6 Things the Rich Do To Stay Rich
.6 Things the Rich Do To Stay Rich
Jennifer Taylor Wed, December 15, 2021,
If you’re trying to make more money, studying the rich is a great place to start. Some wealthy people were born into money, while others worked their way to the top. However they got there, many have figured out how to stay rich. Learning how to make millions is one thing, but mastering the art of keeping that fortune intact is a different task. Many people get rich, only to blow through their earnings in a matter of years.
Whether you have come into money or are still figuring out how to get rich, keep reading to learn more about how the rich stay rich.
6 Things the Rich Do To Stay Rich
Jennifer Taylor Wed, December 15, 2021,
If you’re trying to make more money, studying the rich is a great place to start. Some wealthy people were born into money, while others worked their way to the top. However they got there, many have figured out how to stay rich. Learning how to make millions is one thing, but mastering the art of keeping that fortune intact is a different task. Many people get rich, only to blow through their earnings in a matter of years.
Whether you have come into money or are still figuring out how to get rich, keep reading to learn more about how the rich stay rich.
1. They Avoid Get-Rich-Quick Schemes
One common misconception is that the wealthy constantly look to get richer more quickly through engaging in activities such as picking stocks, said Laurie Samay, who previously served as a certified financial planner and client service and portfolio manager at Palisades Hudson Financial Group. “In reality, the wealthy are typically more interested in preserving their wealth,” she said.
Rather than taking a risk on volatile get-rich-quick schemes, Samay said the wealthy take a slow-and-steady approach to investing, and they focus on diversification. She recommended investing across several asset classes to gradually build wealth.
“Many academic studies have concluded that the mix of stocks and bonds in a portfolio has the greatest influence on performance — even more so than transaction costs and security selection,” Samay said. “Like the rich, your portfolio should be adequately diversified across asset classes.”
Samay said being diversified might include exposure to:
To continue reading, please go to the original article here:
https://news.yahoo.com/6-things-rich-stay-rich-212241922.html
How Will A Strengthening Dollar Affect Emerging Markets?
.How Will A Strengthening Dollar Affect Emerging Markets?
Posted by Robin Powell on December 9, 2021
The US dollar has been strengthening, and commentators are predicting that it will strengthen further. The Federal Reserve is expected to raise interest rates, and higher rates are generally seen as a boon to the greenback, because they increase its attractiveness against other currencies.
Another big factor is the long-awaited tapering of the Fed’s quantitative easing programme. So what will tapering mean for emerging stock markets? BENEDEK VÖRÖS from S&P Dow Jones Indices has been looking at what happened when then-Fed Chairman Ben Bernanke revealed plans to taper QE in 2013, and what, if anything, that tells us about the likely impact on emerging markets this time.
“The dollar is our currency, but it’s your problem.” — former U.S. Treasury Secretary John Connally
How Will A Strengthening Dollar Affect Emerging Markets?
Posted by Robin Powell on December 9, 2021
The US dollar has been strengthening, and commentators are predicting that it will strengthen further. The Federal Reserve is expected to raise interest rates, and higher rates are generally seen as a boon to the greenback, because they increase its attractiveness against other currencies.
Another big factor is the long-awaited tapering of the Fed’s quantitative easing programme. So what will tapering mean for emerging stock markets? BENEDEK VÖRÖS from S&P Dow Jones Indices has been looking at what happened when then-Fed Chairman Ben Bernanke revealed plans to taper QE in 2013, and what, if anything, that tells us about the likely impact on emerging markets this time.
“The dollar is our currency, but it’s your problem.” — former U.S. Treasury Secretary John Connally
When John Connally uttered the famous words above 50 years ago at a meeting of major finance ministers in Rome, it was just three months after the U.S. had unilaterally dismantled the post-World War II global monetary system known as Bretton Woods. The “problem” Connally referred to was a rapidly depreciating U.S. dollar, which threatened the competitiveness of exporters based in the U.S.’s main trading partners.
