Are you discounting your services in order to get deals done? Listen to today’s podcast and learn why you should always charge what you’re worth. Real estate veteran Steve Shull, coauthor of The Full Fee Agent, outlines proven techniques for getting your full fee on every transaction. Steve also shares his no-nonsense approach to prospecting, the one thing it takes to succeed in real estate, and the best tool for any type of negotiation: tactical empathy.
Listen to today’s show and learn:
Steve Shull on playing for the Miami Dolphins in Superbowl XVII [2:28]
Steve’s introduction to real estate and Mike Ferry [4:22]
Steve’s first couple years in real estate [5:11]
Real estate sales in simple terms [7:23]
Mike Ferry’s four options for drumming up real estate business [8:00]
A no-nonsense approach to prospecting [8:32]
Building a custom real estate CRM back in 1991 [9:39]
How sports can help you succeed in real estate [13:46]
The name of the real estate game: listings [16:39]
The mistake most real estate agents make [17:30]
Real estate is not rocket science; it’s a battle for consistency [19:36]
Chris Voss’ Never Split the Difference [23:26]
How Chris Voss’ book completely changed Steve’s real estate scripts [27:27]
The Full Fee Agent by Chris Voss and Steve Shull [27:32]
What it means to be a full-fee agent [28:08]
The false premise that the entire real estate industry is built on [34:08]
The root of all evil in real estate [42:50]
How to respond to a client who asks you to cut your commission [45:49]
Transactional versus relational paradigms [47:14]
Tactical empathy [48:43]
A story detailing the power of tactical empathy [51:50]
What you’ll learn by reading The Full Fee Agent [55:44]
Steve Shull
Steve Shull grew up outside of Philadelphia, Pennsylvania. He attended The College of William and Mary in Williamsburg, Virginia. He graduated with a BS Degree in 1980. Steve then played four years in the NFL as a linebacker with the Miami Dolphins. He was one of the tri-captains in the 1982 Super Bowl. A knee injury ended his career in 1983. Steve then went to graduate school at The University of Miami and received my MBA. He worked on Wall Street as an institutional fixed income sales person for five years. From 1991 thru 1993 Steve sold residential real estate in the Fullerton, CA. area. In his first year with his partner, they closed 53 transactions. In his second year, they were on pace to sell 100 homes when Steve came up with the idea to create a coaching program which marked the beginning of his real estate coaching career in 1993. In 2007, Steve was one of founding partners of Teles Properties. He helped the company open four offices in Beverly Hills, Brentwood, Newport Beach and Pasadena before leaving in 2012. Steve is married to his wife Katerina and they have two daughters and they live in Brentwood, CA.
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Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
If there’s one thing that science fiction has taught us, it’s that you don’t mess with aliens. From intergalactic empires to ancient gods in hiding, extraterrestrials can often give as much as they get— if not more! Whether they come from distant galaxies or are right next door to us, alien species might have vastly differing tech levels and powers. Here we take a look at some of the most powerful alien species in sci-fi TV shows, movies, and video games: let’s all hope our future encounters with extraterrestrial beings prove less hostile than these!
1. Spiders and Snakes, from Fritz Leiber’s Change War Series
Photo Credit: Shutterstock.
One user shared, “The Spiders and The Snakes from Fritz Leiber’s Change War stories. No human has ever seen any member of either race. They are fighting a war that is ongoing on all planets in the Universe, and that started with the Big Bang and goes beyond the end of time. Each side wants to rewrite all history in the entire multiverse.”
Another user replied, “Sounds like Xeelee.”
One commenter added, “Fantastic story that I wish had more books. Rare to get sci-fi with a theater production theme AND locker room mystery.”
2. The Q, from Star Trek
Photo Credit: Paramount Television.
One Redditor shared, “I’ll throw two into the ring: The Q, from Star Trek, is effectively godlike, unconstrained by time, space, or the laws of physics as we know them. The Xeelee, the Baryonic Lords, are nigh-all-powerful. They utilized extensive time travel technology to populate the Universe with themselves, starting from the Big Bang and eventually escaping our Universe into others.
“(Their foes, the Photino Birds, defeated them—but they seem to have no technology nor the ability to travel through time. I’m not even sure if they’re sentient beings or more akin to animals—though the fact that they still formed the entire Universe to fit their life cycle and intentionally destroyed Boulder’s Ring seems to suggest the ability to plan and execute those plans, on a billion+ year timeline.).”
One user replied, “As dark matter beings, baryonic matter is just ants to them. It’s less ‘all that has to go’ and more ‘let’s get rid of that infestation.’”
3. Forerunners, from Halo
Photo Credit: Amblin Television.
“Halo has the Forerunners. For an approximate idea of power level. They power all their technology with vacuum energy. They built a solar system-sized Dyson sphere that can be compressed utilizing an alternate dimension to about 1 meter in diameter. They built whole planets and moved stars.
“The flagship of their fleet, Mantle’s Approach, took two 2.1 million megaton kinetic impactor rounds that barely poked a hole in the hull that self-repair mechanisms fixed in seconds. Its main gun was ‘adapted from planet cracking siege platforms.’ They were masters of their own genetics, too, rewriting themselves into new ‘forms’ throughout their lives.
