Month: August 2023

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A new bill introduced today by Congresswoman Maxine Waters (D-CA) aims to make sweeping changes to the Fair Credit Reporting Act (FCRA).

In a news release, she noted that credit reports have become far too important to contain widespread errors and inaccuracies, given the fact that they’re used to extend mortgages and homeowners insurance, and even determine whether someone is hired or not.

The proposal, known as the “Fair Credit Reporting Improvement Act of 2014,” could have major implications for former and prospective homeowners alike.

Restoring Credit for Mortgage Victims

For one, it would require the credit reporting agencies to remove any adverse information related to mortgage loans that were later found to be deceptive, abusive, fraudulent, illegal, or unfair.

That’s a pretty broad definition, but I’m assuming there are plenty of borrowers out there with checkered credit histories thanks to bad loans they probably should have never wound up with.

So if a borrower had their property foreclosed on thanks to a predatory lender, they could get that nasty foreclosure mark off their credit report. And ideally the late payments leading up to the foreclosure (or short sale) as well.

This would greatly improve the credit scores of countless borrowers and make them eligible for a subsequent mortgage a whole lot sooner.

Sure, some borrowers might have been granted relief from lenders, but if their credit report is still full of delinquencies, their chances of getting another mortgage are low to nil.

The same goes for those who received assistance through programs like HAMP, only to find that lenders continued to report their payments as delinquent or “incomplete.”

Foreclosure Falls Off a Credit Report After Just Four Years?

Waters’ bill would also shorten the amount of time negative information remains on credit reports by reducing such periods by three years.

She noted that the predictive value of most negative information on credit reports diminishes after just two years, yet remains for as long as seven or 10 years.

In places like Sweden and Germany, max reporting periods are three and four years, respectively.

As it stands now, foreclosures remain on credit reports for seven years. So if I’m interpreting her new bill correctly, a foreclosure will drop off a credit report after just four years.

The waiting period to buy a home after foreclosure also happens to be seven years, so it’s unclear what effect this legislation would have if foreclosure information couldn’t be accessed after four years.

Additionally, lenders may not be comfortable extending new home loans to previously foreclosed borrowers so soon, which could create a bit of headwind for this legislation.

Her bill would also remove adverse information related to fully paid or settled debt, including medical collections, which is consistent with the latest FICO and VantageScore models.

That could potentially make it easier to qualify for a mortgage seeing that applicants’ credit scores would likely be higher.

Asks FHFA to Consider Alternatives to FICO Score

Speaking of scoring models, Waters also wants the FHFA to consider alternative credit score products that determine eligibility for Fannie Mae and Freddie Mac loans.

At the moment, it’s all about FICO. Perhaps VantageScore could eventually be used in the mortgage industry as well.

There’s a lot more to the bill, which is basically a complete overhaul of the antiquated FCRA that can be read here.

Among other things, it prohibits the use of disputed information in credit reports and scores, lengthens the mortgage shopping window to 120 days (for it to count as just a single credit inquiry), and restricts the practice of using credit reports to screen job applicants.

Additionally, it would limit the cost of a credit score to $10, indexed for inflation, and require the credit reporting agencies to provide free annual credit scores, not just free credit reports.

Obviously it sounds super ambitious, so the chances of it passing might be slim. But a pared down version could potentially pass. Stay tuned.

(photo: Becca Peterson)

Source: thetruthaboutmortgage.com

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The decision to allow the ICE – Black Knight merger to proceed announces the digital integration of the real estate value chain anticipated for over 25 years. Digitization redraws industry boundaries and changes how the value of information is expressed, enriched and exchanged. The capital, capability and content are present to make all real estate markets smarter, faster, safer and connected. Consumers, communities and taxpayers are major beneficiaries.

Residential property transactions are manufactured with data components assembled from disconnected and diverse sources.  Many industries began to deploy electronic supply chains in the 1980’s. Real estate still relies on a “system” unable to integrate production across the silos of media, brokerage, lending, insurance and trading. The result is higher costs, lower productivity, unmeasured quality, and systemic exposure as government monopolies take most of the risk and make most of the money. The GSE’s $8B profit in 2Q could buy most of the brokerage industry.

