Lenders are the latest to jump on the “green” bandwagon. Citigroup’s group mortgage division launched a program offering $1,000 off closing costs with its energy efficient mortgage. Last month, Bank of America launched the “energy credit mortgage”, offering $1,000 credit toward closing fees for mortgages on new homes that meet efficiency requirements set by the government’s energy star program. J.P Morgan Chase is offering the expanded energy conservation mortgage which gives borrowers credit as well as $500 off closing costs if they find a builder who will use a specific type of spray-foam insulation.

You maybe asking yourself, “How could lenders qualify people for larger loans, especially in this real estate market?”

Lenders are allowing borrowers to qualify for bigger loans because lenders permit the estimated savings on utility bills to be added to the borrower’s qualifying income. For example, energy efficient improvements could save the borrower $50 per month, that is $600 extra a year which converts to an additional $10,000 on a 30 year mortgage, depending on the interest rate.

Builders love these loans as they help to sell more homes, homeowners get a higher mortgage amount to borrow, and lenders make loans. Seem like a win-win-win.

Of course, the real issue to you the investor should be, “Is this something I can afford?” All of the incentives in the world to get a loan are great. However, if you can’t afford it, don’t do it, even if the lender or builder says you can!

Foreclosure woes, mortgage crisis, home equity loans drying up, new home sales dropping to the lowest since 2001. Every time I read the newspaper, there is another new headline telling me how bad the real estate market is.

Yes, real estate is down, and it could go down further. The foreclosure rate as I write this is 5.1% nationwide and a whopping 17% on sub prime adjustable rate loans.

What does this mean to the investor? If you have sat on the sidelines all of this time, might now be the time to buy? This was recently asked of me during a presentation. My answer: “I don’t know, it is an individual decision; I think it’s all about timing.”

Look at the stock market. When it crashed in 1987, anyone buying right after the crash would have made a fortune. Is this the same thing in real estate? How about when gold was under $300 an ounce?

I really don’t have a crystal ball to say, “Yes, buy real estate.” It could take years to get out of the real estate mess, but in the meantime, it is up to you to decide if this is the buying opportunity you have been waiting for.

New rules make HSAs an even better way to save for a rainy day. Tied to high deductible health insurance plans, the accounts accumulate pretax earnings toward medical expenses, and the money remains untaxed when it’s spent. Because balances can roll over year to year, HSAs are an increasingly attractive long-term investment tool for those who are healthy now but expect to pay more for medical care as they age.

The latest news makes these plans even more useful as investments. Restrictions that once limited contributions to the insurance deductible have been lifted. For 2008, individuals can put away $2900, and a family’s limit is $5,800. That exceeds minimum required deductibles for these insurance plans which are $1100 for individuals and $2200 for families.

You can also get a one-time transfer of funds to your HSA from your IRA or your employer’s flexible spending or health reimbursement accounts. And even if you drop your high deductible health plan, you can still maintain and spend your HSA funds indefinitely.

We all NEED an HSA.

Best of all, the HSA can be self-directed just like an IRA and used to invest in assets you know, understand and can control. To learn more about the new rules, visit www.theentrustgroup.com.

Real Estate. Yes, it is tough, but, if you do your homework and buy right, like previous cycles, what comes down does go back up.

Many people have emailed me to talk about real estate investing in today’s market. What would I do now? Would I consider buying? If so, what are the key factors that should be taken into consideration in this market?

Here are three items to consider that will help assess location, real estate in a local marketplace and strategy:

1. Research the local market where you are thinking about investing. What are you buying—land, commercial, or residential property? What are the vacancy rates in the area? Have taxes or insurance premiums, due to hurricanes for example, changed the potential for cash flow in the area?

2. Look at the health of the local and state economy. Sure, there maybe an increase in foreclosures, but if people are still moving there and the economy is strong, that area will rebound faster than others. There are still areas of the country where the prices of property are going up.

