentage of revenue remains as profit).

Which business would you rather own? At first glance, most would likely say, “I’ll take the business that makes one-and-a-quarter million dollars each year!”

Whoa now, let’s slow down and do the math:

  • Option A: Small in-home business brings in $250,000 gross revenue and nets 50% profit = $125,000 annual net profit.
  • Option B: Larger storefront business brings in $1,250,000 gross revenue and nets 10% profit = $125,000 annual net profit.

Now that you’ve checked the math, which would you choose?

My husband and I chose Option A. Option A comes with fewer expenditures of time, energy and capital, as well as reduced risk. Option A nets the same profit as option B. As a bonus, option A allowed me to continue working at home in my pajamas.

Of course, if we hired 10 plumbers, we might make significantly more income. However, upon evaluating our priorities and values, my husband and I decided that we already made enough. We made the choice to work less rather than grow our business. In other words, a balanced lifestyle was, and still is, more important to us than money.

Learning to Invest

Since our plumbing business required only 5-10 hours/week of my time for bookkeeping tasks, I decided to learn how to invest on my own (without assistance from our broker). I dedicated almost two years to the study of equity investing via books, web sites, and conversations with investors. Once I had acquired the knowledge, confidence and skills necessary to invest successfully on my own, I fired our broker, saving us thousands of dollars in commissions and fees.

Once we reached our crossover point (the average annual return from our investment portfolio exceeded our annual expenses, plus inflation), we scaled back on our business. My husband currently works only two or three days a week. Now, he can be selective in the projects he accepts. For instance, he no longer unplugs toilets, but he still enjoys creative remodeling projects. If he chooses to retire or to do something completely different, we’ll sell our plumbing business.

Achieving Financial Freedom

Before traveling to China to bring our new daughter home, I hired a bookkeeper to replace me so that I could focus my time, energy and attention on parenting and pursuing my hobbies. Additionally, I’ve learned how to effectively manage our investment portfolio in such a way that this task requires just one or two hours per month of my time.

We have truly attained freedom, financial and otherwise. Whether it be work, parenting, or play, we wake eager to spend each new day doing whatever we choose. What a gift!

Recommended reading:

Want to learn my recipe for success, happiness, and a million dollars? Start here: Baby Steps to Financial Freedom.

Source: getrichslowly.org

Apache is functioning normally

You’ve been investing in your 401k for quite some time and are probably still clueless in where your money is going.  (Don’t worry…you’re not alone)

But you’re thankful that they offer these “target date” or “life cycle” funds that make investing in your 401k so easy.

What are target date funds? You know… the funds where all you have to do is choose the year you plan on retiring and voila – you’re all set.

Winner, winner, chicken dinner…..how easy is that?

Here’s the BIG problem.  Target date funds, although easy, can sometimes eat away at your returns.

Or stated just a bit more bluntly– They suck!

*You know I hate Target Date Mutual Funds when I take the time to record a video.

Target date funds were created to take away the hassle of having to research the mutual funds in your 401k and build and construct your own portfolio. But in my experience, taking the time to do the research and, essentially, build your own target date funds in your 401k, is a much better option.  It’s this “a la carte” approach that can potentially give you much higher returns over your working life.

 What Makes Target Date Funds so Bad?

First, let’s understand how they work.   Most often these funds are created by a specific mutual fund company.   Then that mutual fund company will take 12-18 of their mutual funds and create this diversified portfolio on your behalf.  As you age towards your “target date” of retirement, the 12-18 funds will start shifting to something more conservative (movi.ng from less stocks to more bonds)

Sounds like win-win, right? You would think.  Here’s the problem….

When you start breaking down the individual mutual fund options inside these target date funds, you start to uncover that there are some or several of these funds that are just plum horrible.

 What I’ve Seen With Target Date Funds

Over the years, I’ve seen countless target date mutual funds that my clients have brought in and thus far, I haven’t seen one that I’ve been impressed with.

Recently, I had three different clients bring in their 401(k)’s, all of which having target date funds.

The common theme was…..you guessed it…. they suck.

