Getting a Degree of Financial Security

June 14, 2021

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Rich & Kristina Messenger

Rich & Kristina Messenger

Senior Vice President



McKinney, TX

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June 14, 2021

Getting a Degree of Financial Security

Getting a Degree of Financial Security

The financial advantage gap between having a college degree and just having a high school diploma is widening!

As of 2019, the average college graduate earned 75% more than the average high school graduate.¹ When you crunch the numbers, it’s actually a more robust investment than stocks or bonds.

This income difference is making saving for retirement difficult for millennials without a college degree. According to the Young Invincibles’ 2017 ‘Financial Health of Young America’ study, millennial college grads – even with roadblocks like student debt – have saved nearly $21,000 for retirement.² That’s quite a lot more as compared to the amount saved by those with a high school diploma only: under $8,000.

However, a college grad may encounter a different type of retirement savings roadblock than a reduced income – student loan debt. But the numbers show that even with student loan debt, the advantages of having a college degree and a solid financial strategy outweigh the retirement saving power of not having a college degree.

Here’s an issue plaguing both groups: more than two-thirds of all millennial workers surveyed do not have a specific retirement plan in place at all.³

Regardless of your level of education or your level of income, you can save for your retirement – and take steps toward your financial independence. Or maybe even finance a college education for yourself or a loved one down the road.

The first step to making the most of what you do have is meeting with a financial advisor who can help put you on the path to a solid financial strategy. Contact me today. Let’s get your money working for you.

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¹ “College grads earn $30,000 a year more than people with just a high school degree,” Anna Bahney, CNN, Jun 6, 2019, https://www.cnn.com/2019/06/06/success/college-worth-it/index.html

² “Financial Health of Young America: Measuring Generational Declines between Baby Boomers & Millennials,” Tom Allison, Young Invincibles, Jan 2017, http://younginvincibles.org/wp-content/uploads/2017/04/FHYA-Final2017-1-1.pdf

³ “Retirement Plan Access and Participation Across Generations,” Pew, Feb 15, 2017, http://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2017/02/retirement-plan-access-and-participation-across-generations

June 9, 2021

Mortgage Protection: One Less Thing To Worry About

Mortgage Protection: One Less Thing To Worry About

How many things do you worry – er, think – about, each day? 25? 50? 99?

Here’s an opportunity to check at least one of those off your list. Read on…

Think back to when you were involved in the loan process for your home. Chances are good that at some point during those meetings, a smiling salesperson mentioned “mortgage protection”.

With so many other terms flying around during the conversation, like “PMI” and “APRs”, and so much money already committed to the mortgage itself – and the home insurance, and the new furniture you would need – you might have passed on mortgage protection.

You had (and hopefully still have) a steady job and a life insurance policy in place, so why would you need additional protection? What could go wrong?

Before we answer that, let’s clear up some confusion.

Mortgage Protection Insurance is not PMI.
These two terms are often used interchangeably, but they are not the same thing.

Both Private Mortgage Insurance (PMI) and Mortgage Protection are insurance, but they do different things. PMI is a requirement for certain loans because it protects the lender if your home is lost to foreclosure.

Essentially, with PMI you’re buying insurance for your lender if they determine your loan is more risky than average (for example, if you put less than 20% down on your home and your credit score is low).

Mortgage protection, on the other hand, is insurance for you and your family – not your lender.

There are several types of mortgage protection, but generally you can count on it to protect you in the following ways:

  • Pay your mortgage if you lose your job
  • Pay your mortgage if you become disabled
  • Pay off your mortgage if you die

Say, That Sounds Like Life Insurance.
Not exactly. Mortgage protection actually can cover more situations than a life policy would cover. Life insurance won’t help if you lose your job and it won’t help if you become disabled. Mortgage protection bundles all these protections into one policy – so you don’t need multiple policies to cover all the problems that could make it difficult to pay your mortgage each month. (Hint: A life insurance policy would be a different part of your overall financial plan and often has its own separate goals.)

How Does Mortgage Protection Work?
A mortgage protection policy is usually a “guaranteed issue” policy, meaning that many of the roadblocks to purchasing a life insurance policy, such as health considerations and exams, wouldn’t be there.

If you lose your job or become disabled, your policy will pay your mortgage for a limited amount of time, giving you the opportunity to find work or to make a backup plan. Again, your house is saved, your family still has a roof over their heads, and you’re a hero for thinking ahead. Accidents happen and people lose their jobs every day. Mortgage protection is there to catch you if you fall.

One More Thing…

A mortgage protection policy is a term policy, so you don’t need to keep paying premiums after your house is paid off.

Now that you know a little bit more about mortgage protection policies, have those 99 worries ticked down to 98? Reaching out to me for guidance on your financial worries could help you make that number smaller and smaller… 97… 96… 95…

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June 2, 2021

Don't Panic: What You Need To Know For Your Life Insurance Medical Exam

Don't Panic: What You Need To Know For Your Life Insurance Medical Exam

I don’t know about you, but most people don’t like exams – either taking one or having one done to them.

But there’s no need to panic over your life insurance medical exam (yes, you’re probably going to have one). I’ve got some steps you can take before the “big day” to help prevent readings which may skew your test results or create unnecessary confusion.

One important thing to keep in mind is that the exam’s purpose isn’t to pass or fail you based on your health. Your insurer just needs to understand the big picture so they can assign an accurate rating. Oftentimes, the news can be better than expected, and generally good health is rewarded with a lower rate. Alternatively, the exam might uncover something that needs attention, like high cholesterol. That might be something good to know so you can make necessary lifestyle changes.

Think of your exam as a big-picture view. Your insurer will measure several key aspects of your health. These areas help determine your life insurance class, which is simply a group of people with similar overall health characteristics.

Your insurer will most likely look at:

  • Height and weight
  • Pulse/blood pressure tests
  • Blood test
  • Urine test

Tests can indicate glucose levels, blood pressure levels, and the presence of nicotine or other substances. Body Mass Index (BMI) – a measurement of overall fitness in regard to weight – may also be measured as part of your life insurance exam.

