by Joe
on January 8, 2009
Today, I’d like to focus on one thing. The disclaimer that appears on most MMA agents’ web sites:
“United First Financial, its agents and subsidiaries provide Internet web based software and support services. United First Financial does not provide accounting, tax, legal, real-estate, mortgage, or investment advice. Interested parties should seek and consult with persons or entities licensed and qualified in those areas for advice relating to those matters. United First Financial is not liable or responsible for claims or representations made by any party which are not included in the Money Merge Account Limited Guarantee.”
Let’s look at this to really understand what they are saying here. They provide web based software. Ok, got that. But, they do not provide “mortgage or investment advice.” Now that’s really interesting. They sell an expensive, hard sell, product to reduce your mortgage (and perhaps other debt), yet they hide behind the claim of not providing advice of any kind. The good news about this is that it’s an honest declaration that their agents have no credentials, and in fact, should not be providing advise of any kind.
When we read the rest of the disclaimer, we get to the Money Merge Account Limited Guarantee. (note – this site is down, link removed) Reading through it, it simply states that if one follows the plan, that they’ve done the math right. In other words, thry guarantee that their amortization table, if the buyer follows the payments exactly, will be accurate. Of what value is such a guarantee? No more than if I guarantee you that if you put one dollar on your night table for 10 days that you will have 10 dollars at the end of that time.
I’ll close will this thought – the agents are fond of using an endless stream of analogies, including the fact that one seeks a professional such as a doctor and doesn’t attempt to perform surgery on themself. I’ll agree with this, but I’d be sure when I need a doctor I don’t find one who has no real MD, no medical schooling, and a large disclaimer stating that he does not actually offer medical advice.
Until next week, Joe
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by Joe
on January 7, 2009
I’ve started to see the 30 year rate get down to 5%, and the 15 at 4.75%.
It’s time to at least gather up the necessary documents and get prepared to jump on a refinance. The banks should be asking for the last two years’ tax returns, two years of bank statements, and last two pay stubs to get started. As rates came down, during the last cycle ending in 2004, I refinanced multiple times, and had my paperwork at the ready. I hope we’ve learned the lessons about ARMs (adjustable rate mortgages) and the risk that they bring, otherwise, the next cycle of rising rates will end just as badly as the previous one.
Joe
(*Note: as of this morning Freddie Mac reports 5.10%/4.83%. The rates vary a bit by region and bank.)
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by Joe
on January 3, 2009
The S&P was up over 28 points or just over 3% for the first day of trading this year. All we need are 20 such days this year with the rest averaging neutral, and we’ll be back to 1500. I can dream, can’t I?
Joe
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by Joe
on January 2, 2009
I know that some will point to the bad stock market, down nearly 40% depending which index you follow, as a confirmation of the value of gold in one’s portfolio. First, a look at the gold ETF chart for the past year;
Gold was up 4.9% last year. Only slightly better than CDs, and worse than longer term Treasuries as interest rates fell dramatically, and bonds rose. I’ll admit that gold has had a good run in the last 4 years or so, but go back to the last time it ran up, 1980, and you’d find that you are now at breakeven, 28 years later. How come no gold bugs ever said “sell” during any of these three decades?
Joe
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by Joe
on January 1, 2009
I know it’s Thursday, and usually, I post some insight on the Money Merge Account on Thursday, but today I decided to pass, and take a breather. Next Thursday will come soon enough, and the agents seem to have no limit to the exaggerated claims they’ll make to sell their product.
Instead, I’ll ask you to reflect a moment on what you wanted to accomplish in 2008 and whether or not you reached your goal(s). It’s one thing to make a resolution that might not be achievable, and quite another to list your goals, as many as 10 that you wish to accomplish during 2009. Write them down in the order of importance, and try to review the list each month. It’s important not to give up if you are not on track right from the beginning. I have a number of items for my own list, but it’s not yet complete.
Joe
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