When people think of financial advisors, they think of professionals who can help with retirement and investment planning. But if you look at the histories of some financial experts, such as what you would find in the Pete Briger profile, you will see that financial experts actually offer a broad range of services that you can benefit from.
The next time that you are unsure how to go about solving a financial problem, you should give some consideration on going to see a certified and experienced financial advisor. The advice you can get from a trained professional will help you to plan for some of the most important moments in your life.
Pay For Your Child’s Education
When your child is born, you immediately want the very best of everything for your little bundle of joy. But everything can be expensive, so you narrow it down to the very best of the things your child will need to make planning more affordable. The problem is that having a child is expensive and the more planning you can do and the more time you can give yourself to prepare for big expenses, the easier it will be to handle them.
Soon after your child is born, you should make an appointment with a financial advisor to start saving for your child’s college education. You can give your child a huge start on their adult life by helping them to get an education without the burden of student loans. A financial advisor can help make those plans a reality and put your mind at ease.
Plan For A Big Vacation
Do you dream of spending a month in London, England but have no idea how you could pull it off financially? Instead of giving up on your dreams, you should talk to a financial advisor and put together a plan to make those dreams come true. With good planning and the help of a financial expert, you will be sipping tea along the banks of the Thames River before you know it.
Protect Your House
You and your wife just closed all of the paperwork on your first house and you cannot wait to start your life together. While it is not pleasant to think about, part of responsible planning involves creating contingencies for situations that could threaten to take away that home. If you are a two-income family, then what would you do if one of you passed away before the mortgage was paid?
A financial advisor can help set up programs that will cost you very little each month, but they will protect your financial investment. When it comes to protecting your home and your family, you can get peace of mind when you talk to a financial advisor.
Plan For The Future
Do you want a rainy day fund that you can use when emergencies happen? Do you plan on doing a large remodeling project to your home and you want to start putting together the funding for it? Financial advisors offer more than just retirement planning services. You can talk to a financial advisor about any long or short-term savings need you may have and work with your advisor to put together a plan.
When it comes to planning your financial future, it is always best to leave the details to a professional. You should sit down with a financial advisor and lay out all of your plans for the future and see how a financial expert can help make your plans come true.
The following post is brought to you by Ben Alderson
Putting down more than 20% on your New Home? That might be a mistake.
Many Americans believe that buying a home with cash is something only the very rich can do. The fact is however that, in the second quarter of 2014, almost 40% of all the homes purchased in United States were cash deals.
While that may sound like a dream situation to most, the fact is that purchasing a home with cash, and thus not taking on any debt, might not actually be the best way to put your money to work in the long run. Below are three reasons to consider not paying for cash for your next new home, even if you have the cash available. Enjoy.
Reason 1: The loss of your home mortgage interest deduction. One of the biggest benefits of financing a new home is the home mortgage interest deduction that the IRS gives homeowners. What this does is give a homeowner the right to deduct interest paid, up to $1 million, on their first and/or second home, which can be a huge tax savings.
Using a $300,000 home loan as an example, the IRS would give a tax savings of almost $4000 in the first year, money that you would not get back if you had paid cash for your new home. This also lowers the effective interest rate that you have on your home mortgage loan as well.
Reason 2: The loss of leverage from your real estate purchase. When you own real estate you get rights to the full market value fluctuation on that real estate, whether you borrowed 90% to purchase it or paid it completely in cash. Using the same $300,000 home loan from Reason #1 as our example, let’s say that your home appreciated 2% in the first year. That’s $6000 return on your investment.
Now let’s say that your neighbor purchased a similar property for the same amount of money but only put 20% down. That same 2% means they get a $6000 return on their investment as well but, since they only invested just over $80,000 (their $60,000 down payment and 12 mortgage payments), it means they’re actually getting a return of 7.44% compared to your 2%.
The fact is, one of the best benefits of buying real estate is the leverage that you get from doing so, one that’s practically unmatched in any other type of investment. Think about this way; what if you were allowed to purchase stocks with only a 20% down payment, but allowed to keep all of the appreciation that they made?
Reason 3: Paying cash for a new home isn’t the best way to get a return on your money. This one gets a little tricky but still is worth considering. Yes, paying cash for your home means that you’ll pay much less an interest because you won’t have a mortgage. Right now the cost to borrow money is approximately 2.5% and, if you can find an investment that will produce a net return that’s greater than that, you might be better off borrowing money to buy your house and investing the rest of the cash somewhere else.
