Tag Archives: #FinanceFriday

Wine, Women & Wealth seminar – May 2016

This month we have another first time male (gasp!) speaker, physical trainer Colby Ebanks. He spoke about what to look for in a personal trainer before opening it up to the audience members’ questions.

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A Personal Trainer Should:
  1. Focus on your goals more than anything.
  2. Tailor make a fitness program for your specific needs.
  3. Vary your workouts from day to day by how you feel.
Colby mentioned that trainers that he has worked with in the past have their own goals and agenda for their clients and don’t really take into account what the client wants out of their workout plan. If this has been your experience, he suggested to either push your trainer to make the switch or find another trainer.
On the second note, he clarified that you can tell if your trainer ahs made a plan specifically for you based on whether he or she has looked at you analyzing how you are built and what health and physical condition you are in. Lastly, he spoke on how stress and other emotional issues can have a physical effect on how your body responds to your workout on any particular day. Therefore a good personal trainer will be able to vary your workout based on the type of day you’re having.
Here are a few of the audience questions and his responses:
Is there an advantage to vegan/vegetarian diet?
For the average everyday person there is no advantage to being vegan or vegetarian. Those diets are advantageous only for specific physical conditions, like people who have high blood pressure, blood sugar issues, or a hereditary predisposition for certain health concerns.

I have an active job so do I need to work out?
The professional recommendations  are 300 minutes of  light/moderate exercise per week or 150 minutes of high intensity exercise per week.

There were some different types of exercise he mentioned that you may want to add in if your job did meet the 300 minutes of light/moderate exercise recommendation, so check with Mr. Colby Ebanks for the specifics.

The next speaker of the evening was the one and only, the original WWW male speaker, Frank Demeno.

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He began by asking the audience what do you think of when you hear the words ‘financial plan.’ Some of the responses from the audience were

  • Saving money
  • Investing
  • Retirement – IRA/401K
  • And surprisingly, Life Insurance (the topic which Frank was going to speak)

The audience member who mentioned life insurance had a personal story which I found moving. Her family thought they had done the right thing in purchasing term life insurance for her mother. Unfortunately, however, her mother outlived the term &  they only received $1.57 when she died.

People are often sold on term life insurance because of it’s low cost and don’t think about the reality that the majority of these policies expire without paying out (i.e. you don’t die during the term). The common phrase is to ‘buy term & invest the difference’ which is a good idea until you insert people. Americans don’t tend to invest the difference; this is a nation of consumers. That’s why a permanent life insurance like an indexed universal life policy is like a better strategy.

But permanent life insurance is too expensive?
Is it really? Yes it costs more but you can’t outlive your policy as long as you make those monthly contributions and you build cash value. Cash value that you can use tax-free, whereas with the other investment options (savings and retirement plans) you’re paying taxes continually or when you need the cash during retirement. What’s more expensive: sacrificing a little bit now to have a lot later or being in dire need later during your retirement years or during the turmoil of losing a loved one?

Well I’ll just buy term and be very dedicated about investing the difference to build up savings for myself and my family.

Life insurance builds a financial future by saving money, but you get the estate up front. An indexed universal life policy is like buying term and having the insurance company invest the difference for you. But while that investment is growing, if you happen to die your family still gets $250,000.

If you had to spend $70,000 now for a quarter million dollar estate, could you pay it? Most people would answer “No.”  Well, how about if we do it the American way & set up a payment plan $175 a month?

Now if you tried to save $175 each month, how long would it take you to get to $250,000? Frank had the audience calculate it and it would take about 119 years. So let’s say you get the inexpensive $250,000 10 or 15 year term policy and save $175 a month. At the end of the term, 1) you don’t have a $250,000 saved and 2) you no longer have a life insurance policy that pays out $250,000 on the event of your death.  Now you’re 10 or 15 years older making the next term policy a little more expensive and maybe challenging your monthly $175 savings plan. Which do find to be the more sound path to take?

 The last point Frank made this evening was if you take a 1 year old & create a $250K policy, they would be a millionaire by their sixties. So grandparents instead of that trip to Disney World, contribute to your grandchildren’s indexed universal life policy.
Ladies, if you’re in the Jacksonville area be sure not to miss June’s Wine, Women & Wealth seminar with summer travel tips and how to create your own pension. Check back for more details.
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“I Want to Start My Own Business” Day

Today is “I Want to Start My Own Business” Day. If you’ve followed this blog, you’re familiar with our Divorce Your Job & Keep the House series. If not, don’t worry because we’ll be reposting them starting next week Friday. But to intro the reboot we want to recognize this special day and share this wonderful article written by Ben Guinter on figuring out what business to start.

While we recommend starting your own financial services business due to the incredible opportunity that exists because of the unique set of circumstances that exist, we know that
isn’t everyone’s dream. So see the full article below for tips on how to find your idea and move forward.

Watch the video to find out 7 things that make a financial services business a great idea.

