That's the $64,000 Question...

Most people won't inherit millions of dollars, but according to the American Association of Retired Persons (AARP), the median amount of today's inheritance is about $64,000. While that's not enough to provide financial security for life, it's still a lot of money and requires careful planning before deciding what to do with it. So therein lays the question - if you receive an inheritance - what should you do?

Step One...Do Nothing: Remember, this is an emotional time. You may have lost a loved one, you're receiving a sizable chunk of money, and your judgment may be clouded by emotion. Rather than make a decision you regret later, take some time to step back and think. In the meantime, put the money in a money market or savings account that will keep it safe, and allow you to access when you're ready.

Check the Tax Laws: Some inheritances are tax free, but some are subject to federal and state taxes. Make sure that you diligently record everything that you inherit and the date that you inherited it. Most important, seek advice from a tax professional before you decide what to do with the inheritance - you don't want to spend money that you don't actually have. And if you need a referral to a great tax pro - just get in touch with me.

Stick to Small Wishes: Many people dream of a vacation home or taking a luxury cruise around the world. Receiving an inheritance may make those dreams seem within reach. Often, however, they're not realistic for your overall lifestyle and budget. So keep the splurging to a small gift for you or your family. Keep the big picture in mind for the rest of the money.

Invest as Usual: Don't gamble your inheritance away on a high-risk investment that doesn't make sense. Instead of thinking of it as "found money" or looking for a big score, treat it like the rest of your investments. Work with a professional advisor to determine which options and risk-level make sense, based on your entire portfolio and future plans - and feel free to contact me for a referral to a great financial pro.

Timing is money

Did you know that the fiscal year for Japanese companies ends in March? Do you care? You SHOULD...if you want the best deal on a new television for your home theater system.

That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.

Looking for Even More Savings?

You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.

Airplane Tickets: Planning on traveling for the holidays this year? Want to save some cash on your airline tickets? Of course you do! Did you know your best chance for saving is Wednesday morning? That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.

Gas: Going by car this holiday season? We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!

Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.

Toys: The winter holiday season is a no-brainer for toy sales. Store shelves are stocked and prices are often priced to move the merchandise. But you can also save some serious dollars by shopping well before the holidays arrive...such as the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer and early fall, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try getting a jump on your toy shopping as early as late summer and the beginning of fall--you'll avoid the mad holiday rush and save some cash.

Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or early November as well as in April and early May. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.

Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!

The moral of the story--plan ahead on your purchases and you'll be rewarded!

"Equity Man' Mike Brouse goes to Princeton!

Dear Friends,

I wanted to let everybody know that my practice is alive and well. I have taken advantage of an opportunity with a company called Princeton Capital (Residential Mortgage). Princeton Capital is a subsidiary of PHH. PHH is a strong and well-funded mortgage banker. PHH has thrived and survived through the current credit crunch because of their conservative approach to lending. In fact, PHH has such a stellar reputation with Wall Street that we continue to offer a plethora of mortgage solutions with extremely competitive pricing.

The highly regarded Princeton Capital mortgage consultants normally operate from inside of the Coldwell Banker offices in an “In-House” lending capacity. I will continue to focus my energy and attention on past clients, however, now there will be a strong emphasis on meeting the needs of over 130 exceptional Realtors in my office. I am grateful for the relationships I have established over the past eight years. I look forward to helping you achieve your long and short term financial goals. I believe now more than ever that your mortgage is the key to financial freedom. It remains the biggest debt and the greatest asset on most home owners balance sheet. As we navigate through the next several months of economic uncertainty, know that you have a professional in your corner ready and willing to answer any questions that may arise or handle any of your mortgage needs.

You will be receiving some mail correspondence from me in the next week or so. Please feel free to call me with any needs or concerns.

Please don’t keep me a secret this holiday season as you interact with friends, family, and co-workers, who could use my help.

Equity Man Mike Brouse has Moved!

My last day at CTX Mortgage Company was Tuesday, Oct. 23, 2007. Please send all further correspondence to mike@equityman.net. I will let you know what the next step for me is. I remain your trusted mortgage advisor. I value you and appreciate your business.