Show Me Some Examples

Here’s some examples of three clients’ 401(k)’s where we compared the target date portfolio and looked at their ten-year returns, we adjusted that for inflation, and see how that compared with the new portfolio.

Now, keep in mind, the new portfolio consisted of the mutual fund options that were available to them in their 401k.

See, whenever you have a 401k, the target date fund is usually the easiest option, and sometimes your default option, but you typically have the ability to go in and create your own portfolio.  Most people don’t because they simply just don’t know and don’t feel comfortable doing it.

I can’t blame people for not feeling comfortable or qualified to do so.  I’m hoping by showing you some numbers below that you’ll at least consider it.   Let’s take a look…..

Sample Client One

With each client we kept the ratio of stocks and bonds relatively the same.   As you can see,  the first portfolio netted a 3.61% more return over a 10 year period.  3.61%!  Remember, we are just using other mutual funds that are already in the 401k.

Portfolio 10Yr Return Adjusted for Inflation
Assumed(3.4%)		 10Yr Beta
Target Date Portfolio 4.22% .79% .90

New Portfolio 7.83% 4.28% .76

Difference +3.61% +3.49% -.14

For the super analytical people, I had to include other factors as beta, standard deviation and alpha.  If you don’t know that means, it’s OK.   You don’t need to.   What you may be more interested in dollars.

Portfolio 10Yr Standard Deviation 10Yr Alpha
Target Date Portfolio 14.83 1.33

New Portfolio 12.80 4.79

Difference -2.03 +3.46

What does 3.61% really mean over the long term? Well, let’s just say… A LOT. As you can see below, in 5 years on a $100,000 portfolio, it’s over $22,000. Wow! And as you can see it only gets bigger and BIGGER….

Portfolio of $100,000 5YR 10YR 20YR
Target Date Portfolio $122,958 $151,186 $228,571

New Portfolio $145,780 $212,518 $451,640

Difference $22,822 $61,332 $223,0069

Those numbers don’t really reflect what happens in a 401k. If you have a 401k, then most likely you’re adding to it on per paycheck basis.

Using the same returns, I wanted to demonstrate if you were adding $5,000 per year into it. As you can see the 20 year number is a $295,000 difference. Okay, that deserves a special call out……

The 20 year difference is $295,000! Wowzers.

Still think you’re target date fund is good enough for your retirement?

Portfolio of $100,000 with $5,000 per yr contribution 5YR 10YR 20YR
Target Date Portfolio $150,159 $211,832 $380,907

New Portfolio $175,014 $284,369 $676,186

Difference $24,855 $72,537 $295,279

Sample Client Two

You can go through the rest of the examples and see more of the same. What’s the recurring theme? You guessed it. Target date funds suck.

Portfolio 10Yr Return Adjusted for Inflation
Assumed(3.4%)		 10Yr Beta
Target Date Portfolio 7.00% 3.48% .69

New Portfolio 9.80% 6.19% .72

Difference +2.80% +2.71% +.03
Portfolio 10Yr Standard Deviation 10Yr Alpha
Target Date Portfolio 11.71 4.04

New Portfolio 12.57 6.66

Difference +.86 +2.62
Portfolio of $100,000 5YR 10YR 20YR
Target Date Portfolio $140,255 $196,715 $386,968

New Portfolio $159,592 $254,697 $648,704

Difference $19,337 $57,982 $261,736
Portfolio of $100,000 with $5,000 per yr contribution 5YR 10YR 20YR
Target Date Portfolio $169,009 $265,797 $591,945

New Portfolio $189,996 $333,624 $928,656

Difference $20,978 $67,827 $336,711

Sample Client Three

Different Client. Different 401k. Different target date mutual funds. Same sucky results….