So let’s find out what you can do to prepare for your exam!

The most obvious cause that could affect your results is medications you’ve taken recently. These will probably show up in your blood tests. Bring a list of any prescription medications you’re taking so your insurer can match those to the blood analysis.

Over the counter meds can interfere with test results and create inaccurate readings too, so it might be best to avoid them for 24 hours prior to your medical exam if possible. Caffeine can cause spikes in blood pressure.¹ Limit your caffeine intake or avoid it altogether, if possible, for 48 hours prior to your exam. Smoking can elevate blood pressure as well.²

Alcohol has a similar effect on blood pressure. Try to avoid alcohol for 48 hours prior to taking your life insurance medical exam.³ Some types of exercise can also spike blood pressure readings temporarily.⁴ If you can, avoid strenuous exercise for 24 hours before your medical exam.

Some types of foods can create false readings or temporarily raise cholesterol levels.⁵ It’s best to avoid eating for 12 hours prior to your exam, giving your body time to clear temporary effects. Scheduling your exam for the morning makes this easier.

Stress can affect blood pressure readings.⁶ (Surprise, surprise.) Try to schedule your life insurance medical exam for a time when you’ll be less stressed. After work might not be the best time, but maybe after a good night’s rest would be better.

Have any further questions on how you can prepare for your exam? I’m here to help!

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¹ “Caffeine: How does it affect blood pressure?,” Sheldon G. Sheps, M.D., Mayo Clinic, Jan, 26, 2019, https://www.mayoclinic.org/diseases-conditions/high-blood-pressure/expert-answers/blood-pressure/faq-20058543

² “Smoking, High Blood Pressure and Your Health,” American Heart Association, Oct 31, 2016, https://www.heart.org/en/health-topics/high-blood-pressure/changes-you-can-make-to-manage-high-blood-pressure/smoking-high-blood-pressure-and-your-health#.Wrz8uNPwZTZ

³ “Short-term Negative Effects Of Alcohol Consumption,” BACtrack, https://www.bactrack.com/blogs/expert-center/35042501-short-term-negative-effects-of-alcohol-consumption

⁴ “Does Exercise Raise Blood Pressure?,” Barrett Barlowe, SportsRec, Nov 28, 2018, https://www.sportsrec.com/6277164/does-exercise-raise-blood-pressure

⁵ “How to Prep for a Cholesterol Test,” Vanessa Caceres, Livestrong.com, Apr 29, 2020 https://www.livestrong.com/article/326114-what-not-to-eat-before-cholesterol-check/

⁶ “Managing Stress to Control High Blood Pressure,” American Heart Association, Oct 31, 2016, https://www.heart.org/en/health-topics/high-blood-pressure/changes-you-can-make-to-manage-high-blood-pressure/managing-stress-to-control-high-blood-pressure#.Wr0OsdPwZTY

May 19, 2021

The Advantages of Survivorship Insurance

The Advantages of Survivorship Insurance

A survivorship policy pays out only after two people pass away.

Why does that matter? For many families, it doesn’t. They need more traditional forms of life insurance that protect income for their spouses and children.

But there are specific situations where survivorship insurance might be critical for your legacy. Read on for the advantages of survivorship insurance!

First, survivorship insurance can be an invaluable tool for estate planning. If one spouse dies, they can pass their assets to their spouse without facing federal estate taxes.¹ Not so for wealth left to future generations! For some couples with substantial assets to pass on to children, survivorship can leave a sizable death benefit that can offset the cost of estate taxes.²

If this strategy appeals to you, reach out to an attorney and a financial professional. You’ll need their help to get your estate in order and navigate your state’s tax system.

Second, survivorship insurance can cover ailing or elderly couples. As a rule of thumb, survivorship insurance is a good option for those who don’t qualify for term or permanent life insurance due to health or age. That’s because the rates are based on two life expectancies, potentially lowering rates and increasing your likelihood of qualifying.³ This is especially useful if the couple has children who are still dependents or will need special care.

In conclusion, survivorship insurance can be a powerful tool for specific people in specific situations. That’s why it’s best to collaborate with legal and financial professionals to make a decision that will be right for you and your family.

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¹ “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

² “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

³ “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

April 28, 2021

The Power of Reading

The Power of Reading

Reading regularly is one of the most important disciplines you can have in life.

Practically, it’s almost impossible to function in the modern world without being able to read. But there’s a far deeper benefit to regular reading. Just ask Bill Gates—he reads 50 books per year! Why? Because “You don’t really start getting old until you stop learning… Reading fuels a sense of curiosity about the world, which I think helped drive me forward in my career.”¹

That’s high praise! Let’s explore the benefits of consistent, disciplined reading.

First, reading is quite literally good for your brain. Studies have demonstrated that even reading fiction strengthens brain connections, reduces your risk for mental ailments like depression, and brain diseases like Alzheimer’s.² So if you want your brain to thrive, grab a book, even if it’s a light-hearted novel, and start reading!

Second, reading can improve your quality of life. As mentioned earlier, reading can combat mental health issues like depression. But studies seem to suggest that reading fiction can also improve qualities like empathy.³ After all, novels can offer explorations of the human experience. Reading about how others feel and live, even if they’re invented, can broaden your emotional horizons and encourage you to reflect on your own feelings. It also exposes you to new information and new ideas that can enrich your perspective. It’s an introduction to a virtually limitless world of knowledge and experiences.

The takeaway? Make a habit out of reading! There’s no shame in what you read, whether it’s a fantasy series, a Jane Austen novel, or philosophy essay! Start a book club with some friends and discuss what you read. You may be surprised by the benefits you experience.

