Coherence & Wealth Building

Posted on January 19, 2018 by TheWealthIncreaser.com

Learn how you can build wealth in a more coherent and comprehensive manner by having a more logical and consistent approach…

Ambiguous, obscure, unintelligible, confusing, distracted, mesmerized, dizzying—does any of those terms remind you of your approach toward your finances at this time as you build wealth?

As 2018 moves forward the creator of TheWealthIncreaser.com was in a relaxed state of mind, however with inclement weather across much of the country and particularly the southeast and southwest causing hardship for many—the topic of how wealth building could occur for many in a more cohesive and coherent manner came to mind as a timely topic to focus on.

In this discussion TheWealthIncreaser.com will show you ways that you can achieve wealth building success in a more coherent, logical and consistent manner. You no longer have to approach your wealth building future in an ambiguous, obscure, unintelligible or confusing manner!

The goal of this discussion is to get you to focus on your financial future in a more understandable, rational, congruent, systematic, organized and possibly the most beneficial of all to you—a more comprehensive manner.

You can achieve much more if you get away from looking at your finances in isolation or an incongruent manner!

Ok—let’s tie your understanding of your finances together in a cohesive manner so that you can achieve cohesive results.

The starting point for building significant wealth is to know where you now stand financially and personal finance statements will help you assess just where you now are financially—in a very timely manner.

By knowing where you now are financially you can plan your future in a manner that can get you better short and long term results because you will know your discretionary and disposable income and you will know if you currently have the income to reach your future goals (or new goals) that you have in mind.

You will know if you need to get more income, cut expenses or do a combination of the two—to work toward making your dreams come true.

You must know your credit position and whether you are overburdened with credit or if you are managing your credit at an acceptable or forward moving level. By knowing where you are financially you can devise payoff or pay down schedules that can put you on path to reaching many or all of your goals.

Finally, you must be able to effectively analyze and make improvements on your investment choices, your insurance choices, your tax planning, your emergency fund planning, your education planning, your estate planning and your retirement planning.

It is important that you don’t leave your wealth building future up to chance as you no longer have to approach your finances in ways that can accidentally help your movement toward your goals or accidentally hurt your movement toward your goal achievement.

It is important that you are logical and consistent in your approach as you build wealth!

You can now pursue your wealth building efforts in an intentional manner by approaching your finances from a position of “coherency” as opposed to confusion.

All the best as you pursue a coherent path toward success…

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Other articles that can help you reach your goals in a coherent manner:

Site Map Realty 1 Strategic Advisors

Site Map The Best Atlanta Real Estate Advice

Financial Ratios & Wealth Building

Posted on December 27, 2017 by TheWealthIncreaser.com

Learn how you “CAN” use financial ratios to build wealth by taking Conscious Action Now…

In this discussion TheWealthIncreaser.com will look at a myriad of financial ratios that can lead you closer to the success that you desire. With 2017 coming to an end and a new year only days away, it is the desire of TheWealthIncreaser.com that this page will serve as an inspiration for you to do more in 2018. OK, here we go–hopefully TheWealthIncreaser.com won’t bore you too much and you can use the following paragraphs to achieve more in 2018 and beyond!

Rule of 72 Ratio:

Dollar Amount Invested/ Interest Rate

1,000 / 7% = 14.3 or just over 14 years to turn $1,000 into $2,000

1,000 / 14% = 7.1 or just over 7 years to turn $1,000 into $2,000

Relevance:

The ‘Rule of 72‘ is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors (you) can get a rough estimate of how many years it will take for the initial investment to duplicate itself or double.

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If you were invested in the stock market over the past several years and you had a total stock market investment you could have possibly doubled your money in the past 5 years (1000/.20 = 5.0 or exactly 5 years), or if you had a million dollars to play with after all of your living expenses and retirement goals were set in place you could have turned that million dollars into two million dollars with virtually no effort on your part other than having the ability (and willingness) to do so–and not suffering much in case the market went the other way (and you were to suffer losses) due to you knowing your risk tolerance level up-front as well as the goals that you had in place.

Liquidity Ratio:

Liquid Assets / Total Assets

30,000 / 140,000 = .2142 or 21%

Relevance:

Lets you know what percentage of your assets are liquid (cash, certificates of deposits, money market etc versus stocks, bonds, mutual funds, home equity etc.) so that you can plan your lifestyle accordingly.

Credit Ratio:

Credit Owed / Available Credit or Credit Balance ÷ Credit Limit = Credit Ratio, for example

500/40,000 = .0125 or 1.25% very low ratio–good

30,000 / 40,000 .75 or 75% very high ratio–bad

To further drive it home, if you had a $5,000 credit limit and held a $2,000 balance, your credit ratio would look like this for one creditor:

2,000 ÷ 5,000 = .4, or 40%

If you had a $25,000 credit limit with all of your credit cards and monthly installment payments and held a $12,000 balance, your credit ratio would look like this for all of your creditors:

12,000 ÷ 25,000 = .48 or 48%

Relevance: The lower your credit ratio the better as lenders use the credit ratio to grant you more credit or provide you credit at the best rates based in large part on how you use credit and your payment history. See the chart below to determine your current risk level!

Credit Ratio Risk
< 30%   Low (ideal)
30-49%   Medium
50-75%                                              High
76% or more     Very High

The types of credit available include: Revolving Credit, Installment Loans and Open Credit.

Finance Company Accounts and Mortgage Loans will fall in the above categories, however realize that some lenders categorize them separately as well.

Debt to Income Ratio:

Total Debt / Total Income

Also called Front End Ratio

Let’s say you have $10,000 in Gross Monthly Income (your income before any taxes or other deductions are taken out – your actual paycheck will likely be much less).

What can you afford as far as your home purchase is concerned?

x / 10,000 = .28

2,800 / 10,000 = .28 which is the maximum debt you could have on the front end (excludes housing payment)

X = 2,800 max on front end

You may not be approved for a mortgage loan in which the PITI payment exceeds $800 per month if you maxed out your front end ratio of 28 percent. On the flip side, if you had zero outstanding balance you could possibly qualify for a loan up to $3,600 per month!

On the back end your maximum debt would be $3,600 calculated as follows:

x / 10,000

3,600 / 10,000 = .36 which is the maximum debt you could have on the back end (includes housing payment)

If you maxed out your credit on the front end (bills totaling $2,800 per month) you would only have $800 available for housing payment (includes principal, interest, taxes and insurance or PITI). If you had bills greater than 10 months averaging $400 per month you would qualify for a loan up to $3,200 per month.

What that means in purchasing power or how much home you can afford based on this ratio depends on the current interest rates, the local property tax rate, the amount of your down payment, mortgage insurance, and homeowners insurance. In other words, how you manage your finances and your particular market are the key factors that can lead to you purchasing the home of your dream.

The amount that you will be approved for will vary over time and across different locations as the market interest and where you are will play a factor. However, always realize that high debt on the front end will bring down the amount of house you can afford based on the conventional ratio breakdown of 28% on the front end and 36% on the back end.

To further drive it home let’s look at another example, monthly debt in excess of one year divided by gross monthly income is your debt to income ratio or front end ratio! If you earned 3,600 per month and had credit card and car payment totaling $800 your front end ratio would look like the following:

800/3,600 = .22.22 or 22% on the front end for conventional–good

1,300 / 3,600 = .36 or 36% which only leaves $500 per month available for housing payment on the back end for conventional–probably not enough for quality housing in most markets

Relevance:

The front end and back end ratios provides you the ratio that you need to determine the level of debt that you are carrying in relationship to your monthly income. You don’t want to overextend yourself with debt and make life more difficult and painful while here on earth. You must know how to manage your credit wisely and pay your debt in a timely manner.

You also don’t want to put yourself in position where you are house and/or car rich and cash poor–your life will be a bore! Use these very telling and powerful ratios to make life as enjoyable as possible for you and your family while you are here on planet earth.

Housing and Debt to Income ratio:

Also called the back end ratio

Monthly debt in excess of one year plus expected housing payment (PITI) divided by gross monthly income, for example

1,200/3,600 = .33 or 33%

To further drive it home, the back end ratio is the total debt to income ratio, which includes your housing debt AND other debt owed for at least the next 10 months or so, by you the borrower.

Back End Ratios may not exceed 36% in most cases.

Some Qualified Mortgages (FHA) may let the Back End Ratio be as high as 43%.

If you the buyer have $1,000 worth of other debt and monthly income of $4,800 (car loan, student loan, credit card, etc.), how much can you afford?

1,000 / 4,800 = 21.7%–Good on the front end ratio for conventional

2,000 / 4,800 = 41.6%–Not good on the back end for conventional but some lenders could possibly still make it happen for you

As far as FHA goes, you would qualify with both the front end ratio 31% and the back end ratio 43% because both of your ratios are lower than those percentages (21.7% and 41.6% respectively).

When your other debt is taken into consideration, you the buyer(s) can afford a home with a PITI payment of $1,000 using and FHA loan and you would not qualify for a conventional loan according to the financial ratio guidelines. However, you could possibly qualify for a conventional loan even with those ratios if a conventional lender worked with you to make it happen.

If you are like most buyers, going up to a 36% debt to income ratio is not comfortable!

A 43% back end ratio is even more difficult to handle, even for the most frugal purchaser(s).

However, a better school district and/or being closer to your job or family members may well be worth the trade off! It all depends on what you value and your ability and willingness to put into place a process that allows you to know your cash flow position up front so that you can better plan for your living conditions in the future.

Do you have an adequate emergency fund and have you planned for your future in a comprehensive way? By answering these questions you can get on a path toward making the best decision for you and your family.

If you like to eat out, entertain and save abundantly for your future you might determine that a 43% ratio is too high a price to pay at this time and you might postpone your home purchase until you could get more income coming in on a monthly basis or you paid off certain debt. Your lifestyle and plans for your future will play A LARGE PART IN DETERMINING THE BEST APPROACH TO TAKE.

The temptation may be great and you may want to go for a 43% back end ratio. What would that look like with our current example?

You still would only qualify for a loan of $1,060 (2,160/4,800) unless FHA decided to allow you to go higher or you paid off some debt or increased your monthly income.

NOTE: When you decide to purchase your home where you will seek a loan, remember that Lenders will pull your credit reports and ask for 2-3 months of your past bank statements.

If there is a sudden, large amount of money added to any of your bank accounts, or if your credit card balances or car loan are paid off just prior to applying for a loan, this sends up a red flag and some lenders will be hesitant to offer you a loan without a reasonable explanation of why you took those actions.

Lenders may ask for a gift letter, indicating that the money does not have to be paid back, and may request a larger down payment, such as 10% instead of 3.5% or 5%.

It is wise for any buyer to get their financial accounts in shape “well before” applying for a mortgage loan so that they will not be disappointed!

The critical back end ratio shows your ability to take on more debt (your new housing payment).

Mortgage lenders generally will not lend more than what would constitute 28% of a person’s monthly gross income before adding their monthly home payment to the back end.