In the decades since, however, developing countries have faced the opposite challenge. Time and again, a bout of U.S. dollar strengthening has triggered turmoil in emerging economies that predominantly borrow abroad in foreign currencies, usually U.S. dollars. Thus, a strengthening U.S. dollar has increased emerging markets’ debt burden, depressing consumption and economic growth, and consequently leading to dismal domestic equity market returns.
The last such instance was triggered in May 2013, when then-Federal Reserve Chairman Ben Bernanke revealed plans to wind down the Fed’s gargantuan quantitative easing program, setting off a so-called “taper tantrum”: bond yields surged around the world, ex-U.S. stock prices tumbled, and a soaring greenback put severe strain on emerging market economies worldwide.
To continue reading, please go to the original article here:
https://www.evidenceinvestor.com/how-will-a-strengthening-dollar-affect-emerging-markets/
So, You Want To Be a Millionaire? 7 Ways To Set Yourself Up for Success
.So, You Want To Be a Millionaire? 7 Ways To Set Yourself Up for Success
Jordan Rosenfeld Mon, December 13, 2021,
Becoming a millionaire may seem like the zenith of success for most people, particularly if you’ve worked for minimum wage or struggled to get a raise. And while earning a million dollars today is more feasible in some ways than it was even 30 or 40 years ago, aside from luck and winning the lottery, it takes strategic planning. Experts weigh in on seven ways to set yourself to become a millionaire.
Invest a Lot, and Early
Perhaps the most tried and true method to earn a million dollars is to start investing as much of your income as you can, as early as you can, said Scott Alan Turner, a certified financial planner and consumer advocate with Rockstar Financial Planning.
So, You Want To Be a Millionaire? 7 Ways To Set Yourself Up for Success
Jordan Rosenfeld Mon, December 13, 2021,
Becoming a millionaire may seem like the zenith of success for most people, particularly if you’ve worked for minimum wage or struggled to get a raise. And while earning a million dollars today is more feasible in some ways than it was even 30 or 40 years ago, aside from luck and winning the lottery, it takes strategic planning. Experts weigh in on seven ways to set yourself to become a millionaire.
Invest a Lot, and Early
Perhaps the most tried and true method to earn a million dollars is to start investing as much of your income as you can, as early as you can, said Scott Alan Turner, a certified financial planner and consumer advocate with Rockstar Financial Planning.
“The math behind becoming a millionaire is quite simple. Step one: smartly invest around $430 a month. Step two: repeat every month for 30 months.”
If this seems like a lot of money to put away, Turner points out that most people pay this much on a car payment each month. “Cars are wealth killers,” he said. The hard part is staying disciplined, he added. “It’s really hard to get rick quick. For earlier financial independence, many people save and invest more.”
The Later You Start, the More You Need To Invest
If you’re starting later in life, the amount you have to invest each month climbs, said Daniel Demian, financial advice expert at Albert. “Starting at age 20, you should aim to invest $364 per month toward retirement to hit a million dollars in savings by age 65,” he said. By age 40 that number has to increase to $1,444. By age 50, $3,439 per month.
Consider Index Funds
Not all investments are created equal. Lattice Hudson, a leadership mentor, business coach and founder of Lattice & Co., advises that you consider index funds. “It’s a large collection of stocks meant to monitor the overall market,” he said. “This is advantageous because you are not investing all of your money in a single company; instead you begin by acquiring a small portion of a couple companies with very low fees.” These funds consistently outperform more expensive competitors, he added.
Invest In Assets That Gain Value
To continue reading, please go to the original article here:
https://news.yahoo.com/want-millionaire-7-ways-set-041353180.html
Some Common Sense Advice From Two Billionaires
.Some Common Sense Advice From Two Billionaires
Notes From The Field By Simon Black December 13, 2021
Elon Musk didn’t have a care in the world last week as he hilariously mocked questions in a live interview with the Wall Street Journal.
The Journal’s reporter had essentially prepared a number of softball questions designed for Elon to praise the US government’s new ‘Build Back Better’ bill.
