Thomas Skiffington, CRS, GRI, CRB, ABR, ePro, CLHMS, SRES, RECS, CDPE, ECOBROKER
701 W. Market Street
Perkasie, PA 18944
Office Phone: 215-453-7653
Toll Free: 800-440-remax
October 28, 2011 5:40 pm
According to a recent SEI publication, many wealthy parents are waiting until their children are well into adulthood before discussing how they should use their inheritance. In fact, SEI ran a recent survey that showed that just over a third (36 percent) of wealthy parents have discussed their wealth and its implications with their children before the age of 21.
SEI reports that only 16 percent of wealthy families have had that discussion with children before the age of 16. The survey results point to a growing wealth communication breakdown in high-net-worth families—one that many believe is inhibiting the ability of future generations to sustain long-term wealth.
According to the company, their survey—which polled more than 100 individuals representing families with an average net worth of more than $20 million—was carried out by independent research firm Scorpio Partnership. It highlighted a significant communication barrier between current and future generations related to the challenges and expectations of wealth. The majority of those polled (51 percent) said they have strong expectations for how family members use the wealth they will inherit, yet only 19 percent said they have communicated their hopes and fears about wealth to their families. Only 11 percent of respondents believe their children have communicated their hopes and fears about the family's wealth with them.
"There is a communication breakdown in many wealthy families that must be fixed if future generations are going to sustain wealth for the long term," said Michael Farrell, Managing Director for SEI Private Wealth Management. "Parents need to make talking about money a rite of passage with their children. The most successful families talk about finances early and often, making children feel involved, empowered, and better prepared for the future."
The survey showed that when families do communicate about their wealth the results are often positive. Nearly half of those polled (43 percent) described the experience of having their families involved in financial interests as fulfilling or liberating, while slightly more than a third (39 percent) described the experience as challenging, frustrating, or uncomfortable. When families do share information about financial matters it is mostly in informal settings. Seventy-one percent of respondents said family members were made aware of financial interests through general family conversations, while 18 percent said the conversations took place in formal family meetings, and 11 percent were made aware at private bank/investor meetings.
The survey results clearly suggest that many wealthy families lack the level of comfort or tools to effectively communicate on wealth issues with their children. To help facilitate healthier and more frequent family wealth conversations, SEI has compiled the following set of wealth-talk tips. The tips include:
Start Early -- It's never too early to start talking to your children about money. The subject matter and level of detail may change, but it's important to show children you are comfortable and approachable on the topic. Whether it's over a game of Monopoly or about a child's allowance, small conversations early will make the bigger talks you have to have later in life less daunting.
Initiate Conversations with Your Child -- If you wait for your child to start the conversation, it likely won't happen. Many children take a parent's silence on any subject, intentional or not, as a sign that the topic is off limits. Take the initiative to start a money conversation with your kids. It will break down the invisible sound barrier and lead to healthier wealth communication habits.
Communicate Your Own Values -- It's important that children understand their parents' values. Talk about what you want your wealth to do and what expectations you have for your children related to it. Sharing your values will help children embrace their own values and ultimately help create more productive financial behaviors.
Use Everyday Opportunities to Talk -- Money talk doesn't have to be confined to formal settings or family meetings. Talk about the issues and implications in the context of real life. Whether it's paying a restaurant check or monitoring the performance of your investments, use everyday occurrences as teaching opportunities. The frequency and practicality will serve your children better than any formal annual debriefing.
Don't Just Talk, Listen -- Wealth conversations or any effective conversation must be two-way. Don't mistake a lecture for a dialogue. Listen and respond to your children's questions, thoughts, and concerns. If they know you're listening they are more likely to open up, which will make the talks a lot more valuable.
The survey results are part of an ongoing series that SEI has developed in collaboration with Scorpio Partnership to help gain front-line insights on wealth goals, behavior, and issues of ultra-high-net-worth families.
For more information, visit www.seic.com.
October 28, 2011 5:40 pm
Multiple listing. Agreement that allows real estate brokers to distribute information on the properties they have listed for sale to other members of a local real estate organization. Allows the widest possible marketing of those properties. Commissions are split by mutual agreement between the listing broker and the selling broker.
October 28, 2011 5:40 pm
Q: Why do lenders require a down payment?