Portfolio 10Yr Return Adjusted for Inflation
Assumed(3.4%)		 10Yr Beta
Target Date Portfolio 5.55% 2.08% .98

New Portfolio 7.78% 4.26% .89

Difference +2.23% +2.18% -.09
Portfolio 10Yr Standard Deviation 10Yr Alpha
Target Date Portfolio 15.96 2.59

New Portfolio 14.80 4.72

Difference -1.16 +2.13
Portfolio of $100,000 5YR 10YR 20YR
Target Date Portfolio $131,006 $171,626 $294,554

New Portfolio $145,442 $211,535 $447,470

Difference $14,436 $39,909 $152,916
Portfolio of $100,000 with $5,000 per yr contribution 5YR 10YR 20YR
Target Date Portfolio $158,939 $236,153 $469,828

New Portfolio $174,647 $283,215 $670,779

Difference $15,708 $47,062 $200,951

Managing Your Own 401k

Now, I understand that most people don’t know what the heck they’re looking at in their 401k, so it’s hard for them to do their own research, but that’s where a financial planner comes into play.

Find an advisor that knows that they’re doing and have them construct you an optimized 401k  portfolio.  Even if you have to pay that person $1000 to help with your 401k, that $1000 is nothing, especially when you look at the numbers above.

401k Review Service

Since I realize people need help with their 401k, it only made sense to include that as a part of my practice.   Don’t worry, it’s not $1000.  🙂 If you need help with your 401k, check out my 401k review service.

Need help with your 401k?

If you’re struggling to make sense with your 401k, stop going at it alone.  Read more about my 401k review service to get your retirement on track.  Click here to learn more.

Source: goodfinancialcents.com

Apache is functioning normally

To qualify for Medicare under age 65, you generally need to have a disability that makes you unable to work for at least a year. Examples include certain cancers, respiratory illnesses and musculoskeletal disorders.

The Social Security Administration, or SSA, calls its definition of disability “strict.” But there still are some options if your condition doesn’t appear on the official list to qualify for SSDI.

🤓Nerdy Tip

The Social Security Administration administers two income assistance programs for people with disabilities: Social Security Disability Insurance, or SSDI, and Supplemental Security Income, or SSI.

While they have similar names and purposes, the two programs don’t work the same when it comes to Medicare. SSDI can qualify you for Medicare under age 65. In most states, SSI can qualify you for Medicaid, instead.

What medical conditions qualify for Social Security disability?

There’s no exhaustive list of conditions that do or don’t qualify for SSDI. For adults, the SSA has a list of impairments in 14 categories that might qualify for SSDI if they’re sufficiently severe.

Examples of individual impairments on the list include limb amputations, post-traumatic stress disorder, chronic heart failure, loss of speech and chronic liver disease. Meeting certain clinical and functional criteria on the list is one way to qualify for SSDI.

Not having a condition on the list doesn’t mean you can’t qualify. There’s also a process to determine whether other conditions are severe enough to meet the SSA’s requirements.

How to determine whether your condition qualifies

There’s a five-step process to determine whether your condition meets the required definition to qualify for the SSDI program. If you qualify for SSDI, you can later become eligible for Medicare based on disability.

Here are the five questions the SSA uses to evaluate the disability status for SSDI applicants

:

1. Are you working?

If you’re working, there’s an income cap to qualify for SSDI. In 2023, you generally can’t make more than $1,470 per month. If you’re blind, it’s $2,460 per month

.

2. Is your condition “severe?”

Your condition must significantly limit your ability to do “basic work activities” for at least 12 months because of changes to things like strength, mobility or memory.

3. Is your condition found in the list of disabling conditions?

If your condition is on the list and you satisfy the first two questions, you have a qualifying disability. The next questions don’t apply.

If your condition isn’t on the list, you’re not necessarily disqualified. The SSA has to determine whether your condition is as severe as those that are on the list. If so, you will continue through the process.

4. Can you do the work you did previously?

If your condition isn’t on the list, the SSA considers whether it prevents you from performing any of the work you’ve done in the past. If so, you continue through the process.

5. Can you do any other type of work?

If your condition prevents you from doing work you’ve done before, the SSA also considers whether there are other kinds of work you could still do.

Your medical condition isn’t the only factor here. The SSA also considers age, education, work experience and skills.

If there’s no other work you could do, then you have a qualifying disability.

