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Apache is functioning normally

As with many things in life these days, it all started with an episode of the Peter Attia podcast.

In this edition, our nation’s most Badass Doctor was interviewing a guest I initially dismissed as not overly applicable to my own lifestyle. A young,excessively handsome dude who happened to be a writer with a new book out. But the headline of the episode was just intriguing enough to get me to click.

“The Comfort Crisis”

Wow, what an amazing turn of phrase, and what a concise summary of the core of this whole Mustachianism thing I’ve been trying to express for the past dozen years. 

While the news headlines cry constantly about our nationwide personal debt crisis or health crisis or any other number of things that suggest that life is so hard these days, I have always seen the opposite: on average, we Americans seem to have a problem of ridiculous overindulgence and easiness in our lives, and our main problem is not recognizing it, and the damage it does to us. 

So of course I had to click, and then listen to the whole two hour episode, and then buy the book, and then spend the past month reading and digesting it in small, meaningful chunks like the modern-day chunk of scripture-like wisdom that it is. And wow, am I glad I did so.

The author is Michael Easter, a former writer for Men’s Health magazine was also once catastrophically addicted to alcohol – and descended from a long family line of ancestors with the same affliction. 

He was lucky to catch himself from that fall in time to save his own life, and that story alone makes the book worth reading as someone who has stood by helplessly as loved ones battled with addiction. But I think his history with overindulgence in the hollow comforts of alcohol also gives him an edge on writing about the battle between comfort and hardship on the bigger stage of life in general.

So what is The Comfort Crisis about, and how can it make all of our lives better?

The best part about this book is just what a damned good writer this Easter guy is. Like many of the most fun popular science books*, it follows a split narrative which jumps back and forth to interweave the story of an insanely difficult caribou hunting trip he joined in a remote pocket of Alaska, with the appropriate bits of science, psychology and cultural commentary that help us explain and learn from each chapter of the epic shit he had just endured. This allows us to process and apply the lessons in our own lives.

For example, have you ever wondered why the type of bored, rich suburbanites who populate the board of your local Homeowner Association and whine about unacceptably tall weeds or unauthorized skateboarding on Nextdoor are so insufferable?

Why can’t they do something better with their time?

It turns out that there’s a scientific explanation for these unfortunate people, along with most of our other problems:

The tendency of humans to always scan our environment for problems, regardless of how safe and perfect that environment is.

The book cited a study in which researchers told people to look for danger, in an environment which gradually became safer and safer:

“When they ran out of stuff to find they would start looking for a wider range of stuff, even if this was not conscious or intentional, because their job was to look for threats.” 

“With that in mind, Levari recently conducted a series of studies to find out if the human brain searches for problems even when problems become infrequent or don’t exist.“

“As we experience fewer problems, we don’t become more satisfied. We just lower our threshold for what we consider a problem.“

In other words, even when our lives are virtually problem free, instead of appreciating our good fortune we just start making up shit that we can complain about instead. 

And then our politicians cock their greasy, finely-tuned ears in our direction and make up policies to appease our mostly-insubstantial concerns. And they invent their own trivial “wedge” issues to get us to all bicker about our different cultures and religions, suddenly caring about things that would not have even been problems if nobody told us they were. 

And there’s America’s weakness in a nutshell, and meanwhile our strength comes entirely from the times we choose not to waste our time stooping to this level.

Meanwhile, the opposite effect holds true: people who survive in rougher environments than us end up more resilient and less prone to complaining.

In a series of recent interviews, Ukrainian people living in the war zones of their occupied country were asked “is it safe to live where you live?” and a strangely high percentage still said “Yes” – not all that different from the responses of US residents when asked the same question about their own cities.

This adaptation principle also explains why some first generation immigrants tend to build businesses and wealth while their own offspring in second and third generations are more likely to become complacent and spend it down. As an immigrant myself, I can see why this is: conditions were just slightly more harsh and less comfortable and wealthy where I grew up, so I adapted to those conditions as “normal” which made the United States seem posh and easy by comparison. Which made it easier to spend less money and accumulate more.

Tree Therapy

The trap of pointless worry is just one of the many revelations of The Comfort Crisis. It also gives insightful explanations for why spending time in Nature boosts our mental and physical health, while cubicles and car driving grind us down. 

There’s something in our biological wiring that responds instantly and powerfully to everything natural, in ways that you can’t get anywhere else.

Even placing a single plant into a hospital room will measurably improve the recovery of almost all patients from almost all ailments. So can you imagine the power of the medicine you are inhaling if you step into a real, living forest? And what if you spent several hours there, or even several days?

Later, we get lessons on our human adaptation towards the ratio of effort to reward:

It’s proven the harder you work for something, the happier you’ll be about it,”

And our bizarre natural aversion to physical exertion:

A figure that shows just how predisposed humans are to default to comfort:

2 (two).

That’s the percent of people who take the stairs when they also have the option to take an escalator.

Which is remarkable, given the absolutely insane cost this tendency imposes upon us.

Moving your body, even a bit, has enormous benefits – again to almost all people towards reducing the probability and severity of almost all diseases. So can you imagine the benefit of moving your body for several hours per day in a natural environment, and including heavy load bearing and bits of extreme exertion?

These things are not speculative pieces of alternative medicine. They are known, easily and reproducibly tested, and proven to be the most effective things we can possibly do with our time.

So why, the actual fuck, are people still sitting inside, watching Netflix, driving to work, and then driving to the doctor’s office to get deeper and deeper analysis of a neverending series of exotic and mysterious and unsolvable problems with their physical and mental health?

We should at least start with the stuff we know is essential – maximum outdoor time every day, heavy exertion including with weights, minimal time spent sitting and driving, and minimum junk food, sugar, and alcohol. You definitely don’t have to be perfect, but just understand that these are the big levers for physical and mental health.

Only then, once you reach these minimum basic things for human survival, should you expect that more exotic and niche medicines and treatments are the only course of action. 