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¹ “Bill Gates Discusses His Lifelong Love for Books and Reading,” Claire Howorth and Samuel P. Jacobs, Time, May 22, 2017, https://time.com/4786837/bill-gates-books-reading/

² “Benefits of Reading Books: How It Can Positively Affect Your Life,” Rebecca Joy Stanborough, MFA, Healthline, Oct. 15, 2019, https://www.healthline.com/health/benefits-of-reading-books

³ “How Reading Fiction Increases Empathy And Encourages Understanding,” Megan Schmidt, Discover Magazine, Aug 28, 2020, https://www.discovermagazine.com/mind/how-reading-fiction-increases-empathy-and-encourages-understanding

April 21, 2021

5 Challenges for Entrepreneurs

5 Challenges for Entrepreneurs

Starting a business can be an exhilarating experience.

It may seem like the next logical step for someone who’s looking to grow and develop their career. But before you take that leap, it’s smart to consider the pros and cons involved with entrepreneurship. In this article we’ll explore five things that budding entrepreneurs should think about before starting a new business venture!

The first thing to consider? Startup cost. Depending on your idea, take some time to research what equipment or things will be necessary for getting started. Every penny counts. For example, if you’re opening an ice cream shop— which may seem simple enough—you’ll need freezers, scoopers, a storefront, and, of course, ice cream. That’s a lot of upfront investment for a little ice cream shop!

The second thing to consider is competition. It’s wise to research what types of businesses already exist in your space before jumping into entrepreneurship. For example, what if there are five dog parks within a couple of miles from where you live and you want to open up a sixth? This may be fine if there’s a large population of dog owners in your area. But unless you’ve got a unique idea or innovation that will blow your competition out of the water, you may want to consider another type of business or a different location to get started.

The third thing to consider is customer acquisition. How will you reach your customers? Do you know your exact market, their needs, desires, and insecurities? What’s the strategy for getting them in and keeping their business over time, even if there are competitors nearby with similar products/services?

At first, you might be able to rely on your friends and family as your first customers. But eventually, you’ll need to develop a marketing and brand strategy to acquire and keep new customers.

The fourth consideration should be building product inventory. If you’re producing goods, do your finances allow for significant inventory investment? What if it’s a service-based business—will customers need to wait weeks or months before they receive the first round of services from their purchase with no cash flow in between?

When you first open, stock your business with every service or product you can possibly offer. Then, track which ones seem most popular and how much they sell. Then, start building inventory accordingly. You may need to scrap the services or products that aren’t making you money.

Finally, think about compliance with legal standards. Some industries are regulated in ways that you may not anticipate. Food and beverage businesses need to follow health codes. Construction contractors must be bonded for their work on public projects like schools. And the financial industry is heavily regulated to protect clients. Whatever your industry, make sure you understand the legal requirements you’ll be asked to meet as a business owner.

There’s more to starting a business than excitement and glamour. It’s hard work that requires careful research and diligent preparation. Tackle these considerations before you start so you can lay the foundation for your business’s future success.

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March 31, 2021

Leadership: 4 Ways to Inspire and Engage

Leadership: 4 Ways to Inspire and Engage

Leaders are often the ones who both create and maintain a positive work environment.

But that’s far easier said than done. It can feel like the success of your entire team falls squarely on your shoulders. That can create stress. Lots of it. And that can make it difficult to create a positive atmosphere in your workspace.

But there are some simple practices that can help foster a healthy and happy work environment. Here are a few!

Be an active listener. Don’t just hear what someone says. Focus, engage, and show interest in what is being said while asking questions. Showing that you’re listening will make others feel better about themselves and force you to take more seriously what they’re saying. It helps you get to know people on a deeper level—you’ll know exactly how best to talk with someone during your next interaction!

Ask your team for input. Your team is made up of people with many backgrounds and ideas. That’s why you need to make it a practice to ask your teammates or friends for input when coming up with a new idea. You won’t just discover possibilities that you had never thought of—workers will feel like they’re truly integrated into the team when you get their perspectives.

Give credit where it’s due. When you see an employee doing a great job, speak up! Recognize their work and let them know they’re appreciated. It will inspire the team and motivate your employees to keep striving for excellence.

Be mindful of your mood. Mindfulness is a difficult skill to master—but it can yield big results! Being aware of how you are feeling and being present in the moment is always beneficial. This one may not be easy, but with practice, mindfulness can help you respond wisely to difficult situations when they arise. Instead of getting lost in emotion-driven reactions, try monitoring your mental state and notice when you’re feeling tense—this will empower you to take productive action instead of giving way to more stress. It’s a critical ability that all leaders should invest in!

These tips aren’t just for CEOs or managers. Anyone can develop these skills and start to make their work environment a more positive place. They might be the edge you need to make difference in your company and stand out from the crowd.

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March 29, 2021

Personal Finance Moves For Small Business Owners

Personal Finance Moves For Small Business Owners

As a small business owner, you’re responsible for everything—from saving on office supplies to making sure folks get paid to knowing what taxes to file and when.

A big part of success is educating yourself on how your personal finances affect your business and vice versa. Here are a few moves that can help keep your personal finances healthy while you grow your business.

Keep track of your monthly income and expenses. Your business income can vary dramatically from month to month, depending on the season, number of sales, trends in your market, etc. These could potentially cause your average bottom line to be lower than anticipated.

That’s why it’s critical to track your monthly income and then budget accordingly. As your income grows and shrinks, you can adjust your spending.

Set up an emergency fund. This money can be used to cover unexpected costs, such as unanticipated repairs or an illness. But, when you own a business, it can also help you make ends meet if business is slow or, say, if a global pandemic shuts down the world economy. Save up 6 months’ worth of spending in an account you can easily access in a pinch!

Know what you owe, to whom, and when it is due. Personal debt can be a serious challenge for small business owners. It may motivate them to make foolish financial decisions to pay off what they owe, regardless of the consequences.

That’s why it’s important to manage your finances responsibly so that debt doesn’t become a problem. Adopt a debt management strategy to reduce your debt ASAP. Your business may benefit greatly from it.

Get professional advice if you need help with your finances. If it’s at all feasible for your business’s budget, get a professional set of eyes on your books. They’ll help you navigate the world of finances, share strategies that can help make the most of your revenue, and show you how to position yourself for future success!

