Tap Into Google Local
Your Personal Chamber Of Commerce
The Internet has revolutionized the way we live in countless ways. We are able to access news as it's happening, email friends and relatives all over the world, and purchase anything from cars to vacation packages with a few clicks of the mouse.
What's ironic is that we frequently neglect to use this amazing resource when it comes to finding things in our local area. That's where Google™, the world's leading search engine, comes in. Google has produced a search tool, called Google Local, which you can use to locate anything from an Italian restaurant or golf course to a dentist or CPA, all within a few miles of your home!
To access Google Local, you may go there directly (www.local.google.com) or you can click on the "Local" link at the top of the page at www.google.com. Once there, specify what you are looking for and in which location. You can even select the search radius you prefer, at increments of 1 mile, 5 miles, 15 miles, or 45 miles.
One of the many benefits of this tool is that you receive a map with the locations of your search results available for viewing. Click on a map marker, and you can obtain driving directions right away. In addition to the item's address, phone number, and map, Google also provides relevant links and color-coded online reviews when they are available. (Red reviews are negative, green are positive, and yellow is neutral.)
Google Local is available free to local businesses, as opposed to yellow pages in the phone book which are updated annually and charge a fee. Next time you are searching for a local resource, give Google Local a try. You might be surprised to learn what is in your own backyard!
Google™ is a trademark of Google Inc.
Do you have a favorite web resource that you would recommend?
Please contact me and tell me more about it!
For many people, New Year’s is a time of personal reflection both looking back on the past year and towards the new year. This is a great time to think about new ways to improve on the upcoming year both personally and professionally. However, most people who make resolutions never follow through on them. If you’re thinking about breaking a bad habit this year, or instilling a good habit, take a moment to think about what you can do to improve your chances of succeeding. If you’re looking to break a bad habit, give yourself some room for failure. Many people break their resolutions after failing a single time. Making a lifestyle change is difficult and should not be thought of as an all or nothing proposition, so if you set out and fail, don’t beat yourself up. Instead, look at what caused you to break your bad habit and learn from your mistakes. Understanding this can improve your chances of breaking that bad habit dramatically. If you’ve set a new goal that you would like to achieve, you can improve your chances of success by forming a game plan. Whether you want to get a new job or start a retirement plan, write your goal down on pen and paper. Studies show that those who write down their goals have a better chance of achieving them.
Important Dates:
January 21st – Martin Luther King Day (USA)
Thank you and have a great month!
Back to School Behind the Wheel
A Commuter's Education
You already know that your daily drive can make you aggravated, exasperated, and even potty-mouthed. But did you know it could make you smarter, too?
A USC study found that drivers who cover an average of 12,000 miles a year will, over the course of three years, spend enough time in their cars to complete two full years of college.
That could make commuting the single most important educational tool we have. Think of it as the U of YC: the University of Your Car.
You can purchase discounted new and used audio books online, and your local library branch has shelves of audio books that you can borrow for free.
Here are a few course offerings to consider:
Required courses.
Get a degree in business.
Stay informed.
Aprende un nuevo idioma.
Enroll in comedy school.
Your commute isn't getting any shorter, but at least now you can get smarter while you're getting where you need to go.
And the next time traffic is stopped dead on the freeway, look on the bright side: you can take notes.
I have an educational audio series which covers topics ranging from real estate investment strategies and an explanation of credit scoring to dispelling home equity myths. Please contact me to obtain a copy today!
The Art of Happiness Making Each Day Your Best
In The Art of Happiness*, the Dalai Lama shares this powerful insight into life:"I believe that the very purpose of our life is to seek happiness. That is clear. [Regardless of religion], we are all seeking something better in life. So I think the very motion of our life is toward happiness."But how are we to achieve this happiness that we all seek? What common factor can we rely upon, regardless of our health, wealth, appearance, family, etc? The Dalai Lama goes on to discuss how the mind can be trained for happiness, despite a lack of material wealth and success. It's that whole idea of "wanting what you have versus having what you want."Stephen Covey refers to this as "responsibility," or the ability to choose your response. Tony Robbins calls it "reframing your perspective". James Allen simply calls it "self-control." Whatever name it goes by, the principle is the same: We all have the power to think positive thoughts, and to react positively to every "negative" thing that happens in our lives.Why, then, is it so hard to do? Because like anything of any worth, it takes effort. It takes practice. It takes time. And like most skills, the sooner you begin, the sooner it gets easy. But no matter how old we are, we can all start practicing positive thinking today, and begin being happier immediately.It's very easy to get out of practice, however, so it's best to surround yourself with triggers for happiness. Music is one of the best triggers. Just think how happy we get when we hear Little Orphan Annie singing, "The Sun Will Come Out Tomorrow," or Bobby McFerrin crooning, "Don't Worry, Be Happy." We can also remind ourselves with little incantations such as "look on the bright side" when things aren't going as planned.I hope this tip brightens up your day!
Do you have any tips on this subject that you would like to share?Please call and tell me about them!
