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Tim Lugara

Tim Lugara
423 North Main Street  Doylestown  PA 18901
Phone:  215-348-7100 1632
Office:  215-348-7100
Toll Free:  800-360-7100
Cell:  215-917-8673
Fax:  267-354-6961

Tim's Blog

Nutrition Myths That Sabotage Your Diet

May 9, 2016 12:49 am

If dropping a few pounds is on your agenda, don’t look to the trendiest new diet. Nutritionists assure the best way to lose weight is to follow tried-and-true nutrition guidelines—but some of the guidelines we’ve taken as gospel may be doing us more harm than good.

Dietary and fitness experts cite five nutrition myths that may be doing us more harm than good:

1. It’s healthier to eat egg whites than whole eggs.
The yolk contains 40 percent of the egg’s protein and the lion’s share of iron and B vitamins. It also contains all of the egg's fat-soluble vitamins (A, D, E, and K), and that extra fat helps keep you full and satisfied for longer than you would be with just the whites. Bonus: the most recent research shows the cholesterol in eggs has a much smaller effect on total cholesterol and harmful LDL than we thought.

2. Fat-free or low-fat foods are best.
When a product is artificially made low-fat or fat-free, it won't be as satisfying due to the absence of fat, which keeps you full longer. This can lead to overeating because you never feel satisfied. Artificially fat-free/low-fat items often have sugar and other fillers added, as well. Go for the natural full-fat version of yogurt or peanut butter, for example, to satisfy your hunger and skip the additives and sugar.

3. Multigrain or wheat bread is a healthier choice.
It is, but only if 100-percent wheat or 100-percent whole grain on the label. Unless 100 percent is noted, it may be just white bread with a tiny grain of something added—or with caramel color added to make the bread look darker.

4. White potatoes are a poor choice.
White potatoes get a bad rap compared to their orange cousins, but they're packed with fiber, which helps keep you regular and aids in feeling full. They also have more potassium than sweet potatoes!  A USDA study recently found that the levels of phytochemicals in them rival the amounts found in broccoli, spinach, and brussels sprouts.

5. Diet soda aids in weight loss.
Several studies have linked artificial sweeteners to weight gain. Why? The research suggests artificial sweeteners actually increase appetite and contribute to sweet cravings. The more you know!

Published with permission from RISMedia.


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Don't Get Duped: Scammers Peddling Good Credit Scores

May 9, 2016 12:49 am

Was your credit negatively impacted by the downturn? Don't be lured by the promise of a raised credit score, Freddie Mac warns. Schemes that falsely raise credit scores will land borrowers in scalding hot water—as well as cost time and money combating both origination- and servicing-related fraud.

Consumers should watch for any person or credit repair service trying to "help" with one of these three common fraud schemes:

1. Disputing Credit with Credit Bureaus

2. Falsely Claiming Identity Theft

3. Misusing Credit Privacy Numbers (CPNs)

Your Credit Privacy Number (CPN) is a nine-digit number that can be used in lieu of a Social Security number (SSN) for credit reporting and other financial purposes, like applying for a loan. Given that it helps shield your finances from the public eye, it's most commonly used by borrowers in the public eye, such as celebrities and politicians.

But some consumers with poor credit acquire a CPN with the intent of creating a new, clean—and misleading—credit profile. It’s important to keep in mind:

• This is an illegal use of a CPN;
• CPNs were not created for this purpose; and
• Mortgage loans originated using a CPN are ineligible for sale to Freddie Mac.

Borrowers who use a CPN with the hope of leaving their bad credit histories in the rear view mirror are in for a rude awakening. As the Federal Trade Commission (FTC) points out, "By using a stolen number as your own, the con artists will have involved you in identity theft," for which you may face legal trouble.

Remember:

• Credit scores aren't used unfairly to block you from accessing credit;
• Credit scores ensure successful repayment of borrowed money.

Ploys to circumvent official credit controls will likely set up consumers to fail. The best way of raising and maintaining a healthy credit score is by consistently paying bills on time. A quick jump in credit score is never worth the stain on your record.

Published with permission from RISMedia.


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6 Ways to Finance a Renovation

May 9, 2016 12:49 am

(BPT)—If you're planning to take on a home improvement project, you're in good company. A recent report by the Joint Center of Housing Studies at Harvard University predicts that the home improvement industry is expected to post record-level spending this year. As you prepare for your renovation, it’s important to review your financing options based on the size of the project, your intended repayment plan and whether you plan to use a contractor or do it yourself. Some financing options to consider:

Home Equity Line of Credit (HELOC) - A HELOC can provide ongoing access to funds using the equity in your home, which typically results in lower interest rates than unsecured credit. This type of credit may also provide you potential tax benefits. Consult your tax advisor regarding the deductibility of interest.