If you haven’t heard, the legislation contains a number of provisions which should greatly benefit Tesla, including major subsidies to build electric vehicle charging stations across the US.
But Elon had no interest in the puff piece.
Some Common Sense Advice From Two Billionaires
Notes From The Field By Simon Black December 13, 2021
Elon Musk didn’t have a care in the world last week as he hilariously mocked questions in a live interview with the Wall Street Journal.
The Journal’s reporter had essentially prepared a number of softball questions designed for Elon to praise the US government’s new ‘Build Back Better’ bill.
If you haven’t heard, the legislation contains a number of provisions which should greatly benefit Tesla, including major subsidies to build electric vehicle charging stations across the US.
But Elon had no interest in the puff piece.
“Unnecessary,” he interjected when the reporter started to ask what he thought of the subsidies.
“Do we need support for gas stations? We don’t. So there’s no need for support for a charging network. I’d delete it. Delete.”
This left the reporter flummoxed... how could Elon possibly not be excited about “free” government money that would support his business?
But Elon’s point seemed completely lost on her.
“Seriously we shouldn’t pass it,” Elon continued, almost exasperated.
“If we don’t cut government spending, something really bad is going to happen. This is crazy. Our spending is so far in excess of revenue its insane. You could zero out all billionaires in the country... you still wouldn’t solve the deficit.”
So the reporter said, well, let’s change the subject.
Elon then sounded-off on issues like the rise of China and corresponding decline of the US. He also called declining birth rates “one of the biggest risks to civilization.”
Now, Elon Musk is a famously eccentric character.
But another more ‘traditional’ billionaire is also on board with this ethos.
Ray Dalio founded and runs the largest hedge fund in the world, Bridgewater Associates.
He has been very vocal over the past several years about the pathetic state of US government finances, and obvious shift of wealth and power away from the US.
For example, last year he published an article which asks, why in the world would you own bonds?
Dalio points out that, buying US Treasury bonds (which is tantamount to loaning money to the federal government) USED TO BE a good investment, back when America was actually creditworthy.
But now when you buy bonds, you’re loaning money to the largest debtor that has ever existed in the history of the world... and in exchange you are receiving return that is well below the rate of inflation.
Dalio points out that people still value US government bonds because of “the ‘exorbitant privilege’ the US has had being the world’s leading reserve currency, which has allowed the US to overborrow for decades.”
But there are signs of the changing global wealth and power dynamic, as international investors are starting to shift to Chinese bonds.
That’s a major theme in Dalio’s new book, Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail.
Dalio has made it his life’s work to understand debt and political cycles, in order to foresee risks that others miss, and better serve his clients.
He makes a lot of the same assertions that Elon makes; for example, Dalio explains that economies, governments, and civilizations move in cycles. And in simple terms, there are good parts of the cycle, and there are bad parts.
The good part of the cycle is characterized by peace, prosperity, and production. The bad part includes recession, depression, inflation, social conflict, and war.
If you think about US history, we can see that the 1920s were a ‘good’ part of the cycle. The 1930s and 1940s were bad— the Great Depression, World War II, etc.
Then the 1950s and early 1960s were good again. The late 1960s through the early 1980s were bad, marked by extreme social turmoil, geopolitical conflict, and stagflation.
The mid 1990s through the mid 2010s were generally quite good, especially from an economic perspective.
Now we seem to be in transition once again to a bad part of the cycle— social conflict, inflation, geopolitical tensions, and more.
Dalio’s book, which I highly recommend reading, lays out a very clear case of what is happening right now, and why.
His ideas are quite similar to much of what we have been writing about for so long here at Sovereign Man.
And Dalio has suggested some of the same solutions that we’ve discussed in these pages.
First, education is critical: it’s imperative to understand how these cycles work in order to be prepared for what’s coming.
Mindset is also key: There’s no reason to panic. The world is not coming to an end. But it IS changing. Rapidly.
