companies

Apache is functioning normally

Is it time to play defense? Economists have a fairly simple story to tell about the 2023 economy: things are weird. Inflation raged out of control in 2022, but has been falling in 2023. A volatile stock market remains below its 2021 highs, but still trended positive since the start of the year and may have entered a new bull market. Mortgage rates have tripled, but try telling that to the housing market. Economists and investors alike have issued steady warnings about a coming recession, but it feels like each month’s labor statistics beat the last.

A financial advisor can help you prepare your portfolio for a potential recession. Find a financial advisor today.

In other words, nobody really has a handle on what’s happening out there. That said, there are some potentially troubling signs ahead, especially for the third quarter of 2023. Several long-term factors may come to a head in late summer, ranging from top-level issues such as banking instability and delayed-impact Federal Reserve rate hikes to bottom-up issues such as resumed student loan payments. Together, it might all be enough to finally tip the economy into a long-awaited recession.

The right approach to this, as Morgan Stanley argued in a recent brief, might be to start thinking defensively.

“The stock market has managed to stay positive for much of this year. However with interest rates at their highest level in more than a decade and economic growth slowing, not to mention recent turmoil in the banking sector, uncertainty looms large,” writes Daniel Skelly, managing director and head of Morgan Stanley’s wealth management market research and strategy team.

“Additionally, equity valuations are already high relative to earnings – and current earnings estimates may be inflated. As a result, investors may see another drop in the stock market before they can truly declare the bear market over,” Skelly also writes.

In the face of this uncertainty, Skelly says investors may want to consider playing defense in the back half of 2023. In particular, he recommends seeking out dividend stocks. The reason is volatility, as dividend stocks tend to be an excellent buffer against unpredictable markets for four key reasons.

Price Supports

Dividend stocks tend to have built-in support against price volatility. In the short term, when companies issue a dividend to their shareholders, the price of a stock tends to drop. This has to do with a number of factors, most often the fact that new investors don’t want to invest if they’re being left out of the upcoming payments.

That’s not a bad thing, though, because when the share price drops for a dividend-paying stock the asset’s overall yield rises. For example, say you pay $10 per share for a stock that pays $1 in dividends. That’s a 10% yield on your investment ($1 dividend payment / the $10 you paid to receive it). If the share price drops to $8, but the company maintains its $1 per share dividend, that yield floats up to 12.5%.

That builds in a counter-cyclical pressure on the stock. As the share price falls, the yield increases. As the yield increases, more investors will get interested in the stock. That new interest will presumably drive new investment, boosting the share price back up. It’s not a guaranteed cycle, there’s much more going on here, but it can help smooth out volatility relative to stocks that generate their value entirely based on returns.

Stronger Returns

Historically, dividends have played a much larger role in market returns than many investors realize. As Morgan Stanley notes, in recent years dividend payments have lost ground compared to capital gains. From 2013 to 2022, only about 17% of the stock market’s overall returns came in the form of dividend payments. However, this has less to do with reduced payments and more to do with the explosive gains in stock value over that decade.

Historically, though, dividend payments have accounted for anywhere between 37% and 40% of the market’s overall returns.

Morgan Stanley expects a reversion to norms. “The next several years are likely to be marked by lower equity returns and higher volatility,” Skelly writes, “which could lead dividends to account for a greater portion of total stock market return.”

If the economy does slip into a recession, or even if the stock market simply enters longer-term bear territory, then capital gains-based returns will suffer. Long-term investors who can afford to wait out a downturn will probably be fine, but anyone who is looking to generate returns in the next year or two will probably face much less reliable, often less profitable, share prices. Dividend stocks can help offset that risk.

Signals for Good Fundamentals

Long-term investors should take note too, though.

As Morgan Stanley writes, dividends are a very strong bellwether for the underlying strength of a company. “When a company can reliably pay dividends or even increase them, it likely has a certain level of financial strength and discipline. For investors, this regular income stream can offer some hedge in what continues to be an uncertain stock market. In fact, in 2022, the S&P 500 overall lost about 18%, but the S&P 500 Value Index (which is often used as a proxy for dividend stocks) kept its losses to about 5%, and the S&P 500 High Dividend Index lost about 1%.”

In essence, when a company can afford to pay or maintain dividend payments, it’s signaling that it has significant cash on hand above and beyond its business needs. Now, to be sure, this is not always the case. It is not unheard of for corporate leadership to recklessly reward themselves and other investors at the expense of long-term business interests. So make sure you evaluate a company’s whole picture. If dividend payments take place in the context of weak leadership or an atmosphere of poor judgment, pay attention.

Otherwise, dividends can show that the company has strong revenue, good cash reserves and a handle on its debt, and that it expects this situation to continue. Especially if the economy enters recession, that’s an excellent signal for fundamental value. It suggests that this company can be a good long-term investment, regardless of current share prices.

Inflation Hedge

Finally, dividend stocks have historically been an excellent hedge against inflation.

Dividend-paying stocks tend to make up an enormous portion of the stock market’s return during periods of high inflation. One analysis by Fidelity found that when inflation was at 5% in the 1940s, 1970s and 1980s, dividends made up 54% of the S&P 500’s overall returns. This is in large part because companies can adjust their dividend payments on a quarterly basis, letting them keep up with the changing value of money.

In an atmosphere of ongoing inflation, dividend stocks are historically a strong choice.

Where to Focus Your Attention

For active stock pickers who would like to pursue a defensive dividend strategy, Morgan Stanley recommends four key areas of investment:

  • Industrials: Manufacturing and logistics firms are likely to benefit from increased infrastructure and defense spending, according to Morgan Stanley.
  • Health care: Medical firms have tended to outperform the market in past recessions, and are poised to take advantage of new technologies.
  • Consumer goods: Morgan Stanley expects these firms to raise consumer prices and recover well from high commodity prices over the past year.
  • Global stocks: Investing in global high-dividend stocks can allow investors to diversify their portfolios and capitalize on the momentum in this area.