By all means, follow your doctor’s orders and don’t just dump all of your medications down the sink because of this MMM rant. But at the same time, realize that the stuff that is hard and uncomfortable is very likely to be the stuff that improves your life the most. 

It’s all the stuff that Mr. Money Mustache has been telling you since 2012, but with more detail and less distraction. This book is a concentrated packet of advice for solid living.

Real Life Inspiration from the Good Book

In a happy coincidence, I happened to be in the middle of some hard stuff** of my own as I worked my way through The Comfort Crisis and I found the perspective quite useful and transformative to apply hot off the press. 

Working with a friend to build a cabin.

Normally somewhat of a homebody, I had embarked on a solo journey for some Carpentourism deep in the mountains of Southwestern Colorado. I had my whole life shrunk down into the new Model Y including food, bed, and the necessary tools and materials to tackle a pretty long laundry list of tasks on two different construction projects (fixing up a mini-resort property in Salida, and starting construction on a small cabin in Durango)

The trip immediately took a turn towards the dramatic as I climbed into the mountains and drove straight into the most torrential rainstorm I have ever seen, then accidentally broke a traffic law in a remote mountain town right in front of both of the local police officers ($115 fine and two points off my license), then five minutes after that had a small pebble hit my brand-new windshield which instantly spread into a crack that spans the whole thing, all before finally limping into Salida to unpack and get started on the work.

“Big deal”, I can already hear you saying, “Retired man experiences two minor incidents while taking a vacation in his luxury car.” 

And you’re right, and that is exactly my point.

My life is so stable and comfortable that even these two miniature challenges threw me off balance, and I arrived in a slightly bummed and stressed-out state. But I still knew that in the bigger picture, they are good for me if I accept them as I accept them as the lessons they are rather than choosing to continue to worry about them.

As the trip went on, more things happened, almost as if The Comfort Crisis book were trying to prove a point. I drove three hours deeper into the mountains and up the steep dirt road to arrive at my second friend’s piece of land – a plot of forest in the mountains just outside of Durango.

Pollen

My work days in that high desert environment in the peak of summer were hot and physically demanding. It was hard to keep my tools, and my food supply in the cooler, and myself protected from the scorching sun (and a strange neverending blizzard of tree pollen) while still getting the job done. There was no indoor plumbing and we had to be very careful with our limited water supply. And then at the end of each day I had to reshuffle everything and set my car back up as a bedroom and crawl in for the night. Alone and far from home.

But instead of feeling depressed as I experienced this constant hardship, the opposite thing was happening: I felt more alive and more badass with each passing day. I got better at being a feral forest man.

One day, my co-builder and I decided to take the afternoon off and head to the wild, remote Lemon Reservoir for some paddleboarding. We didn’t bring our phones or any other conveniences or amenities – just two boards and the minimal clothing required for swimming. And we headed out into a stiff headwind and little whitecap waves, laughing at the freedom of the experience.

Lemon Reservoir

It was hard, and slightly scary, as we got further and further from the shore. Progress was slow even with serious paddling, and we didn’t have any particular plan beyond the spirit of “let’s GO!” 

But again Michael Easter was there whispering in my ear, saying,

 “Is this difficult, Mustache? GOOOOoood! Then you’d better keep going!”

So we did. And we got way out into that lake, to a point where the water was shielded from the wind by the mountains on the other side. And it was awesome. 

We cruised over to the shore to explore a particularly scenic meadow, coated with the softest green mossy grass and exuberantly colored wildflowers, and set at an impossibly steep angle. And damn I wished that I could have taken pictures, but in a strange way this forced me to burn that spot more thoroughly into my memories using my own senses instead.

Then we headed back out into the center of the lake, set down the paddles, and just laid down on our boards to let the wind and the waves take us back towards the far end of the lake where we had started. And what a strange, serene feeling it was, floating on just a tube of air over two hundred feet of cold blue water, feeling like a jungle man with no cares and no plans and no material possessions. It could have been scary, but instead it was one of the best and most relaxed moments of my life.

Eventually, this week of forest living and exertion had to come to an end so I could get back to my own town to be a Dad again. But it ended with a final reminder of the principles of the Comfort Crisis – after so many days relatively extreme work and a relatively sparse food supply, I had grown used to a healthy background hunger. Which is yet another thing that we are meant to experience as humans – being satisfied and free from hunger all the time is neither normal nor healthy.

But when my hosts took me out on the town for a final night thank you dinner at the Mexican restaurant, the immense Burrito platter I consumed turned out to be the most delicious meal of my life.

The most delicious meal ever (and the most Immense – hand for scale)

Purposeful Hardship vs. Purposeful Spending

There has been a lot of talk directed at the FIRE community recently about how bad we are at spending our money, and how we all need to loosen up. And there’s a small amount of truth to it, as my local friends Carl and Mindy recently admitted during a grilling on the Ramit Sethi podcast.

But we also need to keep this whole idea of excessive comfort in mind, and the damage it does to the natural human condition. 

It’s great to spend money on adventures and improving yourself, being generous to others, and making the world a better place. 

But it’s also way too easy to fool yourself into thinking you “want” things that just make your life easier and easier. 

So your job is to catch yourself before this happens, and learn to keep things challenging, even as you upgrade the rest of your life experience.

In other words: buy yourself better tools, not softer chairs.

—-

* Another great book that follows this style is Wired for Love by neruroscientist Stephanie Cacioppo – highly recommended for reading in parallel with a lover, whether new or old.

** not actually hard by reasonable human standards, but it seemed hard by my comfort addicted first world standards

Source: mrmoneymustache.com

Apache is functioning normally

Transamerica is considered to be one of the world’s leading insurance and financial services companies. The firm offers insurance and investments to more than 19 million customers worldwide.

As Transamerica’s slogan suggests, the company – and its customers – are “Tomorrow Makers.” This is because the company strives to make its customers’ tomorrows everything that they plan for.

Who is Transamerica?

Table of Contents

Transamerica is a financial services company that provides insurance, investment, and retirement products and services.

It was founded in 1904 and is headquartered in Baltimore, Maryland. Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company based in The Hague, Netherlands.