Medicare disability work requirements

You must have a qualifying disability to receive SSDI benefits, which can make you eligible for Medicare based on disability. But having a qualifying disability isn’t enough on its own. SSDI also has requirements for your work history.

The SSA measures work history with the same Social Security work credits needed for Social Security retirement benefits.

Most people applying for SSDI need 40 work credits, or 10 years of work, to qualify. A work credit is a metric used by the federal government to measure time in the workforce; one credit is equal to a quarter of work, subject to certain income minimums. Half of that qualifying work — 20 credits’ worth, or five years — needs to have been within the 10 years before the year your disability began

.

You can earn a maximum of four credits per year. In 2023, you earn one credit for every $1,640 in wages or self-employment income. You would need to make $6,560 to earn all four credits in 2023.

The number of work credits you need depends on your age. If you’re under 60, you can qualify for SSDI with fewer than 40 work credits.

How long does it take to receive benefits?

For most applicants: 24 months after qualifying

After you become entitled to SSDI benefits, there’s generally a 24-month waiting period before you qualify for Medicare based on disability

.

There are special exceptions for people who receive SSDI benefits and have certain conditions.

For those with certain conditions: Sooner

Lou Gehrig’s disease, or amyotrophic lateral sclerosis

If you have amyotrophic lateral sclerosis, or ALS, you become eligible for Medicare the first month you receive SSDI benefits.

End-stage renal disease

If you have end-stage renal disease, or ESRD, you generally become eligible for Medicare on the first day of the fourth month of your dialysis treatments. It could be sooner if you undergo training for home dialysis.

Kidney transplant due to ESRD

If you have ESRD and you’re getting a kidney transplant, you become eligible for Medicare the month you’re admitted to a Medicare-certified hospital for the transplant. You’re covered for a maximum of two months before the transplant takes place, so your eligibility might change if the transplant is delayed or rescheduled.

Source: nerdwallet.com

Apache is functioning normally

Learn About Tableau

Whether you’re after the warm sunshine, the dry climate or the delicious food, Tucson, Arizona, has something to offer tourists and residents alike. This Southwestern city is home to the University of Arizona, but it’s so much more than a college town – it’s a cultural haven for art lovers, a destination for outdoor thrill seekers and a scenic wonderland for anyone who loves blue skies and the prickly spires of a Saguaro cactus.

With a population of nearly a million, Tucson is the second most populous city in Arizona. There are plenty of reasons to look for an apartment here, but which neighborhood will be right for you? Apartment Guide ranks the most-searched neighborhoods on the site within Tucson from Jan. 1 through June 20, 2014. Which of these is your favorite place to enjoy a margarita and soak up the sun?

Right in the heart of Tucson, the Downtown area is the city’s most-searched neighborhood on Apartment Guide – and it’s not hard to see why. With colorful buildings, blue skies, scenic mountains in the distance and giant cacti dotting the landscape, Downtown Tucson is where Southwestern culture meets modern amenities.

Downtown Tucson is a perfect neighborhood for the culture vulture – music, museums, restaurants and shops are everywhere you look. The area is an amazing mix of old and new; modern attractions sit alongside remnants of Tucson’s history. Get a taste of what life in Tucson was like prior to the 20th century at the Presidio San Agustin del Tucson, a former Spanish fort that’s now a hands-on interpretive center. Take a walk down Congress and you can’t miss the historic Hotel Congress, where infamous bank robber John Dillinger was arrested.

History buffs can get a break from the sun at the Southern Pacific Railroad Station, built in 1907, while families can enjoy the Carnegie Library, which is now the home of the Tucson Children’s Museum. And if you don’t feel like walking, hitch a ride on the new streetcar! The four-mile route is a green way to get around the Downtown neighborhood.

Just to the north of Downtown is Central Tucson, one of the oldest and largest neighborhoods in the city. Encompassing the Broadway Village shopping center and the University of Arizona, Central Tucson is known for being especially bike-friendly. If you enjoy getting around on two wheels, the tremendously popular Third Street/University Bicycle Boulevard provides a safe way for cyclists of all ages to get to Tucson’s best restaurants, shops, and other attractions. It’s bike-only except for light local traffic.