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March 10, 2021

How to Reduce Debt

How to Reduce Debt

Paying off debt can be a great feeling.

The burden is lifted and you have more control over your financial situation. If you’re like many, however, paying down debt hasn’t been an easy task due to high interest rates and the sheer size of what you owe. Many people find themselves in situations where they feel helpless. But following some tips from this article can show you a path towards financial health!

Start by making a budget. Write down your income on a piece of paper or spreadsheet. Then, calculate how much you spend, on average, every month. If you can, categorize all of your expenses in order of amount spent. Be sure to also rank your debts from highest to lowest interest rate!

Then, subtract your expenses from your income. The result is how much cash flow you have available to attack your debt.

But before you start chipping away at what you owe, devote your cash flow to building an emergency fund. Why? Because it will provide a cash reserve to pay for unexpected expenses that you might otherwise cover with more debt!

Then, focus all your financial resources on your highest interest loan. Make minimum payments on all your debts until that top priority debt is eliminated. Next, move on to the next debt. Rinse and repeat until you’re debt free.

Track your spending and cut back where possible. When you budget, you might find that you have almost no cash flow. If that’s the case, you’ll need to reduce your spending. Start by cutting back on categories like clothes shopping and dining out.

Above all, be consistent! Reducing debt is no easy task but it’s doable. Cutting back on your spending and consistently budgeting may not be easy in the short-term, but the sense of relief that comes with being debt free is well worth the effort.

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March 3, 2021

Tips to Combat Burnout

Tips to Combat Burnout

Does work have you down? Do you feel so constantly overwhelmed by deadlines or conflict that you’ve started to emotionally withdraw?

Then you might be facing burnout. It’s a condition that results in uncertainty and stress in a work environment or position. All of that pressure can result in excessive cynicism, poor performance, and a lack of energy.

If any of those sound like you or a loved one, read on for some simple tips and strategies that can help combat burnout.

Seek support and help. If you’re feeling overwhelmed by workplace stress, let someone know! Talking to someone about your feelings is always a wise move. Your friends and colleagues may be more likely to respond with trust and support than you anticipate. Consider also meeting with a qualified mental health professional to better understand your burnout and learn healthy coping mechanisms.

Exercise. If you’re physically able, schedule a daily or weekly workout into your regular routine. Why? Because there’s no simpler way to combat burnout than regular exercise. It’s been proven to combat anxiety, alleviate depression, and increase positive emotions.¹

Don’t be too hard on yourself at first—it may be challenging to motivate yourself if you’re combatting intense burnout. But try an exercise routine for a few weeks and then see how you feel. You may be surprised by the difference it makes!

Make a change. What’s something that causes you consistent stress that you can handle differently? If you’re burned out, it’s a serious indication that something must change. Simply “trying harder” or “toughening up” may lead to more frustration and emotional withdrawal.

Be honest with yourself. Are there changes you need to make in your mindset or do you need to seek a new job? What can you do differently when faced with chaos or urgent deadlines? Don’t settle for making the same mistake over and over. Identify a cause of stress, and tackle it from a new angle!

As said earlier, don’t be afraid to seek professional help if you’re facing serious burnout symptoms. These tips may help you combat burnout. But if they aren’t enough, working with a mental health expert may be what you need to recover and find peace of mind.

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¹ “Exercise for Mental Health,” Ashish Sharma, M.D., Vishal Madaan, M.D., and Frederick D. Petty, M.D., Ph.D., Primary Care Companion to the Journal of Clinical Psychiatry, 2006, 3https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1470658/#:~:text=Exercise%20improves%20mental%20health%20by,self%2Desteem%20and%20cognitive%20function.&text=Exercise%20has%20also%20been%20found,self%2Desteem%20and%20social%20withdrawal.

February 3, 2021

Strategies for Coping With Medical Bills

Strategies for Coping With Medical Bills

What’s your strategy for paying medical bills?

It’s a question anyone serious about protecting their finances must answer. Afterall, medical expenses are the number one cause of bankruptcy in the country.¹

But there are resources at your disposal. Read on for some strategies to help you lighten the financial burden of medical bills.

Review your bill for mistakes. Somewhere between 30% to 80% of medical bills contain errors.² Check every bill you receive for any mistakes and report them immediately. You don’t need to pay for medical services you didn’t use!

Negotiate a payment plan. The scary price tag on your medical bill isn’t always final. Hospitals are sometimes willing to negotiate a lower cost if they’re aware of your financial situation. Contact your healthcare provider and inform them if you’ll struggle to pay the sticker price. Then, ask for price alternatives or for a more lenient payment plan.

Avoid using credit cards for medical bills, if possible. Using credit cards to cover medical bills can be a critical blunder. Instead of paying a low interest–or maybe no interest–bill to a hospital, you may end up making high-interest payments to your credit card company.

Whenever possible, use cash to pay for medical expenses. That may mean cutting on vacations, not dining out, and holding off on purchasing new clothes until the bill is settled. (Hint: A great reason to keep an emergency fund is to pay unexpected medical bills.)

If none of these strategies make a dent in your medical expenses, consider reaching out to a professional for help. Hospitals and insurance companies sometimes have case workers who can point you towards programs, organizations, and agencies who may be able to help provide some financial relief.

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¹ “Top 5 Reasons Why People Go Bankrupt,” Mark P. Cussen, Investopedia, Feb 24, 2020, https://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx

² “Over 20 Woeful Medical Billing Error Statistics,” Matt Moneypenny, Etactics, Oct 20, 2020, https://etactics.com/blog/medical-billing-error-statistics#:~:text=80%25%20of%20all%20medical%20bills%20contain%20errors.&text=Some%20experts%20across%20the%20web,between%2030%25%20and%2040%25.

