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- The Borrow Smart Chronicles - The 3-Sided Balance Sheet
““There is nothing either good or bad,
but thinking makes it so””
Weekly Spotlight:
The Three-Sided Balance Sheet
One of our key concepts in liability management has to do with the most neglected area of the clients’s wealth—the house. Financial advisors are mandated in their profession to manage assets for their clients; it is a long-term relationship. Lenders have no mandate to help manage lending liabilities, which makes a long-term relationship less likely and minimizes their potential client impact. The house is the intersection of assets and liabilities. It is the third side of the balance sheet. It is where 82% of Americans have the majority of their wealth, and yet realtors, as an industry group, have no mandate or training to focus on house wealth. This is where we see the biggest area of growth for our profession as a whole: this integration of assets and liabilities and the house as part of the overall wealth creation possible. It is where lenders, realtors, and advisors can work together to be more than the sum of the parts.
a MONEY SMART CONCEPT
Teach and Learn About Money
We partnered with Savology to create a national program of self-awareness around money and finance for lenders, realtors, and their clients. We’ve purchased a national license, so you can benefit too. This program is normally $6 per month, but you can access it free using the link below.
 NIFE / SAVOLOGY | SAVOLOGY Create an account and take the quiz to see how you score. You’ll get free recommendations, and you can click to get the full suite of products for free if you are interested. |
LIABILITIES
What’s Happening?
A great chart: @michaelkitces
1) Housing is essential and the largest expense to be managed in retirement.
2) There are essential and discretionary considerations in retirement, but living indoors (housing) is not discretionary for most people.
This is a key point of entry to engage advisors in real conversations.
is that all there is to a fire?
we’ll see, but this is how new fires start…
future bank failures lead to more money (stimulus) and lower rates (more stimulus)
there is a lot of meat on the housing equity bone to support retirement, and most Americans will need that if longevity gets exponential.
REAL ESTATE
What’s Happening?
not talked about enough, inventory is coming if you can wait long enough.
owning it free and clear is the new location, location, location
people are still sad about their housing dreams
as housing buying conditions are still as poor relative to prior history, yet we are living in an exponential age of well-being that is often overlooked
“This is the real secret of life — to be completely engaged with what you are doing in the here and now. And instead of calling it work, realize it is play””
ASSETS
What’s Happening?
consumer at one end or fragile
those with savings are less fragile
those who understand almost all returns in the stock market have come when interest rates are going down, are doing pretty well - lenders know this better than most
“Gratitude turns what we have into enough.”
ON BEING HUMAN
What’s Worth Sharing?
33 lessons every father must teach his son:
1. Do not gloat in victory.
Everyone already knows you have won. Gloating turns defeated opponents into lifelong enemies. Being gracious in victory creates lifelong friends.
Point out something they did well, and ask how they did it.
— Foundation Father | M.A. Franklin (@FoundationDads)
2:12 PM • Nov 20, 2023
DOPAMEMES
And Other Inspirations…
maybe the ultimate Venn diagram
For every polar bear who strikes it rich in soft drink advertising, there are dozens back home in the Arctic living in dilapidated housing.
Source: @thinkwert
AIdeas
Future Hacks…
A favorite AI tool for quick logos and graphics:
TOME - https://tome.app/
Create powerful presentations and whiteboards for interesting conversations.
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