Don’t Think You Need an Estate Plan? Think Again!

You’ve been accumulating assets and saving since entering the workforce. The question is, do you have a plan in place for these assets after your death? If you’re like most people, you don’t think you need an estate strategy. Do any of these reasons sound familiar?

I don’t have enough assets to worry about estate taxes. Forget taxes for a minute. There are a number of non-tax reasons for estate analysis. If you have not done any analysis of your estate, state law determines where your assets will pass when you die. There is no guarantee the legal system will make the same decisions you would have made. Putting your directions in your estate plan is the only way to ensure that your wishes are followed. Let’s assume assets would be distributed just as you would like. There are still several reasons to prepare ahead. First, in your will you can determine who will handle your estate when you die – called the personal representative. A will also allows parents to nominate who will take care of their minor children. Although the court makes the final appointment, naming a guardian ensures your wishes are known, and in most cases, followed.

By: Alan@4cornersbusinesscouncil.com Northwestern Mutual Financial Network

Make the most of your home.

Most of us would want a room to relax or play in,but there is no space left. What about tidying the garage and creating another room. Whether it's converting the whole garage or half of it you will find fresh space to have your home theater, game room, office or man-cave. Imagine a room dedicated to your favorite sports team with themed pool table, stools,banners , la z boy chairs and home theater.
You can start a basic room with a painted floor, pool table, air hockey and fooseball for about $1700. More common now is to carpet the floor with a durable stain resistant product, two-tone paint the walls add an 8ft slate pooltable, large flat screen T.V. and add the game consuls from the lounge or kids room leaving more space in the family room and no arguements over who can use main T.V. in the house. There are many things you can do with new space, consider walling in the water heater and air conditioning unit and making a proper home office.There are efficient airconditioning units which can be used to keep the garage cool.other items to consider include insulation for the garagedoor and fans.Always bear in mind the garage door must remain functional toremain in code and some home associations do not allow conversion of garages. You may of course convert an interior room.A small bedroom can make an excellent home theater with new technology projectors and screens. There are certain pitfalls you may need to be aware of.You must use the correct
epoxy paint and carry out the neccessary preparation, otherwise if you put your car in the garage with hot tires they may lift the paint from the concrete. Also always be aware a pool table takes a lot of space, you need to allow at least 4ft all the way around. Flat screen T.V.'s need an inlet check if there is access from the main point in the house particularly in a two storey home where you cannot use the loft space. Enjoy the space you create, remember you may get your family room back for you as well as adding extra value to your home.
Prepared by paul@4cornersbusinesscouncil.com

The Art of Planning your Vacation Home Interior.

Whether you have just purchased the Florida Vacation Home of your Dreams or you’re an investor, interested only in the bottom line, the decisions you make in furnishing your vacation home will impact the quality and value of you investment, either positively or negatively over time. The biggest mistake you can make is to underestimate the value & importance of the interior of your new home. The vacation home rental market has become very competitive. It is important to do a well coordinated, quality, eye catching interior. The internet is becoming a key component in marketing, and it is all about visual appeal. You may have the most attractive home in your area with the best location, but it is what is on the other side of the front door that will keep your villa rented both now & in the future.
Lets look at the important areas to consider to be successful in, furnishing your home.
First, and most important, select the best company for the job. Listen to your Realtor, as well as other people you know or meet who have purchased a vacation home. Companies build reputations over time, both good and bad. Select one that has a track record, for quality products, on time and complete deliveries and good service after the sale.
Second, sort out your property management before you select your furnishings. Almost all management company’s have their own ideas about what is important in a vacation home, from bed sizes, to the type and number of TVs. You will rely on them for rentals, hence they will be more successful if your villa meets their preferred requirements. They will know the current market & requests from guests when making bookings. It is a shame to lose a booking, because you did not know that your clients like King (6 ft 6”) beds in the master bedroom.
Third, allow for the time necessary to do the job right. Don’t choose the furniture company based on who can do it the fastest. Plan ahead, and even when you think you can’t, allow 45 to 60 days, after you have finalized your selections, for your custom order to be made ready for delivery. Even if your home is closed, and you feel rushed to get it furnished and rented, allow your furniture supplier the necessary time to prepare. It will be worth the wait. Of course, if you’re building your home, with proper planning it can be furnished complete within a day or two of closing. Don’t wait till the last minute to get started, plan your furnishings ahead of time!

