You Purchased a Timeshare, Now How Do You Get Rid of It?

March 22, 2016March 22, 2016 sharkeyhowesandjaver Just for Fun, Tips Assets, Estate, Estate Planning, Timeshare

If you have ever traveled to a resort associated with a timeshare, it’s likely you have been approached with a presentation about timeshare ownership. You’ve enjoyed the amenities and accommodations throughout the week and daydream about how nice it would be take a similar vacation every year. Timeshares give you the ability to return and relive your travel experiences or, for an additional fee, you may opt to exchange for a different resort location expanding your vacation options. You are able to enjoy home-like accommodations and your long-term savings over hotels may even outweigh the upfront purchase price. Many are drawn to the appeal of owning a timeshare; however, once purchased, you own an asset that could become more of a hassle than you originally planned for.

Over time, your situation may change and you may find that you are unable to use your timeshare as much as you would like. At that time, you may want to sell it or simply walk away. Or perhaps you have enjoyed your timeshare for many years and have no plans to sell, but start to wonder, “What will happen when I pass away?” Continue reading →

Inside the Economy with SH&J: March 14, 2016

March 15, 2016 sharkeyhowesandjaver Economic Discussion Series, Economy, Larry Howes, Videos Employment, Federal Budget, S&P 500, U.S. Economy

This week’s Inside the Economy with SH&J includes explanation of how the price of oil has largely contributed to the recent S&P 500 recovery, yet earnings will likely be the primary factor influencing S&P 500 growth in the near future. The U.S. is seeing the start of a manufacturing rebound as well as the beginning signs of full employment. Inventory buildup is decreasing as consumption picks up and the labor participation rate is on the rise. Core inflation has slowly increased and appears to be sustainable, giving the Fed rationale for a rate increase this year. Listen in to hear more on these issues as well as commentary on nuclear energy worldwide and the Federal Budget.

10 Tips to Boost Your Travel Smarts

March 8, 2016March 8, 2016 sharkeyhowesandjaver Just for Fun, Tips

Traveling is fun, exciting and sometimes stressful. Break-ins, identity theft, pickpocketing, and other traveling mishaps can not only ruin a vacation, they can have a tremendous impact on your life. Learning a few travel lessons before hitting the road can help eliminate many travel misfortunes and free up your vacation for more fun!

1. Leave Home Lived In
Whether you are gone for a long weekend or a trip overseas, it’s important to leave your home looking lived in. Consider putting a light or two on a timer, ask a neighbor to bring in mail, and put a stop on daily newspaper delivery while you are away. Lock up valuables you aren’t taking with you such as jewelry, social security cards, and family heirlooms.

2. Freeze Your Credit
If you plan to be gone for an extended period, consider freezing your credit. A credit freeze blocks access to using your credit so no one can open a credit card or apply for a loan while you are away. Continue reading →

The Value of Objective Financial Planning

February 29, 2016March 7, 2016 sharkeyhowesandjaver Planners, Tips Assets, Debt, Financial Goals, Financial Planner, Income, Portfolio, Rate of Return

Outside of a portfolio’s rate of return, it’s often easy to overlook the value that objective, client-focused financial planning brings. Although many financial professionals offer “free” services, do you stop and ask yourself “Hmmm, I wonder how he/she is paid if it’s not by me?” (source).

As objective financial planners, we fully support the “you get what you pay for” belief. Below is a list of just a few of the values we believe objective planning offers. Please feel free to let us know your thoughts on any of the following.

1. An independent financial planner helps protect you from financial salespeople.

According to Bob Veres, “…the Wall Street firms that pretend to offer financial planning guidance are seldom (if ever) looking out for the best interests of their customers.” Unfortunately, as a consumer in our industry, it’s not always easy to recognize when there’s an underlying motive or incentive behind the financial advice you receive.

Brokers might have business cards with the title of “Financial Advisor,” but in reality are often simply salespeople who are paid by their company to sell you as many products as possible. Unless they are a fiduciary, they are expected to do what is in the company’s best interest, not what is in your best interest. They are rewarded when they meet sales targets, and bonuses are often based on the clients they sign (source). Continue reading →

Avoid Being “House Rich, Cash Poor”

February 23, 2016February 22, 2016 sharkeyhowesandjaver Investing, Tips Home Affordability Calculators, Home Loans, Mortgage

Recently, a client was trying to understand how much home he could afford in the current Denver real estate market. Over the course of his home search, his maximum price point grew from $500,000 to $700,000 as he discovered how much it would take to purchase a home that fit within his criteria. The lender had approved him for the higher amount, so he assumed it was something he could comfortably afford. In addition, he had used several online “Home Affordability Calculators” that justified his inflated price point.

Thankfully he came to us before any of his offers were accepted. We calculated his new expected housing costs relative to his gross annual income, taxes, savings goals, and monthly obligations. In the end, he opted for the lower mortgage price point we proposed and was relieved that it would allow him to continue supporting his family and saving for long-term goals, many of which he would have had to forego had he chosen the higher priced home.

After our meeting, we reviewed several of the online “Home Affordability Calculators” by plugging in our own information and the results were breathtaking. The suggested home price points we received were also dramatically inflated.

Therefore, when you are shopping for your next home, we suggest taking a look at the difference between the approved home loan amount and the home loan amount that is appropriate for your own personal financial situation. Oftentimes, the two numbers are vastly different.

Why might this be the case? Although monthly obligations (debt, child support, etc.) and long-term savings are often considered in the mortgage lender’s calculation, the assumed savings (for retirement, education, etc.) are typically insufficient to reach your goals.