January 6, 2021

Bridging the Retirement Gap

Bridging the Retirement Gap

If you’re already eyeing the perfect recliner for your retirement, hold that thought. And you might want to start rifling through the ol’ couch cushions for a little extra change…

Here’s a doozy: women age 65 and older are 80% more likely to be impoverished than men of the same age.¹

That number represents a staggering degree of human tragedy. But there’s a sad logic to it when you consider that women save 43% less for retirement than their male counterparts.¹

But that’s not all. According to the 2016 Financial Finesse Gender Gap in Financial Wellness Report, to retire at age 65 (without a career break):

  • Men need $1,559,480.
  • Women need $1,717,779.

Women have to come up with $158,299 more! This increase is due to the unique set of circumstances women face while preparing for retirement:

  • Women live longer
  • Women pay more for healthcare

To summarize, women all too often aren’t in a position to save as much as men, even though they need more to sustain their retirements. The tragic result is that many spend their retirements in poverty instead of living out their dreams.

But that doesn’t have to be your story. The savings gap may seem huge, but it can be bridged. And it all starts with a solid insurance strategy. Just think of it as pulling the footrest lever on your dream retirement recliner!

Your unique situation and goals all factor into how you want to kick back when you retire. I’m here to help. When you have a moment, give me a call or shoot me an email.

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December 30, 2020

The Millennials Are Coming, the Millennials Are Coming!

The Millennials Are Coming, the Millennials Are Coming!

Didn’t do so well in history at school? No worries.

Here’s an historical fact that’s easy to remember. Millennials are the largest generation in the US. Ever. Even larger than the Baby Boomers. Those born between the years 1980 to 2000 number over 92M.¹ That dwarfs Generation X at 61M.

When you’re talking about nearly a third of the population of the United States, it would seem that anything related to this group is going to have an effect on the rest of the population and the future.

Here are a few examples:

  • Millennials prefer to get married a bit later than their parents. (Will they also delay having children?)
  • Millennials prefer car sharing vs. car ownership. (What does this mean for the auto industry? For the environment?)
  • Millennials have an affinity for technology and information. (What “traditional ways of doing things” might fall by the wayside?)
  • Millennials are big on health and wellness. (Will this generation live longer than previous ones?)

It’s interesting to speculate and predict what may occur in the future, but what effects are happening now? Well, for one, if you’re a Millennial, you may have noticed that companies have been shifting aggressively to meet your needs.² Simply put, if a company doesn’t have a website or an app that a Millennial can dig into, it’s probably not a company you’ll be investing any time or money in. This may be a driving force behind the technological advancements companies have made in the last decade – Millennials need, want, and use technology. All. The. Time. This means that whatever matters to you as a Millennial, companies may have no choice but to listen, take note, and innovate.

If you’re either in business for yourself or work for a company that’s planning to stay viable for the next 20-30 years, it might be a good idea to pay attention to the habits and interests of this massive group (if you’re not already). The Baby Boomers are already well into retirement, and the next wave of retirees will be Generation X, which will leave the Millennials as the majority of the workforce. There will come a time when this group will control most of the wealth in the US. This means that if you’re not offering what they need or want now, then there’s a chance that one day your product or service may not be needed or wanted by anyone. Perhaps it’s time to consider how your business can adapt and evolve.

Ultimately, this shift toward Millennials and what they’re looking for is an exciting time to gauge where our society will be moving in the next few decades, and what it’s going to mean for the financial industry.

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¹ “Millennials: Coming of Age,” Goldman Sachs, http://www.goldmansachs.com/our-thinking/pages/millennials/

² “May We Have Your Attention: Marketing To Millennials,” Kelly Ehlers, Forbes, Jun 27, 2017, https://www.forbes.com/sites/yec/2017/06/27/may-we-have-your-attention-marketing-to-millennials/?sh=2f3cb7cb1d2f

December 28, 2020

More financial tips for the new year

More financial tips for the new year

There’s nothing like the start of a brand new year to put you in a resolution-making, goal-setting, slate-cleaning kind of mood.

Along with your commitment to eat less sugar and exercise a little more, carve out some time to set a few financial aspirations for the new year. Here are some quick tips that may add up to significant benefits for you and your family.

Check your credit report
Start the new year with a copy of your credit report. Every consumer is entitled to one free credit report per year. Make it a point to get yours. Your credit report determines your credit score, so an improved score may help you get a better interest rate on an auto loan or a better plan for utilities or your phone.

Check your credit report carefully for accuracy. If you find anything that shouldn’t be there, you can file a dispute to have it removed. There are several sites where you can get your free credit report – just don’t get duped into paying for it.

Up your 401(k) contributions
The start of a new year is a great time to review your retirement strategy and up your 401(k) contributions. If saving for retirement is on your radar right now – as it should be – see if it works in your budget to increase your 401(k) contribution a few percentage points.

Review your health insurance policy
The open enrollment period for your health insurance may occur later in the year, so make a note on your calendar now to explore your health insurance options beforehand. If you have employer-sponsored health insurance, they should give you information about your plan choices as the renewal approaches. If you provide your own health insurance, you may need to talk to your representative or the health insurance company directly to assess your coverage and check how you might be able to save with a different plan.

Make sure your coverage is serving you well. If you have a high deductible plan, see if you can set up a health savings account. An HSA will allow you to put aside pretax earnings for covered health care costs throughout the year.

No spend days
Consider implementing “no spend days” into your year. Select one day per month (or two if you’re brave) and make it a no spend day. This only works well if you make it non-negotiable! A no spend day means no spur of the moment happy hours, going out to lunch, or engaging in so-called retail therapy.

A no spend day may help you save a little money, but the real gift is what you may learn about your spending habits.

Do some financial goal setting
Whether we really stick to them or not, many of us might be pretty good at setting career goals, family goals, and health and fitness goals. But when it comes to formulating financial goals, some of us might not be so great at that. Still, financial goal setting is essential, because just like anything else, you can’t get there if you’re not sure where you’re going.

Start your financial goal setting by knowing where you want to go. Have some debt you want to pay off? Looking to own a home? Want to retire in the next ten years? Those are great financial goals, but you’ll need a solid strategy to get there.

