Home
About . . .
- The Firm
- Steve Nearman
- Jackie Wysong
We Offer . . .
- Investment Advice
- Life Insurance
- Health / Dental Insurance
- Disability Insurance
- Long Term Care Insurance
- Retirement Plans / Planning
- College Funding
- Mortgage Analysis
- Budgeting
- Comprehensive Financial
Planning
- Wills & Estate Planning
NFC Financial Report . . .
- Current Issue
- Archives
Hot, Helpful Links
|
| We’ve seen some pretty major damage as of late, lots of major winds, trees coming down by the dozens, people furiously battling each other, complaints of slow response by federal officials. And that’s just at Redskins’ owner Dan Snyder’s house on the Potomac, where trees are an endangered species. Could you imagine Dan out there with his ax, telling the National Park Service officials that he didn’t chop down the trees. “I cannot tell a lie,” the modern-day George Washington would say. Sure. The only person more irritating than Dan Snyder is the ridiculous-looking pitchman in the oversized glasses hawking tickets to his Six Flags parks. Shouldn’t that guy be retired and kept out of the pictures? The best amusement that Snyder could offer his customers is a real QB, and maybe even a touchdown by mid-season…
|
Nearman Financial Report - September 2005
Financially entertaining since 1992
From the folks at Nearman Financial Consulting of Old Town
While most of you enjoyed the beautiful weather last weekend, NFC President/CEO Steve Nearman spent the entire weekend in a dark hotel conference room gaining a greater knowledge about mortgages and the mortgage process. No, it wasn’t particularly fun or exciting.
But it was tremendously worthwhile to our clients. This is just one more way Nearman Financial brings value to our clients. Anybody who is advising you on cash flow and financial planning needs to have an exceptional depth of knowledge about your largest monthly outflow and most likely your largest financial asset, your mortgage and your house.
We also have exciting news to announce later on in this newsletter. Now you are stuck reading all the way to the end.
Over the years, we have been able to save clients significant money by refinancing their mortgage or by recommending and obtaining the right program for them. There are dozens and dozens of financing programs offered by hundreds and hundreds of financial institutions.
They all are not the right ones for you.
We also have arranged for clients to tap into the equity in their homes for college education, home improvements and even purchasing second homes and/or investment properties. Another financial planning tool we use is to utilize the equity in your home as a safety net, instead of doing what most financial advisers say, which is to take three to six months of expenses and put them in a savings account at a low interest rate for potential emergencies. Why tie up money when you can have a tax-deductible line of credit set up just in case?
One of the major topics in financial planning is this: do you put as much money as you can into a mortgage payment to pay off your mortgage as soon as possible or do you put the minimum amount of money into your house so you don’t tie up that money?
This is known as fully leveraging your home or not. Some advisors are telling their clients to take out 15-year mortgages so you can be free and clear of your mortgage payments over 15 years instead of 30 years. Obviously, the payments are higher for the 15 years than the 30 years.
And many loan officers are suggesting 5/1 ARMs to take advantage of the lower rates of a 5-year fixed mortgage versus the higher rates of the 30-year mortgage. Is this the right program for you?
There is no right or wrong answer, just better solutions for your individual situation. Remember that the most financially-brilliant solution may not be the one you can sleep with at night.
Case in point: One of our dear clients locked into a 20-year mortgage last year on his primary residence with principal and interest payments. Why?
Because he plans to stay in this property until retirement (what’s THAT?), and by age 64, he will have no more mortgage payments. Instead, he will have a fully paid-for home.
This is why it is critical to discuss mortgages with a professional who sees your whole picture, not just somebody who is out there trying to sell as many mortgages as they can.
Financial advisors have a fiduciary responsibility to do the right thing for their clients. The uninformed mortgage buyer suffers in the mortgage biz with higher costs and rates than the more informed or those who have a knowledgeable advocate as an advisor.
And remember, too, that there are three kinds of people in the world. Those who can count and those who can't!
Now the exciting news: we know you will happy to hear it, but you will have to call us at 703-683-4660 for more information.
Your Financial Advisor or Your Bud
The financial advisor welcomed his new client into the office and offered him a seat at the conference table. He immediately went to the fridge, took out two cans of beer and offered one to the investor.
“Isn't it a little early in the morning to start drinking?” the investor said with a worried look. “I came here to get advice in a very turbulent market.”
The advisor smiled and calmly replied: “If you had bought $1,000 worth of a telecom stock one year ago, it would be worth $74 today. If you bought $1,000 worth of Budweiser beer a year ago, drank all the beer, and traded in the cans for the nickel deposit, you would have $75. My advice to you is to start drinking heavily and remember to recycle.”
Nearman Financial Report is a complimentary newsletter for clients and friends of Nearman Financial Consulting Inc. of Old Town Alexandria, a leading provider of financial products and services including stocks and bonds, mutual funds, annuities, retirement plans, life/health/dental/ disability and long-term care insurance, mortgages and personal financial planning and advisory. All securities are offered through Investors Security Co., 127 E. Washington St, # 101, Suffolk, VA 23434. 757-539-2396. Member SIPC/NASD. Who needs TV when life is one big reality show?
|