Technology and the trust model

Real estate is too vital to our economy to be so financially concentrated and functionally outdated. Technology hasn’t been the barrier since 1998 when Equifax, and later other firms, developed systems to secure complex, multi-party transactions over the Internet.  Lenders began to define the “trust model” of standards, contracts and shared services necessary to achieve cross industry interoperability. 

Conflicts among special interests and then the GFC prevented full adoption.  Low interest rates and purchases of Agency securities helped to foster a – don’t fix what’s not broken mindset. The reckoning has brought staff reductions, loan repurchases, higher reserves and mass consolidation.

Behind the headlines of locked-in supply and tighter credit is the start of a new real estate cycle driven by the urbanization of the suburbs. Information deficits are a feature of secular shifts until new insights fill the knowledge gaps.  Geographically aware marketplaces that link listings, lending and liquidity will unlock actionable information.

ICE is best known as the owner of global marketplaces including the New York Stock Exchange. It entered real estate in 2012 after buying DebtMarket, an exchange for distressed home debt. A sequence of acquisitions followed that targeted the control points of a next generation operating system. 

MERS provided a trusted “golden record” of the owner of the mortgage loan asset, Simplifile reaches the county recording end-points, IDC integrated $5.2B of data services, Ellie Mae added $11B of origination processing, risQ made location risk visible and now Black Knight delivers another $11B of MLS capability, public data and consumer payments.  This massive bet on a digital future delivers trusted connections to verify parts (data), eliminates rework, assures quality and collapses the cycle time of a loan.

The power of innovation

ICE’s network, data and trading system architecture can power innovation to transform fixed income capital markets.  A “Housing Capital Cloud” would unify the fragmented ecosystem to package, evaluate and distribute information based “durable goods.” Lenders should expect to redesign workflows and business rules to determine if a loan is “Fit 4 Sale.”

Homebuyers and other investors will gain better views of risk and return as hyper local “Forward” projections inform valuations and pricing for a range of assets. A “Lens” that creates a shared understanding of all property sub-markets may enable the private and public sectors to effectively target capital that meets the challenges of housing affordability, struggling downtowns, fiscal imbalances and social inequities that unevenly affect every community.      

The basis of competition is shifting as ICE, CoStar, Zillow, and the GSEs after release, contend for consumer attention, top producer loyalty and data supremacy.  ICE has previewed a Consumer Engagement Suite which could deliver a list-to-loan-to-servicing experience.  Realtors have a structural advantage as the listing event is the signal to downstream transactions.  Will they ever share in the value of their data to profit beyond the first point of sale?

ICE promises a systemwide upgrade where everyone wins except the unstable status quo. Digitization will enable industry efficiency, new choices for consumers and communities, reliable liquidity for capital markets and risk aware pricing of guarantees.  The “on platform” first movers will grow profit margins, gain market share and build brand equity by controlling their digital rights, adopting interoperability standards and creating greater value from local networks. Success means zero defect loans, costing $2K to manufacture, for 5M new homes, built in the right places.

This merger means modernization that advances real estate toward an adaptive, sustainable and connected future.  

Stuart McFarland is the former EVP Operations and CFO at Fannie Mae, EVP General Manager at GE Capital Mortgage  Services, and CEO at GE Capital Asset Management.

Source: housingwire.com

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Every time I get my hair cut, I’m faced with a dilemma — should I tip the barber or not? I usually get my hair cut in a small-town shop. I tip $2 on a $12 haircut. If I get to hear stories about Vietnam or histrionic political rants, I tip $3, even if I don’t agree with the barber’s viewpoints. (I tip because I’ve been entertained.) Sometimes, if I don’t have enough cash, I don’t leave a anything at all. Are these tips appropriate?

What about when I pick up Chinese takeout? Should I have tipped the guys who delivered our new gas range last fall? What about a hotel bellhop? A parking valet? Out of curiosity, I did some research on tipping practices in the United States. There’s actually significant disagreement about how much to tip for even common services.

For example, you know you should tip your waitress. But how much should you leave? Some people claim that 10% is adequate. Others claim that 20% is standard. But I suspect that most of us learned to tip 15%, and to give more for exceptional service. (The wikipedia entry on tipping currently contains the bizarre claim that “18% is generally accepted as a standard tip for good service”.) Which amount is correct?