When you look for dividend stocks, be somewhat judicious. In particular, be careful of stocks with yields that are too high, Skelly advises. This can signal an imbalance between the stock’s share price and its dividend payments, suggesting high payments that the underlying business may not be able to sustain.

Also, look at the stock’s price-to-earnings (P/E) ratio. Despite concerns over bear market territory, investors are also worried that many of the market’s high-performing stocks may be overvalued relative to the company’s underlying earnings. In those cases, investors can often expect the stock to lose value, and to lose value particularly quickly in the event of a recession.

Bottom Line

Many investors are worried about a recession in late 2023. To insulate your portfolio, Morgan Stanley recommends investing in dividend stocks to take advantage of their historic stability and potential for outsized returns in down markets. Active stock pickers who wish to pursue this strategy may consider dividend stocks in the industrial, health care and consumer goods sectors.

Dividend Investing Tips

  • If you need help investing in dividend stocks or want more guidance when it comes to your whole portfolio, consider speaking with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Interested in dividend investing? You’ll want to familiarize yourself with how dividends are taxed. The exact dividend tax rate you pay varies by the type of dividends you have: non-qualified or qualified. Here’s everything you need to know about dividend taxes.

Photo credit: ©iStock.com/Cn0ra, ©iStock.com/kate_sept2004, ©iStock.com/pigprox

Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.

Source: smartasset.com

Apache is functioning normally

Just because you have Multiple Sclerosis doesn’t mean you can’t get life insurance.

While MS, an unpredictable autoimmune disease, will make it more difficult to get insured, many people with this condition have bought life insurance.

Whether you can qualify is based on the severity, how long you’ve been sick, and your overall health. Even if you don’t qualify for standard life insurance, there are other options such as guaranteed graded benefit life insurance policies that you can be approved for even if you have Primary Progressive Multiple Sclerosis or Secondary Progressive MS.

We’ve put together an explanation of the underwriting standards for MS. With this information, you can see what to expect when you apply for insurance as well as learn how to increase your chances of getting a fair rating.

You can also get the easy quoting process started by completing our Compare Quotes form on this web page, and let us help you find the best company for MS patients.

Life Insurance Underwriting for Multiple Sclerosis

When you talk with a life insurance adviser on the phone to apply for insurance, he or she should ask you about your MS. You should expect to answer:

  • How old were you when you were diagnosed with MS?
  • How many attacks like seizures have you had in total?
  • When was the most recent attack?
  • What treatments have you undergone for your condition?
  • How did you respond to past treatments? Has your condition gotten better or worse over time?
  • Do you currently smoke cigarettes?
  • What medications are you taking for your disease?

Standard prescriptions for Multiple Sclerosis include:  Corticosteroids, Beta interferons, Copaxone, Gilenya, and muscle relaxants. These prescriptions won’t automatically get you declined depending on your MS. Some of these prescriptions are daily tablets, while some are either injections or infusions.  It is important to constantly meet with your medical provider, and to try to keep your MS under control and hopefully in a state of remission.

If you have other medical conditions, also continue to keep those conditions under control with medications if necessary.

Be sure to provide all information you have about your condition. Insurance underwriters get nervous when they are missing information about a disease.

If you don’t clearly describe the state of your MS, you increase the chance that your application will be rejected or will result in a bad rating. With MS you do fall into an Impaired Risk Category to life insurance companies.  Typically the four courses of Multiple Sclerosis are as follows:

  1. CIS – Clinically Isolated Syndrome – this occurs during the first time of neurologic symptoms that last 24 hours and is caused by inflammation in the central nervous system, and can be either monofocal or multifocal. There is usually almost always some type of recovery -either partial or complete.
  2. RRMS – Relapsing Remitting Multiple Sclerosis – this is the most common course – and has specifically defined attacks of new or increasing neurologic symptoms. Someone during this course can also be classified as active or not active, and worsening or not worsening depending on the degree of disability.
  3. SPMS – Secondary Progressive Multiple Sclerosis – SPMS is normally the second course, or phase, of MS.  Generally people diagnosed with RRMS will eventually transition to SPMS, and further be classified as active or not active, and with or without progression.
  4. PPMS – Primary Progressive Multiple Sclerosis – this course is generally more difficult to diagnose and treat than RRMS and SPMS. There are more lesions on the spinal cord than in the brain, and makes it more difficult to walk and keep down a job. This course affects women and men the same.

Life insurance companies look at various aspects of MS differently from each other, and their underwriting guidelines will also be different.  That is why it is important to let a life insurance adviser with experience with MS to help you get the lowest life insurance premiums for your condition.  We have companies such as Protective, MetLife, Banner Life, Transamerica, Prudential and other life insurance companies who are willing to underwrite applicants with MS.

As independent brokers, we represent multiple insurance companies to get you the best quote.  Just complete the brief Compare Quotes form on this page.


 #ap5056-wwfont-family:Archivo,sans-serif#ap5056-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap5056-ww #ap5056-ww-indicatortext-align:right;color:#4a4a4a#ap5056-ww #ap5056-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap5056-ww #ap5056-ww-indicator-wrapper:hover #ap5056-ww-textdisplay:block#ap5056-ww #ap5056-ww-indicator-wrapper:hover #ap5056-ww-labeldisplay:none#ap5056-ww #ap5056-ww-textmargin:auto 3px auto auto#ap5056-ww #ap5056-ww-labelmargin-left:4px;margin-right:3px#ap5056-ww #ap5056-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap5056-ww #ap5056-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap5056-ww #ap5056-ww-text-bottommargin:5px#ap5056-ww #ap5056-ww-textdisplay:none#ap5056-ww #ap5056-ww-icon imgtext-indent:-9999px;color:transparent

Ads by Money. We may be compensated if you click this ad.Ad

Life Insurance Quotes with MS

When you’re shopping around for life insurance as an applicant with MS, insurers will rate the severity of your condition as mild, moderate or severe. A mild case has infrequent, rare attacks and caused no disability. A moderate case causes attacks that happen more frequently but has not caused disability. A severe case causes someone to be in a wheelchair or bedridden.

