Posts filed under 'Spending Control'
Our Comment by J. David Lewis – It is always pretty neat to find yourself quoted in a publication like Woman’s Day. Actually, Kyrie’s mother called her yesterday to say she had seen the quote in the printed magazine. Kyrie handles much of our client services activity and follows Kate Ashford’s blog. My direct quote is below. As I read the article, I can sense that I, along with other interviewees, probably influenced it in other places.
“We’re upside down on our mortgage.”
By Kate Ashford
Posted from Woman’s Day; October 17, 2010
“When Carrie Rocha, 34, founder of PocketYourDollars.com, and her husband, Marco, 44, a graduate student, bought their two-bedroom townhouse in a Minneapolis suburb seven years ago, they had no kids. Today they have two, ages 3 and 1½, and they’d like to move to a different area—but they can’t. “We intended this to be a starter home,” says Carrie.
They’ve tried to sell twice with no luck. Now they owe more on the mortgage than the house is worth. It’s not as dire as some situations—their place is valued at $145,000 and they owe about $152,000—but after closing costs, they’d still be out more than $14,000 (if they even get full price). That’s money they don’t want to lose, so they’re staying put and hoping to sell farther down the road.
It’s not always easy to think positive when yours is among the 11.2 million homes with an upside-down mortgage. Here’s how to keep your head above water.
What to Do Immediately: Stay Where You Are If You Can Unless you absolutely need to move, there’s no need to freak out. “If you can make the payments on your current home, keep doing it,” says J. David Lewis, MBA, founder of Resource Advisory Services in Knoxville, Tennessee.”
Read all the items via Mortgage Payment Tips – Unemployment Advice at WomansDay.com.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 39633
“We’re upside down on our mortgage.”
September 28th, 2010
Our Comment by J. David Lewis – In a lot of families, this might be a touchy subject, as soon as the article implies non-married people moving in together. In our profession, there are increasingly open discussions about the financial issues that affect people who maintain households without getting married. Conference sessions are often devoted to some of the deeper topics, including the ways they differ from state to state. This item is more like something that might help young folks at the ages when they are starting careers. Nevertheless, the advice is relevant for anyone considering whether they will share resources with a partner of any kind.
”Maybe marriage isn’t in your cards right now or at least not yet, but you and your honey have decided to give it a shot and move in together. Before you pack up your closet and haul your furniture into your new place, think about these three things.”
It is an interesting short read via Finance & Budget | 3 Things Every Non-Married Couple Should Think About Before Moving In Together | Wedding Ideas & Tips.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
September 20th, 2010
Our Comment by J. David Lewis – This article reminds me of a single comment in an economics or finance course before 1980 – maybe before 1970. It was to the effect “The more often the publication is issued and the greater the fanfare, the less likely the story is to have relevance as a predictor.” The article has Time magazine cover-images from 2005 and 2010, with primary stories on housing. The 2005 version seems to promote homes as a way to build wealth, very close to the exact wrong time. The second seems to say homes are the wrong place to put your money now. The text of this WSJ.com article gives ten reasons you may want to go against the cover story on a recent Time magazine.
“Enough with the doom and gloom about homeownership.
Sure, maybe theres more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” its time to say: Enough is enough. This is what “capitulation” looks like. Everyone has given up. The Sept. 6 cover of Time magazine: This is what capitulation looks like.
After all, at the peak of the bubble five years ago, Time had a different take. “Home Sweet Home,” declared its cover then, as it celebrated the boom and asked: “Will your house make your rich?
But its not enough just to be contrarian. So here are 10 reasons why its good to buy a home.”
Contact J. David Lewis using david.lewis@resourceadv.com. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
September 16th, 2010
Our Comment by J. David Lewis – I have noticed a couple of Ron Lieber’s columns lately on dealing with personal finance while dating. I am calling attention to this one in our blog because I want to keep it where it will be easy to share with clients and others. It is very interesting.
