DAILY INSIGHTS

Stocks up again. Stocks in the US opened higher to end what could be a strong week after losses last week. Bloomberg reported China plans to accelerate US agriculture purchases on an otherwise light news day. Spikes in COVID-19 cases continue in several southern and western US states as the reopen continues and economic data improves. Asian markets gained ground, while European markets were showing green in midday trading.

COVID-19 news. Confirmed new US cases rose 27,800 yesterday, a 21.3% increase, with almost all of the increase coming from the South. Arizona, Florida, California, South Carolina and Texas all reported record-high single-day increases. The positive test rate nationally also moved in the wrong direction, jumping to 5.8% yesterday. In more optimistic news, hospitalizations dipped nationally for the first time in three days (Source: COVID-19 Tracking Project).

LEI Turns Positive The Conference Board released its Leading Economic Index (LEI) report for May yesterday, showing the series returned to positive monthly growth after suffering steep declines in recent months. We examine the data release, as well as its implications for future economic growth and investors, in further detail on the LPL Research Blog.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

For Public Use – Tracking 1- 05024315

Market Blog

Stocks have shaken off the 5.9% S&P 500 Index drop last Thursday by gaining three days in a row before yesterday’s modest weakness. While researching and reading this week, three charts stood out that tell us quite a good deal about how investors have reacted during this volatile market and what could be next.

“Incredibly, we saw nearly a third of all investors over 65 years old sell their full equity holdings,” explained LPL Financial Senior Market Strategist Ryan Detrick. “With stocks now back near highs, this is yet another reason to have a plan in place before trouble comes, as making decisions when under duress can lead to the exact wrong decision.”

As shown in the LPL Chart of the Day, according to data from Fidelity Investments, nearly 18% of all investors sold their full equity holdings between February and May, while a much higher percentage that were closer to retirement (or in retirement) sold. Some might have bought back in, but odds are that many are feeling quite upset with the record bounce back in stocks here.

View enlarged chart.

Along these same lines, investors have recently moved to cash at a record pace. In fact, there is now nearly $5 trillion in money market funds, almost twice the levels we saw this time only five years ago. Also, the past three months saw the largest three-month change ever, as investors ran to the safety of cash. If you were looking for a reason stocks could continue to go higher over the longer term, there really is a lot of cash on the sidelines right now.

View enlarged chart.

Last, we noted last week that the extreme overbought nature of stocks here is actually consistent with the start of a new bull run, not a bear market bounce, or the end of a bull market. Adding to this, the spread between the number of stocks above their 50-day moving average and 200-day moving average was near the highest level ever. Think about it; with the 45% bounce in the S&P 500, many stocks were above their 50-day moving average, but not nearly as many were above their 200-day moving average. So from a longer-term perspective, there could still be gains to be had.

Sure enough, looking at other times that had wide spreads, they took place near the start of major bull markets. Near-term the potential is there for a well-deserved pullback, but going out 6 to 12 months, stocks have consistently outperformed.

View enlarged chart.

For more of our investment insights, listen to our latest LPL Market Signals podcast.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

S&P 500 Index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.

All index and market data from Factset and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

For Public Use – Tracking 1-05023694

Paying down debt can be a daunting task. But with a little self-discipline and some faith in yourself, your financial picture can change for the better in about six months. Your key to success will be to establish a debt reduction plan and stick to it. That way, you may be able to bring debt under control and even eliminate it.

There are three potential keys to a successful debt reduction plan. First, you need to track your monthly income and expenses. Once you have a record of your spending, compare your monthly outlay with your monthly income. If you have a surplus, this is the amount you can apply each month to paying down debt and building savings. If you have a shortfall, you’ll need to cut expenses.

Second, you’ll need to establish good saving habits. Each month, use your income to first pay expenses. Dedicate whatever is left to savings or reducing your debt. And third, reduce debt by controlling expenditures. Certainly, paying off credit card debt and installment loans is easier once you stop using your cards.

The bottom line is that you may not be able to solve your debt problem overnight, but you can potentially solve it over time. Not only will a combined debt reduction and saving strategy begin to lighten the load now, it may help you feel better about your future.

Wherever you might be financially, getting ahead can feel like it's beyond reach. Current bills can seem to gobble up almost everything. Unexpected ones seem to crop up whenever you have a little extra cash.
Chances are, you find it difficult to do anything because you don't know where to start. Relax. A lot of people are in your situation. What you need to do is face up to the matters at hand and set up a plan of action. The time to do that is right now. With a little self-discipline and some faith in yourself, your financial picture can potentially change for the better in about six months.

