Women Say Financial Planning Too Stressful – FA Mag

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Few women consider becoming a financial planner because, in part, they consider the job stressful and uninteresting, and feel they would have a problem recruiting clients, according to a new study by the Insured Retirement Institute.

But employers could help women overcome their fears about the planning profession by highlighting aspects of the job that they can relate to, such as the jobs heavy reliance on relationships and its suitability for people who want to be self-employed, according to IRI.

Firms are well advised to review their recruitment practices and workplace policies to attract more women into the financial advisor profession, IRI states.

The study, entitled Women and Financial Advising Careers: Perspectives and Priorities, surveyed 603 college-educated women between the ages of 25 and 49.

Women make up only about 30 percent of the financial planning professionals in the US This is despite the fact that, as of 2009, 8 million businesses in the US were majority-owned by women and women controlled two-thirds of US consumer spending.

The financial planning profession is expected to expand by 32 percent by 2020, more than twice as fast as other professions, according to the Bureau of Labor Statistics. Noting that 70 percent of women would prefer to work with a woman advisor, IRI says, The need and the opportunity are present to recruit more women in the financial advising profession.

Only 13 percent of women were familiar with the financial advising profession and only 10 percent had considered it as a profession, according to the IRI study. In explaining why they did not consider financial planning as a career, 40 percent of women said they didnt consider the job interesting, 10 percent said they are not good with numbers and 7 percent cited a lack of training.

In addition, 45 percent said they would have a problem developing clients on their own and 48 percent considered the job stressful.

But IRI noted there are aspects of the financial planning profession that should resonate with women. For example, women consider high salaries an important component of a job and financial planners can make up to $350,000 a year. The jobs median income is more than than $60,000.

Recruiting efforts should focus on the fact that financial planning is based on relationships, since women are relationship-oriented, IRI advised. The idea that many financial advisors are self-employed also appealed to women.

When women were told a financial advisor can enrich someone elses life by helping them to attain financial security, their interest grew, according to IRI This demonstrates that once women have a greater understanding of the rewards of a career as a financial advisor more women will pursue the occupation, IRI says.

Employers can also recruit more women by providing on-the-job training, mentoring and networking programs, according to IRI.

What Is a First-Lien HELOC?

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  • To understand what benefits a first-lien HELOC offers, its important to know first what it is. A first-lien HELOC is basically a home equity line of credit (HELOC) in the first lien (or first mortgage) position. Confused? Let us explain.

    Normally, a home equity line of credit is considered a second mortgage. And you cant have a second mortgage without a first. So, lets say you have a home worth $100,000 that you obtained with a traditional first mortgage. Youve paid off $75,000 of the principal on that mortgage and you owe $25,000 (in principal). If you got a home equity line of credit, you could use the money you get from the HELOC to pay off the first mortgage. You no longer have a first mortgage, so the HELOC then becomes your first lien.

    When you make a mortgage payment, youre paying two basic things: principal and interest. Principal is the amount you borrowed in the first place and the interest is the fee charged by the lender for borrowing the money. There is an inverse relationship between how much interest you pay to how much principal you pay toward your mortgage. In the beginning of your loan term, your mortgage payment is mostly interest and very little principal. As the loan term progresses, you pay increasingly less interest and more principal until toward the end of your loan term when your mortgage payment is mostly principal and very little interest.

    Why Get a First-Lien HELOC?

    Understanding all that, a first-lien HELOC can be very useful.

    Lets say you have a traditional 30-year fixed-rate mortgage that youve been paying faithfully for 25 years. You may know by now that mortgage interest is usually tax-deductible*. But now youre in the later stages of your mortgage where youre paying very little mortgage interest, as we just explained. So trying to deduct the interest from your taxes isnt offering any real benefits at this point. If you were to get a home equity line of credit, you could use the HELOC to pay off your 30-year fixed and the HELOC becomes your first mortgage, or first lien. Now youre at the beginning with your new mortgage and you can deduct more mortgage interest again.

    Of course, you could also get a first-lien HELOC if youve paid off your house and own it outright.

