2016

APRIL NEWSLETTER
Using Your Tax Return Money Wisely
Office pic

Letter from Outreach Director
Teresa Lambarry
 
Happy Tax Month to you:
 
Yes it's that time of year again, where you have to file your taxes and either get money back or have to pay IRS more money than you already have. That was happening to me for the past two years but I have done something about it; and hopefully this time next year, I will be a happy camper because I will be getting money back. I hope so: I so need to polish and varnish the wood floors in my unit.
 
Please read Ed Finkel's feature article in which he has gotten the opinions of two experts in finances who share some of their good tips on how and where to spend or invest our tax return wisely.

Enjoy!

Teresa Lambarry
Board of Directors
Bruce Gottschall
President

Patricia Abrams
Vice-President

Ofelia Navarro
Secretary

Calvin Holmes
Treasurer

Joy Aruguete
Joel Bookman
Eva Brown
Pamela Gecan
Timothy Hughes
Edward H. Jacob
Rosanna Marquez
Robert McGhee
Michelle Morales
Guacolda Reyes
William W. Towns
Marva Williams
Jeffrey Wright

Staff

Irma Morales
Interim Executive Director

Teresa Lambarry,
Outreach Director
CCLT'S Homeowner Tip of the Month
Pay your bills, especially those you owe the government. If you owe any taxes, you don't want to forget about paying because they collect interest and when you finally are ready to pay what you owed the amount might have increased quite a bit.

The government does not forgive a tax debt and will put a lien on your property, which means that when you sell your property or even before you can sell your property, you will have to take care of that debt to the IRS.
Your Ward Information
FIND OUT WHAT IS HAPPENING IN YOUR WARD:
 
Below are links to all the wards in which CCLT homeowners are living.
 
If you don't see your ward, or if your ward has changed, please bring it to my attention. Use the link to access your ward newsletter and find out how to engage in your own community.
 
Upcoming Events

For volunteer opportunities in April, All for Good. 
How Should You Spend Tax Refund Season?
CCLT homeowners, financial advisers share advice, experience and cautionary tales
 
By Ed Finkel 
 
Hot on the heels of income tax season dawns a period of time that some Americans look forward to with checkbooks at the ready and others dream about: tax refund season. But how should those who receive refunds spend them? Or should they spend them in the first place?

CCLT homeowner Susan Gaspar is among those who can only dream. When she gets a refund it's usually more or less equal to what she pays her accountant. "So it's always a total wash for me," she says. "I WISH I had a refund I could use wisely or imaginatively."

Teresa Lambarry, CCLT outreach director, has received refunds in the past and put them toward specific, earmarked purchases like a dining room table, or necessary repairs to her home, which otherwise might not have fit into that year's budget. "I have not had to use any money but my tax return," she says.

CCLT homeowner David Koppel has received refunds and has a very simple, four-word answer for those who ask what he has done or would advise others: "Pay down the mortgage."

What the Pros Know
But what do the professionals think? Andrew Feldman, founder and CEO of AJ Feldman Financial in Chicago, and a certified financial planner, says many of his clients bank their money, but he asks them to consider other scenarios first.

"The biggest thing I focus my clients on is cash flow, savings and paying down debt," he says. That doesn't generally mean the mortgage, or even student loans, "but pay down your 15 percent interest credit card. In theory, you're saving 15 percent" additional by avoiding the interest. "That [high-interest loan] can be the hardest thing to get out of because you have to pay a lot to get [the principal] down."

Daniel Fisher, a registered investment adviser, registered financial consultant and principal with Fisher Financial Group in Northbrook, cautions that those who receive refunds should not think of it as free money or a bonus--remember that it's the government essentially repaying you an interest-free loan. "Getting a tax refund may seem like a bonus or winning a tiny jackpot. But keep in mind that it is money you worked for and earned," he says.

With that in mind, Fisher says, don't splurge on a luxury purchase, buy things you don't need just to blow off steam, or book an over-priced vacation. Instead, he echoes Feldman's comments about paying off high-interest debt--and if you don't have any, consider starting or supplementing an emergency fund, investing in a tax-sheltered account like an IRA, or donating money to charity if you can.

"It's money you earned and should be used as responsibly as any other funds," Fisher says."Just because you want to do something fun, does not mean you have to spend all your refund. ... Remember there are plenty of ways to save on a vacation. Go to a hotel somewhere local, or go out for a nice dinner or see a play."