The concern around tipping stems from the need to get it right — offer too little, and you run the risk of offending someone; offer too much, and you needlessly impact your budget. Plus, there’s actually significant disagreement about how much to tip for even common services.

After browsing dozens of pages, I drafted the following guide. The amounts listed are based on averages or on consensus, when possible.

“Tip: (noun) — a small present of money given directly to someone for performing a service or menial task; gratuity” — Dictionary.com

Food Service

It’s common knowledge that you should tip your waitress. But how much should you leave?

Some people claim that 10 percent is adequate; others believe that 20 percent is standard. But a majority of us learned to tip 15 percent, and to give more for exceptional service. (The Wikipedia entry on tipping contains the rather bizarre statement that “18% is generally accepted as a standard tip for good service.”) So which is it?

Service

Tip Suggestion

Comment

Barista

None

Many people suggest putting coins in the tip jar.

Bartender

15% of total bill or $1/drink

Pre-tip for better service

Delivery Person (including pizza)

10%

$2 minimum

Maitre d’

$5

(… up to $25 for special effort)

Takeout

None

None

Waiter

15% for adequate service

20% for exceptional service. For poor service, leave 10% or less.

General holiday tipping guidelines

  • Holiday tipping is never required. Even when it’s the social norm, you shouldn’t tip if you can’t afford it or you don’t feel the person deserves it.
  • Tipping tends to be more common (and on a larger scale) in big cities than in small towns. The best way to determine the etiquette in your area is to ask around.
  • In general, you should consider giving a holiday tip to the folks who take care of your home and family, especially those you see often. The more often you see someone and the longer you’ve known them, the more you should tip. (Someone who works in your home regularly — such as a housekeeper — usually expects a tip.)
  • For personal services like manicures, massages, pet grooming, and fitness training, tip up to the cost of one session, but only if you see the same person regularly. For example, if you get a $60 massage every six weeks, your holiday tip should be about $60.
  • Public servants are not allowed to accept cash tips in the U.S., but it’s acceptable to give a non-cash gift of up to $20. You might give a plate of cookies to your mail carrier, for example, or a book or a gift certificate to your child’s teacher.
  • When you give a tip, include a card or a hand-written note thanking the person for their service.
  • If you tip cash, crisp new bills make a better impression than old wrinkly ones.

Home Care Service

Here’s a list of people who often receive holiday tips and what they typically receive:

Service

Tip Suggestion

Comment

Babysitter or Nanny

One week’s pay

None

Housekeeper

One week’s pay

None

Building Superintendent

$20 – $100

It varies. Some people think this helps to keep a harmonious relationship with the super.

Doorman

Holiday gift

Bottle of wine

Furniture Deliverer

$5 – $20

It varies. Some people recommend offering cold drinks.

Garbage Collector

$15

(… up to $25 for special effort)

Gardener

One week’s pay

None

Mail Carrier

$15

(… up to $20 non-cash.)

Newspaper Delivery Person

$15 to $25

(… up to $25 for exceptional service.)

Personal Care

Service

Tip Suggestion

Comment

Babysitter

One week’s pay

It varies. Don’t pay this for one-time babysitting.

Barber or Hairstylist

10-15% or 15-20%

Some people recommend $5 to each person who shampoos or blow-dries your hair, and others recommend up to the cost of one visit for the holidays.

Coat checker

$1 per coat

It varies. Some people recommend $2 to $5 upon retrieval.

Home Health Employee, Private Nurse or Personal Caregiver

(… up to a week’s salary)

Check with the agency as some prohibit gifts.

Manicurist

15%

None

Masseuse

10%-15%

None

Nanny

One week’s pay

None

Personal Trainer or Yoga Instructor

$20-$50

Tip discreetly.

Shoe Shiner

$2 or $3

None

Spa Service

15-20%

None

Office Service

Service

Tip Suggestion

Comment

Janitor

$15-$25

None

Parking Attendant

$15-$25

None

Travel

Service

Tip Suggestion

Comment

Bus Driver (not mass transit)

$1-$2

(… if he handles luggage.)