You’ll also find plenty of museums and art galleries in the neighborhood, which is why it’s home to the Central Tucson Gallery Association. During the summer, on the first Saturday of each month, the galleries stay open late so people can stop in for some culture and refreshments.

Northwest Tucson is an ideal spot for families and anyone who enjoys a good mix of outdoor and indoor activities. It encompasses Mansfield Park, which includes plenty of water to cool off in during a hot summer day. This three-pool complex has a diving bay with 1- and 3-meter boards; a wading pool; a 25-meter lap pool and even a water slide.

Located just north of Tucson, Catalina Foothills is one of the most affluent areas in Arizona. Popular for tourists and residents alike, it’s near several popular outdoor recreation areas: Sabino Canyon, Bear Canyon, Pima Canyon, and Ventana Canyon. The neighborhood is also known for its resorts, as well as the DeGrazia Gallery in the Sun, which is on the National Register of Historic Places.

Choose from dozens of well-reviewed restaurants, ranging in cuisine from Mexican to Japanese and nearly everything in between. When it’s time for a stroll through town, stop at any of the upscale shops or galleries that dot the streets. Catalina Foothills is the perfect place for a renter who enjoys the finer things in life.

Eastside is a small neighborhood of Tucson that includes Case Park. Bordered by E Broadway Boulevard to the north, E 22nd Street to the south, S Houghton Road to the east and S Harrison Road to the west, Eastside is an ideal place for lovers of the outdoors. Case Park includes hiking trails, large grass fields, picnic tables, a playground, and even a butterfly/hummingbird garden.

Eastside is also known for its giving spirit. The Eastside Neighbors Volunteer Program is a popular local nonprofit to help senior citizens in the area.

Go Wildcats! Home to about 40,000 students, the University of Arizona is best known for its College of Medicine, College of Law and its top-ranked geology program, according to U.S. News & World Report. UA’s degree programs in pharmacy, analytical chemistry, photography, and philosophy are also very popular.

The neighborhood surrounding the University of Arizona is full of apartments for college students who don’t want the dorm life. E University Boulevard is one of the busiest streets in town, full of hotspots for students to meet up and have fun. When it’s time for some quieter entertainment, there are plenty of museums and galleries in the neighborhood to visit.

With a median age of 18, the University of Arizona Campus neighborhood is perfect for students who want easy access to the university and local amenities.

Just across the Rillito River from the Catalina Foothills is Winter Haven, an apt name for a place where so many people come to enjoy mild temperatures while the rest of the country is snowy and cold. But that doesn’t mean the holiday spirit isn’t present – just the opposite! Winter Haven is famous for its annual Festival of Lights during the holiday season, which always benefits a local food bank. People can drive through the neighborhood to take in the lights, or take a hayride or trolley ride instead.

Another hotspot for cyclists, Starr Pass is known for its road and mountain bike paths. Located just east of the Tucson Mountain Park, which adjoins Saguaro National Park, Starr Pass is home to several golf courses, the popular JW Marriott Resort & Spa, as well as stunning views of the Southwestern landscape.

Plenty of tourists come to Starr Pass to saddle up their two-wheeled steeds and bike among the cacti, and when they return after a long day on the trails – perhaps after visiting the Arizona-Sonora Desert Museum or the International Wildlife Museum — they can relax at any number of bars and restaurants in the neighborhood.

Right near the center of town is the Broadway/Pantano East neighborhood, a residential area that touches the banks of the Pantano Wash. The neighborhood gets its name from its boundaries – E Broadway Boulevard is to the north and S Pantano Road is to the west.

Jesse Owens Park is a great place for a game of catch or to let the kids run around before they return to school at Harold Steele Elementary. You can also stock up on delicious local produce at the Jesse Owens Park Farmer’s Market, where neighbors meet every Friday to catch up and peruse the vendors’ booths.

