What Is An IRA? Everything You Need To Know By Miguel Rivera, Bank of America February 20, 2025 Share If you’re an employee thinking about how you can save for retirement, individual retirement accounts, better known as IRAs, are worth considering. Almost anyone with earned income can open an IRA, which makes it different from a 401K, which you can only participate in if your employer offers one. There are several different types of IRAs, each with its own requirements and features, but all offer important tax advantages that could help you save more for your future. The most popular kinds of IRA’s are traditional IRA’s and Roth IRA’s. The combined maximum yearly contribution to both accounts is $7,000 for 2024—or $8,000 if you will be age 50 or older at any time during the calendar year. Here’s what you need to know to help you choose an IRA.1 What are traditional IRA’s? Traditional IRAs provide tax-deferred growth. This means your money grows tax-free until you begin taking distributions, at which point your withdrawals are taxed at your income tax rate.2 What’s more, contributions may be tax-deductible. For instance, if you make $40,000 per year and put $3,000 in a traditional IRA, you will generally receive a deduction against your $40,000 of income. For 2024, if you are covered by a workplace retirement plan, your contributions are at least partially tax-deductible if your modified adjusted gross income is less than $87,000 if you are single or $143,000 if you are married and filing jointly. The income limits are higher if your spouse is covered by a workplace retirement plan but you are not. However, if neither you nor your spouse are covered by a workplace retirement plan, your contributions are tax-deductible no matter what your income is. A traditional IRA can be useful for those who don’t qualify for a Roth IRA (see next section), for those who anticipate being in a lower tax bracket after retirement and for those who want to save outside their 401K. It makes sense to invest enough in your 401K to get the full matching contribution from your employer, if they offer one. Beyond that, IRAs may offer more investment flexibility than many 401K’s, though you should learn the details of your 401K to be sure. Anyone with earned income3 is eligible to open a traditional IRA. If you withdraw funds from your traditional IRA before age 59½, however, you generally have to pay income tax on any tax-deductible contributions and earnings, and an additional 10 percent tax on your withdrawal—though some exceptions may apply. What are Roth IRA’s? Roth IRAs are attractive accounts for those who can afford to pay taxes now for the reward of federally tax-free income later (state taxes may apply). Since contributions to Roth IRA’s aren’t tax-deductible, you pay more in income taxes up front than you would with a tax-deductible contribution to a traditional IRA. The trade-off is when you withdraw your contributions, you get to take home the full amount federal tax-free (as long as at least five years have passed since your first Roth IRA contribution and you’re older than 59½ or you meet another exception). In addition, unlike tax-deductible contributions to traditional IRA’s, contributions to a Roth IRA can be withdrawn at any time, tax-free (including the 10% early withdrawal tax), although taxes (including the 10% early withdrawal tax) may apply to the portion of the withdrawal representing earnings. One other feature that sets the Roth IRA apart from the traditional IRA: There are no required minimum distributions while the Roth IRA owner is still alive. However, to contribute for 2024, you must have earned income, and single tax filers must make less than $161,000 per year, while joint tax filers must make less than $240,000 per year. The IRS adjusts these limits annually. You may contribute to both a traditional and a Roth IRA, though there is an annual contribution limit—for 2024, the maximum combined limit across both accounts is $7,000 (or $8,000 if you will be age 50 or older at any time during the calendar year). What are IRA’s for the self-employed? A simplified employee pension (SEP) IRA can be a good option for those who are self-employed. SEP IRA’s allow you to set aside up to the lesser of (a) 25% of compensation (as determined under the SEP IRA rules),4 or (b) $69,000 through 2024. SEP IRA’s work like traditional IRA’s, which means you don’t pay taxes on your contributions and earnings until you withdraw them in retirement. There is no Roth option for SEP IRA’s. What are savings IRA’s vs. investment IRA’s? Once you determine your account type, you may be able to choose between an investment IRA and a savings IRA. Think about your retirement goals, your financial health and your life stage to help you determine which kind of IRA would be better for you. Savings IRA’s are offered by banks and feature FDIC-insured CDs and money market savings accounts. These are lower-risk accounts that offer the potential for relatively stable, modest yearly returns, often without any annual or custodial fees. Investment IRAs are offered by investment firms and may allow you to invest in stocks, bonds, exchange-traded funds (ETFs) and mutual funds. These accounts may make sense for those who are willing to accept some risk in their retirement accounts in exchange for the potential for greater long-term growth. Investment IRAs are not FDIC-insured, are not bank guaranteed and have the potential to lose value. No matter which kind of IRA you choose, saving or investing for retirement should be at the top of your list of financial priorities. With retirements lasting longer than they used to, the sooner you start preparing, the better off you could be. 1. This article addresses U.S. federal tax consequences. State and local taxes may also apply. Consult your tax advisor. 