Cab Driver

10%

($2-$5 minimum)

Chauffer

10%-15%

None.

Gas Station Attendant

None

(or $2 -$4 – there’s no agreement on tips).

Porter or Skycap

$1 per bag

(… $2 for heavy items, if the porter brings luggage to counter)

Hotel Staff

Service

Tip Suggestion

Comment

Bellman or Porter

$1-$2 per bag, $5 minimum

Or $1 per bag, $2 minimum

Concierge

$5

(… up to $20 for something exceptional; nothing for directions.)

Housekeeper

$2-$5 per night, paid daily or as a lump sum at checkout

Most suggest you tip daily.

Parking Valet

$2-$5 paid when your car is retrieved

Some say to pay when it’s parked too.

Room Service

$5 minimum

(unless the gratuity is included in check)

Most of these relate to holiday tipping, but some suggestions are appropriate any time of year. Of course, giving a tip is an individual decision. J.D. Roth used to tip the barber extra if he got to hear an entertaining story about Vietnam or histrionic political rants. What influences you to give a larger or smaller tip? Do you have any suggestions to add?

Source: getrichslowly.org

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Here’s one for you: How many fintech companies does it take to reduce the cost to originate a loan? There’s no great punchline to throw in here — only the sobering fact that it cost a record high of $13,171 to originate a loan in the first quarter of 2023, according to Fannie Mae’s recent lender sentiment survey.

Still, the FHFA set out to answer this question by gathering more than 60 companies together in Washington, D.C. for the inaugural Velocity TechSprint in July. This hackathon of sorts had a single goal: determine the best solution to effectively use data to reduce loan cost and make lending more attainable and fair for consumers.

I was one of 80 participants assembled together in 10 different teams. Each team contained a cross section of lenders, fintechs, consultants and others united by a common goal. We had three days to engineer a viable solution to some of the biggest challenges in lending — oh, and boil down those three days of solutioning into a five-minute pitch in front of industry judges. No pressure there.

This was very much an exercise for optimists, innovators and maybe even dreamers. Loan costs have risen every quarter since the first of 2020. So what could really be done in three days that hasn’t been tried in three years? We have watched the record rise and fall of investment in technology solutions over the past few years amidst record loan volumes, many of which promised to automate a better borrower experience and deliver shorter loan closing times. But the stubborn fact remains that transformative change has yet to materialize.

Still, that evidence made the idea of locking arms with industry leaders and working with competitors even more compelling. People arrived ready to ideate, compete and cooperate.

A few things became apparent within our team on the first day of working together, and we were ready to attack every aspect of the loan lifecycle to make it better. From consumer financial readiness to loan servicing years after close, everything was on the table. Our knowledge of how the whole thing fits together was exciting. To make a big impact, we have to have a big solution, right?

It wasn’t until the second day that the truth finally became clear: We only had time to flesh out and describe one good idea, not the more than five we had packaged into one big solution. As the team debated and consumed an intense amount of coffee, it became clear that every solution idea we wanted to build upon was lacking one key component that had yet to be solved for the industry. There was a lack of data trust.

Lenders and other stakeholders spend countless hours checking, verifying, rechecking and reverifying the same data over and over again. That data usually comes in the form of a document, which gets sent around to various stakeholders, sometimes with accompanying structured data, sometimes not. Data gets re-extracted over and over again. There’s an industry-wide inability to easily understand whether the data or document has changed since the last time it was checked, and to understand if that data is from the original, direct source.

The mortgage industry loves using the phrase “checking the checker,” because this is common practice even when GSE automated underwriting systems are fully in use. Our team set out to solve this data trust issue and give lenders a way to check an authoritative source to verify if data has changed since last delivery, instead of having to reverify all the data from scratch again.

It turns out we were not the only team that arrived at this conclusion — at least half of the pitches featured some aspect of data trust. Whether the focus was on providing better ways for consumers to control and securely share their own financial data, or on enabling lenders to more efficiently consume new alternative sources of credit data, data trust was a central theme.

There were some strong cases made for the use of blockchain and NFTs to provide a tokenized way of securely sharing and trusting consumer data, but in the end it wasn’t the lack of technology that was identified as the biggest speed bump, it was the lack of standardization and central authority.