If you’re having trouble creating a financial strategy, consider working with a qualified financial professional. They can help you draw your financial roadmap.

Clean out your financial closet
Financial tools like budgets, savings strategies, and household expenses need to be revisited. Think of your finances like a closet that should be cleaned out at least once a year. Open it up and take everything out, get rid of what’s no longer serving you, and organize what’s left.

Review your household budget
Take a good look at your household budget. Remember, a budget should be updated as your life changes, so the beginning of a new year is an excellent time to review it. Don’t have a budget? An excellent goal would be to create one! A budget is one of the most useful financial tools available. It’s like an x-ray that reveals your income and spending habits so you can see and track changes over time.

Make this year your financial year
A new year is a great time to do a little financial soul searching. Freshen up your finances, revisit your financial strategies, and greet the new year on solid financial footing.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Before investing or enacting a savings or retirement strategy, seek the advice of a financial professional, accountant, health insurance representative, and/or tax expert to discuss your options.

December 21, 2020

Permanent or Term Life: Which is right for you?

Permanent or Term Life: Which is right for you?

Life insurance has many benefits.

Most people purchase life insurance to serve as a safety net for the financial health of their family if something happens to them as the primary provider. A life insurance policy in such cases could be used for funeral costs, medical bills, mortgage payments, or other expenses.

You’re finally convinced you need a life insurance policy, and you’re ready to buy. But what do you need exactly? What type of life insurance is best for you?

When preparing to purchase life insurance, there are two main types of policies to consider – permanent and term. Read on for a short primer on the differences and which one may be right for you.

Term life insurance at a glance
Term life insurance offers life insurance coverage for a set amount of time – the “term”. If you pass away during the term, the policy pays out to your beneficiary. A term policy is sometimes called a pure life policy because it doesn’t have financial benefits other than the payout to your dependents should you die within the term.

There are different terms available depending on your needs. You could purchase a term life policy for 10, 20, or 30 years.

Term life insurance pointers
When purchasing a term life policy, consider a term for the number of years you’ll need coverage. For example, you may want life insurance to provide for your child in case you die prematurely. So, you may select a 25-year term. On the other hand, you may want a life insurance policy to help with the mortgage should something happen to you. In this case, you may opt for a 30-year term which will expire when your mortgage is paid off.

You’ll need to purchase enough insurance to cover your family’s needs if something happens to you and you cannot provide for them. Term life insurance benefits could serve as income replacement for your wages, so buy enough to pay for the expenses your paycheck covers.

For example, if you cover the mortgage, car payment, and child care, make sure the term life policy you purchase can cover those expenses.

Term life insurance policies when appropriately used should expire around the time the need for them goes away, such as when your children are self-sufficient, or your mortgage is paid off.

Permanent insurance at a glance
This type of policy can provide coverage for your entire life, unlike a term policy that expires at a set time. A permanent life policy also contains an investment benefit which is known as the policy’s cash value. The cash value of a permanent life policy grows slowly over time but is tax-free (provided you stay within certain limits), so you don’t pay taxes on the accumulating value.

A permanent life policy can be borrowed against. You can borrow against the cash value, but you must abide by the repayment terms to keep the policy payout unchanged.

Some permanent life insurance policies offer dividends. The dividends are paid to the policyholders based on the insurance company’s financial profits. Policyholders can take dividends in the form of cash payouts or use them to earn interest, payback a loan on the policy, or purchase additional life insurance coverage.

Some of the key points regarding permanent life insurance include:

  • The premium can remain the same throughout the policy term if you abide by the conditions and terms in the policy
  • The policy offers a guaranteed death benefit

Cost of life insurance
Term life insurance is generally less expensive than permanent life insurance because the policy has a pre-selected term. Permanent life insurance, on the other hand, covers the insured for their entire lifespan, so you can expect premiums to be higher.

Which life insurance policy is right for you?
If you aren’t sure which policy is right for you, talk to a qualified financial professional who can help you find the right type of life insurance policy to meet your goals and budget.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing or enacting a savings or retirement strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

December 9, 2020

Setting Up Your Reindeers For Success

Setting Up Your Reindeers For Success

Dasher. Dancer. Prancer. Vixen. Comet. Cupid. Donner. Blitzen. (And Rudolph too, of course.)

This is a holiday roll-call that’s instantly recognizable: the reindeer that pull Santa’s magical sleigh. But what if things got so hectic at the North Pole (not a stretch when you’re in charge of delivering presents to every child on Earth), that when it was time to hitch up the reindeer on Christmas Eve, they were all out of order?

Prancer. Cupid. Dasher. Comet. Dancer. Vixen. Blitzen. Donner.

Hmmm, someone’s missing…. what happened to Rudolph? (Looks like he got left behind at the North Pole. In all the hubbub one of Santa’s elves forgot to review the pre-flight checklist.)

Since so much can change during the year from one crazy “Happy Holidays!” to the next, your ducks – or reindeer, that is – may not even be in a row at this point. They could be frolicking unattended in a field somewhere! And who knows where your Rudolph even is.

We can help with that. An annual review of your financial strategy is key to keeping you on track for your unique goals. Lots of things can change over the course of a year, and your strategy could need some reorganizing. I mean, did you hear about everything that changed for Prancer? (What do you call a baby reindeer, anyway?)

Here are some important questions to consider at least once each year (or even more often):

1. Are you on track to meet your savings goals? A well-prepared retirement is a worthy goal. Let’s make sure nothing drove you too far off track this year, and if it did, let’s explore what can be done to get you back on the right path.

2. Do you have the potential for new savings? Did your health improve this year? Did that black mark on your driving record expire? Changes like these have the potential to positively impact your life insurance rate, but we’d need to dig in and find out what kinds of savings might be in store for you.

3. Have your coverage needs increased? Marriage, having a child, or buying a home are all instances in which your life insurance coverage probably should be increased. Have any of these occurred for you over the last year? Have you added the new family member as a beneficiary?