The US Postal Service has introduced the "forever" stamp. This special stamp, good for any first-class letter weighing up to one ounce, is valid forever, no matter how much postal rates increase. That means consumers can purchase these special stamps at today's rate and use them for years to come, even if postal prices double or triple. And, while there are definitely better places to invest your money in the long term, the forever stamp offers consumers protection against rate hikes and the annoyance of having to purchase one- and two-cent stamps whenever prices do increase. In 1968, first-class stamps were six cents. Since then, the price has risen 14 times, including the May 2007 increase to 41 cents. This past December, a new law was passed linking postal rates to the consumer price index, which could cause rates to increase annually. The forever stamp, an idea adopted in Europe years ago, features the Liberty Bell, which hasn't appeared on a US stamp in over 30 years.
The US government expects to collect some $2.6 trillion in tax revenue this year! That's a 6% increase over last year, and a 13% jump since 2005. With the tax season behind us, did you ever wonder how your tax contributions are spent? Well, according to the government's 2008 budget, nearly 71% of this money is already slated for mandatory programs such as Social Security, Medicare, and interest toward the national debt. The military receives about 17% of the total budget, with another 1.3% funding homeland security. The remaining discretionary revenue not only funds highways, railroads, airports, etc., it also pays for federal agencies responsible for science, space exploration, medical research, education, environment, labor, law enforcement, etc. Finally, about 0.5% is spent on foreign aid.
If the estimated numbers don’t seem to add up, that’s because the government expects to fall short of its fiscal budget by almost 8% this year, adding $200 billion or so to an almost $9 trillion national debt.
Selling your home on your own is a commendable achievement – if you can actually pull it off. But did you know that nearly 70% of For Sale By Owners end up enlisting the help of a professional? Of course, a few years ago, the real estate market was booming and obtaining a quick sale at the desired price was a much easier task. However, in today's challenging post-subprime market, buyers have more leverage and more inventory from which to choose. Beyond sheer negotiating power, a real estate agent can provide sellers with a comparative market analysis, accurate statistics which show exactly how much homes in your neighborhood are selling for. They will also have access to more serious and qualified buyers. Remember, your home is the most valuable asset you have. Having a qualified professional in your corner could make all the difference.
Optoutprescreen.com is the official Consumer Credit Reporting Industry website to accept and process requests from consumers to Opt-In or Opt-Out of firm offers of credit or insurance.
http://www.optoutprescreen.com
Should You Leverage Your Home orPay It Down Rapidly?
There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies.
Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example:If Consumer "A" buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer "A" now has $160,000 in equity.Consumer "B" buys a home for $300,000, and puts no money down. At the end of 5 years, that same home is now worth $400,000. Consumer "B" has $100,000 in equity, which is the same appreciation as Consumer "A", a net $100,000.
As you can see, your down payment has nothing to do with your rate of return. What becomes important is how you choose to manage the $60,000 you didn't use as a down payment. If you use it for frivolous activities, such as buying toys or going to Las Vegas, it would be more prudent for you to use that money as a down payment. Especially since this will enable you to obtain a lower interest rate.
However, if you were to invest the $60,000 in a vehicle that can out-earn the cost of that debt, then this could be a formula for success. This is why some lending professionals suggest putting as little down as you possibly can, maximizing your tax write-off, and investing the rest. This principle has been applied for many years in the life insurance game. The old saying goes, "Buy term and invest the rest." The key component is taking the money you would have used as a down payment and creating an asset accumulation account. This account should earn a significant enough rate of return to enable you to pay your mortgage off entirely and achieve the ultimate goal of being debt-free.
Paying Your Home Down Rapidly. There are very few times over the course of my career that I have seen a client with zero debt and no financial difficulties. Choosing to pay off all of your debt can reduce stress and help you to gain freedom of cash flow for investment opportunities. A 15-year mortgage or a bi-weekly payment strategy provides structure. It can also put you on track to have your mortgage paid off within a set timeframe. Simply put, it contains built-in discipline.
It's important, however, to understand that regardless of how rapidly you pay your home off, you're not getting any greater rate of return on your investment than if you paid it off slowly.
Conclusion. So how does one determine which scenario is best? The choice depends entirely upon the individual. Savvy consumers who are disciplined, and are comfortable taking chances from an investment perspective, would do well with the first scenario. Over the course of time, it's been proven that your rate of return over the long-haul will be far greater than the rate you'd pay for a mortgage in today's rate environment. It's important to seek the advice of a skilled investment advisor to ensure success with this strategy.
The second scenario is best for those who have a difficult time managing their money or who'll sleep easier at night knowing they have a plan in place to pay their loan off more rapidly. Be sure that your budget can handle accelerated payments. When consumers "bite off more than they can chew" with a 15-year mortgage, they frequently end up having to refinance back into a 30-year schedule.If you find this subject intriguing and would like to know more, I recommend that you read a book titled, Missed Fortune 101, by Douglas Andrew. It's an outstanding read that is very simplistic and goes into far greater detail than I can cover in this column. Douglas is a financial planner who advises safe-structured investments such as whole life policies and tax-free fixed income instruments.
Home Buyers Face Decisions that Affect Their Long-Term Financial Picture
Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.
First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here. Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames. If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate. It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!
Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.
Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.
Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.