Although it’s technically its own city, South Tucson is surrounded by the city of Tucson. It’s just one square mile but packed into that square mile are many Mexican restaurants, colorful buildings, and outdoor murals. Its population is mostly made up of Mexican-Americans and Native Americans.

Santa Rosa Park and Santa Rita Park are both great places to soak up some afternoon sun. The Children’s Museum of Tucson is near the northern border of the neighborhood. Hwy 10 – one of Tucson’s main arteries – is just to the west, making it easy to get just about anywhere else in the city.

That’s our take on Tucson! What’s your favorite thing about this vibrant Southwestern city?

Apache is functioning normally

My mother was quadriplegic by the time I was in high school. My dad was a real estate agent who worked on commission, so he worked long hours to make ends meet. As a result, I took on a lot of responsibility at a young age.

I cooked and cleaned and did all the grocery shopping. I did the laundry and paid the bills (in the “balancing the checkbook and writing the checks” sense, not the earning money sense). I took my mother to the bathroom, fed her, and tracked her pill regimen. And most importantly, I believed that a college education was a good value.

I knew my parents couldn’t afford to send me to college, and I wasn’t allowed to have a job because of my responsibilities at home. So in lieu of saving for college, I threw myself into everything school had to offer.

I was salutatorian. I was on the dance team and the academic team. I was secretary of the service club and president of the math club. And it worked: not only did I get out, I graduated from college with a 4.0. Then I went on to get an MA and a PhD. Unfortunately, I got $100K in debt to go along with it.

I mention this only because it begs the question: what leads a (relatively) smart person to make almost ten years’ worth of poor financial decisions? As immoral as universities may be, there’s more to any individual’s decisions than external influence.

Undergrad: An Auspicious Beginning?

When she was young and healthy, my mother had a full ride to Boston University. She dropped out because she wasn’t doing well in her pre-med classes; what she really enjoyed was writing. I remember asking her, “Why didn’t you just change your major?” She said it never occurred to her.

She eventually did get an Associate’s degree from the local community college. However, she always regretted not completing a Bachelor’s degree. Her experience led her to believe that the best degree was the one that you finished. She also believed that if you picked something you enjoyed, you were more likely to do well and be happy.

When I started thinking about college, my dad said “smart people major in business.” He suggested, “not that I’m telling you to follow in my footsteps, but female real estate agents make a lot of money.” My mom would nod sagely at his advice. Then after he left the room, she would stage-whisper, “do whatever makes you happy!”

I attended a state school, since the Florida Bright Futures lottery scholarship paid for 100% of my tuition and a book allowance. I was a National Merit Finalist. I received Pell grants and a variety of other scholarships. Since my education was paid for regardless of major, I followed my mom’s advice and did what made me happy. I was a creative writing major and a psychology minor. I worked as a server and a tutor at the writing center. As a result, I graduated with no debt.

Grad School: The Downward Spiral Begins

I was intimidated by the thought of graduating and getting a “real job.” Instead, I decided to keep doing what I had always been successful at: school. I started an MA in creative writing. I also worked on campus 35 hours a week, teaching and tutoring. However, graduate tuition was expensive. Luckily, Stafford was there to fill the hole. I knew it was a loan, but I’d never borrowed any money before. I didn’t have a concept of what borrowing really meant in terms of paying it back.

During this time I loved my job so much that I decided I wanted to run a writing center. My boss had a PhD in rhetoric and composition. I researched programs, applied to three, and accepted an offer from a top five program. It entailed moving across the country, which I couldn’t afford; I wouldn’t get financial aid until fall. Enter credit card debt.

The cost of living in my new city was also much higher. Again, Stafford and Visa filled the hole (though there were still a couple of weeks between moving and financial aid kicking in where I didn’t wash my hair because I couldn’t afford shampoo).

Yes, I was taking out more loans. But I was only making $14,000 a year and my paychecks were $750 apiece. The average starting salary of $50,000 was three and a half times what I was making. That could only mean my paychecks would be three and a half times bigger. Right?

Somehow the fact that this $14,000 was spread over nine months instead of twelve didn’t seem significant. Taxes and payroll deductions for things like health insurance weren’t even on my radar. I also don’t recall a single time when I saw a total of how much I’d borrowed until my degree was almost complete.

