Get Up and Get Moving!

Do you ever have those mornings when the alarm goes off and you feel like you are in a dream with still hours of sleep remaining?  Sure you have. I had one of those very moments this morning. In fact, this has become a rather recurring theme for nearly a month now.

I admit, over the course of the past month I've succumbed to the majority of these moments. Yes, that’s right! I've hit the proverbial snooze button a half bazillion times, struggling to catch yet another 10 minutes of sleep. Who ever thought of the 10-minute snooze default anyways? My guess is probably the same dude who came up with the 8-hour workday.

Just so we set the record straight, I’m not talking about an alarm set for 9, 8 or 7AM – mine is set for 4:30. I know, most people think this is far too early anyways. Sometimes I’d agree. 

The issue for me is that I’m going to bed early enough and getting enough sleep – I just want more. So, I find myself doing just that. The result isn't exactly great. 

Here’s what my observations have been just this past 30 days or so. My hope in sharing this is that maybe it will help you to GET UP AND GET MOVING!

1) Once the alarm goes off, there is no such thing as “going back to sleep”. Sure, you might find yourself falling asleep but the result isn't true, peaceful rest. Instead, you’re much more likely to wake in an awkward portion of the sleep cycle, rushed to get ready, and walking around at a 45-degree angle to the floor for the rest of the day (like the folks on the old v8 juice commercial who hadn't had their v8 that day).

2) For the rest of the day, you’re likely to feel “off”. Sure you’ll make it through, you just won’t have the focus and energy you would have had otherwise.

3) You risk the possibility of feeling like you've failed in meeting your goal(s). After all, the “simple” goal of getting up early(er) is often what people set in order to accomplish other more complicated goals (like working out, prepping a good diet, or enriching their lives in general).

Are you ready for the solution to all three of the negative results listed above? Yup, you guessed it! GET UP AND GET MOVING!

Losing Money?

 “Rule number 1: Never lose money. Rule number 2: Never forget rule No. 1.”
                                                                -Warren Buffet

It’s most likely Mr. Buffet was referring to never losing money through investing. Ever think how much money you might be losing simply to investment-related fees?

Take a few minutes to review the fee structure related to your investments. Really study this and let it sink in for a few minutes. Now, close your eyes and think of the cost. What feelings flood your mind?

Fees are not inherently evil. After all, there really is no such thing as a free lunch. Fees turn evil when they exist for no real apparent reason or are excessively high in comparison to viable alternatives. 

One financial advisory firm has a 42-page document explaining how they are compensated. Do you think you could fully grasp all the fees and compensation - even if you read all 42 pages?

If you aren't working with an adviser, chances are you have a 401(k) or similar plan available to you through your employment. Do you know how much it costs YOU to invest in such a plan?

Vanguard provides a nice, short and sweet analysis on the topic of fees.

Also, consider watching this documentary by PBS Frontline:

Today is the day to begin making sense of the fees you pay!

Tracking?

If you've ever been a member of the military or somehow working within or around the military environment, you've likely heard or been asked: “tracking?” Sometimes there are various forms – “we tracking?” “are you tracking?”. 

I can recall one of my senior enlisted leaders throwing out the small question nearly every time he gave an instruction or made a point. As you might have guessed, it’s a simple question to acknowledge that all are on the same page in the conversation. That is, it’s a small request for confirmation that communication is being effective and positive results are sure to follow.

In his book The Compound Effect, Darren Hardy says, 

“Tracking is a simple exercise. It works because it brings moment-to-moment awareness to the actions you take in the area of your life you want to improve…You cannot manage or improve something until you measure it.” He goes on to say, “[e]very professional athlete and his or her coach track each performance down to the smallest minutiae.” 

This is so profound! Think about it. When is the last time you were able to make serious progress (or any at all) without a firm grasp as to what was going on? Whether at home, work or otherwise, how are you able to ensure strong communication if you aren't tracking?

Financially speaking, it is common to get bogged down by all the technical stuff – numbers, taxes, different accounts, products, investment options. Many people simply give up and hope for the best. The dreaded “B”word – the budget is despised and ultimately no forward progress is made. 

The solution is actually quite simple, at least in theory. Tracking! Begin tracking everything, in every area of your life you wish to improve upon. Whether it’s physical fitness, work performance, relationships, or finances – tracking provides constant bench-marking to weigh against where you are and where you want to go.

Okay, so, tracking is simple. However, actually doing it is the difficult part. Since financial planning is my specialty, I have something special to offer you in that area. I used to mandate to my clients that they track ALL their expenses, saving purchase receipts and recording accordingly. This is still a highly effective process. However, with the use of awesome technology, I, as your coach, track your progress with you and become the hard-ass you need to ensure you meet your goals.

