Stop Planning for Future Retirement , Live Today in Style

Written by Ida Byrd-Hill

Forrepparttar past 85 years,repparttar 151106 financial services industry – banks, financial planning, insurance and stock brokerages have experienced double digit growth by cajoling frightening individuals byrepparttar 151107 prospects of poverty and lack during retirement. Everything from radio, televisions commercials and print ads projectedrepparttar 151108 bleak prospects for retirement if individuals did not save and invest. Individuals born between 1912 to 1945, currently ages 60 to 93, responded to this marketing strategy as they experiencedrepparttar 151109 pain ofrepparttar 151110 Great Depression.

The Great Depression causedrepparttar 151111 largest economic slump in industrialized nations ever. The Great Depression began in 1929 whenrepparttar 151112 stock market collapsed. Stock market values dropped eighty percent. Not only did individual investors lose big, so didrepparttar 151113 banks. Many banks had a large chunk of stock in their asset portfolios. So much so that 11,000 banks out of 25,000 collapsed inrepparttar 151114 U.S. alone. Individuals lost on three fronts. They lost money inrepparttar 151115 stock market, inrepparttar 151116 bank and their jobs. The burgeoning manufacturing industry saw a 54% drop in output causing 25 to 30% ofrepparttar 151117 workforce, approximately 12-15 million people, to go on layoff.

With so many people out of work, breadlines and soup kitchens became common place. People had no money to feed, clothe or house themselves. Unfortunately,repparttar 151118 government did not haverepparttar 151119 resources to help them either. The impression ofrepparttar 151120 Great Depression has been firmly imprinted onrepparttar 151121 minds of individuals, ages 60 to 93, born 1912 to 1946. Most have vowed to themselves they would never again sufferrepparttar 151122 lack they suffered duringrepparttar 151123 Great Depression. Hence, these individuals are frugal; budget conscious savers who disdain credit and speculative investments. They soughtrepparttar 151124 safety of guaranteed investments andrepparttar 151125 security of insurance companies who weatheredrepparttar 151126 Great Depression. Withrepparttar 151127 evolution of Federal Deposit Insurance Company (FDIC), they spread their money across several banks. Although they have money in banks and stock brokerages, they do not really trust banks or stock brokerages. They trust FDIC and SIPC (Security Investor Protection Corporation).

The financial industry evolved aroundrepparttar 151128 financial behaviors of these Depression Era individuals. These individuals amassedrepparttar 151129 greatest amount of wealth inrepparttar 151130 history ofrepparttar 151131 United States. Because they were solely afraid of suffering another Great Depression.

The financial behavior ofrepparttar 151132 Depression Era individuals is exactly contrarian to those born 1946 to 1964. These individuals are called Baby Boomers. These individuals never saw lack. Their mothers, once house wives, worked inrepparttar 151133 manufacturing industry during World War II. When their husbands returned fromrepparttar 151134 war, many women continued to be employed outside ofrepparttar 151135 home. Her employment brought new affluence torepparttar 151136 home. It also brought her intorepparttar 151137 forefront of financial decision making. Women, now, influence 80% of financial decisions. Afterrepparttar 151138 World War II, The US government created an economic boom bringing new jobs and more income thatrepparttar 151139 US economy has ever seen. Baby Boomers have always seen good economic times. They have never experienced financial lack, financial lost or suffering.

Lower Mortgage Payments can Increase Wealth

Written by Ida Byrd-Hill

Creating and maintaining wealth is a very difficult task. Ask any millionaire!!! The delicate balance of living a dream lifestyle and holding expenses tight creates this difficulty. As a financial advisor, I have assisted people accumulate monies to live their dream life while discovering ways to reduce their necessary expenses.

Everyone would agree mortgages are necessary expenses. Probablyrepparttar biggest expense most of us have. Mortgages presentrepparttar 151105 opportunity to secure income tax deductions while utilizingrepparttar 151106 house to live.

What if you could reduce your mortgage interest rate to 3% and be required to pay interest only for 5 years? Would you refinance your current house? Purchase another?

While refinancing a client’s mortgage, I discovered such a mortgage. The client will save lots of moneyrepparttar 151107 next few years. Here is his scenario:

Client #1$500,000 Loan Amount Past30 Year Fixed @6.00%=P&I$2,997.75/ month 5th year loan balance$ 456,989.77 Equity (assuming no appreciation)$ 43,010.23 Current LIBOR ARM@3.00%=Interest only$1,250.00/ month Applied additional $1747.75 / month to principal for 5 years 5th year loan balance$ 362,370.82 Equity (assuming no appreciation)$ 137,629.18

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