The Malachi Group

2009-04-28T15:47:00.001-07:00

Financial attitude

We are responsible for ourselves financially. We have heard it. We have done it. For some of us it is hard to do in this economic environment.
What a frightening, grown-up thought that is for many of us; taking responsibility for money and our financial affairs.
Financial responsibility is an attitude. Money goes out to pay for necessities and luxuries. Money must come in, in order for it to go out. How much needs to come in to equal that which is going out? For many of us that is the difficulty today. Not enough coming in for the amount of debt we have taken on. Or we have been laid off from our jobs or lost our job and money is much less and will only be arriving for a certain length of time.
What are the steps? First, address your self-esteem. We know that if we set up a plan we will have a definitive conclusion of how much money we need each month to meet all of our bills. This is not just a plan of monthly expenses, but also all non-monthly expenses (including birthdays, anniversaries, holidays, etc.) and discretionary spending. I include food and toiletries in discretionary spending because we can determine what price of foods and toiletries we will buy. For example, we can buy the grocery store brand of frozen vegetables or Birds Eye brand. We can buy Folgers coffee or Starbucks. We get to decide. That is discretionary spending.
Part of being alive means learning to handle money. A big part of handling money is our attitude. Our responsibility includes managing time so we have an appropriate allotment of time to build a Planned Spending Program. Next, we need to set financial goals. Then we have to establish the appropriate time each pay period to pay the bills. Next, we need to review our Planned Spending Program each month to make sure we are on track. If you are married, you need to set an annual meeting time to review how you did over the last year financially, and set goals for the coming year. In addition, it would be of great benefit to record every penny you spend, by expense category, for one month to see if there are financial leaks that you can plug.
Seeing the above list may seem daunting but honestly, once your Planned Spending Program is established it should only take an hour or so each month to review how you did. Actually paying the bills will vary but if you use bill pay or pay on line, it won’t take more than a couple of hours a month once the bill pay or on-line pay is established.
If you don’t have a financial software program and want to keep it simple, look at Budget Calendar software by Mishall software – www.mishell.ca. It isn’t free but at least you can try it for 30 days without having to purchase it. Most others you must buy in advance.
Ultimately, we need to understand how money works and adopt an attitude of financial responsibility for ourselves. How we deal with finances is 90% attitude. Application follows a positive attitude.

2009-04-28T15:45:00.000-07:00

Where do I invest education money for children and grandchildren?

With the state of the economy and stock market investments that have been racked, where do we invest education money for our children and grandchildren?
Now that the stock market has broken through support that was established in November 2008, we again wonder when will recovery occur for our stock market investments. Many of us are concerned about money we have already invested or are going to invest for children and grandchildren. We could buy Treasury Bills or Bonds but the rates are so low they will not keep up with inflation.
Of course, our country is taking on an unbelievable amount of debt so now we are even questioning our country’s ability to pay interest on America’s debt. Yet, America still has the highest credit rating available, as of today, and USA taxpayers will continue to funnel money to the Treasury Dept. every year. Therefore, we know there will be revenue flow at the Treasury Dept.
If you are to the point you will not invest more education money in the stock market you can look at alternatives such as CD’s or money market accounts. Maybe even Corporate or Municipal Bonds. They both pay higher interest rates than CD’s and money market accounts. Yet there is some risk attached to them. Corporations have to retain viable status to be able to pay you interest every six months and the principal at maturity. Municipal Bonds (Muni’s) pay tax-free interest. Some may be insured, but the insurer’s solvency is in question today. Uninsured Muni’s are dependent upon the municipality to raise tax revenue to pay the interest every six months and the principal at maturity. CD’s are FDIC insured up to $250,000 when purchased from an FDIC insured institution.
Here is an option to think about for getting a decent return without putting the money in the stock market or other alternatives. It is time to take a hard look at I Bonds. Most of us know about EE Bonds, but I Bonds work differently. To help your understanding before you go to the Treasury website here is some information about I Bonds.