In addition, insurers will look at the time since your diagnosis. More time is better because it makes it more clear how severe your condition is. While each insurance company uses a different rating system, here are some general underwriting rules for MS so you know what to expect before applying.

  • Preferred Plus:  Impossible for MS. There are no insurance companies who offer these rates to people with MS.
  • Preferred:  Nearly impossible, happens in very rare cases. To qualify, you must have been diagnosed when you were younger than 35, your MS must be mild, it must have been at least five years since your last attack, and you must be in perfect health otherwise. Even in this ideal scenario, the odds of getting a preferred policy are still low.
  • Standard:  Probably your best possible rating. To qualify, your MS must be mild, it must have been a few years since your last attack, and you are in good health otherwise.
  • Table Rating (substandard):  This is where a lot of MS applicants end up. Depending on the severity of your MS, the length of time since your diagnosis, the length of time since your last attack, your age when you were diagnosed, whether you are showing any improvement due to treatments, and your overall health. Also it doesn’t help if you smoke cigarettes or have other serious medical conditions like diabetes, or heart problems.
  • Declines: Most applications within a year of an MS diagnosis. Insurers need more medical history to make a decision. Also applicants with severe MS have a high chance of a decline. If you are not seeing a doctor regularly and are not treating your condition, you could also get declined.

Keep in mind that if your MS has progressed to the most serious stage, and you are declined by life insurance, then you do have the option of looking at the Guaranteed Issue life insurance.  Even though the premiums are high and the death benefit may be low, it is still an option if you are looking at coverage to help pay funeral costs or to pay off medical bills. Mutual of Omaha life insurance company is one of the companies we sometimes use in a situation like this.

One of the reasons life insurance companies are concerned about issuing life insurance to consumers with MS is that one of the most commons symptoms of Multiple Sclerosis patients is clinical depression.  Studies have shown that this type of depression is one of the most serious forms, and can lead to an increased percentage of suicide.  Life insurance policies typically do have a 2 year contestability clause that has a suicide exclusion.

Multiple Sclerosis Insurance Case Studies

With MS, a little planning ahead of time makes a big difference for your life insurance application. Here a couple real life situations that show how important it is to be prepared.  Also consider who would be your best beneficiary before applying.

Case Study #1: Male, 42 y/o, non-smoker, diagnosed with MS at 34, mild case, last attack was at age 36, not taking any medications, no other health issues.

Besides his MS attacks several years ago, he didn’t have any serious health problems. He went through all the treatments his doctor recommended and lived a very healthy lifestyle. This helped keep his condition under control so he hadn’t had an attack in over six years. When he went through the application process, he got rated policies at higher rates.

This is because insurers didn’t get enough information about his condition. We recommended he ask his doctor to write a letter describing how his MS was under control and that the applicant was in great health. He did this and he was able to get a preferred policy.

Case Study #2:  Female, 57 y/o, non-smoker, diagnosed with MS at 51, moderate case, missed scheduled treatments for a few years, started seeing her doctor regularly recently and getting proper treatment  

When this applicant first was diagnosed with MS, she did not do a good job managing the disease. She missed treatments and didn’t see her doctor as often as was recommended. Two years ago, she started following her doctor’s orders and followed the proper treatment for her condition. She applied, and then she was denied.

This was because insurers saw her poor treatment history on her medical records. We suggested she ask her doctor if he had fully updated her medical records. He hadn’t.  When he entered in the updated information, the applicant reapplied. After she did this, she got a rated policy.

While your MS will make it more difficult to get life insurance, it is still definitely possible. You just need to be smart about your application. One way to increase your chances of getting insured is to partner with an insurance agent who is an expert on life insurance with MS.

Source: goodfinancialcents.com

Apache is functioning normally

First off, here are my 2018 predictions in case you want to see how they panned out.

Overall, I think I did alright, though my call for the 30-year fixed to end 2018 at 4.5% didn’t quite materialize.

There’s actually still time for that to happen thanks to a late rally, but it’s doubtful. Anyway, let’s get to those 2019 predictions…

1. Mortgage rates will only rise moderately, if at all

Sure, mortgage interest rates will probably increase somewhat in 2019, but it’s doubtful we’ll see anything close to the carnage we saw in 2018.

The silver lining to all the movement this year is less next year, or at least that’s the hope.

We’ve already seen some pullbacks in late 2018 thanks to the ongoing trade war and concerns of an impending recession, which could force the Fed to pump the brakes on future rate hikes.

Similarly, traders may ditch stocks and head for safe haven bonds, which would push down yields and ideally trickle down to lender rate sheets too.

Regardless, mortgage rates remain attractive when you look at historical levels, especially since home prices are still below peaks in many metros seen during the last boom.

I personally don’t see higher mortgage rates being a roadblock for most folks, though it’s obvious they can reduce overall home purchasing power.

That just means looking for cheaper homes, such as those in the suburbs instead of the big city. Or hoping for a raise at work. Or a larger down payment.

Here is the 2019 mortgage rate forecast for more on that.

2. ARMs will grab a 10%+ market share

That being said, I do expect a more meaningful shift to adjustable-rate mortgages in 2019. I’m talking 10%+ share as opposed to the current 5-7%.

This could be existing homeowners tapping equity and going with an ARM to avoid a big payment shock as their loan amounts rise.