If there is other debt, mortgage lenders will generally not originate a loan that causes a borrower’s total debt to income ratio to exceed 36% (mortgage plus other debt).

Conventional 28% front end and 36% back end, or

FHA 31% front end and 43% back end

Certain circumstances allow lenders to go higher…

Sales Price to List Price Ratio:

Sales price of a home divided by what the property listed for, for example

290,000 / 310,000 = .9355 or 94%

Relevance:

By calculating the ratio of sales price to list price of recent sales in your target market (the area where you plan on buying your home or listing your home for sale) you can get a better feel of what you should offer as purchase price, or if you are selling—the listing price:

Is it 90%? 95%? 103%?

By knowing that ratio you put yourself in position for a more realistic purchase price offer or sales price listing.

Loan to Value Ratio:

Loan amount / purchase price or refinance value

For example,

288,000 / 360,000 = .80 or 80%

You may also see CLTV or combined loan to value which simply means all of your outstanding loans (2^nd mortgage, home equity loan etc.) divided by purchase price or refinance value

Relevance:

By knowing your loan to value ratio you understand immediately how much debt you are taking on from a percentage standpoint. When you get to a certain equity position you may also be able to eliminate PMI or MIP from your monthly housing payment so it is important to know this number.

Investor Ratios

Return on Investment with Appreciation Ratio:

Cash Flow before Tax + Principal Reduction + Tax Saved + Appreciation / Cash Invested

6,000 + 3,000 + 3,500 + 5,000 / 85,000 = 20.59%

Return on Investment without Appreciation Ratio:

Cash Flow before Tax + Principal Reduction + Tax Saved / Cash Invested

6,000 +3,000 + 3,500 / 85,000 = 14.7%

The following ratios are used to Value Real Estate & the Relative Value Depends on Your Particular Market, therefore what is acceptable in one area may not be acceptable in another area, use with caution in mind.

Capitalization Rate Ratio:

Net Operating Income (from Schedule E or elsewhere) / Purchase Cost

30,000 / 390,000 = 7.7%

Limitation: does not take into account financing

Cash on Cash Ratio:

Cash Flow before Tax / Cash Invested

6,000 / 85,000 = 7.1%

Is the strongest Method, it does take into account income, expenses and financing

Price per Square Foot Ratio:

Cost / Number of Square Feet = price per square feet

300,000 / 3,000 = $100 per square feet

Limitation: does not take into account income, expenses and financing

Price per Unit Ratio:

Cost / Number of Units = price per unit

300,000 / 4 unit quadplex = $75,000 per unit

Limitation: does not take into account income, expenses and financing

Gross Multiplier Ratio:

Cost / Gross Operating Income

300,000 / 50,000 = 6%

Limitation: does not take into account expenses and financing

NOTE: the above numbers are rounded for illustrative purposes

Relevance:

For those who invest in rental property it is imperative that they understand the amount of CASH FLOW that they will receive (be sure to look at schedule E of the seller(s) tax return prior to purchase), they estimate the APPRECIATION that is expected or projected, they know the amount of PRINCIPAL REDUCTION that is expected at various intervals of the loan and they know the amount of DEPRECIATION (and how to break down the various elements of depreciation for their greatest benefit). Always remember that you cannot depreciate land on rental properties.

By properly analyzing the rental property that you plan on purchasing and utilizing the appropriate ratios you CAN get a better appreciation (no pun intended) of the returns that you will or potentially can achieve based off of your purchase.

You can then know in the future if selling your property, refinancing your property, continuing to hold your property or doing a 1031 exchange will serve your best interest. You also want to have an awareness of the tax implications at the time of purchase or preferably before you purchase so that you will have no future surprises.

Will you be taxed at ordinary income or capital gain rates? What is your basis and what will you pay taxes on after depreciation. You must understand that depreciation recapture will occur whether you take the depreciation—or you fail to do so. Will you plan to avoid taxes in the future or will you just jump into your real estate investing career with no real plan of action as it relates to your tax implications that you will face at the time of your purchase, yearly and when and if you sell in the future?

Do you know about form 3115 and how you could possibly amend your tax return to get the depreciation that you overlooked if you currently own investment property and you failed to claim the depreciation? By claiming the depreciation that you were entitled to you in essence put cash back in your pocket in a real way! These are just some of the more pressing questions that you must ask–and answer on the front end if you are to maximize your rental property purchase.

Even if you purchase and quick turn properties for short term gains, you must realize that there will be tax implications (ordinary income rates if sold in less than a year and capital gain rates if sold after a year). Whether you quick turn for a profit or buy and hold for cash flow and appreciation you must consider the combined tax implications at the federal as well as at the state level.

CONCLUSION

It is important that you use financial ratios (where and when appropriate) so that you can maximize your returns and minimize your mistakes during your lifetime. By utilizing the above ratios among others–you can put yourself and your family on a positive path toward building wealth.

Always realize that there are many other financial ratios available at the corporate as well as personal level that may also be of benefit to you and your family. In short, you don’t want to stop with what you have learned on this page. Continue to pursue better ways that can lead you toward success in a more timely manner and use financial ratios where appropriate to help along the way.

All the best to applying financial ratios in a manner that will fill up your nest…

By taking Conscious Action Now–this page and site will show you how…

You CAN achieve lasting success–if you at this time make a conscious decision to give it your best…

By using the ratios appropriately you CAN put procrastination to rest…

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Risk Tolerance & Wealth Building

Posted on December 3, 2017 by TheWealthIncreaser.com

Learn why knowing your “risk-tolerance level” can help you build your wealth more effectively and efficiently in the coming years…

As the year of 2017 comes to an end in what seemed like a very rapid pace, many visitors to this site are contemplating ways that they can reduce their risk and achieve more in the coming year(s).

For those who desire to build wealth more effectively and efficiently it is important that you have a comprehensive view of your future and it is also important that you know the risks that you face in the current marketplace and you know your “risk personality” as you move along in the future and choose from an array of investment choices.

In this discussion TheWealthIncreaser.com will show you areas of concern that you should have in mind as you build wealth. At the same time don’t let any of the risks paralyze or delay you toward getting started or continuing to move toward your wealth building goals in a way that best serves you and your family.

However, you must be aware that various risks exist—and it is appropriate that you plan in advance to help mitigate the risks or reduce the risks to an acceptable level so that you and your family can achieve more in the coming years.

Identity Theft Risk

With the Equifax breach in the spring of 2017 fresh in your mind, you now fully realize that identity theft is a real concern as over 100 million people in the United States alone was affected with identifying data of various types floating around in the hands of who knows who!

It is important that you know your current credit profile at this time so that you can make corrections and better protect your identity in the future.

You can go to annualcreditreport.com and get all three of your credit reports at once and see if they are accurate and a true reflection of your credit usage at this time as you can get the free report from each agency once per year.

After one year you can use a staggered approach and pull your credit report every four months from TransUnion, Exquifax and Experian to further keep a handle on your credit.

You can also visit innovis.com to check on your free annual credit report as well. A free report will normally be received by you through the mail in 5 to 7 days.

If after viewing your credit report(s) you believe you are a victim of identity theft you can:

1) Visit identitytheft.gov (part of the FTC or Federal Trade Commission) to determine the steps that you can take, and

2) Call the identity theft resource center at 888-400-5530 for free help

You can also take preventive measures to stop or at least slow down potential theft of your identity by signing up for services that “regularly scan” your credit reports and will alert you by text or e-mail when certain changes to your credit report occur.

Keep in mind that some services will only scan one of the three credit bureaus, however you want to choose a company that analyzes all three or at a minimum will notify the other two if certain changes occur!

You have until January 31, 2018 to enroll in Equifax TrustedID Premier product that scans all three credit bureau reports for free for one year or you can choose another company—just realize that there will normally be a monthly fee.

CreditKarma is a free service, however it utilizes TransUnion and Equifax—but not Experian and you can get account activity and a VantageScore credit score from TransUnion and Equifax if you choose to utilize this service.

Many credit card companies, banks and insurance companies also have services that monitor your credit so keep that in mind as well. However, they may not monitor your reports from all three credit reporting agencies.

In addition, you can consider a credit freeze (new creditors cannot view your reports to evaluate your eligibility (or shall I say the eligibility of those who desire to commit fraud against you) for a credit card, loan or other product such as insurance that requires a credit check and you are given a PIN number to unfreeze at time of your choosing and the freeze time frame is unlimited but is regulated by your state and a small fee is charged to freeze and unfreeze) or credit lock (bar new creditors from using your reports for as long as you are enrolled in the program).

If you are a victim of identity theft a credit freeze is normally free (police report normally needed).

In addition, “fraud alerts” could be of possible benefit to you. A “fraud alert” notifies lenders that they should take extra steps to verify your identity, however lenders are under no legal obligation to comply.

You can place a free “initial fraud alert” on your credit report even if you are not a victim of identity theft. An initial alert lasts just 90 days, so you would have to keep renewing the fraud alert.

If you are an identity theft victim you would qualify for a free extended fraud alert, which lasts seven years!

A credit freeze also prevents others from opening an SSA account online and you can unfreeze “only” your Equifax report to create an online Social Security Administration account online at www.ssa.gov/my account.

In addition to traditional lenders, landlords, utility companies, insurance companies and wireless phone companies among others may require a credit check—therefore use caution with who your provide your personal information and verify that they are who you think they are.

Market Risk

Whenever you invest in a particular sector of the economy you will face market risk. Whether, stocks, bonds, real estate, currencies etcetera, you will have to expect that there will be some risk that you will have to accept—yet you must balance that risk against your personality and your future goals.

Investment Risk

You must know that investment risk will exist whether you invest in stocks, bonds, mutual funds, oil and gas and/or other more exotic type of investments, therefore it is important that you know your investment personality so that you can create an appropriate investment strategy that will take you toward your goals.

Conservative (for example 60% cash/money market and rest in market activities)

Aggressive (for example 20% cash/money market and rest in market activities)

Moderate (for example 40% cash/money market and rest in market activities)

Middle of the road (for example 50% cash/money market and rest in market activities—TheWealthIncreaser.com terminology)

Does your investment style represent any of the above or are you unsure if you even have an investment style?

Keep in mind that in this discussion market activity refers to stocks, bonds, mutual funds, real estate including REIT’s and direct investment in rental properties or purchasing real estate to turn a profit, currencies, options, oil and gas investment and other market investments and activities.

Do you know what you take in and pay out on a monthly basis as far as your income and expenses are concerned?

Do you know how to manage your credit in the best manner possible throughout your lifetime or is it a mystery to you?

Do you have a properly funded emergency fund and have you looked at and planned for your financial future in a comprehensive manner based off of the above analysis?

By doing all of the above you put yourself in position to choose among the options available in a manner that best serves your long-term goals and at the same time you make life more enjoyable along the way.