I Bonds are sold in denominations of $25 or more. You can purchase up to a limit of $5,000 per Social Security number. I Bonds pay a fixed rate and a variable semi-annual inflation rated. Interest can compound for 30 years. I Bonds can be redeemed after 12 months. If the I Bonds are held less than five years, there is a 3-month interest penalty. As indicated on the Treasury Direct I Bond internet page, the interest rate on I Bonds is 5.64% through April 20, 2009. At that time, the semi-annual interest rate adjustment will be made.
Several other pertinent pieces of information include that Minors may hold I Bonds in their names. You can ‘gift’ I Bonds to recipients.
Here is perhaps the most important feature of I Bonds and EE Bonds – the savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption or eligible EE and I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution. There are other qualifying requirements you will need to know before you buy I Bonds. Go directly to the link provided below.
I Bonds may be an investment worth looking at during these turbulent times.

2009-04-28T15:44:00.000-07:00

How much did I save?

Here is the scenario.
You just stepped into the department store. You have always wanted a pair of designer jeans. There they are right in front of you. Not only are they staring back at you; they are on sale. Normal price for the jeans - $100. Today and only today those jeans are on sale for $60. What a bargain. Will today be the day you take a pair home? Will you make an instantaneous purchase for your need of gratification?
I can imagine that all sorts of thoughts are running through your head, along with a number of emotions.” It is such a good deal.” “I cannot possibly pass up this opportunity”. “I do not have enough money on me now.” “There is not enough money in my checking to cover the cost of these jeans and all the other things I need to buy.” “Do I have any money in a savings account to buy the jeans?” “Is there room on my credit card to buy these jeans?” “I really need these jeans.” “I deserve to have them.” “They are on sale because I am supposed to have them.” “I would look great in these jeans.” “I will be so much happier if I own these jeans.” “They are so cheap today; maybe I should get two or three pair.” “I have never seen them on sale before. I mean never.” “It must be fate. Why else would I come to this store today?” “This sale is meant for me. I am going to buy a pair, but just one pair so I do not overspend. I am not going to go nuts.”
You find your size and try them on. They look and feel great. That makes the final sale for you. Today is the day. As you head to the cashier, you open your purse and pull out your credit card without any thought about how long it will take to pay off the cost of the jeans. You have not thought about when you can pay for the jeans (credit card) or if you will pay interest on the credit card. It has not crossed your mind about how long it will take to pay off the jeans portion of your credit card balance. You have them and that is the important thing. The cashier even compliments you on saving $40. You think, “It had to be destiny, for me to find this sale today and I saved $40.”
I think almost all of us have gone through a similar experience. But wait; let us look deeper into this purchase. Whenever I save money, I take it to the bank and put it into my account. With this transaction there was no money given to you when you made the purchase. Nothing to take to the bank and deposit.
In actuality, you spent $60 and saved nothing. Your credit card balance went up $60. If you had paid with your debit card, your checking account balance would have gone down $60. The factual truth is you did not save anything, you spent $60. You got something for the $60 but you did not save a penny. The jeans were on sale and with every sale; you have to spend money to buy something. You do not save money.
This is the classic example of how advertisers and marketers work us over to get us to invoke our emotions in making an instant gratification purchase.
Here are some tips to use when you go to the store. If you see something on sale and you immediately think you need it, take time to ponder…
1) Have I planned to purchase this?
2) Will I pay cash or take on more debt?
3) What will happen if I do not buy it?
4) Am I falling into an advertisers trap?
5) Do I want this only because it is on sale?
6) Is this in my “Spending Plan”?

There you have it. A plan to use whenever you are in a store and see something on sale that gets your undivided attention.

