Manny Kagan

Can We Adjust?

“Personality is an unbroken series of successful gestures.“–F. Scott Fitzgerald

According to Psychologist Sigmund Freud, a person’s personality is shaped by the age of 5. Other studies have demonstrated that personalities can be shaped as early as the age of 3, while others studies have shown one’s personality is set by the first grade. The point is, we become who we are quite early in life. Therefore, it is quite difficult to change, regardless of the outer appearance. But men and women can adjust their way of thinking at any time, as the information presented to them changes. This also relates to the information of the type of mortgage to choose. A recent article in the Wall Street Journal—“A New Wave of Adjustable Mortgages” is what prompted me to write about this topic. These mortgages have a fixed period of time for 1,3,5,7 or 10 years and become adjustable after the fixed period.

Most borrowers get a mortgage fixed for 30 years. It is done with the assumption that you are going to have the same mortgage until it is completely paid off in 30 years. When the interest rate comes down (and it does all the time, despite the concern of the skeptics), those who are qualified, refinance their mortgage again into a 30 years fixed rate. This can be good insurance to protect from the possible increase of interest rates in the future. When I moved to the United States in 1980, the interest rates were about 15%. After I started working in the mortgage business in 1983, we hoped that the rate would drop below 10%. And it did!

When we bought our first home in 1984, our first mortgage was anadjustable loan “with negative amortization” from the World Savings and Loans Bank. To this day, we still have an adjustable mortgage with the rate of 2.80% on our personal residence which can adjust monthly (it has not in the last 5 years), as well as 2.875% on our rental properties. Even if the rates will go up, the benefit of the lower interest rate outweighs the risk, and besides an adjustable rate is historically always lower.

My recommendations for those who want to pay off their mortgage sooner, is instead of taking a loan fixed for 30 years, to take a loan fixed for 5 years with the rate as low as 3.375% (depending on the program) and to pay the full payment as it would be fixed for 30 years at say, 4.25% or higher. This will significantly reduce the principal by the end of the 5 years of the loan. At that time (or sooner), one can refinance again with no out of pocket closing costs (no cost) into another 5 years fixed rate—always with the rate lower than the fixed rate. I believe that the balance of your mortgage is going to be paid off much faster.

Some of my financially savvy clients do just that. Of course, there is a risk. The interest rates might be higher in the future. But do you not take risks every day? Anyone who invests money in stocks or other financial “opportunities” has a much higher risk.

If this sounds confusing or frightening, give me a call. I am always available to help you find tailored mortgage solutions.

P.S.

When we traveled in Cuba, we noticed Cubans are making adjustments all the time. Just take a look at the way they learned how to fix their cars. You can see more of my images from Cuba in my book Soy Cubano.

As far as my personal adjustment, I present to you today black and white images. My camera is the same, as are my eyes, and the finger which pressed the button. But I made an adjustment in my interpretation. You be the judge.

P.P.S.

Don’t forget about the June Special! If you want to have your cake and eat it, just give this card to get it.

(click flyer for details)*

*Limit one cheesecake per family for successful referrals

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Mortgage Solutions For You

PURCHASE–Renovation Home Style Highlights

One Loan Does It All!

Those who buy properties which need IMPROVEMENTS–including landscaping and even pools, can benefit from this program.

The difference and advantage of the HomeStyle program vesus the FHA 203K is lower Mortgage Insurance (MI).

If the Loan to Value (LTV) is 80% or less, no MI is needed. Please feel free to call me for clarification.

Don’t forget to participate in this month’s Cheesecake Special.

Whom do you know that might benefit from our tailored mortgage solutions?

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Father’s Honor

“We often forget (or do not know) how a tradition began, but have no problem following them.”

This year, Father’s day falls on Sunday, June 15^th. In June 1910, a woman named Sonora Smart Dodd prompted this holiday when she wanted to honor her father. However, it wasn’t until 1972 when President Nixon made it a permanent national holiday.

The intention was to honor men’s roles as fathers and their influence in society, which was promoted and cemented by economic considerations. By the mid-1980’s, the Father’s council wrote that “…Father’s Day has become a second Christmas for all the men’s gift-orientated industries”.

There is a joke told about a Jewish woman giving her husband two ties as a present on Father’s Day. He wore one of them at the next family gathering. Seeing this, his wife remarked, “You do not like the other one?”

But I am sure you will agree with me that there are many other ways and reasons to celebrate a father’s role in our society, and this can be done any day.