Dalio writes that the transition from the good part of the cycle to the bad part are rarely smooth or peaceful. And they often coincide with a shift of wealth and power.
And the United States, while still strong, is clearly losing its wealth and power thanks to its historical debt, massive deficits, an utter embarrassment in Afghanistan, the rise of Marxism, ridiculous ‘woke’ national priorities, etc.
For these reasons, it makes sense to take rational steps to mitigate these long-term risks.
Investors frequently diversify their portfolios to reduce risk; they spread their assets around different companies, different sectors, and even different asset classes, in order to ensure that they’re not over-exposed to a single set of risks.
Similarly, our approach at Sovereign Man is to diversify your geographic/country risk as well.
Give serious thought to the long-term risks where you live. Will your home country experience social conflict, inflation, capital controls, or war?
The good news is that not all countries are going through the same part of their cycles. By taking a global view, you can avoid the worst of the economic shifts that Elon Musk and Ray Dalio are talking about... and what we’ve been writing about for years at Sovereign Man.
This could mean securing foreign citizenship or residency, to ensure you always have another place to go, just in case you ever need the option.
It could mean using alternative assets like crypto or precious metals as a hedge against inflation. Or investing internationally to reduce exposure to your home currency.
The key idea is— don’t put all of your eggs in one basket... especially when that basket is the largest debtor in world history that’s blindly racing as fast as it can into a fiscal abyss.
To your freedom, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/trends/some-common-sense-advice-from-two-billionaires-34097/
Some Possible Questions to Ask at Your Exchange : Posted by Red at TNT
.TNT:
Red: Dinar- Questions For Private Banker/Wealth Manager/Brokerage General Manager, Source Internet, authors unknown.
No suggestions being made. I post only what I am doing.
NOTICE, this conversation is being recorded for training or other use. If this is acceptable to you, please say YES.
I want to request your permission to ask a few questions as our interview progresses. Okay? Yes
Your full name. ____________________ Your best contact phone number._______________________
I am Asking about all the professional licenses you hold? Abbreviations.___________________________
I hope you do not feel these questions are too personal or suggestive. I want to make sure my best interest will be put in first place in every transaction we do together.
TNT:
Red: Dinar- Questions For Private Banker/Wealth Manager/Brokerage General Manager, Source Internet, authors unknown.
No suggestions being made. I post only what I am doing.
NOTICE, this conversation is being recorded for training or other use. If this is acceptable to you, please say YES.
I want to request your permission to ask a few questions as our interview progresses. Okay? Yes
Your full name. ____________________ Your best contact phone number._______________________
I am Asking about all the professional licenses you hold? Abbreviations.___________________________
I hope you do not feel these questions are too personal or suggestive. I want to make sure my best interest will be put in first place in every transaction we do together.
1. I want a mutual understanding we are both in this investment portfolio as a team so that we may both be richly and adequately compensated. Teamwork, Is this goal acceptable to you?
2. How long have you been employed in mega client account level banking?
3. How many clients are you currently serving?
4. How many of those are in the 60 million dollar and up segment?
5. What other services do you provide to me as a megabank investment client?
6. Are you able to give me precise custom advice on individual investments?
7. At this time, as my banker/wealth manager. Do you represent a team? How many members?
8. How often does this team meet to discuss my exclusive current investment portfolio?
9. May I ask how many years you have been married to your current spouse?
10. How many children do you have? How many with your current spouse, if applicable?
11. I understand that you are exclusively employed with this bank. Is this correct?
12. Is any part of your income derived from commissions or fees from my investment relationship?
13. Do you have a written client relationship document for me to review and hold?
14. How long have you lived in the nearby vicinity of this bank facility?
15. As my advisor, are you working solely in my interest as a fiduciary?
16. I want all my accounts to be 100% private between my fiduciary agent and myself. Will you make sure this is the case? IE No testing, training, marketing, or other staff or employees have access.
17. Thus far, do you believe you and your financial institution can strike a mutually agreeable investment relationship on my behalf?
