You frequently hear people say they love their work, however, most of us don't describe work as being a passion. If you view work as a passion, you're one of the lucky ones, and if you can turn that passion into helping people, you've come full circle.

Eleven years ago Lorie Hagele was looking for a Florida location to relocate to after too many cold snowy years in Chicago. Instead of going back to her native Ft. Meyers, she found Anna Maria Island through an Internet search. The first time she crossed the bridge from the mainland, she could feel herself exhale, knew she was home and never left.

Lorie Hagele has taken her 26 years of experience in the field of hair care and cosmetology and not only started her own business two years ago, but is also using that experience to help people who are less fortunate. Cuts & Color 2 Dye 4 is what Hagele likes to call a "salon studio."

What I like to call it is a mini hair salon with a beachy tropical feel right down to fish swimming on the wall. The whole front wall of the salon is a large glass sliding door which not only completely opens up the pint size space but also lets in volumes of bright light. In addition, the door serves as a handicap access for customers who may require that.

Cuts & Color 2 Dye 4 offers just about any salon service you can think of. Haircuts and color are Hagele's specialty, but she is also a licensed cosmetologist, offering all natural facial peels, skin care, waxing and make up. She has a lot of experience repairing damaged hair and fixing bad cuts. She also can arrange for nails to be done for wedding parties.

In the salon, Hagele uses and also sells John Amico products, which can be found only in salons. Her color line is exclusive Jalyd from Italy, and for cancer survivors she offers organic color.

Typical of someone who loves her work, Hagele turns her salon appointments into a teaching moment to help her customers understand their particular hair and skin challenges. She feels this sets her apart from other stylists and is an extension of her desire to help others.

And when it comes to helping others, Hagele does more than just talk about it. Last year she had a "Hair For Haiti" day, providing discounted haircuts and collecting $1,300. $1,000 was donated to the American Red Cross and $300 to St. Bernard's Church to forward directly to the needy in Haiti.

She also finds time to teach religion to first graders at St. Bernard Catholic Church, works with the American Cancer Society providing skin care and make up for cancer patients, collected hair for Locks of Love and walks the beach for Turtle Watch. She says sometimes it's just the little things that make people feel better.

Cuts & Color 2 Dye 4's customers range in age from 2 to 103 years of age, men women and children. Walk-ins are welcome, and prices are comparable to salons in the area with special savings offered. Hagele would like to thank her loyal Island clients and winter friends for helping Cuts & Color 2 Dye 4 grow during the past two years.

Hagele's passion for Anna Maria Island is almost as strong as her passion for her profession and helping others. Hair with a passion is what you'll find at Cuts & Color 2 Dye 4 from a woman whose passion is boundless.

Cuts & Color 2 Dye 4
5386 Gulf Drive
Holmes Beach
941-565-6022

Monday, Wednesday,
Thursday and Friday:
9:30 a.m. to 5 p.m.

Tuesdays upon request

Saturday: 9 a.m. to 1 p.m.

Cash and personal checks only

Over the years I have written about reverse mortgages two or three times. My conclusion was that a reverse mortgage was not something we recommended, but if the retiree in question needed additional income and had significant equity in his/her home, obtaining a reverse mortgage was not a financial mistake.

The big negative of reverse mortgages in former times was the very high cost of establishing the credit line. Mortgage insurance, origination fees and processing fees could add up to very high levels. Recent changes in the structure of reverse mortgages have allowed these costs to come down, in some cases dramatically.

The largest change is the introduction of a new version of reverse mortgage. It is called the Home Equity Conversion Mortgage Saver Option (or HECM Saver). This newer type of reverse mortgage reduces the amount which can be borrowed against the value of the home by about 10 to 20 percent, but reduces the up-front mortgage insurance charge from about 2 percent to 0.1 percent. Since the mortgage insurance is calculated on the value of the home, not the amount borrowed, this is a huge savings. On a home valued at $300,000, the mortgage insurance charge would now be about $30 instead of $6,000!

It should be noted that borrowers still pay ongoing mortgage insurance charges of about 1.25 percent of the outstanding loan balance on an annual basis. This is one of the primary reasons I recommend using the credit line concept, drawing on the credit available in small amounts as needed, rather than pulling down the entire loan amount up-front.

Lower loan origination fees are also helping. Fees used to be capped by law at $6,000, but lower fees are now common, and consumers should shop around. Keep in mind, a reverse mortgage with lower origination fees may carry a higher interest rate, and you'll have to consider one against the other before making a decision.

How is the structure of a reverse mortgage different than a home equity loan or credit line? The primary difference is that no monthly principal and interest payments are due on a reverse mortgage. Despite their significant fees, they may be a good alternative for retirees who have a lot of value in their homes, but little in the way of securities investments to draw income from.

The money drawn on the credit line accumulates with each draw and the associated interest charges, but no payments are due. When you sell the home, the reverse mortgage credit line must be paid off before any of the remaining house value can be distributed.

Reverse mortgages can only be established on primary residences by owners age 62 or older. The home must be owned free and clear or have a very small mortgage, which can be paid off using the new reverse mortgage. Non-profit counseling services are available in many areas to help with the decision to establish a reverse mortgage. The Department of Housing and Urban Development also has information on reverse mortgages at www.hud.gov. While there are many mortgage underwriters who will issue reverse mortgages, I recommend dealing with a larger, reputable firm. Wells Fargo, MetLife Bank, and Financial Freedom come to mind as places to start your search. All have informative websites, and Wells Fargo has offices in the Bradenton area.

In summary, while reverse mortgages may not be the best financial deal, they have become much less expensive and may be a good alternative for those whose primary wealth is in their home and lack other income sources. One last note, a web search for reverse mortgage will provide a plethora of places to get information, some using the hook of no-fees. As with most things in life, if it sounds too good to be true, 90 percent of the time it usually is. Be careful.

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. Visit www.breitercapital.com.