Daily Intent

 All over the country Americans begin a year of academic pursuit.  Kindergarteners say good bye to preschool naps.  12 year olds say good bye to recess.  18 year olds say good bye to mom and dad and hello to FREEDOM.  And grad students say good bye to “a life”. In light of their efforts, I’ve compiled a Top 10 list for Education thanks to Wikipedia.com:1. The New England Puritans valued education, both for the sake of religious study (which was facilitated by Bible reading) and for the sake of economic success. A 1647 Massachusetts law mandated that every town of 50 or more families support an elementary school and every town of 100 or a grammar school, where boys could learn Latin in preparation for college.

2. In the year 2000, there were 76.6 million students enrolled in schools from kindergarten through graduate schools.

3. Of those enrolled in compulsory education, 5.2 million (10.4 percent) were attending private schools.4. The country has a reading literacy rate at 98% of the population over age 15.

5. According to a 2005 report from the OECD, the United States is tied for first place with Switzerland when it comes to annual spending per student on its public schools, with each of those two countries spending more than $11,000 (in U.S. currency).  National Education Budget: $827 billion(public and private, all levels)

6. Millions each year pour into economic classes expecting Ben Stein from Ferris Buehler’s Day Off.  “Anyone?  Anyone?  Anyone?”

7. The vast majority of students (up to 70 percent) lack the financial resources to pay tuition up front and must rely on student loans and scholarships from their university, the federal government, or a private lender.8. School voucher programs were proposed by free-market advocates seeking competition in education, led by economist Milton Friedman.9. Among the country’s adult population, over 85 percent have completed high school and 27 percent have received a bachelor’s degree or higher.

10. The average salary for college or university graduates is greater than $51,000, exceeding the national average of those without a high school diploma by more than $23,000, according to a 2005 study by the U.S. Census Bureau.

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Compounding Your Knowledge Seminar Series: Continuing Your Education.
Thank you all that attended  the Negotiation Seminar Part II last Monday night.  Sean Mason was once again excellent in developing a new tool set.  “Peeling the Onion”.  I want to remind you all, these are open to any and all.  They are not solely directed at those looking to purchase a home.  The intent is for all to learn.  Call me for more information.
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Buzzword of the week: Coverdell Education Savings Account - ESA

“A type of tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for beneficiaries 18 years or younger. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.

Formerly called an education IRA, the ESA allows families to increase investment earnings through tax-deferral so long as the funds are used for educational purposes.

For example, if you contributed $500 to an ESA and it appreciated to $5,000 in 10 years, the earnings would not be taxed until the account’s owner was enrolled in a post-secondary institution. When the contributions are distributed, they are tax-free assuming that they are less than the account holder’s annual adjusted qualified education expenses.

In the event that the distributions are higher than the expenses, the gains are taxed at the account holders’ rate, rather than the contributor’s rate, which is typically higher.”
-Investopedia

Four points to ponder:

1.  US GDP numbers for the 2nd Quarter revised upward to 3.3%.  Drop in jobless claims.
2.  Kennedy and the Clinton’s roll out the red carpet for Barack’s White House Campaign.
3.   Tropical Storm Gustav has millions in the South preparing for departure.
4.   Phelps completes 8 round sweep.  Bolt’n his way to World Records.  Kobe had beef with the basketball world doubts.  May and Dahlhauser kill the Brazillian beach kings.  Grey lunges his way into the Guinness Book of World Records.

Positives:

•      The weak dollar led to increased imports; the government’s $80Bn in handouts provided impetus to spending; oil prices continued their trends downward.  All aided in a 200pt market rally Thursday.
•         The extensive press coverage of the Democratic Convention coupled with the attacking ads by the McCain campaign are leading us into an unforgettable November.  If you would like a breakdown of the presidential candidates economics and their impacts, please let me know.
•          China played host to one of the most memorable Olympics of all time.  Beijing’s smog disappeared like World Records.  My mourning of their completion is soothed by the beginning of college football!
• Dr. Grey.  My hat goes off to you.  You destroyed the record by 3 minutes!

Negatives:

•      High GDP numbers aren’t expected to continue as we’ve passed through the period of government rebates.  Companies continue their struggles.  Prime, aka low risk borrowers, are expected to be the next group to really suffer from the credit crunch and over extended real estate purchases and maxed out credit cards.
•      Many families are struggling to afford back-to-school supplies.  If you’d like a channel to help these families, please let me know. 
•      Any storm in route to the South, will forever keep us on edge after Hurricane Katrina and its dramatics. Services: Ease of ProcessHave great faith I make every action to put you at ease during your home loan process.  It starts with our first consultation, and extends far beyond the closure of your loan.  Customer service for life.  You deserve both competitive rates and a lender working hard for your needs.Local:Pier to Peak Half Maration!
  Where: Stearns Wharf
  When: Sunday, August 31 at 6:30am.
  Fee: $100.  RunSantaBarbara.com
  Why:  4000 foot climb Half Marathon!
  How: Running, walking, crawling…hitch a ride.Live and Be Well,Jeff Bochsler