Hello all. I am so excited! I am volunteering my time as a teacher at a great non-profit organization in downtown San Diego. I will be teaching a Women & Money I class at Shakti Rising in San Diego this next year.
Come to understand your relationship with money and the choices you make while learning the practical skills of creating a budget and living within your means. This class will assist you on the path of sustainability and financial abundance.
Join us for an experience of true financial well-being.
When: Fall: 10/21/09 - 11/11/09
Winter: 1/20/10 - 2/10/10
Spring: 4/21/10 - 5/12/10
Times: Wednesdays 4:00pm - 5:00pm
Cost: $60.00 to Shakti Rising for a great cause and you will be giving back and you WILL learn something too!
www.shaktirising.org
Thursday, October 15, 2009
Monday, September 28, 2009
Avoiding Financial Ruin with Disability Insurance
You likely already have life insurance to protect your family against the financial adversity they could face after your unexpected death. And you've probably insured your home, cars, and other personal possessions against the financial loss that can result from fire, theft, or damage. But what have you done to protect yourself and your family against an injury or sickness that affects your ability to work? Do you have disability insurance?
The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you may no longer have the ability to pay your mortgage, car payments, and other bills. If you are without disability insurance, tapping into home equity, retirement savings or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.
There are many different ways to obtain disability insurance. You may have group coverage at work, through unions or membership groups and, depending on the nature and cause of your disability, you may also qualify for workers' compensation, Social Security, and veterans' benefits. Without the benefit of group insurance, individual coverage is a must.
There are many different types of disability insurance contracts and several definitions of disability. Consider whether you contract includes:
A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a "loss of income."
A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
Benefits that are payable until age 65 or later.
A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.
The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you may no longer have the ability to pay your mortgage, car payments, and other bills. If you are without disability insurance, tapping into home equity, retirement savings or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.
There are many different ways to obtain disability insurance. You may have group coverage at work, through unions or membership groups and, depending on the nature and cause of your disability, you may also qualify for workers' compensation, Social Security, and veterans' benefits. Without the benefit of group insurance, individual coverage is a must.
There are many different types of disability insurance contracts and several definitions of disability. Consider whether you contract includes:
A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a "loss of income."
A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
Benefits that are payable until age 65 or later.
A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.
Tuesday, September 15, 2009
Covering Your Bases with Life Insurance
The 21st century brought more than a new millennium to experience. Over the last two decades, inflation has continually outpaced wages and income and this trend shows no sign of slowing. This inverse relationship between wages and costs means that you need more dollars each year to purchase the same items as you did the previous year. Financial and estate plans are not impervious to the pressures of inflation. Here are three aspects of your financial plan that you should consider adjusting:
1) Spousal income replacement
With the advent of telecommuting, dual income households seem to be taking over the landscape. For some, higher levels of household income have permitted better lifestyles. For others, two incomes barely get the bills paid. If your budget and lifestyle are dependent on two incomes, you should review your life insurance coverage and make sure that both wage earners are insured. You, your spouse, and your family may be in financial jeopardy if your insurance plan has not been recently updated.
2) Purchasing a new home and taking out a mortgage
Today, many homes are purchased with the help of a substantial mortgage. If you or your spouse suffered an untimely death, would your current life insurance be enough to pay off the balance of your mortgage? It's important to make sure your life insurance policy's death benefit provides the necessary funds to accomplish your goals--protecting your family's lifestyle.
3) College education costs
If you have college education plans for your children, you may be concerned about the rising costs of higher education. In 1977, the annual cost at Harvard University was $7,060. Thirty years later, you would have to pay $32,556-an increase of more than 350 percent (Figures from Forbes, Nov. 1, 1977, compared to the Harvard Admissions Office, 2008-2009 academic year). Putting money aside for your child's education requires a long-term financial commitment and a disciplined approach to saving. However, it also requires a contingency plan in the event of an untimely death. For this reason, you may want to include all or part of the projected education costs in your insurance plan.
Life insurance planning doesn't end with these three scenarios. In fact, you may have additional goals you want to hedge against in the event you or your spouse suffers an untimely death. Adjust your life insurance coverage for inflation to ensure your wishes will be fulfilled in the future.
1) Spousal income replacement
With the advent of telecommuting, dual income households seem to be taking over the landscape. For some, higher levels of household income have permitted better lifestyles. For others, two incomes barely get the bills paid. If your budget and lifestyle are dependent on two incomes, you should review your life insurance coverage and make sure that both wage earners are insured. You, your spouse, and your family may be in financial jeopardy if your insurance plan has not been recently updated.