September 3, 2010
How Debt Can Destroy a Budding Relationship
By RON LIEBER
“Nobody likes unpleasant surprises, but when Allison Brooke Eastman’s fiancé found out four months ago just how high her student loan debt was, he had a particularly strong reaction: he broke off the engagement within three days.
Ms. Eastman said she had told him early on in their relationship that she had over $100,000 of debt. But, she said, even she didn’t know what the true balance was; like a car buyer who focuses on only the monthly payment, she wrote 12 checks a year for about $1,100 each, the minimum possible. She didn’t focus on the bottom line, she said, because it was so profoundly depressing.”
Read Mr. Lieber’s wisdom via Your Money – How Debt Can Destroy a Budding Relationship – NYTimes.com.
Or, you might also like How to Be Frugal and Still Be Asked on Dates By RON LIEBER. There are ways to broadcast your financial values without coming off as a tightwad or a gold digger.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
September 7th, 2010
Our Comment by J. David Lewis – This is a fantastic article, which brings home many of the way we can say There is more to money than money.® The beginning example may seem a bit “out there,” but it sets the stage for an extraordinary discussion of the connections between happiness and money. I am fascinated with this kind of thing. It may finally shed some light on why my wife enjoys shopping for hours without actually buying more than a couple of small items. I think I will be more tolerant in the future.
But Will It Make You Happy?
New York Times
By STEPHANIE ROSENBLOOM
Published: August 7, 2010
“We’re moving from a conspicuous consumption — which is ‘buy without regard’ — to a calculated consumption,” says Marshal Cohen, an analyst at the NPD Group, the retailing research and consulting firm.
Amid weak job and housing markets, consumers are saving more and spending less than they have in decades, and industry professionals expect that trend to continue. Consumers saved 6.4 percent of their after-tax income in June, according to a new government report. Before the recession, the rate was 1 to 2 percent for many years. In June, consumer spending and personal incomes were essentially flat compared with May, suggesting that the American economy, as dependent as it is on shoppers opening their wallets and purses, isn’t likely to rebound anytime soon.
Resource Advisory Services recommends the full article via Consumers Find Ways to Spend Less and Find Happiness – NYTimes.com.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
August 10th, 2010
Our Comment by J. David Lewis – I was somewhat surprised to be asked for my contribution to this news segment. In the initial phone interview, Ms McNeal had several good questions that helped me understand that I may be able to draw on my experiences to help people. I wanted to say; “You can avoid having a shocking emotional loss absorb resources your surviving family may desperately need.” WATE did an excellent job, crafting perspectives of several people, into these two presentations, totaling about seven minutes.
By JILL MCNEAL, 6 News Anchor/Reporter
KNOXVILLE WATE – Its something no one likes to think about, let alone talk about. Death, either your own or that of someone you love.
Adding to the trauma is the hefty price tag that comes with it.
The first segment is via The hefty price of dying.
Not Breaking The Bank while Still Honoring Your Loved One (2nd Segment)
And there’s nothing wrong with saving during what can be a very expensive time, says financial planner J. David Lewis, of Resource Advisory Services.
“It may cost more than the family car is worth. And all of a sudden in a three-day period, with all of the emotion of losing someone very close to you, you’ve got to decide on how to carry out the funeral. That is excruciating,” Lewis said.
So he has this word of caution.
“Spending more money on the funeral is not going to bring that person back. It’s not going to make their memory any better. It’s not going to help them in any way,” Lewis said. “If you find yourself saying, ‘I’m buying that casket because he was such a wonderful person,’ it’s not the reason to buy that casket.”
To help make those decisions, Lewis recommends bringing along a trusted friend who’s not as emotionally involved. “Maybe a psychologist or an attorney or someone who’s well grounded.”
To make it easier on loved ones, he encourages everyone to share their final wishes with their families. “It’s just not a pleasant subject. It takes courage,” Lewis acknowledged.
The second segment is via Not breaking the bank while still honoring your loved one.
Also see Pros and cons of funeral trusts
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
July 8th, 2010
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