What lenders are looking at
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, Your financial history
- Income
- Employment history
- Credit (FICO) score
- Other assets
PITI vs. Gross income
- PITI <28% of your monthly gross income
Social security
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- Formed in 1935
- 95% of Americans qualify.
- In 2019, earn 1 credit for each $1,360 in EARNIGS up to a maximum of 4
credits per year ($5,440/yr).
- With 40 credits, eligible for retirement, disability, and survivor benefits.
Check out the house
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- Visit the house with your real estate agent.
- Test the plumbing (run the shower etc.)
- Test the electricity system by flipping the lights on and off.
- Open and close the windows and doors to see if they work properly.
, - Are the other homes on the block well maintained?
- How much traffic does the street get.
- Is there enough street parking for your family and visitors?
Diversification is
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A type of risk management
- Systematic risk
- Unsystematic risk
Defined contribution plans: Tax-advantaged accounts
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, Traditional 401(k) or 403(b)
- Contributes often matched by employer.
- Employer provides investment options.
- Max annual contribution = $19,500
Roth 401(k) or 403(b)
- Employer provides investment options.
- Max annual contribution = $19,500
Traditional IRA
- Individual retirement account
- Max annual contribution = $6,000
Roth IRA
- Individual retirement account
- Max annual contribution = $6,000
Taxable investment accounts (taxable accounts)
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No tax advantages.
Many cost effective options
Low minimum investment
- $100 a month on auto draft.
- or $1,000 up front
Custodian
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Give this one a try later!
, Your financial history
- Income
- Employment history
- Credit (FICO) score
- Other assets
PITI vs. Gross income
- PITI <28% of your monthly gross income
Social security
Give this one a try later!
- Formed in 1935
- 95% of Americans qualify.
- In 2019, earn 1 credit for each $1,360 in EARNIGS up to a maximum of 4
credits per year ($5,440/yr).
- With 40 credits, eligible for retirement, disability, and survivor benefits.
Check out the house
Give this one a try later!
- Visit the house with your real estate agent.
- Test the plumbing (run the shower etc.)
- Test the electricity system by flipping the lights on and off.
- Open and close the windows and doors to see if they work properly.
, - Are the other homes on the block well maintained?
- How much traffic does the street get.
- Is there enough street parking for your family and visitors?
Diversification is
Give this one a try later!
A type of risk management
- Systematic risk
- Unsystematic risk
Defined contribution plans: Tax-advantaged accounts
Give this one a try later!
, Traditional 401(k) or 403(b)
- Contributes often matched by employer.
- Employer provides investment options.
- Max annual contribution = $19,500
Roth 401(k) or 403(b)
- Employer provides investment options.
- Max annual contribution = $19,500
Traditional IRA
- Individual retirement account
- Max annual contribution = $6,000
Roth IRA
- Individual retirement account
- Max annual contribution = $6,000
Taxable investment accounts (taxable accounts)
Give this one a try later!
No tax advantages.
Many cost effective options
Low minimum investment
- $100 a month on auto draft.
- or $1,000 up front
Custodian
Give this one a try later!
