How I locked in a historically low mortgage rate without getting lost in research, voicemails, and paperwork.
By Brad Beckstrom
I’ve been putting it off. Mortgage rates are at historic lows and, on paper, it made a lot of sense to refinance my current mortgage to a 10 year mortgage available at a lower fixed rate. It’s just that even thinking about my past experiences with refinancing both my home and some rental properties gave me gas. I knew I needed to get it done, especially since I’m always telling people to cut their largest expenses first. Our mortgage is our largest expense.
I’d made some mistakes in the past, like listening to some TV ad and then going to a website like Lendingtree. They say they’re going to find you the lowest rate but in fact they are getting all of your information and giving it to banks, selling your name as a lead. Immediately your phone starts to ring off the hook from banks you’ve never heard of. Luckily I gave them a Google voice number that sends all these folks directly to a digital voicemail graveyard. The messages are transcribed for me in a Gmail account and I quickly delete them in bulk. But, the calls kept coming for months. So, the lesson here is don’t give your loan or refinance information to any consolidator site, claiming to “find the best rate” or “do the work for you.” In fact, take this one step further: don’t share any of your personal information, email, phone number, address, income etc. with any mortgage site, including companies like Quicken Loans. Or any other big banks that bombard you with national TV ads. There’s a reason they can afford to advertise on the Super Bowl.
When it comes to finding a great mortgage rate, you’ll actually save time by doing it yourself, and you won’t have to share any personal information. Here’s a few steps I recently used to lock in a fixed 2.37% rate on a 10 year mortgage. With rates this low there’s really no benefit in getting an adjustable rate loan. Read more…
By Brad Beckstrom
“Have a small nut; that’s the key to life.”
What’s an aging rock ‘n roller to do, the once big recording contracts, the limos, seven-figure tour revenue all start to trickle away? Graham Parker, a British punk rock pioneer, knows exactly what to do: enjoy life, have a great time, and keep making music. Graham’s quote “Have a small nut; that’s the key to life” sums up one of the core principles of financial independence. The small nut he’s referring to is not assets, but monthly expenses. Rock stars, athletes, entrepreneurs, everyday folks all hit the same wall. We hear these stories all the time, from the extreme, like Mike Tyson blowing through $400 million and ending up homeless, to the highflying salesperson that overextended themselves, justifying their current expenses on future income fantasies, only to be chop blocked at the knees by a corporate reorg or downsizing.
Professional athletes know this story all too well. The average career in the NFL is about four years. In major league baseball, it’s a little over five years. Knowing this, it seems crazy when you see young athletes, blowing their entire signing bonus, borrowing against it before they even get a check. The secret is to do the opposite, save the entire bonus along with any windfalls, and keep your monthly expenses to a minimum. Read more…
By Brad Beckstrom
Have things gotten too complex?
Today we have more savings and investment options than ever before. Online tools and investment options that give us access to over 10,000 mutual funds and exchange traded funds, with another 40,000+ publicly traded stocks worldwide. Most of these investments are accessible without setting foot in a brokerage firm or bank. Online banking, trading, and mutual fund supermarkets give us access to sophisticated investment tools available only to professionals just a decade ago.
Yet, despite so many options, the US personal savings rate is hovering between 5% and 6% and has been in steady decline since the 50s. The retirement savings picture is even worse, one in three American adults has zero saved for retirement and 62% have less than $1000 saved. Many Americans like to blame the government for this predicament but in fact many countries with significantly higher taxes have savings rates that are 2 to 3 times ours. On top of our tax advantages, we have a wide selection of pre-tax and post-tax savings options many other countries don’t have, including 401(k)s, IRAs, SEPs, Roth IRAs, Health Savings Accounts, 529 college savings plans, and about 10 more with various combinations of numbers and acronyms in the name. All of them are underutilized by any standard of measurement.
Part of the problem is complexity. We’ve made it easier to go out and get a loan for a new SUV or a 5,000 square foot house than to start saving or put that money away for retirement. We’ve been incentivizing people to take out student loan debt instead of starting college savings accounts.
To solve the complexity problem we need to make it easier to save and invest. We need to create a simpler path to wealth through regular and efficient investing. I like to call this Lean Investing. Read more…
Nine Ways I’m Improving My Sleep and Fighting Fatigue .
By Brad Beckstrom
I shouldn’t complain, after all, I’ve spent a half a century on this planet without a major illness. I’m not sure my second half-century will go as well, but let’s cross that bridge when we come to it. In return for my overall good health, I’ve gotten to battle my share of ongoing “nagging conditions.” I think “conditions” is a good word for these because they are a state, a circumstance in which I operate, they are ongoing and generally unyielding to my efforts. I have learned to live with these conditions and manage them on a day-to-day basis so that they’re generally unnoticeable to others and, on a good day, unnoticeable even to myself.
What is my condition? Boogers. That’s it. That’s what I’ve called it since I was a kid “Boogers”. The official medical term is Sinusitis, Basically your nose overreacts to everything and fills up with some sort of snot that dries up in the night and turns into boogers. It’s sort of like having a mild cold all the time. Immediately people think “oh, you must have allergies.” Nope, I’m allergic to nothing. I’ve been tested probably 5 times, even once at the National Institutes of Health. After sprays and meds didn’t work, top docs told me, “oh, the problem is your deviated septum. Surgery can fix that.” I got a second opinion, “yep surgery will fix that.” I got the surgery, it didn’t fix it. It’s my condition. It’s not going anywhere.
I was told that these sinus problems need to be addressed or they can lead to sleep apnea which can lead to stroke, cancer or DEATH. So, now these boogers could kill me if I didn’t get rid of them. Or more likely, my wife will kill me for my loud snoring, Read more…
Followed by a 11 things I really wish I knew my freshman year.
By Brad Beckstrom
I came of age and entered the working world in the 80s and 90s when self-help books, CDs, and personal improvement seminars were all the rage. Classics like The 7 Habits, What Color is your Parachute? And many others from authors like Napoleon Hill, Tony Robbins that are still popular today. They were full of exercises and to do lists, charts and graphs, but what I really remember where the quotes, many of them decades or even centuries old. The ones that lasted. The knowledge these writers returned to again and again.
Self-help books are full of knowledge from a diverse group. Here I’ve quoted Maya Angelou, Ralph Waldo Emerson, Bruce Lee, Frank Zappa, Calvin Coolidge, Joe Strummer, St. Augustine, and Marcus Aurelius.
It was the quotes, the short sentences with powerful meaning that connect, that I would highlight or write down. When things got difficult, I could go back and look at some of these words that writers, artists or leaders I admire have said. I’ve tried to incorporate them into core principles and a life philosophy. Some of them are pieces and parts of other quotes that spoke to me, so I decided to share them with my sons. My oldest is leaving for college and the youngest is beginning high school. I believe I’ve tried to live these, but just in case. After all we live 3 miles from Washington, DC, a city full of self-serving politicians, spin doctors and general corporate obfuscation. Today, standing for basic set principles can help one rise above the fray.
11 Big Life Things Read more…