Mortgages with Built-In Renovation Financing - These loans help homeowners complete renovations with a loan amount that is based on an appraiser's estimate of what the property value will be with completed improvements. This is also an option for aspiring homeowners who purchase properties that need repair. Whether a home purchase or a refinance, this option finances the renovations and mortgage in one loan.

Cash-Out Refinance Mortgages - A cash-out refinance replaces your current mortgage with a new and larger mortgage that pays off your current balance and allows you to use the equity in your home to provide additional funds for other purposes.

Credit Card - Credit cards can be used for large or small purchases and may earn rewards, which can add up to significant benefits when you're making big home improvement purchases. However, credit cards often have higher interest rates than other loan or credit options, which should be taken into consideration.

Personal Loans and Lines of Credit - These personal credit options typically offer quick credit decisions and access to funds in a day. Lines of credit provide ongoing access to funds.

Savings - If you have a do-it-yourself project or a small renovation, accessing your savings might be an option. By paying cash, there is faster access to funds and nothing to repay.

Your bank may not be the best source for what color to paint your room or which walls to move, but it can help you identify your financial options. Each option has its associated benefits and considerations, and your bank can provide valuable information to help you make informed decisions about which options are right for you.

Published with permission from RISMedia.


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Retiring Homeowners FAQ: What the Heck Is a HECM?

May 6, 2016 12:49 am

The number of retiring homeowners is projected to expand exponentially in the coming years. Maximizing your real estate investment can help underwrite retirement expenses. For your consideration: the Home Equity Conversion Mortgage (HECM).

HECM is the Federal Housing Administration's (FHA) reverse mortgage program, which enables homeowners to withdraw some equity in their home in a fixed monthly amount, a line of credit, or a combination of both. 

To be eligible for a FHA HECM, you must:

• Be a homeowner 62 or older;
• You must live in the home;
• Own your home outright, or;
• Owe a low mortgage balance that can be paid off with proceeds from the HECM, and;
• Have financial resources to pay ongoing property charges like taxes and insurance.

You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan.

A longevity annuity can also be a useful tool. Retirees aged 65 could draw $3,000 a month to age 100 with assets of $600,000, at which point their assets would be fully depleted. Retirees could use $200,000 of their nest egg to purchase a longevity annuity that begins payments of $3,000 after 10 years. These same retirees could draw on a reverse mortgage credit line to bolster their retirement income, as long as they had sufficient equity in their home.

Retirees with equity in their home who depend on pensions (rather than a nest egg of financial assets) can supplement their pension income using a HECM reverse mortgage in either of two ways. One way is to exercise the “tenure” option under the HECM program, and receive a fixed annuity payment for as long as the retiree remains in the house. The second way is to exercise the credit line option, using some or all of it to purchase an immediate annuity from a life insurance company.

You can find a HECM counselor online at HUD.gov, or by phoning 800-569-4287.

Published with permission from RISMedia.


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8 Ways to Boost Your Home's Value

May 6, 2016 12:49 am

Improving the look and functionality of your home goes a long way toward boosting its value. But what types of renovation are today’s buyers looking for?

Consumer Reports reveals the most sought-after amenities:

Allowance for Aging in Place – As people are living longer and the number of senior citizens continues to increase, buyers see the long-term value of walk-in showers, comfort-height toilets and master bedrooms on the main floor.

Color and Light Matter – Fresh paint, natural color schemes and window treatments that let in the light will improve the look, as well as the value, of your home.

Energy Efficiency – Buyers are interested in energy costs and efficiency. ENERGY STAR appliances, high-efficiency windows and LED lighting help to lower the cost and increase your home’s ‘green’ appeal.

The Great Outdoors – Up your home’s curb appeal by keeping lawns and shrubbery neatly trimmed. Also high on buyers’ wish lists are a water-smart yard, a deck or patio and a built-in grill.

Kitchens Top the List – Buyers want a clean, updated and well-organized kitchen. A new coat of paint or modernized lighting can be inexpensive starts. Increasing the value exponentially are quartz counters, attractive cabinetry and stainless steel appliances.

Smart Technology – Some high-tech features may lose value as technology continues to evolve, but security systems, whole house generators and programmable thermostats controlled by smartphones will add value for their efficiency and convenience.

