Sometimes I feel brainwashed by society.  From birth I have been conditioned to go to kindergarten, elementary school, high school, college, graduate, get a job, get married, buy a house, have kid(s), invest in my 401k, plan for retirement, save for an emergency, go on vacation once per year, buy life insurance, buy medical insurance, follow the laws, pay taxes, exercise, eat right, clean my teeth every six months, get periodic medical checkups, practice safe sex, retire at 65, move to Florida, enjoy retirement, then die a comfortable death.  Many times I feel I’m playing this “playbook” right down the middle with no deviation!

The media teaches us how we should live our lives.  The media loves to highlight people who struggle by not following the rules.  Growing up, whenever, I saw these people; I paid attention and told myself I must follow the rules to stay out of trouble.  The problem with following the “rules” set by society is that I’ve grown to feel I have completely assimilated into society.  I’ve become a cog in the wheel.  I’ve become a Borg!

Remember the Borg on the TV shows, “The Next Generation” and “Star Trek: Voyager”? These shows were spin-offs of the Star Trek franchise.  The Borg is a fictional pseudo-race of cybernetic organisms that would go across the universe and get people to assimilate into their society.  Their tag line was “Resistance is Futile”, so you had better assimilate.  I have become a Borg because I have never resisted and I have completely assimilated into American society.  

Sometimes I feel like I want to make a detour, go a different route and no longer assimilate.  Sell everything, cash out, downgrade my lifestyle, live on the beach with my family, teach people how to scuba dive and that’s it.   But now I have a wife, a child and bills.  I have been conditioned by society that I must pay my mortgage on time, save for my child’s education, buy medical insurance, etc.  I better play it safe and not deviate because I could lose all these things that I must have to survive in this society.

At times I remind myself I shouldn’t complain.  I should be very happy and grateful for what I have. Society has created a very good lifestyle for me.  By following the rules, I live a fairly comfortable life.  I have access to good roads, highways, bridges, electricity, indoor plumbing, temperature controlled home, a good job, all the food I can eat, education, the best medical care the world (although expensive), police, fire station, 911, ambulance, cable TV, Internet, cell phones, gyms, vacations, clothes, relative safety, savings, money in a 401K, etc.  In all my life I’ve never gone to bed hungry or without shelter. I remind myself that many people in other countries don’t have access to these luxuries.  As an American I can easily travel to almost anywhere on the planet.  Many citizens of other countries can’t do that.

Nevertheless, sometimes I feel brainwashed by society.  Stepping out of the box to take a risk and live the true life I desire is risky because society has brainwashed me in believing I need to play by the rules to keep and maintain what I have. Oh well, I guess I’m a Borg!

A reverse mortgage is a type of home loan that lets you convert a portion of the equity in your home into cash. The equity that has built up over the years in your home can be paid to you. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. You are still required to pay your real estate taxes, insurance and other conventional payments like utilities.

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home. The older you are, the more valuable your home is, the lower the interest, the more you can borrow. You can use an online calculator on the AARP website to get an idea of what you may be able to borrow.

You can be paid from a reverse mortgage in 4 ways: 1 – get cash all at once; 2 – a monthly cash advance 3 – a creditline which lets you decide when and how much of your available cash is paid to you; 4 – a combination of these payment methods.

To qualify for a reverse mortgage in the United States, you must be at least 62 years of age.  There are or credit or minimum income requirements, however, there are other requirements that homeowners must make sure they qualify for before they invest significant time or money into the process. You must also reside in the home. Some types of dwellings do not qualify such as mobile homes, however, condominiums and manufactured homes that meet FHA requirements may be eligible.

With most reverse mortgages the money can be used for anything, however, the borrower must pay off any existing mortgage(s) with the proceeds from the reverse mortgage and, if needed, additional personal funds.

Before proceeding with a reverse mortgage, applicants have to seek third party financial counseling from a source approved by the Department of Housing and Urban Development (HUD). The counseling ensures the borrower completely understands what a reverse mortgage is and how it’s obtained.
 
You can contact the Housing Counseling Clearinghouse on (800) 569-4287 for the name and telephone number of a HUD-approved counseling agency and a list of FHA-approved lenders within your area.

For more information visit hud.gov.

Video:  Reverse Mortgage

Below is a very good 5 minute video of Dave Remsey’s recommendations on how to get your finances on track. Dave Ramsey is national radio personality and best-selling author of  “The Total Money Makeover” and “The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial Health”. 