Political Risk

Which political party best serves your interest as far as your finances are concerned? Regardless of the party in charge you must balance your future goals against the political risks that you face and know that what is in effect now to your benefit or disadvantage—does not mean that will be the case in the future as there is an ebb and flow in the political arena as it is in all areas of life.

What will affect you and your family at the local, county, state and federal level as it relates to your finances regardless of party or who is in charge and how can you best plan for what will affect you?

Regulatory Risk

How are the markets being regulated in the areas of most concern to you? Are there environmental concerns, financial market concerns, housing related concerns (and many others) and how will the regulation or lack thereof affect you and your family?

Economic Risk

Is the market rising or headed toward disaster? No one knows the exact timing of market activity that can be a great help to you and your family or can cause great hardship for you and your family, however you can plan for the uncertainty that lies ahead in the current economy by approaching your finances in an intelligent, consistent and proactive manner so that you can guard against economic uncertainty.

Social Risk

The society in which you live in will also present you with risk. Even if you are in the same country or state—risk will vary based on how the society in which you live operate as it relates to financial and other activity that you take part in on a daily basis.

Are you in a consumer driven society—or are you in a society in which saving and planning for tomorrow is not only stressed, but also acted upon by the majority of the population.

If you are in a consumer driven society you must be more disciplined and you must know that it is you who must take responsibility of your finances and not let marketing, what others are doing and other societal factors take you in the wrong direction as you move toward making life more enjoyable for you and your family.

Technological Risk

With technology advancements moving along at breakneck speed it can often lead you to wanting to buy the newest and more expensive technology products on the market.

As it relates to risk, technology has hurt as well as helped in the financial arena as time-saving on labor intensive activities have been a major success.

The signing of contracts and other documents that once took weeks using the postal system can now be done in hours.

On the other end of the spectrum, identity thieves and other unscrupulous players can now perform their activities from a distant and in many cases get away with their mischief.

Be sure you are aware of scammers, identity thieves and others whether by technological means or face to face.

At the same time be sure to use the technological advances to your benefit—keeping security in mind at all times.

Legal Risk

You must be aware of the tax code and how it will affect you and your family. In addition you must be aware of your rights as a consumer as it relates to credit and all of your financial affairs.

If you are or will be a victim of identity theft with the filing of your federal tax return the IRS may issue you an IP PIN (Identity Protection Personal Identification Number) that will in most cases protect you from the fraudulent filing of your federal taxes by identity thieves in the future.

If your social security number has been compromised or you suspect that you are a victim of tax related identity theft, there are steps that you can take including the following:

 File a report with local police

 File a complaint with the Federal Trade Commission (FTC) at www.identitytheft.gov or

the FTC Identity Theft Hotline at 1‐877‐438‐4338

 Contact one or more of the three major credit bureaus to place a fraud alert on credit records

o Equifax.com 1‐800‐525‐6285

o Experian.com 1‐888‐397‐3742

o TransUnion.com 1‐800‐680‐7289

 Close any accounts opened fraudulently

 Respond immediately to any IRS notice(s) by calling the number provided

 Complete IRS Form 14039, Identity Theft Affidavit, then mail or fax it according to the instructions

 Continue to file your return and pay your tax if needed; even if it is necessary to paper‐file returns.

Always keep in mind the fact that:

1) the IRS will never initiate contact with you by email messages to request personal or financial information

2) the IRS will never initiate contact with you by text messages to request personal or financial information

In addition, you must know your legal risks in other areas as you must know your rights to sue, arbitration clauses as opposed to your right to sue that may be found in some agreements, how to use the consumer finance protection bureau and other entities that will allow you to make legal maneuvers that can reduce the risk of loss to you and your family when you are being taken advantage of–or otherwise feel you are being dealt with unfairly!

Conclusion

There are many risks involved along the way as you build wealth. This discussion has hopefully opened up your mind to some of the risks that may be present as you build wealth.

However, you must not take to heart the risks that lie ahead and not move to action in a manner that takes you toward your wealth building goals. Your inaction at this time guarantees that nothing or little will happen as you move forward.

Be sure you take precautions against identity thieves by creating strong password for your accounts and consider using password organizers to generate and store passwords as remembering passwords can get out of hand if you have a large number of accounts and online activity.

It is important that you are aware of the risks that you will or might face in the future, however you don’t want to suffer from paralysis of analysis and not take the necessary action that will move you closer toward your future goals.

You must be aware of how you “allocate your investment activity” among the various financial sectors and markets to help reduce your risk. Or another way of looking at it is you must be properly diversified among the various sectors of the economy and in particular the markets and types of investments that you now make or will make in the coming years.

All the best as you reduce your risk and achieve lasting wealth building success…

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Home Loan Options & Wealth Building

Posted on November 27, 2017 by TheWealthIncreaser.com

Learn whether “recasting your home loan” is a better option than refinancing for you and your family…

It is important that you realize that there are many loan options available for those who desire to purchase or refinance their home. In this discussion we will look at some of those options and particularly those that can help you build wealth more effectively and efficiently in the current economy.

First and foremost it is important that you realize that there are basically two types of mortgage loans—government backed and conventional and they both require that you purchase insurance (with a few exceptions) if you put less than 20% down in order to protect their (lenders) interest in case of your default.

Government Backed versus Conventional

It is important that you understand the difference between government backed and conventional loans.

FHA, VA and USDA all fall under government backed loans and they may require that you pay MIP or a funding fee during the life of the loan or a certain time period that you have the loan. The interest rate may be slightly higher than conventional, however you would primarily benefit by having a lower out of pocket down payment. In addition, the credit score requirement is usually lower than that of conventional loans.

With conventional loans you would normally have a higher down payment, however, “homer ready” loans and possibly others offered by Fannie Mae https://www.knowyouroptions.com/buy/affordable-mortgage-options/homeready could be an affordable option for those who qualify and the loan meets their intended goals.

FANNIE MAE and FREDDIE MAC normally insure conventional loans and they are often packaged or bundled together and sold in the secondary market in ways that can provide a continuous stream of cash for lenders to make even more home loans available.

They too have an “insurance premium” that you would pay if you put less than 20% down and the premium for a conventional mortgage is known as PMI (Private Mortgage Insurance) as opposed to MIP (Mortgage Insurance Premium) and they both basically have the same function—to protect the lender from risk of loss due to your low down payment and equity position!

In the following paragraphs we will discuss:

Recasting or Re-amortizing Your Loan

Home Equity Loan/Home Equity Line of Credit

Refinance (Straight/Cash Out)

Streamline Refinance

80/10/10 to avoid PMI/MIP

Renovation Loans (FHA 203k and Fannie Mae)

Recasting or Re-amortizing Your Loan

https://www.the-best-atlanta-real-estate-advice.com/home-loan-amortization.html

A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers. It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms.

Most lenders charge a fee or at a minimum thousands of dollars to be paid toward reducing the remaining loan balance to recast your loan. Bank of America and Wells Fargo Home Mortgage charge customers $250 for a loan recast. At Wells Fargo, customers must make a lump sum payment of $5,000 or 10 percent of the remaining loan balance, whichever is greater, to qualify for a loan recast.

Keep in mind that lenders can change amounts at any time so use the above figures as a guide only as it is best to contact your particular lender.

Essentially, a loan recast means that while your interest rate and your home loan term remain unchanged, your monthly mortgage payment is reduced to reflect your actual current loan balance!

For recasting to work, lenders “require” an additional lump sum payment to reduce your balance.

In order to determine if recasting your mortgage can save you money in the long-run you will have to “run the numbers” under various scenarios that are unique to your and your family’s future goals and current financial condition.

Recasting, also called re–amortization by some, is a little-known alternative to lower your mortgage payments.

It doesn’t change your interest rate or the term of your loan, however it will reduce the amount you pay each month on your current owner occupied home that has a mortgage loan—usually from traditional lenders.

To amortize a loan usually means establishing a series of equal monthly payments that will provide the lender with:

*interest based on each month’s unpaid principal balance, and

*principal repayments that will cause the unpaid principal balance to be zero at the end of the loan

It is important that you compare recasting with other well known loan options that you may already be familiar with!

Refinancing—keep in mind that you lower your monthly payments, but you often pay hefty fees and go through a credit check.

Paying off part of the principal with a lump sum or paying additional principal on a monthly, semi-annual or other timely basis—you can normally do this easily with most lenders, however you are only shortening the length of the mortgage as the monthly payments will remain the same.

Recasting or re-amortizing—you reduce your monthly payments by paying a lump sum against your principal, but you skip the credit check and pay virtually no fees with this approach.

Other Reasons Why You May Want to Recast Your Home Loan

You’re self-employed or have poor credit, making refinancing a tough proposition.

You recently refinanced your mortgage and came across additional unexpected income but you don’t want to go through the cost and hassle again of refinancing but you would like to lower your monthly payment some.

You received an inheritance, insurance settlement or other lump-sum and believe you’re better off putting it toward your mortgage rather than investing it so that you can lower your payment and payoff the loan at a specified time in the future.

You foresee trouble down the road — say, a downturn in your industry — and want to lower your monthly mortgage payments now to prepare for that—or you have sporadic income and would like to lower your payment to hedge against a possible reduction in your income or your household income.

You usually invest spare cash in the stock market, but the outlook is so bleak you might as well reduce your mortgage. This is especially true if you also have a high mortgage and can’t refinance.

*You close on your new home and sell your current home at a later date and you want to use some or all of the proceeds to pay down your mortgage to reduce the monthly mortgage payment and balance but not the term of the loan.

Conclusion

Because the fees are so small, you don’t have to figure out a breakeven point as you do with a refinance.

However, if you have less than $5,000 in cash available for recasting your mortgage loan, it will be difficult to get your lender to agree to it, and it will only make a minimal difference anyway if the amount is that low.

Besides, it is not wise to deplete your emergency fund and not have cash readily available for life’s “unexpected” happenings.

When recasting may not be a good choice

*If you pay a high rate on your loan and you have good credit, a refinance may be worth the cost, especially if you have a legitimate need for a cash-out refinance.

If you have a lump sum and a mortgage at a low rate, you’re better off investing your money elsewhere where you can get a better return. The S&P 500, NASDAQ and other financial markets consistently appreciate at a higher level (over 10% in many years) than the benefit you might get by recasting your mortgage. Investing in the market, REIT’s and other investment options in many cases could earn you more than paying down your mortgage to get a lower monthly payment.

Even though you know there’s no guarantee with the stock market, REIT’s or other investment choices—it still might be a better option for you depending on your risk tolerance level and other factors.

If banks loosen up and grant new mortgages to riskier prospects that could also sway the choice of recasting–and make refinancing a better choice if you have weak credit at this time.

If you pay a high rate and have good credit, a refinance may be worth the cost, especially if you have a legitimate need for a cash-out refinance, such as remodeling your home, paying for tuition or other options (i.e. carrying more interest so that you could better utilize that interest for tax purposes) that would make refinancing a better choice than recasting your loan.

