Who Says Baby Boomers Want to Downsize?

It is a common place misconception that boomers want to downsize their lifestyles, especially by moving into smaller houses. The reality is quite different. As explained in a recent article in the CanadianFinancial Post,most boomers are actually moving into condos that are almost the same size as their prior residences.  While the survey was conducted in Canada, I think the same trend is taking place in the U.S..http://business.financial-post.com/2013/09/11/national-household-survey-boomers-in-no-rush-to-sell-homes-embrace-condo-living/

What Would Warren Buffett Do? Part I

What would Warren Buffett do? (WWWBD) This is a question any investor worth his or her salt should ask himself or herself regularly. I will try to answer that question in a series of posts using his own words.

.Invest In Index Funds

Index funds are mutual funds that mimic a specific benchmark.  The most well known of these are the funds that hold stocks in the Standard and Poor's 500. Index funds were developed by the founder of the Vanguard Group and Buffett's fellow octogenarian, John Bogle. The best known of the index funds is the Vanguard 500 Index Fund.  Here is what Buffett had to say about index funds in the 1996 Berkshire Hathaway annual report:

"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges low fees."

Why does Buffett favor index funds?  Again, from the 1996 annual report, he states:

"Those following this path are sure to best the net result (after fees and expense) delivered by the great majority of investment professionals.  Seriously, costs matter"


The Vanguard 500  Index Fund, for example, charges  0.17%  in fees and might represent a good choice for some people seeking low fees.


John Bogle puts another gloss on the use of index funds. In an interview at www.Bankrate.com, Bogle suggests that investors begin with a heavy emphasis on growth index funds and that a transition to bond index funds take place as you near or are in retirement in order to generate income.

(The writer of this blog owns shares in the Vanguard Index 500 and other Vanguard funds, including index funds).

5 Ways to Get the Best Price at a Flea Market

Are you afraid to negotiate? Do you watch with envy those TV shows where the participants negotiate at flea markets and get the best price on the item they wish to buy? Well, that can be you if you follow a few easy tips.

What is it that those flea market purchasers can do that is different from what you are able to do? Let me suggest that the key is preparation and knowledge. When they go to a flea market, they bring with them knowledge of what they want and how they can go about getting it for the best possible price. In other words, they come prepared to buy what they know. They know the value of the items they are seeking and if they do not know it already, they will check it out on their iPad or smart phone. You can do the same in any negotiation. But you must prepare.

1.  Lesson Number 1 is "Be Prepared".

Let's assume you see the item you are looking for, such as an antique chair.  It is priced, however, way above your budget. How can you get it down to a  price that you can afford? Once you have information concerning comparable items (see Lesson No. 1), you must not make it clear to the seller that you are too interested in the item. In fact, you might even walk away to demonstrate how little you are interested

2. Lesson Number 2 is "Be a Bluffer".

Many people assume that you should always open the discussion on price with a low ball offer. Sometimes that can be a good strategy, particularly if the item is grossly overpriced. Let's assume it is overpriced but not grossly overpriced, what should you do?  This is where you begin to admire the object. You tell the seller, what a wonderful piece it is, but you think the price is too high. 

3. Lesson Number 3 is "Admire the Item."

Here is where it becomes difficult for a lot of people. However, there is a simple solution: Let the seller lower the price.  If you have followed the above three steps, you have essentially softened the seller by initially walking away and then returning to show your admiration for the item, but making it clear that it is too pricey for your pocketbook.  If the seller is anxious to make a sale (and who isn't), you may be surprised how quickly the seller will drop the price---and sometimes, dramatically, particularly if you return at the end of the day.

4. Lesson Number 4 is "Let the Seller Make the First Offer."

At this point, you should be prepared to make your best offer based upon your knowledge.  Make it clear that it is your best offer and that you are prepared to buy the item right then. The seller will undoubtedly come back with what he says is his best offer. This is where you agree to "split the difference" and the item is yours.

5. Lesson Number 5 is "Split the Difference".

Will this approach always work?  Probably not, but in a substantial number of instances it will. "Try it, you'll like it."

For more information on negotiating the best deal in all situations, click on my name below.

Tony Basinski

3 Simple Ways to Meditate and Improve Your LIfe

I have written several times about the many benefits of mindfulness or meditation. http://notjustforboomers.blogspot.com/2013/03/understanding-mindfulness.html; http://notjustforboomers.blogspot.com/2012/11/what-is-mindfulness.html; http://notjustforboomers.blogspot.com/2012/12/sherlock-holmes-and-mindfulness.html.  Here are three simple ways to incorporate mindfulness in your daily life:

1. When you awaken in the morning, while still in bed, concentrate on your breathing.  Start with a minute or two and then build slowly from there to 5 to 10 minutes.  It will clear your head and put you in a good mood the whole day.