Last but not least, it’s time to decide on your furnishings. Budget to furnish in a quality fashion. All too often we have clients spend $400k on their new 4 bed home and hope to furnish it for $12,000. For the sake of a few thousand dollars, you impair the opportunity for your investment to work. That 4 bed home with the appropriate furnishings is $19,000-$23,000. Of course, you could spend more, but that is by choice, not necessity. Next if you really want it to stand-out. You add custom window treatments and possibly spend a few more dollars on current electronics, possibly a Plasma or LCD HD TV for the Family Room. If your home has an appropriate area, add a pool table, foosball or Air Hockey Table. Every additional bit you do is one more thing that makes your home stand out. pat@4cornersbusinesscouncil.com

Giant insurer suspended from writing auto policies in Florida!

TALLAHASSEE, Fla. (AP) -- Florida Insurance Commissioner Kevin McCarty on Wednesday suspended Allstate companies from writing new automobile insurance policies in Florida for refusing to comply fully with a subpoena from the state. McCarty abruptly ended a scheduled two-day meeting after just two hours on Tuesday, angered that Allstate officials failed to turn over information the state requested on hurricane and other property coverage rates - describing the state's request as "irrelevant."
"Florida will no longer be held hostage by this company and its practices," McCarty said.
Allstate's car insurance business is worth about $1.9 billion annually, regulators said. "We're going to hit 'em where it hurts," McCarty said. "We're going to get their attention." Allstate is Florida's second-largest auto insurer with 13 percent of the market in 2006. State Farm is the state's largest with a 19 percent.
Regulators sought property insurance documents relating to Allstate's reinsurance program and its relationship with risk modeling companies, insurance trade associations and insurance rating organizations, but instead received a 51-page letter of objections.
"In view of Allstate's ongoing, blatant disregard of our subpoenas, I have little choice," McCarty said. "Suspending their certificate of authority to write new business in our state should make my point." He said the suspension would be lifted when Allstate fully complies with the state's subpoena. Allstate has reduced its risk on homeowners coverage in recent years while maintaining an aggressive posture in the highly profitable auto insurance market.
McCarty said existing policyholders will not be affected. Allstate must continue to service its clients and must make all required statutory filings including, annual and quarterly financial statements and rate filings. "We have not yet received an order and are evaluating our options," Allstate spokesman Adam Shores said Wednesday. "At this time, it is not clear how this action will affect Allstate or the more than 1,100 Allstate agents in Florida."
The suspension applies to Allstate Insurance Co., Allstate Indemnity Co. and Allstate Property and Casualty Co. "I think the message to the industry nationwide and in the state is not good," said Bob Lotane, spokesman for the Florida Association of Insurance and Financial Advisors, an industry trade association. "The industry has to keep its promises to its policyholders in the wake of catastrophes." The Legislature passed a measure (HB 1A) in special session a year ago to provide some relief to the industry with an eye toward lowering premiums.
The legislation increased the state's Hurricane Catastrophe Fund to provide private insurers with low-cost reinsurance so they could pass along those savings to customers, but Allstate instead sought double-digit increases and regulators wanted answers.
"We cannot tolerate a company determining the scope and depth of an investigation in an area as significant as potential collusion to violate house bill 1-A," McCarty said. "The no kidding rule is in effect."
By BRENT KALLESTAD Associated Press Writer
kevin@4cornersbusinesscouncil.com