Dave Ramsey is a personal money management expert who knows first-hand what financial peace means having lived a true rags-to-riches, riches-to-rags and back to rags-to-riches lifestyle.

By age 26 Dave Remsey established a nearly $1 million net worth making $250,000 a year only to lose it by age 30. He however rebuilt his financial life and now helps people with their finances.

Video: Dave Ramsey on How to be Financially Successful

Today General Motors and Segway unveiled an electric two-seat prototype vehicle with just two wheels, intended to navigate urban traffic.  The companies claim the vehicle could be used on college campuses and in gated communities as well as on city streets.

The GM-Segway prototype is called the PUMA, for “Personal Urban Mobility and Accessibility.” It can automatically balance itself fore and aft and can travel at up to 35 mph for up to 35 miles between recharges.

The question is; will the PUMA sell when introduced to the market?  The Segway has been on the market for years and hasn’t lived up to expectations.  Additionally, should GM be investing in a product that may not sell, especially in the United States?  The infrastructure isn’t here for these small death traps to drive in urban traffic.  The PUMA may do well in other countries that already use small vehicles (bicycles, motor-cycles, etc) in urban areas, such as in China and India.

Only time shall tell, it’s a prototype.  But I would not feel comfortable driving the PUMA in Manhattan, NYC going 35 miles per hour.  When I see such small vehicles on the road, I consider them coffins.  This is why I’ll never ride a motorcycle! 

What do you think?  Leave your comments below!

See more photo gallery of the PUMA at Newsday.com.

Video: The PUMA in Action

Mortgage rates and home prices have fallen to all time lows.  This maybe the perfect time to purchase or refinance your home.  The pot is even sweeter for first time buyers per the stimulus package which offers first-time homebuyer an $8,000 tax credit for primary residences purchased between January 1, 2009 and November 30, 2009.

Last month I posted an article titled, “Is it Time to Refinance Your Mortgage?”  It included a list of different reasons for refinancing your mortgage which included:

• Switching to a fixed rate or an adjustable rate mortgage
• Improving the features of your ARM
• Building your home equity faster
• Reducing your monthly payments
• Turning home equity into cash

However, when looking to purchase a home or refinancing your mortgage there are many questions to answer, which involves crunching some numbers and your comfort level.  

Below is a list of questions linked to mortgage calculators to help answer your home financing questions?  I hope you find the calculators very useful!

Preparing for Home Ownership

• Am I better off renting?
• Am I better off refinancing?
• What home can I afford?
• How much should I put down for a new home?

Understanding Finances

• How advantageous are extra payments?
• How much can I borrow?
• How much can I save in taxes?
• How much will my mortgage payments be?
• Should I pay points to lower the rate?
• Which is better: 15 or 30 year term?
• Which is better: fixed or adjustable?
• Which loan is better?

Considering Home Equity Financing

• How much will my loan payments be?
• Should I consolidate my debts?
• Buying a vehicle – auto or home equity loan?
• How large a line of credit can I obtain?
• What will it take to pay off my line of credit?

Reference:

• View Mortgage Rate by State

Related Articles:

• Is it Time to Refinance Your Mortgage?
• Having Trouble Paying Your Mortgage?
• What is a Subprime Mortgage?
• What’s In the 2009 Stimulus Package for You?

If you are in the market to purchase a new car, now is a great time.  The Internal Revenue Service recently announced that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

IRS also alerted taxpayers that the vehicle must be purchased after February 16, 2009, and before January 1, 2010, to qualify for the deduction.

The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.

If you are one of the 12.5 million people out of work due to layoff, remember you are entitled to a very generous federal subsidy for your COBRA health insurance premiums per the recent economic stimulus bill signed into law by President Barack Obama.

If you were laid off from September 1, 2008 through December 31, 2009, the federal government will pay 65% of your COBRA premiums for nine months.  That’s not a bad deal!  

If you were laid off since September, 1, 2008 and declined COBRA coverage, you still can enroll in COBRA and your employer is required to inform you of this right. 

Additionally, laid-off employees who are currently receiving COBRA have to be informed by their former employer about the new subsidy and their premium contributions will have to be adjusted, as of March 1, 2009.

Individuals and couples with an annual adjusted gross income over $125,000 and $250,000 respectively, are not eligible for the subsidy.

It’s estimated by the Joint Committee on Taxation that the COBRA subsidy will help 7 million individual and their families costing the federal government about $25 billion.

If you want to reduce your Cobra Premiums you can get a quote Cobra-Info.com.