Updated Systems and Surfaces – Central air conditioning and updated mechanical systems, including water heaters and gas heat, can increase a home’s value by 3 to 5 percent. A newer roof and hardwood flooring are also much in demand.

Workable Floor Plans – Regardless of the size of your home, strategically increasing the living space is sure to boost its value. A more open floor plan, a finished basement or a dedicated playroom or office space appeals to the needs of young families.

Published with permission from RISMedia.


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The 4 Things Grads Should Know About Student Loans

May 6, 2016 12:49 am

If the results of a recent National Foundation for Credit Counseling® (NFCC®) poll are any indication, many college graduates are faced with stress over student loan debt repayment.

“The best way to feel more confident about keeping your student debt under control is to have a specific plan,” says Bruce McClary of the NFCC. “Part of the planning process involves learning about the debt and the options for making it work within a budget.”

To gain control over your financial future and stay on track repaying educational loans, the NFCC recommends the following tips.

1. Track Grace Periods – Different loans have different grace periods. A grace period is how long you can wait after leaving school before you have to make your first payment. It is six months for federal Stafford loans, but nine months for federal Perkins loans. For federal PLUS loans, it depends on when they were issued. The grace periods for private student loans vary, so consult your paperwork or contact your lender to find out. Don’t miss your first payment!

2. Understand Your Loans – Use whatever time you have during your grace period to get to know the types of loans you have, keeping track of the lender, balance and repayment status for each one. Every detail is important, because it can play a role in determining how each loan is repaid and what options might be available if you are ever at risk of falling behind. Start by visiting www.nslds.ed.gov to identify the details about the loan amounts, lender(s), and repayment status for all federal loans. If some loans aren’t listed, they’re probably private (non-federal) loans. For those, try to find a recent billing statement and/or the original paperwork. The school may be able to help if those records aren’t handy.

3. Plan for Repayment – When your federal loans are due, your payments will automatically be based on a standard 10-year repayment plan. If the standard payment is going to be hard for you to cover, there are other options, and you might be able to change plans down the line if you want or need to. Extending your repayment period beyond 10 years can lower your monthly payments, but you’ll end up paying more interest – often a lot more – over the life of the loan.

Some important options for student loan borrowers are income-driven repayment plans such as Income-Based Repayment and Pay As You Earn, which cap your monthly payments at a reasonable percentage of your income each year, and forgive any debt remaining after no more than 25 years (depending on the plan) of affordable payments. Forgiveness may be available after just 10 years of these payments for borrowers in the public and nonprofit sectors. To find out more about Income-Based Repayment and related programs and how they might work for you, visit www.IBRinfo.org.

4. Stay Out of Trouble – Ignoring your student loans has serious consequences that can last a lifetime. Not paying can lead to delinquency and default. For federal loans, default kicks in after nine months of non-payment. When you default, your total loan balance becomes due, your credit score is ruined, the total amount you owe increases dramatically, and the government can garnish your wages and seize your tax refunds if you default on a federal loan. For private loans, default can happen much more quickly and can put anyone who co-signed for your loan at risk as well. Talk to your lender right away if you’re in danger of default.

Source: NFCC

Published with permission from RISMedia.


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4 Ways to Create Better Spending Habits

May 5, 2016 12:46 am

If money is scarce by the end of every pay period, you may need to become a more efficient spender—and that means forming spending habits that come as naturally as paying your monthly bills.

U.S. News & World Report suggests test-driving a few of these ideas for living within your means:

Train Yourself to Change – Make small savings goals a part of your overall plan. One way to save money when eating out is to drink water instead of soda, wine or other pricey beverages. If you do it repeatedly, the small gesture will become a money-saving habit—and who doesn’t know that drinking more water offers significant health benefits?

Put Yourself on a Cash-Only Diet – If you tend to fall prey to the lure of credit cards, tuck them away and limit yourself to using cash instead. Withdraw the amount of cash you can afford to spend within a given time period. Chances are, you will find yourself spending more judiciously in order to make the cash last longer.

Limit Your Shopping Time – The more time you spend shopping or browsing, the more money you are apt to spend. Make short trips to the store or the mall. Buy what you need from a pre-written list and get on your way in a hurry. Spend the extra time reading or pursuing a hobby, and you reap double benefits.

Reward Yourself for Good Behavior – Habits can be formed much of the time by rewarding good behavior. If you stick with your spending plan (read: budget) for an entire month, successfully resisting all splurges and temptations, reward yourself with a little something nice that doesn’t break the bank, like a new pair of shoes or one of those special coffee drinks you cut out of your daily spend.

Published with permission from RISMedia.