2009-04-28T15:42:00.000-07:00

Financial Responsibility
“Financial responsibility” those are some words that are sometimes difficult to understand and interpret. With our economy in disarray, high unemployment, and declining real estate values, many of us have a rather bitter taste in our mouths. We may feel that we have been wronged when we bought and financed as much house as we could afford in the best of times. Now we owe more than our houses are worth and there is no appreciation in sight.
Some of us have taken on a lot of consumer debt, because it was made available to us. Now we are faced with increasing monthly credit card payments and higher interest rates. We hear stories of people who are able to call credit card companies and negotiate lower interest rates, maybe even to zero, and lower payments. There are even times that the credit card companies will forgive part of the debt. Hearing those stories makes us think about taking the opportunity to do the same.
In the past few months while in conversations with consumers, I had two people tell me that they do not mind “stiffing” the credit card companies either by debt reduction negotiation or by bankruptcy. The reason they felt as they did, involved both of them buying a personal computer and financing 100% of the purchase price on a credit card. The interest rate was high and both had taken the opportunity to tell me that they had paid for that computer two times over. Now they still owe close to the purchase price of the computer. I asked them both if they saw the interest rate and payment amount on the loan/credit card before they made the purchase. They both had. When asked if they realized they promised to pay that amount, at that interest rate, they answered affirmatively. When I asked if they felt they were taken advantage of, they both answered with a resounding – Yes. I asked if they were still using the computers and they confirmed that they are.
So where does our financial responsibility enter into the scenario I described above and what is our financial responsibility with situations in our own lives?
If we understand the loan, the loan provisions, and the use of the money, I believe we are responsible for repayment as long as we are able. Unemployment and reduced income change things. If we are not encountering unemployment or reduced income, I hope that we will take an ethical stand and say, “I am responsible for what I purchased”. Recognizing that we did have the understanding then and now. We may be angry because it has not worked out the way we wanted the event to work out but we are still responsible for the loan.
What I just described are the circumstances of a purchase. If we purchased real estate purchase, computer, or other things, and we were taken advantage of because we did not understand the conditions of a loan that is an entirely different situation.
However, if we go into a legal transaction and give our promise to pay, and understand the loan terms, then we have a legal, moral and ethical responsibility to pay as we promised to pay. We may work with the creditors to alter interest rates and payments, but the final voice comes from them. They have your promise to pay. The terms cannot be changed without their approval.
While I encouraged both of these consumers to contact their lenders and see if loan alterations could be made, both were pretty hot under the collar and were only wanting to look at getting out from under the obligation. I am not certain where that anger stems from since they both understood fully what they were getting into. As of this date, one of them has filed bankruptcy and took the computer loan into bankruptcy. The other is working to get debt reduction and settle the loan for a fixed amount that is much less than what is owed.
Both of these actions will have ramifications on their credit reports. They will be answering about their actions for years to come whenever they attempt to get another loan. The anger-based decision is seldom the one that proves worthwhile. Circumstances about those decisions will plague there credit report. Therefore, if you knew what you were doing when you signed the loan(s), isn’t it your responsibility to pay them off? Perhaps with a negotiated, lower interest rate and payment, but still to pay them in full. Negotiation with a civil, respectful tone will go a long, long way when you talk with the lender.
If someone owed you money, decided that he no longer liked the terms, the interest rate or the payment, and in anger told you that he is not paying anymore, wouldn’t you use every opportunity and every legal action to collect that debt?
Lenders have legality on their side. Consumers have the right to ask, explore and negotiate for lower interest rates, modifications and lower payments, but the ultimate decision is with the lender since they are holding our written promise to pay.
Paying off your loans in full will lead to satisfaction and gratification and you will be able to gain credit in the future much more easily than those that went through bankruptcy. Every credit application I have ever seen asks if you have gone bankrupt in the last seven years. That means very time you apply for a loan you will have to give a written reason for the bankruptcy. For some people I do understand that because of insurmountable conditions bankruptcy is what they have to do. However, that should be a last resort rather than a first option.
Let’s make a stand as responsible citizens and pay back our debt as we have promised to do. It just might change the culture of our country.

2009-04-28T15:41:00.000-07:00

Save a thousand

Many people ask me how they can save money for vacations without having to make deep sacrifices or huge changes in their financial lives.
Here is a plan to pay for a vacation that only requires a small life change.
First of all, the key ingredients include:
1) Are you willing to commit to a change in your life to get the vacation?
2) Is the end (vacation) worth the means (change)?
3) Are you willing to give up a habit to accomplish the goal?
4) Does it have to be a first class vacation, where you fly, dine and flop on the beach or by the pool? Or can it be a realistic middle-income vacation?
If you are willing, here is a plan for the vacation. Not an all out French Riviera vacation but one that you can achieve saving for in a year, paying cash for the vacation and have a blast.
Here is the life change required to get a week of relaxing bliss. Instead of going to coffee shop each day and getting a fancy coffee drink ($4.50) and a pastry ($3.00) have a bagel at home and just get a house coffee ($1.80). If you buy a coffee house mug, some places will fill it each day for 50 cents.
Let’s tally this up for a year. We will assume you go to the coffee shop five days a week, 50 weeks a year.
Here is an example of the cost of a specialty coffee and pastry for a year.
Coffee – per day $4.50
Pastry – per day $3.50
Total Cost per day - $8.00
Total Cost per Week - $40.00
Total Cost per Year - $2,000.00