Simply put, while being able to pay cash for a new home is certainly an achievement worth celebrating, the fact is that there are a number of better ways to use your money to make more money than using it to purchase a house outright.
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One of the last things that most people want to do is talk with debt collectors or creditors but, if you find yourself falling behind on your bills and your cell phone is ringing off the hook, it might be a good idea to talk with them because, in many cases, you’ll find that they’re quite willing to work with you.
Below are 8 of the Top Tips for dealing with debt collectors and collection agencies. Enjoy.
1) Whatever you do, avoid drama at all costs. The simple fact is that if you lose your temper you probably won’t get anywhere, so try to stay calm and, if you find yourself losing your cool, ask the representative call you back at another time. Also, you can tell them that when they call back you’d like to record your conversation, something that usually puts them on their best behavior.
2) Make sure to take copious amounts of notes. When you’re on the phone you should either have a pen and paper handy or, if you type fast, a computer or tablet. Take down the name of the person you talk to, the time and date you talked and a good bit about what you discussed. This can help you to take a lot of the emotion out of your conversation and also have a record so that, during their attempts to collect on your debt, you’ll know if the creditor or collector actually broke any local, state or federal laws.
3) If you’re married, stick to any story that you come up with, especially if it stretched the truth a little bit. While the person on the other end of the phone doesn’t really care about why you can’t pay your bills, if you have a hardship situation they might be more inclined to help you get it straightened out. With that in mind, it’s good to be as consistent as possible, especially if you’re married, so that you don’t make any mistakes that cause your debt collector to believe you’re not being truthful.
4) Get everything that you talk about in writing. If and when you come to payment arrangement with your creditor, you definitely should get everything that they agreed to in writing before you pay them a dime. If you don’t, and pay them before anything is written down, it will be your word against theirs and might end up causing more problems than you originally had.
5) Ask as many questions as possible and don’t shy away from asking more. Simply put, the more you know about what your creditor or debt collector is planning, the more you can plan to deal with it.
6) Do your best to deal with creditors, not collection agencies. This one is quite important. If at all possible, trying to take care of everything with your creditors before they send bills to a collection agency. The fact is that even though late payments will negatively affect your credit report and your credit score, if your account is sent to a collection agency it can cause even more damage.
7) Before signing any agreements, know what you can afford to pay. If you can come up with a lump sum to be able to resolve your debt, you can usually negotiate a better settlement. Once that’s done, you can agree on a payment plan but only if you understand the total amount that you will have to pay.
8) Lastly, don’t just read but save all your mail from any creditors or collection agencies. When you get it you should first read it fully, then save it in a special file just in case.
One last note; while there are many companies out there that tell you that can help you to deal with credit companies and collection agencies, most of what they offer can actually be done on your own for much less money.
It would be fun to rack up your credit card bill and go on a shopping spree, but that’s not what I’m advising. As long as you are responsible and pay off your balance each month, it can actually make smart financial sense to use your credit card for everything.
I use my Costco American Express credit card for everything. At 3% back for gas stations, 2% back at restaurants, 2% on travel purchases, and 1% on other purchases, not the cashback from purchases from Costco, that’s a lot of money you’re throwing away. Add in paying your electric, gas, and cable bills with your credit card you imagine how much each month you’ll rack up in rewards dollars, let alone over the course of a year. Don’t believe, take a look at what you currently spend each month on bills and spending money and do the math!
Your Credit Score is Important
Whether you’re just starting out and have no credit, or you’re looking to continue to build your credit due to mismanagement in the past, using your credit card responsibly by paying off the full balance each month will actually help your credit. A solid payment history is reported to credit bureau’s each month, whereas a debit card does not show on your credit report.
Whether it’s making a big money purchase, or simply do not want to carry cash around, credit cards are more universally accepted than even debit cards. Ever try to check into a hotel or rent a car with your credit card, a hold is placed on your checking account for incidentals, and that hold is even higher when using a debit card. Why tie up the money from your bank account when you can use your credit card and the hold will come off in a couple days from your credit account, which can take twice as long to come off with a debit card. Not to mention the rewards you’re getting by purchasing with your credit card…see…
If you find yourself enjoying the seemingly endless credit limit and are spending too much each month and cannot pay the full balance when it’s due, then perhaps going back to a budget with your debit card works better for you. If you’re disciplined though, and want to earn hundreds of extra dollars every couple months just by spending what you normally spend each month, but this time using your credit card, you can enjoy those rewards checks!