Please don’t keep me a secret when it comes to the next person you come across who could use my help in purchasing or refinancing a home.

Best,
Mike Brouse
707-888-8230

Going once, going twice, SOLD .. on eBay

The garage sale season is coming to an end, but if you haven't had a chance to clean out your closets or spare rooms yet, don't fret. One of the most powerful sales is taking place right this minute...actually every minute of every day...on eBay!

The online auction site has quickly become a convenient way for consumers to buy the goods they're looking for--and for sellers to actually make money by auctioning off items they don't need or want. Even though listing and selling items may be easy, the tips below can help you increase the number and size of the bids you receive!

What You See Is What You Get.

Believe it or not, many buyers won't even look at your ad if you don't provide a picture of it...they still want to see what they're buying. To increase your number of potential bidders, make sure you include a quality photo for every item you're selling.

How Low Can You Go?

It sounds a little counter-intuitive, but the lower you start the bidding, the more money you may get. In fact, starting the bidding at 99 cents--versus a dollar or more--attracts a larger number of bidders. This larger pool has two powerful impacts. First, the more bidders you have, the more new bidders will be drawn to your ad, believing that you've got a red-hot item. Second, many bidders will continue the bidding game once they've begun it, which means they may bid more in their third or fourth round then they would have been willing to offer if you started that high in the first place. Finally, remember that your profit isn't just determined by how much you sell your item for...you also have to consider how much you will have to spend in order to sell it. By listing your item at 99 cents, you'll qualify for the lowest eBay listing fee.

Don't Get Carried Away With Shipping.

In order to receive an item, the buyer must pay for shipping in addition to the winning bid amount. Those shipping fees aren't determined by the post office...they're actually determined by you. To make sure you don't drive buyers away, clearly list the shipping fees that apply. And don't get greedy and run up those fees. Smart shoppers will know you're trying to take advantage of them and they'll walk away. So, be clear and be fair!

Consider the Alternatives.

Potential buyers will find your ad through searches. To make it easier for them to find it, consider alternative spellings--such as "videogame" and "video game." Also, once buyers find your ad they may have questions. To make sure they can contact you, consider providing a second e-mail address, in case your primary one is only checked while you are at work.

Everybody Loves Options. Some buyers prefer paying for their online purchases through a secure Internet payment service; others prefer using credit cards. Increase the number of bidders interested in your item by offering a variety of payment options.

Know When to Post 'Em and When to Hold 'Em.

The day that you post your ad makes a difference.

For instance, if you post a 10-day ad, the best day is Thursday. That way, your auction will end on a Sunday...which happens to be a big day for eBay bidding. Plus, your ad will be up for two full weekends, thus increasing your exposure on active bidding days. If you're getting ready to list an item, take a minute to consider how the listing day will impact your sale. It's better to wait a few days and get a better price in the long run, rather than rush into a situation that might mean fewer--and consequently lower--bids.

Follow these tips, start off small and work your way up to more expensive items, and have fun watching buyers bid!

Demystifying the Home Finance Hubbub

In the recent weeks news stories have been flying concerning the recent mortgage company failures and the significant hiccups our financial markets are experiencing.

This article on EquityMan.net under the article link of "Demystifying the Home Finance Hubbub" will explain in a very easy-to-understand way what all the hubbub is about. There is no doubt there are very serious problems, however, with every problem comes opportunities.

My desire is to keep you informed to instill confidence and clarity in these financially turbulent times. Many of you are in the Option Arm product. It can be un-nerving to see your principal balance grow while your home value perhaps shrinks.

My advice is to HANG ON. You are not alone in this and there will be brighter days ahead. For those of us who have leveraged equity and re-distributed it into liquid, safe, interest bearing side funds, we are experiencing first hand how powerful this concept can be especially as home values decline. Fortunately other sectors of the financial markets are fairing very well. No gloom and doom.

I am here for you should you have any questions.

I appreciate you and I value your business.

Don't know what you've got ... Till it's gone!