If you haven’t had a chance to review your strategy this year, we can fit one in before Santa shimmies down the chimney. Which of your reindeer do you need to wrangle back into the ranks before the New Year gets going?

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December 2, 2020

Facts About Disability Insurance

Facts About Disability Insurance

How are you protecting your income?

Maybe you already have a life insurance policy worth about 10 times your annual earnings. That should help protect your family in the case of your untimely passing.

But what if you aren’t able to work during your lifetime?

It’s more common than you might think. 1 in 4 20-year-olds will become disabled before they reach 67, and 67% of private-sector workers have no disability insurance.¹ Here are some basic facts about this essential line of protection for you and your family.

Disability insurance has a lot in common with life insurance.
At first blush, it might be hard to distinguish between life insurance and disability insurance. But there are some key differences that are worth exploring.

Disability insurance activates when you can’t work
Life insurance pays out in the case of your passing. Disability insurance can provide a stable income replacement if an injury, accident, illness, or something else renders you unable to work.

There are two types of disability insurance: long-term and short-term Short-term disability insurance can replace your income if you can’t work for a few months. Long-term disability insurance can protect you if a serious health issue takes you out of the field for more than 6 months.

Employers sometimes offer disability insurance (but it might not be enough) It’s not uncommon for employers to provide their workers with some form of disability insurance. As of 2018, 42% of private sector employees had access to short-term disability insurance via their work, while 34% had long-term disability insurance options.²

However, it’s worth noting that this might not be enough to fully protect you and your family. Disabilities can increase your expenses, so you’ll need a strategy that replaces your current income and then some. Make sure your employer-provided plan will give you enough to cover all of your needs in the case of a disability and help your family for the long haul. If it doesn’t do either of those, you may need to turn to private coverage.

The government offers disability benefits (but they might not be enough, either)
Social Security does provide disability coverage to individuals who have worked long enough and paid enough into the system. However, applying for it is a time consuming process. Also, average monthly payments were just over $1,000 as of 2017.⁴ Do your research to see if you’re eligible and if you’ll receive enough before you apply.

Above all, meet with a licensed and qualified financial professional to weigh your options and start developing a plan. They’ll assist you as you evaluate your need for protection, what employer-provided options you might have, and how disability insurance fits into your overall financial strategy.

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¹ “Fact Sheet: Social Security,” Social Security Administration, https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

² “Employee access to disability insurance plans,” Bureau of Labor Statistics, U.S. Department of Labor, https://www.bls.gov/opub/ted/2018/employee-access-to-disability-insurance-plans.htm

³ “Disability Benefits,” Social Security Administration, https://www.ssa.gov/benefits/disability/

⁴ “Disability Insurance: Why You Need It and How to Get It,” Barbara Marquand, Nerwallet, Oct. 20, 2017, https://www.nerdwallet.com/blog/insurance/disability-insurance-explained/

November 30, 2020

4 Insights Into Paying Off Debt

4 Insights Into Paying Off Debt

On paper, paying off debt seems simple. But that doesn’t mean it’s always easy.

In fact, it can get downright discouraging if you don’t see any progress on your balances, especially if you feel like your finances are already stretched.

Fortunately, there are ways to take your debt escape plan to the next level. Here are a few insightful tips for anyone who feels like their wheels are spinning.

You must create a plan
Planning is one of the most important steps towards eliminating debt. Studies show that creating detailed plans increases our follow-through.¹ It also frees up our mental resources to focus on other pressing issues.²

Those are essential components of overcoming debt. A plan helps you stick to your guns when you’re tempted to make an impulse buy on your credit card or consider taking that last-minute weekend trip. And tackling problems that have nothing to do with debt can be a breath of fresh air for your mental health.

You have to stop borrowing
Seems obvious, right? But it might be easier said than done. Credit cards can seem like a convenient way to cover emergency expenses if you’re strapped for cash. Plus, spending money can feel therapeutic. Kicking the habit of borrowing to buy can be hard!

That’s why it’s so important to fortify your financial house with an emergency fund before you start eliminating debt. Save up enough money to cover 3 months of expenses. Then quit borrowing cold turkey. You should always have enough cash in reserve to cover car repairs and doctor visits without using your credit card.

Your lifestyle has to change
But, as mentioned before, debt can embed itself into lifestyles. You can’t get rid of debt without cutting back on spending, and you can’t cut back on spending without transforming your lifestyle.

When you’re making your escape plan, identify your highest spending categories. How important are they to your quality of life? Some of them might be essential. But you may realize that others exist just out of habit. Be willing to sacrifice some of your favorite activities, at least until you’re debt free.

You can still do the things you want
This does NOT mean that you have to be miserable. You can still enjoy a vacation, buy an awesome gadget, or treat your partner to a romantic dinner. You just have to prepare for those events differently.

Create a “fun fund” that you contribute money to every month. Budget a specific amount to put in it and dedicate it to a specific item. This allows you to have some fun every now and then without derailing your journey to financial freedom.

Debt doesn’t have to be overwhelming. These insights can help you stay the course as you eliminate debt from your financial house and start pursuing your dreams. Let me know if you’re interested in learning more about debt-destroying strategies!

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¹ “Making the Best Laid Plans Better: How Plan-Making Prompts Increase Follow-Through,” Todd Rogers, Katherine L. Milkman, Leslie K. John and Michael I. Norton, Behavioral Science and Policy, 2016, https://scholar.harvard.edu/files/todd_rogers/files/making_0.pdf

² “The Power of a Plan,” Timothy A Pychyl Ph.D., Psychology Today, Nov 17, 2011, https://www.psychologytoday.com/us/blog/dont-delay/201111/the-power-plan

September 21, 2020

Does healthy living have to cost more?

Does healthy living have to cost more?

Many of us may be chair-bound during the workday and may come home lethargic and sluggish – seeming results of a sedentary lifestyle and some potentially unhealthy habits of office life.

You might be itching to break this cycle and establish some healthier habits for yourself, but you don’t want to break your budget either.

If you’re interested in improving your healthy habits – but aren’t interested in spending a lot of money to do it – read on!