And also new home buyers opting for cheaper financing in the face of the big, scary 5% 30-year fixed mortgage rate.

If they’re able to snag a 5/1 or 7/1 ARM in the 3% range, it might feel like the better move, especially if it’s not a forever home.

Remember, homeowners move a lot more frequently than every 30 years, so alternative loan programs may be a more ideal fit.

3. Home prices will keep going up (no bubble)

We’ve seen a lot of pessimism in 2018 and talks of a market top or near-market top, but I disagree.

Is real estate in a bubble? Nope. If anything, I’d call it growing pains as buyers and sellers recalibrate.

Sure, it’s not going to be a bidding war every time, but home prices should continue to rise in 2019 and beyond. We’ll just see smaller percentage gains, but still gains.

In other words, instead of prices rising 10% year-over-year, they might only rise 4-5%, depending on the metro in question.

Of course, not all markets will continue to see gains in 2019, and the seller’s market may tip toward a buyer’s one in some areas, or at least level out.

But with today’s crop of homeowners in great equity positions and boring old fixed-rate mortgages, there’s no real catalyst to cause a bubble burst.

A decade ago, the real estate environment was completely different. Most homeowners had the worst ARMs you could dream up, zero home equity, and many shouldn’t have even owned properties to begin with (had proper underwriting actually existed at the time).

4. We will see a strong spring home buying season

If you’re in the market to buy a home in 2019, expect another tough go at it. As noted, home prices will probably keep chugging higher.

And competition, while perhaps not as fierce, will remain, especially in the more popular areas of the country.

Even if inventory creeps up slightly, I don’t expect sellers to flood the market thanks to issues like a lack of move-up inventory and the mortgage rate lock-in effect, whereby they don’t want to forego their low fixed rate.

At the same time, plenty of Millennials are coming of age and looking to buy, despite the higher rates and prices. And if anything, these apparent headwinds can serve as motivation (urgency) to buy sooner than later.

The difference in 2019 might be that the seller trying to unload a property for top dollar that hasn’t been renovated in 30 years might be in for a rude awakening.

But sellers with nice homes in desirable areas should continue to see lots of demand.

5. Millennials will buy, old-timers will cash in

I expect Millennials to account for the lion’s share of home purchases in 2019. Many individuals in this beloved generation are at that prime buying age of 30 or so.

And a lot of them are looking to buy real estate, even if they’re not married or having kids. This demand will ultimately be good for the market, but perhaps not great for them.

For one, inventory will still be a problem next year, especially in the starter-home category, and it’s no secret home prices aren’t all that attractive at the moment.

While they might not get the best price on their first home, they’ll at least get a relatively good mortgage rate.

Those who are looking to sell a home will increasingly need to cater to the Millennial buyer – that means smart design, loads of technology inside the home, cool outdoor spaces, and close proximity to independent restaurants, bars, and coffee shops.

If you want to sell your house for top dollar, you’ll need to get rid of the doilies and the oversized curtains, oh, and also the granite countertops. Quartz please.

I expect long-time homeowners to continue to cash in and downsize/move elsewhere to realize the massive gains seen over the past several years.

Lenders and real estate agents who want their business will need to approach it differently as well, with more of a focus on technology and convenience.

If you’re using a phone to make contact, it’s probably wise to text as opposed to call.

6. Cash out refis, HELOCs, and similar home equity offerings will gain in popularity

The narrative continues to be “no one wants to lose their low mortgage rate,” but life happens.

And so I expect plenty of homeowners to start tapping into all that equity they’ve accrued over the past five or so years.

We’re going to see rate and term refis plummet, but cash out refis get a lot more popular with existing homeowners.

Same goes for HELOCs, home equity loans, and new alternative products where homeowners share in future appreciation for payment-free equity access.

I also expect more companies to pitch their home equity products a lot harder, and for others to introduce them in 2019.

If rates come down we might see a real surge in cash outs…

7. More non-QM and outside-the-box originations, looser underwriting

At the same time, I expect mortgage underwriting standards to loosen a bit more as the pool of eligible buyers and refinancers wanes.

Whenever there’s a lull in new business, lenders will begin digging a bit deeper to find the prospects they may have ignored when the sun was shining.

The non-QM space seems to be buzzing as more originators migrate to companies that can do more than the run-of-the-mill banks and lenders.

Perhaps they’ll pick up the slack, or force conventional lenders to widen their credit box to include more nonconforming stuff.

That could eventually be a bad thing if we slip back into the wild west days of a decade ago.

8. More disruptors in the mortgage and real estate space

We’ve seen a ton of companies disrupt the mortgage and real estate industries, and they will probably be even more prevalent in 2019.

I anticipate more new startups will emerge with clever ways to do things faster and easier, perhaps at the expense of human beings.

The digital mortgage will get more real and commonplace, and just about everyone will be using technology like real-time income and asset verification.

This should shorten the lengthy loan process and reduce fraud, with less ability to game the system when data is being pulled directly from the source.

I also expect more home sellers to use discount real estate brokerages like Redfin, or sell to iBuyers like Opendoor and Offerpad.

9. Mortgage layoffs will increase

Sadly, with lower loan volumes expected in 2019, mortgage lenders will be forced to adjust staffing levels accordingly. This may be seen in both sales and operations, with less need for all positions.

We’ve already seen a wave of layoffs in 2018, and there’s a good chance we’ll see the same thing next year too.

Part of this will have to do with volume, and part of it will have to do with those new technologies mentioned.

If lenders are forced to work more efficiently in light of lower profits, there’s a greater chance they’ll embrace tech.

10. Mortgage lenders will either merge or close their doors

While it’s not going to be 2007 or 2008 all over again, I do expect a greater number of mortgage lenders to close their doors in 2019, especially those that rely mostly on refinances.