For many, a child’s first teacher is their father. In the old Jewish traditions, a father is obligated to teach the Torah to his sons, as well as an occupation, as well as how to swim.

Specifically, this teaching comes from the Talmud that was recorded about 1800 years ago. The study of the Torah represents the knowledge of life’s rules; in terms of how to live and behave in the world. The need to have an occupation and to earn a living for a family might sound obvious. When I was about 14, I worked on the Children’s Railway in Riga. My father encouraged me that working there may help me become an engineer. (I began my engineering studies three years later.) You can read more about my life journey in my book, The Mortgage Game: The 5 C’s and How to Connect Them.

But what’s the importance of teaching one’s children how to swim? Years ago, it was meant to save one’s life during the journey over a body of water, which today can certainly have a similar meaning. But it also can mean to learn how to swim, as in navigating through life.

My father died 18 years ago. He survived World War II and was an honorable and respectable man in Riga. I am proud to say that I am the son of Chaim Kagan.

If I can summarize, Father’s Day can be celebrated as an expression of love.

P.S.

Some of these images that I captured in Cuba demonstrate the relationship between fathers and their children. You can see more in my book, Soy Cubano.If you are looking for a special gift for Father’s Day, may I suggest Zanze’s cheesecake? You can have one for free by just referring a client to us in the month of June.

If you want to have your cake and eat it, just give this card to get it.

(click flyer for details)*

*Limit one cheesecake per family for successful referrals

DO NOT KEEP ME AS A SECRET.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Mortgage Solutions For You

JUNE SPECIAL

*Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

This is a special program offered by one of our lenders. The interest rate is tied to the credit score. If the FICO score is less than 760, there can be an increase in the rate or closing costs.

Recently, a client called after his purchase loan was declined by a major bank. He had only two weeks left to close the transaction. Since we received a complete file, we were able to submit the loan and close it in only 18 days after the Real Estate Agent received a contract extension for seven days!

Don’t forget to participate in this month’s Cheesecake Special.

Whom do you know that might benefit from our tailored mortgage solutions?

SMILE AND PLEASE SHARE IT WITH A FRIEND

What Is Pentecost And Why We Should Care To Know

“If you want to find God, just let God know about it.”

On Sunday, June 8^th—some Christians are going to celebrate Pentecost. Online, I found very interesting explanations of what this holiday means in the article written by Reverend Mark D. Roberts. The essence is that the believers commemorate the coming of the Holy Spirit on the earthly followers of Jesus to his followers, who came to Jerusalem to celebrate the Jewish holiday Shavuot. So, from the historical point of view, the Pentecost is the Christian Church’s birthday.

The holiday was celebrated for at least 1,000 years since the first temple was built by King Solomon at the time of Jesus’ crucifixion. The word “Pentecost”, meaning fifty, and is the Greek name for the “Feast of Weeks”. It is in conjunction to the Torah’s celebration of Shavuot, which takes place fifty days after the Passover holiday. It was a perfect backdrop for Jesus’ revelation and the birth of a new religion.

In this story, I see a direct correlation between what happened on Mount Sinai when the Torah was given and between what happened many hundreds of years later in Jerusalem. During those years, Judaism went through many transformations. Though the text in the Torah did not change—the interpretations did. During those years, many groups and sects believed that their way is the right way. In this sense, Jesus’ teachings were probably not much different. But, he was a natural healer and emphasized faith as critical to healing — both the faith of the one being healed as well as the faith of those around him or her. His healing attracted many followers and by using his unique abilities, he was able to bring his message to the impoverished masses. But as we’ve seen, future history created many interpretations of the meaning of his message.

Despite the disagreements, there is one element that unifies all of the beliefs. Regardless of what the belief or tradition is, everyone enjoys sharing a good meal, which ends wonderfully with dessert. So, what can be better than Divine Mercy Cheesecake? It does not matter what your beliefs are—Christian, or Jewish—sharing a good cheesecake will easily erase all the differences.

If you do not have time to make your own, I highly recommend getting your cheesecake at Zanze’s bakery. They make the best cheesecake in San Francisco. During our “June Cheesecake Special”, you can get one FOR FREE.

Read below to learn how.

If you want to have your cake and eat it, just give this card to get it.

(click flyer for details)*

*Limit one cheesecake per family for successful referrals

P.S.

In the article I mentioned at the beginning of this newsletter, I learned that “Churches that employ liturgical colors generally use red on Pentecost as a symbol of power and fire of the spirit”. What can more be beautiful than red tulips to decorate the festive event? I’ve photographed these beauties on our trip to Amsterdam last April 2007.

