Love is Blind, and That’s Not Always a Good Thing

As we come off the sugar high of that most romantic of holidays, Valentine's Day, I am reminded of all the events I've attended where loving couples have dressed their best. Gorgeous women with perfect hair and amazing dresses, and good looking men in perfectly coordinated suits, because the gorgeous woman with them said, "Here, you will wear this!"

As I watch the crowds mix and mingle, couples exchange kisses and glances. Events like this always put us in a mood of bliss and happiness. Love truly is blind, and this is especially true when it comes to money.

Now I’m not bashing relationships and love. After all, I’ve been happily married for nearly 30 wonderful years and just came back from a phenomenal trip to Australia that was an anniversary trip more than a decade in the planning. But consider this – there is no romance without finance! Study after study has shown that disagreements over money are among the most destructive in relationships. When the good looks and romance fade, that $50,000 in credit card debt will still be there to remind of you what a great time you once had.

So how can you tell if your significant other is a financial ticking time bomb? Here are a few signs I’ve picked up on after 25 years of counseling couples young and old.

They never want to talk about money.
Money is a taboo subject in our society, but it shouldn’t be in any marriage or long-term relationship.

They have significant credit card debt, and no discernible plan for getting rid of it.
If you get married, their debt becomes your debt.

They are always borrowing money from others, including you.
Trust me, they will probably never get around to paying them or you back.

They spend more time looking for work than going to work.
If your better half is constantly out of work, that’s either a sign they can’t commit to something, lack ambition, or both.

You catch them in lies.
Dishonesty in a relationship is never good, but dishonesty about money, in my opinion, is a form of infidelity.

They have no plan at all.
Plenty of people don’t have well-built, comprehensive plans for their finances. But someone with no clue about what they want is a disaster waiting to happen.

Relationships are certainly about more than money and I’ve seen couples with plenty of money and no financial troubles have fights that would curl your toes. But if you are in a relationship you think could end in marriage, remember this – marriage may be an institution, but being in a marriage saddled with financial problems will put you in an institution.

Live Fabulously – Diva

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

Women Will Inherit the Earth, and All the Money

In the hit 1993 film Jurassic Park, acclaimed mathematician Dr. Ian Malcolm quips, “God creates dinosaurs, God destroys dinosaurs, God creates man, man destroys God, man creates dinosaurs.” His fellow scientist, Dr. Ellie Sattler famously replies, “Dinosaurs eat man, woman inherits the earth.”

Ok, I’ll admit that gives me just a little smile. I mean, wouldn’t it be just like a group of well-meaning, lovable guys who can think of no better way to use their collective talents than to spend years of research and hard work to recreate a bunch of dinosaurs, who promptly turn around and eat them. I mean, if they really wanted to impress us women, they could just unload the dishwasher once every couple months.

Ladies, while I’m fairly certain that the men we love so dearly won’t disappear as dino-snacks, I’m also fairly certain that most of them are going to die before most of us. Don’t believe me? According to an October 2014 report from the Centers for Disease Control, the average life expectancy of an American female is 81 years, compared to 76 years for a male. The reasons range from the fact that men usually take more daredevil risks to the fact that women are more proactive in caring for their health.

Whatever the reasons, if you’re a woman married to a man, the odds are you will outlive him. This means you will end up with all the assets and need to have knowledge and command of your financial plan.

You need to know how much cash you have and where it’s located. You need to know what retirement accounts you have, their balances, when you can start taking distributions, and their tax implications. You need to know where important documents like life insurance policies are. You and your husband need to have an estate plan with wills that detail the distribution of assets and guardianship for minor children. You also need to make sure you have advance directives and medical powers of attorney in place should either of you become incapacitated and need someone to make decisions on your behalf.

Thinking about losing someone we love is not a pleasant thought, but not thinking about it or planning for it won’t keep it from happening. Having your financial affairs in order will make it easier to grieve the one you’ve lost and be strong for others in your family.

 

 Be Fabulous – Diva

Merry Christmas...Tax Cuts!

Déjà Vu

If I didn't know any better, I would think we only hire idiots to serve in Congress...and I have the highest respect for those willing to serve, after being elected as an Oklahoma Representative to the White House Conference on Small Business.

Writing legislation that a committee - from New Jersey, to San Francisco, to the Midwest - can agree on is no easy task! But with 4000 Top Issues effecting Small Business Owners that was narrowed down to 60, legislation was written, debated, voted on, and submitted to the President to submit to Congress in 4 days, I have little sympathy. Ya heard me right? 4 Days.

Does one Really have to wonder why the American people want successful Business Owners to run for office? I dont think so.

Here goes the Diva being outraged!

* Referring/Calling the "Tax extensions" "Tax Cuts", is absurd.

* Pretending we haven't known for 10 years this was coming up for renewal, is absurd!

* Just because Congress doesn't choose to plan a proper budget or plan for their tax responsibility doesn't mean Americans don't. But we do deserve more than a day or week to do it. Absolutely absurd!

* And for those who want to argue the "Rich", all of you earning over $250,000 per year (believe me, I know a small business owner earning $250,000 isn't rich; poor Congress doesn't even know how a business is managed successfully) can really send in any amount over and above their tax responsibility and have always had that opportunity. A recent quote from Mr. Warren Buffet, "I think that people at the high end - people like myself - should be paying a lot more in taxes...." Nobody's stopping you. Absurd.

Just like during the financial crisis in 2008, Congress didn't act until it was too late for millions of Americans....retroactive...seriously?!

Gold vs. Stocks

To Buy Gold or Stocks, That Is the Question... I Choose Stocks.

If you want to ensure the most money when selling your gold make sure to ask the following questions: "Are you a licensed dealer for gold"? "Have your scales been tested and approved"? "What are you paying for gold"?

Want Warren Buffett's opinion on Gold? Click Here: Forget Gold!

To make sure buyers/sellers are licensed, visit your state's website under consumer credit and look to see for yourself!

Consumer Credit-Oklahoma