Here is the cost of getting a daily ‘house coffee’ and eating a bagel at home.
Bag of Bagels $4.99 divided by 12 = 42 cents per day.
House Coffee at coffee shop = $1.80
Total Cost per day = $2.22
Total Cost per week = $11.10
Total Cost per year = $555.00
****Savings per Year = $1,445.00
Let’s be realistic and say you cheat on this plan occasionally. You should still be able to save a $1,000 in a year. May I recommend that you deposit the money you save each week into a savings account? If you stay disciplined, you will deposit $28.90 a week into the account. You will be able to see the balance grow but don’t count on much interest. When you get close to the goal, you can start planning the vacation.
Where to go? Have you ever considered a Time Share rental (www.timeshare-resales-rental.com)? They are available all over the world. The location I researched was Palm Springs, California. There are time-shares available for rent for $700 a week. While other time-share rentals are negotiable and others are more expensive. Cost depends on when you are going.
May I suggest going a week or two before premium rates go into effect? That way you will get the discount very near the premium time.
If you start this plan and stick with it for a year, you will experience great satisfaction in accomplishing the goal. It will enhance your self-worth because you have made a little sacrifice, saved and achieved. There is no better vacation than paying cash for it. You will find great enjoyment as you lounge by the pool.
Who knows? Maybe you will even start enjoying bagels and straight coffee!

Mastering Money at Poway Adult School

2009-01-26T15:00:00.000-08:00

Here is a new opportunity for you to participate in learning how to "Master Your Money". There will be a class offered through Poway Adult School that Jerry will teach on February 7 and 14. Time is 9-11 a.m. Check out their website at powayusd.com
You can register online!
This is a great opportunity to get started fresh with your finances in the New Year!
You will receive helpful tips and advice, as well as the opportunity to build your own "planned spending program" for the coming year!
Sign up now!

2009-01-22T13:52:00.001-08:00

For those of you that are struggling with high interest rate credit card loans; you may be able to negotiate with the credit companies yourself. It will take effort and persistence on your part to get through to the Collections department. Once there, have ready a breakdown of all your expenses, monthly and non-monthly. They will want to go over it with you. You will need to prove hardship but that you can meet a payment that you recommend which you can pay every month without being delinquent. Once they have asked about your income and expenses they will most likely offer you a negotiated payout, if and only if you have verification that you can make the payments. That verification is based upon the information you provide them and their calculations. Be prepared and know your exact answers before they start asking. Once they have reviewed your case and make an offer, be prepared to accept or decline immediately. In the last two weeks several of our clients have negotiated on their own and have seen dramatic drops in interest rates and payments. Factual example - an interest rate of 26.99% was reduced to 5.75% for five years.

Should you need assistance in preparing for the credit card negotiations our financial coaches will guide you in preparing a 'planned spending program' and have the exact instructions of how to reach the appropriate departments at the credit card companies to begin negotiations.

California laws taking affect 01/01/09

2009-01-02T17:42:00.000-08:00

There are several worthwhile Consumer protection laws taking effective Jan. 1st, 2009, in California. We are thankful for these new laws and hope more will follow that will benefit consumers, especially in the credit card arena.

* Banks and other companies no longer can offer gifts to college students in return for completing credit card applications.

* Consumers will have new rights in placing freezes on credit reports, including requirements that companies comply within three days.

* Sweepstakes promoters cannot falsely claim someone has been singled out for participation, ask for money to receive a prize and send out "last chance" warnings that are untrue.

2008-12-26T12:17:00.000-08:00

Christmas is now behind us. It turned out to be a very joy filled day for our family. Now that we are empty-nesters we decided to only buy each other one small gift. As a gift giving alternative we decided to support a lady who became a widow this fall, her adult daughter & family, and another adult daughter. That brought us much more joy than showering each other with gifts that we don't need or sometimes even want. We did have fun with giving the granddaughters small gifts and stocking stuffers. But as life has taught us some of the best parts of life are being with loved ones and giving affordably priced gifts to others. In the evening we had a single man come to our house for dinner. His children live hours away and he didn't have anyone to celebrate with. As the night advanced and our feast had been consumed I felt compelled to give him the Christmas gift Mary Jo had given to me. So I did, without him knowing it was my Christmas gift. What an understanding wife. Mary Jo accepted me giving away my gift without hestation or remorse. Mary Jo had baked some cranberry bread which we delivered to our neighbors Christmas Eve. They were pleasantly surprised. So I proclaim Christmas 2008 as one of the very best Christmas' ever. No credit card debt was encountered, family was thoroughly enjoyed and we brought a new spark of life to some others. Hope yours was the same.