Take a second to think about all the information you store on your computer. Ok ... it may take more than a second. In fact, it may take all day and even then you will not have a complete inventory. Office work, research, addresses of friends and family, schoolwork, financial information, thousands of irreplaceable family photos – they all go on your computer. Not to mention the expensive software that runs the entire system!

But what happens when your computer goes on strike...when it just stops working? Do you have a plan to recover the data you need to run your life? Better yet, do you have an up-to-date backup waiting in the wings for just such an emergency? Don't wait until it's too late. Put the following tips to work and you could save hundreds, even thousands of dollars...not to mention a major headache!

Hold On to Those Disks. You know those disks that come with your computer...the ones with all the software on them...the ones you throw in a drawer and forget about? Well – don't. Even though software often comes preloaded and ready to use, those disks and serial numbers are priceless. Keep them in a safe, memorable place and you'll be able to easily reload your software after a crash.

Rule of Thumb. Those little USB flash drives or "thumb drives" that you see everyone carrying around now are an ideal, inexpensive way to backup small files for short periods of time. Whether you're moving information from one computer to another or you want to make sure a critical company report doesn't get lost before the client presentation, these handy devices are well worth the small amount of money you'll spend for 4 GB of peace of mind.

Don't Get Burned ... Do the Burning Instead. Most computers come standard with CD/DVD burners. Contrary to television commercials, you can burn more than just song compilations. Make the most of this device by backing up your important data regularly. Most DVDs can hold 4.7 GB, or you can double the data with double layer DVDs (known as DVD DL) that can hold up to 8.5 GB!

Take it Outside. To backup every last byte of data, add an external hard drive that operates independently of your computer. Products like Seagate's FreeAgent storage devices offer you a variety of options...as well as the ability to access your information even when you're not at home, so you can open a document or even view your family photos from out of town.

Leave Home Without It. For the best level of protection, move data out of the house altogether. Storing your IT off-site protects it from fire, theft, and flooding. And it's not as expensive as you might think. In fact, you can get a ton of space free from services like Yahoo! and AOL. At that price, the only thing you have to lose is your data if you don't back it up!

Once the Damage is Done. If you've already lost your data, you may actually be able to recover it...the cost, however, runs anywhere from the hundreds to the thousands. The best place to start may be the inexpensive options, such as SpinRite for Windows PCs and Alsoft's DiskWarrior for Macs--both of which retail for around $100 or less.

Don't wait until the worst-case scenario happens – act now to protect your important data files.

The genius of the 529 Plan

You'd do anything for your child. And you want your child to have the brightest future imaginable. You probably also know that a college education is more important than ever for a successful financial future. The income disparity between college grads and non-college grads continues to grow, and many jobs that do not require a college education have gone overseas or been replaced by a computer or machine. But it's not cheap - college costs generally inflate at twice the rate of all the other goods and services we pay for.

So what can you do now, to ensure your child has that important college education?

The very best idea is to start saving early, while your children are still young. And as your trusted Mortgage Planner, I can help you look at strategies that will help get that college account kick-started or even completely funded right away. Saving for it may seem overwhelming...yet it doesn't need to be. Here's a game plan to help make sure your college savings plans are right on track.

First, talk with a qualified financial planner about a 529 college savings plan - I would be happy to make a referral if you do not have a great financial planner that you work with presently. 529 plans are offered in most states, allow for gifts from parents and grandparents, and the money invested grows tax-free until withdrawn.

When the time comes to start making withdrawals for college, the growth is then taxed to the student, not to you, the investor - and the benefit is that the student will likely have a much lower tax bracket than you. And here's an interesting idea - when researching 529 plans, be sure to ask your financial planner about investing funds in other states 529 plans. Shop around, as many states provide higher yields - and even if the money is invested in another state's 529 plan, it does not limit where the child can go to college. These accounts can be used to fund any accredited college and most likely, even a graduate school.

Another creative idea is a "pre-paid tuition" plan. Pre-paid tuition plans allow individuals to lock in future college costs at today's prices and are designed to increase in value at the same rate as tuition inflation. For example, if a parent wanted to invest in a newborn's college fund today and pre-pay the entire cost based on today's cost, the fund is guaranteed to cover the cost of college 18 years from now when the child is ready for college. Or if the investment is enough to cover only half of the education, the fund guarantees to cover half of the tuition costs at that time. The plan does have some restrictions, so be sure to research this option carefully with your financial planner before making the investment.

