Getting Started Finance

Stocks vs. Real Estate

2007-04-23T07:16:00.000-07:00

Check out this article on CNN/Money.com

The column begs the question: is now a good time to buy real estate? The best time to purchase an asset, any asset, is when prices are depressed (part of the whole “buy low sell high” theory that Wall Street seems to forget from time to time). If you subscribe to this theory, anyone who has not been living under a rock recognizes that real estate prices, regardless of geographic issues, have declined in the last 18 months. Interest rates, while not at their record lows from 2-3 year ago, are in the low 6% range, which comparatively speaking is pretty good.

Now might be a great time for first time home buyers, some freshly out of college, to think about stepping into the void. Supply is fairly robust so you can take your pick, not to mention a lot of sellers are looking for the first available buyer so negotiations can be made to entice the sale.

But for those fresh out of college or new home buyers, cash for down payment (which contrary to the mortgage loan industry of the last few years IS a necessity) can be in short supply. Now would be a great time to go back to mom and dad and ask for a short term loan. Mom and dad may not be too keen on the idea, but the idea of purchasing an asset at a low price with future price appreciation potential, could be an attractive idea to them. Lots of baby boomer parents are flush with cash at the moment and looking for investment ideas. The idea of helping their children get their piece of the “American dream” plus purchasing an asset that should appreciate over time is a worthwhile goal.

For Sale

2007-02-27T12:34:00.000-08:00

1999 35^th Anniversary Edition Ford Mustang!

4.6L V8. Power everything, moonroof, 4 wheel ABS, driver & passenger SRS, Automatic. 50,000 miles. White, garage kept and a total blast to drive (unless you’re in the snow wherein this vehicle could be referred to as “the death mobile”).

Know anyone who wants to purchase my Mustang? With twins coming in late June, there isn’t enough room in the backseat to house the twins. So like all responsible parents we’re upgrading “the fleet” and plan to get rid of the Mustang and pick up something more in line with having two kids: a minivan.

I can’t believe I just wrote that. My wife can’t believe it either. We’re shocked. We’re dismayed. We’re becoming everything we hate about suburban America. We’ll no longer be referred to as “dinks” (dual income no kids).

Now we’ll be “parents”.

Oh the humanity!

Anyway, the whole automobile purchasing scene is a nightmare and makes my skin crawl so the least time in the dealership for me, the better. I emailed my local Honda dealership (we’re getting an Odyssey minivan) and got their best price for the new vehicle. Not bad.

On a whim, I took the Mustang in there to see what they would give me for it. I have to say, I was shocked and amazed at what they offered me for it. It was $1,500 higher than what NADA.com says its worth. Not bad I said. Next stop, Carmax to see what they’ll but it for.

After that, I may just advertise it myself on autotrader.com. If I can sell it in 6 weeks or less, great. If not, then I can fall back on the dealership or Carmax. Either way, buh bye Mustang and hello minivan.

What is this world coming to?!

1 in 7 Americans Are Asking For Trouble!

2007-02-21T09:45:00.000-08:00

I always knew people, despite their age, where digging themselves into serious financial trouble by depending too much on credit cards. Well, I was proven RIGHT with the release of a study by Experian that shows 1 in 7 Americans have 10 or more credit cards. That's NUTS! Click HERE to read about it.

The Buzz Is Growing!

2007-01-04T05:10:00.000-08:00

A couple of good friends in the media have recently written about Getting Started: The Financial Guide For A Younger Generation. I thought you would like to check out what was said.

From Kara McGuire at the Minneapolis Star Tribune, here is her article titled "No Magic Formula"

From Eileen Alt Powell at The Associated Press, here is her article titled "Financial Fitness Starts Early"

Budgeting In 2007

2006-12-29T05:02:00.000-08:00

Budgeting has always been something that people look at as a complicated chore or an activity for people with higher incomes. Nothing can be further from the truth. Budgeting is important for everyone regardless of income. How will you know what you can spend on that new Sony Flat Screen HDTV if you have not determined what your budget is for it?

Here is my challenge for you. Try to set up your budget early in 2007 and revisit it it monthly to make sure you are holding to the budget. It can really help you in the long run.

Also, be sure to check out this great article by Kara McGuire at the Minneapolis Star Tribune on budgeting.

A New Year's Resolution

2006-12-28T06:36:00.000-08:00

For many people, 2007 brings hope that they will either be able to buy the home of their dreams or sell their existing home in the hopes of upgrading. Either way, 2006 was a rough year for the real estate market and we are all hoping 2007 will be better.

In my spare time when I am not trying to help young professionals address their most pressing financial dilemmas, I am reading. Take a look at this article for a housing forecast.

While you're reading, take a gander at this article discussing the billion dollar scandal involving Fannie Mae.

I Would Make A Terrible Burglar!