We tracking?

Paying too much for your phone?

In recent years, some consumer surveys have determined that a good portion of individual American mobile phone bills approach nearly $200 per month. Your particular bill could be much more depending on how many lines of service you have. Of course, this amount doesn’t include cable, satellite, internet service, etc. 

Personally, I held off for quite a while before purchasing a smart phone. At the time, that seemed to keep my bill in check. I used Straight Talk service which cost me about $60 per month after taxes and such. Over a year ago, I heard Clark Howard talking about a service called Republic Wireless. I quickly calculated that paying the $300 upfront fee for the Moto X smart phone and subsequently carrying a $25 monthly fee, would eventually be a great deal compared to what I was doing. Now, my total bill comes to $29.40 per month and includes unlimited 3G data, text and voice.

Let’s just say if you are still paying more than $40 per month for mobile service, you are likely paying much more than you could be. There are quite a few low-cost but high quality services out there which compete with the big companies like Verizon and Sprint. Really, they’re not really competing with them as they essentially package, re-brand and resell the same services. Republic Wireless, for instance, uses the Sprint network while in cell mode. I’m a big fan of Republic Wireless and have been happy with the service for well over a year. 

There are other services you may wish to consider in addition to Republic Wireless. One of these is Ting. I can’t speak to the service directly but the a la carte method looks interesting. 

At any rate, the point is that there are options out there to significantly reduce this monthly cost. It may not seem like a lot but the savings adds up. Once you get the cell phone knocked out, move on to other bills like cable/TV/internet.

Before you know it, you'll be saving a bundle.

VA Home Loan? This is a Must Read!

Have you ever experienced the feeling of going to the mailbox (yes, snail mail) and imagining something good waiting inside – like a check for a million dollars or something? Well, I have and for some strange reason still do from time to time. I’m guessing I’m not alone on this, otherwise why would companies still continue to advertise through the mail?

The reason snail mail advertising still exists is because to some degree it still works. This simple truth is the topic for this post. I’ll tell you right now that much of what you receive in the mail is plain garbage – especially when it relates to home mortgages.

If you have a VA guaranteed home loan, you have likely come across various advertisements in the mail since you signed on the dotted line. The advertisements purport to save you oodles of dollars through reduced interest rates and even suggest large “cash out” possibilities. 

Interestingly enough, the companies sending out this junk coincidentally align their business name, letterhead and other features to appear as some sort of official document. The only thing official, however, is that it is plain garbage.

The very fact that these advertisements get sent through the mail is enough to make my stomach churn. After all, mortgage rates fluctuate DAILY and there is no possible way their claims hold any weight whatsoever. Even worse is the fact that they are purposefully disguised as some important document coming from the VA and, oh-so-conveniently, during the holiday season. 

If that all isn't bad enough, the loan products they are suggesting are downright horrible! 

If you’re going to have a mortgage, it should be a FIXED rate. This means the rate does not carry the possibility of changing at some point in time. Given our current economic state, it is even more ludicrous to have an adjustable rate mortgage (ARM) as rates are super low and have been for some time now. That is, they will go up!

So, if you receive these advertisements, get rid of them – immediately! 

Seasoned mortgage professional, Eric Fowlston, agrees. “The majority of the VA advertisements being sent by lenders are misleading and prey on Vets that do not understand the specific terms being offered. For example, these advertisements will promote a ‘fixed rate’ however they fail to tell you that the ‘fixed’ period is only for three to seven years before the loan becomes adjustable.”

 If you’re trying to figure out how to free up cash, make more money or invest properly, work with me. For as little as $99 per month, I’ll be continuously in your corner helping to protect you from this sort of stuff and applying my money nerdiness to YOUR particular situation. I’ll also act as a consumer advocate and team quarterback for you – ensuring you get connected to the right experts (like Eric) at the right times.

Eric and I aren't trying to beat up on you if you have taken these clowns up on their offers or have an ARM. We are simply here to help.

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Eric Fowlston is a veteran of the lending industry with over 15 years’ experience providing responsible residential purchase and refinance loans. Eric believes in living a debt free lifestyle and helps his clients pay off their largest debt, the home mortgage. Eric is a veteran of the USAF and currently serves in the 162nd Fighter Wing and is passionate about assisting military families obtain responsible homeownership with goal of helping veterans become 100% debt free. Eric may be contacted by phone at: 480.237.8174 or email him at: efowlston@peoplesmortgage.com

3 Tips for Tax Season

Yes, it’s that time again – TAX SEASON! I can hear the cheers and celebrations! 