Which leads us to one of the most surprising themes of the week: fintechs asking for government involvement. There seemed to be a common realization that a healthy cooperation between the public and private sector was needed to create a major change to the status quo.

Yes, I realize that the event was hosted by the FHFA, so maybe this isn’t surprising. The cold hard truth is this: The need for centralized data trust in an ecosystem as complex and regulated as the mortgage industry is beyond what any one innovator can bring about quickly. Some sprint teams proposed cooperatives with public and private organizations, while others asked for outright government agency and mandates.

I was reminded of the recent plea from generative AI companies asking for government regulation. Interestingly enough, reducing the risk of bias in generative AI models comes down to data trust as well, so it appears we are onto something here.

I came away from the event encouraged once again in the mortgage industry’s willingness to work together to solve big problems, but the real test is what happens next.

Source: housingwire.com

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Social Security Disability Insurance (SSDI) isn’t the only benefit you can claim if you have a disability. You can qualify for other benefits while receiving SSDI, including Supplemental Security Income, Medicare, Medicaid, private and employer disability insurance, disability benefits from the Department of Veterans Affairs (VA), food and heating assistance and more.

Other federal programs

Supplemental Security Income

Supplemental Security Income (SSI) is a Social Security Administration (SSA) benefit program that provides a financial benefit to adults and children with disabilities and nondisabled adults older than 65 with limited income and resources

. Many people who receive SSDI are also eligible to receive SSI payments.

Medicare

Receiving SSDI makes you eligible for Medicare. There are a few exceptions, but typically, a 24-month waiting period for Medicare starts when you first receive SSDI

.

Medicaid

Medicaid is a health care program that provides medical coverage to low-income adults, children, older adults, pregnant people, and people with disabilities. The program is funded jointly by state and federal governments and administered by individual states.

If you receive SSI, you may automatically be eligible for Medicaid. In many states, the SSI application is also a Medicaid application, but in some states, you may have to apply separately for Medicaid and SSI.

Food and energy benefits

If your income is limited, you may be eligible for benefits that help pay for necessities like food and heat. These include:

  • Supplemental Nutrition Assistance Program. SNAP benefits supplement the cost of groceries for low-income families. These benefits are disbursed on an electronic benefits transfer (EBT) card that works like a debit card in authorized food stores. Those receiving SSDI or SSI may also be eligible to receive SNAP.

  • Low Income Home Energy Assistance Program. This federally funded program subsidizes heating, cooling and other energy costs. If you receive certain benefits, including SNAP and SSI, you may be automatically eligible for LIHEAP.

Veteran benefits

If you’re a disabled veteran, you may qualify for a Veterans Affairs disability benefit. The amount you receive depends on how severe your disability is and whether you have dependents. VA disability and SSDI are not affected by one another, and you may be able to receive both benefits.

Nongovernment benefits

Private insurance benefits

If you bought disability insurance from a private insurer before becoming disabled, you may be eligible for monthly payments of a certain percentage of your wages. Private insurance payments don’t affect your SSDI; you can receive both benefits.

Employer-provided benefits

  • Workers’ compensation. Most businesses are required to provide some wage replacement, medical treatment and disability compensation if you become disabled because of something that happened while working. Receiving workers’ compensation will only reduce your Social Security disability payments if the combined amount of these benefits is more than 80% of your average earnings before you became disabled

    .

  • Disability insurance. Many employers in the private sector offer workers short- or long-term disability insurance. These plans can pay a percentage of your salary if your disability prevents you from working. Short-term plans typically pay for three months to a year, while long-term policies can pay from 90 days to years or even for life.

  • Government employees. Government and civil service positions may also offer disability insurance. The Civil Service Retirement System (CSRS) covers most civilian federal employees, providing disability, retirement and survivor benefits. State governments also may provide disability benefits for their employees.

Tax benefits

People with disabilities may be eligible for certain tax breaks and benefits:

  • Reduced or waived income tax on your SSDI income. If you don’t have other substantial income besides your SSDI and your total provisional income totals less than $25,000 annually (or less than $32,000 for joint filers), you won’t owe any income tax on your SSDI. If you exceed these limits, you’ll still only owe income tax on up to 85% of your SSDI, depending on your income. SSI benefits are not taxable.