To reiterate how recasting works:

You must first determine that recasting your mortgage is the best choice or at a minimum a good choice and then you must get your bank to agree to a recasting, and you must then:

Pay the lender a one-time fee in the neighborhood of $250 or more.

Pay a lump sum toward your mortgage, typically $5,000 or more.

Ask your lender to amortize the remaining balance and change your monthly payments, as opposed to just reducing the principal.

Quick Example:

You have a remaining principal on mortgage of $400,000 and you put $40,000 toward recasting your loan bringing the remaining principal down to $360,000.

*20 years left on mortgage

*6% interest rate

$2,866 monthly payment on $400,000 loan

After recasting your mortgage you would still have 20 years left on your mortgage and your interest rate would still be 6%, however your remaining balance would drop to $360,000 and your monthly payment would drop to $2,580

Monthly reduction: $286

Monthly Reduction * 240 (20 years) = $286 * 240 = $68,640

$68,640 (savings over 20 year period) minus $40,000 (the initial lump sum payment) = $28,640 in additional savings over the life of your loan, or another way of analysis is you paid $40,000 to save $28,640 over a 20 year period by lowering your monthly payment by $286 for the remaining 240 payments.

How long will it take for the bank or mortgage company to complete a Mortgage Loan Recast?

A recasting is technically a lot simpler than a refinance in how it works and the ease in which it is created, however, in actuality it can take longer than a refinance because you need the approval of the owner of the loan, which in many cases may not be the bank that services it!

Many banks may take several months to process the request and then several months to implement the new payment.

Therefore, if you are considering recasting your loan–ask the bank upfront about the fees, the minimum amount required to recast the loan and the processing time from the day you start up until the time that you will make the new lower payment if the loan recast is agreed to by the owner of the loan.

Always realize that banks aren’t obligated to recast or re-amortize your loan and they actually have little incentive, given the low fees they get from the strategy.

However, if you are one who can benefit or feel you can benefit after proper analysis, and you have the gumption to ask and further inquire—and you have done your homework and know that you can truly benefit—many banks will let you recast your loan as long as you ask—however don’t expect the bank to advertise the loan in the same way it might advertise a refinance because they will only earn crumbs, whereas with a refinance or new mortgage they can get a whole slice of bread!

Be sure to use the mortgage recast calculator below to see if recasting is a feasible or worthwhile option for you at this time—keeping the above discussion in mind as a starting point to see if you can benefit.

Mortgage recast calculator:

https://www.free-online-calculator-use.com/mortgage-recast-calculator.html

Recasting vs. shortening your mortgage

You really have to know your plan for your mortgage and run the numbers to figure out the best option for you. Do you plan on moving in the near future? Is a job transfer looming down the road? Will your kids be graduating from high school and you plan on downsizing?

If you plan on consistently over-paying your mortgage, then recasting usually will not provide much of a benefit. However, if you plan on just making a big payment once, and would prefer to reduce your monthly mortgage expenses instead of shortening the overall timeframe, then re-amortization might be something that you would seriously want to consider.

Reducing the time length of your mortgage loan can have bigger costs up front as you’re putting more money in now, but your pay off will be on the huge decrease in your monthly expenses when it’s finished (early payoff of mortgage).

You will also have saved possibly tens of thousands of dollars in interest payments and depending on your goals you may or may not have a need to carry interest depending on your tax, family situation and other factors that are unique to you.

Only you and your family (and possibly your financial advisor) have all the information needed to run the numbers properly and decide which option will put you ahead and better serve your long-term goals during your lifetime.

While many homeowners are familiar with the option of refinancing their mortgage, not all homeowners understand loan recasting. This may be because not all lenders offer recasting or re-amortizing, and not all borrowers are eligible.

However, the process could save you money in two potentially big ways by reducing your monthly mortgage payment and by allowing you to avoid the cost to refinance.

Essentially, a loan recast means that while your interest rate and your loan term remain unchanged, your monthly mortgage payment is reduced to reflect your actual current loan balance. For example, if you’re 10 years into a 30-year mortgage, once you recast your loan, you will still have 20 years remaining to pay it off.

For recasting to work, lenders require an additional lump sum payment to reduce your balance. The size of that additional payment impacts how much you can save with a loan recast. However, instead of recasting, you could pay a lump sum toward your existing loan, which would decrease your balance, but not reduce your monthly mortgage payment.

Loan recasting can make sense if you inherit money (or receive a significant bonus at work) and wish to apply it to the balance on your mortgage. Because you reduce the balance ahead of schedule, you ultimately will pay less interest and the key benefit of a lower payment will be achieved.

Individual lenders have different requirements for loan recasting. For example, some lenders require a lump sum payment of $5,000 or 10% of the loan – whichever is greater – to reduce the balance before they would qualify you for loan recasting.

However, keep in mind that while saving possibly several hundred dollars per month on your mortgage payment may seem great, you will also have spent a significant amount of money to achieve that reduction in payment!

Always remember that even though lenders do charge a small fee for loan recasting, it is often as low as $250 and they really don’t make a lot by recasting–therefore you will rarely if ever see loan recasting advertised.

Does Your Current Home Loan Qualify?

Loan recasts are allowed on conventional, conforming Fannie Mae and Freddie Mac loans, but not on FHA mortgage loans or VA loans. Some lenders recast jumbo loans, but consider them on a case-by-case basis.

In order to qualify for a loan recast, you must be current on your loan payments, and have the cash necessary to pay down your principal balance.

A credit check and an appraisal are not necessary!

Why Should You Recast Your Home Loan

Some of the advantages of a loan recast include:

Reduced Payment. By recasting your loan, you can ease your cash flow without the expense of a home refinance, which can require an expenditure of as much as 6% of your loan balance. In fact, in some cases, what would be spent on the refinance could be used to reduce your balance enough to qualify for a loan recast.

No Appraisal Required. Unlike a home refinance, a loan recast does not require an appraisal. If your home has dropped in value, you may not be eligible for a refinance, since most lenders only refinance a home with at least 5% to 10% in equity.

No Credit Check Needed. Loan recasts generally do not require credit approval. If you have credit issues and cannot qualify for a refinance, you may still qualify for a loan recast.

A few homeowners that the creator of TheWealthIncreaser.com has worked with have deliberately use the loan recast strategy for paying down the principal on their new home after selling their existing home.

Just remember that you typically need to wait 90 days after your loan goes to settlement before you can recast it in most states.

Why You Should Not Recast Your Home Loan

Before you decide to recast your loan, you would be wise to evaluate it in the context of your entire financial plan–or in a comprehensive manner.

Some of the disadvantages of loan recasting include:

Ties Up Your Cash. If you have a lump sum of cash, make sure that paying down your mortgage is the absolute best use of that money. If you have high-interest credit card debt, you should more than likely pay that off first.

If you lack an emergency fund or you need to set aside money for other expenses such as a new car, educational or other household purposes, it’s probably best that you not put your entire windfall or a large portion toward paying down your mortgage.

Doesn’t Reduce Your Mortgage Term. You should also consider loan recasting in the context of your retirement. Many older homeowners hope to pay off their mortgage before they retire. However, a loan recast will not shorten your loan term, although it could improve your cash flow.

If your goal is to reduce your mortgage balance, switching to biweekly mortgage payments or simply making regular extra payments to your principal may be a better option than a loan recast.

Doesn’t Reduce Your Interest Rate. If you are paying a high interest rate, a refinance may be a better option. A lender can compare the costs and monthly payments on a refinance and a loan recast to determine which is the best fit for you. Be sure you know your credit standing and make improvements if needed to open up more options for your loan choice.

Conclusion

Keep in mind that mortgage loan recasting isn’t for everyone, but if you have extra cash along with a properly funded emergency fund, consult your lender and use what you have learned on this page to see if this method of reducing your monthly payment is right for you.

If you are a homeowner considering selling your current home and moving into another in the future but have yet to sell your current home, you could very well benefit from a loan recast.

Furthermore, if your home value has gone down or you currently have credit challenges, you may also benefit more from a loan recast as opposed to refinancing your loan.

However, prior to actually inquiring about a mortgage loan recast be sure that you have mastery of your credit at this time as you may be able to get your credit in a respectable range where options other than recasting your mortgage will be more beneficial.

Home Equity Loan or HELOC (Home Equity Line of Credit)

A home equity loan or home equity line of credit may be a more appropriate choice for you if you have decent to excellent credit and you have run the numbers based on current market conditions (the current home mortgage rates) and you have determined that a refinance or HEL/HELOC will save you money or will otherwise be more beneficial.

https://www.the-best-atlanta-real-estate-advice.com/home-equity-loans.html

Refinance

Straight Refinance

A home refinance typically falls into one of two categories: straight or cash-out.

In a straight refinance, you come out of the process owing the same amount as before, but the terms of the loan are different.

Refinancing is basically just replacing one loan (or set of loans) with another loan (or set of loans), normally on terms more advantageous to the borrower.

When you straight refinance your mortgage, you’re taking out a brand-new mortgage on your home and using the money to pay off the existing loan but with better terms (usually a shorter duration and/or a better interest rate).

Cash-Out Refinance

In most cases, most people do a straight refinance in order to get a better interest rate, which could possibly save them tens of thousands of dollars in future payments.

In a cash-out refinance, you come out owing more than before (your loan balance increases), because you convert some of your home equity to cash during the refinance.

For example, say you owe $300,000 on a house worth $400,000, which means you have $100,000 in equity. In a cash-out refinance, you might take out a new loan for $350,000, of which $300,000 goes to pay off the original mortgage and $50,000 becomes cash in your pocket.

That cash really isn’t free money though. It came out of your home equity, which falls by $50,000 from $100,000 to $50,000. However, you now have $50,000 in your pocket to do as you please and the tax ramifications are very favorable to you–normally $0.

How much will I save if I refinance?

The savings available from a straight refinance depend on how much you can lower your interest rate and how much time remains on your original mortgage.

Say you originally took out a 30-year mortgage for $300,000 at 6 percent interest. Your monthly mortgage payment will be about $1,799. After five years, you’ll still owe about $280,000, and over the remaining 25 years, you’ll pay about $260,000 in interest on top of that remaining principal.

Now say you did a straight refinance for the current $300,000 balance, but this time at 4.5 percent interest, and you do it over 25 years, to match the remaining term of your current mortgage. Your new monthly payment will be about $1,667 a savings of about $122 a month.

Over the next 25 years, your total interest payments will decrease and you will have savings of more than $35,000.

What a difference 1.5 percentage points can make over time.

Why Should I Choose Refinancing Over Other Options?

Advantages of refinancing:

Though the interest savings is reason enough to do a straight “refinance,” you can find other compelling reasons to get rid of your old home debt for a fresh new home loan. You might have an adjustable-rate mortgage, which has payments that rise and fall, and want the security of a fixed-rate loan or you may want to eliminate PMI or MIP.

If you have more than one mortgage or a home-equity loan on top of your original loan, a straight refinance allows you to consolidate that home loan into a single loan.

