- The client, Joe Seraphin, is the author's 30-year-old brother who works as an auto shop manager and owns a home. He has a bachelor's degree in psychology.
- Joe has fully funded his Roth IRA for the past 7 years and has a separate brokerage account for day trading. He wants advice on his mortgage and investments.
- The author helped Joe identify financial goals, including home improvements, renting his current home and buying a new one for retirement, and retiring with $3 million. However, Joe's goals lacked specifics.
This document provides an overview of how to purchase mortgage notes, including performing and non-performing notes. It defines key terms like mortgages and notes. It discusses the types of notes, benefits of different notes, pricing strategies, due diligence process, and strategies for working with homeowners on non-performing notes. The document also includes several case studies as examples and recommends sources to find notes and get started in note investing.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
Becky Rhodes is a mortgage planner who provides professional advice to help consumers navigate the complex mortgage refinancing and homebuying process. She discusses why it is important for consumers to consult with a mortgage planner well in advance rather than waiting until the last minute, as proper planning can help qualify borrowers for better rates and programs. Rhodes also explains how factors like credit scores, loan-to-value ratios, and debt loads impact financing options and rates. Her advice is for borrowers to start discussions with a mortgage planner months before deadlines to allow time to improve credit or financing strategies.
This document is a guide to understanding corporate credit and how to get business funding. It discusses what credit is, the importance of credit for businesses, and how to prepare a business to get corporate credit. The key steps are to incorporate the business, get an EIN and DUNS number, open business bank accounts, create a professional website, list the business phone number, ensure accurate contact information across platforms, get vendor credit, and maintain good personal credit. Following these steps makes a business appear more attractive to lenders.
A reverse mortgage allows senior homeowners aged 62 or older to convert equity in their home into tax-free cash payments, while continuing to live in their home. They do not require monthly mortgage payments or repayment of the loan until the last borrower permanently moves out or passes away. Common myths about reverse mortgages include that the borrower could lose ownership of their home or owe more than their home is worth, but reverse mortgages are structured to protect borrowers from these outcomes. Eligibility requires the home to be the borrower's primary residence and for them to receive counseling on reverse mortgage options and costs.
- The document provides information on foreclosure, foreclosure options, foreclosure scams, and how to avoid them. It explains what foreclosure is, the options homeowners have to avoid it like loan modifications or short sales, and common foreclosure scams involving fake counseling, illegal fees, or fraudulent legal services. It advises homeowners to only work with HUD-approved agencies and counselors and to never pay fees upfront to avoid being scammed.
Survey on Personal Finance Important TopicsMegan O'Neil
A survey was conducted from November 2011 to April 2012 on important topics in personal finance. The survey had 724 respondents from 13 states. Preliminary results showed that respondents were predominantly female, highly educated, and most were between the ages of 18-80. The Western region of respondents expressed greater concern than other regions for topics related to mortgages, loans, paying yourself first, debt and credit, and scams/frauds for both adults and youth. The Midwest and Western regions shared higher concern for topics related to mortgages and financing healthcare for older adults. The results indicate regional differences in perceived importance of various personal finance topics.
A deed of gift is a legal document that establishes a transfer of money or property from one person to another as a gift with no expectation of repayment. It provides clarity about the intentions of the gift to avoid any potential future disputes over whether the transfer was a loan or gift. A deed of gift is particularly useful when gifting money to help adult children or transferring personal assets to a spouse to protect them if the business owner is sued. It can also help document gifts when distributing an estate to ensure all heirs are treated as intended by the deceased.
This document provides an overview of how to purchase mortgage notes, including performing and non-performing notes. It defines key terms like mortgages and notes. It discusses the types of notes, benefits of different notes, pricing strategies, due diligence process, and strategies for working with homeowners on non-performing notes. The document also includes several case studies as examples and recommends sources to find notes and get started in note investing.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
Becky Rhodes is a mortgage planner who provides professional advice to help consumers navigate the complex mortgage refinancing and homebuying process. She discusses why it is important for consumers to consult with a mortgage planner well in advance rather than waiting until the last minute, as proper planning can help qualify borrowers for better rates and programs. Rhodes also explains how factors like credit scores, loan-to-value ratios, and debt loads impact financing options and rates. Her advice is for borrowers to start discussions with a mortgage planner months before deadlines to allow time to improve credit or financing strategies.
This document is a guide to understanding corporate credit and how to get business funding. It discusses what credit is, the importance of credit for businesses, and how to prepare a business to get corporate credit. The key steps are to incorporate the business, get an EIN and DUNS number, open business bank accounts, create a professional website, list the business phone number, ensure accurate contact information across platforms, get vendor credit, and maintain good personal credit. Following these steps makes a business appear more attractive to lenders.
A reverse mortgage allows senior homeowners aged 62 or older to convert equity in their home into tax-free cash payments, while continuing to live in their home. They do not require monthly mortgage payments or repayment of the loan until the last borrower permanently moves out or passes away. Common myths about reverse mortgages include that the borrower could lose ownership of their home or owe more than their home is worth, but reverse mortgages are structured to protect borrowers from these outcomes. Eligibility requires the home to be the borrower's primary residence and for them to receive counseling on reverse mortgage options and costs.
- The document provides information on foreclosure, foreclosure options, foreclosure scams, and how to avoid them. It explains what foreclosure is, the options homeowners have to avoid it like loan modifications or short sales, and common foreclosure scams involving fake counseling, illegal fees, or fraudulent legal services. It advises homeowners to only work with HUD-approved agencies and counselors and to never pay fees upfront to avoid being scammed.
Survey on Personal Finance Important TopicsMegan O'Neil
A survey was conducted from November 2011 to April 2012 on important topics in personal finance. The survey had 724 respondents from 13 states. Preliminary results showed that respondents were predominantly female, highly educated, and most were between the ages of 18-80. The Western region of respondents expressed greater concern than other regions for topics related to mortgages, loans, paying yourself first, debt and credit, and scams/frauds for both adults and youth. The Midwest and Western regions shared higher concern for topics related to mortgages and financing healthcare for older adults. The results indicate regional differences in perceived importance of various personal finance topics.
