Home

Mitlin Financial Nominated for Long Island Business News Reader Rankings as "Best Wealth Advisers" 2020

 Mitlin Financial, Inc. is pleased to announce that it has been nominated for the Long Island Business News Reader Rankings as "Best Wealth Advisers" for its 2020 Reader Ranking Awards.  As the winner of the 2019 award in the same category, we are looking to retain our title and could use your help!

We would really appreciate your vote and hope you can take the few seconds out of your day.

We do not take nominations like this lightly and really appreciate your support.  You can vote simply by clicking this link: https://mitlin.us/VoteMitlin2020 or by clicking the photo below.  You can also have the opportunity to win $250 from Long Island Business News. 

LIBN Reader Rankings 2020

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.  Mitlin Financial, Inc. did not pay a fee to be considered for this award, nor will it win any form of compensation if they win.

Making an Offer on a House? 11 Strategies to Win

front of house

So you’ve found your dream house and you’re ready to make an offer, but how do you make sure your offer stands out among all the others? How do you make your offer more appealing? Whether you’re dealing with a competitive housing market or a cautious seller, getting your offer accepted requires creativity, compromise, and a strong strategy. 

So how can you convince a seller to side in your favor? Check out these 11 strategies to help you seal the deal and make “home sweet home” a reality. 

  1. Get pre-approved for a home loan

Getting pre-approved will show the home seller you can actually afford to buy the home. This is an important step for a buyer in any situation, but it’s even more critical if you want to make the strongest case that your offer is solid.  

  1. Offer more than the list price

Whether you’re making an offer on a house in Atlanta, GA, or are looking to buy a condo in Dallas, TX, offering more money than anyone else usually wins the deal. So if you can afford it, offer more than the list price.  

  1. Add an escalation addendum 

When making an offer on a house, you can stipulate that if anyone beats your offer you’ll raise your offer by a certain amount, with a cap as high as you’re willing to go. This also helps you avoid overpaying, but still keeps you in the game in case there are other offers coming in. 

  1. Waive contingencies 

Contingencies are certain things that must be met in order to close a deal on a property – such as a home inspection. In multiple offer situations, buyers can waive some or all contingencies to reduce the seller’s risk and speed up the home selling process. Generally, the fewer contingencies you have, the stronger, but riskier, your offer. 

  1. Increase earnest money

Earnest money, also referred to as the good faith deposit, is typically 1%–3% of the sale price of the home and is applied toward the buyer’s closing costs. It also shows that a homebuyer is serious about the purchase of a home, because if they walk away from a deal after it’s been accepted, such as a change of heart, the home seller usually gets to keep the earnest money. By increasing the amount of earnest money you put down, you can show how serious you are about buying any home. 

6 . Increase the amount you’re willing to put down

A higher down payment typically means less financing issues with a mortgage lender and also less risk for a seller. So when you are wondering how to make an offer on a home and win, a higher down payment can make the difference. Presenting documents such as pay stubs, tax forms, and your 401(k) balance can also show that not only are you prepared to put more down, but you also have the funds to do it. 

typing on keyboard

  1. Write a personal letter to the seller 

Sometimes a personal offer letter can win a seller over when making an offer on a house. Tell them what you love about the home and try to make a personal connection. Compliment them on a recent renovation, a color palette choice, or the landscaping. It won’t always matter, but sometimes a personal touch such as a letter can mean more than having the highest bid. 

  1. Release earnest money early 

This means the seller gets your earnest money, in cash, prior to closing. The strongest offers release all of it immediately upon going under contract. Note: This option only makes sense if you waive all contingencies when making an offer on a house.  

  1. Be flexible with the closing date

If your lender allows and you’ve been through underwriting, you can promise to close quicker (15–21 days). Generally, the faster the closing process, the stronger your offer. However, the seller may be looking for a longer closing process. In that case, letting the home seller know that you’re flexible with the closing date could allow them the much needed time to move their belongings into their next house. 

  1. Arrange a rent-back agreement 

If the seller is nervous about selling their home before they can buy a new one, you can offer to be flexible with the closing date or arrange a rent-back agreement. This gives the sellers extra time to live in the home after closing. Essentially the buyer takes on the role of the landlord, and the seller becomes the tenant for a short period of time. 

  1. Pay in cash

This isn’t going to apply to everyone, but if you have the cash to cover the purchase price, offer to pay it all up front instead of getting financing. Not only are you eliminating the need for a third party to get involved in the deal, but you’re also showing the seller that you mean business. 

Emily is part of the content marketing team and enjoys writing about real estate trends and home improvement. Her dream home would be a charming Tudor-style house with large windows to let in lots of natural light.

Originally published by Redfin

 

What is a Bear Market?

 

Bear Market

One little known fact is how a bear market received its name. A bear, when attacked or going after its prey, will use its paw and motion downward to defend itself or get its prey.

Bear markets are a fact of life and one part of an overall market cycle. It has been over ten years since we have seen a bear market and due to recent volatility, it has come into the conversation. I am sure you have heard this term as well, but do you know what it means?

The technical definition of a bear market is where the markets have declined 20% or more from their recent highs. Should markets fall 20% or more in a few days it may not indicate a bear market. Certainly, if the markets decline, in total, 20 % or more over time and it is believed it will continue and not rebound it would be considered a bear market.