You may even do a straight refinance to address household issues, to add (or remove) a new spouse or partner to the mortgage loan or use your creativity and unique position at this time to find even more reasons to justify a straight refinance–in addition to the savings in interest.

Streamline Refinance

Streamline refinancing is an option for borrowers who want to take advantage of low interest rates, get out of an adjustable rate mortgage (ARM) or graduated payment mortgage (GPM). Both the FHA and VA offer streamline refinancing for home mortgages.

This program is different than the FHA and VA streamline refinance programs, where neither an appraisal nor income documentation is required.

A conventional refinance is any refinance loan that conforms to guidelines set by Fannie Mae or Freddie Mac.

This type of refinance is available with as little as 3% equity with the 97% conventional refinance program.

For a conventional refinance the lender requires an appraisal and documentation regarding the borrower’s income and assets.

The FHA streamline refinance program helps current FHA homeowners lower their rate and payment without most of the traditional refinance documentation.

It is a fast and cost-effective way to refinance that comes with lenient documentation and credit standards.

In 2017, the FHA streamline could become an even better value. FHA could lower its mortgage insurance premiums by 0.25% this year after HUD administrators review FHA’s financial stability. Even without that reduction, though, the FHA streamline is still an incredible “deal.” Many borrowers can drop their interest rate and their monthly mortgage insurance thanks to a previous MIP cut in 2015.

To further entice FHA mortgage holders, FHA offers upfront mortgage insurance premium (upfront MIP) refunds. A portion of the premium paid when the original FHA loan closed will be applied to the upfront MIP on the new FHA loan.

80/10/10 to Avoid PMI or MIP

There are many loan choices available and many have PMI or MIP if you put less s than 20% down. An 80/10/10 loan means that you would be obtaining one loan for 80% of the home purchase price, a 10% down payment from your funds and a 10% second mortgage from the same–or a different lender.

By structuring your loan in the above manner you could avoid the monthly payment of PMI or MIP that could be several thousand dollars depending on the purchase price and the structuring of your loan. An 80/10/10 loan is a proven way that many consumers have avoided this annoying premium for years. However, not all lenders will structure a loan in this manner so you may have to shop around until you find a lender(s) that will agree to structuring a loan in this or a similar manner.

203k or Fannie Mae Rehab Loan or Refinance

https://www.realty-1-strategic-advisors.com/renovation-loans.html

Should I put money down that I have now and do renovations or should I seek a loan and do the needed repairs?

Whether you currently own a home that is in need of rehab or you have plans to purchase a home in the future that may need to be rehabbed for your personal home you can use renovation loans to do so. FHA 203k rehab loans can in many cases be streamline financed into a regular FHA loan if certain conditions are met.

Other

There are many other loan options available such as seller financing, combining multiple loans to avoid PMI such as an 80/10/10 loan and many other creative options in addition to those mentioned above.

Conclusion

The key point to remember when selecting a home loan (or any loan) is to select the loan that works best for you and your family at the time of selection and throughout the period that you will (or at least intend on carrying the loan) have the loan. A pre-qualification or pre-approval on the front end is usually a wise choice as well when you are considering the purchase of a new home. Always begin your loan selection with the end in mind.

You must remember that there are many loans available and the creativity of loans are limited only by the imagination of the lender (and what they or their company will accept), the buyer and the seller.

What you have learned in this discussion is what can get your mind jumpstarted on just what is available to get you to search out or create a loan type that works best for you and your family whether you are seeking a conventional loan, a government backed loan, an owner financed loan or any creative type loan that you may pursue.

In addition, realize that hard money loans, lease purchase and lease with the option to purchase is yet another way to possibly purchase your home and they both have added benefits and drawbacks depending on your current financial position.

Also realize that the best approach, generally speaking is to gain mastery of your credit, save for a down payment (and emergency fund) and address all of your future goals in a comprehensive manner “prior to” purchasing your home or refinancing your home loan.

It is the hope of TheWealthIncreaser.com that this page has started you on a path to purchasing or refinancing your home in a manner that serves the greater interest of you and your family—and not that of lenders and others who have no real concern for your future wellbeing.

All the best to your selection of the best home loan option that will lead to your success…

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Viewpoints & Wealth Building

Posted on November 4, 2017 by TheWealthIncreaser.com

Learn why “changing your viewing angle” and changing what you “focus on” can change the course and direction of your life…

Did you know that your viewpoint of how you look at and focus on things and events in your life affects your future outcomes (and future generations) in ways you never imagined?

Have you ever noticed that with some people the more they get or have—the more they complain? It is often because they don’t count their blessings or appreciate what they now have! In addition it is often caused by “their view of their situation” and not looking at the big—or overall picture.

Even those who lack in what they feel they should have often fall victim to looking at their present and future in the wrong manner or from the wrong point of view. They will often “focus on” things that they really don’t need anyway and not on what is important and significant as far as making their life more enjoyable while here on planet earth.

In this discussion TheWealthIncreaser.com will discuss ways that you can get more out of life and improve your finances at the same time by looking at your future from a different or better viewpoint!

It is important that you know what you can be in your future.

If you change what you pursue and see the change that you desire in clearer terms you can get the change that you desire!

You can choose to focus on your shortcomings or count the blessings that you now have and pursue even more by viewing your current situation from the vantage point of success—as opposed to shortcomings or not achieving what you desire!

It is imperative at this time that you focus on success and you make the decision to give it your best.

You can improve your finances if you realize at this time that it is not what you have, but what you appreciate and do with what you have!

Also realize that happiness and joy resides inside of you and it happens when you focus on what you now have and you make the decision at this time to give it your best and pursue your life purpose.

By looking at your feelings on a daily basis as being excellent, fantastic and great as opposed to ok, so-so and good—you immediately change your focus on a daily basis.

However, as it relates to wealth building you must also have a viewpoint of your future that has clarity as opposed to confusion. You must know the “steps that you can take” to bring more clarity and success into your life so that you can see your future with the clear financial focus that you need and deserve.

What is your perspective of your future? Do you see problems in the horizon or do you see success and solutions that you can not only take—but are willing to take?

Focus on what you have (mentally, physically and spiritually) and you will receive more if you put in the effort!

What you focus on will grow—focus on the positive to achieve results that will show! It is important that you realize that change occurs when you focus more on appreciating what you now have and then making a serious commitment to achieve more.

You must be thankful for what has happened in your past because it is now the starting point (or continuation point) of what you can achieve from this point forward.

You can choose to see your current and future financial condition as positive and prepared (the success that you see is a done deal) or you can choose to see your situation as negative and distracted (why me).

You must realize that setbacks in life will occur, however you don’t have to stay there. Learn to appreciate what you now possess on a daily basis. And always realize that gratitude or being thankful for what you now have or possess is the gateway to you achieving more throughout your lifetime.

Furthermore, you must realize that whatever you are doing for God’s glory—you are taking steps to connect to your life purpose or what you were put on earth to do.

As far as the steps that you need to take to view your financial future in more positive and clear terms are concerned—it is imperative that you see clearly how you can:

1) Determine your level of financial stability

2) Determine your level of credit knowledge and management ability

3) Determine if you know all areas of your personal finances that you must address

Determine Your Level of Financial Stability

If you now lack the income to do what you desire in your life or reach the goals that serve your best interest—you must know that.

It is your responsibility to know where you are financially!

If you now have the income to do what you desire in your life and reach the goals that serve your best interest—you must know that as well!

Just what will put you in position to know just that?

A properly constructed cash flow statement or budget is the starting point for you getting to know your level of financial stability. You must know if you have positive income or a positive cash flow (disposable and discretionary income) on a monthly basis so that you will know if you need to get more income (supplemental income) or reshape or re-organize your lifestyle (cut your monthly expenses) or do a combination of the two.

Determine Your Level of Credit Knowledge and Management Ability

Do you know the factors that affect your credit? Do you have credit score and credit management habits that will get you a good rate or the best interest rate on various products or services throughout your lifetime? It is imperative that you know at this time whether you have an effective understanding and application of credit and how you can best utilize credit in your life.

Once you gain an effective understanding and application of credit you will be well ahead of most and you will position yourself and your family for a lifetime of success.

Depending on your current credit circumstances and your willingness to put in the required work—you can gain the management ability to maintain or improve your credit to the level that you desire throughout your lifetime.

Determine if You Know All Areas of Your Personal Finances that You Must Address

It is imperative that you know that you must address your personal finances in a comprehensive manner.

You can choose to do like many who address their finances in isolation and have no real clue of how their total finances all interconnect.

You can also choose a less burdensome path by knowing all areas of your finances that you must address and then addressing those areas based on your unique circumstances and the outcomes that you desire (your short, intermediate and log-term goals) for yourself and your family.

Conclusion

Whether you look at your future as being bleak or optimistic you must realize that your particular view will play a major role in you attaining what you need to attain to make life more meaningful (and beneficial) for you and your family.

You must understand that by knowing your level of financial stability you put yourself in position to make better decisions and gain a better view of your future. You will know in more definite terms if you need supplemental income (part-time job, uber, lyft etc.), need to cut expenses or properly establish an emergency fund!

In addition, by taking inventory of how you manage your credit and determining if you can make improvements you can set yourself up for effective and efficient credit management throughout your lifetime.

Furthermore, by knowing all areas of your finances that you need to address you put your mind at ease—and greatly reduce the stress in your life. You will see your future in a clearer and more focused manner and in a manner where success is given a higher probability of happening.

In a nutshell, you will be looking at your future in a more intelligent, consistent and proactive manner and in a manner where you will know what you can and can’t do throughout your lifetime.

You will know your insurance needs, your investment planning goals, your tax planning goals, your emergency planning goals, your education planning goals, your estate planning/wills goals and your retirement planning goals and the paths that you can take to achieve those goals.

You will see your current and future lifestyle from a “point of view” of knowing whether you will have the income on a monthly, annual and long-term basis to support the lifestyle that “you see” for yourself and your family.

All the Best from your new Viewpoint of Success…

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Optimism & Wealth Building

Posted on October 15, 2017 by TheWealthIncreaser.com

Learn why you must have an optimistic view of your future as you build wealth…

With uncertainty at a high level in the United States and many other parts of the world—whether it be hysteria caused by the mass shooting in Las Vegas Nevada, hostilities between North Korea and the United States, anxiety caused by the massive data breach at Equifax, massive fires in Northern California or unusual weather patterns in many areas of the Atlantic Ocean and Gulf Coast region such as hurricanes and earthquakes—many are suffering from anxiety or uncertainty about what lies ahead both globally as well as in their own lives.

Regardless of what is going on around you it is imperative that “you” have an optimistic view of how you can make “your” dreams come true. As far as building your wealth goes–it is imperative that you see success in your credit and financial future.

Even though the creator of TheWealthIncreaser.com has recently dropped his $2,000 computer (broke the screen—first time I have dropped and broken a screen on phone or computer in over 30 years)) and is in a not-so-upbeat mood—joy and a positive response to adversity—along with an optimistic view of the future is still not only expected—but will occur!