2008-10-22T11:09:00.000-07:00

Retirement Killers

1) Not having a clue of how much to save. The 2008 Retirement Confidence Survey reports only 47% of workers have calculated how much they need to save for retirement. If you don't know how much you will need when you retire and what age retirement can begin you don't have any idea if you can make retirement work for you. To calculate your retirement savings program go to www.dinkytown.net. They have a free retirement calculator. You need to have Java installed in your PC. Be patient it takes about 30 seconds to load the program once you click on it. This calculation will give you the exact amount you will have at a certain age based upon your current 401k balance, savings rate and estimated return (which you input). You can also include an estimate of social security. The program will also tell you when you run out of money.

Remember the following statistic when calculating how much you will need for retirement. You need to eat! The average American lives 22 years in retirement. Most of us will have a spouse. let's say you are really money conscious and can eat on $5 per meal. Multiplying that out - three meals a day, 365 days a year, at $5 per meal for each of you for 22 years = $240,900. So just to keep you fed you need almost a quarter of a million dollars! I just heard this morning that the average American eats at a restaurant 207 times a year. Hard to imagine that can be done at $5 per meal.

2) Cashing in your 401k when you change jobs will kill your retirement and make the government wealthier. A Hewitt Associates study found that 45% of workers cash in their 401k when they switch jobs. The workers take the money and then pay a 10% penalty on the money, and income taxes if they are not yet 59 1/2 years old. Many workers are under the impression that they will only have to pay a 10% penalty which is not the case. They haven't paid income taxes on the 401k money so they will have to at tax time. What a miserable awakening to realize you will have to pay the IRS taxes on the 401k money you spent. A shocking surprise, that angers most people. Unfortunately there is no way to rectify the situation. By tax time you owe and all you can do is pay the IRS. If that isn't painful enough workers have taken out of their retirement plan and effectively have pushed their retirement age out further because workers have spent there retirement money now. Workers spent the retirement money that was going to accumulate and grow for years and years, but now is gone. History shows that with good years, OK years, so so years, difficult years and painful years the market return has averaged just over 10% for the last 70 years. For me, investing in diversified investments in the stock market for the long term is the best return for 401k's that I find.

testimonial

2008-10-17T10:48:00.000-07:00

"Having been somewhat successful in our ....business for nearly a decade, my husband and I found ourselves in unfamiliar territory during the downturn in San Diego over the last couple of years. We were struggling to maintain our lifestyle and manage the loss of income at the same time. ...... A friend of mine from church was going through a difficult situation as well and while sharing and trying to encourage one another one day, she mentioned knowing a 'financial guy' who was also a Christian and who 'really knew his stuff'. So, I took his name.
A few days later my husband and I found ourselves under the gun to make a financial decision the following day (Saturday) with one of our creditors. Never having been in this position, we had no clue what the ramifications of our decision, one way or the other, would be. I mentioned jerry to my husband and he thought we should try him.
So, I called Jerry on a Friday evening at about 6:00 pm., left a message and just assumed I would hear back from him on Monday. That evening about 9:15 pm I received a call from Jerry. He was familiar with the scenario I described and encouraged us that we could buy more time from the creditor before making the decision, so he could analyze the situation. He offered to meet with us Monday morning at 9:00 am. Wow! That was impressive enough, until the last part of the conversation that night. As we were ending our conversation, Jerry made a point of encouraging us by reminding us that we needed to be looking forward and that there would be no judgment on his part, whatever the circumstances. He was clearly a Godly man and Christ shone through him that night.
We did meet with Jerry that next week. His vast financial knowledge and experience were immediately evident. Since that time our family has been through extremely difficult challenges and trials. We have had to make some of the toughest decisions of our lives and Jerry has been there with us every step - always just a phone call away. He has seen us cry, he has seen us at our most stubborn, he's seen us laugh and he has made us laugh. He has become so much more than a financial advisor. He has become a source of encouragement, a Godly counselor, a confidant, and a friend.
We would highly recommend him to anyone looking for an honest, forthright, and knowledgeable, sincere person to handle their finances.
Sincerely,
K & L

Classroom Opportunity

2008-08-18T10:47:00.000-07:00

The Malachi Group is excited to announce a new venture in bringing financial literacy to our area.