2. When driving your usual commute to work, concentrate on one word or sound when you begin to feel frustrated with the traffic tie-ups and crazy drivers around you. I use the word "ten" and just keep repeating it until I feel relaxed.

3. Finally, at night when you are in bed, use the 4-7-8 breathing method three or four times. That's where you breathe in for a count of 4, hold the breath for a count of 7 and exhale for a count of 8. I predict you will be asleep even before you finish the last count.

5 Things to Consider when Picking a Cruise

Interested in a cruise this fall or winter?  Lots of people will be cruising to Alaska, the Carribean and even the rivers of Europe.  So, what should you look for in a cruise.  Here are some thoughts based on a  number of cruises we have taken on several different cruise lines:

1. Get the best price by waiting. Cruise lines are always looking to fill up their ships. If you have the freedom to wait to the last minute to book your cruise, you will probably save the most money. On one of our cruises, a Canadian couple paid $98 per person for a three day Caribbean cruise which they booked at the last minute.

2. Look for open seating for your meals.  While it can be interesting to sit with the same people every day of the cruise, why not sit with different people instead. It will make the cruise more enjoyable (particularly if the people you are stuck with are boring or bores).

3. Try to book a stateroom midship. You want to be close to the stairs and elevators (of course, not right next to them) because you will be moving from deck to deck all day and you will avoid unnecessary walking.

4. Stake out your chair at the pool early in the day. Most deck chairs fill up fast, so get there early.

5. Consider booking your own excursions. The ship excursions are usually fairly pricey. You may be surprised how much you can save if you do an internet search on your destination and find a guide who will basically do the same thing as the ship's provider. We did this on a cruise to Ephesus in Turkey and we had a terrific guide, who showed us much more than we would have seen with the ship's guide.  Shop around!

I hope these tips are helpful.  Let me know what you think. Bon Voyage!

How Antoinette Tuff Averted a Disaster in a Georgia School

By now, most of us have heard the story of the courageous woman in the Georgia school, who single-handedly persuaded an armed gunman from shooting up a school and by doing so, avoiding another Sandy Hook tragedy.http://www.washingtonpost.com/local/antoinette-tuffs-911-call-on-ga-shooting-suspect-is-a-portrait-of-poise-compassion/2013/08/22/c62a6fa2-0b3a-11e3-8974-f97ab3b3c677_story.html Her name is AntoinetteTuff and that name could not be more appropriate.  Hats off to you,Antoinette! You are a true hero.

Let me also comment on the tactic she used to defuse the unbelievably tense situation. I have written about the concept of "mirror neurons" before and how they can be used to defuse anger and avoid unnecessary confrontations..http://notjustforboomers.blogspot.com/2013/01/the-best-technique-to-defuse-anger.html http://notjustforboomers.blogspot.com/2013/07/how-to-get-best-service.html Basically, this theory says that we are all hard-wired to reflect the emotions of others and adopt them as our own. That is what Ms Tuff did with the alleged gunman. She made it clear to him that she understood his situation and even pointed out that she had also been through difficult times recently and managed to get through them. Using this technique she was able to get the alleged gunman to surrender to police without a single injury.

Now, I'm sure Ms Tuff never heard of the theory of "mirror neurons", but she knew in her mind that the only way she could avoid tragedy was to treat  the gunman in a way that would defuse his pent-up anger and despair. Most of us, fortunately, will never be faced with this type of horrific scenario, but each of us will face situations that can become explosive such as a hostile customer or a road rage driver. The Georgia school situation demonstrates that showing a little bit of understanding of the other person's position can go a long way in resolving potential conflict. Try it next time you are in a situation where conflict seems inevitable. You may well be surprised at the outcome.

Most folks are as happy as they make up their minds to be.

"Most folks are as happy as they make up their minds to be."  The quote is from Abraham Lincoln and it just about sums up the whole philosophy of positive thinking from Norman Vincent Peale's "The Power of Positive Thinking" to the present day "Happiness Project."http://www.happiness-project.com/ If you are looking for a daily dose of happiness information, check out the Huffington Post GPS for the Soul. http://www.huffingtonpost.com/gps-for-the-soul/