A: It protects them should you default on the loan, especially if you fail to make payments in the early years of the loan when more is owed on it. Foreclosure, property fix-up, and resale costs could result in a loss on the mortgage loan.
That is a bad situation the lender wants to avoid. So they have historically required cash down payments of 20 percent of a home’s purchase price.
However, if you purchase private mortgage insurance, the down payment requirement can drop to 5 or 10 percent of the purchase price.
Few lenders will lend the full value of a home unless they have special guarantees, such as that offered by the Veterans Administration (VA) under its mortgage assistance program.
October 28, 2011 3:40 pm
When it comes to setting healthy behaviors, many people have the best of intentions. However, due to hectic schedules, stress at jobs and a variety of other influential factors, many of these changes only last a few short weeks.
Most people know what they need to do to improve their health—taking steps like making healthier food choices and maintaining an active lifestyle. It's figuring out how to do these things and fitting these changes into the daily routine that can present the biggest challenges.
It takes 21 days to fully incorporate a new habit. In the grand scheme of things, 21 days is a small time period to make a healthy behavior a part of your life, and the boons are extensive. Maintaining a healthy weight and staying active can help lower risk for developing a number of illnesses, including diabetes, heart disease, hypertension and more.
Make a Plan
To reach your goal, you need a plan. How do you get started? Take these steps:
• Think about what is important to your health. What are you willing and able to do?
• Decide what your goals are. What changes do you want to make? Choose one goal to work on first.
• Decide what steps will help you reach your goal.
• Pick one step to try this week.
Ask yourself these questions to help you shape your plan:
• Why haven't I made this change before?
• What challenges stand in my way?
• How can I work around what gets in the way?
• What's my goal?
• What might get in the way of making this change?
• How can I plan ahead to make it easier to stick to my new habits?
• How will I reward myself?
Making healthy lifestyle choices is hard work. However, once you have your routine down, these healthy habits will become easier and easier to maintain, and the benefits—slimming down, gaining energy, cutting cancer risks, feeling healthier—are more than worth the extra effort.
October 28, 2011 3:40 pm
After a long day at the office or running after the kids, preparing a healthy and delicious meal may seem daunting. When you add in the time it takes to pick a recipe that everyone will enjoy, and go to the store for ingredients, just the thought of cooking a nutritious meal may be exhausting.
Bonnie Taub-Dix, MA, RD, CDN, author of "Read It Before You Eat It," director and owner of BTD Nutrition Consultants and former spokesperson for the American Dietetic Association, believes that cooking with simple and quality ingredients is critical to keeping your health in check.
"Learning to prepare a few quick and healthy meals will help you eat better and motivate you to continue to stay on track," says Taub-Dix.
To help you prepare smart, quick and simple meals your family will enjoy, Taub-Dix offers these tips:
• Use what you like. Pick a few meals that you enjoy eating out and learn to make them at home using fresh vegetables, lean meats and reasonable portions.
• Frozen zone. Stock your freezer with healthy, frozen vegetables and all-natural, lean meats without preservatives so you can always have healthy options on hand. Perdue's new breaded line of chicken, including SIMPLY SMART® Lightly Breaded Chicken Filets, have up to 40 percent fewer calories, 50 percent less fat and 25 percent more protein than the USDA standard for breaded chicken.
• Keep an eye on the details. Make sure to shop at well-maintained stores with quality produce. Ask your local grocer about the temperature settings they use to store refrigerated and frozen items.
• Know your food. Ingredient lists can be hard to pronounce, let alone understand. Try to choose foods that have ingredients that are simple, recognizable and real. If you don't know an ingredient, do some research before purchasing the product.
• Go for lean. One 3-ounce portion of chicken provides a powerhouse of lean protein, with the breast meat being the leanest part of a chicken.
• Refrigerate and freeze ASAP. Select your frozen and refrigerated items at the end of your trip and freeze or refrigerate within 30 minutes of purchasing.
October 28, 2011 3:40 pm
A schedule full of fun events like sports practice, dance recitals, movies and activities can be fulfilling for the whole family, but without a plan, your fun weekend may mean more stress, less playtime.