Student loans are also an option, but watch carefully what rates you are paying and shop around. Student loans can be very costly and many have limits as to what a child or parent can borrow. For example, a Stafford loan will only lend a maximum loan amount of $3,500 to a freshman and $5,500 to a senior ... but with the average public in state college costing nearly $13,000 per year, the difference may have to come from a private loan, these rates can range from 7.25% - 18.00%.

A far better alternative may be a home equity line of credit, or even a refinance of your first mortgage. The interest rate will likely be cheaper, and may even be tax deductible. Even with the recent climb in interest rates; exploring your options is important to ensure you are making the best financial decision for your child's education.

For more information about the above options simply click on the following link: www.savingforcollege.com - and if you want to discuss planning for college further, please contact me. We'll look at your situation, decide if a mortgage strategy could work for you, and consult with a great Financial Planner to help put all the pieces together.

Not to be an alarmist ...

Did you know that home security systems may actually attract burglars? Shocking, but true.


Each year, Americans spend more than $18 Billion on professional alarm systems. Unfortunately, according to security consultant Walter Shaw, some of those systems may actually be attracting burglars. Shaw, a former burglar, contends that when thieves see a house with a security system sign on it, they know it typically means that the house actually has something of value inside...which makes it a better target for them to consider breaking into.

In addition, Shaw notes that determined thieves can actually use those security system signs to their advantage. First, if the sign displays the name of the alarm system company, a thief may be able to use that information to research the system and figure out how to bypass it. Second, thieves may decide to test the system. By tripping the alarm on purpose, burglars can gain a better idea of how long they'll have to get in and get out before the police arrive!

So do alarm systems help at all?

The answer, thankfully, is YES! A recent study indicated that alarm systems are still the single most effective way to reduce the risk of burglary. Interestingly, some preventive measures such as deadbolts do little to dissuade burglars, since these measures cannot be seen until a burglar has already chosen a house...at which point they tend to pursue it and find a way in, regardless of the deadbolts.

Here's how to best protect your home.

First, make sure any alarm signs posted on or around your home are generic - without the name of the security company. In addition, you might want to consider adding security cameras-or even fake cameras-around your entrances and windows. No thief wants to be caught on tape...even if they're wearing a mask. Also, make sure that bushes and branches are cleared away from windows and entrances.

Stuck in the middle with you...

Those infamous cell phone contracts can make anyone feel like they are stuck for life, caught in a nasty web of legal jargon with no way out. And with many service providers offering tasty incentives coupled with better than ever low price calling plans, it is no wonder that many people want to jump ship from one provider and start sailing with a new one. But with pricey early termination fees that can easily be up to $250 or more, customers are virtually held hostage, locked up in contracts that sometimes last for years.

But now - there may be a solution that sets you free!

Rather than waiting for a contract to expire, there's a new alternative that allows cell phone customers to avoid the early termination fee and keep their cell phone numbers. Here's how it works.

You can actually sell the balance of your cell phone contract to someone else who wishes to take it over...and more people are opting to do this every single day. As the seller, you get out of your contract with no termination fees and are free to move on. The buyer of your contract gets a short term cell phone plan with no activation fee! In some cases, the seller sweetens the pot further by throwing in their existing phone for free, or even offering a cash incentive to the buyer.

Simply logon to either www.celltradeusa.com or www.cellswapper.com, enter all of the information about the contract you want to get out of, then simply wait for someone to jump on the deal and offer to take over your contract. Once someone shows interest, the service provider is contacted and the buyer needs to obtain normal credit approval to take over the plan. As long as the buyer checks out, the service provider will make the change. The cost to the seller for this service ranges from $0 - $19.99 but in comparison to an early termination fee, it's pretty minimal.

In some cases, cell phone service providers may amend your contract if you can prove that a life change has happened that no longer makes their service usable, such as a move to an area that is not covered within their network. But if you just want out...try selling your contract, and be set free!