A PLACE TO LEARN THE BASICS OF FINANCIAL MANAGEMENT – BY WOMEN FOR WOMEN

Archive for the ‘Women’ Category

Gender Lens Investing, Part II

lensfunny

Let’s continue together on our journey to learn about this option of gender lens investing.

Investing through a lens is not a new concept. I first experienced it as a financial advisor when socially responsible investing became more popular. Some people are more driven by their social conscience than by the overall rate of return on an investment.  For them, using a “lens” or screening process of the companies in which they invest became the solution.

I see gender lens investing as an extension of socially responsible investing. So it helps to first understand the more established investment option called socially responsible investing.

A socially responsible investment is the result of screening publicly traded businesses based on certain criteria which seek both financial gain and social good or benefit.

Companies are evaluated and selected based on certain criteria. Some of the common criteria evaluated through the lens are:

  •  Support of sustainability of the environment through corporate policies and actions.
  •  Corporate commitment to workforce diversity in training and promotion   opportunities as well as to fair workplace practices.
  • Companies which avoid certain industries, such as those involved in weapons, alcohol, tobacco, pornography, and gambling.

I am writing a post for a blog. The intent is to keep it short and stick with the basics. If socially responsible investing interests you, please learn more through your financial advisor or by simply googling it on the web. There are now many companies offering socially responsible investing. Among them is a company called Pax World Funds. They are part of the story of gender lens investing and a partnership with an organization called Ellevate.  More next time!

Debra Hadsall

http://www.ffptalk.com

(This information is designed to educate you about basic financial management concepts. Questions relevant to personal finances specific to the individual should be address to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability loss, or risk which is incurred as a consequence directly or indirectly from the use and application of any contents of this work.)

financialFreedom_book

To order my book, please click here

Financial Freedom Party for Women

ustpopic

Today’s daunting task, calling the U.S. Patent and Trademark Office to figure out what the letter they sent me about the Financial Freedom Party logo actually means.  20 years as a government employee and 15 as a financial advisor, and even I can’t figure it out.  Much prefer meeting with women and sharing financial education than dealing with trademark issues, but being the owner of a “mark” is pretty awesome.  Now to fax off what they want….this time.  Changing how women learn about money is sometimes just a bunch of boring detail work, but so worth it!

Debra Hadsall

http://www.ffptalk.com

financialFreedom_book

My Monkey Mind- Women in Commerce, Marijuana and Shades of Nancy Botwin

monkeys

My monkey mind postings relate to Buddha’s description of the human mind as being filled with drunken monkeys, jumping around, screeching, chattering, and carrying on endlessly. These postings come from my monkey mind.

Yesterday my Monkey Mind connected Nancy Botwin (a fictional character), ways to improve financial lives by making more money, and women in commerce in the legal pot industry in Colorado.  I am not posting about whether or not legalized marijuana is appropriate, only about where my Monkey Mind took me recently.

Colorado has legalized the growing and sale of recreational marijuana, with limitations.  I lived in Colorado for most of my adult life and have family and friends there.  Recently I was staying with my  adult son and he opened the freezer, took out a small bag of marijuana, and asked if I wanted some.  Then we laughed.  Pot has never been my deal or his. The bag has been there for six months.  The humorous part was he was having this conversation with his mother and all of a sudden that which was forbidden and usually hidden, was now OK (limited amounts of course) and out for all to see.

He and I have our mother and son bonding over cable TV shows like Sons of Anarchy, Breaking Bad, Nip Tuck, and my all-time favorite, Weeds.  If you don’t know, Weeds is the  fictional story of Nancy Botwin, a widow with two children and a big need for big income.  She is not a perfect person and her decision to deal weed is one of love, violence,  greed, corruption, survival, decisions, sex, and commerce.  It is also the story of a woman in an industry run by men and a mother’s concern for providing for her children.  Quite an interesting combination.

The last episodes show how over time she made the jump from being a criminal dealing drugs to a woman of commerce with a chain of very successful stores selling pot edibles.  How did this happen?  The story line put her in a world where weed had been legalized.  I loved the ending since it showed Nancy as the owner of a very large, very legal, and  very legitimate business.  My son didn’t share my enthusiasm.  I suspect he was looking for the crazy violence prone Nancy to rise again.  Instead it was a story of  closure and commerce .

This week I did a posting titled Three Ways to Improve Your Financial Life.  One of these ways to make more.  I am always fascinated by how we as women find ways to make more for ourselves and our families.  So, when CBS This Morning did a segment on women in Colorado who are in the  legalized marijuana industry, are making money, reaching out to each other, and getting a piece of the action, I thought of Nancy Botwin and the idea of making more money.

