Friday Financial Five–June 14th, 2013

Friday, June 14, 2013

Dan Forbes, GoLocalProv Financial Expert

 

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The RI Small Business Administration hands out its yearly awards

The SBA “Rhode Island Salute to Small Business” took place this week. It was refreshing to see a mix of entrepreneurs, political leaders, and banking professionals congregated with the goal of honoring an eclectic mix of successful business owners. Brenda Brock was awarded RI Small Business Person of the Year as CEO of Farmaesthetics, which creates herbal skincare products. Honorees and guest speakers struck a familiar tone–Rhode Island’s dismal unemployment situation will only improve through a combination of small business success and government cooperation.

The problems in Japan

The world’s third largest economy is facing an extremely difficult situation. The country has been mired in a slump for decades with stagnant wages, decreasing population, and a debt-to-Gross Domestic Product ratio of over 200 percent. A major percentage of the budget is simply paying interest on monies owed. The country is now trying to devalue the yen relative to its trading partners, but the rest of the world will not sit by idly. There is a currency war taking place and it’s led to volatility in the past week.

Loan information for the recent college graduate

One of the joys of graduating is tallying up all of the accumulated debt. The National Student Loan Data System will help identify loan types and amounts. After gathering loan details, start investigation possible repayment plans based on income or indebtedness. The government also offers loan forgiveness after 120 monthly payments to those graduates working in public service. Check out the Public Loan Forgiveness Program for details.

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Projecting the future of real estate

If you don’t believe what your eyes are telling you regarding real estate, there are studies forecasting a continued turnaround for the market. Following the 5.7 percent rise in single family house pricing in 2012, a study by Ernst & Young shows real estate organizations expect another 5 to 6 percent annual increase through 2015. Another indicator is increased foreclosure activity. Foreclosures increased 11 percent last month nationally, as banks are confident the market is strengthening and they’ll be able to unload distressed properties.

Hurricane season is upon us

It’s around this time of year that people start asking about covering their home in case of a flood. The flood insurance program is run by FEMA. For those not in a flood zone, coverage is pretty reasonably priced, but the coverage is not all that extensive. Remember that flood coverage obtained outside of a mortgage requirement takes 30 days to go into effect. That means you can’t call the day before a hurricane hits and expect to get insured.

Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected].

 

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