PAYING DEBT AND SAVING

What should you do first? Reduce your debt or start saving? The following three-part strategy may help you control your cash flow, pay off your debt, and encourage saving so you can handle the unexpected expenses that may have gotten you into debt in the first place. In time, you'll be ready to invest. But first you have to know what you owe and what you're spending.

TRACKING SPENDING

The steps outlined in the box below will help you determine how much cash you have to pay off your debt.
Next, you'll want to keep track of your typical expenses for one month or so to find out where your money is going. Also figure your unexpected expenses for a year's time -- auto and home repairs, gifts, vacations, etc. -- and divide that number by 12. You may want to use one of the personal finance software programs available to track your spending. Once you have a record of your spending, compare your monthly outlay with your monthly income. If you have a surplus, this is the amount you can apply each month to paying down debt and building savings. If you have a shortfall, you'll need to cut expenses.

HOW MUCH DO YOU HAVE TO PAY OFF YOUR DEBT?

Step #1: Create a personal balance sheet and list your debts in order of interest rate, from highest to lowest.
Step #2: Add up your liquid assets, including savings and investment accounts, if any.
Step #3: List any major purchases needed in the next year. Subtract this amount from your liquid assets. What remains is the amount you may have to pay your debts.

HOW TO BUILD SAVINGS

A key to establishing good saving habits is to make saving even easier than spending. Here are some tips.

• Ask your bank about linking your savings and checking accounts via an ATM card. Set up three savings accounts with goals attached to them. One may be labeled "cushion" for emergency cash, a second for "expenses" for unexpected bills, and a third for "investments." Carry your card only when you really need it to make transactions, and withdraw only what you need for one week. Then you won't be tempted to take out cash for impulse purchases.
• Whenever you're paid, put only what you need to live on for one month (or two weeks, if you get paid every two weeks) into your checking account. (If you put more into checking, you'll probably spend it.)
• If you can, put money equaling one month's expenses into your expenses account for unexpected bills. The idea is to build at least a small stash so you're less likely to use your credit card if your car needs a new tire.
• Begin building your emergency cushion by depositing a portion of each paycheck into your "cushion" savings account. If your goal is to have three months' living expenses, you could reach your goal in 30 months by saving 10% of each month's pay -- or in 15 months by saving 20%.
• Put whatever is left into your "investments" account, including found money such as birthday and holiday checks, bonuses, or money made from a garage sale. If you get a raise, put the difference into this account on a regular basis.
• If your bank can't link your checking and savings accounts, or if you find it hard to control your spending when access to your savings is easy, ask your employer about direct deposit. You can have money taken from your paycheck and placed in a savings account automatically.

HOW TO REDUCE DEBT

Paying off debt is easier once you stop using your cards.

• Pay off your highest interest credit card debt first, making sure you avoid the "minimum balance trap." Because credit card companies make their money from interest payments, they purposely set those payments low so it will take you years to pay off the balance. Paying just a little more than the minimum can make a big difference. For example, assume you have a balance of $5,000 at an interest rate of 15% and you make the minimum monthly payments of 2.5% of the balance or $25, whichever is greater. It would take you 183 months to pay off the debt and cost you $4,395 in interest. However, if you were to pay an extra $150 each month, you would pay only $845 in interest over 27 months. This is a hypothetical example for illustrative purposes only.
• Consolidate your debt by transferring outstanding balances to lower-rate cards. These days, the competition between credit card issuers is so intense that you can often negotiate your interest rate. If you don't want to transfer your balances, chances are that your current credit card company will match the interest rate of a competitor. Just be aware that some of the low rates available these days are "teaser rates," which only apply during the first 6 to 12 months you have the card.
• Cancel your old cards so you won't be tempted to use them again. The most you need is two. And leave them at home unless you really need them.
• Set up a realistic payment timetable and stick with it. If you need to readjust your timetable, do so. If you have trouble, talk to a professional. The counselors at the nonprofit National Foundation for Credit Counseling can develop a more structured plan for you, if needed. To find their nearest location, call 1-800-388-2227.

You may not be able to solve your debt problem overnight, but you can solve it over time. Not only will a combined debt reduction and saving strategy begin to lighten the load now, it will help you feel better about your future.