A deed of gift is a legal document that establishes a transfer of money or property from one person to another as a gift with no expectation of repayment. It provides clarity about the intentions of the gift to avoid any potential future disputes over whether the transfer was a loan or gift. A deed of gift is particularly useful when gifting money to help adult children or transferring personal assets to a spouse to protect them if the business owner is sued. It can also help document gifts when distributing an estate to ensure all heirs are treated as intended by the deceased.
Learn more about what the consumer advocate group has to offer their member. Call. Or Chat online today. We have real hands on experience where other companies dont.
Dan Keller 2019 Mortgage Planning Packet for Home BuyersDan Keller
Seattle Mortgage Professional and top 1% in America Loan Officer shares his exclusive mortgage planning educational packet that he gives to all home buyer clients. How to get a great rate, how to ensure there are no hick-uos in the buying process, how to make the best financial choice when buying a home!
Remington Senior Funding: Introduction to Reverse Mortgagesremington
An Introduction to facts about Reverse Mortgages, including the most frequently asked questions and examples of how seniors are using Reverse Mortgages to supplement their income today.
The July issue of REIA News has just been released.
In this issue:
• Demolishing the negative gearing naysayers
• Have your say on qualifications
• Debunking the 7 year itch myth
Linda & Carlos Debello
Phone: 07 3263 6085
Mobile: 0409995578
Website: http://www.ljgrealestate.com.au
中国网站: http://www.ljgrealestate.com.au/index.php?lan=ch
Here is a great document about stopping the foreclosure process in Michigan. You can also find more information at www.stopmichiganforeclosure.com it is a website with a lot of valuable information about avoiding foreclosure on your home in Michigan.
The document provides information about estate planning for new parents. It discusses why new parents need estate planning given risks like unexpected death. The key components of an estate plan for new parents are identified as wills, guardianship arrangements, trusts, and life insurance. Real life examples are also presented that illustrate why estate planning can benefit families with young children.
This document provides information about the foreclosure process and options homeowners can explore to prevent foreclosure. It begins with an overview of foreclosure basics and definitions. It then discusses the pre-foreclosure timeline, options to consider like loan modifications, and steps homeowners should take like developing a budget and hardship letter when working with their mortgage company on a solution. Key advice emphasized includes maintaining regular contact with the mortgage company's loss mitigation department and thoroughly preparing a workout package.
The document outlines the process that a foreclosure solutions specialist named Gary Rossignol uses to help homeowners. It involves 3 steps: 1) Analyzing the homeowner's situation through questions about finances, property details, and hardship. 2) Explaining the homeowner's options to either stay in the home through solutions like loan modifications, or vacate through options like short sales if the home is underwater. 3) Making recommendations on the best option after considering the homeowner's desires, finances, time constraints, and commitment level. It provides details on various stay and vacate options as well as strategies like negotiating with lenders, dealing with third party advocates, and completing a short sale process.
Dan Keller Mortgage Planning Concierge Meeting 2019Dan Keller
http://www.mymortgageguydan.com/apply . Every client deserves the best I have to offer and that not only involves a great mortgage experience, but additional information that will help them create wealth through the wisdom I've gathered along with the network of professionals I know.
This document provides an overview and summary of the FHA 203k loan program. It discusses that the 203k program allows borrowers to obtain financing to purchase a home and fund rehabilitation/repair costs through a single mortgage. It outlines the key aspects of the 203k Rehab and 203k Streamline loans, including eligible property types, borrowers, improvements, and rehabilitation timelines. The document is intended to educate real estate partners and customers on the benefits and options provided by the FHA 203k loans.
The Economic Crisis and Recovery - The Economy and Mortgage Markets 2010 and ...Cutler Consulting Inc.
The document summarizes the economic crisis and recovery efforts in the United States. It discusses debates around additional economic stimulus spending, the large budget deficit, and challenges facing the economy including high unemployment, weak growth, and problems in the housing market. The document concludes that mortgage lenders need to improve performance, manage risks better, and prepare for a difficult environment in 2011 with higher interest rates, increased regulation, and continued challenges in the housing sector.
Mortgage Coach Social Media/Video SlidesDan Keller
This document summarizes a webinar by Dan Keller on how to leverage video, social media, and Mortgage Coach Edge software to help make 2014 the best year ever for mortgage professionals. The webinar covers video strategies for loan originators, optimizing their 2014 social media strategy, and Dan's online success formula. Dan discusses using video for real estate agent introductions and updates, video text messages, and Mortgage Coach Edge tools like a total cost analysis and rent vs own analysis. He also provides tips for implementing video, attracting real estate agents through social media like Facebook, Twitter, and Instagram, and connecting with top agents in the area. The goal is to acquire new loans, optimize business operations, and help
The document provides information about reverse mortgages through American Pacific Mortgage. It discusses key benefits like eliminating monthly mortgage payments and providing a line of credit or supplemental income. It outlines the qualification process and payment options. Client testimonials praise the company for their professionalism, thorough explanations, and for making the process seamless.
Young Adults & Credit Unions - Partnering with mY generationJoshua Jones
Delivered at the 2008 CUNA Lending Council Conference. This presentation offers examples, suggestions, resources, and info about successful Gen Y lending practices.
The document discusses strategic defaulting, where homeowners stop paying their mortgages even though they can afford to pay. It notes that some homeowners view it as a good financial decision to save thousands each month by not paying. However, it says strategic defaults consider only finances and will prolong the real estate market downturn for years. The document also profiles Charles Eapen of the C12 Group, which helps Christian business owners excel and see their business as a mission field to influence employees, customers and the community.
Untying the Knot: Special Divorce Issue torirymer3
The document discusses issues related to divorce finances and settlements. It provides advice on evaluating divorce settlements, deciding whether to keep the marital home, eligibility for continuing health insurance coverage from a former spouse's plan, and rules for receiving social security benefits from an ex-spouse. It emphasizes the importance of working with a financial professional during the divorce process to make well-informed financial decisions and achieve long-term success.
