Saturday, December 28, 2019

Certificate Deposits - CD's

Yesterday, I visited my Bank. Bank of America, I thought I had a new savings opportunity that the teller mentioned to me the week before. We were both wrong. Instead, I was gifted with the opportunity to learn about CDs. Certificate Deposits are best used when someone has a lump sum of cash that they don't want to be able to access for a period of time, in return for a sure return.

The rate that I was offered was about 1.6% on the amount required (CDs can require $500-$250,000). The more you have the better your guaranteed return. Unlike stock markets you don't have to worry about the fluctuations in the market. Yes, the extremely gifted and talented can 4/10 times assure themselves a better return that says 1% but what I've learned is that passive safe returns can allow the individual to put their focus elsewhere while growing their base wealth. 

I would recommend educating yourself more on Certificate deposits. Instead of having savings account that you slowly deteriorate the CD can protect you from your own Free will and serve as a Barrier between and your financial future. In order to fulfill my CD obligations I wouldn't be able to touch the money for 13 months. There would be no penalty attached if I did. I would however lose any interest gained in that amount of time. 

Let's remember to play the long game. Wealth may be created in a fashion that seems fast but it is kept by continual commitment to master the game. CD's should an option for all of us, it may not be the best opportunity out there but it is still an opportunity to position yourself.

Thanks for tuning in Be Well, Be sociable, and Share!

Realtor, Entrepreneur, Educator

Sunday, December 15, 2019

Personal Paradigms

Through my own life experiences I've come to realize that a person's Paradigm has everything to do with the outcome of their future. Lets first gain an understanding of what a paradigm is. A person's paradigm is the lense that they see the world through.

 Imagine if my name was Sam. I've been condition to believe that everyone with big ears were mean, greedy and decieving people. Not only do people that fit this description standout to you now because our Reticular activating system will spot them and place the appropriate stigma on them. In effect as soon as Sam see's someone with big ears, my engery towards them shifts to a state of defense. Maybe, I'm insecure of expressing myself, so I speak less or maybe I speak with a lower tone or in a way that isn't true to my nature. Many times we don't even notice it or better yet we hope the other person doesn't notice it. The truth is everyone notices and feels your energy when encountering you. This alone could be the difference between securing a job, a crush or even key friendships. 

Having Paradigms aren't a bad deal. Collective Paradigms can form traditions and they protect us from harm by having a foundational processes that weeds out people or situations we would rather not encounter. But if were looking to grow we cannot sustain the same paradigms that we currently hold. This reminds me of the Benjamin Franklin Quote "We can't solve problems by using the same kind of thinking we used when we created them". 

The only way to change our thinking patterns is to understand different perspectives. We should strive to get to the point that we are decisive in our decison, yet always open to the fact that we could be wrong without personally getting upset at the others person opinion. Successful people appreciate great ideas even if they aren't their own. Being open to the best ideas not only make your experience better but also gives the world a chance to be a better evolving place. A diverse Perspective could be one of the most valuable assets to have in this ever evolving world. 

One book I highly recommend is the Untethered Soul, by Michael A. Singer.

Monday, December 2, 2019

Homeownership and Wealth

In America, one of the surest ways to build wealth is through homeownership. You may have heard that more millionaires are created by owning real estate than in any other investment vehicle. Here's why.

Correlation between Wealth and Homeownership
- People who have a steady job (2 years of employment) and at least a credit score of at least 660 (credit programs may vary from time to time) would be eligible for the benefits of homeownership which are:

a.) A mortgage which provides financial stability for a family. For example, when a downturn happens in the economy jobs are a loss. Those who own their homes are more likely to be able to use their homes to weather the financial storm. Ex.) A car breaks down, a family medical problem occurs or you want to send your kids to college (potentially saving them hundreds of thousands of dollars).

b.) Homeownership appreciates on an average annually at a rate of 3-5%. In most cases, 20% down in a decent location with a conventional loan or even a first time home buyers loan with a fixed-rate mortgage will benefit from market prices rising.

c.) It's Forced Savings: Paying a mortgage month by month is a forced savings mechanism that builds equity while simply occupying a place of your own. Yes, the responsibility will be all on the Landlord but having skin in the game outweighs not having any.  Instead of renting, it strategically makes sense to sacrifice, choose careers based on loan opportunities, and purchase a home for financial security and stability.
d.) Uncle Sam. Cashflow can accumulate faster and larger proportion if it is tax less. Most Americans work in a W2 job. Which is taxed at the highest rate. Securing a home would allow for the person who is working a W2 job to right of their monthly interest payment. Deducting the amount of taxes that are paid at the end of each year (see a tax professional for a more accurate description).
"For those of us concerned with tackling disparities, this season is a chance to reflect on the power of homeownership as a tool for advancing the economic security of more Americans. The challenge we face is opening that pathway to more families, especially those Americans long locked out of this wealth-building opportunity. " - Huff Post