POINTS TO REMEMBER 

• Many people have problems with debt reduction and saving because they don't have a strategy. A good plan can help you channel your funds for the best use possible.
• A three-pronged strategy of cash-flow control, saving, and debt reduction can help you begin to lighten the load now and feel more optimistic about your future. Once your debts are paid off, you'll be ready to start investing.
• Consolidate your debts using low-interest credit cards. If you don't want to transfer your debts, ask your credit card company to lower your interest rate to match a competitor. Chances are, your company will negotiate.
• Set up a payment plan and stick with it. If you need help, talk with a professional.

Because of the possibility of human or mechanical error by S&P Capital IQ Financial Communications or its sources, neither S&P Capital IQ Financial Communications nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall S&P Capital IQ Financial Communications be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content. 

© 2013 S&P Capital IQ Financial Communications. All rights reserved.

Tracking #1-202517

Even though more than half of all new mortgages issued in recent years have been for homeowners refinancing their existing home loans, the decision to refinance isn’t necessarily the wisest strategy for everyone. The most important fact to consider is whether the savings from refinancing will compensate for the cost of the refinancing itself. If you don’t plan to stay in your home long enough to break even, refinancing could be a mistake.

For those homeowners who do decide to refinance, there are several other variables to consider. For example, although short-term mortgages typically offer lower interest rates than long-term mortgages, they usually involve higher monthly payments. On the other hand, they can result in significantly reduced interest costs over time. There is also a significant difference between a fixed-rate mortgage and an adjustable rate mortgage. The former allows a borrower to "lock in" a permanent rate, whereas the interest rate on the latter could go up in the future. In addition, some mortgages charge fees called "points" up front, but may offer lower interest rates in return. Always remember to check with your current lender about refinancing — your existing relationship could allow you to realize big savings in terms of both time and money.

In recent years, Americans seeking to take advantage of low interest rates have lined up to refinance their mortgages -- often resulting in significantly lower monthly payments.
But while it's true that refinancing has the potential to help you reduce the costs associated with borrowing money to own a home, it is not necessarily a strategy that makes sense for every individual in every situation. So before you make a commitment to refinance your mortgage, its important to do your homework and determine whether such a move is the right one for you.

TO REFINANCE OR NOT

The old and arbitrary rule of thumb said that a refi only makes sense if you can lower your interest rate by at least two percentage points for example, from 6% to 4%. But what really matters is how long it will take you to break even and whether you plan to stay in your home that long. In other words, make sure you understand -- and are comfortable with -- the amount of time it will take for your overall savings to compensate for the cost of the refinancing.

Consider this: If you had a 30-year $200,000 mortgage with a 6.5% interest rate, your monthly payment would be $1,264. If you refinanced at 4.5%, your new monthly payment would be $1,013, a savings of $251 per month. Assuming that your new closing costs amounted to $2,000, it would take eight months to break even. ($251 x 8 = $2,008). If you planned to stay in your home for at least eight more months, then a refi would be appropriate under these conditions. If you planned to sell the house before then, you might not want to bother refinancing. (See below for additional examples.)

REMEMBER -- ALL MORTGAGES ARE NOT CREATED EQUAL

Don't make the mistake of choosing a mortgage based only on its stated annual percentage rate (APR), because there are a variety of other important variables to consider, such as:

The term of the mortgage -- This describes the amount of time it will take you to pay off the loan's principal and interest. Although short-term mortgages typically offer lower interest rates than long-term mortgages, they usually involve higher monthly payments. On the other hand, they can result in significantly reduced interest costs over time.

The variability of the interest rate -- There are two basic types of mortgages: those with "fixed" (i.e., unchanging) interest rates and those with variable rates, which can change after a predetermined amount of time has passed, such as one year or five years. While an adjustable-rate mortgage (ARM) usually offers a lower introductory rate than a fixed-rate mortgage with a comparable term, the ARM's rate could jump in the future if interest rates rise. If you plan to stay in your home for a long time, it may make sense to opt for the predictability and security of a fixed rate, whereas an ARM might make sense if you plan to sell before its rate is allowed to go up. Also keep in mind that interest rates have hovered near historical lows in recent years and are more likely to increase than decrease over time.

Points -- Points (also known as "origination fees" or "discount fees") are fees that you pay to a lender or broker when you close the deal. While a "no cost" or "zero points" mortgage does not carry this up-front cost, it could prove to be more expensive if the lender charges a higher interest rate instead. So you'll need to determine whether the savings from a lower rate justify the added costs of paying points. (One point is equal to one percent of the loan's value.)

