The Carrot, what does that mean? Well I got a call from a good friend of mine who is currently looking to buy a house. The interest rate they gave him was 4.65% with a 1/2 a point. That is a good rate but then they said "Hey, we could give you an 7/1 ARM with a rate of 3.75%". Wow, that is a full point lower. Who wouldn't want that? That bank they are really nice. But are they?

Now that you have that "Carrot" in front of you why not take the savings. Well in my opinion the only way you should take that is if you plan on selling your house within 7 years or you can use that saved money in a much more lucrative investment. Maybe your income is low at this time but you are betting that it will increase a good portion over the next few years. The rates are so low today one would believe as the economy recovers over the next year or so the rates will only increase. When it comes time to refinance after seven years or take their new adjusted rate you are most likely going to erase the savings from such a low rate today.

The bank did not volunteer what the new rate would be; prime +2, prime +5. He had to ask them. It is the old adage that if it is to good to be true then it is. Needless to say my friend made what I feel to be the correct decision and took the 4.65%.

It is a tough thing to balance being the CFO of a company, a Financial Planner and have a Family. I don't mean the time constraints because that isn't it. It is how to balance your mental state of mind because frankly all three have different mind sets. As CFO my role is to be the captain of a company and guide it through the tough financial waters of today's financial climate. As a Financial Planner your role is to be the first mate and help the captain sail those waters. As a family man you are both but yet I need to be skeptical of a CFO or a Financial Planner.

Do they both have my best interest in mind. Being all three I have to ask myself as a family man would I respect what my CFO self or Financial Planner self recommends? There are a lot of unscrupulous CFO's and Financial Planners out there looking to pad their bottom line. Thankfully I have that Family man inside of me to ground all three and do the right thing. There is no better feeling then knowing you helped a family out and put them on the right track. The same track I would want my family on.