Few Americans have an adequate emergency fund, he says. "Sock the return away in a high interest savings account and let it just sit there until disaster strikes. This way, the disaster won't wreck your finances--you can just go withdraw the money and it's taken care of."

'Put It in Your Peripheral Vision'
Feldman typically advises those who don't have high-interest loans to save the money, but not just by dropping it into your checking account because--and Fisher seconds this--that's vulnerable to dwindling as you whip out your checkbook.

"It's parking a portion of it toward savings for the longer-term," he says. "Something that wouldn't necessarily be a bank account, but a non-retirement account. I don't want to recommend that you put that money in your IRA if you don't have money anywhere else."

Feldman compares it to what you might do if you found $100 on the street. "I'd like to put it somewhere you don't even know it's there," he says. "If you put it in your peripheral vision, you won't see it and you won't spend it. You'll thank your past self by saving for your future self."

That can mean a small, low-cost savings account with a financial firm like Vanguard or a high interest-rate savings account like the Capital One 360 product.

"You save in your peripheral," Feldman says. "If it's in front of you, you're going to spend it. That's just human nature. If you didn't anticipate this, don't spend it. That's hard for people to do. But saving is the key to savings. That sounds silly and stupid, but it really is that simple."
Current CCLT Property Listings

Andersonville
Resale Unit
UNDER CONTRACT

Loop Area
Resale Unit




        


4814 North Clark Street,
Unit 307, 60640
 
Price: $154,000
Condo 2 bedrooms/2 baths

Please contact: Johnathan Hagen
Phone: 347.470.9189

Gorgeous views - quiet neighbors! Concrete floors and ceilings with floor-to-ceiling windows. Huge master bedroom with large closet and large second bedroom with closet.

Two full bathrooms - master bathroom has two sinks. In-unit laundry (washer and dryer) with dishwasher and microwave.

Large balcony with included grill and patio furniture. Heat is included in assessments, and unit has central air conditioning.

Near Ravenswood Metra, Lawrence red line and Damen brown line stops with two 24-hour bus lines (Clark #22 & Lawrence #81).     

Income and other restrictions apply:
  • Mortgage pre-approval by  CCLT participating lender
     
  • CCLT Homebuyer and Condo training required
Buyer must be income qualified at or below 100% AMI:
Household
Size
Max Income
1 person
$53,900
2 persons
$61,600
3 persons
$69,300

For more information email Teresa Lambarry at
or call her at 312.744.5086.


235 West Van Buren, Unit 1820 

Price: $152,804
Condo 1 bedroom/1 bath 

Please contact:
Nu Van
Phone: 617.595.0478
 
Beautiful condo with great view! 
Located in the Loop close to                       shopping, theaters.

Unit includes stainless steel appliances, granite counter tops and hardwood flooring. New three-acre park under construction adjacent to property. There is an I-Go car 
sharing location or walk to work.
 
Income and other restrictions apply:
  • Mortgage pre-approval by CCLT participating lender
  •  CCLT Homebuyer and Condo training required
Buyer must be income qualified at or below 100% AMI:
 
Household Size
 
Max income
 
1 person
 
$53,900
 
2 persons
 
$61,600

For more information please email Teresa Lambarry at:
or call her at 312.744.5086.

Loop - Resale Unit - UNDER CONTRACT
235 West Van Buren, Unit 2720 Price: $152,960
Contemporary one bed/one bath in the heart of the Loop! Unit features include cherry hardwood floors, updated kitchen with granite counters, 42" cabinets and stainless appliances, central air, in unit washer/dryer, high ceilings and organized closets. Great city skyline views and huge windows allowing for tons of natural light. Full amenity building with 24-hour door staff, on site property manager, bike room, grocery store and cleaners. Close to all public transportation, stores, restaurants and all the Chicago Loop has to offer.

To view please contact: Jodi Slutzky
 
C: 312.927.3326 | F: 312.626.2472
 


Income and other restrictions apply:
*  Mortgage pre-approval with CCLT lender
*  First-time home buyer certification required
*  Condo training certification required
.
For more information contact Teresa Lambarry:
Household Size
 Max income
1 person
$53,900
2 persons
 $61,600
312.744.5086 or email her at :