You too must have confidence that the outcomes that you expect will occur!

In this discussion TheWealthIncreaser.com will show you that in spite of it all there is no reason for you to fear what lies ahead and definitely no reason for you to fear what lies ahead in your financial and wealth building future “if” you make the decision to do what you need to do.

TheWealthIncreaser.com at this time feels obligated to offer you—and other visitors to this site a more optimistic vision of your future and provide in some small way the know how or steps that you can take to help you build up your spirit at this time so that you can start—or continue achieving at a higher level of excellence throughout your lifetime with optimism about your future success playing a major part toward achieving that excellence!

In order to worry less—or not at all, you need a mental understanding of what you can comprehensively do as it relates to your finances so that you can achieve at the level that you desire—or at the level that you need to achieve at to make life more meaningful while you are here on earth.

You must see success in your future and you must have faith that things will get better in your life regardless of what is occurring around you!

That sounds great, but you don’t understand what I am confronting at this time—you say!

Whether you now lack the income, are facing life challenges from all directions, lack the financial know how or plain just don’t know where to start—you can change that now by focusing in on this page in a highly intentional manner so that you can not only gain an optimistic view of your future—but you can also learn practical steps that you can implement immediately and get momentum rolling so that you can put yourself and your family on a positive path to achieving more throughout your lifetime.

You must have an optimistic view of your future in spite of where you now are and you must know that achievement at a high level can–and “will” be in your future!

1) You must know where you are currently at financially and then see what you need to do to get on a positive path to success

2) You must have “mastery of your credit” and know what you can do in definitive terms to better manage your credit throughout your lifetime

3) You must have a mental framework of what you can do to comprehensively manage your finances throughout your lifetime and you must have the mindset that you will comprehensively manage your finances throughout your lifetime

You must ask the following 3 questions and sincerely answer them if you are to effectively manage your credit and finances and gain an optimistic picture of your and your family’s future.

1) Do You Know Where You Are Financially?

It is imperative that you know your monthly inflow and outflow of income (you must complete a personal cash flow statement or personal budget at a minimum).

You must calculate your monthly inflow and outflow of cash in as accurate and responsible a manner as possible. In addition, it is worthwhile to know your inflow and outflow on an annual basis (personal income statement) as well.

Furthermore you must know who you owe (liabilities)—and the amounts—what you own (assets) and the amounts (by creating a personal balance sheet) so that you can derive your Net Worth.

2) Do You Have Mastery of Your Credit?

Do you have an effective system that allows you to manage your credit effectively throughout your life?

Although confusing to some, credit management is not as difficult as you think if you are willing to put in a little time and effort to learn the basics.

By visiting the above link and utilizing the knowledge that you will gain you will have no problem managing your credit effectively and efficiently throughout your lifetime.

3) Do You Have a Comprehensive Picture of How You Manage Your Finances?

It is also imperative that you know all of the areas of your finances that you must address. You must be able to pull up from your memory all of the areas of your finances that you need to address at the drop of a hat.

You must know that you must look at and address your insurance needs, your investment needs, your taxes, your emergency fund, your education planning, your estate planning/wills and your retirement needs on the front end to be more effective throughout your life stages—or during your wealth building periods of your life.

CONCLUSION:

By asking and answering the above questions you must not be intimidated—even if you are new to personal finance or you don’t have experience managing your finances! You must set meaningful and significant goals and have every intention on reaching or exceeding those goals!

You must understand fully that by comprehending the material on this page and following the links on this page there is a high probability that you will find what works for you financially and what can possibly spark what needs to be sparked inside of you—that can lead to you following a path that can make your dreams come true.

You must realize that you don’t have to be a financial expert—but you must have a “practical understanding and overview” of what you can do to make your financial (and life) dreams come true.

By gaining a real understanding of the 3 topics discussed above you have (or soon will) put yourself well ahead of most people in the general population when it comes to effectively managing your credit and finances.

As a result of visiting this page you now have a more optimistic and realistic view of what lies ahead for you and your family regardless of what has happened around you, is happening around you—or may happen around you in your future.

If you are like most visitors, you will use this page and site as a springboard to achieve major success throughout your lifetime.

You now know that it is you who possess the keys to success as it relates to your future!

You now have an optimistic future in your sights…

You now have access to wealth building advice in small–but highly effective bites…

You must now play your part…

As you journey on your fresh start…

If you are–or are not in a financial bind…

You must make effective use of your mind…

You can now use what you have inside…

And use this page and site as a highly effective guide…

All the best as you pursue your new and more optimistic view of your wealth building success…

TheWealthIncreaser.com is of the optimistic opinion that what you desire has already been achieved.

Now go do it!

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Pursuing Your Dreams & Wealth Building

Posted on October 1, 2017 by TheWealthIncreaser.com

Learn why pursuing your dreams at your highest level is the best approach for you to take if you desire true success as you build wealth…

It is important that you pursue what you want most with vigorous energy so that you can get more opportunities and ideas to open up for you as you chart your path to wealth building.

As the leaves fall in the October air in Atlanta Georgia, TheWealthIncreaser.com thought that an uplifting page on pursuing your dreams in a highly effective manner that could get you to achieve more during your lifetime was in order.

In this discussion TheWealthIncreaser.com will show you highly effective ways—and possibly more empowering ways—that you can pursue your goals and make the dreams that you desire occur in a more efficient and well thought out manner as you embark on your wealth building efforts.

It is you who must put into motion the serious pursuit of what you want to occur in your life and it is you who must put into motion the initial steps and consistent effort that is required that will help create momentum (and added motivation) that can move you toward your goals in a more timely manner and open up new opportunities for you that you may have never imagined.

If you pursue your dreams at your highest level more paths will open up (in addition to the one that you started on) for you that will take you toward the success that you desire. You must always set new goals, pursue new dreams and have the mindset that you will reach them during your lifetime!

You must from this day forward never let rejection from others or obstacles along the course deter you from achieving your dreams. In spite of it all you must still find a way to navigate toward the success and dreams that are all your own!

How bad do you really want it is a question that you must ask yourself and answer appropriately throughout your life if you are to achieve at your highest level? How strong is your desire to work toward what you really want?

Most importantly, have you searched inside of your heart and mind and determined if you are truly ready to put in the required effort so that you can get your future moving in the direction that you desire? Are you ready to believe it—see it (and say it)—and act on achieving it as far as your dreams are concerned—whether it be financial or otherwise?

Are you ready to say? YES I CAN and YES I WILL

The above and other questions must be answered appropriately as that can lead to you achieving what you want to achieve and help increase your desire to put in the effort that will be required of you. By answering the above questions appropriately you will also begin to dream big, however be sure to remain flexible as you pursue your dreams as life events can be uncertain.

Always have your antennae up for new ideas, take calculated risks where appropriate and have the attitude that you will never quit—as a persistent spirit always wins!

*live with passion

*always push forward

*create something of value for others–and your family

*focus intently on what you want

*ideas–make connections–look-listen-be curious–be a problem solver

*persist–don’t quit–never quit

When you pursue what you desire at your highest level a higher power is turned on inside of your mind and heart and you will begin to achieve at a level that you never imagined!

Always realize that you cannot let what is occurring in and around you be a distraction or reason that you use to allow yourself to do less during your lifetime. You must gear your mind up to act and perform at your highest level of excellence on a consistent basis throughout your lifetime.

Conclusion

It is important that you pursue your credit and financial goals with the real expectation that you can achieve those goals. You must also realize that your decision to do nothing as far as putting in the work that is needed to reach your goals—is also a decision!

By doing nothing you join the millions of other consumers from around the world who fail to seriously look at their current credit and finance position to find real and meaningful ways to improve them—and make their and their family’s living conditions much better while here on earth.

Today is a great time to change those dynamics and make your future work for you and your family and not against you and your family. If you make a serious and decisive decision today to get a real understanding of your credit and finances—and you are willing to put a workable plan of action in place—you can possibly put yourself and your family in position for future success throughout your lifetime and even after you transition.

You don’t have to live your life in uncertainty if you know the action steps that you can take that will take you to where you need or desire to be and you have the determination and commitment to put those steps into action.

It is you who must develop a clear and concise plan that will provide you with the knowledge of what you need to do—and more importantly you must know how you can do it in a clear, concise and efficient way (whether by the effective use of this page and site or any other manner possible) that works with your mind and not against your mind!

Navigating this site—or other top credit and financial sites—can help you decide for yourself if you can find a workable plan that will take you and your family to a higher level (and the level that you need to be at) in your credit and financial life.

Now is the time that you take serious steps toward pursuing and achieving your dreams!

You must reach within—focus intently and consistently—and have the determination and commitment to see it all the way through!

You must have the attitude that you will always do what you need to do–to ensure that your dreams will come true!

Now is the time that you pursue what you desire!

Now is the time that you reach higher!

Rebalance your life, reawaken your spirit, rethink your future, reimagine your life and redefine your life starting today by pursuing your dreams in a different way–and at a level of intensity that you or the world has never seen!

You are far above average and you must never settle for the arithmetic mean!

All the best as you pursue your wealth building and life success…

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Protecting Your Identity & Wealth Building

Posted on September 23, 2017 by TheWealthIncreaser.com

Learn how you can build wealth and protect your identity by using the credit and finance system in a more diligent way…

With recent events in the credit industry (with the most severe being the Equifax credit breach) TheWealthIncreaser.com felt that the time was right to focus in on this topic in an attempt to help visitors to this site and those who desire to protect their credit do so in a more secure manner.

In order to more effectively protect your identity and build wealth you must first have an understanding of credit and know what the purpose of credit is before you can formulate high level security measures that are designed to protect your finances and preserve a way of life that you have become accustomed to.

There are a number of options that you can choose from and they all consist of you getting involved—if you desire to manage and protect your credit from hackers, identity thieves and others while building your wealth more efficiently.

Mastery of Your Credit

In order to protect your credit you must know what credit is and why you need to protect your credit.

Did you know that Negative information, how you Use your credit, the Time length that you have on your accounts, the Types of accounts that you have and the number of Inquiries that you have—all play a part in how credit rating companies rate your credit?

By taking the time now to master your credit you are positioning yourself and your family for a lifetime of financial success and you are gaining healthy money management habits that will propel you forward and help you build wealth in a more effective and well thought out manner throughout your lifetime.

If you at this time find yourself in a position where you have collection account(s) on your credit report you must realize that there are basically 3 ways that you can get those accounts removed.

1) Dispute incorrect information and have it removed (if account is correct you will “wake up” that credit account and it could have a more negative effect on your credit than it had before you disputed the account).

Be sure you know the “statute of limitation” for the type of debt that is in collection as the period can vary depending on your state. If the time limit has been reached you can by law have the account removed from your report.

2) Ask for a Goodwill Deletion (late payments leading up to deletion will still show).