2) Purchasing a new home and taking out a mortgage
Today, many homes are purchased with the help of a substantial mortgage. If you or your spouse suffered an untimely death, would your current life insurance be enough to pay off the balance of your mortgage? It's important to make sure your life insurance policy's death benefit provides the necessary funds to accomplish your goals--protecting your family's lifestyle.
3) College education costs
If you have college education plans for your children, you may be concerned about the rising costs of higher education. In 1977, the annual cost at Harvard University was $7,060. Thirty years later, you would have to pay $32,556-an increase of more than 350 percent (Figures from Forbes, Nov. 1, 1977, compared to the Harvard Admissions Office, 2008-2009 academic year). Putting money aside for your child's education requires a long-term financial commitment and a disciplined approach to saving. However, it also requires a contingency plan in the event of an untimely death. For this reason, you may want to include all or part of the projected education costs in your insurance plan.
Life insurance planning doesn't end with these three scenarios. In fact, you may have additional goals you want to hedge against in the event you or your spouse suffers an untimely death. Adjust your life insurance coverage for inflation to ensure your wishes will be fulfilled in the future.
Wednesday, September 9, 2009
Take a Holistic Approach to Personal Finances
In July 2008, State Farm Life Insurance Company announced the results of its first ever Fiscally Fit Cities Report, whose findings indicated that less then 50 percent of American households are making provisions to secure their financial future. The report measured citizens in 50 metropolitan areas in terms of investments, quality of life and life insurance coverage. Twenty-seven criteria were analyzed that demonstrate what Americans are doing to maintain their finances.
The researchers discovered that citizens in the cities deemed most financially fit were creating strategies to protect their assets with short-and long-term investments. However, what was missing was a holistic approach to personal financial planning, including owning enough life insurance coverage to keep their families afloat after the sudden death of a wage earner.
Surprisingly, researchers found that citizens in areas with high household incomes were not saving enough nor protecting assets adequately, as you would expect. In fact, people in wealthier areas spend more on real estate and are less disciplined in saving money and purchasing life insurance to protect their family.
Ultimately, the data revealed two concerns: Americans aren’t looking at their finances as a complete package, and they don’t understand the importance of life insurance.
As a rule of thumb, most people require seven to 10 times their annual income in life insurance benefits if their family is to maintain a comparable standard of living at their death. The other issue is not insuring all of the family members who need coverage. Many families believe the primary wage earner should be the insured; however, they fail to realize that a stay-at-home spouse or a second wage earner also needs life insurance.
In addition to examining your life insurance needs, consider these simple steps to plan for tomorrow:
* Take care of yourself – Good health leads to a longer, fuller life and more options for generating income later in life. Good health can also help control costs, particularly for insurance policies.
* Stay balanced – While it's tempting to spend when you are doing well, without proper planning you may need to lower your standard of living later in life. It's smarter – and less disappointing – to live conservatively and prepare for the unexpected.
* Start early – You're never too young to reduce debt and live within your means, invest wisely, protect your assets through life insurance, and enjoy a healthy lifestyle.
The researchers discovered that citizens in the cities deemed most financially fit were creating strategies to protect their assets with short-and long-term investments. However, what was missing was a holistic approach to personal financial planning, including owning enough life insurance coverage to keep their families afloat after the sudden death of a wage earner.
Surprisingly, researchers found that citizens in areas with high household incomes were not saving enough nor protecting assets adequately, as you would expect. In fact, people in wealthier areas spend more on real estate and are less disciplined in saving money and purchasing life insurance to protect their family.
Ultimately, the data revealed two concerns: Americans aren’t looking at their finances as a complete package, and they don’t understand the importance of life insurance.
As a rule of thumb, most people require seven to 10 times their annual income in life insurance benefits if their family is to maintain a comparable standard of living at their death. The other issue is not insuring all of the family members who need coverage. Many families believe the primary wage earner should be the insured; however, they fail to realize that a stay-at-home spouse or a second wage earner also needs life insurance.
In addition to examining your life insurance needs, consider these simple steps to plan for tomorrow:
* Take care of yourself – Good health leads to a longer, fuller life and more options for generating income later in life. Good health can also help control costs, particularly for insurance policies.
* Stay balanced – While it's tempting to spend when you are doing well, without proper planning you may need to lower your standard of living later in life. It's smarter – and less disappointing – to live conservatively and prepare for the unexpected.
* Start early – You're never too young to reduce debt and live within your means, invest wisely, protect your assets through life insurance, and enjoy a healthy lifestyle.