18. Do you feel comfortable with being my leading team player?
19. I want to receive copies of all the necessary insurances you carry on my behalf, like E&O.
20. I want to review your ADV form registered with the securities and exchange commission and state security Authority. May I have copies of those for my review before entering into our investment agreement?
21. I would like to have a printout on how much the principals of this institution have invested with this institution.
22. I want to request a printout of the percentage of your investment held in this institution.
23. Now that we are ready to discuss investing my funds, the interest to be paid, and the term of this investment contract, is there anything I should have asked you to present or reveal that I have overlooked? Is there anything I need to know that we haven't covered?
24. To start the investment, I want to be included in our agreement never to have a fee, or a charge of any kind applied to my banking or investments with this institution, agreed?
Note: Not all information may apply to you and your personal situation…..Take what you like and leave the rest: Some you may want to save for your own personal records!
How to Avoid the Gift Tax
.How to Avoid the Gift Tax
Eric Reed Thu, December 9, 2021,
The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. This applies to any kind of taxable assets, including cash, securities and real estate. When the gift tax applies, it is the donor who pays, meaning that if you give a taxable gift you owe any applicable taxes. If you receive a gift, it is rare, if ever, that you owe taxes. It is exceedingly rare for someone to owe money due to the gift tax.
This tends to apply only to the wealthiest of households due to the tax’s high exclusions. This is because the purpose of the gift tax is to prevent wealthy families from avoiding the estate tax by simply gifting all their money to each new set of heirs. Here’s what you need to know.
How to Avoid the Gift Tax
Eric Reed Thu, December 9, 2021,
The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. This applies to any kind of taxable assets, including cash, securities and real estate. When the gift tax applies, it is the donor who pays, meaning that if you give a taxable gift you owe any applicable taxes. If you receive a gift, it is rare, if ever, that you owe taxes. It is exceedingly rare for someone to owe money due to the gift tax.
This tends to apply only to the wealthiest of households due to the tax’s high exclusions. This is because the purpose of the gift tax is to prevent wealthy families from avoiding the estate tax by simply gifting all their money to each new set of heirs. Here’s what you need to know.
Consider working with a financial advisor as you seek ways to transfer wealth to family members or loved ones.
What Is the Gift Tax?
Per the IRS, this is a tax levied on “[a]ny transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.” If you give something of value and get less than it is worth in return, it is considered a gift and may be taxable under this law.
Importantly, this applies if you give something of value and get a nominal amount in return. (In law this is called a “de minimis” transaction.) For example, say you want to give your children the family house. Instead of giving it outright you sell it to them for $100. You do this because ordinarily a property sale doesn’t trigger the gift tax. From a legal standpoint the parties have exchanged assets so the only relevant tax would be on any capital gains.
However, in this case the sale price had no bearing on the fair market value of the property (otherwise known as “full consideration”). As a result you would owe taxes on the difference between the house’s sale price ($100) and its fair market value. Structuring this sale specifically to avoid the gift tax would be a form of felony tax fraud.
This is a particularly common type of tax evasion among family businesses and within closely held real estate companies.
To continue reading, please go to the original article here:
15 Money Secrets That Will Change Your Life
15 Money Secrets That Will Change Your Life
Written by Connor Brown November 14, 2021
The playbook for personal finance success isn’t complicated. Spend less, save and invest more. But despite this relatively simple formula, it seems as though some people know something about money that you don’t. Today, I aim to change that. I’m sharing with you 15 money secrets that can change your financial outlook for life.
Money Secret #1: Modest Spending is the Ticket to Financial Success
If there was one hidden secret of money, it’s that managing your spending is the most important thing you can do to be financially successful.
15 Money Secrets That Will Change Your Life
Written by Connor Brown November 14, 2021
The playbook for personal finance success isn’t complicated. Spend less, save and invest more. But despite this relatively simple formula, it seems as though some people know something about money that you don’t. Today, I aim to change that. I’m sharing with you 15 money secrets that can change your financial outlook for life.