2. Withdrawals in excess of non-deductible contributions are taxed. Withdrawals before age 59-1/2 may be subject to a 10% additional tax unless an exception applies. 3. A spouse can also contribute to a traditional IRA on behalf of a spouse who has no earned income, provided the contributing spouse has enough earned income to cover the contributions. 4. Taxpayers typically have until their individual federal tax return filing deadline to make an IRA contribution for the prior tax year. If the taxpayer has filed an extension, then the taxpayer has until the extension deadline, which is usually October 15, to make a SEP IRA contribution. 5. This article does not address SARSEPs (or salary reduction SEPs) or SIMPLE IRA’s which can also be used by those who are self-employed if certain requirements are met. 6. The maximum compensation that can be taken into account for purposes of this calculation is $345,000 in 2024. 7. Tax-free withdrawals (i.e., qualified distributions) are generally allowed if you're 59 1/2, disabled or deceased, and five years have passed since your first contribution to any Roth IRA. 8. Effective 1/1/2023, the required beginning date is April 1 of the year after you turn age 73. You are required to take an RMD by December 31st each year after that. If you delay your first RMD until April 1 in the year after you turn 73, you will be required to take two RMD’s in that year. You may be subject to additional taxes if RMD’s are missed. Please see your tax advisor regarding your specific situation. 9. Starting in 2024, you may be able to pull up to $1,000 from a Retirement Account, without owing the 10 percent penalty, for “unforeseeable or immediate” needs arising from a personal or family emergency. Source: IRS, 2024 < Previous News Next News >

Our First Big Scare: Many Newer Residents Have Learned How Important It Is To Be Prepared By Hallandale Beach Mayor, Joy Cooper September 29, 2022 Share Well, we went thru our first big scare of the hurricane season. We are lucky not to have been faced with a direct hit, but we all know here in Florida things can change in a matter of hours. While these hurricanes are a part of living in paradise, I am sure many of our newer residents now have learned how important it is to be prepared. City staff, as of Sunday, have all been activated. Since flooding is the biggest threat that we have here in the city we have established a strict protocol to address our drainage systems. Our staff continually maintain the system by cleaning out the basins. Even with regular maintenance once the alert begins, we start a sweep of the city system. This time around we were very pleased that FDOT came in just before the alert and did their maintenance of Hallandale Beach Boulevard. I need to remind our readers. The system that has been put in place both in the NE quadrant and SW have improved the flooding conditions. These systems do not guarantee that there will never be flooding. This depends on how heavy and the amount of rain fall. They do help to make sure the streets are cleared quicker in the event of downpours and in cases of hurricanes. Every resident can do their part in helping to prevent flooding. If you have a catch basin on your property, please make sure it is clear of debris. Our system is made up of gravity drains. Water flows to the basins into the intracoastal, canals, lakes and into deep well injection pumps. Many condominiums have French Drain systems with catch basins. These should be cleaned out annually. There is an inspection required by city ordinance. Our city infrastructure is literally out of sight out of mind. Many of us do not even think about it unless the water is not running the toilet is backed up or the streets are flooded. As elected officials it is second on the list to public safety. This budget and in the coming years we will be focused on replacing much of our underground pipes. These replacements are very costly, and we have recently agreed on a financial plan to move forward. The financial plan will come in two parts. The first is thru what are called revenue bonds. The second will be in the form or a Government Obligation Bond. Just like in many condominiums having to perform 40 and 50 year inspections, our city is doing the same. We did a Basis of Design Report that sat around for 5 years but now is being utilized. No more kicking the can down the road. We are all focused on water, wastewater and stormwater. While they are all interconnected, I will start off with the stormwater component first. On your water bills you will see a 2 dollars stormwater fee. For many years our system was simply gravity, canals