Bear markets are usually accompanied by an economic slowdown and rising unemployment. A bear market is usually indicative of an economy that is experiencing a lull which means corporate profits will experience a decline, spending will as well and layoffs will occur too. This is a natural part of the economic cycle and one you need to prepare for as part of your overall financial plan.

This part of the economic cycle is not one to be afraid and should be embraced. Bear markets do not mean all companies and all industries are being impacted negatively. There will be companies that will be well prepared to sustain themselves during an economic slowdown or bear market. It may mean a slight shift in your investment philosophy during these times. Also, for those with a long-term time horizon, the decline experienced during a bear market could present a tremendous opportunity to buy great companies at a significant discount.

Your financial plan must incorporate strategies on building portfolios that will endure in both bull and bear markets. I would also suggest stress testing your retirement plan against a bear market. Retiring during or shortly before a bear market can have an overall impact on your retirement plan. Testing this in advance of your retirement will help prepare you for retiring in this type of environment. This was most recently experienced by those who were retiring during the 2007-2009 bear markets.

We would be happy to discuss a bear market and how the Mitlin process helps you prepare for one. Bear markets are a natural part of an overall economic cycle and should not be ignored. It also does not necessarily mean all companies are set for a decline; it also presents opportunities. Just contact us, Mitlin Financial, at (844) 4-MITLIN x12 to schedule a time to discuss bear markets and your portfolio. Be sure to share this article with friends, family, and business acquaintances who might be interested too. We look forward to helping you, and them, get on the right path and stay there.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

529 Plan, What is that?

 

College Savings

 

In 1996 the Small Business Job Protection Act created 529 Plans, also known as “qualified tuition plans”. This account which allows taxpayers a tax-advantaged way to save for education expenses for a designated beneficiary, after 24 years, might be the account that most know nothing about.

According to a recent survey by Edward Jones, 67% (a 5% increase since 2012) of Americans do not recognize a 529 plan as an educational savings tool. Almost half, 48% of those who did recognize the 529 plan as an education savings vehicle were unaware that it could be used to pay for K-12 tuition expenses. College savings is an area that needs more investor education. This could certainly help alleviate the debt obligations of our students going forward and it is clear that current student debt is a burgeoning problem.

When you think about the enormous costs of sending your children to school, which according to the College Board is $49870 for the average private four-year school, you would think that more people would be using all tools available to them to save for college. The 529 savings account can be an excellent tool to begin to save for this lofty expense. The monies saved for your respective beneficiary grows tax-free as long as you use it for higher education.

The Tax Cuts & Jobs Act of 2017 added provisions that may allow you to also use these funds for K-12 expenses. The additional benefit of using these funds for K-12 could be another benefit if you have plans to send your children to a private school in the future. Keep in mind, some of the 529 plan benefits may be lost in certain states. In New York, for example, the state benefits received will be recaptured if the proceeds are used for K-12 and it will be considered a nonqualified withdrawal. You will want to check with your state, as your 529 plan may not follow the new tax law.

There is a struggle for most people to balance saving for college and for retirement at the same time. This is a fine balance that needs the attention of proper planning. Although you will not be able to borrow money for retirement, you will be able to do so for college, and you will want to have a plan in place to address both. Not having money in place for your children’s education may have an impact on your retirement down the road, but at the same time, overfunding your college savings at the expense of your retirement accounts will do the same.

The key here is to have a strategy in place that will allow you to save for both. Just like we advise clients to start saving for retirement early, it works the same way for education too. The more money you save for college early on, the less money you will have to add later on because you will benefit from the concept of compounding.

Think about it; if you start working after leaving school and start funding your retirement right away, you will be in a position to lower your retirement contributions when you have children and be able to start allocating the difference to their college funds. Depending on how many children you have and what your goals are for supporting their education, you may be able to shift this strategy back by the time your child is ten years old. Getting caught with a child at the age of eighteen and having nothing allocated for college education will, in most cases, place a strain on your financial situation.

529 plans can be a vital tool in your education funding savings strategy. I think it is disheartening that this tool is not well known and very much underused. It is vital to engage a fiduciary advisor as early on in your life as you can. This relationship will provide you with an advisor that can be in a position to guide you, advise you, and see you through the planning of your life to make sure you are financially prepared for all of the events ahead of you. This will be a relationship that will guide you through the financial ups and downs of the lives of you and your family. The goal is to make sure you are aware of the options that exist and the best ways available for you and your family to save for your financial futures.

Mitlin Financial assists our clients in addressing their college funding needs. We are here to help you instill these concepts within your own family. Feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone in your family needs assistance in getting started on their plan today.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Financial Welcomes Rosealba "Rose" Hosten to the Team

 Rosealba Hosten Mitlin Team Photo

Mitlin Financial, Inc. is pleased to announce that Rosealba "Rose" Hosten has joined us as the newest member of our team.
 
Rosealba comes to us with over fourteen years of experience as an Executive Assistant in the financial industry.  She will be overseeing many of the day to day operations of the office and will be available to answer your questions and assist you going forward.  We are committed to providing our clients with a high level of service and Rose is looking forward to continuing the experience.
 

Please join me in welcoming Rose to Mitlin Financial and feel free to contact her at (631) 952-4466 x12 or via email at This email address is being protected from spambots. You need JavaScript enabled to view it..  Rose looks forward to speaking with you and meeting you in the near future.

 

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

More Articles ...

@MitlinFinancial