2006-12-19T06:24:00.001-08:00

My wife and I were working outside this weekend removing leaves from our yard, when we discovered that we had managed to lock ourselves out of the house. Our neighbors who had an extra key were all gone for the weekend, our parents (who live close by) were also out of town for the weekend. We didn’t even have a cellphone with us, with which to call our dog walker who has an extra key. We searched in vain for an unlocked window, and even tried to pick a few of the doors. No such luck. We ended up deciding to break through the French doors that lead to the deck. No problem I figured; just take the crowbar and swash a little section in the French doors (which we had just one week prior agreed to have Sam the window man replace) and unlock it from the inside.

I learned a few things about French doors. First, its not multiple pieces of glass in the door. Its one single piece and when you smash one side, the whole thing shatters. Second thing I learned: double paned windows mean if you are trying to break and enter, you get to break twice as much glass.

The third thing I learned: cleaning up is an unbelieveable pain. We had glass EVERYWHERE in the remote vicinity to the French doors. We were sweeping and vacuuming up for at least an hour. Then I got to take card board and duct tape and seal the door.

Thank goodness Sam the window man is coming to replace the French doors. I didn’t mind breaking that door too much, knowing we had already paid for the new one. But it was not how I wanted to spend my Saturday afternoon.

On another note, my good friend and well-known columnist, Kim Lankford of Kiplinger's Personal Finance magazine responded to a great reader question that you should check out!

Good Job, Boy Scouts!

2006-12-06T13:22:00.000-08:00

The Boy Scouts do a tremendous civic activity each autumn known as "Scouting for Food". One Saturday in late October they drop a plastic bag off in neighborhoods all over the

U.S.

The bag states that this effort is to raise needed canned goods and other non-perishables for local food banks and other community organizations that help feed those less fortunate. The following Saturday they come back and collect the bags of food that citizens have left on their front porches. It’s a tremendous undertaking and it raises a lot of food for a great cause. I can’t think of a better community project that allows citizens to clean out their pantries with some unused food and give it to those in need. My hat’s off to the Boy Scouts and those who participated this year. So when you see the plastic bag, don’t recycle it. Fill it with food that you haven’t used in your pantry and make a difference in your local community. It’s win-win for everyone involved.

A Day At The Game!

2006-11-27T08:22:00.000-08:00

A day at the ball game (not that this has been over done or anything!)

Travel time to and from Virginia Tech: 8 hours

Cost of the dog walker coming twice during the day to feed & walk the dogs: $30

Two pit stops for gasoline: Cost $60

Game day parking at the garage: $15

Two tickets on the 40 yard line: $80

Seeing your spouse at their alma mater cheering their team to a big win: Priceless

Go Hokies!

How About Those Gas Prices!!!!

2006-11-17T15:02:00.000-08:00

I know the election’s are just over and some folks are licking their wounds while others are dancing in the streets, but I was struck by something else yesterday on my way home from the office. The price of gas. Or more importantly, what it cost ME to fill up my car. Gas has fallen in my neck of the woods by over $1 in the past 6 weeks. Its incredible. I remember when it cost me almost $50 to fill up the tank of my little Mustang GT (ok, its my wife’s car, she just lets me drive it every now and then) and now costs about $30. What a difference a few months makes. Did the Saudi’s start to pump more? Did the Chinese use less? Did the big oil companies make so much money in the first 9 months of the year that they are giving all of us an early Christmas present? What gives? Lots of economic and political factors I’m sure, but I don’t really care. It costs me $20 less per week to fill up my tank. Combined with the other car in my house, that saves us almost $1,000 a year! That’s real money to us right now. So I don’t really care who won the election (or who lost), all I know is it costs a bit less every week to operate my household. I can live with that.

Welcome!

2006-11-08T08:25:00.000-08:00

Well, I am officially kicking-off the Getting Started Finance blog. My hope is that you will find this blog as a helpful resource that will answer many of your personal finance querstions. Getting Started: The Financial Guide For A Younger Generation is my new book that was just released from Larstan Publishing. The book is a unique resource of information on the personal financial issues that confront younger Americans everyday - whether it be debt, savings, finance and marriage, etc.

Sure there are other books on the market that cover some of these same issues, but there is one MAJOR difference. I am YOUR age! I am a 32 year old who has or is going through many of the same challenges you are facing financially. The difference is that I am a Certified Financial Planner and spend my time working with people like us to help them address their concerns. The book is an extension of what I do. That is talk to people in their 20's and 30's about finance in a casual way. Like you, I could not stand reading a book that sounded like a lecture from my parents. Instead, I turned to information that was presented by people who understand how to communicate.

I want to hear from you. So visit the book's website at www.GettingStartedFinance.com. You will be able to listen to the Getting Started Podcast and much more.

Check back often as I will be posting on a regular basis!