Over the past several years, lenders have scurried to forge partnerships with real estate companies and agents, knowing home purchase applications will be king for the foreseeable future.

Sure, cash out refis will make up some of the lost ground given up by the lack of rate and term transactions, but it won’t be enough for companies focused solely on the refinance market.

This should also lead to consolidation in the industry with bigger lenders scooping up the smaller ones, which could result in a more concentrated market share at the top, as per usual.

Whether Amazon Mortgage materializes is another question…here are your top purchase lenders by the way.

Bonus: More home buyers will migrate out of state

Thanks to swelling affordability woes, we’ll see more buyers pack their bags for cheaper pastures. This was common back in 2006 and 2007 during the height of the last housing boom.

And if prices and rates keep going up, some will find it easier just to relocate as opposed to paying through the nose for a property that isn’t even ideal.

For example, Southern California renters may head east to Arizona or Texas, while Bay Area residents may find life more affordable in Portland.

Smaller cities may also see bigger home price percentage gains as home buyers flock inland or away from large metros in search of better opportunities.

(photo: Marco Verch)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Real estate brokerage Compass has launched a unique new offering known as “Compass Bridge Loan Services” that solves the buy before you sell conundrum.

Many existing homeowners buy replacement properties when selling their current ones, but it can be tricky to time a sale and purchase concurrently.

Aside from mortgage lending issues, like coming up with a down payment and balancing two monthly mortgage payments, there’s also the other buyer/seller to worry about.

This can be especially challenging in a hot market where all-cash offers are the norm, or if competition makes things like contingencies hard to draw into the contract.

To alleviate these pressures, Compass has joined forced with two large mortgage lenders, Freedom Mortgage and Better, to help their home sellers get a bridge loan.

How Compass Bridge Loan Services Works

  • Sign listing agreement with a Compass real estate agent
  • Apply for a bridge loan with any bank, including their preferred lenders
  • Use funds to purchase replacement property and move in when you want
  • Sell old property and use proceeds to pay off the bridge loan

First, the home seller signs an exclusive contract with a Compass real estate agent to sell their existing home.

Next, they apply for a bridge loan with the bank of their choice, including Compass’ vetted lenders Freedom Mortgage and Better.

Those two lenders can apparently get the job done fast, as time is often of the essence in situations like these.

For the record, Better isn’t available to customers in MA, NH, VA, and VT, but Freedom Mortgage is available nationwide.

Anyway, once approved for the bridge loan, the home seller can move into their new home using the proceeds for down payment or to simply make monthly housing payments.

To sweeten the deal, Compass agents can “front” the first six months of bridge loan payments to keep liquidity a non-issue for the cash-constrained homeowner.

Sell with Compass Concierge to Fetch a Higher Price

  • The company also offers a no upfront cost renovation service known as Compass Concierge
  • Property is prepped and renovated before being listed to get top dollar
  • And to ensure a quick sale without languishing on the market
  • Seller only pays for renovations at closing once home sells

In the meantime, a Compass real estate will work to sell the homeowner’s former property.

This may also include Compass Concierge, which is very similar to Curbio in that you can renovate your home before listing and pay the repair costs at closing.

Like Curbio, they’ll recommend what should be done to get the property up to snuff, including new floors, deep cleaning, roof repairs, bathroom and kitchen improvements, painting, and more.

The changes are aimed at improving the property value and making it sell quicker, which could reduce the time you’ve got that bridge loan open.

Speaking of, interest rates on bridge loans are notoriously higher than traditional loans because they’re only intended to be kept for a short period of time.

As such, you won’t want to keep it very long in order to protect your hard-earned money, so this type of service only works for someone looking to make a quick transaction.

The question you need to ask is if the cost outweighs the benefit – it may turn out to be cheaper to sell contingently without the bridge loan.

So be sure to do the math and run some scenarios to ensure you’re going down the right path.

Of course, there are intangibles to consider as well, like missing out on your dream house if the sellers aren’t interested in waiting around for your old home to sell.

From Compass’ perspective, it appears they’re looking to compete with all the disruptors entering the real estate space, including iBuyers like Opendoor, RedfinNow, and Zillow Offers.

These companies will buy your house and even let you trade it in for a new one, completely removing the typical obstacles associated with buying and selling homes at the same time.

Compass has already rolled out the bridge loan service in select markets nationwide and early feedback has apparently been “overwhelmingly positive.”

Source: thetruthaboutmortgage.com

Apache is functioning normally

Free enterprise is an economic system where businesses are privately owned and operated for profit. This system is based on supply and demand, and business competition drives innovation and growth.

The benefits of the free enterprise include increased prosperity, higher living standards, more choices for consumers, and greater opportunity for entrepreneurs. The history of free enterprise can be traced back to the Industrial Revolution in Europe, when new technologies led to the rise of capitalism.

In America, the Founding Fathers enshrined the principles of free enterprise in the Constitution with laissez-faire policies that allowed businesses to flourish.

Today, countries worldwide have adopted various forms of free market economies with varying degrees of success. So how does free enterprise work?

Essentially, it provides a level playing field where anyone can start a business and compete against others without government interference or favoritism. This encourages entrepreneurship which leads to job creation and economic growth.

Additionally, consumers benefit from increased choice as companies vie for their business by offering better products at lower prices.

What’s Ahead:

What Is Free Enterprise?

In a free enterprise, businesses can produce and sell whatever they want if they don’t break any laws. This system is based on private ownership and free competition.

This system is different from socialism or communism, in which the government owns businesses and decides what to produce. In a free enterprise system, businesses compete to attract customers.

This competition can lead to lower prices and better products or services and motivate businesses to be more efficient and innovative.

The free enterprise system has helped create a prosperous and free society and lifted millions of people out of poverty.

The Gist: In a free enterprise system, businesses can produce and sell whatever they want as long as they follow the law. This system is based on private ownership and free competition.