1. The decision to refinance should only be made if the long-term savings outweigh the initial expenses. To calculate your break-even point, divide the cost of the refi by your monthly savings. The resulting figure represents the number of months you will need to stay in the home to make the strategy work.
2. Don't select a new mortgage based only on its annual percentage rate.
3. Also evaluate the term of the loan, whether the interest rate is fixed or variable, and the relative merits of paying up-front fees in exchange for a lower rate.
4. Your current lender already knows you and has your financial information on file, so you may be able to get a better deal that way, instead of going to a new lender.
5. To get the best possible refinancing deal, you'll need to shop around, crunch some numbers, and ask a lot of questions.

Because of the possibility of human or mechanical error by S&P Capital IQ Financial Communications or its sources, neither S&P Capital IQ Financial Communications nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall S&P Capital IQ Financial Communications be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor

© 2013 S&P Capital IQ Financial Communications. All rights reserved.

Tracking #1-204107

Living trusts are one of the most prevalent estate planning tools in use today.¹ Many people use a living trust instead of a will to avoid probate, a court-supervised process for transferring assets to the beneficiaries listed in your will, which can be expensive and exposes your estate to public record. A living will does not avoid the estate tax but makes the settlement process much easier.

Living trusts are most appropriate for those with substantial assets or complex estates. In general, financial planners frequently recommend them for individuals or couples with an estate of $100,000 or more. Estates of this size typically are subjected to probate in the deceased's state of residence, which can cost anywhere between 2% and 4% of the estate's value in court and legal fees. Young couples without significant assets and without children, who intend to leave their assets to each other when the first one of them dies, may not benefit from having a living trust.

NAMING A TRUSTEE

When establishing a living trust, most people name themselves as the trustee in charge of managing the trust's assets. You should also name a successor trustee, either a person or an institution, who will manage the trust's assets if you ever become unable or unwilling to do so yourself. A living trust is not irrevocable, so you can amend it at any time.

Almost any type of asset can be placed in a trust, including savings accounts, stocks, bonds, real estate, life insurance, business interests, art, collectibles, and personal property. To fund a trust, you need to change the name or title on your assets to the name of the trust. Be sure to be thorough: Anything that remains in your name will not be considered part of the trust.

SPOUSES AND DOMESTIC PARTNERS

Since a living trust can hold both separate and community property, it can be a convenient estate-planning vehicle for spouses and registered domestic partners to plan for the management and ultimate distribution of their assets in one document.

WILLS VERSUS LIVING TRUSTS

An estate planning attorney can advise you on whether a living trust is appropriate for your personal situation. This type of "substitute will" may help you transfer assets to your heirs in a way that maintains your privacy.

Source/Disclaimer:

¹The information presented here is not intended to be tax or legal advice. Each individual's situation is different. You should speak to a tax or legal professional to discuss your personal situation.

© 2012 S&P Capital IQ Financial Communications. All rights reserved.

Tracking #1-078145

Pursuing short-term financial goals -- those that you'd like to achieve within one to five years, such as a down payment on a home or car -- can require a different strategy than pursuing long-term goals. Here are some steps to help you save and invest when you're going to need your money sooner rather than later.

• Step 1: Be specific about your goal. Setting a specific short-term goal will help you to evaluate your progress toward meeting it. For instance, the vague objective "I want to save money to buy a house" becomes "I want to save $25,000 over five years to put toward the down payment of a house in (town/city)."
• Step 2: Take steps to free up extra cash. How will you save the money that you need? Eating out less often, canceling a gym membership that you don't use, or downgrading your cable from a premium to a basic plan could easily free up $100 per month or more toward your goal. There are probably many areas where you can save a few bucks. Make a detailed list of what you spend in an average month and see where you could afford to trim.
• Step 3: Match your investments or savings vehicles with your goal. Safety and liquidity will be priorities if you need the money within a few years. Stocks can experience extreme fluctuations over short-term periods. You don't want to be forced to sell your assets when the value of your investment has dropped. More appropriate choices for short-term needs may be conservative instruments that offer a more stable return, such as short-term bond funds and money market funds. Federally insured savings vehicles, such as certificates of deposit, could also play a role.

UNDERSTANDING SHORT-TERM INVESTMENTS

Short-term bond funds primarily invest in U.S. government or corporate debt with maturities that range from one to three years. Money market funds pool investors' dollars to buy money market instruments. These types of securities aim to produce current income, offer liquidity (how quickly you can sell an asset), and usually aren't subject to the dramatic ups and downs of stocks. Certificates of deposit are interest-bearing debt instruments with a wide range of maturities. In exchange for purchasing a certificate of deposit, the investor will receive the return of principal plus interest at the maturity date.