Tuesday, September 1, 2009
September is Life Insurance Awareness Month
A recent survey indicates that 68 million Americans have no life insurance and those with coverage have far less than most experts recommend ensuring a secure financial future for their families. In fact, ownership of life insurance has been declining for decades and the impact is being felt in very human terms today. When a loved one dies without adequate life insurance coverage, surviving family members often face very difficult financial consequences like having to work additional jobs or longer hours, borrow money from friends and family, move to smaller, less expensive housing, or put plans for a child’s education on hold.
With so many Americans in a financially vulnerable situation today, the life insurance industry has created a month-long public awareness campaign aimed at encouraging the public to take stock of their life insurance needs. Life Insurance Awareness Month (LIAM) is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE). Each year, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups. All share the same objective: to end the unnecessary financial suffering that so often occurs when a loved one dies.
Please Email or call me (619) 208-7717 if you would like a free review of your life insurance. thewic@sbcglobal.net
With so many Americans in a financially vulnerable situation today, the life insurance industry has created a month-long public awareness campaign aimed at encouraging the public to take stock of their life insurance needs. Life Insurance Awareness Month (LIAM) is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE). Each year, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups. All share the same objective: to end the unnecessary financial suffering that so often occurs when a loved one dies.
Please Email or call me (619) 208-7717 if you would like a free review of your life insurance. thewic@sbcglobal.net
Monday, August 31, 2009
Disproving Disability Income Myths
A long-term disability can have a devastating impact on a family's finances. When you become sick or injured and cannot work, not only could you lose your income-you could lose all of your savings, investments and other assets as well. Without a steady income, you'd eventually have to tap into these assets to pay for your costly medical bills, your mortgage, utilities and other daily expenses.
Luckily, disability income (DI) can offer your family much-needed financial protection in this scenario. But if you're young and healthy or if your spouse also works, you probably assume you have no need disability income. You couldn't be more wrong.
Here are five of the most common disability income myths disproved:
Myth #1: I'm too young to buy DI insurance.
You would be surprised to learn how many young adults suffer from a long-term disability. According to the Social Security Administration, nearly 3 in 10 of today's 20-year-olds will become disabled before they reach the age of 67. On top of that, you are five times more likely to become injured during your working years than you are to die before the age of 65, according to a study by Great-West Life.
In other words, you are never too young to suffer from a long-term disability-which means you're never too young to purchase disability income insurance.
Myth #2: I don't need DI because I'm healthy as a horse.
As we all know, good health can come and go like a flash of lightning. Even people who eat well, exercise and take great care of themselves can suffer from a stroke, cancer, a neurological disorder or an unexpected accident.
Myth #3: Only people with high-risk jobs need DI coverage.
Far too many people are under the impression that disability income is most often paid out to blue-collar workers who are injured in a workplace accident or professionals who are disabled in a car accident. Therefore, people who work from home or at a computer desk in a comfy office assume they don't need DI coverage.
The truth is that non-work-related accidents or jobsite injuries are not the primary causes for worker disabilities. Most workers are disabled by a chronic disease, such as cancer or musculoskeletal problems-conditions that can strike anyone, anywhere, any time.*
Myth #4: If I were disabled, my spouse's income would cover us.
If your spouse works, you may assume his or her income would be enough to pay the bills for a few months if you were sick or disabled. If your spouse doesn't work, you may think he or she could find a job if something happened to you.
However, don't you think if you were diagnosed with a disease or seriously injured, your spouse would rather be caring for you than running out to find a job or working overtime to pay the bills? Typically, if a family has DI insurance, both the injured worker and the spouse end up living off of the insurance benefit-even if the spouse was working previously.
Myth #5: I don't need DI insurance because I'm covered through my company's group policy.
Although many workers receive disability coverage through their company, it may not be enough. Most group DI insurance contracts will cover only a percentage of your salary (usually about 50-60%) and the benefits are usually fully taxable. Would your family really be able to live off of just 60% of your salary, especially considering that you may be facing some lofty medical bills? Probably not.
Most financial experts recommend that you go ahead and take advantage of your company's group coverage if they offer it, but also buy individual coverage to fill in the salary gaps.
As you can see, everyone stands to benefit from long-term disability coverage. Without coverage, an unexpected disability could end up crushing your family's finances.
Luckily, disability income (DI) can offer your family much-needed financial protection in this scenario. But if you're young and healthy or if your spouse also works, you probably assume you have no need disability income. You couldn't be more wrong.
Here are five of the most common disability income myths disproved:
Myth #1: I'm too young to buy DI insurance.