“With the assistance of advanced armor, they were biologically immortal and had no need to sleep. Perhaps their most “powerful” accomplishment is, of course, the Halo Array, a series of 7 10,000km diameter ringworlds capable of sterilizing the entire galaxy of life in an instant.
“Halo also has the Precursors, which predated the Forerunners. While their technology is primarily unknown, it’s been stated it is based on ‘neural physics,’ the concept that inanimate matter and thought are inextricably linked and that the Universe itself is a living entity. What relics they left were essentially indestructible, most notably Star Roads.
“These were many kilometers thick cables that stretched between planets and even linked separate star systems together. Described as being ‘anchored in the deepest layers of unreality,’ the star roads visible in real space were mere shadows of their exotic neural physics construction woven between dimensions,” shared one user.
4. C’tan, from Warhammer 40,000
Photo Credit: Shutterstock.
One user added, “C’tan from Warhammer 40k is pretty busted. Each of them is connected to an intrinsic aspect of reality, and they have night-unlimited power, even shattered into fragments of themselves.”
One user posted, “Given that the old Necron broke and enslaved them, I’d say that War in Heaven Necrons are also absurdly powerful.”
Another user added, “Yeah, but the Necrons were only able to do it because of power taken from the Ctan and because the Ctan were weakened by infighting and the Old Ones.”
5. The Beyonders, from Marvel
Photo Credit: Marvel Studios.
One Redditor added, “The Beyonders from Marvel are pretty powerful. They were so strong. Doom needed to build a bomb of one of the strongest reality warpers in the Universe and reset the multiverse.”
Another user commented, “Not one of them; he used thousands of Molecule Men from different universes, made a ball with them, and detonated them all at once.”
6. Time Lords
Photo Credit: BBC One.
One user shared, “Time Lords are pretty powerful.”
One user replied, “I’d say Daleks are superior; if it weren’t for the Doctor, the Time Lords would have been wiped out.”
“If it weren’t for the Doctor, Rassilon would have used the Final Sanction to rip the Time Vortex apart and destroy the whole of reality, which would have enabled the Time Lords to shed their corporeal forms and ascend into acausal beings of pure consciousness alone. However, the Daleks were indeed winning the Time War up until that point. Still, Gallifrey would have won the conflict if it hadn’t been for the Tenth Doctor’s and the Master’s interference in The End of Time,” another user commented.
One Redditor replied, “The Time Lords still have more power and hax at their disposal, just that the Daleks got the advantage with a surprise attack that made them immune to their go-to time erasure.
“After all, the Time Lords were holding back since, up until the end, they still wanted to save the Universe. They, too, could have built a reality bomb if they wished; they never dared to use the moment; they were gonna use the final sanction, and seeing how it was a time lord that created the Flux and the Daleks had no counter to that, they could have used that too.
“So, it was a combination of surprise attack, unwillingness to commit, and continuously underestimating the Daleks that caused the Time Lords almost to lose.”
7. Zeno Sama, from Dragon Ball
Photo Credit: Toei Animation.
One user added, “Nah, they are petty insects. Zeno Sama can erase entire universes at will.”
Another user replied, “Was it ever specified whether Zeno belonged to a race or was he just a divine creature?”
“Well, he’s not from Earth, so he’s surely an alien. Divine or not, I think it fits the alien concept,” one Redditor commented.
8. Lovecraftian Creatures
Photo Credit: Shutterstock.
“Lovecraftian, aka cosmic horrors, are pretty much unparalleled in power,” one user added.
Another user replied, “The outer Gods are technically aliens, but each of them is vastly different and hard to quantify as a ‘species.’”
9. Trisolarans, from Three-Body Problem
Photo Credit: Shutterstock.
One Redditor shared, “The [trisolarans] from the three-body problems. Literally, quantum entanglement communication and the teardrop terrifies me.”
Another user replied, “I would actually give the other hunters in the dark forest an example.”
One commenter said, “Weren’t they the ones who destroyed spatial dimensions to vanquish their enemies?”
10. Species 8472, from Star Trek: Voyager
Photo Credit: Paramount Television.
“Species 8472 is pretty [great],” one user shared.
A user commented, “I came here to say this. Any species that can force the Borg to make an alliance is a force to be reckoned with.”
Another user added, “One of the most interesting aliens from Star Trek, IMO. Especially due to the way all their tech is biological, like how their ships are basically animals. BTW, it’s not true canon, but the game Star Trek Online named them the Undine.”
One user added, “I’m surprised at how little treatment [8472] was given. The cannon is just tiny. I know the foreign-universe-ness and our lack of understanding of them is a big part of their charm, but I would love a deeper exploration of the buggers. The whole ‘fluidic space’ thing is left almost entirely to the imagination. There couldn’t be any gravity, obviously. How does physics work there? I believe they are the only species in their universe. Did they wipe everyone out recently, or did they evolve as apex predators without any prey?”
Do you agree with the names listed above? Share your thoughts in the comments!
Source: Reddit.
These are 10 Things That Completely Destroyed The Love in a Relationship
Photo Credit: Shutterstock.
There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!
10 Actors and Actresses People Refuse to Watch Ever Again
Photo Credit: Shutterstock.
We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!