The History of Transamerica

The company has been in the business of providing insurance and financial advice for more than 100 years and it began its operation in 1904 when Amadeo Giannini started the Bank of Italy in a converted saloon in San Francisco, California.

He strived to make financial services available to everyone of all financial classes, not just the wealthy. His business really ramped up following the 1906 San Francisco earthquake when he was able to provide loans to residents for rebuilding their properties.

Several years later, in 1928, the company merged with Bank of America, and two years after that, it acquired Occidental Life Insurance via Transamerica Corporation. In 1956, the banking and life insurance companies were separated, with the insurance component maintaining the Transamerica name. Today, customers of Transamerica have access to a wide variety of insurance and financial products and services.

The firm is licensed to provide insurance in all U.S. states, and the District of Columbia, and it has approximately $223 billion of premiums in force. Transamerica has a roughly $29.5 billion in assets under management.

Products Offered By Transamerica

Transamerica offers a variety of products to both consumers and businesses.

On the insurance side, the company provides numerous options, including the following types of coverage:

Term Life 

Term life insurance offers pure death benefit protection for a specific period of time.

This is typically 10 years, 15 years, 20 years, or 30 years. Should the insured pass away during the time that a term life policy is in force, the named beneficiary will receive the stated amount of death benefit.

Because term policies do not offer any type of cash value or savings component, the premiums for this type of coverage are typically more affordable than other, “permanent,” forms of coverage.

For example, you can get a $1 million term policy for less than 20% of a permanent policy with the same face value.  Term life is sometimes referred to as “temporary” life insurance coverage as it is often used for covering temporary needs such as the balance of a mortgage.

Whole Life

Whole life insurance offers death benefit protection as well as cash value build up.

The funds that are inside of the cash value grow on a tax-deferred basis, meaning that no tax is due until the time of withdrawal. The cash grows at a guaranteed rate over time.

Whole life is considered permanent coverage because as long as the premium is paid, coverage remains in force – oftentimes for the “whole” of a person’s life.

Universal Life

Universal offers a death benefit protection as well as a cash value build up. However, it provides more flexibility than whole life in that the policyholder can choose to pay higher or lower premium amounts as their financial needs change over time.

The policy value may simply increase or decrease accordingly. Like with whole policies, the cash value is allowed to grow on a tax-deferred basis.

Variable Universal Life

Variable life, provides death benefit protection and cash value.

With variable universal life, however, the cash value’s return is based on underlying investments in market-related “subaccounts.” These can allow the funds in the account to grow a great deal – provided that the market moves upward. These accounts can also be riskier in a downward moving market.

Accidental Death

This can help to ensure that their loved ones will be taken care of should the unthinkable occur. (It is important to note that this benefit will not typically pay out in the event of death that is caused by sickness or other natural causes).

Final Expense

Final expense coverage focuses on paying for a person’s funeral and related expenses.

Today, the cost of a funeral – including the burial plot, headstone, and other related expenses – can exceed $10,000. Unfortunately, many families are not able to pay these costs immediately upon the death of a loved one.

Having final expense insurance allows for a way to do that – eliminating stress on loved ones, in an already stressful and emotional time.

Key Man Life

What is key man life insurance you ask?

Key person insurance is a form of business insurance that people can overlook, but one that can make all the difference in keeping a business or firm successful in the face of losing an owner, or important team member.

In addition to life insurance, Transamerica also offers a number of other financial products, including long-term care insurance, annuities, and retirement/investment savings options for those who are planning for retirement, as well as those who are already there.

Financial Strength Ratings of Transamerica

Transamerica has been given very good ratings by the insurer rating agencies.

These ratings include the following:

A.M. Best Moody’s Investor Services Fitch Standard & Poor’s

A+ A1 AA- AA-

Is Transamerica a Legit Company?

Yes, Transamerica is a legitimate company. It is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company. Aegon is rated highly by financial rating agencies such as Standard & Poor’s, Moody’s, and Fitch Ratings.

Transamerica has been providing insurance, investment, and retirement products and services since 1904 and is regulated by state and federal government agencies.

Biggest Risks Choosing Transamerica for a Life Insurance Policy?

Choosing a life insurance policy, including one from Transamerica, comes with certain risks. Some of the biggest risks to consider include policy lapse, which occurs when you fail to pay the premium on time and could result in losing coverage.

Another risk is market risk, which refers to the performance of any investments within the policy, such as a cash value component, that can be subject to market fluctuations and result in losses.

Misrepresentation is another risk to consider, as providing incorrect information on your life insurance application could result in your policy being denied or not paying out as expected in the event of a claim.

Lastly, it’s important to make sure the life insurance policy you choose is appropriate for your needs and financial situation, as Transamerica offers a range of policies.

Advantages and Considerations

When seeking life insurance, it is important that the insurer is able to offer choice and flexibility – especially such that it meets with your specific needs. Many have the misconception that they cannot find a policy for them because of their lifestyle choices, such as one looking for life insurance for a smoker, there are options out there for you and I can help with finding the best for your needs.

Transamerica provides an extremely flexible and diverse product line up, including:

  • Term
  • Whole
  • Universal
  • Variable
  • Final Expense
  • Accidental Death

This, coupled with the company’s excellent customer support team can make for a nice mix – especially for customers who may need assistance in figuring out the details in terms of how much to purchase and what type of coverage may be best for their specific needs.

In addition, Transamerica’s policies also come with a nice assortment of riders – which can make their plans even more customizable. For example, the firm offers an estate protection rider that can help in protecting loved ones from estate tax obligations that may arise from the payment of the policy’s own death benefit.

The company’s website provides additional information on both policies and policy riders so that interested potential applicants can obtain more information on how these may work in their specific scenario.

Yet, even with all of the good, there are some considerations that should be taken into account when searching for coverage – especially when doing so through just one single insurer. This is especially the case if you have certain health issues, such as searching for best life insurance rates for smokers and/or you possess other factors that may deem you as being a higher risk applicant. This may lead you to need to look into a company that offers no medical exam life insurance policies.

