When it comes to our financial futures, it is often times easy to build a goal while overlooking the critical first step. In a recent article by Andy Andersohn, he says that a vast majority of people when planning for the future typically overlook the planning process itself.

Just the process of doing an inventory of one’s financial assets, making a complete listing of the assets and liabilities to construct a basic balance sheet is a good place to start. Many times the balance sheet inventory creation will uncover assets long forgotten. The newfound assets may include old retirement plans, savings bonds, appreciated coins or stamps, and a litany of other mothballed financial resources.

Recently a friend conducted a financial inventory and discovered that limited prints they had purchased over 15 years ago had now appreciated over 800%. Would they continue to grow in value? They didn’t know but this alerted them to get their home owners insurance updated. They also started looking at ways to liquidate some of the prints and invest the proceeds in more liquid assets while continuing to enjoy their remaining favorites.

In another example, a former engineer at a company that manufactured telephones had accumulated prototype phones that, with his employer’s approval, he had been taking home for years and storing in his basement. Had he not rescued them from the scrap pile they would have been destroyed. In doing his financial inventory, he became motivated to see if the former prototype phones had any value. He was surprised to learn that they were worth up to several thousand dollars each. So as to not flood the market he began a systematic marketing program by selling one every two or more months on EBay. It may take him several years to turn his “scrap” phones into a significant increase to his retirement assets.

Another couple who started the financial planning process recalled receiving a box of coins over 10 years ago from the husband’s long deceased uncle. The coins were inventoried and sold for enough to fund both their Roth IRA’s for two years.

Conducting a reasonably thorough review of the last several years’ tax returns helps in understanding sources of income and sometimes uncovers surprise assets as well. Many assets produce clues in the way of tax reports, such as 1099s.

The sad reality is that most Americans spend more time planning their vacations that their financial future. This is all too true as pointed out in a recent discussion with a couple making a one week Alaskan cruise. They had spent the better part of a month weighing their options on available daily side trips as the cruise ship sailed from Vancouver, BC to Anchorage and back. Yet upon questioning they didn’t have a good idea as to where their 401k contributions were being invested or if they contributed enough to receive the maximum companies match.

Beginning the financial planning process now; take the first step and you will be far ahead of most people as the planning process is typically overlooked until it is too late.

The entire article can be read by clicking here.

A government report is predicting that there will be 2 million foreclosures by 2009. This is expected to produce serious effects across the country, reports Investment News:

“The current tidal wave of foreclosures will soon turn into a tsunami of losses and debt for families and communities,” said Sen. Schumer, according to a statement.

RISMedia reports that many are mobilizing to try and fix the mess caused by subprime lending practices:

Lawmakers and the White House have proposed a slew of policies to deal with the worsening subprime problem, and Treasury Secretary Henry Paulson has called housing the biggest risk to the U.S. economy. Paulson recently called for more loan servicers to modify their terms with borrowers in an effort to help families stay in their houses.

But if you want to avoid foreclosure, it is time to start planning now. Your options may be limited, and this could cause you problems in a variety of financial areas. Talk to your mortgage lender about the possibilities for your home mortgage at least six months ahead of the reset date.

Also, realize that new legislation, including a predatory lending bill and changes to FHA loans, you may have to make changes as well, in terms of adjusting your budget in order to cut expenses and make more room for higher mortgage payments.

Losing a home to foreclosure is not a fun prospect, and if you have an adjustable rate mortgage, including a subprime mortgage, now is the time to start planning ahead. You might be able to refinance to a fixed rate if your home has enough equity and your credit score is high enough. Or, if you give yourself enough time, you might be able to sell your home, or downsize and find renters who can foot the mortgage payments.

No matter what you do, though, if you want to avoid foreclosure, it is time to start making plans.

Foreclosure and pre-foreclosure properties are often a great deal for homebuyers and a particularly profitable opportunity for investors. Now more than ever, nicer and nicer properties are being auctioned off as foreclosure rates skyrocket across all economic levels. Any homebuyer considering perusing the foreclosure offerings will want to keep on their toes and look at several sources to find the best deal.

Public Records: The county clerk or county recorder’s office keeps a record of all notices sent to homeowners during the foreclosure process. It is free to visit the office and search the public records for notices of default, Lis Pendens and notices of sale. This route may also help a person stay a step ahead of the foreclosure announcements made to the general public. It is the ideal option for anyone thinking of making a pre-foreclosure offer.

Internet: There are plenty of web sites that list foreclosure offerings. These are typically a vast national or regional database and offer free trials that allow users to determine whether the service is right for them. The information found here usually includes name, address, amount left on the loan, any additional loans outstanding and possibly a contact phone number as well.

Newspapers: Check for notices of foreclosure sales in the newspaper’s classified section. Publication of these notices is required by law.

Asset Management Companies: These companies assist banks in selling property that has been foreclosed upon. Check their web sites for more information on listings and contact details.

Government Agencies: From HUD to the U.S. Army Corps of Engineers, there are plenty of government sites listing foreclosure property and details like any plumbing or pest problems.

For a fairly comprehensive list of government listing web sites, asset management companies’ web sites, etc., click here.