So easy, a chimp could do it...

I was thinking about the TV show “The Big Give” and was just googling some information and came across this article online about altruistic chimps.

I was thinking about how people that you don’t know and will probably never see again can make your day. Since I was a child there has always been a “dollar menu” at fast food restaurants. When I was ten, I went to Mcdonald’s with exactly one dollar. I ordered a Big Mac for $0.99 and then was asked for $1.06. I had no concept of taxes at this point in my life. Anyways, I was a pretty shy kid, and felt embarrassed since I didn’t have enough. Here I am looking at my puny dollar then at the $1.06 digital reading across the screen…then at the cashier…then back at my dollar. Then out of nowhere, this lady steps in front of me and pays for it. She told me to put my money away. The kind gesture really resonated with me.

Have you ever done something for someone, without expecting anything in return?

I mentored a child for eight months. I was under the impression that all I had to do was spend a couple hours each weekend doing normal things. We went to the park, the arcade, and to miniature golf. He was a kid that had nearly everything going against him. The more time I spent with him, the more I realized that we are all born with different opportunities and disadvantages, but it’s what you do with them that defines who you are as a person. It was such a fulfilling experience that I highly recommend it for the right person. The bottom line is that the experience was the opposite of what I had expected. I was trying to make a difference in his life, but he really made a difference in mine.

For me, whether I am helping someone or being blessed by another, I get a feeling of warmth and kinship with others. I feel that people are born with the desire to help others, they often just don’t know where to get started or they feel like they don’t have enough time, money or both. There are many things that you can do that takes relatively little time and no money. Locally, I would look into L.A. Works or Volunteer OC for starters. Maybe it is a coincidence, but L.A. Works has a "Monkeying Around" event on May 4th.

Wishing you wealth in all its greatest forms.

Become a homeowner...step 1.

If you are currently a homeowner or are going to be in the market for a new home, you may be able to appreciate this. My goal as a real estate broker is to help you purchase properties with unified perspectives. With additional guidance from financial advisors, tax advisors, you can be better prepared to understand your opportunities and make informed decisions on possibly the largest investment you will ever make.

We are currently experiencing a pull back in real estate prices due to more restrictive financing options, general concern about the overall economy and numerous foreclosures and “short sales.” We may have been able to avoid today's current environment if just a little more work was done upfront.

The first step to owning a house is budgeting. I believe that all potential homeowners should do a Personal Financial Statement (PFS). This statement covers the big financial picture, including all income sources, personal expenses with insurance and other investments. It provides a background on the true state of your finances. You may need to restructure your finances, but at least you are aware of what adjustments need to be made. It has typically been an eye opening experience. We rarely know how much we really spend since we have limitless access to credit cards. This is a great opportunity where your agent can learn about other trusted advisors in your life, including tax advisors, financial advisors and maybe even legal counsel. These very important people should work together to provide a seamless and unified plan. The tax accountant can help you review the potential benefits of mortgage interest deductions, whereas the financial advisor may have very clear investment goals that need to be maintained for a prosperous retirement. I feel that if more agents had performed these with their clients, less people would be losing their homes.

Many real estate agents don’t have a background in finance and would not feel comfortable with the personal financial statement. You may go to your trusted financial advisor who may already have your financial analysis on file. I strongly believe that agents should be in touch with other professionals to help clients purchase a home that truly maximizes a person’s values and goals.

Wishing you wealth in all its greatest forms.

Certainly Uncertain...

These are definitely uncertain times. I work 20.7miles from my home and my car gets around 20-22 mpg and I paid $3.79 per gallon of gasoline this morning. It costs me nearly $8.00 to commute to and fro. You may have noticed people moving faster these days, it’s not because they are more in shape…it’s actually a result of their wallets being lighter. Inflation is now in full effect.

From gas to food, everything is more expensive. Food inflation is growing at the fastest rate since 1990. Since I enjoy purchasing things in bulk, I buy my eggs at Costco, but even there the prices have risen quickly. So far, egg prices have increased 40% and milk prices have increased 26%. You aren't even immune if you are vegan, corn and soybeans are prices are also on the rise.

It is simply the perfect storm for many retirees. Falling home prices and a volatile stock market has not only shaken their confidence, it has shaken their retirement portfolios.

Is this a doomsday prediction? Hardly.

There will be booms and busts in both housing and the stock market. The thing not to do is “suffer in silence.” It makes little sense to worry and spread fear when there are simple things that you could be doing right now. In these times of flux, take it as the opportunity to review your budget, create the savings plan that you have been “planning” to do. When you get your stimulus check, put it towards your rainy day fund and put it in a high interest savings account. If you have been putting off starting a retirement account for yourself, do it now. You can contribute for calendar year 2007 to your Roth IRA until April 15. Imagine never having to pay taxes again on that money ever again. The government is giving you a golden opportunity, take it.

If you can learn to budget in these difficult times, you will be well prepared when things turn around. Until that stimulus check comes in, I hear that the Mcdonald’s Dollar Menu is looking mighty good.

Wishing you wealth in all it's greatest forms.

On Wealth

What's the definition of wealth? $100,000 , $1 million , $100 million , $1 billion? I hope that you found your number in there. Being wealthy means different things to different people. To a child who has never had his own pair of shoes, $100 might be his idea of being wealthy while growing up. Whereas, a child that has always had a life of lux and privilege, may believe that being a millionaire is not only the norm, but anyone below that financial status is poor. Some people consider themselves wealthy if they have $50 more than their cousin, while another may only consider himself wealthy if they have a beach front property. The bottom line is that wealth is a relative concept.

What is not a relative concept is that all people want to improve their condition of living. I believe the heart of human nature is the yearning for advancement. For example, if you are homeless, you would like to have shelter. If you live in an apartment, you would like to live in a home. If you live in a home, you would like to live in a larger home, in a more desirable neighborhood, closer to the beach etc... We live in an amazing country where hard work, dedication and innate talent can make these things possible...for that I am grateful.

From the "Google Earth" view, wealth means very different things to different people. It can range from health, friendships or even material comforts. How you can tell which one is important to you at this moment is finding out where your current energy is focused. We are constantly evolving into the people that we are meant to be. There have been years in my life where my energy was spent only on acquiring material comforts and other years where friendship and health took the reigns. For most people, the focus only returns to the peripheral areas when neglected to the point of distress. I have heard many stories, where a multi-millionaire stock broker is struck by serious heart attack, only then does health become priority one. Other times, cliches like "it's lonely at the top" come to mind. Where an individual has spent so much time and effort making money and one day they come to the realization that they have a network full of acquaintances, but no real connections with friends. We as human desire to be in balance, yet with all the daily noise, it is easy to forget what is truly important to us. Here's to living in the greatest wealth balance possible.

Wishing you wealth in all it's greatest forms.