Outside the Box Case Study
Help me buy a house! Can’t tell you how often I have heard this over the last few years. The market is tight, interest rates are high and getting a mortgage can be a painful and lengthy process that may lead to missed opportunities. Eddie and Diane were so excited by a house they looked at. They went to make an offer and had to put in contingencies that made the seller nervous. They went with another offer. Dream house lost! Why? Because while they had renovated their house to get ready to sell, they hadn’t renovated their finances to get ready to buy. Here are a few things we discussed:
Down payment – a larger downpayment feels better to a seller
No house sale contingency – be confident your house will sell or in your ability to carry two mortgages.
3. Be able to move quickly. A cash offer is attractive because it’s a combination of a 100% down payment and a quick close.
4. Access to capital is key. Old 401k plans and current 401k plans can be positioned for quicker liquidity.
5. Explore your support network. Don’t go to your parents until you’ve explored, understood and implemented all of your own options. Don’t be afraid of doing a little multi-generational planning. Just make sure you know what your asking for.
6. Non-cash ways parents can help kids. Cosign the loan. Stand by as cash flow, down payment or bridge financial support.
7. Understand the pros and cons of financing options – including leveraging options, restricted stock, ESPP, Insurance and other investments.
We have helped clients successfully navigate the housing market over the last few years. Making offers and having them accepted may be a challenge. Understanding how to renovate your finances for maximum curb appeal will help get your offer the second look it deserves to close the deal. Call us if you are even thinking of buying or selling a house. Exploring options and mapping out the journey is what we do. Let us help you.
FORE: Golf Opportunity
This summer, we are delighted to invite our clients for a round of golf with Financial Advisor, Nate Waller, at Val Halla Golf Club in Cumberland, Maine. We would be honored if you could bring a friend (or two) who you feel might benefit from learning about shepard FINANCIAL and hear from Nate about the services offered. Whether you are a seasoned golfer or just looking to try something new, please let us know if you're interested!
Looking Back: Financial Literacy Month
Financial Literacy month every April is an opportunity to teach the community how to trade well. Kids in grades 3-8th joined us on site to learn about spending, saving and investing as it relates to the four currencies we all trade- time, energy, relationships and money. One participant is saving for a miniature horse and did the math with Tom to figure out how to monetize running around the yard to raise the needed funds to meet the goal. Turns out it is 2,000 laps around the yard!
Looking Ahead: Undecided
I was thinking about this coming presidential election and reviewing a number of polls recently. I have always been skeptical of polls and especially more recently. Why more recently? Well it goes something like this. I like my friends. When asked how will I vote I treat others the way they want to be treated. Trump fans and Biden fans get a pretty neutral reaction out of me because I don’t care for either option and it’s a shame the two party system can’t produce better candidates. Something is broken. Let’s look again at the polling.
In one poll Biden is leading in Massachusetts by 25% with 21% undecided. In Virgina it’s a tie with 16% undecided. In Tennesee Trump is leading by 18% with 24% undecided. That’s a lot of indecision.
What to make of this. I think the country wants better candidates. The two party system is not seeking to find the best candidate for the country. Its viewing the search for a great presidential leader as if it were a championship football, hockey or basketball game. Bragging rights go the fans of the winning team for the next four years. Party is usurping loyalty from country. Social Media is feeding the fans. Specially designed news channels are programming the electorate. Do I trust my fellow citizens to make the right choice. Yes. The choice right now for me is to get as many people to reject both. Now is the time to ask for better candidates. Election day is not the time. Let’s not just hope for something better. Advocate for it. Let your elected officials know you want other choices.
The national race shows as a tie with 11% undecided. I don’t want a candidate good enough to beat the other side. I want a president good enough to lead this great country. Digging deeper I would guess that of those decided its more likely they don’t want the other guy to be president. There has to be a way to get better choices. Here at shepard-FINANCIAL we are working hard to help all of us better understand our economic system. There are problems that can be fixed. We just need to look again at many of the financial experiments we’ve been running and unwind the ones that don’t work, tweak the ones that are only working ok and find the stomach to continue looking for policies that support our people from struggling single mom’s to world saving technology corporate dreamers. Divided by nothing is not an error. It is our purpose.
Tom
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Evolve with your money.
The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may directly.
All investing includes risks, including fluctuating prices and loss of principal.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies.
Tom Shepard, CFP®, APMA
CEO and Founder
shepard FINANCIAL
701 Route One Suite 4 |Yarmouth, ME 04096
(w) 207.847.4032 | (c) 207.331.0118 | fax 207.221.1117