  • Earned income tax credit. The EITC is a tax break for low-income families and individuals (including those with disabilities). This credit can reduce what you owe in income taxes or increase your refund amount. SSI, SSDI and military disability pensions don’t count toward your income when you claim an EITC

    .

  • Extra tax exemptions or deductions. The IRS offers an increased standard deduction for those who are legally blind and other tax breaks for those with physical or mental disabilities.

How to increase your SSDI benefit

There are a few ways to increase your SSDI benefit:

  • Your spouse, minor child or adult child, who became disabled before age 22 may be eligible to receive benefits on your record, which increases your total family income. You may also qualify for survivor’s benefits on a family member’s record if your eligible spouse, dependent parent or child has died.

  • Request to have your benefit recalculated if you feel the amount of your SSDI is incorrect and the SSA didn’t include all your income in its calculations.

Frequently asked questions

How long will it take to begin receiving my SSDI benefit after applying?

If your application is approved, you must wait five months before you can begin receiving payments, so you should receive your first payment in the sixth full month after the SSA learns of your disability. If you previously received SSDI benefits, the five-year rule can waive this waiting period.

Can I get SSDI and a Social Security retirement benefit at the same time?

In most cases, if you’re receiving SSDI, you can’t also receive Social Security retirement benefits. When you reach full retirement age, your SSDI will automatically convert to a retirement benefit.

How can I find out what disability benefits are available where I live?

One of the most comprehensive listings of benefits nationwide, including those for people with disabilities, is benefits.gov. This online tool allows you to tailor your search by the desired benefit type and state. The National Council on Aging also offers information on a variety of benefits. You may also want to contact your state or local government to learn about benefits programs specific to your area.

If I receive private disability insurance payments, will this reduce my SSDI?

No. Any disability payments you receive from private sources (such as private insurance or pensions) don’t affect your SSDI.

Source: nerdwallet.com

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Northwestern Mutual’s $2.5 million investment in higher education will support 136 diverse students over the next five years Nine students in Milwaukee awarded Northwestern Mutual inaugural HBCU Connection scholarship to further their education at historically black colleges and universities  100 students will be awarded in All-In Milwaukee grants and scholarships to underserved or first-generation college … [Read more…]

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On television, you may have noticed the Gerber commercial that talks about buying a life insurance policy for your child.

Ask any parent how far they would go to protect their child and most would tell you as far as they have to go.

Ask any financial expert if buying life insurance for kids makes sense and you might get an earful with half voting ‘yes’ for insurance and the other half voting ‘no’.

For me, I’m definitely on the ‘no’ side. Why you ask? We’ll get to that in a moment.

The Plus Side

Many argue that purchasing a life insurance policy for your child is a low-cost money move that will be beneficial in the future. It can be an effective plan for the future should the child grow up with health problems or have a family history of health problems that would make it difficult for them to get insured as an adult. Generally, life insurance is based on the amount of income you earn. Since you can not make an accurate assumption as to the amount of money your child would make in the future, you can use your own income as a guideline.

The Down Side

The experts who recommend against life insurance for kids generally feel the policies are outdated and there are now better options for investing in your child’s future. They feel that other resources like the 529 plans can be better suited for future savings. Not everyone is buying their children life insurance policies today. If there is coverage, it’s generally only to cover the costs of burial if something should happen, typically around $5000.

Personally, I’ve come across several clients that were “sold” life insurance policies for their kids to have insurance on them as well as a savings tool for when they get older. Now that the kids are older, the parents are disappointed (I’m being nice here) that the cash value hasn’t accumulated nearly as much as they were led to believe. If you’re being sold life insurance as investment stop and remember this:

I have not and do not intend to take out a life insurance policy on my kids. We started 529 plans for both as well as custodial accounts that we’ve used to purchase stock certificates. As they grow older, I’ll also plan to open Roth IRA’s for them as soon as they have earned income (Dad’s ready to get them on the payroll 🙂 ) From my end, I just don’t see the need for life insurance on them. Amy I wrong? I’m sure others have their opinion on the topic, but it won’t make me change my mind.