    Either way, now you have a mortgage that works like a credit card in that you can draw from the account at any time and pay it back if and when you draw. Having this kind of flexibility can come in handy if you need to draw from it to make ongoing home improvements and have to pay several contractors; if you have a child whos getting ready for college and you need to pay their tuition and other college expenses; or if you are thinking about buying that fishing boat youve always wanted and have to make payments on that.

    Remember, its better to pay for these sorts of big expenses with the money from your home equity line rather than with your credit card because you get a better interest rate on the money you borrow and the interest on your mortgage is usually tax-deductible whereas the interest on your credit card is not. Plus, HELOCs are tied to short-term adjustable rates which are usually lower than long-term fixed rates, so you could be getting a very good rate on a first-lien HELOC.

    First-lien HELOCs provide homeowners with flexibility, liquidity, great tax advantages and a low interest rate. You can make large purchases without paying high interest rates (compared to credit cards) on the money you borrow. It may be a very good time to get a first-lien HELOC because the Federal Reserve has now kept short-term adjustable rates at the same level for the last four meetings and some experts believe they may even lower them in early 2007. If youre not sure whether a first-lien HELOC is right for you, contact a reputable home equity loan lender.

    *Please check with your tax advisor.

    Small Talk: Answering Questions on Home Equity, Trademarks and Patents

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    Small Talk: Answering Questions on Home Equity, Trademarks and Patents

    A: Home-equity loans come with one big advantage over loans backed by the Small Business Administration: Typically, the cost of a home-equity loan–the interest rate and any fees–is only about half that of an SBA loan, according to Ami Kassar, chief executive of MultiFunding, a Philadelphia-based loan brokerage for small businesses.

    But Mr. Kassar points out that most home-equity lenders require borrowers to have stable sources of income, which many small-business owners dont have. Whats more, you may be able to borrow more from the SBA than you could take out through a home-equity loan. Thats because the lender likely wont require collateral equal in value to the loan, while a home-equity loan is directly tied to the value of your house.

    Remember, though, that if you cant make payments on an SBA loan, you could wind up losing your house–the same risk youd run with a home-equity loan, Mr. Kassar says.

    A: You dont need a registered business to apply for a trademark, says Matthew H. Swyers, founder of the Trademark Company, a group that aims to protect the trademark rights of small to medium-size businesses.

    You can secure federal trademark rights when you begin using the trademark in interstate commerce, such as shipping goods bearing the trademark across state lines, he says. Simply list yourself as the trademark applications owner when you file with the US Patent and Trademark Office. When you incorporate later, you can assign the trademarks rights to the business.

    Alternatively, you could file an intent-to-use application with the patent office, which generally reserves a trademark for about three years.

    A: Even though getting a patent can be expensive and complicated, its a good idea to file for one as soon as possible to protect your idea, says Justin Poplin, a partner at Lathrop Gage LLP. For those inventors who cant afford to file, or are reluctant to do so for some other reason, he suggests at the very least asking a company to sign a nondisclosure agreement before you share your idea, particularly if it involves a trade secret, such as a formula, manufacturing process or something else that provides economic value. He notes that theres no formal way to get trade-secret protection other than through a written pact with the company youre approaching.

    Also bear in mind that companies are unlikely to pay for an invention thats not patented, unless a trade secret is involved, Mr. Poplin says. If they paid for an unpatented idea that didnt come with a trade secret, a competitor could copy them. Of course, they could also build the product themselves–without paying the inventor–if they were unscrupulous.

    Why couldnt companies just buy the idea and patent it themselves? Many companies dont want to put up with the hassle and expense of trying to patent something, when they arent sure upfront what patent coverage–if any–would actually be granted, says Mr. Poplin.

    Discover to begin offering home equity loans – Arizona Daily Star

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    Discover Financial Services says it will begin offering home equity loans beginning in the second half of this year, the latest move by the company to push further into direct banking.

    Discover plans to make fixed-rate home equity loans between $25,000 and $100,000 to homeowners, Carlos Minetti, executive vice president of consumer banking and operations at Discover, said at a briefing.