The Benefits of Free Enterprise

This competition drives businesses to be innovative and efficient, which benefits consumers through lower prices and higher-quality products and services.

In addition, free enterprise promotes economic growth and job creation. Businesses are free to expand and hire workers, which helps to grow the economy and create jobs.

Finally, free enterprise fosters political and social freedom. When businesses are free to compete, they are also free to speak out and advocate for their beliefs.

This promotes a healthy exchange of ideas and allows for diverse opinions.

The History of Free Enterprise

It is a system in which businesses are free to compete with each other for profit without government interference or regulation.

The history of free enterprise can be traced back to the days of the early American colonies. At that time, the colonies were mostly agricultural, and the colonists could farm their land and sell their products as they saw fit.

There was very little government involvement in the economy, and the colonists were free to pursue their economic interests. As the colonies began to industrialize, the concept of the free enterprise took on a new meaning.

Businesses began to spring up, and competition among them increased. The government began to play a more active role in the economy, regulating businesses and protecting consumers.

But the basic principle of free enterprise remained the same:

Businesses should be free to compete with each other without government interference. Today, free enterprise is still the cornerstone of the American economy.

Businesses of all sizes compete to provide goods and services to consumers. The government regulates businesses to protect consumers and promote competition.

And most importantly, businesses are still free to pursue their economic interests. Free enterprise is a vital part of the American economy, and its history is long and proud.

The Gist: The key takeaway from the above is that free enterprise is a vital part of the American economy, and its history is long and proud.

How Does Free Enterprise Work?

How does free enterprise work?

This competition drives businesses to be efficient and innovative, which benefits consumers by providing them with more choices and better products and services.

A free enterprise is based on three key principles:

Private property rights, voluntary exchange, and competition. Private property rights protect the ownership of businesses and the things they produce.

This means businesses can keep their profits and reinvest them to grow and create jobs. Voluntary exchange is trading goods and services between two people or businesses.

This is the heart of the free market, ensuring both parties are better off after the trade. Competition is the process of businesses striving to outdo each other to win customers and market share.

Competition drives businesses to be efficient and to offer better products and services at lower prices. The free enterprise system is the best way to create prosperity and opportunity for all.

It allows businesses to flourish and create jobs while giving consumers more choices and better products and services.

The Gist: In a free enterprise, businesses compete for customers and profits, which benefits consumers by providing them with more choices and better products and services.

FAQs about What Is Free Enterprise

What does free enterprise mean?

There is no one answer to this question, as the meaning of free enterprise can vary depending on who you ask.

In general, free enterprise is an economic system in which businesses are privately owned and operated for profit and where there is little or no government involvement or regulation.

What is a free enterprise example?

A free enterprise example is a privately owned and operated company that is not subject to government control.

What is a free enterprise class?

A free enterprise class is a class in which students learn about and discuss the principles of free enterprise.

Conclusion

Overall, free enterprise is a system that has proven beneficial for businesses and consumers, and it encourages entrepreneurship and innovation while providing increased choice and prosperity for all.

So what is free enterprise?

It’s the backbone of America’s economy, which we should all support!

Source: moneyunder30.com

Apache is functioning normally

Recently, I went to the state license office. When I was called up to the worker’s desk, I was asked to say my address, along with my name, age, and social security number. They wanted me to say ALL OF THIS out loud in a crowded room.

If someone was paying attention, they could have taken down my information and done serious damage. I asked if I could write my information and show it to him instead, and while they were not too happy with that, he agreed (he gave me the paper back, so I was able to shred it). The person that my husband had didn’t ask him to say his information out loud and he was given a form to fill, so I’m not sure why I wasn’t given that as my first choice as well.

If I wasn’t careful, this could have led to me becoming a victim of identity theft. Little mistakes or even something that is no fault of your own may lead to you becoming a victim of identity theft as well.

Sadly, identity theft impacts over 16 million people each year and that number is expected to keep growing.

I’ve been a victim of identity theft and I know it’s a huge headache. Even when you are extremely safe with your information, identity theft can still happen.

If you do find yourself to be a victim of identity theft, there are actions you can take to repair the situation as best as you can. This way you can get your credit score back to normal (or as close as possible), eliminate fraudulent expenses, get your life back, and more. You will want to do this as soon as possible though, so keep that in mind!

Record all actions you take.

Before we go into the main steps that you need to take in order to prevent more identity theft from occurring, you should always keep a record of everything you do.

Keeping a good record is important because you may need to show someone later (such as a credit company or a lawyer) the steps that you took to clear your name. Plus, something may get lost!

According to the FTC, you will want to:

  • Log the date, names and telephone numbers of each person you contact about your identity theft;
  • Send all letters about the situation via certified mail and receive a return receipt;
  • Keep all originals of any documentation that is needed.

Pull your credit report.

If you believe that your identity may have been stolen and that you may be a victim of identity theft, it’s a wise idea to check your credit report to see if any other errors or theft are listed.

You will have to continue to check your credit report on a regular basis (I would check it a few times for a full year after you noticed any identity theft, then at least once a year after that), to make sure that your identity is safe.

Related: Phone Scams: The Best Tips To Avoid Becoming A Victim

Contact the company where your identity was stolen.

In many cases, you may be able to directly contact the company where your identity was stolen. This way you can get the situation resolved, close your account, or whatever needs to be done to stop the identity theft.

If it was something such as your credit card information was stolen, you will be given a new credit card number to prevent any other theft.

The maximum you can be charged under the Fair Credit Billing Act for unauthorized charges is $50, but many companies don’t charge anything.

For bank charges under the Electronic Fund Transfer Act, you may be charged up to $50 as long as you report the fraud within two days. If you wait between 3 to 60 days, then you may be charged up to $500. After 60 days you may have to pay EVERYTHING that is charged under your name.