Top 10 Worst Human Inventions of All Time
Photo Credit: Shutterstock.
Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.
10 Famous Celebrities Who Look Like They Smell Terrible
Photo Credit: Shutterstock.
We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.
10 Terrible Fads People Are Glad Died Out
Photo Credit: Shutterstock.
Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
As the world navigates the COVID-19 crisis together, there have been far-reaching economic impacts. With unprecedented unemployment rates and a shaky stock market, some are questioning whether or not the FIRE movement will continue to exist.
In case you didn’t know, the FIRE (Financial Independence/Retire Early) movement is a collection of avid savers that are aggressively investing in pursuit of early retirement decades before hitting 65. With the most recent economic downturn, some critics are skeptical of the community’s ability to continue moving forward amidst continued economic uncertainty.
What’s Ahead:
Is it still possible to retire early with the financial impact of COVID-19?
The major question that critics, and those in the FIRE community, have is whether or not is it still possible to retire early with the current economic crisis. Has COVID-19 crushed the early retirement dreams of everyone in the community?
The economic impacts of COVID-19 have been pronounced. But there is hope. There have been several examples of early retirees that are successfully navigating the financial impacts of the pandemic. Some have even taken the leap into early retirement in the midst of the COVID crisis. Even with the significant impacts of COVID-19, success stories show that it is still completely possible to retire early.
The quickly changing economic landscape can be a hurdle. But as an early retiree, you should expect several big market dips throughout early retirement. If you plan to retire for decades, it is only a matter of time before you experience a major market disruption. In fact, six major market collapses have been recorded throughout U.S. history. In those crashes, the stock market has lost over 10% of its value. These crashes remind us that investing in the stock market is fraught with risk.
In 2008, the stock market took a scary nose dive that signaled the start of the Great Recession. At the time, the nerve-wracking sight didn’t kill early retirement dreams. With a more realistic grasp on the downside of being dependent on a paycheck during a financial crisis, many joined the FIRE movement as the economy began to recover. Since the crash in 2008, many people have been able to build their net worth and retire early successfully.
As we live through another major economic downturn, the importance of achieving financial independence is more pronounced than ever. Although it was never easy, it is still possible to retire early. The market will likely recover at some point, just as it has throughout the rest of history. With that, retiring early should remain a possibility in your life if you want to pursue it.
How to make sure you can still retire early
Of course, you will need to make some adjustments to compensate for the impact of this crisis. But if you are pursuing early retirement, it is still a possibility.
If you are struggling to stay on track to your FI goal, here are some strategies that can help you create more realistic FIRE goals.
Evaluate your investment strategy
An essential component of a successful early retirement is a carefully executed investment strategy. Since you will be relying on your investments for an income in early retirement, you must create a portfolio that accounts for your risk tolerance. Otherwise, every market dip will leave you in a panic.
With the importance of a strong investment strategy in mind, you may want to consider using an app like Public. Public has outstanding educational tools built into the experience to help you learn more.
Many FIRE enthusiasts rely on the traditional 4% rule, which states that you can withdraw 4% of your principal balance every year. In theory, you’ll be able to safely withdraw 4% every year. But the amount that equates to can change quickly. As we saw in the dramatic market drops earlier this year, it is easy for a portfolio to lose a substantial amount of value overnight. You can lower your risk of running out of money by lowering your withdrawal rate. But if you still aren’t comfortable with that potential risk, then rebalancing your portfolio to account for your risk tolerance is a good move.
Rebalancing to suit your priorities can be easy when using a DIY investment platform like Robinhood. With Robinhood, you can set up an investment portfolio and make trades as you wish. This can provide some peace of mind as you move forward.
A final piece of your investment strategy that you need to evaluate is the fees. Although you may have done your research to find a low-cost taxable account, some employer-sponsored options could be riddled with fees.
Luckily, blooom can help you figure out how much you are losing to fees and how to make adjustments to minimize these fees. If you are looking for guidance surrounding your employer-sponsored plan, then check out blooomas an optimization option.
Advertiser Disclosure – This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and MoneyUnder30, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. MoneyUnder30 is not a member of FINRA or SIPC.”
Beef up your emergency fund
Although a safe investment strategy is important, cash on hand will help you weather any financial storms that come your way. That is why you need to have an emergency fund on hand to cover expenses when the market is in the midst of a major downturn.
While you are working, an emergency fund with a few months of expenses is likely sufficient. But if you are planning to leave the workforce, then a stockpile of cash to sustain you for several years might be in order.
The exact amount of cash you keep on hand will vary based on your goals and risk tolerance. However, you should plan to keep your savings in a high yield emergency fund such as the CIT Savings Builder. The account offers a competitive interest rate to help your savings keep up with potential inflation risks.
Look for expenses to cut
If you are a part of the FIRE community, then you likely have a somewhat frugal nature. Although you may enjoy the finer things in life, you know the difference between needs and wants. With that, you may need to take the opportunity to cut some wants out of your life.
You may need to get creative when looking for expenses to cut. A few ideas to consider include running your errands on the way home from work to avoid additional transportation costs on the weekends, tackling your yard work without the help of a handyman, and tapping into your DIY side when you need to replace household items.
