Shake Your Money Maker

www.chappelwood.com
www.financialdiva.com

Back in the 1970's, as an up and coming Financial Diva, it wasn't out of the ordinary to occasionally find myself in an establishment with adult refreshments and some great music you could dance to. Just imagine a disco ball and the soundtrack from Saturday Night Fever and that should provide you all the mental image you can handle. I had this friend who loved to say, "Let's shake our money makers tonight!" That always made me laugh, and that girl could dance.
Since those halcyon days of polyester and sequins, I've hung up my dancing shoes, but I'm still thinking about money makers.

The most valuable asset you will ever possess is your ability to generate an income. More valuable than your home, your car, or any high dollar toy. Consider the fact that most of us will work for 30 to 40 years. If you average $50,000 per year in salary, which is a pretty low average for a lot of you, that's $1.5 million to $2 million in potential lifetime earnings.

The Social Security Administration says that 1 in 4 Americans who are 20 years old have a chance of
becoming disabled by the age of 67. What happens if you are in your 30s, 40s, or 50s when this happens and have many years to retirement? Once you exhaust your paid leave, how will you generate an income if you can't work? The answer is Disability Insurance.

Short-term Disability Insurance will protect you for six months or less, while long-term kicks in after the short-term period ends. It will not replace your entire income if you are unable to work, but rather a percentage - say 60% to 70%. Depending on the type of coverage you elect, your age, and your health, it can be extremely affordable compared to the alternative of having no income. There are a few things to consider when choosing a disability policy:

• Does your employer offer Disability Insurance as part of its employee benefits package? If not, an individual policy from your insurance company will work just fine.
• What types of disabilities does the policy cover? Total or Partial? Permanent or Temporary?
• Is coverage for Own Occupation or Any Occupation? Own Occupation is better for you since you only have to prove you can't perform the duties of your own job to receive benefits. Any Occupation is more restrictive as you have to prove you can't perform duties of any job to receive benefits.
• What percentage of your income will the policy replace and for how long?
• What is the elimination period? This is the period of time between when your disability starts and when the policy begins paying benefits. The longer you wait to receive benefits, the cheaper the coverage will be.

We all feel invincible when we're young and in good health But anything can, and does, happen. Part of managing your finances includes protecting yourself with insurance. There is no more important thing to protect than your money maker.
Live Fabulously - Diva

Thy Will Be Done

www.chappelwood.com
www.financialdiva.com

I'll tell you what I hate about death...it's so permanent! Once you're gone, you're gone. That's it. Kaput. No do overs.

But through the miracle of modern financial planning, there is a way you can still get your way even after you head off for that great fashion show in the sky. It’s called estate planning and it’s all the rage.

Now let me share a revelation I have come to learn after more than 25 years as a financial advisor.

100% of those reading this, and writing this, will die.

I know, it's shocking. Further, I have also come to learn that no amount of avoiding estate planning will avert death. I’ve found nothing will do that, though I did hear drinking a bottle of Dom Pérignon while binge-watching all six seasons of Sex and the City in one glorious weekend can add significant years to your life. But I digress.

Without a plan of your making, your estate will be subject to your state’s intestacy laws. If you elect to use this “wonderful” government sponsored estate plan, you do not get to choose who receives custody of your minor children. You have no say over who makes financial or medical decisions on your behalf if you become incapacitated, including whether or not to continue life support. You lose the right to pass on your values with a legacy to charities you hold dear. Simply put, without an estate plan, you choose to allow the state and courts to determine what is best for you and your family. I’m not here to make any political statements, but I think we can all agree that any plan of your choosing will be better than one created for you by a bunch of legislators and judges for whom you may or may not have voted.

For an investment of a few hundred dollars or less, depending on your needs, you can have a Will created through a qualified attorney. In some states, it’s even legal to hand write your Will on a napkin, piece of paper, or anything you have handy, called a Holographic Will, though I would advise that you have a Will prepared by a licensed attorney and witnessed by others as appropriate.

Your Will tells the world how your assets are to be divided. But your estate plan also needs to include a Durable Medical Power of Attorney, naming who makes medical decisions on your behalf when you can’t. An Advance Directive, or Living Will, tells your family and doctors how you want life support decisions handled if there is no chance you will recover. This is especially important in making sure loved ones are not faced with the difficult choice of letting you live or die.

You work hard for your money and your family. You may not get to take them with you, but you darn sure can exercise your right to decide what happens to and for them when you shuffle off this mortal coil.


Live Fabulously – Diva

It's a New Year. Time to Sober Up From That Holiday Hangover!

The holidays are over. The relatives have all gone home. The decorations are packed neatly in their tubs or boxes and wait in the attic for another year. But sometimes, it’s so hard to let go isn’t it? You can still hear the Christmas carols in your head, the aromas of cinnamon potpourri may still hang heavy in the house, and all your favorite stores are welcoming you back to take advantage of the post-Christmas sales. This is called the Holiday Hangover.

But something else is about to happen that will shock you back into reality. Soon, you will receive a piece of mail that will remind you of the great time you just had, but that won’t be any fun. It’s your credit card bill, and if you are like 14 million other Americans, you’re still paying off your Christmas bills from last year!

How can you make sure that Christmas 2015 will be merry and bright for your bank account? Take the Diva’s advice:

1.     Make a plan to pay off your credit cards ASAP!

Plain and simple, you can’t build wealth and peace of mind with debt crushing you. Don’t let that $20 sugar cookie candle you bought for your hairdresser be a 12-month loan. It’s $20! Pay it off.

2.     Set a budget now and stick to it.

This really goes for your entire household, but if budgeting seems scary or intimidating, then start small. Build a Christmas budget and don’t go over it.

3.     Open your Christmas Club savings account this month!

Most financial institutions offer some variation of this idea. Take that budget you just made, divide it by 12, and set aside a little money each month to go to a designated account for your Christmas giving this year. Paying with cash avoids needing credit all together.

Christmas is 12 months away. It comes the same time each year, which makes it easy to anticipate and plan for. Save yourself stress, time, and money later by saving a little now.

 Live Fabulously – Diva