In these cases – or in any case – it is always good to do some comparison shopping. Otherwise, you are essentially “locked in” to whatever price the insurer presents you with. This can be somewhat similar to only going to one car dealer or one computer dealer when shopping for these items, and never even checking prices elsewhere before moving forward with your ultimate purchase. With this in mind, regardless of how good the product, it always makes good sense to shop around first.

How and Where to Get the Best Life Insurance Coverage for Your Needs

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When you’re in the process of searching for the best life insurance coverage – regardless of your current health condition or status – it is important that you compare the type of policies that are available to you, as well as the premium cost from different carriers.

This is because there could be a significant variation between one insurer and another – even for the very same type and amount of coverage.

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Review of Transamerica Life Insurance Company

Summary

Transamerica is a financial services company that provides insurance, investment, and retirement products and services. It has a long history, having been established in 1904, and is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company.

One of the strengths of Transamerica is its broad range of products and services, which includes life insurance, annuities, mutual funds, and retirement plans. This allows customers to choose from a variety of options to meet their financial goals and needs. The company has a strong online presence, offering convenient access to account information and resources, as well as easy policy management and premium payment options.

  • Cost and Fees
  • Customer Service
  • User Experience
Overall

3.8

Pros

  • Wide range of life insurance products: Transamerica offers a variety of life insurance products, including term life, whole life, and universal life insurance, which allows customers to choose the policy that best suits their financial goals and needs.

  • Strong financial stability: Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company, which has a strong financial position as indicated by its highly rated financial standing from credit rating agencies.

  • Convenient online services: Transamerica provides a convenient online platform for policy management, which includes access to account information, policy details, and premium payment options.

  • Professional support: Transamerica has a team of trained professionals who can help you understand the policy options and select the one that best suits your needs.

Cons

  • Potential policy lapse risk: If you fail to pay the premium on time, your life insurance policy may lapse, which can result in the loss of coverage and any accumulated cash value.

  • Market risk: Depending on the type of policy, there may be investment components within the policy that are subject to market risk, meaning that the policy’s value can decrease in value.

  • Complexity: Some of Transamerica’s life insurance products, such as universal life, can be complex and may require a higher level of understanding and management to ensure that you are making the most of your coverage.

  • Premium costs: The premium costs of Transamerica’s life insurance policies may be higher compared to other insurance companies, and it’s important to consider your budget when choosing a policy.

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Source: goodfinancialcents.com

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AN interior designer shared three tacky home decor choices that she would personally never make.

She said that in all the homes she’s seen, she’s never seen one where the decor looked good.

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Sophia, an interior designer, shared three home decor choices that made homes look “tacky”Credit: TIKTOK/@houseofd3

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She suggested avoiding faux plants which don’t look good in personCredit: TIKTOK/@houseofd3

Sophia (@houseofd3) shared the three home decor choices she would avoid.

“3 things are that making your house look tacky,” she said.

“I have literally never seen anyone’s house that looks good with these things in it.”

First up on the chopping block for the interior designer were faux plants.

“Plants are one of those things that can look great in a picture for a moment but when you get into a real room with real lighting and real living, it just looks bad,” she said.

For the look of a real plant but lower maintenance, the designer suggested opting for plants that grow easily indoors and hardly need to be watered.

“It not only looks aesthetically beautiful, it also scrubs your air, brings more oxygen, and helps you feel at peace.”

Next up were word signs: “Words signs are placeholders, they’re something you put on the wall because you have a space and you just want something to fill it,” she said.

Most read in Lifestyle

Instead, she recommended replacing the signs with personalized art, family photos, or travel maps for personality.

Last but not least were accent walls: “It just makes one side of your room look extremely heavy and complete while the rest looks unfinished,” she said.

To balance the look of an accent wall, she recommended putting paint on either the remaining walls or the ceiling and being sure to furnish the room with appropriate-sized pieces.

People took to the comments to share their thoughts on her tips.

“I totally hate word signs! Especially when the whole house is covered,” agreed one commenter.

“I’m not into any, love these tips,” said another.

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Instead, the expert recommended opting for real and low-maintenance plantsCredit: TIKTOK/@houseofd3

Source: the-sun.com

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In these languid—and, for much of the country, excruciatingly, unbelievably hot—days of summer, the timeless allure of a large, cool body of water beckons. And while heading to the lake is, for some, an occasional destination, for others it’s a way of life.

Sure, some of America’s more famous lake towns are pricey. But there are others that are surprisingly affordable, offering lakeside living for bargain-basement prices. The data team at Realtor.com® dug into the data to find some of the cheapest lake town real estate in the nation.

It helps that there are a lot of lakes in America. According to the U.S. Geological Survey, there are just shy of 7 million bodies of water in the U.S. and in adjacent areas along the borders. Of those, 5.76 million are classified as a lake or pond, and 134,000 have official names.

Each of the lake towns we found has a unique charm, blending natural beauty and local culture. All of them are nestled in the most affordable regions of the country, especially the Upper Midwest to the Deep South—areas known for their low cost of living. As it turns out, they’re also ideal places for lake house shoppers not looking to stretch their budget.

As famously avid lake admirer Henry David Thoreau once wrote, “A lake is a landscape’s most beautiful and expressive feature. It is Earth’s eye; looking into which the beholder measures the depth of his own nature.”

To find the most affordable lake towns, we looked at all the home listings for the past year within a half-mile (roughly a 10-minute walk) of a named lake or pond. (Named bodies of water exclude reservoirs and lakes that folks can’t swim or boat on.) Then we calculated the median prices from July 2022 through June 2023 for homes in those areas to pinpoint the most affordable lake towns in 2023. Only towns with at least 50 home listings over that period were included.

We excluded big cities, because we’re looking for places where the lake plays a large part in the local culture. And we didn’t include extremely small towns, because you’ve got to have at least a few shops and restaurants to keep you busy when you’re not on the water. And we included only the single most affordable lake town in any state, to ensure geographic diversity.

So let’s set sail to the most affordable lakeside real estate in 2023.