As you explore your options to cut expenses, consider enlisting the help of a service like Trim. The ‘personal finance assistant’ can help you cancel unwanted subscriptions and negotiate with bill providers to lower your monthly costs.
Taking the opportunity to lower your expenses can help you stretch your savings farther.
Consider other income opportunities
Keeping your expenses low is one side of the FIRE equation. On the other side, a higher income can help you meet your savings goals more quickly.
With the spike in unemployment, it may be a good time to consider broadening your income horizons. That means looking beyond your nine-five for income streams. Usually, this means investing in a cash flow positive rental property or building a new skill set to boost your income. But you should consider any side hustle opportunities that strike your fancy. You might try delivering groceries, selling home decor on Etsy, or becoming a juror in a mock online trial.
Get creative as you seek out other income ideas. You never know what life will throw your way!
Adjust your retirement timeline
Even if you slash expenses and boost your income, you may not meet your savings goals due to circumstances beyond your control. If you’ve lost your income as a result of the pandemic, then you will likely need to adjust your retirement timeline.
Take a look at your net worth and the current amount you are able to tuck away into your investments each year. Once you have a better idea of your trajectory, you can line this up with your FI number. This should help you understand when you will be able to retire.
However, the changing math can get tricky. With that, I would recommend using MU30’s FIRE calculator to play with your changing scenario. With your real numbers, the calculator can help you determine what you’ll need to do in order to retire early.
It is okay to make adjustments! Even if you aren’t able to retire as early as you would like to, you will likely be able to retire at some point if you work towards your goals.
Consider flexible retirement plans
When you think about retirement, also consider the idea of scaling back on work. Flexible work arrangements can be the perfect gateway into early retirement.
Instead of retiring completely when you reach FI, consider working part-time or switching to a passion project. You may not earn as much with these options, but you can continue beefing up your retirement savings before you make the jump into retirement.
Plus, you can always return to the workforce if you need to. In many cases, you’ll be able to find a job if you want to start working again. But you’ll need to keep your skills sharp and resume updated if you are considering this option.
In addition to considering different work arrangements, you may need to consider different living arrangements in early retirement. As the pandemic has illuminated, global travel can grind to a halt. With that, many early retirement dreams of globetrotting to exotic places have been put on hold. Consider where you would be happy to spend your newfound free time if you weren’t able to travel in early retirement.
Prepare for future economic downturns
Achieving financial independence will not happen overnight, it will take many years to reach that pinnacle. You will likely run into many bumps in the road on your way to retiring early.
But the speed bumps don’t stop there! Once you’ve committed to early retirement, you will likely encounter more trying economic downturns. It is especially likely that you’ll encounter multiple downturns in your retirement since you’ll be retired for several decades!
As with this economic crisis, the solution is to remain flexible in your retirement. Depending on the extent of the economic damage, you may need to cut back on expenses or consider picking up a part-time job. That may mean that your retirement looks different than you originally envisioned. But a flexible attitude will keep your FIRE dreams alive and well in this downturn and the ones that will follow.
Summary
The FIRE movement is based on the idea of living below your means and achieving a permanent level of financial stability. If you are currently on the path to FI, then you are likely in a better financial position than most. Hopefully, you have enough cash in your emergency fund to weather the storm and a flexible attitude that can keep your expenses in check.
Although members of the FIRE community will need to stay agile in the coming months, the movement is not extinguished. In fact, it may burn even brighter in the future as more people crave the financial stability that many on the path to FI have attained.
JetBlue is offering $25 off one-way flights and $50 off round-trip flights for travel this fall. All you have to do is use the promo code FALLSALE to get this discount.
The deal is only valid on nonstop flights, and you can’t apply it to previously purchased tickets. It’s also not valid on transatlantic flights or on Mint tickets.
The sale ends July 26, so book as soon as you can.
Deal basics
Airlines: JetBlue
Routes: Between any U.S. destinations where tickets cost more than $50
How to book: Directly on JetBlue’s website with promo code FALLSALE
Travel dates: Sept. 7 through Nov. 16
Book by: July 26 at 11:59 p.m. EST
Blackout dates: Excludes Friday and Sunday travel
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Sample flights
Head to JetBlue’s website, and click on the promotional window.
JETBLUE.COM
It’ll take you to the booking page and automatically enter the code. From there, you can choose your dates and destination.
JETBLUE.COM
Make sure you’re not trying to book on a Friday or Sunday, as these dates are excluded from the sale. Know, too, that this discount code won’t work if your flight is less than $50.
The below Monday flight to Los Angeles from New York is discounted $25, from $137 to $112.
JETBLUE.COM
The same discount is applied to the return flight, making it $50 off both tickets.
JETBLUE.COM
When you get to your shopping cart, you’ll see the discount applied in the price summary.
JETBLUE.COM
These tickets are for JetBlue’s Blue Basic fare category, which does not include a carry-on or checked bag. To check a bag, you’ll have to pay $35 each way. Passengers cannot cancel without paying a fee and will be the last to board.
Maximize your purchase
Use a credit card that earns bonus points on airfare purchases. Frequent JetBlue flyers can use the JetBlue Plus Card for 6 points per dollar spent on eligible JetBlue purchases, the JetBlue Card for 3 points per dollar spent on eligible JetBlue purchases or the JetBlue Business Card for 6 points per dollar spent on eligible JetBlue purchases.
