Don’t panic, just do some research.
That’s the message Arvada financial advisors, real estate agents and credit unions are sending to residents looking for support during a sometimes confusing economic downturn.
Doom and gloom reports on the housing market, business and personal finances can make finding reliable advice tough. But the news isn’t all bad for residents who aren’t afraid to talk to local experts and get a second opinion on finances, business plans and housing. But don’t wait for your assets to slip before asking questions, experts said.
Get reliable housing advice
Worried about missing mortgage payments but aren’t sure where to go for confidential advice? The Colorado Foreclosure Hotline and Web site is one way to talk with professionals, lawmakers and real estate representatives said.
“If you own your own home and are starting down the path to losing it, the hotline is a huge benefit,” said Arvada RE/MAX real estate agent Bob Bell.
The hotline, 1-877-601-HOPE, and Web site, www.coloradoforeclosurehotline.org, were established by government, private-sector and non-profit organizations to help homeowners decide their options and find tailor-made solutions for their situation. Anyone can call for free advice, but don’t wait until you’re already behind, Bell said.
“The minute you get behind or think you might get behind, this is an excellent resource,” he said.
For those looking for a house, Bell said potential homebuyers should take their time when finding a real estate agent.
“Interview them all. You have to talk with two or three to find out if they know what they’re doing,” he said.
The Colorado Division of Real Estate recommends asking friends and neighbors for their feedback on brokers as a jumping off point, according to their Web site.
To check out broker records, homebuyers can access the Colorado Division of Real Estate’s listings of broker licenses and disciplinary records, as well as Internet ripoffs that may mislead buyers.
Take a peek at your portfolio
Arvada financial advisor Andy Goldberg of Edward Jones said many of his clients come to him with worries about how the economy will affect their investments.
“There’s a lot of fear, but I am optimistic with good reason,” Goldberg said.
Since the Great Depression, there have been 31 market drops of 20 percent or more — a bear market — followed by a period of economic recovery. Every time the market dips, it recovers, he said.
To weather the current dip, Goldberg tells his clients not to panic.
“Panic is not a financial strategy — selling everything out, going to cash and making radical decisions. If you put all your money under your mattress it’s no longer insured,” he said.
Instead, investors should think about long-term investment plans such as college savings or retirement. Then, make sure their portfolio reflects the goal by choosing quality investments and diversifying the portfolio based on long-term goals.
Look for investments with solid track records and ask a professional for advice about diversification. In fact, get a second opinion, he said.
“Now is a fantastic time to have someone review your portfolio or get a second opinion. People know that the market goes up and down. They just want to know someone is watching,” Goldberg said.
Pass down financial knowledge
The Credit Union Association of Colorado advocates for all Colorado residents to brush up on financial knowledge and teach teens and young adults about how to responsibly manage money and credit. To help parents, the Association has partnered with FoolProof, a series of online video and game modules about college savings, investing, and responsibly managing credit cards. FoolProof also includes links to updated information about debt, online scams and consumer reports.
John Dill, CEO of the Credit Union Association said credit unions should step up and provide reliable guidance to anyone curious about financial issues, not just credit union members.
“Financial literacy has never been more important than it is today,” he said.
The Web site, www.foolproofme.com, started as a high school learning module and recently rolled out new features for adults and college-age students. The upgrades come at the same time as a recent decision by Gov. Bill Ritter to adopt financial literacy standards in schools. The FoolProof program was originally initiated four years ago by creator Will deHoo.
“What people need is real consumer information they can trust,” deHoo said. “We want them to slow down, make the right decisions so they’re not making expensive decisions.”
Congressman Ed Perlmutter said the program would be valuable for the people of Jefferson County, including his three college-aged daughters. The FoolProof program is available through most Jefferson County credit unions.
“It’s unbiased info that will help people make financial decisions, and it’s all available for free,” he said.