3. Financing options. With the demise of the sub prime mortgage market and even the financial problems with Countrywide, the nation’s largest lender of good loans, financing options are tight. However, if the seller is motivated enough and still has equity, the seller could finance some or all of the sale. Depending on what you could negotiate, you may be able to profit on the property.

Research helps to assess the location, health and state of the economy, future potential and financing options available. Of course, there are many other strategies one could use, but considering the market conditions, I myself would look at seller financing strategies.

Happy Investing!

As women professionals and business owners, every one of us should be working off of a business plan. To me, this is a workable, upgradeable document that explains in some detail your plans to develop a financially successful business. This is important for two reasons:

1. Preparing a business plan forces you to think through every aspect of your business. If you need outside money, your business plan will be one of the first things the lender or investor will want to see.

2. A business plan helps serve as your road map and assessment tool.

A good business plan contains an executive summary. This includes:

Introduction
• A detailed description of the business and its goals.
• Outlines ownership of the business and the legal structure.
• Lists the skills and experience you bring to the business.
• Highlights the advantages you and your business have over competitors.

Marketing
• Showcases the products and/or services your company offers.
• Identifies customer demand for your product/services.
• Explains how your product/services will be marketed.
• Pricing strategy.

Financial Management
• Your source of and the amount of your initial capital.
• Monthly operating budget for the first year.
• Expected return on investment and monthly cash flow for the first year.
• Projected income statements, balance sheets for a two year period.
• Personal balance sheet and your compensation.
• Outlines who will maintain accounting records and how they will be kept.

Operations
• Explains how the business will be managed on a day-to-day basis.
• Outlines hiring and other personnel procedures.
• Insurance, rent, and other business license issues.
• Account for equipment necessary to produce your goods or services.
• Account for production and delivery of your product/service.

Summary
• Your summary should contain your business goals and objectives as well as your commitment to the success of your business.

When using a business plan to borrow money, remember the lender or investor wants to know three things:
1. How much will you need.
2. For what purpose.
3. How will they be paid and how long will it take.

Remember, business plans need to be updated with market and business objectives. Use this valuable tool as your roadmap to success!

Click here to sign up to receive a free sample business plan.

Statistics from the Woman’s Institute for a secure retirement and the national center for woman’s retirement research shows that women need greater savings now! Here is what they found:

1. The average woman spends 15% of her career out of the work force caring for children and elderly parents.

2. For every year out of the work force, a woman has to work 5 years to recover for lost income, pension coverage and career promotion.

3. Women retirees receive about half the average pension benefits that men do.

4. 50% of working women are in relatively low paying jobs with no pensions.

5. One year past divorce, the average mid-life woman remains single and earns an average income of just $11,300.

6. Women change jobs more frequently than men.

7. At some point in their lives, 9 out of 10 women will be solely responsible for their finances.

8. Women are 3 times as likely to be widowed than men.

Keep these statistics in mind when you decide to invest for your own future. Start investing with your IRA today! Visit www.theentrustgroup.com and open that self-directed IRA!

How often do you change cars? Do you buy or lease a new car? What price should you pay? What about warranties? Do you never want to deal with car sales personnel? If this is you, then Cars.com takes car shopping to a new level.

Cars.com (www.cars.com) is a web site that offers vehicle listings alongside research tools and buying advice, giving shoppers access to information they need in order to make smart buying decisions.

Visitors are able to search Cars.com inventory of over two million new and used vehicles and get more details on the cars that interest them, including photos, Kelley blue book car values, calculate vehicle payments and read reviews and other automotive news from the site’s blog KickingTires.

In a 2006 women’s magazine survey, nearly half of the women respondents have imagined themselves ending up as a bag lady – homeless in their old age.

It is a real concern as women are not as financially well off as men; they outlive men and have not been smart about saving.

Become a Streetwise Investor.

First, concentrate on putting as much money away as possible. The younger you are when you start, the more you will have at retirement.