and lakes. Swales were maintained by Community Development Block Grants, taxes and fees. The system was also inspected thru televised cameras and cleaned. As we continue to add to the system with large pumping and wells the fee never increased. We contracted with a third party that specializes in Water Infrastructure Financing. They worked with our staff team to evaluate the needs to prioritize the projects and establish a funding plan. Many of our residents that live out west are near lakes and know they have not been maintained for years. We have begun to look at projects to improve the drainage and secure the embankments. Those that live along the canals and intracoastal have watched sea level rise. We are looking at outfitting our gravity drain with flapper systems to keep out water while still allowing drainage. In order to pay for maintenance of the system and add improvements it was recommended that the flat fee be raised to 8 dollars. Many cities have stormwater fees and others do not. The consultant stressed that many cities are finally realizing the effects that sea level rise and global climate changes are having on the aging stormwater systems. These systems need to be maintained and improved to ensure we are ready to deal with future changes. By being proactive we will have funding established for future needs. It needs to be noted that when cities have local matching dollars and are ready to build projects, they are more likely to receive grant funding for the County State and/or National programs. When we went out to address stormwater years after enormous flooding issues we went as partners not just asking for help. Since we did have local funds and were in the process of designing a plan, we received funding of 15 million for our 14th Avenue pumping station. This has already been proven true this year. We were awarded one of the top grant recipients from Governor DeSantis. While I will go into wastewater plan next article, we had approved design plans to replace and repair sanitary sewer pumps. Since we are shovel ready, we received a 15 million grant. Wishing all our friend and neighbors who celebrate, Wishing you a L ’Shana Tova. May you have a sweet New Year blessed with health and happiness. As always, I am available for your questions, concerns and ideas to help make our City a better place. Please feel free to reach out at my office: (954) 457-1318. On my cell/text at: (954) 632-5700. Or E-mail me at: jcooper@cohb.org . < Previous News Next News >

Surfside Condo Collapse: Here’s How to Help - Donations, Resources & Volunteer Registration Thu Jul 01 2021 04:08:00 GMT+0000 (Coordinated Universal Time)

Ketamine and Other Anesthetics Emerge as Treatments for Depression Fri Oct 18 2024 16:45:00 GMT+0000 (Coordinated Universal Time)

Celebrate Father’s Day With A Burger Bash: At Arc Culinary's Emeril Lagasse Foundation Innovation Kitchen in Broward May 30, 2024 Share A Burger Bash in time for Father’s Day weekend and a culinary tour of Europe without the need for a passport are among the unique South Florida summer dining experiences presented in June and July by Arc Culinary at the state-of-the-art Emeril Lagasse Foundation Innovation Kitchen in Sunrise. The mouth-watering lineup of multi-course, prix-fix chef experiences kicks off in time for Father’s Day weekend with Burger Bash on Saturday, June 15 at 7 p.m., featuring a sesame-marinated salmon burger with grilled onions and spicy Asian mango slaw on a house-made sesame bun; brisket and Boston butt on a sweet Hawaiian roll with special sauce and shoestring potatoes; a smash burger with grass-fed beef, marinated and caramelized onions, shitake and portobello mushrooms, provolone cheese and black truffle aioli on a brioche bun, served with SIDEWINDERS™ fries; and rocky road semifreddo for dessert. Taste of the Mediterranean on Thursday, June 27 at 7 p.m. will dive into the diverse culinary traditions of the countries surrounding the Mediterranean Sea, beginning with a cold orzo salad with Kalamata olives, English cucumbers, red onions, toasted chickpeas, chiffonade of fresh basil and spinach, feta cheese and roasted red peppers; followed by Mediterranean baked cod with tomatoes, red onions and capers serve with lemon wedge potatoes; grilled lamb chops with mint, tomato and feta quinoa; and a special dessert to complete the meal. Spanish Tapas Night on Friday, July 12 at 7 p.m. will highlight the regional diversity of Spain with a menu of six small plates, including serrano ham and Manchego cheese served with black garlic toast points and mixed Spanish olives; Spain’s national dish, tortilla Espanola, a classic Spanish omelet with potatoes, onions and Spanish spices; Spanish meatballs made with a blend of beef and pork in a tomato-based sauce; jumbo shrimps in garlic sauce; Navarra region piquillo peppers stuffed with cod fish, vegetables and Spanish spices; and a final dessert course. Fresh Summer Flavors on Friday, July 26 at 7 p.m. will capture the essence of the season with four courses highlighted by a fresh summer salad of baby spinach, mint, cilantro, orange wedges, red onions, grape tomatoes, marinated strawberries, fresh avocado, English cucumbers, watermelon radish, mango chunks with