2012 & 2013 Boston Marathon Qualifying times

Boston Marathon Qualifying Times

Below are the Boston Marathon qualifying times for 2011, 2012 and 2013. There are only 25,000 entries allowed to run the race each year. - The 2011 Boston Marathon took place on April 18th. The nice weather led to record shattering performances. All the fast times here will make it difficult to qualify for next year's race. Here is the full 2011 Boston Marathon Race Report.
- The 2012 Boston Marathon has some changes to the qualifying standards. They are actually letting the runners who are dramatically under the qualifying standard register earlier.
[Related - Use The 100 Day Marathon Plan To Run Your Best Marathon Time]

Minimum Boston Marathon Qualifying Times 2012

Age - - - - - Men - - - - - Women18-34 - 3hrs 10min - 3hrs 40min
35-39 - 3hrs 15min - 3hrs 45min
40-44 - 3hrs 20min - 3hrs 50min
45-49 - 3hrs 30min - 4hrs 00min
50-54 - 3hrs 35min - 4hrs 05min
55-59 - 3hrs 45min - 4hrs 15min
60-64 - 4hrs 00min - 4hrs 30min
65-69 - 4hrs 15min - 4hrs 45min
70-74 - 4hrs 30min - 5hrs 00min
75-79 - 4hrs 45min - 5hrs 15min
80&up - 5hrs 00min - 5hrs 30min

The 2012 registration process allows the faster runners to register first. Here are the details. Make sure you check your age and gender category.
Week One of Registration
Sep. 12, 2011 - Qualifiers 20 minutes or under the qualifying times listed above.
Sep. 14, 2011 - Qualifiers 10 minutes or under.
Sep. 16, 2011 - Qualifiers 5 minutes or under.
Week Two of Registration If necessary
Registration will close if the field fills up after September 16th. If there are still spots available on Sep. 19th, all qualifiers can register. This doesn't mean you have been accepted into the race.
On September 23rd, applicants who register during the second week of registration are notified if they qualified for the race. All the applications will be processed, and the fastest runners from the second group of applications will be allowed in.
The times also mean you have to be exactly at or under the listed time. For example, if you are in the Men's 18-34 Division, you have to run 3:10:00 or under. You won't qualify with a 3:10:01 through 3:10:59 anymore.
Exceptions - The Boston Athletic Association recognizes that it has a rich history and wants to honor those who have raced often in the past. Because of this, runners that meet the qualifying times, and who have finished the last ten consecutive Boston Marathons can enter anytime during the registration period. This won't affect the field too much because there are only about 500 runners who have run 10 or more consecutive Boston Marathons.
Price - The entry fee will also increase to $150. For the 2011 race, the entry fee was $130. The invitational entry fees for non-qualifiers will increase to $300 for the 2012 race. The previous fee was $250.
- The 2013 Boston Marathon will be even more difficult to qualify for. All of the age and gender categories will be five minutes faster. Here is the list below.

Minimum Boston Marathon Qualifying Times 2013

Age - - - - - Men - - - - - Women18-34 - 3hrs 05min - 3hrs 35min
35-39 - 3hrs 10min - 3hrs 40min
40-44 - 3hrs 15min - 3hrs 45min
45-49 - 3hrs 25min - 3hrs 55min
50-54 - 3hrs 30min - 4hrs 00min
55-59 - 3hrs 40min - 4hrs 10min
60-64 - 3hrs 55min - 4hrs 25min
65-69 - 4hrs 10min - 4hrs 40min
70-74 - 4hrs 25min - 4hrs 55min
75-79 - 4hrs 40min - 5hrs 10min
80&up - 4hrs 55min - 5hrs 25min

The same registration process for the 2012 Boston Marathon will apply for Boston Marathon qualifying times in 2013.
You might be wondering, why all these dramatic changes? In the past few years, there has been a tremendous surge in the amount of marathon runners all over the country, and the world for that matter. The Boston Marathon has been flooded with applicants.
For the 2011 Boston Marathon, the field filled up with qualified applicants in just over eight hours. After what happened with registration for this year's race, the Boston Athletic Association Executive Director released a video statement on why things filled up so fast. You can watch this below.