    Discover sees an opportunity in home equity loans now that the US housing market has begun what appears to be a sustained, if gradual, recovery.

    Rising demand combined with fewer available homes has helped push home prices steadily upward since last year.

    Minetti noted that he expects the home equity loans will appeal to homeowners looking to consolidate debt. The new loan program also should complement the companys personal loans, which are capped at $25,000, he added.

    The company doesnt anticipate the program will have a material impact on its net income this year or next.

    Discover, best known for its namesake credit card, has been pushing further into the direct banking business, offering auto, personal and student loans.

    Last June, it acquired Tree.com Inc.s mortgage business for $45.9 million and has since funded more than $2 billion in residential mortgages.

    During the run up in home prices early in the last decade, Americans tapped the growing equity in their homes to finance spending. That ended when the housing bubble burst around 2007, driving down home values and leaving millions of US homeowners with little or no equity in their homes to borrow against.

    Thats helping restore equity to homeowners, which could open the door for them to borrow against that equity.

    As this trend continues, stronger demand for this product will remerge, Minetti said.

    The executive noted that loss rates on new home loans have returned to pre-housing crisis levels of around 1 percent, down from around 3 percent to 4 percent during the worst of the downturn.

    Minetti said that Discovers customer base could provide fertile ground for home equity loans, noting that about 80 percent of the companys customers are homeowners.

    Financial Planning after the Fiscal Cliff: Tax Law Changes and your 2013 …

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    SCPRs Legacy Society hostedan insiders view of ways to maximize your planning and tax savings after the American Taxpayer Relief Act of 2012. We heardfrom a panel of experts on the issues theyre encountering in their practices, opportunities and challenges in the Fiscal Cliff legislation, and charitable aspects of tax planning.

    @KPCCforum
    #financialplanning

    Panelists:

    bull; Carol Bradford, JD of California Community Foundation

    bull; Reynolds Cafferata, JD of Rodriguez, Horii, Choi amp; Cafferata

    bull; John Chou, MBA of Waddell amp; Reed

    bull; Christine Fuentes, CFP, ChFC, CRPC of Ameriprise Financial Services

    For more information please contact Katherine Gfeller, Major Gifts Office, at kgfeller@scpr.org or (626) 583-5145.

    The Legacy Society honors members who have included Southern California Public Radio in their estate plans. By making a planned gift to SCPR you establish a legacy that provides the highest quality news and information to current and future generations.

    Casey Anthony lawsuits: Fate unclear after bankruptcy hearing

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    What does Casey Anthonys bankruptcy mean for the two defamation lawsuits pending against her? The answer was no less murky after a hearing Wednesday in Tampa.

    The suits, brought by Zenaida Gonzalez and Roy Kronk, were halted in their tracks by Anthonys January Chapter 7 filing which she hopes will ultimately end them for good.

    Gonzalez and Kronk are both listed as creditors in Anthonys bankruptcy, but because the suits havent been resolved, its unclear what if anything she owes them.

    Retire Secure Announces a New No Closing Cost Home Equity Loan Program

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    Atlanta, Georgia (PRWEB) April 30, 2013

    Retire Secure is pleased to announce their new no-closing cost fixed rate home equity conversion mortgage. Reverse Mortgage Loans allows seniors the ability to access the equity in their homes. Vince Dooley, Spokesperson for Retire Secure, states Retire Secure has established themselves as a reputable and trusted lender for reverse mortages.

    Facts About This No Closing Cost Loan:

    There are no income or credit qualifications needed but the home owner must have at least 60% equity in the home and an appraised value of not less than $400,000 for home owners 62 and over. Wayne Black (President of Retire Secure) says, this gives home owners a low cost option to utilize their equity for a variety of needs.