In the  CBS video, a woman is shown in a commercial  kitchen  preparing pot goodies.  She is not a Food Network star or a well-known chef, the way most women in kitchens come to us via our television.  I doubt that she is highly paid or wealthy…yet.  She is a woman doing commerce in the legalized pot industry in Colorado. I thought, finally a way for women who can cook and/or grow things and also run a business to make a real living. This is big business and one where women are already finding a way to connect with other women to define the industry and benefit financially from their efforts. The segment can be viewed at http://www.cbsnews.com/news/making-the-marijuana-business-women-friendly

I remember that after I viewed the final season of Weeds, I mentioned to my husband that maybe I should get into the pot business some day when it is legalized more widely.  He laughed and reminded me that most plants I care for die and that although I make amazing cookies, my long-term ability to whip up delicious pot treats doesn’t exist.  So I will just watch from the sideline as those pioneering Colorado women lead the way.

Until next time.

Debra Hadsall

financialFreedom_book

 

To order my book, please click here

Great Way to Teach Children about Income and Expenses

Moms are the best and I love it when they teach life skills in a fun way.  Check out how one mom is teaching children about money while making it a fun project.

Just click here to learn more.

 

Debra Hadsall

financialFreedom_book

To order my book, please click here.

http://www.ffptalk.com

http://www.financialfreedomparty.com

 

Women Should Plan to Live to 100-Really??

100BirthdayCake_250I read any and all writings about women and money that come my way.  This one makes us think!  Just click here to learn more about the possibility of living to age 100 and how to plan for it.

Enjoy!

Debra Hadsall

financialFreedom_book

To order my book Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition, please click here.

http://www.ffptalk.com

Women and Divorce, When Emotions Collide with Finances

Divorce

Valentine’s Day is tomorrow.  It is one of those marketing opportunities for businesses to encourage us to show our love and affection for the special person in our life by buying gifts, going out to dinner, or doing something celebratory.  It usually involves a couple.  I don’t think Valentine’s Day was designed for singles.  In fact, lots of folks find Valentine’s Day to be less than fun and charming.  Relationships evolve and change, marriage is not as popular as it once was, and for those who do marry,  the divorce rate remains high.

I wasn’t thinking much about Valentine’s Day when I read the article Divorcing Women, Five Signs You Might Need a New Attorney. Please click here.  The article reminds us about the importance of shifting from seeing a divorce purely from an emotional aspect to a practical one.  We need to be conscious and focused when working on the details of how things will work and be settled.

Thinking about how Valentine’s Day isn’t fun for many who are going through divorce and reading the article reminded me of a woman who called me asking for help.  I had a listing in the phone book under financial services and women.  This had an unexpected result.  I often received phone calls from women looking for social services (such as battered women’s shelters), wanting counseling about family matters, looking for help in starting businesses, and a variety of other topics.  This woman  was concerned about how her marriage was ending and she couldn’t understand why someone didn’t make her husband stay.  She and her husband had children.  He had business interests and had been quietly moving the assets with the intent of hiding them from her.  She didn’t work outside the home.  It seemed to her that there was someone else in his life, but she was only guessing.  When I explained to her that she needed to seek legal advice, she told me it wasn’t a problem, her husband had a lawyer and she could talk to him.  I explained that she needed a lawyer to represent her, someone whose interest was in protecting her, not in protecting her husband who seemed to be doing a good job of that already.  It was a heartbreaking conversation.  She wondered why nobody seemed to care about keeping families together and was there  someone who could help fix this.  I suggested seeking out counseling from clergy or a licensed therapist..  That option was rejected.  I took a deep breath and told her that she should talk to a lawyer because he or she would understand the situation without emotion and help her to negotiate as an equal in the situation.  Separating emotions from finances is always difficult, but really challenging when it involves the dissolution of a marriage, children, and denial.

It has been many years since that telephone conversation.  I am hoping  the caller found an attorney who could help her navigate the circumstances of the end of her marriage and move on to a happier time.  It would have been hard for her to see a better future on that day we talked, but I am hoping that tomorrow she will be having a wonderful Valentine’s Day celebration with someone special.

valentines

Until next time

Debra Hadsall

http://www.ffptalk.com

To order my book, Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition, please click here.

My Monkey Mind-Irrevocable Life Insurance Trusts (ILIT)

monkeys

My monkey mind postings relate to Buddha’s description of the human mind as being filled with drunken monkeys, jumping around, screeching, chattering, and carrying on endlessly. These postings come from my monkey mind.

Something which happened about 10 years ago has been in my monkey mind.  I guess listening to my friends talk about elderly parents must have triggered it.  So here goes….