Happy Pentecost!

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Mortgage Solutions For You

JUNE CHEESECAKE SPECIAL

*Click flyer for details. Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

If you recall in last week’s newsletter about Shavuot, the foods of choice for this holiday, are dairy products. We are very lucky, we have our very own cheese maker in our family. My wife Elfa makes her own farmers cheese.

A few years ago, our youngest daughter Tamar wanted to make an episode of Elfa making her cheese for her “Tamar’s Healthy Delectables” web series. It was a family project. My wife Elfa de monstrated her goods, while Tamar hosted, and I was the cinematographer. Thanks to Elfa, we eat a new batch of the cheese every weekend.

If you have some questions after seeing the video, feel free to call Elfa at 415-242-0730.

Healthy Delectables: Elfa’s Farmer Cheese from April Eckfeld on Vimeo.

Whom do you know that might benefit from our tailored mortgage solutions?

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What Is Shavuot And Why We Should Care To Know

“If you do not know where you are coming from, how would you know where to go?”

Those of us who live in San Francisco and by an extension in the Bay Area as well as other big cities, have the privilege to live among different people from different countries with various practices and different religious backgrounds and beliefs. Through living, studying, working together, speaking the same language, and intermarrying, we supposedly grow closer to each other; but do we really know our neighbors?

One of the dividing factors between people throughout history has been religion. The month of June is not only the first month of summer, but it is also the time when three major monotheist religions have their own distinct holidays–Shavuot in Judaism, Pentecostal Sunday for Christians, andRamadan for the Muslims. I decided to write about the one factor that is a common thread for all three of these holidays.

It is food and in particular—it is cheesecake.

Shavuot is a major Jewish festival, which is celebrated this year on June 4^thand 5^th (since the Jewish calendar follows the lunar cycle, the date changes every year). Originally, it was considered a harvest festival when Jews would come to Jerusalem to visit the Temple and bring the product of their first harvest as an expression of gratitude. But it also commemorates the giving of the Law—the Torah on Mount Zion. This happened fifty days after the second day of Passover or exodus from slavery in Egypt.

All of these events are very important, but why according to the tradition on Shavuot do Jews have to eat a cheesecake? Actually—not only a cheesecake, but any dairy products. The obvious answer could be that a celebration needs to have some kind of dessert. But actually, there are other explanations, which have to do with the rules of Kashrut, or the separation of dairy and meat products in the same meal.

I think that there can be at least one more explanation. During the Exodus and at the Passover table, we are obligated to eat meat—the Paschal lamb. This is the food that gives us energy for the long and arduous journey. After we got to Mt. Zion and received the Ten Commandments, we can relax, and enjoy ourselves. Not only to have cake (the Commandments), but also to share with friends or family members during the festive meal.

Today we all can enjoy many dairy products: yogurt, ice creams, and variety of cheeses. Shavuot is not a holiday for those who want to lose weight. In my attempt to bring you images of dairy products, I visited a farmer’s market on the Embarcadero. There, I also found a long line of people waiting to buy a scoop of Over the Moon creamery’s ice cream. I also visited a good cheese shop.

P.S.

Cheesecakes are sold everywhere, but nothing comes close to Zanze’s—a tiny shop and bakery located on 2405 Ocean Ave in San Francisco. Their cheesecakes are the best. To help you get the best, I decided to create a special offer—“June Cheesecake Special”. For anyone who wants to help their friends get a great mortgage and refer our services, I will personally deliver a freshly baked cheesecake from Zanze’s to your doorstep.

Enjoy the holiday, the rest of your life, and yes—a cheesecake.

Happy Shavuot!
(click flyer for details)

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*Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

Clients, property owners in San Francisco, have a single family house where its value has increased to $1,500,000. They wanted to refinance their jumbo loan of $850,000. Their children will graduate and go out to college in about eight years. Instead of refinancing into a 30 year fixed rate, our tailored solution was to choose a mortgage with a fixed rate for 10 years. Why? This will give them $305 in monthly savings.

Whom do you know that might benefit from our tailored mortgage solutions?

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June MeetUP: Retirement Plans, Trusts, and IRAs

We’re pleased to announce our MeetUP Event for JUNE:

Face retirement and the future head on.

People brave enough to look into the crystal ball of the future are much more likely to take control of their retirement planning. It’s a vivid reminder that everything you do today impacts your future tomorrow. Meet professionals that can help you, so you’re not left wondering what’s next.