Buy From Art.com

Not all marathons meet the requirements for Boston. If you want to run in Boston, make sure you are running on a certified Marathon course. There are two different websites that list qualifying marathons for Boston. U.S.A. Track and Field, and The Association of International Marathons.



If you are serious about qualifying for Boston in the future, start training now. Also, running just under the qualifying time doesn't guarantee you a spot in the big race. Follow the best training plan out there and qualify early. Run a faster time, so you don't get left out in 2012 or in 2013. It's not too early to train, even for the 2013 race. Any marathon run on or after September 24, 2011 at a certified qualifying marathon course can be used as Boston Marathon qualifying times in 2013. Good luck!

- Written by David Tiefenthaler

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Boston Marathon 2011 Race ReportRunning Workouts

A Strong First Quarter for the Stock Market

Stocks continued 2010 trends having their best 1^st quarter in 12 years as the US stock market rose 6%.  Our client portfolios were perfectly positioned with the proper mix of cash, bonds, US and International equities.  For the typical investor, quarterly results included:

• Fixed Income/Bonds: We have continued to underweight this category due to concerns over rising interest rates which could hurt bonds.  Intermediate-term, investment-grade bonds returned a paltry 0.9% for the quarter.
• US Equities: We have been adding to US stocks as corporate earnings continue to be impressive.  The DJIA and S&P 500 were up 6.4% and 5.4% respectively.
• Foreign Equities: Due to war and political instability in the Middle East, the earthquake/nuclear problems in Japan, and ongoing financial instability in Europe, we have not been adding money here as foreign stocks grew 3%.
• Cash: We continue to hold a bit more cash than usual for liquidity and buying opportunities on down days in the markets.

Despite ongoing concerns about the health of the consumer and robustness of the recovery, the evidence continues to show momentum towards improvement.

• New claims for unemployment benefits continue a downward trend.  The pace is slow but the trends confirm slight increases in hiring and falling new claims.
• A recent survey of chief executives shows higher sentiment towards growth, expansion and hiring in the coming year.
• Corporate profits are expected to continue to grow at a healthy rate although at a slower rate than last year.

Finally, the economy has shown an affirming resiliency.  Despite the collapse of the Portugese government, ongoing European debt concerns, governments toppling in the Middle East and North Africa, a crippling of the 3^rd largest economy in the world (Japan) plus ongoing nuclear radiation concerns, US stock markets bounced 5% off the mid-March lows.

As the economy continues to slowly improve, the consumer has not shared in the recent market exuberance.  Corporate profits have occurred despite the ongoing problems of consumers.  Can the profit outlook continue?  What is the fate of the consumer if hiring doesn’t pick up?  Read more about this disconnect at my blog: chris-rhim.blogspot.com

As always, please contact me at (301) 655-4970 should you have any questions or concerns.

Chris

Fee-Only    ◊  Financial Planning  ◊  Investment Management  ◊  Divorce Planning   ◊  EB-5 Investors  ◊   NAPFA-Registered 

Social Security Not a Pension

 [AUTHOR'S NOTE: This ran in the Sunday, April 3, 2011 Valley News Letters to the Editor page.]
Ezra Klein's March 30 article on Social Security characterizes the program as "one of the stingiest national pension programs in the developed world".  He goes on to state: "At the heart of Social Security is a simple vision: The richest country the world has ever known can guarantee its citizens a decent retirement."  The problem with these claims is the fact that Social Security was never intended to be the main source of retirement income but rather social insurance. The reality has always been that Social Security is not a retirement plan and is not currently funded with the long-term in mind.

The Social Security Act was passed to provide limited benefits to combat poverty and unemployment; alleviate the burdens of widows and fatherless children; and provide a benefit for the elderly, retirees and the disabled.

A private pension works by accumulating a lifetime of worker contributions, investing them, and paying out a benefit upon retirement.  In contrast, Social Security is a conduit system whereby current worker payroll taxes are collected and paid to today's retirees.  Social Security cannot prefund by investing in marketable assets such as equities, because federal law prohibits it from investing in assets other than those backed by the U.S. government.  Excess collected funds purchase non-marketable US Government debt (the Social Security Trust Fund) and become part of the overall US deficit or debt-financed spending.  This government debt is backed by "the full faith and credit" of the US government.