Their inherent qualities have changed in no respect except that their prospect of appreciation in quoted price has become decidedly brighter. Their fall in price has been due to two factors, one general and the other special--first, the absorption of liquid capital and consequent rise in interest rates, occasioned by the unprecedented business activity of the country, and, second, to the unfavorable technical position of the bond
A reverse mortgage allows senior homeowners to access equity in their home without making monthly payments. It provides funds via a monthly payment, lump sum, or line of credit. The homeowner retains ownership and can live in the home until passing away. The loan is repaid upon moving out or passing of the last surviving homeowner. Qualification requires being at least 62 years old, owning the home, and having sufficient equity. Costs of 5% of the loan amount are financed into the loan balance. Counseling is required to ensure the homeowner understands the product.
This document provides tips and advice for improving one's financial situation in the new year. It discusses setting financial goals, creating a money roadmap with short and long-term goals, earning more through freelance work or a side business, reviewing life insurance needs due to major life changes, talking about money with family, and estate planning with a will. It also includes statistics about financial resolutions and savings goals.
An 8 point financial health day checklistRandyBett
The document provides an 8-point checklist for improving financial health on "Financial Health Day" by reviewing various accounts and bills. The checklist includes reviewing bank statements for unnecessary subscriptions, checking mortgage interest rates and PMI for potential refinancing opportunities, reviewing insurance policies for appropriate coverage and costs, auditing phone, cable, internet and savings accounts, obtaining credit reports to check for inaccuracies, and creating a plan to pay down debt by redirecting saved funds. The goal is to take a half day to thoroughly audit finances, optimize expenses, and improve savings and debt repayment.
Learn more about what the consumer advocate group has to offer their member. Call. Or Chat online today. We have real hands on experience where other companies dont.
Dan Keller 2019 Mortgage Planning Packet for Home BuyersDan Keller
Seattle Mortgage Professional and top 1% in America Loan Officer shares his exclusive mortgage planning educational packet that he gives to all home buyer clients. How to get a great rate, how to ensure there are no hick-uos in the buying process, how to make the best financial choice when buying a home!
Remington Senior Funding: Introduction to Reverse Mortgagesremington
An Introduction to facts about Reverse Mortgages, including the most frequently asked questions and examples of how seniors are using Reverse Mortgages to supplement their income today.
The July issue of REIA News has just been released.
In this issue:
• Demolishing the negative gearing naysayers
• Have your say on qualifications
• Debunking the 7 year itch myth
Linda & Carlos Debello
Phone: 07 3263 6085
Mobile: 0409995578
Website: http://www.ljgrealestate.com.au
中国网站: http://www.ljgrealestate.com.au/index.php?lan=ch
Here is a great document about stopping the foreclosure process in Michigan. You can also find more information at www.stopmichiganforeclosure.com it is a website with a lot of valuable information about avoiding foreclosure on your home in Michigan.
The document provides information about estate planning for new parents. It discusses why new parents need estate planning given risks like unexpected death. The key components of an estate plan for new parents are identified as wills, guardianship arrangements, trusts, and life insurance. Real life examples are also presented that illustrate why estate planning can benefit families with young children.
This document provides information about the foreclosure process and options homeowners can explore to prevent foreclosure. It begins with an overview of foreclosure basics and definitions. It then discusses the pre-foreclosure timeline, options to consider like loan modifications, and steps homeowners should take like developing a budget and hardship letter when working with their mortgage company on a solution. Key advice emphasized includes maintaining regular contact with the mortgage company's loss mitigation department and thoroughly preparing a workout package.
The document outlines the process that a foreclosure solutions specialist named Gary Rossignol uses to help homeowners. It involves 3 steps: 1) Analyzing the homeowner's situation through questions about finances, property details, and hardship. 2) Explaining the homeowner's options to either stay in the home through solutions like loan modifications, or vacate through options like short sales if the home is underwater. 3) Making recommendations on the best option after considering the homeowner's desires, finances, time constraints, and commitment level. It provides details on various stay and vacate options as well as strategies like negotiating with lenders, dealing with third party advocates, and completing a short sale process.
Dan Keller Mortgage Planning Concierge Meeting 2019Dan Keller
http://www.mymortgageguydan.com/apply . Every client deserves the best I have to offer and that not only involves a great mortgage experience, but additional information that will help them create wealth through the wisdom I've gathered along with the network of professionals I know.
This document provides an overview and summary of the FHA 203k loan program. It discusses that the 203k program allows borrowers to obtain financing to purchase a home and fund rehabilitation/repair costs through a single mortgage. It outlines the key aspects of the 203k Rehab and 203k Streamline loans, including eligible property types, borrowers, improvements, and rehabilitation timelines. The document is intended to educate real estate partners and customers on the benefits and options provided by the FHA 203k loans.
The Economic Crisis and Recovery - The Economy and Mortgage Markets 2010 and ...Cutler Consulting Inc.
The document summarizes the economic crisis and recovery efforts in the United States. It discusses debates around additional economic stimulus spending, the large budget deficit, and challenges facing the economy including high unemployment, weak growth, and problems in the housing market. The document concludes that mortgage lenders need to improve performance, manage risks better, and prepare for a difficult environment in 2011 with higher interest rates, increased regulation, and continued challenges in the housing sector.
Mortgage Coach Social Media/Video SlidesDan Keller
This document summarizes a webinar by Dan Keller on how to leverage video, social media, and Mortgage Coach Edge software to help make 2014 the best year ever for mortgage professionals. The webinar covers video strategies for loan originators, optimizing their 2014 social media strategy, and Dan's online success formula. Dan discusses using video for real estate agent introductions and updates, video text messages, and Mortgage Coach Edge tools like a total cost analysis and rent vs own analysis. He also provides tips for implementing video, attracting real estate agents through social media like Facebook, Twitter, and Instagram, and connecting with top agents in the area. The goal is to acquire new loans, optimize business operations, and help
The document provides information about reverse mortgages through American Pacific Mortgage. It discusses key benefits like eliminating monthly mortgage payments and providing a line of credit or supplemental income. It outlines the qualification process and payment options. Client testimonials praise the company for their professionalism, thorough explanations, and for making the process seamless.