Or, you could use The Platinum Card® from American Express for 5 points per dollar spent on airfare booked directly with the airline or through American Express Travel (on up to $500,000 on these purchases per calendar year); the Citi Premier® Card (see rates and fees) or the Chase Sapphire Reserve, both of which award 3 points per dollar spent on airfare; or the Chase Sapphire Preferred Card for 2 points per dollar spent on travel.
The information for the JetBlue Plus, JetBlue Business and JetBlue Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Bottom line
If you’re planning to travel somewhere in the U.S. this fall, these discounted JetBlue flights are a perfect option.
Book fast, as tickets will sell out quickly before the sale ends tomorrow.
“God grant me the serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference.” — Reinhold Niebuhr
Recent volatility in the financial markets and a weakening US economy have tested the resolve of even the most patient of investors, and cast a shadow of doubt upon the most resolute in personal finance. What if the stock market continues its decline? What if the economy slips into recession? What should I do, if anything, to protect my investments? Where can I find the answers?
While these questions are normal in the face of uncertainty, the problem with them is that they are reactionary and seek answers from external sources. Those kind of questions suggest we have not sought answers from internal sources and, perhaps, have failed to ask questions that may be a bit more difficult, such as “Who am I?” and “Where am I going?”
I believe that it’s important for us to limit our attention to those external sources we can not control, to instead allocate attention to things we can control, and, ultimately, to set forth on our own path rather than the path of others.
“Not being able to govern events, I govern myself.” — Michel de Montaigne
From a financial perspective, there are significant events that are not within our control:
Financial markets. As legendary economist John Maynard Keynes famously said, “The markets can remain irrational longer than you can remain solvent.”
The economy. As with financial markets, the economy moves in cycles. That’s about where our absolute knowledge ends. To paraphrase Mark Twain, history may “rhyme” but it does not repeat itself.
Government actions. Fiscal acts (i.e. tax rates), monetary acts (i.e. interest rates), and geo-political acts (i.e. foreign government) have an incredible impact on the Big Picture of our finances, but no individual has any meaningful control over them.
There are, however, many items that are within our control as investors:
Asset allocation. We have the power to select a diversified mix of stocks, bonds, and cash. We also have the ability to control investment selection and investment types, such as mutual funds vs. individual securities, index funds vs. actively-managed funds, or even the use of “life-cycle” funds.
Holding period. While timing the market is a fool’s game, time in the market is prudent. Based on history, between 80% and 90% of the returns attributable to market performance come from just 2% to 7% of the time in the market. Miss the market’s greatest moves and you’re doomed to under-performance.
Savings rate. This is a “no-brainer”. All other things being equal, increasing the amount you are saving or investing will have a much larger impact on your long-term account value than market movements or economic activity. Of course, in order to have a positive savings rate, we must spend less than we make.
All of the above controllable determinants of investing depend on your goals, objectives, tolerance for risk, and time horizon. None of these can be accurately determined without asking those challenging questions I mentioned previously: “Who am I?” and “Where am I going?”
“If I have even just a little sense, I will walk on the main road and my only fear will be straying from it.” — Lao-tzu
Lao-tzu sought the Tao or The Way. Buddha called it Nirvana. Socrates promoted “the examined life”. And Maslow suggested it is self-actualization, which we all seek. Before success in finances or any other area in life, we must first know ourselves. Here are some suggestions for finding your own “path” and staying on it:
Find yourself. Who am I? Why do I think and feel differently than others? How can I leverage this knowledge to benefit myself, my relationships, my personal finances? First, you are a human, then you are an individual. For the understanding of yourself as a human, I suggest the book, Emotional Intelligence: Why It Can Matter More Than IQ, by Daniel Goleman. For understanding yourself as an individual, I suggest the online version of the Jung Myers-Briggs Type Indicator. These are only beginnings. Self-awareness is a life-long pursuit. Seek information that will enhance knowledge of yourself.
Define yourself. Our “path” may be easily diverted by social conventions and language. For example, what is your definition of “retirement”“? Where did your definition come from? Is your ultimate financial goal financial freedom? What is your definition of freedom? Define other words for yourself as well, such as rich, wealth, success, strength, weakness, and happiness. Otherwise, you are following the definition of others.
Allocate attention. Meaning, happiness, and control in our lives best derive from internal sources. So how do we limit external noise? A good start is with our informational media consumption (i.e. television, internet, paper media). If we are consumers of information, we must stop to think of what it is that information consumes — our attention. Were you seeking the information or was it seeking you? Be aware that information sources, especially those that are in the business of selling advertising, are trying to “capture” your attention. Capture your own attention first by creating a “portfolio” of information sources: For example: 40% Music, 30% books, 10% blogs and internet, 10% periodicals, and 10% television.
Think about “thinking”. Anyone can think. But to strengthen our reasoning capabilities we must learn to “think about thinking.” To provoke this level of thought, try studying philosophy. For some relatively easy reading, start with The Complete Idiot’s Guide to Philosophy, then gravitate to philosophies or philosophers that speak to your interests.