Due to Baby Boomer retirement, Social Security benefits paid will exceed payroll taxes collected within approximately 10 years.  At this point, the Trust Fund securities will be redeemed drawing down the Fund.  While some argue the Fund is merely an accounting trick, others cite the US debt securities as obligations of the US government which the government must pay.

Due to its stated mission and funding mechanism, Social Security should not be anyone's primary planned for source of retirement income.

Christopher Rhim
Norwich

Egypt, the Middle East and Money Managers: A Disturbing Reality

I remember reading last year the almost threatening advice from a stock-broker who claimed, "If your investment advisor isn't putting you into African investments, they simply do not have a world view" or a clue as the rest of the article went.

Fad investments, while not new, took on new resiliency in 2010.  Burned by traditional wealth building blocks like stocks and real estate, and unable to earn anything from bonds, investors plunged into riskier investments with reckless abandon.  Frontmen touting the potential of commodities, distressed properties, antiques, junk bonds, and emerging market stocks and bonds became part of the new investing lexicon in a low-interest rate world.  Can't earn a lousy 4% on a US Treasury?  Then buy higher-yielding sovereign debt (bonds of foreign nations)!  Tired of debt problems and a bleak European economic outlook?  Then look to the BRIC countries (Brazil, Russia, India, China) and Africa many of which are commodity based whose raw materials are fueling the next big economic revival.

Ah, commodities and specifically oil from the Middle East.  This appeared to be the sole focus of some money managers as I read their reaction to the overthrow of Hosni Mubarak of Egypt.  Said one, "to me, it's like a natural disaster, in terms of the economic impact... it doesn't have as much to do with economics as it has to do with politics".  I wouldn't characterize the potential loss of a pro-Arab ally that signed a peace treaty with Israel and who controls the Suez Canal (through which approximately 40% of the world's oil flows) a natural disaster like a hurricane.  Said another, "The importance of Egypt is geographical.  It's only a $200 billion economy with 80 million people... as long as the army remains organized, the canal will stay open."  Armies are not democracies.  It remains to be seen whether the more secular or radical Islamists take hold of the opposition-leading Muslim Brotherhood.  Stability is no sure thing regardless of what the army does.

With the future of such a vital world region in doubt, we need to drop our naivete and simplistic world view for one that confronts the current and long-term realities.  For 20 years, we have had US fighting ground troops engaged off and on since the 1991 Gulf War that liberated Kuwait.  This means a generation of Middle East youths have seen American troops fighting in their area of the world their entire lives.  This is a protracted problem that will continue for the forseeable future.

Money managers who view this region simply in terms of oil and stability will fail to anticipate the social and political changes that impact money flows and investments.  For political as well as economic reasons, our attention will increasingly be drawn to the Middle East and other troubled areas throughout the world.

Lets hope we investment advisers have our minds as well as our eyes fully open and avoid the mentality of another adviser who stated, "Long-term, this is a blip on the radar screen".  Hardly.

Should You Be Worrying About Bonds?

Today, Standard & Poor's (the bond rating agency) cut the debt of Japan to AA-, it's fourth highest rating.  I remember back in 2003, a client asking me about his Maryland municipal bonds that were AAA-rated, paying excellent coupons and performing well.  He asked why we didn't go out and load up on more.  I cited Japan's last rate cut in 2002 and stated bluntly, "If they can cut Japan's rating, they could Maryland's too."

Worries over bond downgrades will remain a major story for the remainder of 2011. 
Almost unheard of in the history of the US bond market are discussions of US sovereign debt being downgraded and the near panic that would ensue.  This past fall the city of Harrisburg, PA missed a bond payment prompting default procedures and a sudden chill in the almost $4 trillion municipal bond market.  An article this past week in the Wall St. Journal discussed the letter a MD resident received regarding her MD Health and Higher Education bonds and the letter offering 50 cents on the dollar if she sold (she did).  If more stories of defaults surface and people panic, the trading markets for more than a few bonds could all but disappear overnight. 

Question: So, I don't want to panic but do want to take steps to protect myself, what do I do?