Second: Invest in what you know best. Utilize your IRA and invest in what you believe in. Many of us worry that if we invest in real estate, for example, it will go down in value or worse, crash. Same with the stock market or investing in a business. You have to feel comfortable. Most people are not aware they can utilize their IRA to invest in over 40 different types of assets. Visit The Entrust Group (www.theentrustgroup.com) to learn how this is done. Streetwise Investors educate themselves and know their options.

Third: Don’t put your all of your eggs in one basket. We should all diversify our portfolio to meet our needs. The needs of a 60 year old female close to retirement are different from the needs of a 30 year old new to a career. That’s the purpose of asset allocation. The streetwise investor studies the market.

Fourth: seek advice, but make your own decisions. Financial Planners, CPAs, stock brokers, realtors, can all give you advice based on the particular investments you are interested in. However, the final decision should be yours! Streetwise Investors use common sense and are involved in all aspects of their financial plan. They don’t allow others to totally control their assets.

Change your thinking and start taking control of your future today. If you don’t, no one else will.

The recent boom in community banks could mean better lending options for the small business owner or professional.

Looking to expand your company but don’t have the funds to do so? Consider working with a community bank. An increase in newly chartered community banks is providing entrepreneurs with an alternative to banking with the big guys.

In the past seven years, more than 1,000 of these new institutions known as de novo banks have opened their doors according to the FDIC (Federal Deposit Insurance Corporation).

The top states for new bank start ups include: Arizona, California, Florida, Georgia, North Carolina, South Carolina, Texas, and Washington.

Baby banks offer more flexibility and want your business. I have a relationship with a local baby bank in San Francisco who actually visits customers as part of their marketing strategy. They are interested in helping their customers achieve their financial goals. Plus, you are not just another number; community banks believe in personalized service.

With the recent rave of bank mergers (which, to me, is starting to look like phone company mergers, meaning only a few of the big ones will survive), baby banks really want the customer and concentrate on this as their focus.

So if you are looking for a loan or services to enhance your practice, look for the new bank in town.

Many of us have the dream of business ownership. It sounds great, you’re the boss! No more taking orders from others, you are in charge. But being a business owner is not for everyone. There are many reasons why business ownership may not be an appropriate fit; though with the right idea, persistence and strong will, having a business goes a long way to making your financial dreams come true.

Ask yourself these soul searching questions before you start a business:

1. Do I really want to be my own boss? You may think, “What a dumb question.” Being the boss means being the president, vice president, secretary, treasurer, finding a way to bring in business, making payroll and more! Are you up for this type of responsibility? It’s up to you – not someone else telling you- to develop projects, follow up and be responsible.

I have a sister, Monica, who is a gifted health care specialist. She makes a good living, but has to put up with a lot of politics at the organization where she works. Several times we explored the possibility of Monica utilizing her skill sets and becoming a consultant. When push came to shove, she wanted the stable pay check over having to go out and drum up business.

2. Do I enjoy a regimented schedule? Having your own business could mean working 60 hours or more a week just to keep up. If you have many other commitments that are important to you, really identify how much time you would realistically have to devote to a start up business. Owning a business is a lot of hard work. Can you face 12 hour days 6 or 7 days a week?

3. How well do I get along with others? Being a business owner is also about people. As business owners, we need to develop relationships with a variety of people including customers, vendors, staff, bankers, lawyers, accountants, etc. How well do you do dealing with multiple personalities?

4. Can I handle a lot of stress? Instant decisions are the norm in business ownership;
many times these decisions are made under pressure of deadlines. Organizational and planning skills are a must in order for the business to succeed.

I am not talking about a part time business that you can do on the side such as web design. I am talking about a full fledged business where this is your sole source of revenue and responsibility. I always have believed in multiple streams of income, so investing on a part time basis in something you feel passionate about is a great way to test the waters and gradually move into a full time venture.