Most people dread this time of year like the plague. Not only are you likely recovering from holiday expenses, now you have to worry about the extra amount Uncle Sam will take from your hard-earned income. Or, perhaps you expect a refund of some sort. Either way, filing your tax return is inevitable and growing more and more complex. 

Don’t fret; following are some things to consider during the process, along with some resources that will help you along your way.

1) Go it alone or hire someone? The answer depends on many different factors and can become a quite confusing question to answer. I urge you to understand that regardless of if you file your return on your own, or hire an Enrolled Agent or CPA, the legal responsibility of a correct tax return filing falls on you, the taxpayer. Of course, this doesn't make way for the tax professional to commit a crime, fraud, etc., but it does mean that they can only assist you to the extent you provide them accurate and complete information. 

You may benefit from a tax professional if you own real estate, have a lot of out-of-pocket medical expenses, run your own business (or even hobby), work as a sub-contractor, you or family members are college students – really anything that makes the return more complex. However, think twice about hiring a professional if all you have is a job or two between you and your spouse, and receive your Form W-2’s. In this case, the return is not complex and likely doesn't warrant the $100 or so professional filing fee.

If you’re a military member, look into services offered through militaryonesource.mil. They provide free filing through HR Block’s online software program. Various organizations also provide free assistance through the IRS Volunteer Income Tax Assistance (VITA) program.

2) To claim or not to claim? Simply put, far too many people make tax filing overly complicated because they think they can claim deductions and credits for everything under the sun. In fact, while there are a good number of such credits and deductions, knowing which ones to claim and exactly how to go about doing so is key. It’s good to get a second opinion as to your specific situation if you feel a bit overwhelmed.

3) Don’t Forget the State! Here in Arizona, we are subject to State Income Taxes. There are various credits and deductions which may or may not be available at the federal level.  If you missed the boat in capturing State credits before the end of the year, you can rest assured that you’ll have another chance this year!

Questions? I've got answers!

What’s Your Achilles Heel?

I haven’t always been a runner. In fact, I don’t really consider myself one now. To be honest, I don’t know when someone like me actually kneels and is dubbed Sir Runner. I suppose that paying to run in the form of what most normal people would refer to as “crazy races” has something to do with it. Or perhaps it’s my new Android app with the British accent lady that so eloquently reminds me of how many miles I am from home – on one of the only days it chooses to rain in the good Ol’ Pueblo. I guess I am a runner because I didn't turn around.

I still can recall my freshman year of high school. I had played football in the eighth grade and the team was, in fact, horrible. I do recall that I had fun though. I had enough fun to go ahead and enlist myself into freshman football. It turned out to be not only a horrible team but also a horrible experience. You see, I wasn't an athlete – I wasn't expected to perform. In fact, I’m willing to bet that all bets were against me as to whether I’d show up for the next practice session. I did.

About two weeks into the season, I developed what the doc termed “Achilles Tendonitis” – in both legs. Sure, not a terrible condition, one might say. For me, it hurt like a son of a b**ch and most days I had a difficult time walking let alone performing athletically. I also had a knee issue that caused a good amount of pain there too. To make matters worse, I didn't have the experience of a good coach who was able to see something inside that I couldn't. I limped through the entire season. Suffice it to say that freshman football scared the bejesus out of me! After that, I wanted nothing to do with running or any exercise at all. In fact, I thought those types of people who enjoy this stuff were just plain crazy. I met my Achilles heel, literally.

As you could imagine, I didn't become an all-star quarterback or lead my team to victory. I did learn something though. It wasn't until eight years or so later that I mustered enough courage to put freshman year of high school to rest and enlist in the military. Sure, the Air Force has been known for being at least a bit lighter in the physical training demands, compared to other services – this was still a big step for me! I made it through and later deployed to Iraq and became the most physically fit I had ever experienced. I don’t think this was mere coincidence. I think the atmosphere, camaraderie and all the other stars simply aligned to help coach me to better physical shape. I set goals and met them, regardless of the past and what I thought was impossible.

As humans, I think we often find ourselves crippled by our very own perceptions of our circumstances. That is, an Achilles heel takes over and robs us of the power and ability we truly have within. We become injured, whether it is physically, emotionally or otherwise, and then often throw in the towel. This response never results in success.

As we press on into a new year, think about what’s holding you back from achieving the things most important to you. Is your Achilles heel really all that debilitating? It may just be that all you need is a slightly different approach, a different perspective or newfound motivation flowing from a different source. After all, you might just accomplish more than you ever imagined was possible.

I've come to believe that all my past failure and frustration were actually laying the foundation for the understandings that have created the new level of living I now enjoy. - Tony Robbins