• The first thing you need to do is have an adviser pull some research on the bond.  Trading history, size of the offering, the prospectus if available and most recent disclosure document would tell a lot.  An examination of the quality of the bond vs. similar competitors should be done to truly evaluate how it would hold up in a panic. 
• Second, an examination of any change in your risk profile should be discussed and noted by your adviser.
• Third, the bond needs to be examined in relation to other bonds in your portfolio; and another time against the client's overall allocation.

Bonds are confusing; I just don't understand them and wonder if I should be in them at all. 

• Bonds are a lot more difficult for the average investor to understand.  Data is readily available regarding any stock or mutual fund in existence.  To research a particular bond requires knowing where to look plus perspective on the specific market your bond exists plus the bond market as a whole. 
• Unlike stocks which trade on exchanges like NASDAQ, AMEX, and the New York Stock Exchange, there is no organized exchange where bonds trade. 
• Bonds are priced on the spread (the difference between the bid and ask price).  The majority of the time, individual buyers buy and sell completely blind to the spread the broker receives for trading the bond.  Because of this, retail bond investors often get taken advantage of.
• Knowing which bonds are safe, in today's market, is really left to professionals who are experienced in the bond market.  There is a vast array of bonds with myriad characteristics that the average investor is not equipped to understand.   
• Your best defense is working with an adviser you trust.

At Mid-Recovery: What Does Our Economy Look Like?

2010 proved to be a continuation of the recovery that began in 2009.  For the year, the Dow Jones Industrial Average finished up 11% with the S&P 500 up 12.8%, and NASDAQ up 16.9%.  Concerns over rapidly rising interest rates proved false with rates actually dropping.  When rates fall, bonds do well as just about every category of bonds had positive returns.  The second year of equity gains can be attributed to five consecutive quarters of strong corporate profits.  Businesses continued the trend of reducing costs, holding steady on payroll and holding greater than normal cash.  Strong corporate performance and business spending remains the best hope for a stubbornly high 9.4% unemployment rate.

Now that talk of a double-dip recession has faded, what will the next few quarters look like? 

The Republican-controlled Congress will attempt to bring more fiscal discipline to new legislation and the budget ceiling.  Concerns over both Federal and state budget deficits will grab headlines causing investors and businesses alike to remain more cautious than normal.  Investors caught a temporary break with the extension of many tax cuts from 2010 but new health care mandates will draw employers' attention to spiraling costs.  While 2010 was a speculator's market in commodities and foreign currencies, look for a reversal particularly in gold and silver.  We expect commodities pricing to revert back to the rules of supply and demand with China and other emerging economies increasing their demand for such raw materials.  Money will continue to flow to the higher interest-rates in foreign currencies until either inflation or a stronger US economy draws money back to less speculative investments.
Result: Take diversified approach to both US and foreign equities; clear winner is undetermined.

We will probably will not see higher inflation, municipal bond defaults nor higher interest rates in 2011.  The Fed is scheduled to buy $600 billion of additional Treasuries this Spring to help keep rates low.  With companies still below capacity, businesses will unlikely raise prices for either products or wages. Due to the new makeup of Congress, government spending and investment will add less to overall growth.

Still hampering the economy are record high personal bankruptcies and commercial real estate delinquencies.  Look for only gradual improvement in 2011.

What are some of the wild-cards in 2011? 

• Federal Stimulus: Quantitative easing (or, the Government pumping an additional $600 billion into the markets) favors investors who buy riskier assets such as high-yield bonds, commodities and foreign securities.  The Fed feels this stimulus is necessary to ensure stability in the markets.  A change in tenor by the Fed could prove destabilizing. 

• New Jobs: 2010 non-farm job growth was 1 million new jobs.  The problem is that we had seven million more jobs at the market peak in December 2007.  There is a direct correlation to the number of new 2011 jobs and overall growth in the economy. Will the new long-term unemployment rate be 6% instead of 5%?  What are the social and economic implications of such a change?
• China:  Increasingly, US policies are determined by events in Asia with China at the center.  What impact will China's military buildup (and political response) have when confronted with an untested, new leadership in an increasingly unstable, nuclear North Korea?  China's double-digit growth rates and larger world role will continue to draw Wall Street firms and institutional investors. Closer ties to the West will bring new pressures on a China that may be unable or unwilling to meet the traditional responsibilities of a world power.  China's thirst for resources and the constant inflationary pressures on food, housing and fuel will challenge Chinese leadership in dealing with an increasingly demanding  Chinese work force. 