Lake Vermilion, IL

(Photo courtesy of Jeff McIntire via Google Maps)

Median list price: $154,900
Median list price per square foot: $76
Population: 29,534

Danville, a relatively small town in east central Illinois along the Indiana border, is home to Lake Vermilion. The human-made reservoir provides drinking water for the city, but it has also become a popular fishing and boating location. Cabins and docks line its forested edge.

The town was an industrial hot spot for the region from the mid-19th century to the mid-20th century, as a major coal mining town and a rail hub. Abraham Lincoln was known to visit the town and once delivered a speech from the balcony of the home of a prominent Danville resident.

The median home listing within a half-mile of Lake Vermilion over the past year had a price tag 65% below the national median list price of $445,000 in June. A three-bedroom home within walking distance of Lake Vermilion, with hardwood floors, a garage, and a big yard, goes for $120,000. And for just over $100,000, home shoppers can find a two-bedroom condo about as close to the lake.

Lake Huron, MI

(Getty Images)

Median list price: $140,000
Median list price per square foot: $79
Population: 2,838

Rogers City is the smallest of any of the spots on our list of affordable lake towns, just shy of 3,000 residents.

Situated on the banks of Lake Huron, about 45 minutes from Cheboygan, Rogers City residents have quick access to multiple parks along the lakeshore. They include Harbor View Park on the southern corner, Seagull Point Park on the northern tip of the town, and several in between, including the Rogers City Yacht Harbor and Lakeside Park.

Rogers City has been host to multiple salmon fishing tournaments in the summer, including the vividly named Fat Hogs Fishing Frenzy and the more straightforward Rogers City Salmon Tournament.

It’s also home to the Great Lakes Lore Maritime Museum and the Presque Isle County Historical.

A large three-bedroom home with a garage and a brick fire pit in the backyard can be found for $165,000, a short walk from Rogers City’s North Shore Park and beach.

The Dunkirk Lighthouse on Lake Erie in Dunkirk, NY

(tourchautauqua.com)

Median list price: $122,750
Median list price per square foot: $83
Population: 12,651

The western tip of northern New York state, in the Chautauqua-Allegheny region, is known for its lakeside getaway culture. And although some of the area’s real estate is quite pricey, the lowest home prices within a half-mile of a lake can be found in Dunkirk at the edge of Lake Erie.

The area was first occupied by the Indigenous Erie and Seneca tribes, then colonized by the French, who erected the Dunkirk Lighthouse at Point Gratiot in 1826. This helped the town become a significant regional port for coal and lumber shipping. It’s now listed on the National Register of Historic Places.

Dunkirk has multiple beach parks, and it hosts several summertime events, including an annual strawberry festival, arts and music festivals, and a “Fly-In Breakfast,” which welcomes pilots from all over to the small lakeside town.

Duke McLachlan, a real estate agent with Howard Hanna Hold Real Estate in neighboring Jamestown, says that from June through August, life in this area is all about the lake, for residents and visitors alike.

“It’s the whole Chautauqua area,” McLachlan says. “The local economy really picks up.”

Buyers will find the most listings just before and after prime lake season. Sellers know they can find buyers looking forward to the summer in April and May. Meanwhile, other sellers will list in September and October after they used their homes for the summer.

Fairmont, MN sits on a string of five small lakes.

(fairmontlakesfoundation.com)

Median list price: $129,900
Median list price per square foot: $86
Population: 10,465

Minnesota is called the “Land of 10,000 Lakes” for a reason: The state has 11,842 of them.

So don’t drop your oar in the water when you hear that Fairmont, a small town in southern Minnesota near the Iowa border, sits on a string of five small lakes. These include George Lake, in the northern part of Fairmont, and Budd Lake, near the center of town.

All five offer boating and fishing—and there is very affordable real estate near two of these bodies of water.

The median home that was listed over the past year near both Lake George and Budd Lake is less than half the national list price. The real estate near Budd Lake is a little pricier, due to its proximity to the center of Fairmont, and a couple of developed parks along its edge.

For those who want to live and work near the water year-round in the “City of Lakes,” Fairmont’s local economy is driven by the local Mayo Health System hospital, two small colleges, and a couple of modern industrial companies.

Cherokee Village, AR

(discovercherokeevillage.com)

Median list price: $126,900
Median list price per square foot: $91
Population: 4,977

Cherokee Village, a small town in central northern Arkansas about 20 miles south of the Missouri border, boasts seven lakes in total.

Lake Cherokee, the smaller of the two lakes where we found low-priced homes, has a park and private docks. Meanwhile, Lake Thunderbird, the town’s largest lake, has a public marina and the town’s public recreation center, which has two swimming pools and a minigolf course.

For just under $290,000, a homebuyer can get a 1,200 square-foot, two-bedroom house with a backyard dock on Lake Thunderbird. For those looking for homes costing less, just across the street from Lake Cherokee, a two-bedroom townhome can be found for as little as $120,000.

Lake Pickwick in Sheffield, AL

(Photo courtesy of Brett Ferguson via Google Maps)

Median list price: $169,900
Median list price per square foot: $95
Population: 9,305

Pickwick Lake, a popular boating and fishing destination, was created by the Pickwick Landing Dam on the Tennessee River near where Alabama, Tennessee, and Mississippi meet.

The lake is known for record-size smallmouth bass and catfish. Local fishing guides say 2- or 3-pound smallmouth bass are the norm—and catches of 5 to 6 pounds are not uncommon.

History lovers will also appreciate the small town of Sheffield. It became a major wartime aluminum smelting location in the 1940s, boosting the nation’s aircraft production. It’s also the hometown of Senate Majority Leader Mitch McConnell.

And it’s where you’ll find the famous Muscle Shoals Sound Studio, where a litany of modern musical icons came to record, including The Rolling Stones, Aretha Franklin, Cher, and Wham! The studio faded and was repurposed for several years, before a documentary reignited interest and a restoration brought it back to life. It’s now a museum during the day and a working studio at night.