You would be surprised to learn how many young adults suffer from a long-term disability. According to the Social Security Administration, nearly 3 in 10 of today's 20-year-olds will become disabled before they reach the age of 67. On top of that, you are five times more likely to become injured during your working years than you are to die before the age of 65, according to a study by Great-West Life.
In other words, you are never too young to suffer from a long-term disability-which means you're never too young to purchase disability income insurance.
Myth #2: I don't need DI because I'm healthy as a horse.
As we all know, good health can come and go like a flash of lightning. Even people who eat well, exercise and take great care of themselves can suffer from a stroke, cancer, a neurological disorder or an unexpected accident.
Myth #3: Only people with high-risk jobs need DI coverage.
Far too many people are under the impression that disability income is most often paid out to blue-collar workers who are injured in a workplace accident or professionals who are disabled in a car accident. Therefore, people who work from home or at a computer desk in a comfy office assume they don't need DI coverage.
The truth is that non-work-related accidents or jobsite injuries are not the primary causes for worker disabilities. Most workers are disabled by a chronic disease, such as cancer or musculoskeletal problems-conditions that can strike anyone, anywhere, any time.*
Myth #4: If I were disabled, my spouse's income would cover us.
If your spouse works, you may assume his or her income would be enough to pay the bills for a few months if you were sick or disabled. If your spouse doesn't work, you may think he or she could find a job if something happened to you.
However, don't you think if you were diagnosed with a disease or seriously injured, your spouse would rather be caring for you than running out to find a job or working overtime to pay the bills? Typically, if a family has DI insurance, both the injured worker and the spouse end up living off of the insurance benefit-even if the spouse was working previously.
Myth #5: I don't need DI insurance because I'm covered through my company's group policy.
Although many workers receive disability coverage through their company, it may not be enough. Most group DI insurance contracts will cover only a percentage of your salary (usually about 50-60%) and the benefits are usually fully taxable. Would your family really be able to live off of just 60% of your salary, especially considering that you may be facing some lofty medical bills? Probably not.
Most financial experts recommend that you go ahead and take advantage of your company's group coverage if they offer it, but also buy individual coverage to fill in the salary gaps.
As you can see, everyone stands to benefit from long-term disability coverage. Without coverage, an unexpected disability could end up crushing your family's finances.
Monday, August 24, 2009
Security No Matter What Life Throws Your Way
We live in an age of insecurity. No one wants to lose what they have worked so hard for. It's important to include life insurance among your financial options. Life insurance may be an old-fashioned way to protect yourself and your family, but it is still one of the best products you can buy.
No other financial instrument will do what life insurance can do. The moment your life insurance policy goes into force, the full death benefit to your beneficiary is guaranteed, from day 1 and for as long as you continue to keep the policy in force by paying the premiums. Financial planners call this aspect of life insurance "creating an immediate estate."
Life insurance can seem complicated. There are more products than just term and permanent life insurance. Term and permanent life insurance have many riders and variations that can be added to suit your family's needs.
This is to your advantage. It means greater flexibility and many options. Therefore, a life insurance protection plan can be designed to fit the individual needs of your family.
Various types of policies can serve to protect the family's economic future. Insurers have adapted their products to augment savings and investment programs.
It's important to protect your lifestyle and well-being too. Disability income protection coverage can replace earned income (up to the amount purchased) in the event of serious illness or injury that prevents you from working.
A trained life insurance agent can help you choose from among all the specialized products. Be sure your agent represents a financially strong company. One way to check on a company is through the ratings of such independent evaluators as Moody's Investors Services, Standard & Poor's, A. M. Best, and Duff & Phelps.
No other financial instrument will do what life insurance can do. The moment your life insurance policy goes into force, the full death benefit to your beneficiary is guaranteed, from day 1 and for as long as you continue to keep the policy in force by paying the premiums. Financial planners call this aspect of life insurance "creating an immediate estate."
Life insurance can seem complicated. There are more products than just term and permanent life insurance. Term and permanent life insurance have many riders and variations that can be added to suit your family's needs.
This is to your advantage. It means greater flexibility and many options. Therefore, a life insurance protection plan can be designed to fit the individual needs of your family.
Various types of policies can serve to protect the family's economic future. Insurers have adapted their products to augment savings and investment programs.
It's important to protect your lifestyle and well-being too. Disability income protection coverage can replace earned income (up to the amount purchased) in the event of serious illness or injury that prevents you from working.
A trained life insurance agent can help you choose from among all the specialized products. Be sure your agent represents a financially strong company. One way to check on a company is through the ratings of such independent evaluators as Moody's Investors Services, Standard & Poor's, A. M. Best, and Duff & Phelps.
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