European package – if you can’t fix it, smother it with money. The IMF, the ECB, the member states of the European Union are all throwing money at the problem of the miscreant states of southern Europe. The package of loan guarantees, liquidity tools, austerity packages and such that was assembled is supposed to buy the PIIGS enough time to tighten their belts and learn to live within their means. Well, not really within their means, but at least close to their means. Perennial deficits of up to 3% of GDP are perfectly okay with the ECB and EU. We can’t recall a single European government that has run a surplus in their fiscal budget lately, maybe the Norwegians during the height of their energy boom. (Keynes is probably rolling in his grave.)
European Financial Contagion
We have been asked by several of our advisors why this European Financial Contagion is so important and we are stumped. It shouldn’t be all that big a deal. Whether the Euro stays or goes won’t matter much in ten years time, unless it is still causing trouble for the member states then, too. We have beaten to death the idea that Greece doesn’t really matter on the world economic stage or that Portugal doesn’t matter or that Spain doesn’t really matter all that much. Read more
Estate Planning: Preparing for the expected and unexpected
Jeffrey P. Hall, PLLC
Attorney at Law
presents
Estate Planning: Preparing for the expected and unexpected
This hour-long educational seminar discusses the planning tools available to ensure that:
- your family is taken care of
- your wishes are carried out; and
- your estate is properly passed on.
Dates: Thursday, May 13 and Thursday, May 20
Times: 6 P.M. – 7 P.M.
Location: 3115 South Price Road, Chandler, AZ 85248
Light refreshments will be served. Discussion will include topics such as wills, trusts, healthcare decision-making documents, and powers of attorney. Replace your questions, concerns and anxiety about the future with the peace of mind that comes from an understanding of the tools that empower you to plan for your family. Please call ahead to reserve a spot as seating is limited.
For more information visit our Web site at:
www.HallLegalServices.com
Five Things Buyers Should Avoid Before Closing on a Home
Nothing is certain in the home-buying process until the keys are in your hand. There are still hurdles to jump before it’s yours, and your actions from start to closing can create slowdowns and even halt the sale. If you’re thinking of buying a home soon, here are the top five things not to do before closing on a home:
1. Don’t make a major purchase. While you might be imagining a new car to fit nicely in your garage, hold off. If you’re depending on a mortgage to move in, it’d be smart to wait until after closing for that car. An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.
2. Don’t change jobs unless it’s necessary. Lenders like to see a consistent job history. They aren’t usually as nervous if you change jobs within the same field, but it’s better to stay put until the new home is yours.
3. Don’t let your emotions take over. Keep a cool head during the entire home-buying process, especially during and after a home inspection. Be realistic. No home is perfect, especially older homes. Decide what type of repairs you can realistically tackle and then stick with the decision.
4. Don’t become best friends with the seller. It’s important to be friendly, but don’t get into too many long discussions with the sellers, because personality conflicts often cloud judgments. Remember, this is their home. A casual statement about ugly carpet might be enough to keep the seller from negotiating with you about repairs or other issues that crop up.
5. Don’t ignore lender requirements. Know what is expected of you and take care of it. That’s something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible — moving into a new home depends on it.
For more information on how you can make the buying process a seamless transaction, contact me today.
Joan Byrnes, SRES
Realty One Group
joan_byrnesmartin@msn.com
www.SunLakesLiving.com
Investment Risk
Count Your Blessings
Let’s talk about risk, which is much in the news these days. What is risk? For many of us, risk is standard deviation, beta, tracking error. For most people, risk is the chance of losing money. There is a debate these days about how much risk we should be allowed to take and what risks we should not be allowed to take. That is at the heart of the financial re-regulation bill before Congress (the opposite of progress). Who can take what risks has been a bedeviling question for regulators since we first started modern finance 50 years ago. Read more
Happy Day-After-Tax Day
Tax day comes and tax day goes with nary a whimper from the citizenry. This is the way it works in the modern economy. Were it not for the anesthetic of regular withholding the situation might be a lot different. Think how bad things would be if each of us had to put aside sufficient funds to meet our tax liability each year. If you had to set aside 25% of your ready cash for the day, once a year when you had to write that big fat check to the government, then each pay day or each month when you went through the exercise you’d be reminded just how little you get for your money. The resentment would undoubtedly be much higher among the somewhat more than half of Americans who actually pay taxes toward the other half who generally receive more in government largesse than they pay in taxes. The resentment toward the government itself for its profligacy, waste and abuse would likely be higher, too. We’d have more limited government is our guess, but we could be wrong. Maybe a lot of people would gladly put aside 25% of their incomes Read more