lime and local Florida honey; fried Caribbean-style Florida red snapper in a tomato-based creole sauce with fried plantains and pickled red onions; and an additional course before ending with an elevated strawberry shortcake for dessert. Arc Culinary's Emeril Lagasse Foundation Innovation Kitchen, located in Sunrise, offers a blend of mid-century classic and modern elegance, featuring a Chef’s Table, refined décor, and an outdoor patio. Beyond Chef Experiences, the venue hosts cooking classes, private events, and provides off-site catering. Arc Culinary and Arc Educates are revenue-generating social enterprises of Arc Broward that directly support programming for 1,200 children and adults with disabilities. Tickets are $99 for the Chef’s Table or $89 for communal seating and include gratuity and alcoholic beverages. Chef Experiences are sponsored by Amazon. The Emeril Lagasse Foundation Innovation Kitchen at Arc Broward is located at: 10250 Northwest 53rd Street, Sunrise. For tickets and more information, please visit: www.arcculinary.com/chef-experience-dinners/ or call: (954) 299-7515. < Previous News Next News >

Your Favorite Disney Characters Return To Sunrise - Disney On Ice Presents Mickey’s Search Party Brings The Magic To Fans Through Innovative Technology And Transformative Performances Aventura Digest Dec 18, 2025 Disney On Ice Presents Mickey’s Search Party Bringing The Magic To Guests Through Dynamic Moments That Take Place On The Ice And In The Air. This Adventure Delivers Compelling Storytelling Through Multi-Leveled Production Numbers So Be Prepared To Join This Magical Search And Help Unlock An Epic Journey When Disney On Ice Presents Mickey’s Search Party Delivers An Unforgettable Experience At Amerant Bank Arena From Thursday, March 19th, 2026 - Sunday, March 22nd, 2026. Disney On Ice Preferred Customers could purchase advance tickets, to get the best seats available before tickets went on-sale to the general public on Tuesday, November 11th. Fans can still sign up to become a Disney On Ice Preferred Customer and get exclusive access to the pre-sale offer code. Join Mickey Mouse and his friends at Disney On Ice presents Mickey’s Search Party, an adventure filled with world-class skating, high-flying acrobatics and unexpected stunts! Look for clues in the search for Tinker Bell through immersive, fantastic worlds. Explore the colorful spirit realm of Coco, sail away with Moana as she bravely saves her island, see Belle in the sky as the enchanted chandelier comes to life, and sing along with Elsa in the icy world of Frozen. Watch Stitch crash the action with mischievous surprises. Make memories during Aladdin, Toy Story and The Little Mermaid as the search party becomes an all-out celebration! Embark on a quest with Mickey Mouse and pals as they follow Captain Hook’s treasure map for clues to find Tinker Bell after he attempts to capture her magic. Journey across the Marigold Bridge with Miguel from Disney Pixar’s Coco into the magnificent and mystical Land of the Dead and discover a vibrantly colorful performance with skeletons atop sway poles dancing over the audience in a beautiful cultural celebration of family. Travel to the wintry world of Arendelle and sing along with Elsa as video projection creates a kaleidoscope of crystals to help build her ice palace. Witness Belle lift into the sky as the enchanted chandelier comes to life high over the ice. Demonstrate the power of teamwork when Buzz Lightyear, Woody and Jessie recruit the Green Army Men for a daring rescue in Andy’s room. Laugh hysterically as the hilarious pirates flip, tumble, and twist on tumble tracks, stilts, and more to showcase their talents for Captain Hook. Sail away with Moana on her daring voyage across the ocean and bravely encounter the fiery wrath of Te Ka. Visit YouTube to view Mickey's Search Party Show Trailer: https://www.youtube.com/watch?v=Y0OgW0YCtcI When: Thursday, March 19th, 2026 - 7:00 p.m. Friday, March 20th, 2026 - 7:00 p.m. Saturday, March 21st, 2026 - 11:00 a.m., 3:00 p.m. & 7:00 p.m. Sunday, March 22nd, 2026 - 1:00 p.m. & 5:00 p.m. Where: Amerant Bank Arena – One Panther Parkway, Sunrise, Florida 33323 Tickets: Tickets now available for purchase online at: www.SeatGeek.com or in-person at the venue box office. It’s easier than ever to experience the Disney magic. With a variety of family-friendly ticket pricing options, choose what fits best for an enchanted experience. *Ticket pricing is subject to change based on market demand. Previous Next