Graduation Approaches: I’m in Over My Head

Even when I saw my total of about $100,000, it was poor math all the way. I thought, Okay, I was in grad school for eight years. That means I borrowed an average of $12,500 per year. I was also making $14,000 per year during that time, so my average income was $26,500 per year. But soon I’ll be making $50,000. That’s twice as much! This is no problem.

My program also claimed it had a 100% tenure-track job placement rate. It didn’t occur to me that this couldn’t be possible until after I was advanced to candidacy and took a job search class. Then, this statistic was amended to “100% of students who wanted to be on the tenure track ended up with tenure-track jobs.” Who doesn’t want tenure?! I thought. This won’t be me. This is no problem.

I did know, of course, that getting a PhD in the humanities wasn’t going to make me rich (although the professors in my program all had 3000+ square foot homes in the nicest area of town). But it was more important to be happy than to be rich. Besides, I grew up poor. I was familiar with it. It didn’t sound scary.

Then I went on the job market. My hottest lead turned out to be in Punxsutawney, Pennsylvania, and I had a few realizations. I didn’t want to live 200 miles from the nearest urban center. Not only that, I couldn’t even if I wanted to: Jake and I had been dating for over a year. Our relationship was getting serious enough that he needed to be a factor in my plans.

By this time he’d graduated from law school and had a job making $90,000 per year. He was traumatized from the bar exam. The thought of taking another one only a year later gave him cold sweats. Even if he was willing to do it, he couldn’t afford to make much less. A salary of $90,000 a year would be impossible to come by in a tiny rural town. Now my job search was what they called Geographically Restricted. That’s academic speak for “it’s your own fault if you don’t end up on the tenure track.”

Suddenly, Unexpectedly

So I moved to Jake’s city and geared up for another year on the job market. I got a full-time administrative position in summer 2008, right before the economy tanked. The week after they hired me, my institution implemented a hiring freeze. Six months later, they instituted furlough.

I combed the national job lists in my field, but I was Geographically Restricted. Even if I wasn’t, it was one of the worst job markets in memory (and memory didn’t have a lot of good years anyway). And then, there was the unexpected — though, given that I think I’m psychologically predisposed to happiness, maybe I should have expected it.

It turns out I LOVE my job. I love the work I do and the people I work with. I love the city I live in (even if it’s 109 degrees outside right now). I have family in the area. Jake grew up here. At this point, he has over five years of business connections here, and I have four.

At some point, the the life I was living “for now” had become The Life I Want to Live. I have a ten minute commute. I leave work at 5 p.m. every day and don’t need to think about it until the next morning. I don’t check email during my off hours. I don’t work in the evenings. I have pets, I am a hobby chef, I read novels. I think I would have enjoyed the tenure track, but I don’t need it to be happy.

I just need to get our financial situation under control so I can keep living this life.

What About You?

This is my story. This is only my story. I cannot speak for others with student loan debt. But I know many, many people with high student loan debt (including lots of folks with totals higher than mine). So I know you’re out there, fellow student loan debtors!

Let’s build on last week’s discussion (go check out the comments there as well!). What’s your situation? How is it different than mine? How is it similar? I am especially interested in:

  • Your total student loan debt
  • What degree(s) you have
  • When you went to school
  • Whether anyone talked to you about student debt or the job prospects in your field
  • Whether the information you received about student loan debt or the job prospects in your field was accurate
  • What you wish you had done differently/advice for others
  • How you’re dealing with your debt

There are obviously many decisions I could have made differently. It’s undeniable. But since I can’t go back in time and make different decisions, I’m declaring a statute of limitations on regret. Plus, I’m taking responsibility for my errors in judgment and paying the loans back. I have to, since you can’t discharge student debt in bankruptcy.

However, as Robert Brokamp pointed out, there are systemic problems with student debt in this country (check out this paper for some facts on six-figure student loan debt). Those of you who have been through the system, how would you change it?

Source: getrichslowly.org