    Reverse Loan Myths and Questions:

    The companys website addresses the common myths associated with reverse mortgage loans and answers general questions to clear up any confusion about reverse mortgages. A couple of common questions are Are there any restrictions on how the money is used? and How large of a loan can I get? If these are questions you would like to know the answers to visit: http://www.retiresecurenow.net

    Vince Dooley, as the companys paid spokeperson, has always touted Retire Secure as a Trusted Reverse Mortgage Lender. Retire Secure motto is Your Expert for Reverse Loans in Georgia and we strive to earn each customers trust and respect. Most of our new clients are referrals from our customers which indicates that we live up to our motto,states Black. If interested in learning more about reverse mortgage loans, click on the following link: Reverse Mortgage Loans

    Retire Secure: GA Residential Mortgage Licensee 23137. NMLS # 170058

    This release was created by Click Ready Marketing an Atlanta based SEO Agency.

    Paulson hedge fund puts hotel unit in bankruptcy to escape lawsuit

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    Billionaire investor John Paulson has put a real estate unit of his hedge fund into bankruptcy to thwart a lawsuit by a lender that claims it is owed tens of millions of dollars related to the recent sale of several luxury resorts.

    According to filings late Wednesday in Manhattan bankruptcy court, MSR Hotels Resorts Inc. sought Chapter 11 protection from creditors to sell its remaining assets and wind down.

    A bankruptcy filing often halts litigation against a debtor.

    Daniel Kamensky, MSRs treasurer and a partner at a Paulson Co. affiliate, said in an affidavit that protection was necessary because of the baseless lawsuit filed last month by Five Mile Capital Partners against MSRs directors, which he said reflects the lenders scorched-earth tactics.

    The REIT now seeks to end Five Miles continued terrorization of directors that the court has previously found acted in good faith, he wrote.

    MSR in February won court approval to sell four resorts to the Government of Singapore Investment Corp. sovereign wealth fund for $1.5 billion, including assumed debt, court papers show.

    The resorts included the Arizona Biltmore Resort Spa in Phoenix; the La Quinta Resort Club PGA West in La Quinta, California; the Grand Wailea Resort Hotel Spa in Maui, Hawaii; and the Claremont Resort Spa in Berkeley, California.

    But Five Mile, which said it lent $50 million to an MSR affiliate, accused MSR directors of having conflicts of interest that prevented them from getting the best prices for trademarks, logos and other intellectual property.

    Its lawsuit seeks $58.7 million representing sums owed, including interest and costs, plus at least $100 million for breach of fiduciary duty, gross negligence and corporate waste.

    David Friedman, a lawyer for Five Mile, called the bankruptcy case a cheap litigation tactic designed to shield directors from liability, and destined to fail.

    For someone from Paulson to accuse someone of terrorism, when all were doing is litigating a commercial dispute, should offend anyone who understands the meaning of the word, he said in a telephone interview with Reuters.

    Five Mile is evaluating its options, Friedman added.

    A spokesman for Paulson declined to comment.

    MSR said it intends to use Chapter 11 to sell intellectual property for the Biltmore, La Quinta and Grand Wailea resorts.

    On Wednesday, MSR urged a federal district judge to dismiss the Five Mile lawsuit. It said the lawsuit was designed to get around earlier court rulings that Five Mile did not like, and said MSR directors had met their obligation to maximize value.

    The other MSR directors sued by Five Mile were Michael Barr and Jonathan Shumaker, who are both also partners of a Paulson Co. affiliate, and Mohsin Meghji.

    MSR said it had about $785,000 of assets and $59.2 million of liabilities as of March 30.

    Paulson rose to fame when he made $15 billion by betting against subprime mortgages ahead of the US housing collapse.

    But his assets under management have fallen to about $18 billion from $38 billion in early 2011 because of lagging performance and investor redemptions. His gold fund has fallen about 47 percent this year, according to performance data provided by a person familiar with the fund.

    The case is In re: MSR Hotels Resorts Inc., US Bankruptcy Court, Southern District of New York, No. 13-11512. The earlier bankruptcy case is In re: MSR Resort Golf Course LLC et al in the same court, No. 11-10372. The Five Mile lawsuit is Five Mile Capital SPE B LLC v. MSR Hotels Resorts Inc. et al, US District Court, Southern District of New York, No. 13-02920.

    (Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)