Young Adults & Credit Unions - Partnering with mY generationJoshua Jones
Delivered at the 2008 CUNA Lending Council Conference. This presentation offers examples, suggestions, resources, and info about successful Gen Y lending practices.
The document discusses strategic defaulting, where homeowners stop paying their mortgages even though they can afford to pay. It notes that some homeowners view it as a good financial decision to save thousands each month by not paying. However, it says strategic defaults consider only finances and will prolong the real estate market downturn for years. The document also profiles Charles Eapen of the C12 Group, which helps Christian business owners excel and see their business as a mission field to influence employees, customers and the community.
Untying the Knot: Special Divorce Issue torirymer3
The document discusses issues related to divorce finances and settlements. It provides advice on evaluating divorce settlements, deciding whether to keep the marital home, eligibility for continuing health insurance coverage from a former spouse's plan, and rules for receiving social security benefits from an ex-spouse. It emphasizes the importance of working with a financial professional during the divorce process to make well-informed financial decisions and achieve long-term success.
Their inherent qualities have changed in no respect except that their prospect of appreciation in quoted price has become decidedly brighter. Their fall in price has been due to two factors, one general and the other special--first, the absorption of liquid capital and consequent rise in interest rates, occasioned by the unprecedented business activity of the country, and, second, to the unfavorable technical position of the bond
A reverse mortgage allows senior homeowners to access equity in their home without making monthly payments. It provides funds via a monthly payment, lump sum, or line of credit. The homeowner retains ownership and can live in the home until passing away. The loan is repaid upon moving out or passing of the last surviving homeowner. Qualification requires being at least 62 years old, owning the home, and having sufficient equity. Costs of 5% of the loan amount are financed into the loan balance. Counseling is required to ensure the homeowner understands the product.
This document provides tips and advice for improving one's financial situation in the new year. It discusses setting financial goals, creating a money roadmap with short and long-term goals, earning more through freelance work or a side business, reviewing life insurance needs due to major life changes, talking about money with family, and estate planning with a will. It also includes statistics about financial resolutions and savings goals.
An 8 point financial health day checklistRandyBett
The document provides an 8-point checklist for improving financial health on "Financial Health Day" by reviewing various accounts and bills. The checklist includes reviewing bank statements for unnecessary subscriptions, checking mortgage interest rates and PMI for potential refinancing opportunities, reviewing insurance policies for appropriate coverage and costs, auditing phone, cable, internet and savings accounts, obtaining credit reports to check for inaccuracies, and creating a plan to pay down debt by redirecting saved funds. The goal is to take a half day to thoroughly audit finances, optimize expenses, and improve savings and debt repayment.
Before starting on this assignment, make sure to carefully review .docxAASTHA76
Before starting on this assignment, make sure to carefully review the background readings. Part A requires you to make some computations, and Part B requires you to analyze some scenarios using your knowledge of the concepts. So make sure to go through the computational examples in the required readings and also thoroughly review the key concepts before starting on this assignment.
Case Assignment
Part A: Quantitative Problems
1. Suppose QuickCharge Corporation manufactures phone chargers. They sell their chargers for $20. Their fixed operating costs are $100,000 and their variable operating costs are $10 per charger. Currently they are selling 30,000 chargers per year.
A. What is QuickCharge’s EBIT (earnings before interest and taxes) at current sales of 30,000?
B. What is QuickCharge’s breakeven point?
C. Calculate the EBIT if QuickCharge’s sales increase 50% to 45,000 chargers. What is the percent of change in EBIT under this increase in sales? Also, calculate the EBIT if the company's sales decrease 50% to 15,000 chargers. What is the percent of change in EBIT under this decrease in sales?
D. What is QuickCharge’s degree of operating leverage? Based on your computation, what does its operating leverage say about QuickCharge’s business risk?
2. The StayDry Umbrella Corporation will have an EBIT of $100,000 if there is a normal amount of rain this year. But if there is a drought, they will have an EBIT of only $50,000. The interest rate on debt is 10%, and the tax rate is 35%. The company does not pay any preferred dividends.
A. If StayDry has zero debt and 50,000 outstanding shares, what will its EPS (earnings per share) be if there is normal rain? What will its EPS be if there is a drought? What is its DFL (degree of financial leverage)?
B. Now suppose StayDry has decided to take on $300,000 in debt and has used these funds to buy back half of the outstanding shares so now there are only 25,000 outstanding shares. What is the new EPS and DFL for both normal rain and drought?
C. Based on your answers to a) and b) above, what are the trade-offs management has to make between zero debt or $300,000 in debt? What are the benefits and disadvantages of taking on this debt?
Part B: Conceptual Questions
1. For each of the following scenarios, explain whether the situation describes financial risk or business risk. Explain your answers to each scenario using at least one of the references from the background readings:
A. A pharmaceutical company has developed a new cancer treatment drug that has a much higher success rate than other drugs currently in the market. It has the potential to triple the company’s profits. However, the FDA has expressed concern about some side effects, and it is not clear if the FDA will approve the drug.
B. An airline has an EBIT of $100 million per year. However, it also has a huge amount of debt and pays $97 million per year in interest. Its EBIT is relatively stable but tends to go up or down by $5 million or so each ...
This document discusses financial literacy and debt from a Christian perspective. It warns that families can be destroyed by a lack of financial knowledge and debt. It provides tips for managing credit cards responsibly, such as only charging what you can pay off monthly to avoid interest, fees, and damage to your credit score. It also cautions against refinancing credit card or other unsecured debt onto your home, as this exposes your otherwise protected home equity to creditors.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
The document provides 3 hypothetical scenarios demonstrating how independent registered investment advisors work with clients to provide tailored financial solutions. In the first scenario, an advisor helps a couple plan for their retirement and children's education after inheriting a property and stock options. In the second, an advisor assists a business owner couple with succession planning and their retirement. In the third, an advisor aids a man contemplating early retirement by helping him develop life goals and a financial plan.