They key here is to report any fraudulent activity immediately.

Related article: Do You Have A Financial Emergency List?

Contact credit reporting agencies.

The next step you will want to take is to contact the credit reporting agencies so that they can be aware that your identity has been stolen. Ask for a fraud alert to be placed on your credit file so that you can be alerted if anyone tries to do anything with your identity.

The three credit reporting agencies are Equifax, TransUnion, and Experian. Fraud alerts last for 90 days and you can renew after that.

Place a freeze on your credit report.

If you would like to, an extra step you may be able to take is to ask the credit reporting agencies if a freeze can be placed on your credit file. This will then prevent anyone from using your credit report or credit score without direct permission from you. If anyone does try to use your credit file, the application will be immediately declined.

Keep in mind that if you do this, you will have to contact the credit reporting agencies before you need your credit so that they can lift the freeze in time.

Dispute incorrect information on your credit report.

If there is something wrong on your credit report, you should always dispute it.

You may have to send a letter to the credit agency, to the fraud department of where the identity theft took place, and provide proof of the theft, but it is well worth it to clear your name.

Whatever you do send in, keep a record and all original documentation just in case you need the information in the future.

File the identity theft with the Federal Trade Commission.

Another step you should take when it comes to identity theft is to file a report with the FTC. This way it is on file and they may be able to provide even more up-to-date tips on what to do next.

Report the identity theft to the police.

While the police department may not be able to do much usually when it comes to an identity theft case, having it reported is a small step that may go a long way.

You never know if a police officer may come across someone who has all of your information on them (I have actually heard of this happening and the person was arrested because they had a book full of stolen identity information). Also, you will need a police report filed if you plan on reporting identity theft to the FTC.

Have you ever been a victim of identity theft? What happened?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

By Peter Anderson 11 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited July 14, 2017.

Our economy is in a downturn, investments are tanking, and every day the market reaches new lows. It can be hard to stay focused through it all and not panic. Unfortunately it seems like most investors in the market HAVE panicked already, and their fear is self-fulfilling. They’re afraid the market will tank, so when they all panic and sell, it DOES tank.

If you want to retain your sanity during these hard times, there are a few things that you shouldn’t do.

credit: dipfan

7 Things You Shouldn’t Do In An Economic Crisis

  1. You shouldn’t listen to the media:  Remember the old saying, “If it bleeds, it leads”.  The media will report the bad news first, and often gloss over the good or encouraging news.  Try not to take the news reports too seriously as good reporting is becoming harder to come by.
  2. You shouldn’t forget to be positive: If you can’t stay positive, and look at the silver linings of a situation, your feelings of loss and panic will start to surface. Remember that money doesn’t bring happiness, and that the market will rebound.  It may not happen as quickly as we’d like it to, but it will come around.
  3. You shouldn’t continuously check your 401k:  If you’re like me, you can’t resist the urge to be constantly checking your 401k every day.  The DOW dropped 400 points?  Oh my gosh, I wonder how much money I lost today!  Resist the urge to keep checking your balance.  Make sure you have good diversification and good allocations, and then set it and forget it.
  4. You shouldn’t count on the government to help you: Don’t waste your time waiting around for the government to turn things around, bring you a bailout plan, and turn things around.  Things will only get better for you if you make things better yourself.   Create your own bailout plan, make some extra income and make a plan to succeed!
  5. You shouldn’t stop investing for retirement:  The old investing adage says, “Buy low, sell high”.  The markets are tanking right now, so you’ll probably be able to find some investments in good strong companies at a fraction of their normal price.   Buy it while it’s low!
  6. You shouldn’t try and time the market: It’s a fools game to try and time the market.  It’s impossible to know when the market is at it’s lowest, and when it’s at the highest.  I thought it was at the low point the other day, and its dropped over a 1000 points since then. Don’t try to beat the market.  Invest for the long term.   Put together a nicely diversified portfolio,  and then let it ride.
  7. You shouldn’t forget that it’s only money: No matter how bad things get, remember  that the sun will rise tomorrow.   Even if you lose it all, your heavenly father will still take care of you.   “Therefore do not worry about tomorrow, for tomorrow will worry about itself.  Each day has enough trouble of its own. Matthew 6:34”

Remember, this country has gone through hard times before, and we have always come out of it sooner or later. I have no doubt that this time will be the same.

So what are some things that you are going to try not to do during this economic crisis?

Related Posts

Source: biblemoneymatters.com

Apache is functioning normally

You are getting closer to age 60, you start to seriously consider what’s going to happen to your family after you’ve passed on.

It is never too late to obtain life insurance although there is certainly no better time than the present. You will most likely find that there are still options available to you at this point in your life.

Life Insurance at Age 58

At age 58, you can still obtain very reasonable rates on life insurance. Even if you are not in good health, we have some guaranteed issue plans available to you.

One of the most important things to consider when shopping for life insurance at age 58 is the importance of determining who to name as your beneficiary? Your spouse or your children or a charity? Be sure and discuss this with your tax adviser.

Why Would a 58 Year Old Want to Buy Life Insurance?

In our experience, we have seen a frequency where folks have waited until buying or changing their life insurance until they were 58 years old. Here are the top reasons given by our clients:

  1. One or more of their parents have passed away and have either left them life insurance proceeds or didn’t leave them with life insurance proceeds. This makes them begin to re-evaluate their own situation.
  2. The need for term life insurance is no longer an issue. Maybe the home mortgage or other debt has been paid off and/or there is no longer a need to save for a college fund for the kids.
  3. There is a greater concern to have enough life insurance to pay final expense costs throughout the remainder of the life, even to age 80 or 90. Typically this would require some type of permanent life insurance.
  4. There is a realization that Social Security benefits might not be enough on going income for a surviving spouse to live on.
  5. One of the family members is retiring, and just realized they will not have any life insurance since they might have only been covered at work.
  6. The client may be in a good enough financial situation now to consider taking out a life insurance policy to the benefit of their favorite charity. In this case the life insurance premiums could be a tax deductible donation.
  7. And last, our client has either retired from their lifelong work and is borrowing money to start their own business, or is still working but finally able to buy out a business partner or former employer.