US bank financing comes to Panama

US Banks have begun to operate in the Panamanian real estate market. This is partly due to the current market in the US and US banks recognizing the security and stability of lending in Panama. There are currently several US banks offering mortgages for foreigners purchasing and refinancing in Panama, Costa Rica and Dominican Republic. Loans are available to investors, second home buyers and owner occupants up to 80% of the purchase price.
Financing with a US BankIt is important to educate the local market about US mortgage brokers. Developers and real estate agents in Panama are used to dealing directly with a local bank. Many US banks will only offer their mortgage products on a "wholesale" basis to approved brokers to offer on the "retail" level to the client. These mortgage brokers have been thoroughly screened, and approved by the individual bank and given permission to market the bank’s products. US mortgage brokers are authorized representatives of the banks and are licensed and regulated by the strict lending laws in the US. Mortgage brokers have the ability to offer the mortgage products of several different banks, saving the client from having to visit each bank individually. It also helps if a potential buyer is pre-qualified before shopping for a property. Being pre-qualified can save both the client and the developer/agent time and potential pitfalls later. The process is free and can be done within minutes over the phone or in person. There are several reputable mortgage brokers now operating in Panama who are providing this valuable service. Mortgage brokers offer different loan products and rates so it is a good idea to shop around.
US banks do not require life insurance and do not have any age restrictions. Payments are amortized over 30 years with various fixed periods available. Mortgages do not have any "Fesi" tax on top of the interest rates. Once the fixed periods are up, the rate can adjust 2% per year, 6% maximum over the life of the loan. Rates for foreigners with US banks are usually about 1% higher than rates in Panama. Payments, however, are comparable due to no life insurance requirements with US banks. US banks do not require that buyers have a bank account in Panama. Pre-payments penalties on a US mortgage are for the first 3 years only, set at 3% of the original balance the first year, 2% the second year and just 1% the 3rd year. Borrowers are allowed to pay off extra principle up to 20% per year without penalties during the 3 year penalty period. American banks will only lend on titled property and all loans require title insurance. Loans are not currently available for raw land.
Clients should also check with their country of origin as certain tax benefits may apply by having a US based mortgage.
Full approvals can typically be obtained with US banks within 72 hours. The average time from contract to closing is between 4-6 weeks. All closings are held in Panama and all properties will require building insurance. Buyers do not need to be in Panama to close, and applications can be done on line.
Documents required for approval include:
• Copy of passport and 2nd form of ID• 1 month most recent pay stubs, and last 2 years W-2 forms if salaried.• 2 year complete tax returns business and personal if self employed• Pension letter and SSI awards letter for retirees• 3 months bank statements business and personal• 3 months statements for any investment accounts• Appraisal (must be done by an approved appraiser)• Copy of sales contract• US credit report with a 660 minimum middle score (lender to provide)
The overall benefit of foreign banks entering the Panama real estate market is the availability of increased options to potential buyers. Buyers will have the ability to compare several different products from local and foreign banks to determine what product is most suited to their needs. Increased finance options to foreigners help drive more sales as well as bring a mortgage model that foreigners are used to.
For more information contactSean@4cornersbusinesscouncil.com wwww.4cornersbusinesscouncil.com

Pip Pip Hooray!

January 1, 2008 marks the first day of the reenactment of PIP in Florida.
Personal Injury Protection (PIP) provides up to $10,000 in your auto policy to cover medical and other expenses resulting from an automobile accident for people specified in the policy, regardless of who is at fault for the accident. In response to fraudulent claims received by insurance companies regarding medical claims, PIP was originally set for sunset in October 2007 but Governor Charlie Crist reenacted the coverage effective 1/1/2008 requiring all drivers to carry minimum $10,000 in bodily injury limits and PIP. Policy holders without PIP after January 1 2008 may be subject to the suspension of their licenses and registration. Policy holders should receive a mandatory PIP reminder in the mail, but if not, contact Kevin Delaney at 352-242-0299 or kevin@4cornersbusinesscouncil.com to make sure that you have this valuable coverage.

Refinance now!

The decision to Refinance, or to not refinance? Are you one of the unfortunate people who took out a mortgage that is now adjusting with payments out of your reach? If so the decision to refinance should be immediately considered. Even with the current turmoil in the sub prime market, there are still feasible options for help. The main factor usually affecting buyers in this scenario is the value of their home. If the home has lost value temporarily since your purchase, or if you put a minimal amount of money down on the home this would be the first factor to consider. For homeowners looking to reduce rates, release equity for home repairs etc, the first of the year might be the best time as far as mortgage options. We expect many banks and lenders who suspended mortgage operations in the current market to be back in the market into the first of the year. We do expect aggressive offers to homeowners who have high credit scores and equity in their homes.Sean DepasqualeFlorida Mortgage Partners, Inc sean@4cornersbusinesscouncil.com