Money Secret #1: Modest Spending is the Ticket to Financial Success
If there was one hidden secret of money, it’s that managing your spending is the most important thing you can do to be financially successful.
While it’s a lot sexier to focus on investing returns and earning more money, those things are harder to do. It’s much easier to keep money in your pocket. Why? Because it’s already there. You just need to keep it there.
If you want to achieve financial success, the only way – yes, the only way – is to spend less than you earn. The MVP when it comes to managing your spending is a budget.
Two of my favorite budgeting tools to help manage your money are You Need a Budget and Tiller Money. Check them out to get your spending in check – it’s the most impactful money move you can make.
Money Secret #2: Setting Goals Works
Next, your finances aren’t different than anything else in life where you have an objective in mind. To be successful, consider setting goals.
By creating specific, actionable long-term financial goals, you’ll be more likely to make decisions in the near term that can help get you there.
Whether you plan to save for the down payment on a house or retire early, choose goals that fit your objectives. You’ll be more likely to meet those targets once you put them on paper.
Money Secret #3: The Wealthy Track Their Progress
To continue reading, please go to the original article here:
9 Secrets of Self-Made Millionaires: What You Need to Know
.9 Secrets of Self-Made Millionaires: What You Need to Know
Written by Connor Brown November 14, 2021
Approximately 12 million American households have a net worth of at least $1 million. Of these, 80%+ are self-made. It stands to reason then that those self-made millionaires know something about wealth creation. Today, I am sharing nine secrets of self-made millionaires to help you develop the financial habits you need to know to become financially successful as well.
1. Millionaires Think Differently
While many would have you believe large salaries and fancy degrees drive that millionaire status, that could not be further from the truth. No, instead, millionaire status is the result of discipline and thinking differently over decades.
9 Secrets of Self-Made Millionaires: What You Need to Know
Written by Connor Brown November 14, 2021
Approximately 12 million American households have a net worth of at least $1 million. Of these, 80%+ are self-made. It stands to reason then that those self-made millionaires know something about wealth creation. Today, I am sharing nine secrets of self-made millionaires to help you develop the financial habits you need to know to become financially successful as well.
1. Millionaires Think Differently
While many would have you believe large salaries and fancy degrees drive that millionaire status, that could not be further from the truth. No, instead, millionaire status is the result of discipline and thinking differently over decades.
Millionaires set clear visions for where they want to go, and then they put plans in place to help them get there.
When Elon Musk started Tesla, his vision wasn’t to become a billionaire many times over. No, his vision was to accelerate the world’s transition to the use of sustainable energy. Tesla has become little more than a side effect of that vision.
You, too, can set a clear vision for the things you want in your life. As it relates to money, that vision is usually about what you want money to provide. For example, you may want to experience grand vacations, or you may want to quit working for money earlier in life. These are the visions. Once you understand what you’re aiming for, you can put plans in place to get there.
2. They Set Clear Financial Goals
What’s the difference between a wish and a goal? A wish is something you want, while a goal is something with a concrete plan in place to achieve a want.
In this respect, millionaires work differently. They set actionable goals and put specific plans in place to get there. For example, the average millionaire spends six hours a week exercising. Is this because they love exercising? Probably not. But they know they must put in the work to achieve what they want (health, in this case).
You, too, can adopt this millionaire habit. With your finances, for example, it makes sense to plan far into the future. Once you do, you can take concrete actions in the near term to meet your long-term goals.
As you plan your financial goals, get clear on what you need vs. what you want and what you spend vs. what you earn. These simple steps will set you up to achieve your long-term financial vision.
3. Millionaires Track Their Spending
To continue reading, please go to the original article here:
https://afterschoolfinance.com/secrets-of-self-made-millionaires/
15 Mortgage Questions To Ask Your Lender
.15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
1. How Much House Can I Afford?
Before you can buy a house, you need a realistic idea of how much you can afford to spend on a house, as well as how big of a mortgage you can get. To do this, you should meet with mortgage lenders before real estate agents. You can get pre-qualified for a mortgage, meaning you’ll know exactly how much money you can borrow and therefore spend on a home.