The Lorain Harbor Lighthouse on Lake Erie in Lorain, OH

(Getty Images)

Median list price: $135,000
Median list price per square foot: $96
Population: 65,440

Lorain is a small city on Lake Erie, in the far western corner of the Cleveland metro area. Like the other Great Lakes locations on our list, Lorain was once an industrial production mecca, dominated by steel.

Now, says Bill Swanzer, a real estate broker at The Swanzer Agency Realtors in neighboring Amherst, Lorain mixes a classic lake culture with good access to the city.

“You’re only 20 or 30 minutes from the Cleveland Browns‘ stadium,” Swanzer says. “So you can get to all the big-city things—live sports, live music, shows.”

But for Lorain residents, Lake Erie’s offerings are right in the backyard.

“The lake’s always been a big draw for us,” Swanzer says. “You’ve got kayaking, boating, fishing, swimming—you’ll see Jet-Skis on the water and parasailing.”

Two Rivers, WI

(Photo courtesy of Sandra and Dave via Google Maps)

Median list price: $139,900
Median list price per square foot: $97
Population: 11,276

Two Rivers is uniquely situated on Lake Michigan, such that it remains cooler than nearby areas on hot summer days—earning the town its nickname “Cool City.” It became a summertime destination for folks looking for a reprieve from the heat.

The moniker is memorialized just about everywhere, from the annual Cool City Car Show & Cruise, the Cool City Brewing Co., and Cool City Coffee Shop to the Cool City Charters and Cool City Cleaners.

Summer activities include swimming and sunbathing at Neshotah Park & Beach, and hiking and camping in Point Beach State Forest, just north of town. There’s also boating and fishing on Lake Michigan and the town’s—you guessed it—two rivers. It’s also only about 30 miles southeast of Green Bay, offering relatively quick access to a big city nearby.

But what’s especially cool about Two Rivers for us is the low price of homes near Lake Michigan. Take this recently listed two-bedroom home with an updated bathroom and floors about a block from Lake Michigan, priced at just $134,000.

Lake Augusta in Augusta, KS

(Photo courtesy of John Sobonya)

Median list price: $185,000
Median list price per square foot: $106
Population: 9,299

About 30 miles east of Wichita is Augusta and its 190-acre human-made lake on the north end. Augusta Lake, lined with parks, grassy embankments, and walking trails, is a community center of sorts. There are Little League tournaments, concerts, disc golf, and the town’s Fourth of July celebration, in addition to the standard lake activities like fishing, boating, and kayaking.

The town is known for its historic buildings, many of which have been added to the National or State Register of Historic Places.

Of course, we’re interested in the home prices, which are inexpensive, even for a relatively affordable state like Kansas. A three-bedroom, ranch-style home six doors away from Augusta Lake can be found for just $150,000.

This home is currently for sale for $289k and is just a ten minute walk to Lake Prestwood.

(Realtor.com)

Median list price: $285,000
Median list price per square foot: $125
Population: 7,565

Homes within a half-mile of Prestwood Lake are the most expensive of any place on our list of affordable lake towns—but they’re still about 35% less expensive than the national median list price.

Lauri McLeland, a Realtor with Better Homes and Gardens Real Estate Segars Realty in Hartsville, says it’s not uncommon to see small speed boats and jon boats on Prestwood Lake, and even some kayakers on Black Creek, which leads into the lake.

But although there’s a decent amount of housing within that half-mile of the lake, it can be a tight market for buyers looking for something right on the water.

The small South Carolina town, about an hour northeast of the state capital of Columbia, is a tight-knit community, says McLeland. Word of someone selling their home can lead quickly to an offer from another local looking to get closer to the water.

“Prestwood is a really pretty lake,” McLeland says. “There’s not a lot of housing right on the lake, and some of those sell before they even hit the market.”

Source: realtor.com

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National Association of Realtors’ chief economist Lawrence Yun says home sales are likely to hit a 12-year high this year as builders race to meet demand for entry-level homes from first-time buyers.

While existing home sales are likely to remain flat this year, new home sales should top 667,000, which would be the highest number since the beginning of the financial crisis in 2007, Yun said last week.

Yun also said he expects a change in U.S. migration patterns as many buyers give up trying to find an affordable home in the nation’s pricier markets, and instead relocate to more affordable areas. These people may be encouraged by a growing housing inventory in many U.S. markets, which has led to affordability falling in some areas. Yun said he expects this trend to continue for the rest of the year.

“While affordability has been sliding, it is still better than we saw in the year 2000,” Yun said. “This is due to much lower mortgage interest rates today.”

One reason for the improved affordability is that incomes have been rising at a pace that’s faster than that of home price growth, Yun said. He cited data from Sentier Research that shows incomes have been climbing steadily since a post-recession bottom in 2011.

“With strong job creation, wages are growing at a faster pace,” Yun said. “Finally, wages and home prices are aligning.”

The mix of new home sales will shift towards the more affordable end of the spectrum, resulting in a lower median purchase price, Yun said. He predicts that the median new home price will fall by 2.8% to $317,000 this year. Further, he said new home sales will grow by 7.9% in 2020 to 720,000 units.

Prices for existing homes probably will gain 2.3% in 2019, and 3.3% in 2020, Yun said. That’s a slower pace than 2018’s 4.9% increase.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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Source: realtybiznews.com

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The nation’s second largest multiple listing service, Bright MLS, will begin allowing listing agents to put in a blanket offer of compensation for buyer brokers of zero dollars or more, starting on August 9.

This change appears to possibly diverge from a National Association of Realtors rule, which states that listing agents must make an offer of cooperative compensation to buyer brokers in order to list a property on the MLS.

While Bright MLS, which serves clients in Delaware, Pennsylvania, Maryland, Virginia, New Jersey, Washington, D.C., and West Virginia and represents 42 Realtor association, acknowledges that this is a small change, as previously the lowest amount allowed was one cent, it says this is a large change in terms of transparency.