This document provides information on how to prosper and thrive in retirement by addressing four important financial issues: generating sufficient retirement income, maintaining affordable health coverage, maintaining independence at advanced ages, and best leaving assets to heirs. It discusses strategies such as investing in longer-term bonds or municipal bonds to generate higher retirement income, using annuities to supplement spending and ensure payments last as long as the individual, understanding Medicare options and the importance of supplemental coverage, considering long-term care insurance, and proper estate planning to avoid taxes and ensure intended heirs receive assets.
Sgroi Financial, an independent financial planning firm, has formed a partnership with Lawley, a top 100 insurance agency, to enhance client benefits. The partnership will allow both firms to offer a wider range of financial products and services to their clients. Sgroi Financial has historically provided life and long term care insurance and sees this partnership as providing substantial benefits to their clients through Lawley's additional insurance expertise. Both firms are committed to serving their local communities in Western New York.
I am glad that our small quarterly magazine "Life-A Promise" has published on time. The extraordinary achievements of the children always motivated me. I am proud to be able to highlight the achievements of some of the children of Shillong in this issue.. Everbloom K. Nongrum, Miss Bipasha Dhar, Master Arman Sharma, Master Saruya Kanuar, Miss Debashmita Chakraborty these five little children has done extraordinary jobs in their respective field. This issue is the witness of their achievements. Our Best Wishes to these little kids. Gopinath Sir's wonderful article is like a gift to us. We must read again and again "Why Discipline savings is always ahead than financial intelligence". With your good wishes and love, I will go ahead with something new again. Thank you
I am glad that our small quarterly magazine "Life-A Promise" has published on time. The extraordinary achievements of the children always motivated me. I am proud to be able to highlight the achievements of some of the children of Shillong in this issue.. Everbloom K. Nongrum, Miss Bipasha Dhar, Master Arman Sharma, Master Saruya Kanuar, Miss Debashmita Chakraborty these five little children has done extraordinary jobs in their respective field. This issue is the witness of their achievements. Our Best Wishes to these little kids. Gopinath Sir's wonderful article is like a gift to us. We must read again and again "Why Discipline savings is always ahead than financial intelligence". With your good wishes and love, I will go ahead with something new again. Thank you all.
am glad that our small quarterly magazine "Life-A Promise" has published on time. The extraordinary achievements of the children always motivated me. I am proud to be able to highlight the achievements of some of the children of Shillong in this issue.. Everbloom K. Nongrum, Miss Bipasha Dhar, Master Arman Sharma, Master Saruya Kanuar, Miss Debashmita Chakraborty these five little children has done extraordinary jobs in their respective field. This issue is the witness of their achievements. Our Best Wishes to these little kids. Gopinath Sir's wonderful article is like a gift to us. We must read again and again "Why Discipline savings is always ahead than financial intelligence". With your good wishes and love, I will go ahead with something new again. Thank you.
The document is a newsletter from an investment advisory firm called Just Invest Online. It provides updates on the stock market and economy. It advises readers that if they are invested in good businesses through diversified equity funds, they should remain confident and hold during volatility. It also discusses how life expectancy has increased in India, meaning people need to save more for longer retirements. It profiles a woman who started a SIP in 2007 and saw her investment grow over 13 years to nearly 10 times her total contributions, demonstrating the power of long-term investing and remaining invested during downturns.
10 lessons from the financially fit millennial and gen xer (daniel grote's co...Daniel Grote, CFP®, BFA™
This document provides a summary of 10 lessons for financially fit millennials and Gen Xers. It discusses lessons like living within your means by following a 50/30/20 budget rule, not accepting credit card debt as normal, prioritizing savings like retirement accounts, understanding insurance needs, and knowing when to rent versus buy a home. It also provides tips on paying off student loans, maximizing retirement accounts like Colorado public employee plans, managing risk tolerance, and not prioritizing extra mortgage payments before other financial goals. The document is from a financial advising group promoting meeting with representatives to address specific financial questions or concerns.
The document provides 10 principles for developing a long-term financial strategy to protect a family's financial security. It recommends prioritizing protection through insurance, saving money regularly through employer plans or mutual funds, and keeping debt in check. It also suggests implementing a simple investment strategy with diversified holdings, understanding employee benefits, planning for education costs, utilizing tax-advantaged savings options, and seeking help from a financial professional. The overall goal is to develop a strategy to safeguard a family's standard of living and ability to achieve important goals.
The document provides the results of a personal IQ test, with the respondent scoring 27-30/30, indicating an "excellent" personal financial IQ. It then outlines 11 elements of personal finance, including discovering your comparative advantage, being entrepreneurial, budgeting, financing purchases appropriately, avoiding credit card debt, buying used goods, emergency savings, investing for compound interest, diversifying investments, investing in index funds, and being wary of high-risk investment schemes.
1. Jake Seraphin
12/10/2014
CRM Client Project
CLIENT BACKGROUND
Joe Seraphin, my older brother, was my client for this project. Joe turned 30 years old in
October. He’s a single, financially independent homeowner presently residing in Hamilton,
Virginia. Joe is currently a manager at an auto shop in Ashburn, Virginia. My brother’s job
demands hard work and long hours, but he receives a competitive salary. His salary, in
conjunction with minimal expenses and zero debt (outside of his mortgage), has allowed Joe to
gain a firm financial footing. Joe graduated with a bachelor’s degree in psychology from Mary
Washington University in 2006, though he’s always had a kinesthetic, technical mind with skills
and knowledge ranging anywhere from computers to electricity to mechanics. In addition, he
possesses an aptitude for finance and has actively followed the market for the past two years.
His significant accounts include an individual ROTH IRA which has been fully funded the past
seven years, along with a separate “day trading” brokerage account. He owns auto and
homeowners insurance, but does not have health insurance. My brother wanted me to
investigate concerns pertaining to the structure of his mortgage payment, as well as the return
on his investments. The following is an income statement derived from all available information
provided by the client, in order to give further background on his position for 2014.