Empowering Tomorrow's Leaders: Aventura Calls For Youth Council Applications June 20, 2024 Share The City of Aventura is paving the way for its young residents to step into leadership roles and actively participate in shaping their community. With the announcement of openings on the Youth Council, the city is seeking dedicated high school students to join its ranks and contribute to the betterment of Aventura. The Youth Council serves as a vital bridge between the city's administration and its youth population, aiming to foster engagement, leadership, and civic responsibility among Aventura's teenagers. Through a variety of educational, civic, and community initiatives, council members play an integral role in representing their peers and addressing the issues that matter most to them. As the application period opens, Aventura's high school juniors and seniors are encouraged to step forward and take advantage of this unique opportunity to make a difference in their community. To be eligible for consideration, applicants must be residents of Aventura and enrolled as juniors or seniors in a public or private high school for the upcoming 2024/2025 academic year. The Youth Council is not just about being a voice for the youth; it's about empowering them to be active participants in shaping the future of our city. City officials are excited to welcome new members who are passionate about making a positive impact and are committed to serving their community. Candidates selected for the Youth Council will be tasked with a range of responsibilities, including attending scheduled meetings, participating in community events, and engaging in volunteer opportunities as they arise throughout the school year. By dedicating their time and energy to these endeavors, council members will have the chance to develop invaluable leadership skills, build meaningful connections, and leave a lasting mark on Aventura. The Youth Council comprises seven members, each chosen through a meticulous selection process overseen by the City Manager. Interested applicants are encouraged to complete the online application available exclusively on the City of Aventura's official website at: www.cityofaventura.com . This call for applications signals Aventura's unwavering commitment to fostering youth engagement and empowering the next generation of leaders. By providing a platform for young voices to be heard and valued, the city is laying the groundwork for a brighter and more inclusive future for all its residents. As the deadline approaches, Aventura eagerly anticipates the arrival of a new cohort of passionate and dedicated individuals ready to embark on this rewarding journey of service and growth. Through their collective efforts, the Youth Council will continue to be a driving force for positive change and community development in the City of Aventura. For those seeking further information or assistance, the Office of the City Clerk stands ready to provide support. They can be reached at: (305) 466-8901. Or via email at: cityclerk@cityofaventura.com . < Previous News Next News >

The Rocket Man Show Blasts Onto The Stage At The Moss Center Aventura Digest Feb 17, 2026 Don’t Let The Sun Go Down On This Glittering Opportunity To See Scotsman Rus Anderson Perform Sir Elton John’s Greatest Hits In The Rocket Man Show. Recommended For Ages 13 And Older, The Performance Happens Saturday, February 28th, 2026 at 8:00 p.m. At The Dennis C. Moss Cultural Arts Center. Tickets Are Available At: https://www.mosscenter.org/mc/eventDetail.page?id=429 Rus is Elton’s official stunt and body double for an array of projects. Hand-picked by Elton himself to reinterpret highlights of his powerhouse career, Rus brings authentic, explosive showmanship to this must-see performance. In The Rocket Man Show, audiences will experience an extravagant recreation of Elton’s most beloved songs, including “Crocodile Rock,” “Tiny Dancer,” “I’m Still Standing,” and “Your Song.” Rus dazzles in Elton’s original, personally owned costumes from the 1970’s and 80’s, capturing the signature energy and flamboyance of the superstar’s golden years. In full character, he pays homage to pivotal moments in Elton’s storied career, from his famed Troubadour debut in 1970 to his spectacular Dodger Stadium concert in 1975. Rus’s celebrated portrayal of Elton has been featured on E!’s Clash of the Cover Bands and across Elton John’s official social media platforms. Beyond the stage, Rus embodies Elton in the metaverse, performing as the musical icon in Elton John Presents: Beyond the Yellow Brick Road on Roblox. The Rocket Man Show is recommended for ages 13 and older. Ticket prices range from $45 to $65. VIP seating is available for $80 and includes table seating and a complimentary wine, beer, or soft drink. To purchase your tickets, visit: www.MossCenter.org , stop by the Moss Center Box Office in person. Or call: (786) 573-5300. Dennis C. Moss Cultural Arts Center The Dennis C. Moss Cultural Arts Center, informally known as “The Moss Center,” is managed by the Miami-Dade County Department of Cultural Affairs, with funding support from the Office of the Miami-Dade County Mayor and Board of County Commissioners. The Center is dedicated to presenting and supporting arts and culture and providing access to the arts to Miami-Dade County. More information about the Center and its programs can be found at: www.MossCenter.org . Miami-Dade County Department of Cultural Affairs The Miami-Dade County Department of Cultural Affairs and the Cultural Affairs Council develop cultural excellence, diversity, access and participation throughout Miami-Dade County by strategically creating and promoting equitable opportunities for artists and cultural organizations, and our residents and visitors who are their audiences. The Department receives funding through the Miami-Dade County Mayor and Board of County Commissioners, The Children’s Trust, the National Endowment for the Arts, the State of Florida through the Florida Department of State, Florida Division of Arts and Culture and the Florida Council on Arts and Culture, the John S. and James L. Knight Foundation, the Peacock Foundation, Inc., The Jorge M. Pérez Family Foundation at The Miami Foundation, and The Taft Foundation. Other support and services are provided by TicketWeb for the Culture Shock Miami program, the Greater Miami Convention and Visitors Bureau, the South Florida Cultural Consortium and the Tourist Development Council. For more information visit: www.miamidadearts.org . Previous Next