Finally, remember that short-term financial objectives should not take away from investing for long-term goals.
Source/Disclaimer:

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a prospectus, or if available, a summary prospectus containing this and other information, contact appropriate fund company or view the fund prospectus on Website of the appropriate fund company. Please carefully read the prospectus or the summary prospectus before investing.
Your investment is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Current performance maybe higher or lower than the past, which cannot guarantee future results.

Share price, principal value, yield and return will vary and you may have a gain or loss when you sell you shares.

An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Bonds are subject to interest and market rate risk if sold prior to maturity. Bond values will decline as interest rates rise and are subject to availability and change in price

Certificates of deposit offer a guaranteed rate of return, guaranteed principal and interest and are generally insured by the FDIC (see http://www.fdic.gov/consumers/consumer/information/fdiciorn.html for additional information). Early withdrawal of certificates of deposit may be subject to penalty.

© 2012 S&P Capital IQ Financial Communications. All rights reserved.

Tracking #1-078140

Over time, the value of your home has grown and your mortgage balance has been reduced (or even eliminated). The equity (the property's value minus any liens against it) you now have in your home is a reservoir of funding potential. You may decide to tap into it for various purposes, such as remodeling your home, paying off high-interest loans or credit card debt, buying a car, or sending your child to college.

THE PROS AND CONS

Home equity financing (which may be set up as either a loan or a line of credit) is secured by the equity you've built up in your home. This type of financing has several advantages compared to other forms of personal loans:

• Higher borrowing limits
• Favorable interest rates
• Tax-deductible interest--if you itemize your deductions on your federal income tax return, you may be able to deduct the interest on up to $100,000 ($50,000 if married filing separately) of home equity debt.

There can be drawbacks, however:

• You may have to pay closing costs and other fees
• If you sell your home, you'll have to repay the outstanding balance
• Since your home is collateral securing the debt, you run the risk of foreclosure if you can't make your payments

HOME EQUITY LOANS

Often referred to as a second mortgage, a home equity loan generally allows you to borrow a fixed amount of money (typically up to 80 percent of your equity) at a fixed rate of interest. The total amount you borrow is advanced to you when you sign for the loan. You'll repay the loan with equal monthly payments over a fixed term.

HOME EQUITY LINES OF CREDIT

When you arrange a home equity line of credit, your lender establishes a revolving credit limit determined in part by the amount of your equity. You then borrow only what you need (up to the maximum allowed) only when you need it (subject to any time limit on the borrowing period). You can access the funds either by writing a check or using a credit card associated with the account.

The interest rate for a home equity line of credit is generally a variable rate tied to an index. Your monthly payments may vary, depending on your outstanding balance and the prevailing interest rate. You may have the option of making interest-only payments over the course of the repayment period (e.g., 10 years), or minimum payments that cover a portion of the principal plus accrued interest, coupled with a balloon payment of principal at the end of the loan's term.

CHOOSING BETWEEN THE TWO

When deciding whether to apply for a home equity loan or a line of credit, it's important to consider how much you'll need and how soon you'll need it.

If you want a fixed amount of money for a specific purpose (e.g., remodeling the kitchen), you may wish to take out a home equity loan that advances you the total amount up front. If instead you'll need an indeterminate amount over a few years (e.g., funds for ongoing college expenses), you may benefit most from a home equity line of credit that you can draw on when needed.

SHOP AROUND FOR THE BEST DEAL

Whatever choice you make, you'll want to shop around to find the most favorable rates and terms. Here are a few things to consider:

• In an effort to attract your business, a lender may be willing to absorb or waive some or all of the costs (e.g., application fees and points) of obtaining the financing
• The frequency of variable interest rate adjustments and any caps on rate increases will affect the overall cost of a home equity line of credit
• If you're considering a home equity line of credit, find out if you have the option to convert the line to a fixed-rate, fixed-term loan in the future
• When comparing a home equity line of credit to a home equity loan, don't rely solely on the annual percentage rate (APR) as a measure of cost, because the APR for a home equity loan takes points and financing charges into consideration while the APR for a home equity line of credit does not

Click on one of the categories for more resources about that topic.

1. Cash-Flow Maximizing
2. Insurance Optimizing
3. Estate Planning
4. Real Estate & Debt Management
5. Tax-Smart Investing