3) Pay for Collection Company to Delete (you can negotiate to pay the full or partial amount—be sure to get agreement in writing prior to payment–again late payments leading up to deletion will still show).

Self-Monitoring of Your Credit

Since you have now mastered the factors that affect your credit—you are now in position to monitor your credit yourself and at the same time take steps to improve your credit.

You now know that you can go to annualcreditreport.com (free credit report—once per year from TransUnion, Equifax and Experian)) and myFICO.com—(get your FICO score for a stated fee) and review your credit report(s) and purchase your credit score.

In addition, you can monitor all of your financial accounts on your own by looking at your banking activity on a regular basis, signing up for financial alerts on your bank and credit accounts when a certain dollar limit is exceeded, shredding of your mail and particularly identifying information, using strong passwords on your financial accounts and changing them in a timely manner on a consistent basis.

Furthermore, make sure you have anti-spyware and anti-virus services on all of your electronic devices that are on a network–whether it be the world wide web or a private network. Also avoid going to dangerous sites or those that you are not familiar with (including this site–hopefully you did some research prior to visiting) as they can plant malware (malicious software) on your computer and cause havoc for you.

Be sure to destroy, degauss or erase all data on your hard drives of all of your personal devices prior to disposal, recycling, trade-in or selling to others.

In addition you can secure credit cards that you may not use regularly (i.e., if you have 10 credit and banking cards but only use 4 regularly—why have all 10 on you at one time), pull your credit report regularly and do other things that may come to mind to secure your credit and financial data.

Credit Freeze on Your Credit

In addition to the things that you can do mentioned above—you can also have the credit bureaus help you in your efforts to protect against fraud and identity theft!

In order to freeze your credit you must contact all 3 credit bureaus individually and pay a stated fee for a credit freeze that can be permanent depending on your state. You can unfreeze and re-freeze your credit if you desire to obtain a car loan, get another credit card, purchase your home or do anything else that requires the use of your credit.

With the massive data breach at Equifax your personal data may float around for an infinite period (many years) of time and be utilized by others to your detriment at any time in the future while you are alive and even possibly after your transition.

Although the exact scope of what was compromised for you individually is not fully known by you at this time—you must make the assumption that your personal data (your name, social security number, date of birth, past and current creditors, past and current addresses etc.) will float around for many years.

Monitoring Service and Your Credit

Now that you understand the high probability that your personal data will float around for many years you must seriously consider additional ways to protect your data. If you have the financial capacity to purchase a monitoring service you must weigh the pros and cons.

In addition to the above protection methods you must seriously consider Monitoring Services that can add another layer of protection and come to your defense in a cost efficient way if your personal data is ever compromised.

There are many financial institutions and companies that offer credit monitoring service—usually for a stated monthly fee. In addition to the more common names and companies search deeper for a company that may be able to meet your needs in a better way.

In addition, your credit card company(s) and bank(s) may offer you the option to enroll in alerts or “monitoring services” that can help you identify fraud such as a new inquiry or a new account on your credit report.

Conclusion

You can use self-monitoring to help protect against identity fraud and catch changes that you did not take part in by analyzing your accounts on a consistent basis.

If you notice fraudulent activity or you notice that your identity has been compromised based on activity on your credit report(s), credit card(s), bank account(s) investment account(s) or other financial account(s)–you want to catch it as soon as possible.

You can utilize chexsystems.com to check and see if other banking accounts have been opened or attempted to be opened in your name. Keep in mind that all banks do not use the chexsystem so be aware that other accounts could possibly be opened using your identity that you may not be aware of.

In some cases you may have to file a police report to help in your efforts to clear your identity and/or get credit back for the funds that were fraudulently obtained in your name.

If you find an issue of concern on your credit report there are things that you can do:

*Double check the inquirer name

*Request a more detailed description

*Contact the Credit Reporting Agency

Always realize that many banks and credit issuer’s offer mobile apps that can help you keep an eye on your account at all times, and you must strongly consider using them. In the end, you must always know that it is your responsibility to keep an eye on your credit and banking activity to protect your identity and help further ensure the future that you desire.

Another way to protect against identity theft and the unauthorized use of your credit is to maintain poor credit! Your poorly managed credit would be of lower value in the eyes of identity thieves and they would more than likely move on to a more attractive target. This approach is not advisable as it forces you too live at a level that is not desirable in most cases–and will not take you where you need or desire to be while you are here on planet earth.

In addition, always realize that you are entitled to receive one free credit report each year from each of the three major credit reporting agencies – TransUnion, Equifax and Experian.

To help you stay on top of your personal credit, many credit card issuers and banks are now offering “applications” that will give you weekly updates to your TransUnion, Equifax or Experian credit report(s)—and automatically alert you when your report changes.

Many are built right into the credit card issuer or banks Mobile app!

Additional Tips:

Be sure to consider signing up for transaction alerts for all of your credit and debit cards. You can also set customized text or email reminders to stay on top of your accounts. Always have your “antennae up” for scams whether it be by email, in person, over the phone or in any other way as scammers are all around you! If you or a loved one are elderly, be sure to guard against cognitive impairments that sometimes come along as you age.

You can also occasionally check your credit report(s) for suspicious activity to catch activity that you did not create. By doing so you can notice changes and take action in a more timely manner. And as stated earlier in this discussion you can get your annual, free credit report from each of the three major credit bureaus by going to annualcreditreport.com and you can obtain your actual FICO score at MyFICO.com for a stated fee.

Be sure to use a safe and pre-cautious approach when protecting your identity by changing your passwords regularly, and never sharing your user name, password or security questions with anyone.

In addition, you can find other helpful tips to protect your identity and guard against fraud by going to this helpful page:

https://www.dccu.us/blog/protect-yourself-from-fraud-in-2018/

It is critical that you make protecting your credit and other financial accounts a top priority in your life at this time as by doing so you help ensure a more prosperous future for not only yourself—but future generations—thereby passing along a legacy that you helped create.

All the best to protecting your identity and your wealth building success…

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Housing Related Insurance & Wealth Building

Posted on September 10, 2017 by TheWealthIncreaser.com

Learn how Housing Related Insurance can help you attain your Wealth Building Goals…

More on Insurance…

With the hurricane season in full force and hurricanes Harvey and Irma doing major damage to many southern states in the United States and the Carribean Islands–TheWealthIncreaser.com was inspired to create this page to possibly help you and others proactively guard against man-made and natural catastrophes that might occur during your period of home ownership that could cause undue hardship on your life and particularly your wealth building efforts.

Insurance basically protects you in the event of a covered loss and the following insurance types related to your home can help protect you from loss and help you continue to build wealth effectively and efficiently!

Even though ideally you want to be in position to never have to use insurance—you must put together a plan to have the insurance that you need (or is required) during the period in your life that you need it. Some insurance is required if you have a mortgage or home loan (hazard insurance) and some insurance is optional (at your discretion), therefore be sure to take this discussion to heart and analyze your current insurance needs in a comprehensive way.

PMI or MIP

If you purchase your home and you put less than 20% down you may have to pay PMI or MIP if a government backed loan is obtained. That additional premium is basically included to protect lenders in the event of your default on the loan (non-payment). If you put 20% or more down their risk is reduced in their eyes to an acceptable level and you would not have to pay PMI or MIP.

Although you pay the insurance premium monthly, the payment is for the protection of the lender–not you–and works against your wealth building goals. Ideally you want to purchase your home without mortgage insurance so that you can build wealth more efficiently.

You benefit by paying PMI/MIP primarily by having to come out of pocket with a low down payment such as 3.5% or 5% instead of 20% or more that allows you to avoid this premium.

If you have PMI or MIP you may be able to refinance it out if it makes good financial sense to do so. Otherwise your PMI or MIP payment will remain until you reach a certain equity position with your home and loan or the half-way point of the loan in almost all cases (refer to your closing documents for more specifics). If you plan on selling your home–that is also a way out assuming you don’t repeat the cycle with your next purchase (you put 20% or more down on your next purchase).

The good news is that you can deduct MIP/PMI, along with mortgage interest, points and property taxes on your federal and possibly state tax returns (who knows how long that will last). PMI/MIP can be financed into your monthly payments or paid by you in a lump sum at closing–and if you paid at closing you would not see the premium in your monthly payment.

Title Insurance

Another type of insurance that is not well known by many is Title Insurance. Title Insurance protects your interest in your home from a “chain of title” perspective and is usually required by the lender at the time of closing and is optional for the home buyer. It is highly recommended that you purchase this insurance to protect your interest in the chain of title as there is no way for you to realistically know with certainty who owned the home or land prior to your purchase.

Although title issues after closing are rare they do occur and for several hundred dollars you can purchase Title Insurance at closing or outside of closing and protect your home from title issues up to the purchase price in most states.

Homeowners (Hazard) Insurance

Homeowner Insurance is required if you have a loan on your house. If you own your home free and clear Homeowner’s Insurance is optional but highly recommended unless you have a net worth that allows you to effectively “self-insure” your home and still meet the goals that you have during your lifetime and after you transition.

A standard homeowner policy allows you to add on (riders) that cover additional perils that you may face such as a loss from the theft of a valuable stamp collection, a million dollar painting, expensive jewelry and the like. You can add an umbrella insurance policy that can provide you additional coverage related to certain events that may occur and you can add flood insurance on as well–and they will both be covered in this discussion.

Umbrella Insurance

An umbrella insurance policy protects you against unforeseen losses as a result of accidents and provide additional coverage so that you won’t have to tap into your savings or other accounts to cover certain claims against you. An umbrella policy is designed to help protect you and your family from major claims and lawsuits.

For several hundred dollars a year you can get additional coverage (up to a million dollars or more) that provides liability coverage above the limits of your homeowners, auto, and boat insurance policies.

Flood Insurance

If you live in a designated flood zone be sure to purchase flood insurance. The cost usually is several hundred dollars per year up to several thousand dollars per year depending on where you live and the topography of the land in the area where your home and community exists.

It can even be a wise move to purchase flood insurance even if you live outside of a designated flood zone as weather patterns are becoming more unpredictable. You can purchase directly from your insurer (some insurer’s have their own program) and the government also has a program (National Flood Insurance Program) that can also be purchased from your insurer–never directly from the government.

After a flood you must be aware of potential mold issues and other environmental concerns as the potential for serious health hazards may be present.

Renter’s (Tenant) Insurance

A rental insurance policy normally covers the policyholder (tenant) from certain losses that occur in their rental home or apartment and is usually for contents and not the structure.

If you were a property owner leasing out your home or apartment unit you would need to get a policy to cover the home or apartment unit.

The tenant would be the one who would purchase the rental insurance policy otherwise they could sustain total loss of their contents if a theft, burglary, fire, flood or other event occurred. In many cases a standard renter’s policy would cover the loss. Be sure to consider additional riders to cover valuables or what is not covered in the standard policy that you may need–or desire coverage for!

Business Insurance

Although this discussion is primarily focused on home owners TheWealthIncreaser.com realizes that many homeowners also own a business. If you own a business be sure that you have appropriate coverage based on the type of business and the risks involved.