We have been asked by the Poway Adult School Education to bring our "Mastering Money - Financial Liberty" class to their venue at the Rancho Bernardo High School, 13010 Paseo Lucido, San Diego. The first series will be held on Tuesday September 16th and 23rd. It will be from 6:00 to 9:00 pm in room 505. The fee is $45, payable to Poway Adult Education. You may go to their website
www.powayadultschool.com to register.

We are looking forward to this new opportunity to help teach others a way to take control of their day to day finances to plan for a new financial freedom.

Spread the word!

chocolate

2008-08-18T10:08:00.000-07:00

Being a recovering "compulsive" shopper, I agonize long and hard over all the purchases I make - from dishtowels to candles, ink for the printers, airline and hotel reservations, and of course, the most important of all, chocolate. The choices seem endless, and if I am only going to buy one, it has to fit my budget and please my palette!

These days, my trips to buy groceries take longer and longer, as I read labels for "wheat free", protein content, fat content, organic, sustainably grown, calories, and then, the worst part - the price.

How can so few items in my grocery cart add up to so much at the end? Today the cashier looked at me and smiled as she said "You saved $25.43 today - the total is $91.61. That's not so bad.... anything under a hundred is pretty good!" I replied, "Maybe so, but I just wish my cart was full." (no comment from the cashier)

As I unload the groceries at home, I think to myself - how is a family of four or six or however many, surviving? Are they buying a lot of macaroni and cheese dinners? Which by the way, are not wheat free.

No wonder so many groceries are bought with credit cards these days. How can the average American family, especially here in Southern California, buy enough food for the week on a budgeted amount that was meant to last for the month? In a recent article by Gary Weiss, I read that the average American carries four credit cards in their wallet. And we all use them more than we should. Today, the credit card debt in the U.S. has reached a record high of nearly $1 trillion dollars, according to the latest figures from the Federal Reserve Board. The average American's household debt from credit cards has risen from $2966 in 1990 to $9984 in 2007. Now, I am guessing the "average" American he is referring to does NOT live in San Diego.

To make matters worse, credit card companies try to lure the young and financially unstable consumers into their clutches. If you have had trouble paying your bills in the past, you can expect to receive tons of new offers for transfers and new credit cards. Mr. Weiss writes"During the first quarter of 2008, for example, 30% of credit-card mailings were specifically targeted to customers who already were steeped in debt."

So I was also pleased to read that both Congress and the Senate are working to pass some legislation to establish a Credit Cardholders Bill of Rights, and set some strict guidelines for the credit card companies. And the Federal Reserve Board is proposing tougher rules to protect consumers. These things won't happen soon enough, in my opinion. Yes, we the consumer, are at fault for overspending what we do not have. But it infuriates me that these companies that are worth mega-billions, take advantage of the already downtrodden and financially undereducated consumer.

In the meantime, be sure you know what you are agreeing to when you fill out those credit card applications and transfers. Read the small print. Always pay before the due date. Pay off your balance if at all possible. Read what comes in the mail from your credit card companies. Watch out for hidden fees and penalties.

Don't use your credit card just to buy an item that is "on sale". You will still have to pay for it, and you haven't "saved" a penny. Write down a list of your credit card debts, and pay off the smallest balance first, while making your regular payments to the others. This will give you a sense of accomplishment!

Lastly, save your loose change to buy the chocolate - and try to keep it under $3.

Mary Jo Troyer

No One Succeeds Alone

2008-07-07T14:11:00.000-07:00

We have been privileged to have Lois Tiedemann at one of our Mastering Money workshops. She wears many hats in her professional life: business coach, multiple business owner, sales professional, and an Ironman Triathlete. She shared at our workshop areas in each of our lives that need to be balanced – our mind, body and Spirit. By creating a work/life balance, she has found for herself, and helped many others find financial gain, confidence in leadership, physical strength, and spiritual transformation and growth – all leading to a life of greatness and fulfillment.

She writes: “You are never the same once you start something and move forward to cross that finish line. And you don’t have to be a triathlete to discover this. You are your own triathlete, in whatever goals/dreams you are pursuing, by staying focused on the journey of life. By finishing strong in all things, you too can find your own transformational success journey is all about the Being and Becoming – not just starting and finishing.”