Obviously it is good to look now, even though every year you wait, the life insurance premiums begin to increase.  Regardless of what you have or haven’t done in the past, take care of your loved ones today and get your life insurance situation taken care of.

What are Your Options for Life Insurance at Age 58?

This day in age, you will find that your resources for information are endless. With the internet at your disposal, there is never a better time to shop and compare rates on life insurance. You can do this yourself and spend a lot of time and energy, or take the convenient route and let us get the lowest rates from different companies for you.  Just complete the quote form on the right side of this page.

The advancement of technology has brought about an even playing field for many industries and life insurance is certainly one of these. We are independent agents and are constantly looking to represent the companies with the lowest rates.

The two popular choices are term life insurance and permanent life insurance. Term insurance is the standard choice for coverage. Term life insurance is extremely affordable.  If you live past the initial term that you chose, for example, a 20-year term policy, then the rates will begin to increase in year 21.  The rates should be guaranteed to be the same rates for the first 20 years.

The other type of insurance available to you as a 58 year old is permanent insurance, which could be either whole life insurance, or universal life insurance. This type of insurance is permanent and lasts until a claim is made on it, or until you stop paying the premium and the cash value runs out. It can be viewed as an asset as it does typically accumulate a cash value over time from which you can borrow against. At age 58, this type of insurance could be expensive unless you are looking at death benefit amounts of $50,000 or less.

Over the last few years, there is what I call a type of a hybrid life insurance plan, which combines the best of term insurance and permanent insurance.  I have also referred to it as permanent term insurance.  This type plan is designed to last until age 100, but is not designed to build a lot of cash value.  It costs more than straight term life insurance, but less than traditional permanent life insurance. For someone at your age, this might be the best choice if you want a higher death benefit (over $100,000), but are not concerned with building up a lot of cash value in your plan.

#ap7687-wwfont-family:Archivo,sans-serif#ap7687-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap7687-ww #ap7687-ww-indicatortext-align:right;color:#4a4a4a#ap7687-ww #ap7687-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap7687-ww #ap7687-ww-indicator-wrapper:hover #ap7687-ww-textdisplay:block#ap7687-ww #ap7687-ww-indicator-wrapper:hover #ap7687-ww-labeldisplay:none#ap7687-ww #ap7687-ww-textmargin:auto 3px auto auto#ap7687-ww #ap7687-ww-labelmargin-left:4px;margin-right:3px#ap7687-ww #ap7687-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap7687-ww #ap7687-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap7687-ww #ap7687-ww-text-bottommargin:5px#ap7687-ww #ap7687-ww-textdisplay:none#ap7687-ww #ap7687-ww-icon imgtext-indent:-9999px;color:transparent

Ads by Money. We may be compensated if you click this ad.Ad

Life Insurance Rates for a 58 Year Old

Giving you samples of quotes is a murky guess. There are so many factors which will change how much you pay. We can only give you a rough estimate of how much you’ll pay.

For a $250,000 20 year term life insurance policy, a 58-year-old male will pay about $89.61 per month. A female will pay about $64.38 per month. You want to get life insurance quotes from the best life insurance companies. You can fill out our Compare Quotes form on this page and we can shop the life insurance market for you and find the lowest rates available in your area.

See the chart below to also view rates for a 10 year term policy and a 30 year term policy.  These rates are also for someone in excellent health wanting $250,000 in death benefits.

Sex 10 Year 20 Year 30 Year
Male Protective – $50.37/month SBLI – $89.61/month Transamerica – $201.03/month

Female Protective – $39.76/month SBLI – $64.38/month Transamerica – $141.53/month

If you aren’t in very good health, then the rate could be over $400 per month for a male, or over $275 for a female.  If you do have health issues, I will tell you it is much better to go ahead and talk with a licensed agent who can get some medical information from you, and then go to life insurance company underwriters to find the best quote for you.

Since rates can vary a great deal, you could end up paying way too much each month trying to do this yourself.  You don’t want to get quotes from agents who only represent one company, because they may not have the best rates for your particular medical condition.

How Life Rates are Determined Based on Health

At age 58, you could still be in excellent health. If this is not the case rates will vary as seen from the above example. If you have had any medical problems in the last few years then you will probably get rated at a lower health rating than someone who has had a clean medical record.

In maybe 10% to 20% of our clients, we find that it is necessary to find cheap life insurance without taking a medical exam as a way to suit their life insurance application needs better at this time.

Obviously, life insurance companies are always running their business juggling the pressures of marketing and growing their premium volumes versus having profitable underwriting results.  This means that they want to write new business and approve as many applications as possible, but at rates that can help them remain profitable.

This means they evaluate each individual’s medical conditions as they relate to life expectancy, and then their actuaries try to determine competitive rates that will maintain their profitability.

Getting Affordable Life Insurance for 58 Year Olds

When you look at rates on life insurance policies for people over 50 there will be a wide range on the premiums.  These differences in price are mostly a result of different types of policies and people being rated differently by the life insurance underwriters.

Seeking out the guidance of a licensed insurance agent is advisable in most cases because they can not only shop all the companies that provide service to your area, they also bring about a wealth of knowledge as to which companies will provide you with the best rates regarding your personal needs.

So if you are a smoker, they will match you up with a company that does the best rates on life insurance for smokers, or if you have had some heart problems, they will know which company views that most favorably.

Source: goodfinancialcents.com