Annual Committed and Uncommitted Expenses
Total TaxableIncome: $70,200
Adjustments: $0
Total Income: $70,200
Tax Expense: $17,657
S.S./FICA: $4,323
Fed. Income: $8,906
State Income: $4,428
Disposable Income: $52,543
Expenses from Debt, Insurance,and Savings:$27,949
Mortgage Payment: $20,052
Home Equity Payment: $1200
Auto Insurance: $528
Homeowner’s Insurance:$669
ROTH IRA contribution: $5500
Income Available for Uncommitted Expenses: $24,594
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Uncommitted Expenses: $14,368
Real Estate Tax: $4204
Cableand Cell Phone: $1560
Food: $4800
Utilities: $780
Personal Gas: $1200
Maid Service: $1824
Total Income Remaining: $10,226
*Savings Ratio: cash surplus/after-tax income – 10% < 19% < 20%
*Housing Cost Ratio: mort. payment + prop. tax + homeowners insurance/gross income –
31%>28%
Gathering Information:Financial Goals
Like many clients, my brother was at first unable to identify any tangible financial goals.
Though I had started off asking an opening question similar to “what can I do for you/help you
with”, eventually we had to talk tangible goals. At one point he literally asked me “What if I
don’t have any goals, just hopes and dreams?” That obviously was a moment with the potential
for tension. However, Joe’s tone wasn’t of melancholy but rather almost amusement as he
realized that these were necessary questions that he needed to ask himself. Perhaps his
reaction was a defensive mechanism to hide deep-rooted concerns and avoid tension, but I
didn’t think at the time to act on it. In any case, this scenario illuminated the added value of an
advisor. I was able to challenge the client’s thought process in a way a computer or the client
himself simply could not. He had plenty of objectives and desires, but no concrete plan. For
example, Joe wanted to become more knowledgeable about finance (particularly his
mortgage), and he’d like to increase his savings and reduce his taxes. In addition, he wanted to
evaluate his insurance needs as well as increase the return and diversification of his
investments. None of these ideas had a dollar value associated with them or a time frame for
implementation, but they were all worthwhile and valuable objectives. Once these ideas began
to stir in Joe’s head and he had more of a vision, I had him fill out a questionnaire listing short-
term, intermediate-term, and long-term goals. However they weren’t necessarily SMART due to
Joe’s relative uncertainty concerning his future. At some point when the client says “I don’t
know”, I feel you can’t push them any further once they’ve reached a certain vulnerability. His
short-term goals consisted of do-it-himself housing improvements (finish screen porch, repair
baseboard heaters, replace Gable covers, etc) in an attempt to raise the property value. As
stated before my brother is a very kinesthetic, do-it-yourself hands on individual. Prior to this
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assignment I failed to realize that the undertaking of these projects were seen by Joe as
investment decisions, rather than simply an excuse to play around with some power tools on a
Sunday. In the intermediate term my brother would like to rent his current home and buy a
new property, however he only ranked these items with a priority rating of 3 out of 5. In the
long-term Joe listed that he would like to retire with more than 3 million dollars. We never
discussed how he derived that number or the significance of it (to my fault), but it appeared
evident that the number was selected arbitrarily out of what he felt was appropriate. I knew
immediately that there were strategic recommendations I could make in the short-term to help
facilitate Joe’s goals on any timespan. The only obstacles were going to be Joe’s commitment
and discipline, unless a major life/world event occurred.
My client currently owns a Vanguard individual ROTH IRA which he’s made maximum
annual contributions to since 2007. Joe’s ROTH holdings are all mutual funds, including
Vanguard’s 500 Index Fund, Dividend Growth Fund, Healthcare Fund, and LifeStrategy Growth
Fund. The account value is slightly greater than $50,000, and has produced a 12% return to
date. In addition, 18 months ago Joe opened an online brokerage account through TradeKing,
with an account value of approximately $20,000. He does not actively manage his IRA, yet in
2014 my client executed 90 trades on his TradeKing account. The amount of activity makes it
difficult to calculate an exact return, but it’s clear to see between the realized and unrealized
gains/losses that the account has underperformed his IRA. The short and long term capital
gains in conjunction with transaction fees from this account are certainly contributing factors.
There’s a lot of churning in the account (primarily amongst tech and energy sectors), but
constant recurring holdings include Apple, Gilead Sciences, Google, SolarCity, and Tesla. I didn’t
feel I was going to be able to change my brother’s investment strategy or behavior. He enjoys
“day trading” and speculating the market looking for any potential inefficiencies. It was evident
that the pleasure the client experienced from this, along with the knowledge/experience he
gained, was worth a lower portfolio return. However, I knew there were still ways to deal with
the excessive capital gains and trading costs. I advised Joe that he ought to take those recurring
holdings and move them into a brokerage account within his ROTH. This would allow him to
avoid any capital gains, while also trading for free within Vanguard. This was by far the most
valued recommendation by the client. He had an “Aaaahh!” moment. As I could see the
excitement in his eyes and hear it in his voice, I had to immediately give Joe a precautionary
warning. I emphasized that this was his retirement account, and the decisions he made within it
were not to be taken lightly. This was not the platform for him to make risky short-sells or buy
on margin. The intention was to allow him to make certain strategic maneuvers, within his
ROTH IRA, based on current events and market conditions. For example, Joe could take action
when news broke of a stock split for Google or a share buyback for Apple.
As previously stated, Joe does not have health insurance. He was recently dropped from
his last provider after failing to pay the premiums. I expressed to him on many levels the
necessity of purchasing health insurance. Currently he’s not in a hurry to act, and is in the
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contemplation-preparation stage. Pain is a strong motivator. He hasn’t felt the pain associated
with being uninsured while experiencing a medical emergency. He believes he may be eligible
for a hardship exemption from the federal government, qualifying him for catastrophic
coverage. What the client doesn’t realize is that this time spent in deliberation could prove very
detrimental if something bad were to happen. Joe previously did not know what a Health
Savings Account was or how it could be used in conjunction with a High Deductable Health Plan.