Her book “No One Succeeds Alone” may be purchased through this link:

http://www.triathlonbook.com/store.html

You may also sign up for her Free online newsletter from her website:

http://www.transformedtriathlete.com/

We totally support Lois in her mission and vision to help others succeed.
Visit her website today!

Let’s continue to journey together towards transformation success!

Financial Problem?

2008-07-01T10:28:00.000-07:00

It still rings true. Financial trouble is one of the greatest problems experienced by couples and families. Statistics sight that financial issues are the third greatest reason for divorce. With that said we assist our clients in overcoming financial obstacles by helping them identify what all of their living expenses include. Whether expenses are a monthly expense or a non-monthly expense, a calculation is made to address them in the "planned spending program". Also, we identify what is the actual and specific amount of discretionary spending. A compilation is then made in a specific "planned spending program". This is a true and accurate measurement of the comparison of income to expenses. Normally there is a need to re-evaluate spending once the results are totaled. The old adage is still true that living within your means brings contentment. Living outside of your means on increasing credit, leads to financial crises, financial baggage, emotional disruption with family members and discontentment with ourselves. Living on credit leads to financial disaster. A question we often ask our clients is what will you do when you can't get any more credit?

If you are in a financial predicament right now, want to pay your obligations, but don't know where to turn, look to us. We have assisted many clients in financial crises. Our staff of experts has been able to help hundreds of clients who couldn't find the answer on their own.

If you are nearing the stage where you don't know where to turn but know you have to change the way you handle your finances, contact us, we can help before it is too late.

Wouldn't it be great to drive down the highway being content and enjoying the drive instead of stressing over your finances and how you will meet the next payments?

Another option before walking away from your home

2008-06-12T15:49:00.000-07:00

Are you in a financial dilemma regarding your delinquent home loan? You have thought about options - foreclosure, short sale, or just walking away. Perhaps the options have financially racked you. Repeatedly. There is yet one other option to look at before you do any of the above.

If you have a mortgage loan of 81-100% LTV (loan to value) you may want to consider speaking with your Private Mortgage Insurer. The PMI(Private Mortgage Insurance) provider has guaranteed the bank/mortgage lender that if you don't pay the bank/mortgage lender, they will reimburse the bank its losses after the foreclosure. The bank, not the borrower, is the beneficiary. If all sides agree to sell the house for less than the loan balance (short sale) the PMI provider will then pay the bank the amount of the bank's loss.

As long as you originally took out only a first mortgage loan for more than 80% of the original appraised value you may be able to construct a work out plan through the PMI provider and your bank/mortgage lender. You may contact your PMI provider directly. If you are currently delinquent they may have already contacted you. Two major companies that provide PMI are MGIC and Genworth. If you have PMI and are paying premiums but you don't know the company name you can review your closing statements or call your bank/mortgage lender to find out which company you pay. These companies are very interested in reducing their financial losses. Some have taken the following positions to reduce their losses.

1) Seek a lump sum payment from the borrower. (Seldom a viable option for the borrower.)
2) Try to fashion a plan for the borrower to repay the past due amount within a year or 18 months.
3) Discuss modifying the mortgage by changing the rate or the final payoff date or even forgiving some debt.
4) If none of the above options work the homeowner will have to proceed with a short sale, foreclosure or returning ownership to the bank.

Genworth recently introduced its first "foreclosure prevention scorecard" a quarterly report about its loss-mitigation efforts. The insurer worked directly or indirectly with 2,871 borrowers in the first three months of this year, and 2, 613 worked out deals to remain in their houses. A little more than half of the delinquent borrowers got repayment plans and 37 percent got mortgage modifications. 1

Before you throw in the towel check to see if PMI premiums are included in your mortgage payment. If so, check in with the PMI provider and see if there are any other options available.

This is one last option you must address. PMI providers are ready to address your situation today!

1 Bankrate.com - Mortgage Insurers try to reduce foreclosures.

Welcome to The Malachi Group Blog!

2008-05-13T13:15:00.000-07:00

The Malachi Group was founded on the principal of helping Americans further their financial education to achieve their goals, plans and desires. With over 36 years of financial services experience, the company specializes in training families to eliminate debt through a series of informational workshops. These simplistic workshops have helped Americans take control of their finances so they can focus on their lives again. Learn more about our interactive TAKE CHARGE programs and get started today.