Four Reasons NOT To Sell Florida Real Estate "Furnished" - Part 1 By Christopher Carter - Real Estate Broker Associate June 13, 2024 Share Mostly due to the many seasonal residents and second homes in Florida, thousands of houses and condos here are offered and sold Furnished or Turnkey every year. While this might sound convenient for some sellers and could even appeal to some buyers, it complicates multiple aspects of the transaction. And some of those complications extend long past the sale's closing. Emptying a house or condo before selling can be time-consuming, inconvenient, and cost money, especially for second home sellers who don't plan on returning to Florida from "up north" before the sale closes. Many sellers also seem to think that offering their property Furnished adds value and makes it more attractive to buyers, justifying a higher price. That is not usually true. In most buyers' minds, furnished real estate asking prices already include additional costs which they may or may not be willing to pay. If they don't want the furniture, why should they be forced to pay for it, then go through the effort of giving it away or selling it? Maybe they already have enough furnishings for a new place, maybe what's there isn't in their style and taste. Personal property (like furniture) should never be written-in and added to a residential real estate purchase contract or an addendum to the contract. Even when a buyer wants the furniture and is willing to pay for it, any agreement for leaving personal property in the house or condo should describe that property in a completely separate document unrelated to the contract. The contract's purchase price should never reflect any added or implied value for included personal property. It is important to recognize that fixtures attached to a residence usually convey without issue. These include lighting fixtures, ceiling fans, window treatments, wall TV brackets, built-in shelving and cabinets, storm shutters, and similar items that are considered part of the house or condo, and specified in the contract's pre-printed language. It is widely accepted that kitchen appliances and water heaters are part of a house or condominium sale. Laundry washers and dryers are included if the contract being used specifically mentions them (some do, some don't). It is important to carefully read the purchase contract to identify which fixtures and appliances convey with the sale. Today we are discussing 2 of the main reasons that furniture and other personal property complicate real estate deals: • Financing • Appraisals & CMAs (current and future) In Part 2 we will go into the reasons which result in higher costs to both sellers and buyers in Florida: • State "Doc Stamps" - transfer taxes on residential real estate • Property taxes - higher from the start due to inflated purchase price There is even a 5th reason in some circumstances: • Sales tax on the personal property's separate value (yes, really) Also in Part 2 we will discuss a few methods to let furniture and personal property remain in the house or condo without violating all the reasons not to do it! Mortgage Financing Banks and Mortgage Companies lend money to buy real estate, not furniture and personal property. In the signed and recorded mortgage document, buyers/borrowers pledge the house or condo to the lender as collateral for the loan. This means if the borrower defaults for any of the reasons laid out in the mortgage agreement, the lender can start the foreclosure process to take back the property. Personal property can be physically removed from a residence at any time, and lenders need to know that if they have to foreclose, all the pledged collateral for the loan amount will still be there. Houses, condos, and the fixtures attached to them usually stay where they were when purchased, which is not always the case with couches, beds and dressers, golf carts, cookware, or pool deck lounge chairs. This is where people (usually real estate licensees) complicate things. When they include furniture, dishes, artwork, towels, golf carts, or write "See attached inventory sheet" in the listing, on the contract, or an addendum, the buyer's mortgage lender will likely red flag the deal and require removal of any reference to personal property, causing delays to the closing timeline. If something didn't have value, it would have been thrown out before the house or condo was offered for sale. Some sellers try to justify including furniture and personal property by saying it is just "for convenience," that any remaining personal property has no contributory value to the transaction. This comment usually involves