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Your New Furnace Efficiency Checklist Starts with Ducts

May 5, 2016 12:46 am

So you've gone to the expense of finally replacing that old Buck Rogers-looking furnace with a high-tech, high-efficiency model that also coincidentally resembles a futuristic machine—albeit much smaller.

To be sure your new furnace is humming along as efficiently as possible, we turned to Don Ames of Home Energy Pros, a social network and community dedicated to home energy professionals. 

Ames says to maximize efficiency, check these four system items that affect how a new furnace will perform:

• Check for heating duct leakage and seal if needed
• Clean the air conditioner heat exchanger
• Make adjustments to the filter and the filter cabinet
• Add passages for return air that will balance the room pressure

Before installing a new furnace (and allowing efficiently heated air to escape unused), Ames says the duct system is the first and foremost thing that should be checked for air leakage, and sealed as needed.

If your utility, gas or electric provider has a duct sealing program, sign up—they may test your heating ducts for free. Otherwise, Ames says just seal them yourself using generous amounts of duct mastic.

First things first: do you have metal or insulated, flexible vinyl ducts? If you have insulated, flexible vinyl ducts, Ames says go ahead and check connections at the metal plenum or the metal register boots. If necessary, seal all joints in the metal plenum and seal the boots to the floor.

If you have metal ducts, whether round or rectangular, Ames says seal all joints and connections in both the supply and return air ducts with mastic using a gloved hand and applying it nickel-thick.

Ames reminds homeowners who want to squeeze every penny of savings from a high-efficiency heating system that sealing heating ducts is one of the most cost-effective and successful retrofits you can do to your home.

Published with permission from RISMedia.


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How Much Should New Homeowners Set Aside for Repairs?

May 5, 2016 12:46 am

Owning a home comes with its fair share of expenses, including mortgage and insurance payments and maintenance costs, but how much can a new homeowner reasonably expect to spend on unexpected repairs?

"My recommendation for homeowners is to take a few simple precautions before moving into their home," says Marianne Cusato, HomeAdvisor.com. "Complete a sewer inspection, check that the insurance policy covers water damage, and set money aside for home emergency projects. Homeowners should plan on spending 1 percent of their home's purchase price on repairs and emergencies each year."

According to HomeAdvisor.com data, more than half of homeowners encountered unexpected home projects within the first year of owning a home. More than half also spent more time on projects than originally anticipated, and less than half spent more money than anticipated.

The most frequently cited emergency projects include blocked toilets and pipes, a clogged drain, a broken heating or cooling system and water leaks. These unexpected repairs can cost homeowners anywhere from $199 to $2,068.

In the first year of homeownership, most new homeowners tend to focus on improvements that increase curb appeal, such as installing landscaping, a sprinkler system, wood fence or deck. According to HomeAdvisor.com, the average cost of these outdoor projects is $12,850.

Source: HomeAdvisor.com

Published with permission from RISMedia.


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Report: Retirees Happy "Just Getting By"

May 4, 2016 6:43 am

Despite economic progress, many retirees are still feeling the aftershocks of the recession—but that hasn’t dampened their spirits.

“Many American retirees are still recovering from the Great Recession while managing their households with modest retirement incomes,” explains Catherine Collinson, president of the Transamerica Center for Retirement Studies® (TCRS), which recently released a “State of Retirement” compendium. “The good news is that most retirees are enjoying life, but the concerning news is that many may be ill-equipped to deal with a financial shock, such as the possible need for long-term care.

“As a society, we frequently speak of the need for workers to save and prepare for retirement,” Collinson continues. “Unfortunately, the conversation often ends once people stop working and retire, which is when it becomes even more critical for them to have a financial plan that can last their lifetimes.”

Over one-third of retirees included in the TCRS compendium have only “somewhat” recovered from the recession—a finding reflected in the “just getting by” mentality prevalent in the report. Other financial priorities cited in the compendium include paying off a mortgage, saving for retirement and paying off credit card debt.

Retirees today are living on a modest income: a median of $32,000, according to the TCRS compendium. Social Security is the top source of retirement income, followed by savings and investments, company-funded pension plans, and 401(k)s, 403(b)s and IRAs. Most retirees began collecting Social Security benefits at 62 years old.

Still, current retirees expect a long retirement, filled with meaningful activities outside of employment. These include spending time with family and friends, pursuing hobbies, traveling, volunteering and caring for grandchildren.

Overall, the vast majority of retirees included in the compendium are “generally happy,” “enjoying life,” and “have a strong sense of purpose.”

Source: Transamerica Center for Retirement Studies

Published with permission from RISMedia.


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