The term “house rich, cash poor” is a common term for being in the predicament where you’ve got lots of home, but not a lot of cash to meet your other needs. In order to avoid this destiny, we suggest working with a Certified Financial Planner™ to find the appropriate price point when purchasing a new home. If you are interested in a complimentary consultation or meeting with your current advisor, please do not hesitate to call us at 303-639-5100.

Meet Stephen Weatherby

February 18, 2016February 17, 2016 sharkeyhowesandjaver SH&J Team Family Financial Planning, Meet the Team, SH&J Team

Name: Stephen Weatherby

Title: Certified Financial Planner™

SH&J team member since: September, 2012

Having grown up in Texas, what prompted you to move to Colorado? Have you carried any specific Texas traditions out here with you?

My family was one of those “Texas Families” that clogged the roads in Colorado during the summer. We would vacation here every year. I always said that one day I would live here. After graduating college, and working in Austin for a while, I just decided to make the move. I love everything about Colorado, but miss the BBQ and Tex-Mex food from my home state.

Being someone who loves the outdoors, what are some of the activities you enjoy most? Do you have a favorite memory or specific moment that stands out for you?

I love to camp and go fly fishing. Some of my favorite memories are doing both of these with my son, Jack. One of my favorite memories is when Jack caught his first fish on a fly rod outside of Silverton, CO a few summers ago.

What do you love most about living in Colorado Springs?

I like the small town feel with the convenience of a larger city. There are also a lot of parks, trails, and beautiful scenery to enjoy on the weekends.

Living in Colorado Springs, and commuting to Denver every day for work means you spend quite a bit of time in your car. What helps you pass the time?

Audio books! I listen to a lot of books. Some of them are educational, but admittedly, most are for entertainment.

You have an extensive background in financial planning. Tell us a bit about your career path, including your work with the military, and how that ultimately led you to Sharkey, Howes & Javer.

I graduated with a very specific degree from Texas Tech University. The degree was in Family Financial Planning. While it had the traditional Finance, Economics, and Accounting classes, it really focused on the people aspect of financial planning. We really dug deep into trying to understand people and their relationships with money, and how that affected all aspects of their lives. I knew I wanted to be on the Fee Only side of the business before I began my career.

One of my previous stops was with a government contractor that provided financial education and training for all branches of the military. This was appealing to me for several reasons. It allowed me to provide education and financial planning services to a group that traditionally may not have had access to financial planning that wasn’t geared around a product sale. It also allowed me to travel to places that I would most likely have never been able to travel to on my own. I loved every minute of the work during this job, but I was hardly ever home. I made the choice to start looking for a more traditional position with a fee only firm in Colorado. I looked for over 2 years before I found Sharkey, Howes, and Javer. After interviewing with SH&J, and hearing about their client relationships and how they approached financial planning, I was sold.

Inside the Economy with SH&J: February 15, 2016

February 16, 2016March 15, 2016 sharkeyhowesandjaver Economic Discussion Series, Economy, Foreign Investments, Larry Howes, Quarterly Commentary, Videos Global Economy, S&P 500, U.S. Economy, U.S. Labor Market

As lack luster S&P 500 performance continues to plague media headlines, this week’s economic discussion provides reasoning around lower earnings and a high percentage of sales coming from struggling overseas economies with weak currencies. Low energy and material prices are also contributing to lower performance figures. Hear commentary about how a prolonged duration of low oil prices could cause a global sell-off of European stocks and what effect it may have on business and consumer sentiment, particularly in the U.K. Meanwhile, in the U.S., the labor market continues to improve with 5.61 million available positions, retail sales are up, banks are back in the lending business, and consumer spending and consumer sentiment are on the rise. Listen in to hear more!

Presidents Day: Fascinating Facts About 10 Past Presidents

February 15, 2016February 9, 2016 sharkeyhowesandjaver Holidays, Just for Fun Holiday Hours, President's Day, U.S. Presidents

For many, Presidents Day is simply a three-day-weekend. For others it is another day at the office. Presidents Day was first known as “Washington’s Birthday” and was established in 1885 in recognition of George Washington’s birthday. After the 1971 Uniform Monday Holiday Act, the day became commonly known as Presidents day. (source)

Join us today in learning a few facts about some of our former presidents:

George Washington (1st President 1789-1797)
George Washington’s estate was worth about $780,000 when he died which was about 0.19% of the nation’s GDP at that time. In 2014, his estate would have been worth about $34 billion in today’s dollars. (source) Continue reading →

Inside the Economy with SH&J: February 1, 2016

February 5, 2016February 5, 2016 sharkeyhowesandjaver Economic Discussion Series, Economy, Larry Howes, Videos China, Global Economy, Inside the Economy, U.S. Economy

As the year begins with volatile markets, investor sentiment is a bit shaken and all eyes are on China as the media’s darling. However, China is not the only country with rising debt issues as emerging market nations (in general) are facing rising debt as well. Currency is flooding out of China’s borders in anticipation of the inevitable devaluation of the Chinese yuan. Yet, this could bolster foreign spending, specifically in real estate outside of China. There are additional bright spots as well; the U.S. seems poised for growth (albeit slow) but growth nonetheless, and Japan has implemented negative interest rates in an attempt to discourage savings (believe it or not) and encourage spending to boost their respective economies. Listen in as Larry puts perspective on all these issues and more.

Sharkey, Howes & Javer Blog

Thoughts to help you Plan, Invest and Succeed.

Year: 2016