How to Purchase a Child’s Insurance Policy

If you absolutely feel that you have to have some sort of life insurance on your child, here’s a strategy that many financial experts can agree with. In addition to having a life insurance policy, utilizing other savings tools is also good financial practice. A parent’s best bet is to purchase a 20 year term policy that is renewable and can later be converted to whole life insurance.

For instance, a $10,000 policy can be later increased to $280,000 worth of insurance coverage. As an adult, the child would have life insurance coverage without medical tests and procedures. Some also use life insurance policies as a way to invest money tax-deferred. Since you are taxed on the gains of the investment, the first withdrawals are from the tax-free premiums.  This will not be a replacement for when they have a family and need 1 million in life insurance, but if they have any health problems it does give them something.

After you have used all of the premium funds, you can take a loan against the gains tax-free also. You will have to keep the policy for your lifetime or you have to pay taxes on the amount taken.

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Not a Guilt Trip

Unfortunately, there are unsavory agents that will take advantage of a parent and use guilt as a sales tactic. When I hear stories like this it sickens me. Purchasing life insurance is a financially smart move and should not be done simply because you love your children.

However, if you as a parent do not have adequate life insurance coverage yourself or not enough going toward your retirement accounts, you should not spend the cash on insuring your children.

In the event something does happen to you, your child will have nothing to fall back on. Review your own insurance needs, especially as your family is changing. Speak with your insurance agent or financial advisor and make sure the amount of insurance you have is adequate to cover your own needs before purchasing a child’s policy.

The policy is subject to substantial fees and charges. Investment portfolios are subject to market risk. Death benefit guarantees are subject to the claims-paying ability of the issuing life insurance company. Loans will reduce the policy’s death benefit and cash surrender value, and have tax consequences if the policy lapses.

Source: goodfinancialcents.com

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Looking to give a dull room in your house some new life? A few framed family photos or other pieces of artwork can take any room from blah to beautiful.

Proper placement of your wall art can feel a little intimidating, though. You have all this blank space and want to make sure whatever you put on the wall has maximum visibility. Where do you even start?

Interior designers start with figuring out how high to hang any wall decor, and it’s as simple as a single number: 57 inches.

Adobe

MORE: The best wall mounting collage picture frames

The 57-inch rule for hanging art applies to everything from home decor to museum displays.

You should always make sure your artwork’s center is displayed 57 inches from the floor. When the center of the artwork is visible at eye level, it makes it much more comfortable to view, as otherwise you’d have to strain to be able to see it.

But why 57 inches? It’s all about finding a standard eye level that’s comfortable for most people.

Displaying wall decor at your own eye level sounds logical. However, you want your walls to draw the eye of everyone in your home, not just yours.

How to Hang Artwork with the 57-inch Rule

The 57-inch rule is not difficult to apply, but you do need two basic tools: a measuring tape and a soft pencil.

It’s important to remember that the 57-inch rule applies to the artwork’s center, not the frame. To get started, mark your wall at the 57-inch height, then find the center of your artwork or photo frame by marking the middle, vertically and horizontally, on the back of your art. Measure your hanging point on the wall from there, keeping in mind that if you’re hanging a frame from a wire, you’ll need to account for how much it gives.

Working around your furniture, and with multiple pieces of art or photos? The art sellers at Simply Framed also recommend keeping frames at least 8 inches above furniture, and separating multiple pieces of art by 3 to 6 inches.

MORE: The right (and wrong!) way to hang pictures

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Exceptions to the 57-inch Rule

With every rule, especially in art, there are always some exceptions.

Heather McKeown of Land and Sky Designs said this rule is more of a guideline and can be “broken” depending on the situation.

“The height needs to feel ‘right’ to you,” McKeown told The Spruce.

“Each space is unique, especially within the home,” she added.

Specifically, if you are hanging artwork over a piece of furniture, McKeown recommends “working ‘by eye’” instead of a specific height rule.

Of course, homeowners should use their best judgment with their room decor. When it comes to your home, it’s important not to be too rigid and remember that it’s OK to break the rules every now and then to make sure your home feels unique to you.

This story originally appeared on Simplemost. Check out Simplemost for additional stories.

Source: ksby.com