“We are making this small change to underscore the complete flexibility of Bright subscribers to engage in transparent negotiations with their clients,” the firm wrote in an announcement on its website. “Bright’s MLS supports the most efficient marketplace by making property information widely and transparently available, and by facilitating blanket offers of cooperative compensation available to all buyer brokers on an impartial basis.”

The MLS noted that this change does not impact its impartial system of offers of cooperative compensation, and that offers of compensation remain negotiable and at the discretion of the home seller.

“Bright has always offered flexibility and has never specified a cooperative compensation amount,” the announcement states. “Sellers could agree to have their broker enter as little as one cent in the compensation fields, which was as close to zero as one could get. With this update, a listing agent will continue to be able to enter the cooperative compensation amount agreed upon with their seller client, from zero and up, and continue to negotiate compensation at their client’s direction.”

In an email, a spokesperson for Bright MLS said the MLS does not anticipate this impacting its relationship with NAR.

“Bright is making an independent business decision responsive to the needs of our subscribers – and the consumers they serve,” the statement read.

In addition, NAR said it supports Bright MLS’ decision.

“Bright’s view is consistent with the purpose of NAR’s policies, which are designed to ensure information is efficiently distributed to facilitate the transaction of real estate to the benefit of buyers and sellers. So long as cooperating brokers are aware of the offerings made by listing brokers, that purpose is achieved. NAR has long said listing brokers and their clients are the ones who determine the amount and makeup of the offer to cooperating brokers,” Mantill Williams, NAR’s vice president of communications, wrote in an email. “Practically speaking, the difference between one penny and $0 is negligible, and regardless, those offers are always negotiable. These policies ensure brokers are efficiently sharing information they and their clients need through their local, independent broker marketplaces. Without these policies, brokerages would not know important information about listings and they would have to rely on piecemeal information collected in inefficient ways that could negatively affect their ability to serve their clients and ultimately the U.S. economy.”

With three class action lawsuits —  Nosalek, Burnett, and Moehrl — currently progressing through the courts, buyer broker compensation has been a hot topic. Bright MLS is currently listed as one of the 20 MLS co-conspirators in the Moehrl lawsuit, named after its lead plaintiff. The Moehrl suit is the largest of the three cases and defendants include NAR, Anywhere Real Estate, HomeServices of America, RE/MAX and Keller Williams.

MLS Property Information Network (MLS PIN), which serves clients in the New England area, recently signed off on a settlement in the Nosalek lawsuit in which it agreed to pay $3 million and to stop requiring sellers to offer buyer broker compensation. Unlike Bright MLS, MLS PIN is owned by broker owners and does not have to adhere to NAR rules.

Source: housingwire.com

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While foreclosures might sound like old news, there are still a ton of borrowers either behind on mortgage payments or in the process of foreclosure.

And it doesn’t appear as if the type of loan they took out was the problem. It’s just the fact that they took out their loan at exactly the wrong time.

And by that, I mean most borrowers facing foreclosure these days are underwater on their mortgages, and deeply underwater at that, possibly because they purchased homes at the height of the market.

That brings us to a new report from Black Knight Financial Services, which revealed that borrowers in negative equity positions accounted for 77% of all active foreclosures, per their latest Mortgage Monitor for the month of March.

So while some might just be having trouble with monthly payments because of a job loss or an illness, or simply because they took on too much mortgage, most are behind because their property values are in the red.

It might be conjecture to say that, but it’s clear there’s little incentive to keep paying an underwater mortgage, especially if it’s still underwater after all the recent home price gains.

Put simply, it makes sense that 29% of underwater borrowers are seriously delinquent on their mortgages.

Cheaper Homes 9X More Likely to Be Underwater

Black Knight also found that borrowers who own the bottom 20 percent of homes by price are nine times more likely to be underwater when compared to those in the top 20 percentile.

In other words, high-end homes have largely avoided the negative equity crisis that has plagued the rest of the market.

This could be a combination of higher down payments, more affluent borrowers, and better performance (rebounding) of higher-end homes.

Overall, their data show that slightly more than eight percent of all borrowers are currently underwater on their mortgages.

The good news is we’ve seen a near-30% decline in the negative equity rate from a year earlier.

The bad news is one of every three borrowers currently in the process foreclosure has a loan-to-value ratio of 150% or more.

For the record, Nevada and Florida continue to lead the country in terms of negative equity rates, with 16.4% and 15.1% of borrowers underwater, respectively.

And Florida and California have the highest number of underwater properties.

Mortgage Delinquencies See Largest Drop in Nine Years

The mortgage delinquency rate has also improved immensely, and though seasonal declines are typical in March, the 12.18% drop seen this year was the largest monthly decline in nearly a decade.

Additionally, declines have been witnessed in all stages of delinquency (30, 60, 90 and 120+ day lates).

In fact, 30-day delinquencies hit their lowest level in over 10 years. And for every 10,000 loans that were current at the end of February, just 73 missed a payment in March, the lowest current-to-30 day late roll rate in over 15 years.

Roll rates from 30-to-60 and 60-to-90 days delinquent also fell to their lowest levels in nine years, and loans that were previously delinquent are curing (becoming current again) at the highest clip since 2005.

So while underwater loans persist, new problem loans seem to be few and far between.

Separately, the MBA reported today that the delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 5.54% as of the end of the first quarter.

This is the lowest recorded rate since the second quarter of 2007.

Meanwhile, just 2.22% of loans were in some stage of foreclosure, down from 2.65% a year earlier, the lowest foreclosure inventory rate since the fourth quarter of 2007.

So it looks as if things are nearly back to normal, though certain areas of the country continue to suffer disproportionately.

The scary part is that NAR thinks home prices are overvalued again, but if prices dip again negative equity-related problems could resurface.

Source: thetruthaboutmortgage.com

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A diagonal spread is an options trading strategy that involves taking a long and short position on the same stock with different strike prices and different expiration dates. It’s a combination of a vertical spread and calendar spread.

Using this strategy can allow the trader to get an early payday if the stock moves in a direction that’s in their favor. The way it works is the trader makes two options trades — either call options or put options simultaneously, with different strike prices and expiration takes.