Recently, Olympic gold medal figure skater and mom of two Kristi Yamaguchi, shared her secret to busy family fun with Smucker’s® Uncrustables. "Like so many parents, it can be a challenge to keep my active family organized, especially on the go," says Yamaguchi. "I am thrilled to share with other moms and dads my favorite tips for unstoppable families."
1.) When a busy day has you skating from one activity to the next, it's important to be prepared. Bring along a backpack with everything you might need for your on-the-go day, including handheld snacks, like fruit, water, sunscreen and easy activities for down time.
2.) Unstoppable families are always on the move. Post a large calendar in the kitchen or family room to capture and keep track of your family's weekly activities. Assign a different color marker to each member of the family. This will help keep everyone on time and in line.
3.) Let the games go green! Encourage creativity by finding ways to repurpose everyday items into fun activities. A drinking straw and some ribbon becomes a magic wand. Two painted paper towel rolls can become a pair of backyard binoculars. Reuse magazines to make colorful collages and other fun art projects.
4.) Sometimes fast-paced weekdays leave little time for family fun. Set aside time each weekend to enjoy the outdoors and each other's company. Plan hiking trips and bike riding adventures that will appeal to everyone. Put together a "scavenger list" with fun things to look for along the way like a yellow flower, a white cat, a BIG bug and other outdoor items.
5.) Have a little fun while on the run. Store books, games, markers and paper in the car to keep kids entertained on the road or in-between events. Also, make sure to have some kid-friendly tunes to keep the kids singing from your driveway to the soccer field.
6.) Ask around at your local community center or health club about family fitness classes. Try an aerobics or swimming class as a family; it will be a great way to stay active and spend time together.
7.) Like the title of my book Dream Big Little Pig, I always teach my kids they can accomplish anything with practice and perseverance. Encourage your kids to try their best at every activity they pursue and explore their interests no matter how sky-high. You might be raising an award-winning musician or the future President of the United States.
8.) Think outside the toy box when it comes to family activities. An old blanket quickly transforms into a magic carpet when spread across the living room floor. Couch cushions and bed sheets always make the best forts. A simple flash light becomes a projector for shadow puppets in a dark playroom. Use soccer balls, hula hoops and other everyday items to create a fun obstacle course in the backyard.
9.) My family spends a lot of time on the ice and it has shown us the importance of teamwork. Encourage your kids to join a local soccer or basketball team. They'll have fun while learning team building skills.
10.) Don't let a rainy day dampen your outdoor plans. Pitch a small tent in the living room and have a "camp in" complete with a construction paper campfire and sleeping bags. Weather the storms outside with tall tales shared over campfire treats.
October 28, 2011 3:40 pm
Make no bones about it—Halloween is all about having some spine-tingling fun. This year, why not share the scare by hosting a Trick-or-Treat party for school friends or even the neighborhood?
With these tips and ideas, you can throw a monster bash on a budget that's not frightening at all.
Set a Spooktacular Scene
Whether you want to go all-out scary or keep it all in good fun, you can combine store-bought decorations with homemade creations to save money.
• Line fake gravestones along your walkway. Buy them pre-made, or make them yourself using foam or cardboard and spray paint.
• Perch eerie, fake birds near your doorway, and hang cobwebs anywhere you can reach.
• Place creepy-crawlies, like plastic spiders, everywhere.
• Add scary inflatable figures to your yard—the designs get more elaborate every year, and they store easily when deflated.
• Turn an inexpensive, thrift-store stockpot into a spooky kitchen-table centerpiece. Just add dry ice and warm water for frightfully fun fog. Always wear gloves when you handle dry ice and always store it in a ventilated container.
• A jack-o-lantern is a Halloween classic. Easy stencils make complex witch, werewolf and scary-face designs a breeze.
• Use rechargeable outdoor tea lights and Halloween-themed string lights as safer alternatives to candles.
• Build a scarecrow—all you need is wooden garden stakes, pillows, straw and old clothes.
• Use unexpected items in a whole new way. Spray paint branches or old lamps black and orange and use them as centerpieces; make spooky skeleton cut-outs with poster board; use toilet paper to wrap someone up in a nifty mummy costume; or bring the outdoors in with hay bales and mums.
Frightfully Fun Games
Kids and grownups alike will get a kick out of these Halloween games.