I told him not only is a HDHP the best combination of cost and coverage for a young, healthy
individual, but there’s also tax advantages of a Health Savings Account. Not only would a $3500
annual contribution not count towards his adjusted gross income, but all earnings and
distributions are tax free so long as he’s under 65 years old and taking the distributions for
qualified medical expenses. The cheapest monthly premium Joe could pay for a HDHP in the
state of Virginia is $180; he can afford it. Perhaps the most attractive feature to Joe was the
similarity between HSAs and IRAs with regards to a variety of self-directed investment options. I
advised Joe that he could further reduce his tax liability if he allocated some funds from his
TradeKing account into a Health Savings Account. However, again I cautioned Joe that he
wanted to allow a cash value to accumulate before he engaged in riskier investments. To me
this recommendation killed two birds with one stone: recommend affordable (and essential)
health insurance for the client, while meeting their goals to better optimize their investments.
If you look at the income statement above, my brother is currently making a $100
principle payment on top of his monthly mortgage payment. His reasoning for doing this, he
explained, was in an attempt to have 20% of the mortgage balance paid, so that he could
forego any further mortgage insurance payments. To date, Joe has made 29 of 360 payments.
The original loan amount was $275,000, with a fixed interest rate of 3.25%. His annual
mortgage insurance cost is $780. The client was curious to know if he was currently employing
an effective strategy, or whether he should make adjustments. Joe will have to have paid
55,000 of the original loan amount to achieve 20% of the balance. The client’s housing cost
ratio is already greater than the recommended percentage. In addition his interest rate is very
favorable at 3.25% fixed. Taking these two factors into account, I advised the client to refrain
from paying the additional $100 in principle every month. As described by Professor Klock, the
return he could receive from the market for investing that money would be greater than any
cost savings associated from lowering his term and eliminating his mortgage insurance. This is
especially relevant considering that Joe doesn’t necessarily consider this house part of his long-
term future.
Gathering Information:Money Profiles, Psychology, and Personality
My brother finds himself in a position where he feels a sense of stagnation in his life and
he’s ready for a change of some sorts. He dislikes his job and would like to find other gainful
employment. He would even accept a cut in pay if it allotted him more leisure time to work on
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things like housing improvements. He’s worked hard to become financially independent, and is
very proud of the fact that he is a homeowner and has been able to fully fund his IRA. He’s
grateful for the wealth he has when put in a global perspective. However, now that he’s
accomplished these things, Joe has a sense of emptiness as he looks to discover his next major
pursuit in life. He doesn’t want to wake up one morning 10 years from now and realize that all
of his efforts have been based off of a social expectation (“The American Dream”), rather than
his own innate desires. It’s undeniable that certain influences, both internal and external, have
guided Joe towards his current state of mind. He’s a left-brained, kinesthetic socializer/director.
His financial record-keeping was quite impressive for someone with no academic background.
His joy for actively following the market and making trades (and the accompanying knowledge),
along with his high savings ratio, suggest Joe is an amasser and a hoarder. My brother depicts
scripts that money is not important, and in some instances can even be bad. Our parents, now
both retired, were successful hardworking individuals. My brother describes our mother as a
shrewd businesswoman who had a constant preoccupation with making money, though she
never gave any insight to her children. Joe admitted that he thinks our mother spends too much
and it causes himproblems. My client thinks he even spends too much, though this year he’ll
have more than $10,000 in discretionary income. Our parents divorced when Joe was 13. Our
father’s savings were partially wiped out; this according to Joe was the biggest financial
message he received from our parents. In his view, our father slaved away at U.S.
Customs/Homeland Security for 30 years, only to see some of those earnings evaporate. My
client stated the major reasoning for establishing his TradeKing account was so that he could
gain instant access in the event of a market meltdown (compared to a 30 day waiting period to
buy-back Vanguard mutual funds). Joe’s major belief about money is that a fiat money system
based on perpetual credit is unsustainable, and the national debt per capita suggests that
people are still living beyond their means. In the past Joe has entertained the idea of starting a
small business, but he has admitted that the fear of potential bankruptcy is a major deterrent.
The obviously apparent theme here is loss aversion.
Gathering Information:Behavioral Financeand Client Decision Making
My client is certainly susceptible to biases and heuristics. First and foremost is lost
aversion. Loss causes more pain than a proportionate gain causes joy. My client is no exception
to this, and is possibly particularly vulnerable due to his money scripts and history. He currently
has multiple holdings in his TradeKing account that have lost more than 25% in value, yet
they’re still in his portfolio so as to avoid realizing those losses. My brother has seen my father
experience financial loss, and he’s personally experienced it through the crisis of 2008. He’s
extremely wary of loss in the future, and has taken measures accordingly to try to protect
himself (investing himself instead of through an institution). Joe’s also a victim of the
overconfidence bias. In our discussions I was trying to understand Joe’s trading behavior. I
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asked him what he thought his strengths were that would allow him to earn above market
returns executing this high-churning strategy. He stated that he felt his intellect and his
experience were his advantages. He elaborated that of all the minds in the globe he felt he was
certainly in the upper quartile. I didn’t disagree with this statement, but I felt compelled to
remind Joe that he wasn’t competing against the whole world. He was competing against other
investors who probably had a similar, if not greater aptitude for finance. I felt really
uncomfortable saying those words, as my intention wasn’t to discourage my brother. It was an
indirect way of me telling Joe that he needed to change his investment strategy. I was hoping
he would achieve the self-realization that he doesn’t have the resources, nor the expertise to
be able to compete against investment bankers and high frequency traders operating with
computer algorithms. In conjunction with overconfidence he’s experienced the recency effect.
His investment strategy with TradeKing netted him about 15% realized gain in the last 6 months
of 2013. Naturally, he continued this day trading behavior in 2014, but with nowhere near
similar results. His overconfidence and recency biases have consumed his left-brain thought
processes governing certain aspects of logic. Similar to the endowment effect, Joe is susceptible
to the “touchy-feely” syndrome. He values stocks he’s personally picked perhaps higher than
their true worth. If you look at my previous list of his recurring holdings in his TradeKing
account, only about half of them would be considered legitimate buy and hold blue chips.