No matter which direction we are walking or what life brings us — whether it is personal finance or anything else — we cannot be wrong as long as we are following our own path. We will make mistakes, of course, but they will be our own. And, because of our self-awareness, they will help us to grow stronger and to continue in the right direction.
I think The Financial Philosopher’s advice is excellent. The main reason I struggled with money for so long is that I didn’t know myself, and I didn’t know what wealth meant to me. As I’ve come to understand myself and my aims in life, it’s been easier to set goals for my money. (And I’m an ENFP, by the way.) Photo by Mr. Hayata.
As a resident living fairly close to the Gulf Coast, I’m familiar with evacuating for a hurricane. There’s no way around it — evacuating for a natural disaster is a pain. But, there are things you do to make the process less stressful. Here’s a short list of the things I consider when evacuating.
The most important thing is to have a plan.
Where are you going to go? My wife’s job requires her to be back to work as soon as the storm blows through, which makes it tricky for us to evacuate &madsh; we can’t go too far away. Our evacuation route is decided based on where we think the storm is going to go. For instance, when Hurricane Gustav came in well to our east, we headed west to my sister-in-law’s house. When Hurricane Ike came in to our southwest, we headed north.
During an emergency, your local government will have an evacuation route that they want everyone to follow, but if you leave early enough you can go pretty much wherever you want to go.
The most economical way to evacuate is to stay with friends or family. This is the best way to go because it’s hard to find an empty hotel when everyone else is evacuating. Just be sure you’re a good guest. Don’t overstay your welcome. If you don’t have friends or relatives that you can stay with and you don’t have money for a hotel, consider a shelter.
What are you going to pack? For the most part you need to pack like you’re taking a vacation. If you need to evacuate for a natural disaster or other emergency, consider the following:
Clothes and toiletries. Be prepared to be away from home for at least a week — more likely two.
Important papers. I use one of those portable filing boxes to store our most important papers (insurance information, social security cards, birth certificates, employee benefits information, etc.). (Some of these documents may be stored in a safe deposit box.)
Pets. Don’t forget Fluffy. Be sure and take a bottle of water and some pet food. Also, if you have an outside pet, you might want to give a good scrubbing before you load it into the car. I don’t like traveling with a dirty, smelly dog. Washing the dog is my kids’ job.
Food and water. There’s no need to go overboard but it is a good idea to pack some bottled water and maybe a few canned goods.
Computer. This is easy if you own a laptop. It’s important to be able to go online to check in with your local news station and newspaper for important information.
Road atlas. Never leave home without one.
Money. It’s a good idea to have some cash on hand. I usually take $300, which isn’t a lot but is better than nothing.
Phone numbers to your neighbors. I have the cell phone numbers of most of my neighbors so that we can check in with each other to get status reports. One of my neighbors called me to tell me when our power was back on.
Finally, be sure and check on your older neighbors. Are they evacuating? If you have room, take them with you.
What are you going to do with the things you leave behind? As important as the things you take with you is what you leave behind. Proper preparations can save hassle when you return.
Board up the house. For the first time ever, I boarded up some of the windows of my house. I never did this before because I thought it was too expensive to do. This year I bought six sheet of 1/2-inch plywood and one bag of clips and spent over $114. I then spent an afternoon cutting the pieces to fit my windows and marked each one for storage. When I boarded up for Ike, it only took me a few minutes to secure the boards. [J.D.’s note: Not every disaster requires boarding up, of course.]
Take an inventory of your stuff. My wife went room-by-room and took pictures of everything we owned. Chances are good that you won’t need to use these pictures but you never know. I also have an itemized list of my CD collection.
Unplug all your appliances and electronics. I do leave my answering machine plugged in so that I can check in to see if I have power (if the answering machine doesn’t pick up, I don’t have power).
Pick up loose items in the yard and empty out the shed. One of the biggest problems with hurricanes, tornadoes, and other wind storms is all the debris flying through the air. (And in the case of flooding, there’s plenty of debris in the water.) You can do your part by moving all your patio furniture other loose items into your garage. This is a great job for the kids. Don’t forget that portable basketball goal.
EMPTY THE REFRIGERATOR! For some crazy reason, we didn’t empty our refrigerators for Hurricane Rita. BIG MISTAKE! By the time we got to come back to check out our house, our power had been off a week. I can’t tell you how bad the smell was!
Lock the house. I usually lock the garage doors and unplug the garage door openers.
A little preparation before the disaster can save a lot of headache later.
What about AFTER the emergency? This is a whole topic by itself but I will say that if your area is hit by a hurricane, tornado, or flood, it could be weeks before you get back power and drinkable water. You have to decide if you’re going to go back and rough it or if you are going to stay away.
Because I’m a big wimp, I always opt to stay away. I don’t have a generator and am not really interested in buying one. I realize that not everyone will have the option to stay away if their job requires them to be back as soon as possible.
You may also be interested in reading The Simple Dollar’s recent guide to surviving a natural disaster.
J.D.’s note: Kris and I don’t have any sort of emergency preparedness plan. Oregon isn’t subject to many disasters, but we do have the occasional flood or earthquake. JLP’s experience is a reminder that advance preparation beats future regret.
Moody’s strategists say high mortgage rates will weigh on the housing market for years to come.