Getting more exercise
Many people equate maintaining a regular exercise regimen with an expensive gym membership, but you don’t have to have one to exercise. One can perform body-weight exercises just about anywhere, so getting in some sit ups, push ups, squats, and a brisk jog can be free of charge. Other body-weight exercises, like pull-ups, may require finding a place to do them, but all one needs is a horizontal bar. This can range from a sturdy tree limb to the monkey bars at the playground.

Not sure where to begin? There are a myriad of free videos and programs online for all ages, goals, and body types. (As always, get your doctor’s approval before starting any exercise program.) If an exercise program is all new to you, you might want to start with only 10-15 minutes, then work up from there.

It does require forming a habit to establish a regular exercise routine. For that reason, it’s a good idea to build exercise into a part of your day. That way, a sense of something missing may arise when the exercise is not completed, which can be a motivation to get the workout in.

Eating healthy
This one may be a little harder to solve than the exercise issue, because saving money on your food bill may require a bigger time commitment than you’re used to, with additional shopping and food preparation. The good thing about fruits and vegetables is that many of them can be eaten raw with minimal prep time.

Internet shopping provides a myriad of resources for finding good deals for nutritious foodstuffs. If you’re feeling more adventurous and don’t mind getting your hands dirty, there may also be a local communal garden[i] in your area. Some apartment complexes offer their roofs to be used as gardens, and for those with no other options, growing right in your high-rise apartment is feasible[ii]. One of the best parts about gardening? It may give you some exercise in the process.

Unfortunately, most people can’t raise their own livestock, so for meat (and alternative protein sources) online delivery is an option, as well as shopping sales and using coupons at your local grocery store.

If all of this seems like too great of a commitment (admittedly it may take some extra work), there are other ways to start the journey without running headlong into an agricultural venture. Simply avoiding processed and fast foods is a start, as these options can be more expensive and may offer less in the way of solid nutrition. And if you find the “healthy” option too bland, make a pledge to yourself to stick with it until your taste buds become accustomed to the new foods, or experiment with spices and herbs to increase the flavor intensity.

Eating healthy and beginning an exercise program certainly demand a degree of attention and commitment, but they do not always require a lot of money. Regardless of what advertisers want you to believe, it is possible to stay in shape without a gym membership or expensive home gym equipment, and you can eat healthy without spending a week’s paycheck in the grocery store’s organic aisle.

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September 9, 2020

Life Insurance Myths

Life Insurance Myths

We love facts.

Maybe it’s a byproduct of the modern age, but many of us desire an accurate worldview that’s based on evidence and data. Who wants to live with their head in the clouds, believing myths or superstitions?

Unfortunately, there are those of us who have fallen prey to certain life insurance urban legends. Here are some common myths that many people believe and some cold, hard facts to debunk them!

Myth: Life insurance is less important than my other financial obligations
Here’s how the story goes. You have a spouse you love, a house you’re proud of, a reliable car, and kids you care for. All of that takes money; date nights, mortgages, and tuition aren’t cheap! It can be hard to swallow taking on another financial obligation like life insurance on top of the bills you’re already paying.

But life insurance isn’t simply another burden for you to carry. It’s an essential line of protection that empowers you to provide for your family regardless of what happens. The payout can act as a form of income replacement that can help your loved ones maintain their lifestyle, pay their bills, and pursue their dreams when they need financial help the most. Life insurance isn’t less important than your other financial responsibilities. It’s an essential tool that helps the people in your life meet their financial obligations if something were to happen to you!

Myth: Life insurance is unaffordable
This is an incredibly common myth, especially among Millennials; 44% overestimated the cost of life insurance by five times!(1) 65% of people who don’t have life insurance say they can’t afford it.(2) But life insurance is far more affordable than you might think. A healthy, non-smoking 25 year old could only pay $25 per month for a policy.(3) That’s about what a subscription to three popular streaming services would cost!(4) Do some online shopping and be amazed by how affordable life insurance really is!

Myth: My employer-provided insurance is enough
Just under half the workforce has life insurance from their employer.(5) That’s great! The more life insurance you have available to you the better. But it simply might not be enough to fully protect your family. Professionals typically advise that you purchase about 10 times your annual income in life insurance coverage. Most employer-provided life insurance gives only one to three years of protection.(6) That’s not to say you should refuse a policy through work. But you might need to get some extra protection!

Contact a financial advisor if you still have doubts or concerns. They’re full-time myth busters who will help you navigate the sometimes confusing world of financially protecting your family!

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(1) Nupur Gambhir, “9 common life insurance myths debunked,” Policygenius, March 13, 2020 https://www.policygenius.com/life-insurance/common-life-insurance-myths-debunked/

(2) “Is Life Insurance Tomorrow’s Problem? Findings from the 2020 Insurance Barometer Study,” LIMRA, June 16, 2020 https://www.limra.com/en/newsroom/industry-trends/2020/is-life-insurance-tomorrows-problem-findings-from-the-2020-insurance-barometer-study/

(3) Sterling Price, “Average Cost of Life Insurance (2020): Rates by Age, Term and Policy Size,” ValuePenguin, Aug. 10, 2020, valuepenguin.com/average-cost-life-insurance

(4) Joe Supan, “Americans already subscribe to three streaming services on average. Is there room for more?,” Allconnect, Jun 20, 2020, https://www.allconnect.com/blog/average-american-spend-on-streaming#:~:text=One%20poll%20from%20The%20Hollywood,at%20just%20over%20%2414%2Fmo.

(5) Marvin H. Feldman, “4 Things You Probably Don’t Know About Your Life Insurance at Work,” Life Happens, Sept. 22, 2017 https://lifehappens.org/blog/4-things-you-probably-dont-know-about-your-life-insurance-at-work/#:~:text=Press-,4%20Things%20You%20Probably%20Don’t%20Know,Your%20Life%20Insurance%20at%20Work&text=For%20the%20first%20time%20ever,to%20a%20new%20LIMRA%20study.

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