Diagonal Spreads Defined

Diagonal spreads combine a two-step options trading strategy and are considered an advanced trading tactic. It’s a combination of a calendar spread and a short call or put spread. These positions have different expirations and different strikes which spread off diagonally, hence the name of the strategy.

A calendar spread is when a trader buys a contract with a longer expiration date while going short on an option with a near-term expiration date with the same strike price. But if two different strike prices are used, this is a diagonal spread.

A diagonal spread includes a calendar spread, also referred to as a horizontal spread or a time spread, combined with a vertical spread, because different strike prices are involved.

How Diagonal Spreads Work

A long put diagonal spread involves purchasing a put for some time in the future while selling a put in the short-term. Purchasing an option in the later term tends to be more expensive due to the embedded value of time. On the other hand, the trader sells the nearer term option to lower the cost of the other option. Traders usually use diagonal spreads when they have conviction on a stock’s movement while minimizing the effects of time.

A diagonal bull spread becomes a valuable trade when the price of the stock increases, while a diagonal bear spread increases in value when the stock price decreases.

Diagonal spreads require experience because traders have to account for volatility and have a good sense of timing.

Setting Up a Diagonal Spread

When traders are bullish on a stock, they generally use call options vs. using put options when they’re bearish on a stock.

The most common way to set up a diagonal spread is to buy a back month option that is in the money, which is a futures contract whose delivery dates are further into the future. Then, you sell a front month option with a strike price that is out of the money, which is a contract that has a near-term expiration date.

Setting up a diagonal spread in this manner would constitute a debit spread, though credit spread structures can also be used.

Maximum Loss

When a stock’s price rises, the maximum loss is equal to the premium paid when buying a call. If the stock falls, the maximum loss is the difference between the strike prices plus or minus the option premium paid or received.

Maximum Profit

It can be difficult to anticipate what the maximum gain may be since traders can’t know what the back-month option will be trading at when the front-month option expires as a result of shifting volatility expectations. In a long diagonal spread, the stock price must be near the short strike for a trade to go in the market participant’s favor.

The max profit potential for a short diagonal call spread is the net credit received minus commissions. If the strike price plummets below the short call, the value of the spread will be close to zero and the credit received is profit.

On the other hand, the max profit scenario of a short diagonal put spread is when the stock price soars above the strike price of the sold higher strike put option, as the value of the spread nears zero and the credit received is profit.

Breakeven Point

The breakeven point cannot be calculated, rather it can be estimated. The breakeven price at expiration for a long call is below the strike price of the short call. During expiration of a long call, the breakeven point is the stock price at which the price of the short call is the net credit received for the spread.

Traders are not able to predict what the breakeven stock price will be because it depends on market volatility, which can impact the price of the short call.

Diagonal Spread Examples

In one example, a trader is bullish on ABC stock, currently priced at $300. If the front month is January and the back month is February, the trader may want to purchase a $298 strike call with February expiry, which is in the money. Then the trader sells a $302 strike call with January expiry, which would be out of the money. This would give the trader a four-dollar wide diagonal spread.

In another scenario, a trader is bearish on XYZ stock at a current market price of $129. To set up a diagonal spread, the trader could buy a $132 February put, which would be several dollars in the money. Next, the trader could sell a $126 January put, which would be a few dollars out of the money. This trade would be a six-dollar wide diagonal spread.

Types of Diagonal Spreads

There are different types of diagonal spread strategies traders can use to get their desired outcome. Here are several diagonal spreads traders can try:

1. Long Call Diagonal Spreads

To execute on a long call diagonal spread, traders must buy an in the money call option with a longer term expiration date and then sell an out of the money call option with a nearer term expiration date. Traders can use this advanced options strategy if they are mildly bullish on a stock in the near term and very bullish in the longer term. An ideal set up for a long call diagonal spread is during times of low volatility as you do not want your trade to be disrupted by sharp price swings.

2. Long Put Diagonal Spreads

To execute on a long put diagonal spread, traders must buy an in the money put option with a longer term expiration date and then sell an out of the money put option with a nearer term expiration date that has an out the money strike. Traders typically use long put diagonal spreads to mimic a covered put position.

3. Short Call Diagonal Spreads

A short call diagonal spread is when traders sell a long-term call with a lower strike price and buy a shorter-term call with a higher strike price. A trader benefits from a short call option when the price of the underlying asset falls, thus making this a bearish strategy.

4. Short Put Diagonal Spreads

A short put diagonal spread involves selling a longer-term put with a higher strike price and buying a shorter-term put with a lower strike price. This is a bullish strategy, as the trader benefits if the underlying asset goes up in price, making both options expire worthless and netting the investor the net credit earned at the beginning of the trade.

5. Double Diagonal Spread

A double diagonal spread is when a trader buys a longer-term straddle and sells a shorter-term strangle, a trade that benefits from time decay and an increase in volatility. Traders setting up a double diagonal are long the middle strike calls and puts, which expire further in the future, and short out of the money call and put options with sooner expiries. The ideal outcome for double diagonals is to stay between the two OTM strike prices as they approach expiration.

Risks of Diagonal Spreads

The biggest risk traders have in diagonal spreads is overpaying for the diagonal spread. That said, the maximum risk is the debt a trader incurred to enter the position. If traders pay too much for their diagonal spreads they can remain unprofitable.

Market volatility can be used to the trader’s advantage when using diagonal spreads, although it can also pose a risk to such trades. Depending on the level of volatility, it can substantially change the price of the option and impact the trader’s profit potential. Diagonal spreads are an advanced trading strategy so traders who are experienced in dealing with volatility are best suited to incorporating diagonal spreads in their investment strategy.

The Takeaway

Setting up a diagonal spread correctly is an important part of the profit potential of the strategy, otherwise traders are at risk of losing money. This advanced options trading strategy requires traders to make both long and short trades, either with calls or puts, that have different expiration dates and strike prices. Traders should know these option trades are lined up diagonally from one another.

Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.

With SoFi, user-friendly options trading is finally here.

Photo credit: iStock/percds

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