Source: Chapter 12: The 7 Elements of an Ideal Wealth Building Opportunity — Wealth Wave


September 11th is “I Want to Start My Own Business” Day

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.b0Et8kJ9.dpuf
If you’re looking for something to do today then stop procrastinating because it’s “I Want to Start My Own Business” Day! If you’ve ever said that statement before, today is the day to take your first step toward that goal! Let’s get right into celebrating “I Want to Start My Own Business” Day!

WHY IS THIS A HOLIDAY?

Well, think about how many times you’ve heard people say that phrase before… there’s a reason why it’s in quotation marks. 😉 People say it all the time and never act upon it, whether or not they have a strong desire to own a business or not. They mention it and forget about it before taking a step toward that goal. So sure, we could just spend today pointing our fingers at procrastinators or we could make it a day of action where you finally put into play a plan on how you’re going to reach your goal of running your own business. It can be a struggle to get started but if you don’t have a plan to achieve your goal then it’s just a passing dream. And if it’s really something that you want, you’ll just end up beating yourself up over not taking any action. But if you were to at least look into what it would take to get started, write out your definite goal and start mapping out your steps toward it then you’ll have a new purpose in life.

You won’t be a procrastinator, you’ll be doing what you want and before you know it you’ll have as much freedom as you desire. Can you imagine what it would be like to be your own boss? You set your hours, you decide what work you want to do and give the rest to your employees. Image what it will feel like to reach your goals! Just don’t abuse your power. 😉

HOW TO CELEBRATE

So, how can you celebrate today? Well, if you are one of those people who really do want to start their own business then your first step is to write down your goal. What is it you want to do with your business? What product or service are you going to offer? How are you going to make it unique? When you get it on paper you can start to mold it into exactly what you want your future business to become and it will be a constant reminder every time you see that paper. The next step would be to write out a plan of action. How are you going to reach that end goal? What are the steps you need to take to ensure your business succeeds? What kind of resources are you going to need and who can help you along the way? You can break these steps down to the simplest of tasks and put them in order so you know what you need to do from start to finish. And by the time you’re done you’ll know exactly what lies ahead of you. Can you guess what the next step is? DO IT! You have your goal mapped out, you know how you’re going to get there and now all you have to do is actually start doing what you planned to do. If you broke the steps down into individual tasks then just start trying to tackle a task a day or each week. Stick to it even when you are a little discouraged and you’ll have your business up and running before you know it! Have a great day and I can’t wait to see the grand opening of your business!

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.1z1FR93G.dpuf

Money Mistakes to Avoid – 1

If you’re over the age of 18 it’s likely you’ve made some mistakes with your money. Even I have made some because let’s face it no one is perfect. So we’re starting a new series on the money mistakes you want to avoid if you haven’t made them yet.

Mistake #1: Not saving from an early age.

By gringer on Open Clip Art Library. (Created by 'gringer' on Open Clip Art Library.) [Public domain], via Wikimedia Commons

First let me state this mistake is not always our own to claim. I strongly believe that anyone who has a baby should make their first outing into the general public include a trip to your local bank or credit union to open at least a savings account for the child. So if you didn’t have one as a child, this is one time you can rightfully say it is your parents’ fault.

Now I understand some parents become parents unexpectedly and that $25 you need to open an account needs to spent on diapers, formula and all the other necessary baby paraphernalia. That’s when taking it old school and getting a piggy bank to save that spare change will help get you there.

Once you have the account opened for your child, create a regular savings plan. Determine what amount you can reasonably deposit into the account on a regular basis. Then stick to it! The great part about starting this savings plan for your child is that they have a longer amount of time for the money you deposit to grow, no matter how small the amount. I recently had the opportunity to help a business partner grasp compound interest by stating, ‘You’re earning money (interest) on free money (interest)’.

Compound interest Einstein quote
Listen to the genius..

Once you’ve started your child off saving early, it’s important that you include them in the process when they are ready. There’s no set age for this as children all mature differently, but it can be as simple as teaching them what change in your local currency looks like so that when they spot some carelessly discarded on the ground they know to pick it up and put it in that piggy bank you got them earlier. From there you can teach them how to count it, show them how to deposit it in their account, and start helping them to understand how to read their bank statements. So far no complicated math involved.

Oh but there will be some…

But it’s simple Math, something you can use for your own savings no matter when you started and that you can teach your children once they learn how to divide. To get a general idea of how long it would take to double your money simply from interest alone, divide 72 but whatever interest rate their account earns. For example, a savings account earning 1% (one of the highest rates we could find for a savings account btw) would double in 72 years [72/1=72]. Just one more reason it’s important to start saving early.

Of course since you’re adding money to the account it won’t take quite as long to see your money double. But let’s say you want to earn more than 1%. Up until this point we’ve only been looking at regular savings accounts and we haven’t mentioned a specific savings goal. Let’s talk saving for retirement now. Once you have a couple of hundred dollars in that savings account it’s a great idea to go ahead and open a Roth IRA at an early age. That concept of compound interest applies to those accounts also, they can be opened for children, and require relatively low initial deposits, some as low as $100. There are other benefits as listed in this Investopedia article. Talk to your financial professional for more details.

Check back in 2 weeks for another money mistake.