Credit Life & Life Insurance

Many vendors offer credit life insurance policies that will pay off your mortgage in the event of your untimely death, injury or disability. The premiums are usually quite high for the coverage amount.

Other options are whole life policies and term insurance policies that would pay your designated beneficiaries in the event of your untimely death.

If you chose your coverage amounts appropriately your beneficiary(s) could be in position after your transition to pay off the mortgage loan balance and own your home free and clear–and have proceeds to do other things that you may desire that they do after your transition,

Conclusion

Keep in mind that insurance is available to cover almost any hazard imaginable and there are mega insurance companies such as “Lloyds of London” that will insure almost anything (or anyone) imaginable and your desired coverage amount is available at varying premiums.

As far as your home owners policy goes, be sure to get adequate coverage to rebuild at current building costs. Always consider your need for additional coverage and you must understand what is and is not covered. Pay particular attention to “percentage deductibles” and other jargon that may limit the coverage amount on your loss.

For an additional premium you can add “riders or special endorsements” to your policy that will cover other perils not directly stated in the standard policy. Be sure to consider additional riders that may be of benefit to you and your family prior to (DO A REVIEW AT THIS TIME) a catastrophe or other unplanned event occurring.

After a natural disaster or catastrophe grants and/or loans (FEMA/SBA) may be available after you exhaust your insurance and they may require a credit evaluation and a look (review of your past payment history) at your ability to repay.

Emergency grants may be made available to you immediately depending on the nature and severity of the catastrophe and you may be eligible for those regardless of your income or current credit readiness!

Insurance is an area of financial planning and wealth building that must be approached in a serious and analytical manner and in an all-consuming or comprehensive manner so that you can achieve the goals that you desire. You must understand fully at this time that in some areas of insurance (i.e. homeowner’s insurance policy and auto insurance policy for sure and possibly other areas as well)–insurer’s take your credit standing into consideration when determining the rate that you will pay.

The good news is that you can request that they lower your rates if you have bad credit and you make improvements. However, if you fail to request that they re-analyze your insurance rate after you improve your credit–your credit improvement will go unnoticed by your current insurer(s)–and in almost all cases your rate will remain the same!

Always remember (even at a time of disaster) that if your local, state and/or federal agencies declare your area a disaster area or issue a state of emergency you may have additional options available such as including some of your losses on your tax returns as a casualty loss (can possibly amend prior year return to get proceeds in a more timely manner) or filing a claim for spoilage of food from your freezer or file a claim for debri removal if caused by a power outage or wind–without having to meet your deductible–depending on your state and the details of your policy.

In addition, if you have a Fannie Mae or Freddie Mac backed mortgage loan (which is a high probability) and you suffered damage as a result of a catastrophe in a federally declared disaster area–you may be able to suspend your mortgage payment for up to 12 months. Even if you have another type of loan it may be wise to review your closing documents or have an attorney help you sort it out to see if you can avoid paying penalty free on your loan for a period of time.

Try to get your bank and other companies that you have financial relationships (Automated Teller Machines, utilities payments, insurance payments etc.) with to waive your penalties for a period of time if you find making payments difficult after a disaster.

Whether you are now recovering from hurricanes Harvey or Irma or facing adversity on other fronts TheWealthIncreaser.com would like to leave you with some encouraging words.

Ironically this site was created due to a weather related incident and it is important that you use your imagination and have your antennae up for inspiration that may come your way in times that appear to be difficult at the moment and in actuality are difficult at the moment.

During times such as those the birthplace of big ideas can be found for those who are looking–and ready to act!

It is also important that you use HUMOR as a major tool to help you cope in times of adversity as by doing so you keep your spirits in “upbeat mode” so that your mind can act in a more appropriate manner during difficult times.

It is the desire of TheWealthIncreaser.com that this discussion has helped you get started on a path to analyzing your insurance needs in a more comprehensive manner and has put you on a path to achieving more during your lifetime without the added stress of unexpected and costly losses and experiencing the dark and empty feeling of not knowing the steps that you can (or need to) take to make your journey toward success much more favorable for you and your family.

All the best to your Insurance Coverage & Wealth Building Success…

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Credit & Insurance

Other helpful sites that may be of benefit in time of disaster:

RedCross.org

Salvation Army

National Housing Conference

Frequently Asked Questions About Flood Insurance

Flood Insurance Website

National Flood Insurance Program

EPA.gov

FEMA.gov

SBA.gov

CharityNavigator.org

Guidestar.org

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Smart Homes & Wealth Building

Posted on August 26, 2017 by TheWealthIncreaser.com

Learn how you can build or convert your home and make it smarter—and build wealth more efficiently…

Although smart homes are becoming increasingly popular with millennials and those born in the past 30 years or so—the concept of smart homes has been around for over 30 years. However, with the boom of the internet in the 1990’s and the subsequent advances in technology over the past 20 years–smart homes and what they offer are now available for the masses.

In this discussion TheWealthIncreaser.com will show you how you can use smart home technology to help you build your wealth more efficiently.

Did you know that the creator of TheWealthIncreaser.com has a penchant for technology and is A+, Network+ and Security+ Certified?

Whether you are purchasing a new home, purchasing a resale (existing home) with remodeling in mind, purchasing a rental, or purchasing a home to gut out and resell—smart home concepts should be a part of your mindset based on the time period that we live in and the technology that is now available.

Shop for your smart home products at…

Smarthome.com

Home Assessment

Did you know that you can go to SMARTHOME.COM and learn more ways that you can make your home more technologically efficient and possibly more energy and environmentally friendly and efficient?

To get an idea of some of the products that can make your home smarter go to https://www.cnet.com/topics/smart-home/best-smart-home-devices/

For the latest news on Smart Home Technology go to https://www.wired.com/insights/2014/10/smart-homes-of-the-future/

Existing Home

Any device in your home that uses electricity can be put on your home network and work at your command. Whether you give that command by voice, remote control, tablet or smartphone, the home reacts.

Most applications that relate to lighting, home security, home theater and entertainment, and thermostat regulation can be incorporated into your existing home to make life more manageable for you and your family!

New Home

In a new home any device in your home that uses electricity can be put on your home network and at your command turned into a smart device. Whether you give that command by voice, remote control, tablet or smartphone, the home reacts. If you are purchasing a new home you must seriously consider incorporating smart technology in your home in ways that can make your life more enjoyable.

In a new home your options are wide open as long as you know the “smart concepts” that you want in your home upfront. By visiting this page you are now in position to have your builder implement the smart concepts in a more economical way (as the home is being built) as you can get the wiring, controls and other smart technology in place in a way that is smoother and easier on the construction crew and your wallet.

Bath Area

Although smart technology is available for virtually every room in your home, many have found smart technology in the bath area to be of high value. In large part due to sensor operated innovations like self-cleaning toilets, moisture sensing ventilation fans and digital shower controls you can now turn your bath area into one of the smartest rooms in your house.

Whether you are upgrading or considering the purchase of a new home you must consider improvements in the bath area that will make your home smarter and help you build wealth (will help your home sell at a higher price) during your ownership and increase your sales proceeds when you decide to sell your home.

Your Shower Area

You have a vast number of options when it comes to smart improvements in your shower area.

Whether you want shower heads with light and sound, digital temperature and water pressure controls that you can set from your smartphone and many other features you can make getting clean smart and fun.

If you are a conservationist consider a showerhead that senses what you are doing and adjusts the water flow. If you are washing your hair, shaving etcetera–a sensor will adjust the water flow and help you conserve water.

Your Toilet Area

A toilet that cleans itself is now available and there is now a model available that allows you the option of never touching the toilet.

The Toto NEOREST AC (although costly) has a model that uses the latest technology so that you won’t even have to touch the toilet.

Gravity and high speed jets and proprietary technology allows the model to use less water and still clean the toilet in an environmentally clean manner. Visit totousa.com to learn more about this product and other bath products that use smart technology.

Your Ventilation Area

Don’t overlook this vital area of your bathroom operation. Your ventilation system removes moisture and humidity that could promote the growth of mold and mildew and can help exhaust unpleasant odors.

Smart technology now sense humidity after a long hot shower and turns on the ventilation to help remove excess moisture from the room—some can even communicate wirelessly with wall switches or with an app that allows you to control the fan from your smartphone.

Your Mirror Area

You can now jazz up your mirror and cabinet area with smart technology that allows you to watch tv as you bathe or shower, integrate your home security system into the screen, defog your mirror so that you can shave faster, charge your electronics on a USB or other port on your cabinet, cooling cabinets that keep your medicine and cosmetics at the right temperature and other things that you might dream up.

Other Accessories for Your Bath Area

Accessories allow you to put your personal stamp on your bathroom area and there are many high tech solutions that allow you to do that with style, functionality, flair and personality that is all your own.

You can now choose small robot vacuums and mops, Bluetooth enabled toothbrushes that communicate with your smartphone to determine how well you are brushing your teeth (take that dentist—I don’t want to hear your comments), smart scales that can track your weight and health goals–and touch free soap dispensers that allow you to wash your hands more efficiently.

Conclusion

By upgrading in a tech savvy way you can enhance the value of your home and increase your living standards from the comfort of your home.

Challenges of smart technology for some include cost as the price for some technology can seem high for those with low disposable income. Another major concern is security as personal information and data that goes across the web can potentially be compromised by illegal or unauthorized access.

Hacking is a real concern with smart technology or any data that crosses over a network (whether it be the web or a private network). Will your information really be secure is a real question that you must ask? Will your smart locks to your doors really be secure or can it possibly be bypassed? The same goes for your smart alarm security system. Be sure to choose your smart technology products in a wise manner and with the above concerns in mind.

In addition, be sure your smart technology is inter-operable with other technology that you may purchase in the future as systems vary on what will work on their smart technology platform.

Whether heating, ventilation, air conditioning, lighting, electronics, kitchen appliances, laundry, your morning coffee or many of your bathroom elements—you can make your home smarter and build wealth more efficiently by taking a look at this time on ways that you can make your home smarter whether you are remodeling or building your home from the ground up.

It is now possible to make your home as technology savvy as your imagination allows you to go and when it is time to sell—you will have a home that will really show!

All the best to your smart home and wealth building success…

Learn more about smart homes by visiting these helpful pages:

http://www.iqsdirectory.com/blog/welcome-future-convenience-smart-homes/

http://www.smarthomeusa.com/smarthome/

https://www.theguardian.com/technology/smart-homes

http://time.com/tag/smart-homes/

https://www.fastcompany.com/3066847/what-smart-homes-will-and-wont-do-in-2017

http://home.howstuffworks.com/smart-home.htm

http://www.popsci.com/smart-homes-for-beginners

http://marketintelligence.spglobal.com/blog/smart-homes-in-the-u-s-becoming-more-common-but-still-face-challenges

https://www.zillow.com/atlanta-ga/smart-house_att/

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