Buying Real Estate Investment Property in your IRA

Is It Appropriate for You?

Christopher Rhim, CFP®, CDFA™

Asked to comment on this subject by a real estate professional and friend, I jumped at the chance to dig deep into the nuts and bolts of this alternative investment.  The research revealed two perspectives with real estate professionals (brokers, agents, banks, trust companies) on the one hand and financial advisers (certified financial planners, registered investment advisers) on the other. 

[Full Disclosure:  I am a fee-only, certified financial planner with over 20 years experience in financial planning.  I have no skin in this type of transaction:  I sell nothing, only provide advice.  I've never been a stock broker; never sold insurance; am not an attorney; do not accept any type of commission or referral fee for anything and have a fully independent, unaffiliated financial planning practice.  In this discussion, I consider myself a better-educated-than-most financial consumer.]

A synopsis of the Pros and Cons is presented first with more detailed information on the mechanics of IRA real estate investing following.

SYNOPSIS OF RESEARCH

PRO

·        This is a unique alternative to traditional investing.  Some key elements with investment real estate include rental income and distributions, capital appreciation and the ability to enjoy the benefits of tax-deferred growth. 

·        If you have an entrepreneurial spirit and are savvy about the market and investment properties, this type of investing may appeal to you. 

·        Diversify your retirement portfolio in a wide variety of assets such as condos, raw land, commercial property and more.

·        Consider this investment within a Roth IRA instead of a traditional IRA. Distributions aren’t taxed after 5 years.

·        Partner with other IRA owners to invest in multiple or larger properties.

CON

·        Managing your own self-directed IRA is more challenging than putting money in the stock market. Custodians do not vet investments and take no responsibility for downside risk.  IRA owners or their financial advisers must perform all the due diligence.

·        A primary advantage of investment real estate is the deductibility of all expenses plus capital gains tax treatment (currently 15%) when you sell.  In an IRA, none of the expenses are deductible and profits are taken at higher ordinary income rates. No depreciation deductions. 

·        You are subject to tax penalties if you need to make capital contributions to the IRA or disqualify the account. 

·        Unanticipated repairs such as roof replacement, tax assessments, systems failure, and fire damage may deplete available cash diluting your return on investment.

·        Banks charge higher rates for loans than traditional residential mortgages.  Loans must be nonrecourse (banks cannot go after other assets and the IRA owner cannot extend credit to the IRA).

·        Once required minimum distributions commence (age 70.5) you may not be able to/or want to sell the property.  It may be possible to transfer part of the IRA to yourself to meet this requirement.

·        Taxes are due on the profits of leveraged real estate (UBIT).

CONCLUSIONS

§                    This is a unique investment for a relatively sophisticated investor who has already taken full advantage of and maximized use of more traditional investment opportunities   

§                    The onus of due diligence is on the investor alone.

§                    There are significant costs of entry and exit with real estate. 

§                    Liquidity is an issue.

§                    Knowledge of the real estate market and detailed specifics of the acquisition property are prerequisites.

§                    The advice of an experienced real estate broker, attorney and CPA would be recommended prior to acquisition.

WAYS TO BUY REAL ESTATE IN YOUR IRA

USE CASH

By far the simplest way is to pay cash.  After you've identified a great investment property or piece of raw land, simply plunk down (let's say $500,000) from the IRA and it's yours!

A few caveats in this scenario:  

a)     Neither you nor any disqualified person can use it (even if you subsequently rent it).

b)    The purchase can not be from a related party.

c)     The IRA cannot be used to enable either you or a disqualified person in any prohibited transaction.

Remember, this is a retirement asset with the long-view in mind (unless you are an experienced investor with a real estate background with the intention of ‘flipping’ the property).  So, you need to think of the property's income and/or appreciation potential.  Also, this cannot be some creative way to get your in-laws beachfront property. This has to be an arms-length transaction between unrelated parties with no undue influence.  

Disqualified Persons

The law specifically prohibits transactions between disqualified persons i.e.: a spouse; parents; grandparents; children (and their spouses); any fiduciary of the IRA; any entity (like an LLC) of which at least 50% is owned by the fore mentioned; officers, directors, greater than 10% owners or highly compensated employees of the entity.