JUNEMEETUP

LET US HELP YOU!

Meet up with Manny and his friends for a night of sharing common interests and ideas. You will have the opportunity to meet people with common real estate interests who own or want to buy commercial or apartment buildings, share, or address any ideas and concerns.

This month’s Meet up event will take place on:

June 12th at 6:30pm at 233 Arroyo Drive, South San Francisco, CA 94080

OUR FEATURED GUEST SPEAKER:

Stephen L. Dobrow, ERPA, APA, CPC

President, Primark Benefits

Stephen Dobrow A San Francisco native, Stephen entered the Retirement field in 1976, gained executive experience in Silicon Valley, and returned to Primark Benefits in 1990 to lead its management team. His expertise is in converting tax dollars into employee benefits, which are otherwise unaffordable.

Stephen holds a degree in Management from Golden Gate University in San Francisco. He also holds a degree in accounting. He formerly served as a chapter officer for the National Institute of Pension Administrators in which he has achieved the designation of Accredited Pension Administrator. Stephen holds the designations of Qualified 401(k) Administrator, Qualified Pension Administrator, and Certified Pension Consultant, as issued by the American Society of Pension Professionals and Actuaries. He is past President of ASPPA.

PETER C. KARP, REGISTERED FINANCIAL ADVISOR
President, Karp Capital Management

peter Peter Karp is the founder of Karp Capital Management Corp, a registered investment advisory firm. The company is headquartered in San Francisco and provides a full range of financial services focusing on asset management strategies, plan participant education/ advisement and business consulting. He is a member of the Financial Planning association, Western Pension & Benefits Association and is a founding partner of NAPA.(National Association of Plan Advisors). Karp ranked 25th on the list of top Bay Area Independent wealth advisor with over 7,000 nominations received every year. Learn more and sign up for the Karp Capital Focus quarterly newsletter with asset management insights at karpcapital.com.

Interested? Let’s meet up!

Please spread the word and remember to RSVP to Ausra@Pacbay.net

Looking forward to seeing you on May 8th!

MEET UP DETAILS:

Date: Thursday: June 12th, 2014
Address: 233 Arroyo Drive,
South San Francisco, CA 94080
(Please Meet in the Betty Weber Room)
Time: 6:30pm to 8:30pm

RSVP on Meetup.com OR email Ausra@Pacbay.net

What Does Memorial Day Mean To You?

“We are the sum of our memories. If we do not remember, it’s because we have chosen to forget.”

U.S. Military history began in 1775 when the Continental Congress created the Continental Army and appointed George Washington as its commander. During the U.S. Civil War from 1861 until 1865, about 750,000 soldiers on both sides were killed. Since its inception, the U.S. has been involved in about 40 military conflicts including the War on Terrorism, which started in 2001, and has no end in sight. As a result, the death toll has reached 1,321,612 (according to Wikipedia). The idea to put flowers on the graves of the fallen soldiers came from women (as many other honorable ideas) before the end of the Civil War and in 1868, General John A. Logan officially proclaimed May 30^th as Decoration Day—a day of remembrance for those who have died in our nation’s service.

It is believed that the day was chosen because flowers would be in bloom all over the country. Actually, the holiday called Memorial Day was claimed to have started two years earlier, and there are approximately 25 places—primarily in the South—which claimed the origin of Memorial Day. It was only in 1971 that Congress declared Memorial Day to be a national Holidays, which is when it was placed on the last Monday of May. This year, it is celebrated on May 26^th.

I wrote this short history just to illustrate how often people, whom we have never met, whose names we do not remember or never knew, helped to create the conditions for the life most of us are benefiting from.

There are many military cemeteries throughout the United States. The grandest of them all is the Arlington National Cemetery in Virginia, which has more than 400,000 graves. There is also one in San Francisco’s Presidio, where over 30,000 military servicemen are buried. It is located in a breathtaking park-like setting.

Many of us, especially those who—like our family, were not born in the United States might not have a direct history with our country’s past. But when we take a day off to have a good time, why not also remember those who died in wars to protect our past and the future, and say “Thank You”.

P.S.

These are some photos from the Presidio Cemetery that I took on a visit there in 2009. Enjoy!

HAPPY MEMORIAL DAY

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President, Primark Benefits

PETER C. KARP, REGISTERED FINANCIAL ADVISOR President, Karp Capital Management

PETER C. KARP, REGISTERED FINANCIAL ADVISOR
President, Karp Capital Management