As part of my financial services business I had a listing in the Yellow Pages under resources for women.  It was the best I could do since there wasn’t a separate listing for women and finances.  The result was unexpected.  I received random calls from women in difficult life situations ranging from physical abuse, unwanted divorce, requests for money to start  businesses, and sometimes just a reality check on some financial decisions a spouse or significant other had made without checking with the woman.  After these calls continued , I became a connection between these women I never met to non-profits, social services providers, free legal advice, and government agencies who could help.  I learned a bunch of things which reached beyond financial advising.

One day I received one of those calls from an elderly woman who asked me what the difference was between term insurance (no cash value) and universal life insurance (which has a cash value).  The real reason for the call had to do with the fact that her late husband had established an Irrevocable Life Insurance Trust (ILIT) with a cash value policy and she thought he had made a bad decision.  I was curious to hear all the details so I went to visit with her.

In my Financial Freedom Party for Women®, A Little Book about Money for Women, Workbook Edition, I cover the differences between term and cash value policies.  To put it in a couple of sentences, term insurance is a very cost-effective way of getting life insurance and is appropriate for most people.  The premium goes towards the insurance cost and the policy runs for a certain period of time, such as 10, 15, or 20 years.  A policy with a cash value, such as universal life or variable universal life is more complicated and more expensive.  Some of the premium goes to the cost of insurance and some goes into investments offered through the insurance product.  The policy is considered to be “permanent” life since it is not restricted to a certain length of time.  My experience is that these policies (UL and VUL) are often considered upon guidance from an estate planning attorney when creating ways to provide for beneficiaries and reduce estate taxes.  This is a very generalized overview and to learn more please ask your insurance agent or do your own research on-line.

The control of the ILIT rests with a trustee, not the beneficiary (in this case the lady who called me).  This is done because of the estate tax benefits.  You can learn more by clicking here.  As with most people, she did not like knowing she had “all this money”, yet couldn’t access it when she wished.  I came to learn that was part of the plan.

I shared this insight with the lady. Apparently I was the first person she met who sat down and explained to her how this ILIT all worked. I was also the only woman advisor/insurance agent she had ever met.  She found me through my Yellow Page listing.

I learned that she was unhappy because the ILIT controlled her spending.  She had to ask a young man( who was the trustee) for any money which was needed  in addition to the monthly payment which had been established.  The goal of the plan was to keep her from running out of money.   I learned that her ILIT  did contain a universal life policy, the trust was created by an attorney with involvement by the now-deceased husband, and seemed to be in good order and in her best interest.  The things the trustee had told her were true, if she did not control her spending, she ran the risk of outliving her money.  In this situation, the planning was really in her best interest and when we finished our discussion, she, for the first time, realized it.  We talked about other ways for her to finance the expenses she wanted to incur including having a roommate in her spacious home, moving to a smaller one, or cutting expenses elsewhere.

I never heard from her again, but I learned a lot.  I saw how the appropriate cash value life insurance policy can be an integral and useful part of estate planning and a way to take care of beneficiaries upon the death of the insured.  My passion for working with women to understand their finances was re-kindled.  I knew that if someone had taken time to speak to this lady in language she could understand, her life would have been much better.  Sometimes financial professionals forget that it is not all about the numbers,  it is about how the numbers improve the lives of clients and getting the  clients to understand that.  It also reinforced my belief that the best time to learn about finances is not when your spouse or family member has died and not there to explain things.  Learning the fundamentals as a young person will make things a lot easier throughout her or his lifetime.

This event has stayed with me.  My insurance career involved term life insurance and that worked well for my family and clients. The ILIT was a good example how a cash value policy can be beneficial in estate planning and for beneficiaries who may need some additional structure and measured control over assets.  Each situation is different and this posting is not intended to provide you with personal advice on your estate planning, financial planning, or insurance needs.

Until next time.

Debra Hadsall

logownedy (2)

www.financialfreedomparty.com

www.ffptalk.com

Tag Cloud

A Knight's Tale

Perspectives by James Judson

Emails to God

Journaling through scripture one passage at a time.

Financial Freedom Party for Women (FFP)-Talk

A PLACE TO LEARN THE BASICS OF FINANCIAL MANAGEMENT - BY WOMEN FOR WOMEN

Covered in Beer

by Thomas Cochran

this is... The Neighborhood

the Story within the Story

Retirement Plan News

Retirement Plan News You Can Use

Mustard Seed Budget

God's blessings in your life and ministry

If there is any magic in this world...

The world can be amazing when you are slightly … strange!

Marriage Is A Commitment

Helping people find solutions to stay married.

First You Dream

Let's Talk about Money with a Christian Perspective