[NOTE: Disqualified person under the Internal Revenue Code does not include siblings or aunts, uncles and cousins of the IRA owner.]

PERSPECTIVE

• While cash is the cleanest way to complete this transaction, there is a higher risk level with such a large cash outlay.  Investment managers rarely allocate greater than 4-5% of their principal to any single asset.  If you already own a home, you may be greatly increasing your aggregate real estate exposure.

• Real estate tends to be a cyclical investment.  One should contemplate a “what if” scenario of an extended down period where valuations and rents/income suffers.  You need to allow for enough cash to pay for the covering costs of the property under any future circumstances.

• It should also be stated that before any purchase is contemplated, the purchase should be in a reasonable proportion to your overall retirement portfolio.  As a separate asset class, a typical total allocation to investment real estate in a well-diversified portfolio is 5-10%; higher for persons with a real estate background or experienced investors.  Under this scenario, a real estate purchase of $100,000 would be appropriate for someone with a minimum portfolio size of at least $1 million or more in other assets.

OBTAIN A MORTGAGE TO BUY REAL ESTATE

A mortgage allows you to leverage the down payment, thereby freeing up the remaining cash for other investments.  For example, using a 10%/$50,000 down payment on a home allows you to obtain a property with a value of $500,000.  That's using leverage.  

When buying investment property in your IRA, the property is collateral for the loan.  There are some restrictions which include:

a)     Minimum down payment typically 30% or more.

b)     Not all banks will finance the debt without a personal guarantee.

c)      The loan cannot be guaranteed by the IRA owner or any disqualified person.

d)     An investment that generates income with debt financing (e.g., purchasing real estate with a non-recourse loan in an IRA) is responsible for Unrelated Business Income Tax (UBIT) in direct proportion to the gain/income that's debt financed.

ü      Taxes paid must come from the IRA.

ü      These taxes are paid at Trust tax rates which are generally higher than personal tax rates.

Self Dealing


Your IRA may not buy an investment from or sell an investment to a disqualified person. This is known as self dealing.  Your IRA may not:

·        Buy property that you currently own.


·        Buy property of your parents or in-laws (lineal descent).


·        Issue a mortgage on a relative’s new residence purchased by a family member who is a disqualified person as listed above.


·        Grant a child a second mortgage for the down payment on his or her first home.


·        Buy stock from the IRA owner.

·        Purchase restricted stock from a family member.

Question: What would happen if you couldn't make the mortgage payments (i.e. you depleted your IRA)?

Ø        You can't contribute more to make the mortgage payments without tax penalties.

Ø        Possible foreclosure

OTHER WAYS TO INVEST REAL ESTATE

Form an LLC

Your IRA can co-invest with other parties by first forming an LLC that will buy a property.  The IRA can participate in the LLC formation so long as the owner and related persons own less than 50% of the LLC in aggregate. 

This set up may create some problems of self-dealing and may be deemed a prohibited transaction particularly if you have a role in any entity in which your IRA is an investor.  Consult an experienced real estate attorney to understand what you can and cannot do.

Multiple Investors – No Financing

All parties plus the IRA purchase the property.  This way, you avoid financing problems and avoid UBIT issues.  Agreement between all parties is the key to success.  Exit strategy between multiple partners is critical.

Invest in Someone Else’s Business

Avoid the hassles of investing with others.  By investing in someone else’s business and staying out of management decisions, you could receive distributions just like an annuity only without the fees.

Buy Distressed Properties

If you have knowledge of the local real estate market and how to fix up properties, you could buy select properties, renovate and resell.  You would have to work with an experienced broker who knows what to look for and have a realistic understanding of investment costs, renovation costs and a feel for how long before you could sell the property and capture a profit. 

Disclaimer: Christopher Rhim of Green View Advisors is a financial planner and does not provide tax or legal advice.  Neither he nor Green View Advisors endorses or recommends any of the aforementioned strategies, any company, or specific investments.  Any information communicated is for educational purposes only and should not be construed as tax, legal, or investment advice.  Whenever making an investment decision, please consult with your legal, tax, and accounting professionals.