They see central banks keeping monetary policy tight this year, and think mortgage rates will stay stubbornly high even after easing begins.
They says prospective homebuyers and homeowners looking to refinance will feel the most pressure.
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In a July report, Moody’s strategists said they expect high rates to continue weighing on prospective buyers and homeowners looking to finance, as central banks appear unlikely to ease monetary policy anytime soon.
A series of interest-rate hikes from the Federal Reserve has been the main force making mortgages more expensive. A near-record surge in home prices was already hurting affordability even before the increases. Now potential homebuyers are even more stuck.
“We expect central banks to maintain a tight monetary policy stance this year, before beginning to cut policy rates very gradually in 2024,” according to Moody’s. “Housing demand in markets in which funding takes the form of floating rate or short-term lending will therefore likely remain strained as long as monetary policy stance remains tight.”
The doubling of mortgage rates since the pandemic housing boom from less than 3% to over 6% has caused “notable retreats” in certain US markets, the strategists added, with western states seeing the steepest drop-offs.
Last week, Freddie Mac said the average rate on a 30-year fixed mortgage stood at 6.78%.
But even with mortgage rates hovering near two-decade highs, home prices have remained stubbornly high because of a persistent inventory shortage.
The going price for a typical home hit $426,056 in June, 1.5% below the all-time high, and just a 0.6% decline from the prior month, per Redfin. That also marked the slowest decline in home prices in five months.
“The paths toward more normalized purchase affordability could be long in some markets, or not include full reversions,” the strategists said.
If Green Tree serviced your mortgage from 2010 to 2014, you might be due some compensation for alleged wrongdoings.
Today, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) ordered Green Tree Servicing to pay $48 million in borrower restitution along with a $15 million fine to the CFPB’s Civil Penalty Fund.
CFPB Director Richard Cordray said in a release that the company “failed consumers who were struggling by prioritizing collecting payments over helping homeowners.”
This meant borrowers who could have kept their homes instead lost them to foreclosure, despite being on payment plans to get back on track.
Pay Your Mortgage or We’ll Arrest You
Green Tree has been accused of some pretty bad stuff
Including warning delinquent homeowners of imprisonment
And doing little to help borrowers keep their homes
Along with harassing phone calls and unresponsive customer service
Green Tree has been accused of a number of abuses, including not honoring loan modification programs, delaying short sale decisions, and charging customers “convenience fees” when paying their mortgages.
Apparently homeowners with prior foreclosure relief plans had their mortgages transferred to the company where they were not maintained, and instead asked that borrowers make their original, higher monthly payments.
Additionally, the company supposedly charged customers $12 for its pay-by-phone service and pressured borrowers into using it to ensure their payments were received on time.
Even worse, delinquent borrowers who called Green Tree were automatically routed to debt collectors rather than a loss mitigation specialist.
The company’s short sale department was also “frequently unreachable and unresponsive,” and it often took two to six months to receive a response to short sale requests.
If that’s not enough, Green Tree also allegedly called delinquent borrowers seven to 20 times a day if they were two weeks or more past due, sometimes as early as 5 A.M. or as late as 11 P.M.
Some reps told borrowers they were “deadbeats” and warned them that nonpayment of their mortgage could result in arrest or even imprisonment.
It’s unclear how much compensation each borrower will receive, but victims who receive money from this enforcement action can also pursue their own individual claims against the company.
Must Convert Temporary Loan Mods into Permanent Ones
Assuming you managed to keep your home
Any temporary loan modifications must be made permanent
And all active foreclosures must be halted
While the company evaluates loss mitigation alternatives
For those who still have their homes, Green Tree must convert temporary loan mods into permanent ones.
And for mortgages already in a loan modification program, Green Tree must honor loss mitigation agreements entered into by the prior loan servicer.
If a borrower is in the process of foreclosure, it must be halted while the company reaches out to borrowers and evaluates other potential loss mitigation options.
The company has also been ordered to halt all mortgage servicing violations, including how much consumers owe Green Tree. And acknowledge the receipt of short sale requests and/or missing documents within five days.
Green Tree is also barred from transferring loans in loss mitigation in or out of the company without all the proper paperwork and records in place.
Lastly, the company has been ordered to provide access to quality customer service so borrowers can actually save their homes from foreclosure instead of being pushed toward an arrangement that compensates Green Tree.
Walter Investment Management Corp. acquired Green Tree in 2011, and in August 2015, Green Tree Servicing and Ditech Mortgage Corp. linked up to create Ditech Financial LLC, also owned by Walter.
Tip: In October 2019, New Residential (now known as Rithm Capital) purchased Ditech’s forward Fannie Mae, Ginnie Mae, and non-agency mortgage servicing rights.
In mid-2022, Ditech posted a notice regarding distribution of any unclaimed borrower funds remaining in the Ditech estate.
Certificates of deposit (CDs) can be an arrow in your savings quiver, best used to generate good returns on cash you don’t need right away. Based on Curinos data, CD rates have been relatively stable over the past week even in the midst of a rate hike pause by the Federal Reserve.
Three-month CD rates
Rates on three-month CDs have increased since last week, rising by one basis point to 0.98% today.
Over the past month, rates on three-month CDs have climbed by eight basis points.
