Pearls of Wisdom- Financial Literacy 101
THE WEALTH OF KNOWLEDGE WRAP UP
“PEARLS OF WISDOM”
On Aug. 1, myself and Xavier Angel, ChFC, CLTC, a fellow MassMutual financial professional & advisor from my office, presented “Pearls of Wisdom”, a financial literacy seminar for professional women and women business owners. We held this free seminar at Zeke’s Restaurant in Old Metairie and proved complimentary three-course dinners for all of the ladies who attended.
Xavier and I, along with the help of estate planning attorney Laura Fine, presented three life scenarios where good financial planning and literacy would be extremely important. These scenarios were represented by three women at different points in their lives. The ladies (life scenarios) represented were a married twenty-something soon-to-be mother, a thirty-something CEO of a large business, and a thirty-something entrepreneur /business owner who was a single mother. The seminar attendees were allowed to listen to these women’s potential issues and ask questions about how the scenarios could personally apply.
THE TWENTY SOMETHING MOTHER-TO-BE wanted to explore how she could plan for her unborn child’s future, as well has the future for her and her husband. The solutions discussed included a college savings plan for her unborn child, retirement planning for her and her husband, disability income insurance for both her and her husband (both were professionals), life insurance, trust funds, and a will with a power of attorney in case something happened to either parent.
CHECK THE NUMBERS: If you began saving $100 each month for your child’s tuition when they are born, by the time they are 18 years old, you will have saved $21,600. No let’s say you live in Louisiana (or southern region of the US) and you are fortunate enough to have a two parent household, where the average income falls between $57,000-$100,000. By the time the child reaches 18, it is estimated that you will spend right under $300,000 on this one child and at least $78,000 will go toward their public education at a university or college.
Visit here to calculate how much your child will cost.
THE CEO began by explaining a close encounter, a car accident that almost left her out of work for some time. She was a young woman who had become very successful and wanted to know how she could best protect what she’s worked so hard to achieve, including what she would have to fall back on in the case that she was disabled. Solutions included: retirement planning, disability income insurance, a long-term care policy, and a will with a power of attorney. Also, since she had no children, a charitable trust was presented so that she could lessen her taxes.
DID YOU KNOW: A woman in her prime working years is much more likely to become disabled – permanently or temporarily – than a man? A 35-year-old woman is 42% more likely than a man to become disabled before age 65.
CHECK THE NUMBERS: Did you know that your most important asset is your ability to earn income? Well what happens if you find yourself disabled? Do you have a second income to fall back on? Do you have savings, or are you living paycheck to paycheck like 71% of Americans are today? For example: A 35-year old worker with an annual salary of $50,000 who experiences a permanent disability may lose up to $1,500,000 in potential earnings by age 65!
THE FEMALE BUSINESS OWNER was a young woman whose business was beginning to be very profitable and she wanted ways to protect her business, as well as hopefully leave the business to her young daughter. Solutions included: retirement planning, disability income insurance, college planning for her daughter, business succession planning, life insurance, a buy-sell agreement, a detailed operating agreement, a will with a power of attorney and trust provision for her daughter.
DID YOU KNOW In Louisiana, if you were to die and you were a partner in a business, that it is possible that your spouse (if you did not do the proper planning) could become an owner and partner in the business with the remaining partners?
Whether it be because our attendees were not yet parents, had just begun their careers, or simply never wanted to have to consider the unthinkable, there is no doubt that this seminar triggered many questions they had not considered before. It is never too early to develop good financial habits and put together a fluid financial plan. However, it can eventually be too late. "I don't make enough money to see a professional about financial planning" is the biggest misconception in our business. Good financial advisors will work with anyone who is willing to plan for their financial futures. Find a financial professional who will work with you and grow with you as you grow. Xavier and I will be presenting several more seminars for professional women and female business owners this year where more scenarios will be covered covered. Be sure to check in for upcoming seminar dates.
You also listen to me on Old School 106.7 every Wednesday morning during the morning drive between 8-8:30 a.m. for the weekely financial planning tip.
For inquires about having a seminar held at your place of employment or a free personal financial consultation contact:
K. Orian Williams, J.D.
Financial Services Professional
Fleur de Lis Financial an agency of MassMutual
Follow on Twitter @KDotFinancials