Considering Austin | Partnership Proposal

considering

AUSTIN

PARTNERSHIP PROPOSAL Our objective is to assist affluent families in locating their ideal home and ensure a smooth relocation process to the stunning city of Austin.

9600 Great Hills Trail Suite 150W Austin, TX 78759 (512) 981-8279

INTRODUCTION

What We Do Considering Austin was born out of a vision to help families understand and resolve the negative consequences of living in high-cost, high-tax cities so they can have a secure retirement, build wealth, and enjoy their lives. We use our expertise and personal experience to help others relocate to the Austin area.

Who We Help Our clients are thoughtful professionals who often feel time is their scarce resource. They recognize the value of skill, wisdom, and experience when hiring a real estate professional to help them realize the best possible outcome and enjoy the whole relocation journey.

How We Help We offer multiple specialized services to ensure our clients are cared for throughout their entire moving process. From tailored relocation consulting to an efficient house shopping experience and comprehensive home buyer representation. We believe you deserve to love where you live, and our goal is to make it easily obtainable.

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HOW WE DIFFERENTIATE OURSELVES Our Approach Our six-step process is designed with the client in mind. Our goal is to seamlessly help families through their relocation journey by offering a proven process and specific order of events. This allows us to take intentional time with each client, understand their pain points, and find a solution that not only answers their problems today but provides them with a future they cannot wait to expereince.

Our process walks the client through activities like taking a life inventory of their deepest motivators and aspirations, understanding their financial position, outlining their relocation priorities, and even discovery trips to the Austin area. We continue guiding our clients during the buy or build process and through throughout their move, to ensure they not only find their new home, but thrive in Austin.

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OUR ADVANTAGE Emotional Support We support our clients and their families throughout the entire journey.

Methodical Approach Our custom process ensures all significant aspects of the relocation are managed and even the smallest details are taken into consideration.

Personalized Plan We offer three different levels of support but always include strategic discussions, customized action plans, comprehensive checklists and in person or virtual meetings.

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NAVIGATING HIGH-COST, HIGH-TAX CITIES

In today's landscape, the struggle is all too familiar – the refrain of working hard yet falling behind, the pervasive sense that everything has become more prohibitively expensive. The harsh reality is that housing and taxes now devour a substantial chunk, ranging from 50-80%, of a family's total income. What remains is thinly stretched across life's essentials, forcing challenging trade-offs that erode the quality of life and hinder future potential.

Insufficient cash flow yields two significant consequences: firstly, a retirement savings shortfall that puts retirees at risk, leaving them vulnerable and dependent, impacting not only them but their children and the community. Secondly, the inability of young individuals to afford their first (overpriced) home results in disengagement and frustration. When this sentiment is widespread among millions of young people, it becomes a societal issue, exacerbated by the envy amplified through social media. Courage and proactive measures can avert the first scenario, while a willingness to explore alternative options can counteract the second.

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TAXES AND HOUSING EXPENDITURES The hindrance to saving or investing often boils down to one factor: a scarcity of disposable income. The solutions seem simple—earn more or spend less. However, life is multifaceted, encompassing health, relationships, experiences, and contribution—a delicate equilibrium that defines true wealth.

In high-cost, high-tax cities, earning more frequently translates to working more. For many, who are already pushing their limits, any additional effort exacts a toll on health, relationships, and more.

Consider this: residents of Coastal California, Chicago, and New York City commonly part with 36-41% of their gross income in taxes, with housing claiming another 37-43%. In such locales, a mere 16-27% of total income is left for essential needs like food, clothing, utilities, medical expenses, childcare, education, transportation, and more.

When taxes and housing swallow a significant portion of monthly income, families face challenging choices, such as: Establishing an adequate emergency fund Saving for a home purchase Meeting children's needs, from braces and a first car to college expenses and helping them buy their first home Maximizing contributions to retirement accounts: 401(k), 457(b), Roth and Traditional IRAs Supporting elderly parents Affording vacations and creating lasting memories

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THE DOMINO EFFECT OF UNDERFUNDED RETIREMENT The ramifications of an underfunded retirement are profound: 1. Impact on Quality of Life: Retirees are confronted with challenging decisions that directly affect their well-being.

2. Family Strain: Financial dependence during old age strains familial relations and jeopardizes the financial stability of subsequent generations, creating a ripple effect that extends far beyond the retiree.

A study by Bankrate in 2023 reveals that 57% of Americans lack sufficient emergency savings to cover an unforeseen $1,000 expense. The Federal Reserve Bank's findings indicate that 35% of bankruptcies could have been avoided with a modest $5,000 in savings. Unfortunately, in retirement, individuals often lack the resources and time needed for a financial recovery.

Examining the Retirement Savings Gap, a 2022 Federal Reserve Survey exposes stark realities across age groups, predicting substantial shortfalls that escalate with age. For instance, individuals between 50-60 years old are behind in their retirement savings by $400,000, while those aged 60-70 face a shortfall exceeding $550,000, without factoring in inflation.

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BUILDING WEALTH REQUIRES LEVERAGE AND TIME Traditionally, real estate investment has been the path to wealth accumulation, even for the ultra-wealthy, who allocate over 30% of their wealth to primary and secondary homes.

With a 7.2% rate of return, money can double in a decade.

However, the later individuals begin acquiring assets, the fewer opportunities they have for these financial "doubles."