• Halloween Charades—Write down Halloween characters, places and things on pieces of paper. Fold the papers and put them in a bowl. Then have each person, in turn, pick a piece of paper and act out the written words until the game's audience guesses what's being acted out. Want more competition? Split the group into teams and award candy prizes for correct answers.
• Pin the Nose on the Pumpkin—You'll need a pumpkin (either real or made out of orange construction paper), pushpins or tape, a blindfold and several pumpkin noses (black construction paper will work). Draw eyes and a mouth on your pumpkin's face, and hang it up. Blindfold a player, spin them around, hand them a paper nose (secured with a pushpin for adults and tape for children) and direct them toward the pumpkin. The player who attaches the nose closest to the right spot wins. You could also play Pin the Wart on the Witch, or Pin the Smile on the Scarecrow.
• Pumpkin Decorating Contest—Set out markers, stickers, glue, construction paper, buttons and other household items. Give guests a pumpkin and a 30-minute decoration time frame. Award prizes for the "Prettiest," "Scariest" and "Most Interesting." Don't want winners or losers? Let kids decorate and take home their pumpkins.
For more information, visit www.walmart.com/halloween.
October 28, 2011 3:40 pm
Mortgagor. Party or person that borrows money, giving a lien on the property as security for the loan; the borrower.
October 28, 2011 3:40 pm
Q: What things do lenders view positively and negatively during the application process?
A: When you apply for a loan, long, steady employment is always seen as a plus, as is a large down payment, a good credit rating, a history of regular savings, and property located in a “good” neighborhood.
Not so good in the lender’s mind: frequent job changes without salary increases, self-employment in a new venture, bad debt history, no previous borrowing record, and dilapidated property.
Do not be discouraged. These are standard lender pre-dispositions when evaluating your application, but when it comes to making a loan decision, most lenders will tell you nothing is completely carved in stone.
Consider, too, that credit you have qualified for—say, credit cards—can work against you, even if never used. This is because those credit cards are looked upon as being open credit lines—and while they have not been used, they could be used, and potentially used up to the maximum dollar amount allowed by the credit card companies. As a result, their perceived risks lower your credit, or FICO, score.
October 27, 2011 5:38 pm
It's an unfortunate part of homeownership—things break down. Heating and cooling systems have limited lifespans and can cost thousands to replace. Home appliances go on the fritz or the plumbing system shuts down, and before you know it, you've had hundreds of dollars worth of unexpected repairs to deal with.
One thing that can help with unexpected costly repairs is preventive maintenance. In fact, think of it as giving new meaning to the phrase "home health."
Just like your annual physical, preventative maintenance can play a critical role in keeping your home's systems and appliances running smoothly and efficiently. Most homeowners are aware of the basics, like regularly changing the air filters on their heating and cooling systems, checking for leaky faucets, and so on. However, the to-do list of preventative maintenance tasks can get long, and not everyone has the time or experience to do it all themselves.
Unfortunately, without a professional preventative maintenance program, most home systems and appliances never get a thorough check-up, leaving them vulnerable to costly—and often avoidable—problems.
A professional preventative maintenance program can be a homeowner's most important ally when it comes to the upkeep of their heating and cooling system, plumbing, electrical system, and most major appliances. Quality service providers take a comprehensive approach to preventative maintenance, and are trained to look for early signs of wear and tear, perform recommended maintenance, and record the condition of your appliances and home systems so any repairs and/or replacements can be made before they lead to an unexpected breakdown.
Along with the convenience and confidence of regularly scheduled check-ups, homeowners can also realize other benefits, too, such as reduced energy costs, improved system reliability and lower repair costs over the life of their covered items.
"Preventative maintenance is an investment in the health and well-being of your home's systems and appliances," says Matt Wendl, director of American Home Shield's new preventative maintenance service, which the company recently launched in 45 markets across the nation. "Early detection of problems can help eliminate the need for more costly repairs."
Wendl offered the following tips for homeowners considering a preventative maintenance plan:
• Get a detailed, written list of all items to be inspected, and how frequently they will be inspected.
• Be sure they are doing a visual inspection, as well as testing how key components of your systems or appliances operate.
• Confirm costs up front for any needed repairs. Some providers offer discounts off their regular rates for repairs.
• Contactors should be licensed, bonded and pass a criminal background check.
To learn more about preventive maintenance and taking care of your home, visit www.AHSpm.com.