Did Chris Gardner Call Matthew a Quitter on the WGN Morning News?

Meeting Chris Gardner, the NY Times best-selling author of Pursuit of Happyness, was a life-changing moment.  He is just as sincere and warm while he carries a quite intensity with him as he shakes your hand and engages in conversation.  It was amazing to ride shotgun on TV, next to a man who has changed many lives with his personal story of determination and passion – which inspired the blockbuster move “Pursuit of Happyness” led by Mr. Hollywood himself – Will Smith.  His new book, Start Where You Are, is out in the stores so be sure to pick it up…I couldn’t put it down!

WGN Morning News gave me the honor of appearing on a segment with Mr. Gardner to answer some questions they have been getting from concerned people not knowing what to do with their financial situation.

Although the segment is long done, you can always call our show as another resource and arrange to speak with a Money Smart Advisor in our national network about your retirement, college plan and ways to protect your greatest financial asset – your home and home equity. 708.686.2000 x8

Here’s that segment from the WGN Morning News with Robin and Larry:

Since we did not have much time, I wanted to write a couple things down from questions that were asked that I thought were pretty important to share.

With state financial aid programs cut and the state-sponsored 529 plan losing so much money, combined with my losing built-up home equity and 401(k) savings, what am I supposed to do with my kids going to college within the next couple years? – Concerned Parent

Answer:

Don’t let the sticker shock scare you!  Public and private colleges calculate need-based aid much differently.  Since state aid has affected many people, private college are still waiting there awaiting to offer financial aid packages to attractive students. Working with a financial professional with specialized skills in college planning, not just college savings, should be able to further help you navigate through this economic storm.  In fact, we held a two-day webinar on this particular topic with two of my friends, Geanine “The College Guru” Thompson and Tim Higgins, CFP (Certified Financial Planner) and author of How to Pay for College Without Sacrificing Your Retirement.  This series is available for purchase by CLICKING HERE.

What should I be doing in such a low-interest rate environment? – Concerned Homeowner

Answer:

This is a GREAT time for disciplined refinancing to free up cash flow or harvest depreciating, trapped equity. (Especially if you have the credit score.)

2 Quick Reasons Why:

#1 Increases your liquidity.  Disciplined refinancing, means you SAVE the free’d up cash flow and NOT SPEND IT.  Remember, CASH is KING which helps you maintain greater financial control by keeping options open.  This IS contrary to traditional wisdom and you may find this disturbing.  But let me ask you a question, how much is that paid off house or $100k of equity stuck in your house doing?  Here’s another one – in an emergency situation, what would you rather have, $300k in equity or $300k in CASH?

Mr. Gardner says in this segment, “Keep it tight.  Keep it real tight.  CASH is KING!”  Perhaps this is a solution for you to consider.

#2 Earn a rate of return.  The Federal Reserve Bank of Chicago in a recent report stated that borrowing at one rate and earning a higher rate is a rather conservative financial strategy called arbitrage.  We interviewed Gene Amromin, PhD and financial economist who co-authored this report titled, “The Tradeoff Between Mortgage Pre-Payments and Tax-Deferred Retirement Savings” You can listen to this interview by visiting this LINK.

Although not a get-rich-quick-idea…this allows the magic of compounding and tax-deductible mortgage interest work in YOUR favor over time…and not the banks.

A financial and mortgage professional tag-team who understands these unique concepts and can articulate the details, can put you back on a solid