Commencing this journey at a younger age is pivotal.

Over the past four decades, college costs have surged at three times the general inflation rate, leading to inflated tuition and student loan payments. Consequently, young graduates often cannot qualify for a mortgage to buy a house, shifting the timeline and delaying significant steps in wealth building.

Today, many individuals aren't purchasing their first home until their mid-thirties, contending with child-related expenses well into their late fifties. This delay impedes earnest saving for retirement, resulting in only one significant financial "double" before retirement.

When retirement savings fall short, the chances of amassing enough non-qualified (non-retirement) assets to build wealth diminish significantly.

While exceptions exist, Considering Austin is tailored to assist anyone aspiring to a better, more secure future.

(cont.)

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BUILDING WEALTH REQUIRES LEVERAGE AND TIME The Pitfalls of Procrastination Residing in a high-cost, high-tax state poses a perilous threat: pervasive delays in pivotal life milestones such as purchasing a first home, adequately saving for retirement, and investing to build wealth. Each of these crucial steps becomes deferred by a decade or more, erasing the potential benefits of compounding.

Consider a straightforward example: an annual investment of $10,000 growing at 7%.

Family 1: Initiated at age 25, resulting in a $4.3 million account by age 65.

Family 2: Commenced at age 45, culminating in a $409,000 account by age 65.

The staggering difference amounts to $3.9 million!

More disheartening is the scenario of an individual who remains in a high-cost, high-tax city until age 65. In such cases, the ability to invest $10,000 per year becomes a financial impossibility, leaving their investment account empty and devoid of income-producing assets.

While this might seem unthinkable, a 2022 Federal Reserve Study brings it into stark reality, revealing that only 27% of Americans possess over $50,000 in non-retirement accounts, and a mere 6.7% own rental property. The repercussions of procrastination are indeed far-reaching.

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RELOCATION FOR ALL

Relocating out of high-cost, high-tax cities is not just for those with underfunded retirements or young people struggling to buy their first house. In 2021, Elon Musk relocated from Los Angeles to Austin, citing lower taxes as one reason. And this month, Jeff Bezos announced he was leaving the West Coast for Florida – another state with no state income taxes.

The most frequent objection Considering Austin gets is around relocating and leaving behind what’s familiar. Read what Jeff Bezos wrote about leaving: “Seattle has been my home since 1994. I’ve lived in Seattle longer than I’ve lived anywhere else and have so many memories here. As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.”

Relocating is not just for the people who ‘could not make it.’

When the richest and third richest person in the world relocate to another state, there must be something to it.

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HOW CONSIDERING AUSTIN MAKES A DIFFERENCE Being smart with money is a good idea, no matter who you are.

But it’s more than numbers. People are emotional beings that use data to validate their decisions. Relocating is for people who don’t want to settle for being happy with less. They’re optimistic about the future and are willing to get outside their comfort zone to have the life they want in a balanced, sustainable way.

Our job is not to talk someone into moving to Austin.

Relocating is not always the best decision - every family is different. Sometimes relocating is the best move and sometimes Austin is a family's best option. We are agnostic on both of those points.

The purpose of Considering Austin is to help people make their own informed decisions and efficiently execute a welldesigned plan in a way that feels like a grand adventure.

Success is when our clients have confidence that they are on a sustainable path to prosper financially, physically, relationally, and spiritually. That's what we want to help people do... one family at a time.

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RESOURCES & REFERENCES https://www.bankrate.com/banking/savings/emergency-savings-report/ https://www.federalreserve.gov/econres/scfindex.htm https://research.collegeboard.org/trends/college-pricing/highlights https://www.car.org/aboutus/mediacenter/newsreleases/2023-NewsReleases/1qtr2023hai https://www.prnewswire.com/news-releases/california-housing-affordabilityslides-to-lowest-level-in-nearly-16-years-during-second-quarter-2023-carreports-301898448.html https://www.pewresearch.org/short-reads/2021/08/02/as-national-evictionban-expires-a-look-at-who-rents-and-who-owns-in-the-u-s/ https://www.nar.realtor/research-and-statistics/research-reports/highlightsfrom-the-profile-of-home-buyers-and-sellers https://www.cbsnews.com/news/average-homebuyer-age-millennial-datarealtor/ https://www.federalreserve.gov/publications/2023-economic-well-being-of-ushouseholds-in-2022-retirement-investments.htm https://taxfoundation.org/data/all/state/tax-burden-by-state-2022/ https://www.iii.org/ https://ticas.org/affordability-2/student-aid/student-debt-student-aid/studentdebt-and-the-class-of-2020/ https://www.fortunebuilders.com/st-louis-real-estate-market-trends/ https://www.usatoday.com/money/blueprint/student-loans/average-studentloan-debt-statistics/ https://www.federalreserve.gov/releases/g19/hist/cc_hist_sa_levels.html https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheckto-paycheck-amid-inflation.html https://blogs.chapman.edu/wilkinson/2023/10/20/the-top-10-fears-inamerican-2023/ https://www.visualcapitalist.com/visualizing-the-investments-of-the-ultrawealthy/ https://eric.ed.gov/?id=ED597860 https://crr.bc.edu/

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considering

AUSTIN

9600 Great Hills Trail Suite 150W Austin, TX 78759 (512) 981-8279