a wink and a nod between all parties. Everything has value. There are used furniture stores in just about every city and town charging money for items that used to be in other peoples' residences. Lenders require independent verification of a property's value (an Appraisal) before approving a purchase mortgage. This is to establish the Loan-To-Value (LTV) ratio, an important measure in their risk management. To calculate LTV, lenders divide the loan amount by the lower of the contract price or the appraised value. More on Appraisals in a minute. When furniture and other personal property are included in the purchase price, how much of the loan amount is for the house or condo, and how much is for the contents? Another reason mortgage lenders don't allow personal property on a real estate contract is that it is often seen as an added inducement to purchase. This means that a seller may have included personal property to "sweeten the deal," encouraging buyers to make an offer they may not have made without the added value incentive. Appraisals & CMAs As mentioned above, lenders don't just accept the contract price as a property's current value when committing to lend money. An Appraisal is an independent opinion of current real property market value performed under a strict set of standards and methods by a State-licensed Appraiser. Appraisers apply the Sales Comparison Approach which involves comparing similar properties sold within the last 4-6 months or so (comparables). For real estate Appraisals, personal property must be backed out of the purchase price when it is mentioned or referred to in the contract. Licensed Appraisers look closely at the transaction details on how those comp properties were sold. Furniture or other personal property on the contract and/or the MLS listing causes them to investigate further and subtract value from the settled sale price in order to give that particular comp an accurate usable value. When there is no stated value to mention personal property, Appraisers put a reasonable replacement value on it, then deduct that from the comp property's contract sale price. Note that replacement cost is deducted (usually higher), not a rough-guessed value for used furniture (usually lower). Here is an earlier article on property Appraisals: Understanding The Basics Of Property Appraisals - https://thefloridarealestateblog.com/f/understanding-the-basics-of-property-appraisals-- A Comparative Market Analysis (CMA) is an informal range of probable property prices (not values) prepared by real estate licensees to use when talking with sellers and buyers about asking and offering prices. CMAs use previously closed sale prices from the local MLS. Comparisons and adjustments between the subject property and comps are up to the individual preparing the CMA, with NO strict guidelines and standards like there are in Appraisals. It is up to the individual licensee's discretion as to what properties are similar enough to be used and what adjustments are made between them. Real estate licensees and online platforms are known to focus on number of rooms, square footage, updates/upgrades, and features rather than closed transaction details. Rarely do Sales Associate-generated CMAs or online AVMs (Automated Valuation Models) take into account whether any comps used were sold Furnished, Turnkey, or with Seller concessions to the deal. Disregarding closed transaction details can significantly affect CMA and AVM results, and buyers need accurate information when making a decision to purchase Florida real estate. Would they offer the same price if they knew some of the properties used for comparison were sold with furniture? So far we have briefly discussed current and future valuation problems when personal property is included on a real estate sales contract. In Part 2, we will discuss additional costs incurred when personal property is made part of a real estate purchase and sale - closing costs, transfer taxes, increased property taxes, and even State sales tax on the itemized personal property. Stay tuned, Part 2 comes out in a week or so. Editor's Note: Christopher Carter is NOT an attorney. He does not give legal advice. For interpretation and application to specific circumstances of anything you read in this article, you must speak with a Florida-Licensed attorney. Have a question or comment about anything you see here, if so, visit: www.TheFloridaRealEstateBlog.com (•Parentheses "members" added) < Previous News Next News >

Getting Dizzy: With Magic & Mayhem Live Tue Aug 15 2023 16:06:00 GMT+0000 (Coordinated Universal Time)