By getting pre-qualified, you’ll be better prepared for the homebuying process and appear more appealing to sellers. Because this is one of the most important mortgage loan questions, make sure you ask it based on the amount of monthly payments you know you can handle. Before you go to a lender, analyze your budget and determine the amount you’re comfortable with, as well as how much money you’ll be able to put down.
A rule of thumb is to spend 25% or less of your net income on your mortgage. That means if you make $100,000 a year and you pay $20,000 in taxes, your net income is $80,000 and you should spend $20,000 on your mortgage annually. That amount works out to a monthly payment of $1,666.
2. What Kind of Loan Should I Get?
Among questions for mortgage lenders, this one is important. The two basic types of mortgages are fixed and variable rate. A fixed rate has the same interest rate for the term of the loan, which might be 15, 30 or even 40 years. With a fixed-rate mortgage, your payments remain the same for the life of the loan.
To continue reading, please go to the original article here:
15 Mortgage Questions To Ask Your Lender
.15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
1. How Much House Can I Afford?
Before you can buy a house, you need a realistic idea of how much you can afford to spend on a house, as well as how big of a mortgage you can get. To do this, you should meet with mortgage lenders before real estate agents. You can get pre-qualified for a mortgage, meaning you’ll know exactly how much money you can borrow and therefore spend on a home.
By getting pre-qualified, you’ll be better prepared for the homebuying process and appear more appealing to sellers. Because this is one of the most important mortgage loan questions, make sure you ask it based on the amount of monthly payments you know you can handle. Before you go to a lender, analyze your budget and determine the amount you’re comfortable with, as well as how much money you’ll be able to put down.
A rule of thumb is to spend 25% or less of your net income on your mortgage. That means if you make $100,000 a year and you pay $20,000 in taxes, your net income is $80,000 and you should spend $20,000 on your mortgage annually. That amount works out to a monthly payment of $1,666.
2. What Kind of Loan Should I Get?
Among questions for mortgage lenders, this one is important. The two basic types of mortgages are fixed and variable rate. A fixed rate has the same interest rate for the term of the loan, which might be 15, 30 or even 40 years. With a fixed-rate mortgage, your payments remain the same for the life of the loan.
To continue reading, please go to the original article here:
8 Rules For Saving, Borrowing And Spending Money
.8 Rules For Saving, Borrowing And Spending Money
Liz Weston of NerdWallet Sun, December 5, 2021,
The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.
The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.
8 Rules For Saving, Borrowing And Spending Money
Liz Weston of NerdWallet Sun, December 5, 2021,
The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.
The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.
1. PRIORITIZE SAVING FOR RETIREMENT
In an ideal world, you’d start saving with your first paycheck and keep going until you’re ready to retire. You also wouldn’t touch that money until retirement. Even if you can’t save 15% of your pre-tax income for retirement, as recommended by Fidelity and other financial services firms, anything you put aside can help give you a more comfortable future. Aim to take full advantage of any company match you get from a 401(k) at work — that’s free money — and borrow against or cash out retirement funds only as a last resort.
2. SAVE FOR A RAINY DAY
You may have read that you need an emergency fund equal to three to six months of expenses, but it can take years to save that much. That’s too long to put off other priorities, like saving for retirement. A starter emergency fund of $500 can be your first goal, and then you can build it up. While you’re saving, try to create other sources of emergency cash, such as a Roth IRA (you can pull out your contributions at any time without taxes or penalties), space on your credit cards or an unused home equity line of credit.
3. SAVE FOR COLLEGE
Got kids? Open a 529 college savings plan and contribute at least the minimum, which is typically $15 to $25 a month. Retirement savings comes first, but anything you can save will reduce how much your child may need to borrow. Also, research shows the simple act of saving for college increases the chances that a child from a low- to moderate-income family will go to college.
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