The current national high for a three-month CD is 5.83%, which would earn more than $355 in interest with a $25,000 deposit.
Six-month CD rates
When you opt for leading six-month CDs, you get a winning combination: solid interest rates and a commitment that’s only short-term.
The national average APY for six-month CDs is 1.40%, up slightly from 1.39% last week and 1.34% one month ago.
The current top national rate for a 6-month CD is 5.41%, according to the data available from Curinos’ database. But you may be able to find better deals by shopping around.
You’d earn almost $670 in interest if you put $25,000 in a six-month CD with a rate of 5.41%.
One-year CD rates
If you’re up for setting aside your savings for a full year, you’ll be able to snag even more impressive rates. One-year CDs can give you returns as high as, or even higher than, longer-term options.
Rates on 12-month CDs are on the rise. The national average APY is 1.66%, up two basis points from last week and six basis points from a month before.
The current national high for a 12-month CD is 5.60% which would earn more than $1,400 in interest with a $25,000 deposit.
Two-year CD rates
Interest rates on CDs with longer terms have remained stable.
The nationwide average APY stands at 1.55%, the same as last week , although up three basis points from one month ago.
The current national high for a 24-month CD is 5.15%. By locking in a rate close to this high, you’ll make the most of your returns on this longer-term investment.
If you invest $25,000 in a 24-month CD at the high rate of 5.15%, you’d earn around $2,650 in interest.
Three-year CD rates
The national average APY for a three-year CD stands at 1.49%, which is the same as last week and up from 1.47% a month ago.
The highest rate was 5.20%, which would net almost $4,105 in interest if you invested $25,000.
Methodology
To establish average certificate of deposit (CD) rates, Curinos focused on CDs intended for personal use. CDs that fall into specific categories are excluded, including promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs. The average CD rates quoted above are based on a $25,000 deposit.
Frequently asked questions (FAQs)
In 2022, savers finally experienced some relief with the rise of CD yields.
That trend has largely continued throughout 2023, as the Federal Reserve has continued to raise interest rates to moderate inflation. However, the Fed paused its interest rate policy in its most recent meeting in order to see how the economy responds to such high rates.
You’ll need a few key details to open a CD: your name, address, Social Security number, government-issued ID and phone number. You can open a CD online or in person, but you’ll probably find better rates online. Once you get the green light, you can fund the CD with cash from a linked bank account or one that’s not affiliated with the bank at all.
CD rates change on a regular basis, but the higher the better. As of July 24, 2023, the national average interest rate for a 12-month CD sat at 1.66% APY, according to data from Curinos. But you can find plenty of banks advertising APYs well above this average, especially if you take a look at the top contenders in our ranking of the best CD rates.
A basis point is the term used to describe one hundredth of one percentage point. Therefore, if the yield on a CD increased from 1.50% to 1.60%, it increased by 10 basis points.
As the banking crisis stabilized last week, mortgage rates increased, reducing borrower demand for home loans. However, with limited for-sale housing inventory, these higher rates are primarily challenging for potential first-time homebuyers.
Overall, mortgage applications fell last week by 8.8% from one week earlier on a seasonally adjusted basis, per the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
This was a reversal of the previous week’s trend, when homebuyers’ loan demand increased by 5.3%. The MBA survey, which has been conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
“Last week’s increase in mortgage rates prompted a pullback in application activity. With more first-time homebuyers in the market, we continue to see increased sensitivity to rate changes,” Joel Kan, MBA’s vice president and chief economist, said in a statement.
The MBA survey shows the average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.43% from 6.3% last week. Rates on jumbo loans (greater than $726,200) rose to 6.28% from 6.26% on a weekly basis.
Regarding the jumbo space, the spread between the jumbo and conforming 30-year fixed rates widened slightly last week to 15 basis points, tighter when compared to the past year, according to the MBA data.
“As banks reduce their willingness to hold jumbo loans, we expect this narrowing trend to continue,” Kan said.
At HousingWire’s Mortgage Rates Center, the Optimal Blue data shows rates at 6.50% on Tuesday for conforming loans, up from 6.39% the previous Tuesday. Rates for jumbo loans increased to 6.62% from 6.48% in the same period.
“Banking stress in the markets have gone away, so the bond market just bounced higher from a key technical point,” Logan Mohtashami, HousingWire’s lead analyst, said. “As long as the economy stays firm, we will bounce back and forth on rates.”
Loan types
The MBA data shows that purchase apps declined by 10% from one week earlier on a seasonally adjusted basis, and refinancings were down 5.8% in the same period. Refis comprised 27.6% of the total applications last week, up from 27% the previous week.
Meanwhile, mortgage apps declined by 6.9% in the conventional market, but decreased by 14% in the government space.
The Federal Housing Administration (FHA) share of total applications increased to 12.7% last week from 12.3% the week prior. The U.S. Department of Veterans Affairs (VA) share fell to 11.7% from 12.8% in the same period. The U.S. Department of Agriculture (USDA) share remained unchanged at 0.5%.
“Affordability challenges persist and there is limited for-sale inventory in many markets across the country, so buyers remain selective on when they act,” Kan said. “The 10% drop in FHA purchase applications, and the increase in the average purchase loan size to its highest level in a month, are other indications that first-time buyers have pulled back.”