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Medicare Part D Drug Plans: Understanding What They Cover & What They Don't October 19, 2023 Share Medicare Part D Drug Plans play a crucial role in ensuring that seniors and eligible beneficiaries have access to essential prescription medications. Medicare Part D Drug Plans play a crucial role in ensuring that seniors and eligible beneficiaries have access to essential prescription medications. These plans are designed to cover a wide range of prescription drugs, offering financial assistance to millions of Americans in need of pharmaceutical treatments. The intricate world of Medicare Part D Drug Plans can be confusing, so let's explore the essential aspects of what they cover, including formularies, tiers, and the role of generic drugs. Every Medicare Drug Plan operates with a formulary, which serves as the blueprint of covered drugs. A formulary is essentially a list of prescription drugs that a specific plan covers. It encompasses both brand-name and generic drugs, ensuring that beneficiaries can access medications suitable for their medical conditions. One vital aspect to understand is that while Medicare Drug Plans are required to cover at least two drugs per drug category, they maintain flexibility in choosing which specific drugs to include in their formulary. Consequently, there may be instances where your prescribed medication is not listed in your plan's formulary. However, don't despair; there are avenues to address this issue. Exceptions: Navigating Formulary Gaps If your prescribed medication is not included in your Medicare Drug Plan's formulary, you have the option to request an exception. An exception is a formal request made when you or your healthcare provider believe that none of the drugs listed on the formulary are suitable for your medical condition. The plan will then review the request and, if approved, provide coverage for the specific drug, even if it's not part of their standard formulary. Medicare Drug Plans are not static; they evolve to accommodate changing healthcare landscapes. Throughout the year, plans may make adjustments to their formularies to align with updated medical information, new drug therapies, or emerging medications. Additionally, the Food and Drug Administration (FDA) plays a role in shaping these formulary changes. Plans may swiftly remove drugs from their formularies if the FDA deems them unsafe or if the drug manufacturer withdraws them from the market. Moreover, plans meeting specific requirements can promptly replace brand-name drugs with newly available generic alternatives. These changes may impact beneficiaries currently taking the affected drugs. Therefore, it's crucial for beneficiaries to stay informed about any modifications to their drug plan's formulary. To ensure transparency and prepare beneficiaries for any formulary changes, Medicare Drug Plans are required to provide advance notice. If a change in coverage is imminent, the plan must send written notification at least 30 days before the change becomes effective. Additionally, when a beneficiary requests a refill, they should receive written notice of the change, along with at least a month's supply under the same cost-sharing rules as before the change. To manage costs effectively, Medicare Drug Plans typically categorize drugs into different "tiers" on their formularies. Each tier represents a different level of costsharing. Generally, drugs in lower tiers require lower out-of-pocket expenses, while those in higher tiers come with higher costs. Here's a simplified breakdown of the common tier structure: Tier 1 (Lowest Copayment): This tier includes most generic prescription drugs, offering the most affordable option for beneficiaries. Tier 2 (Medium Copayment): Preferred brand-name prescription drugs typically fall into this category, offering a balance between cost and brand recognition. Tier 3 (Higher Copayment): Non-preferred brand-name prescription drugs are placed in this tier, often with higher copayments. Specialty Tier (Highest Copayment): Drugs in this tier are typically high-cost prescription medications, often reserved for specialized medical conditions. Beneficiaries should note that while lower-tier drugs are generally more affordable, there are instances where a higher-tier drug may be necessary for a specific medical condition. In such cases, an exception can be requested to reduce the cost-sharing for the higher-tier medication. The Role Of Generic Drugs One key strategy employed by Medicare Drug Plans to lower costs is the promotion of generic drugs. Generic drugs are essentially copies of brand-name drugs, designed to be identical in terms of dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use. These drugs contain the same active ingredients as their brand-name counterparts and must undergo rigorous FDA testing to demonstrate their equivalency. While there may not always be a generic version of the exact brand-name drug you are prescribed, there is often an alternative generic drug available that can provide the same therapeutic benefits. Discussing your generic drug options with your healthcare provider can lead to substantial cost savings without compromising the quality of your treatment. Medicare Part D Drug Plans are an essential component of the healthcare safety net for seniors and eligible beneficiaries. They provide coverage for a broad spectrum of prescription medications, offering financial relief to those in need. Understanding the intricacies of formularies, tiers, and the role of generic drugs is essential for beneficiaries to make informed decisions about their healthcare. With this knowledge, beneficiaries can navigate the complexities of Medicare drug coverage, ensuring access to the medications they require while managing their healthcare costs effectively. < Previous News Next News >