1. REAL ESTATE - KEEPING THE HOUSE Have you watched the award-winning TV drama "The Good Wife" that revolves around a scandalized politician and his humiliated wife who leaves her comfortable suburban lifestyle to resume her legal career in order to take care of her family? The couple eventually sell the property as part of the divorce but in a plot twist later end up vying for buying the home ... Read More
mortgage
US Tax Policy and Debt: Too Good To Be True for Long
Lately, the media has been dominated by the compromise on US federal tax policy that has been brokered by President Obama that will lead to an extension of current income tax rates, lower estate and payroll tax rates and an extension of unemployment benefits. It is very likely to pass almost intact and free up the logjam that has hampered this lame duck session of Congress. Uneven Recovery From ... Read More
Ask the Adviser: Should I cosign for a loan?
Let me offer the classic unsatisfying answer: It depends. Before you offer your John Hancock you should understand the risks involved. Just like any other financial decision, it's best to try to do this without the emotion, drama and angst that can complicate a relationship. Easier said than done, I know. But like your investments, you should do your own due diligence and follow your own ... Read More
Ask the Adviser: Should I tell my kids that I have given money to one to buy a home?
Secrets are dangerous. Money secrets can be the worst kind for families. What should you do if you have a child struggling financially or just needs a helping hand when it comes time to buy a home? The trend toward "boomeranging" among newly minted college graduates to return to the family nest is a well-known phenomenon. With persistently high unemployment and an ongoing crisis in real estate, ... Read More
Ask the Adviser: Paying for College by Shifting Assets – Worth the Trouble?
As noted in previous articles and posts, whether or not your student qualifies for federal financial aid for college will depend on the Expected Family Contribution (EFC) calculation. Typically, almost all assets and income are included in this calculation by financial aid officers. There are exceptions to all rules and in this case, federal aid formulas (under the "Federal Methodology") exclude ... Read More
Ask the Adviser: With Rates Falling, Should I Refinance?
Mortgage interest rates continue to be at historic lows. Rates for 30-year fixed rate loans are hovering in the 4% to 4.2% range. There's no real whiff of inflation in the air that could lead to a spike in interest rates any time soon. So should you refinance? Crunching the numbers is crucial. When I was a mortgage banker, the rule of thumb would be it made sense when prevailing interest rates ... Read More
Ask The Money Coach: Should I pay off the mortgage?
Given the roller coaster ride that stock market investors have experienced and the negligible rates offered by banks on savings, it's easy to see why someone might want to use their cash to pay off their mortgage. Being debt free is not only noble but can provide a buffer in tough times since you'll have one less cash outflow each month. For every dollar you pay off in a mortgage, your rate of ... Read More
Get Rich – Slowly but Surely: Investing Rules to Live By and Mistakes to Avoid
A man named Bob Miller once said, "You can get poor a lot faster than you can get rich." These words have never been truer. In the fast-paced world we live in today, it's even easier and faster to lose money with the help of technology. We can easily drown in a vast sea of information. At our fingertips we can chart a stock or mutual fund, follow breaking news, subscribe to a trading ... Read More
Trick-or-Treat: Who’s That Knocking at the Door? Foreclosure Crisis Impact
Much of the US economy is tied to real estate. Buying and maintaining a home creates a very big ripple that impacts lots of industries and jobs. Certainly, the bursting of the speculative bubble in building and lending has resulted in a devastating chain of events including an increase in home foreclosures. In the economics textbooks I had to study back in college, the theory is referred to as ... Read More