Gathering Information:Appling Communication/Interviewing Skills
Fortunately my brother and I have a very good relationship. For our first meeting I’d
dressed somewhat professionally and we were sitting across a table from each other. However
by the end of the meeting we found ourselves informally chatting in the living room, and this is
where some of the most valuable information was obtained. He’s the big brother, and he
doesn’t want to appear weak or vulnerable to his little bro (or in this case financially
inadequate). I understood this and was trying to accommodate his efforts and complement him
wherever possible in order to keep him calm/comfortable, but this made it a little difficult to
navigate certain topics. I empathized with the discomfort he must’ve felt when it was almost as
if I was judging his financial standing, and therefore in part his livelihood. This was the biggest
thing I learned about myself from the assignment. Never before had I been so sensitive and
selective in my choice of words, especially with my own blood. Money is powerful. Money is
symbolic. Being a college student whose expenses are paid for, I’ve never personally attached
much emotion to money (“there will always be enough” script). However, through my careful
and deliberate communication with my brother, I realized that I do have an appreciation for
emotions associated with money, even if they currently don’t apply to me. Discussing feelings is
never an easy topic amongst two men, let alone when one of them is trying to keep up a certain
appearance/persona. It seems quite plausible that many of Joe’s financial deficiencies stem
from the divorce of our parents. I was only 6 or 7 at the time, but at 13 it was a traumatic
experience for him. However, I never asked him directly what lessons he learned from the
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divorce. Instead at one point as we were discussing his investments and his distrust for financial
institutions, I asked Joe “So it seems like a lot of your decisions are based on having total
control of the outcome.” Joe confirmed, but I wasn’t sure if he was aware that I ultimately
wanted him to understand why he felt that way, as well as acknowledge that some things are
beyond control. Overall I think I was an effective communicator, because I was a very patient
and active listener focused on helping the client. After every time my brother was done talking,
I left a second or two pause to review everything he said before giving an appropriate response.
This wasn’t easy, as my brother often went off on tangents about his feelings on corrupt
financial institutions and world powers (likely to dodge discussing himself). In some instances I
wasn’t sure how to re-focus the client without interrupting him, so I decided to always let him
finish his thought. Perhaps there were instances where I could’ve been more direct because I
was dealing with a left-brained, fast paced individual. However, as we’ve often discussed in
class, the power of self-discovery and the client realizing their own solution is much more
valuable than an advisor presenting them recommendations. At the end of the meeting I
summarized all of the things we’d discussed and reiterated what specific issues he wanted me
to look into. After personal reflection my perception of my efforts hasn’t changed much. The
only thing I would suggest is that I was so eager to help the client, that it may have been
interpreted in some instances as if I was looking for problems rather than helping Joe
accomplish his goals.
Applying Information:Promoting Action
The most concerning part of Joe’s financial picture was that he did not have health
insurance. There are plenty of individuals in worse-off circumstances than Joe who still have
coverage. Equally troubling was that Joe didn’t initially discuss obtaining health insurance. Once
we established that it in fact should be a goal and a priority (I basically pleaded with him as his
brother), I began to gather information in order to weigh options. Joe made it known that he
was potentially going to qualify for a hardship exemption, and therefore catastrophic coverage
from the federal government. Another alternative which I related to Joe would be purchasing a
High Deductable Health Plan in conjunction with a Health Savings Account. Joe wasn’t familiar
with these mechanisms, and therefore naturally skeptical at first. Unfortunately, my inability to
clearly articulate all the intricacies of a HSA on my first try further fed this skepticism. The
biggest message I portrayed was the consequences of not purchasing any health insurance. Just
last week Professor Klock told me the story of his uninsured step-brother getting in a
horrendous auto accident, and the following stress it caused the family. I’d hoped that my
words would lead to the client undergoing emotional arousal, and then from there re-
evaluation. Unfortunately, effort and the fear of pain on my brothers part are bigger motivators
than my logical deductions. He’s still yet to make a decision. My recommendation was for Joe
to purchase a HDHP in conjunction with an HSA, because it aligned with his investment
objectives. Evaluative measures would include him viewing the performance and the cash
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balance of that account, as well as reviewing his medical expenses for the year to examine if the
policy was still relevant to his needs. If asked I’d be more than willing to help with that process.
Personal Reflection:Key PerspectivesFrom You and Your Client
As alluded to earlier, the most difficult/frustrating part of this project was trying to
disguise my messages so as not to offend or upset my brother. How do you tell someone who
you respect and look up to that they’re doing something wrong? How could I give strategic
recommendations to someone who knew just as much, if not more about some of the topics
than me? I couldn’t tell him that he’s not good enough to beat the market consistently with his
current strategy. Nor could I ask him to realize that his extreme loss aversion bias, and his
general distrust for institutions, stems from the breaking up of our family unit. I’m not
suggesting that directly making these statements is necessarily appropriate, but I’m not sure if
the client entirely received the desired messages. I was adamant about obtaining health
insurance, but that’s really because it’s a cut and dry issue. The most rewarding part of this
entire project was the “aha” moment when I gave Joe his investments recommendation. That
look of realization on the part of the client and the accompanying excitement is hard to
duplicate. Again what was so surprising was the amount of sensitivity, professionalism, and
attention to detail I gave when addressing someone whom I’ve always been nothing but frank
with. Going into the project I was confident that I would be able to solve any potential
problems put forth by the client. I feel this holds true. The client asked for advice on his
mortgage and his investments, and I delivered concise, valuable insight. In addition, I was able
to recommend health insurance in such a way that was congruent with his other goals. What
perhaps I didn’t expect was the client’s resistance with regards to health insurance (although
largely stemming from his pending hardship exemption status). I was caught off guard because
it just seemed like such a fundamental element to me. As a young professional, I think I still
have some work to do in discretely guiding the direction of a conversation, rather than simply
actively listening then providing a thought-out response. My client was very pleased with the
recommendations. He said I adequately addressed all of his concerns. Joe was most frustrated
by the fact that he hadn’t been able to acknowledge or address some of these issues on his
own. He said that the most interesting aspect of the project was how the nature of our
relationship changed during that time. He could tell that I was I was using a different style and
tone than normal, and was somewhat surprised at my emphasis on attempting to be
professional.