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

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

Advertisement

This is a re-posting of an earlier blog.  Enjoy and please share!

logownedy

Today, while channel surfing, I was lucky enough to land on the HBO channel which was showing a documentary about Gloria Steinem.  Lucky because most of the attention on other channels was focused on current media favorites, the Kardashians.

I used to assume that most women know about Gloria Steinem, Ms. Magazine, Bella Abzug, and others in the women’s movement which gained momentum in the 1970s.  Whatever you may have felt, or still feel about this time of great change, the results of the efforts of Gloria Steinem and others around her have had a significant impact on the personal, professional, and financial lives of women.

Recently I have begun to wonder if the young women of today are being taught about powerful and successful women who have helped us to arrive at where we are today.  Have they heard the names of Gloria Steinem and Oprah Winfrey as often as they experience minute-by-minute reporting on the Kardashians?

Gloria Steinem is now in her late 70s and it is understandable that not all young women have studied much about her, yet.  However, I just assumed that everyone who is old enough to watch television or surf the internet would know about Oprah Winfrey.  Not true.  Recently I was visiting with a group of young women who are in high school.  I discovered they really don’t know who Oprah is, what she has accomplished, or even how rich she is.That is interesting since rich is usually something teens care about. This lack of awareness of Oprah was a big surprise.  Fortunately I have listened to Oprah’s story often enough to recite it to them.  After that, I started bringing a few copies of O Magazine so the students could learn more.  In another conversation, I discovered that each of them could immediately identify Kim Kardashian and knew all about the man in her life, Kanye West.  Major reality check for me!

It is exciting that the blogosphere allows the writer to reach out to people of many generations all over the world.  If you are reading this and find that you are clueless as to who Gloria Steinem is, or what she stands for, please just “google her” or even watch her story on HBO.  Perhaps you have only a passing understanding of Oprah Winfrey’s life and accomplishments. Once again, a quick google will teach you a lot. 

I am grateful we are no longer living in the times when Gloria and Oprah were starting out and leading their own special brand of change for women, but I do know it is important to understand the past to appreciate today!

Until next time.

Debra Hadsall

http://www.financialfreedomparty.com

http://www.ffptalk.com

A Billion Women

Looking for a very insightful and forward thinking article about women?  Just click here to read from Bloomberg.com an article titled”  A Billion Women Are About to Transform the Global Economy.”

Enjoy.

Debra Hadsall

registeredlogo

http://www.financialfreedomparty.com

www.ffptalk.com

mansions

I just finished reading the book “Empty Mansions” by Bill Dedman and Paul Clark Newell, Junior.  The title says it is about “The Mysterious Life of Huguette Clark and the Spending of a Great American Fortune”.

Any book with the words fortune and spending just calls to my financial education mind.  It would seem that a book about wealth would be all about what we call “living the good life”.  I learned that the title refers to the empty properties Huguette continued to maintain even though she didn’t live in them.  Interesting.

This book is about a woman and her story which revolves around extreme wealth, business, family owned businesses, decision-making, relationships, trust and distrust, and how money can be both a blessing and a curse.

Personally, it took me a long time to learn to deal with money in an unemotional manner.  The main character, struggled with that for a really long time as she was born in 1906 and died in 2011. She dealt with a lot of emotions and they often guided her decisions.  For Huguette, these decisions usually involved  large sums of money. The world changed radically during her lifetime and she also outlived her close relatives.  Some of the change was more than Huguette wished to deal with, so she created a lifestyle which was strange and unconventional to most ordinary (and even wealthy) people.  Her needs for security and safety as a wealthy person played a big part in how she spent money.  As an elderly woman  it appeared that those who were caring for her may have taken advantage of  her financially, even though the medical professionals found her competent.

It is hard to imagine the majestic homes her father created with his wealth  and the mind-set of  Huguette who was born into such a lifestyle and never knew anything different.  Still, I was struck by the similarity between the decisions she had to make about  businesses, advisors, and income management, and those made by the rest of as we manage our personal finances or make lifestyle and financial decisions about the senior citizens our lives.

Was Huguette happy living what most would see as “the good life”?  It is hard to tell.  That is the mystery which remains in her interesting life story.

Until next time.

Debra J. Hadsall

womenmoneyblog

When I was a financial advisor, I learned that the time between Thanksgiving and January 1st was going to be a slow time for me in terms of working with new clients.  Yes, existing clients were often on vacation and using that time to catch up with me and to check in about their accounts and plans.  The rest of the world seemed to be waiting until the first of the new year to really think about their goals, dreams, and how their finances could be changed or improved to meet them.

Every year about this time I would print out a new list which showed the maximum contributions allowed in various types of retirement accounts.  In reality, most people don’t contribute the maximum and often they just look at the list and give up.  So, just  remember, these are the maximums.  You can contribute less and work towards your goals.

To see the list for  2014, please click here.  Good information to know and to discuss with your advisor or with the person who is knowledgeable about your company or organizational retirement plans.

Please share with others.  As I often say, don’t always assume everyone knows what you know or takes the time to access

Until next time.

Debra Hadsall

logownedy (2)

shopping2

I clearly have shopping on my mind.  Really, who doesn’t?  First we have 24×7 advertising and reporting on “Black Friday”, “Cyber Monday”, and an incredible amount of supersized  holiday shopping media blitzes everywhere.  It is, after all, the biggest marketing cycle of the year.  It seems to start before Thanksgiving and doesn’t end until those “after holiday sales” in January.  For those of us who gave up shopping until we dropped, it doesn’t matter.  We get exhausted just observing others go through it.  Then there are always the financial and emotional aspects of all this shopping.  Sometimes a different take on the whole experience can help us regroup and refocus.

Recently I re-posted one of my articles about shopping. It was a start, but some of the most useful and thoughtful guidance I have received came from a sermon.  It became  an important part of how I deal with the craziness of the intense comsumerism of the holidays.  It is a message based on the Christian celebration of Christmas.  The sermon (or message) is called “Shopping for the Glory of God”.  I came to experience this sermon over and over because it became part of the work my friend Emily Mann and I did with creator of this message, Rev. Dr. Marti Zimmerman.   The three of us together collaborated on what developed into a book called First You Dream, A Financial Management Workbook.  The sermon is one of six in the workbook and they all focus on money, consumerism, and faith.  I personally typed  all those sermons for the manuscript, so I am pretty well acquainted with them!

I hope you will take a few minutes to experience the power of Marti’s s words and an alternative view of shopping for Christmas and holidays.  Just click here.

Until next time.

Debra J. Hadsall

logownedy (2)

Diminished capacity includes a variety of symptoms or conditions.  Often we relate them to aging, but it can be in people of all ages due to physical or mental health conditions.  Whatever the cause, when things change in a person’s life as a result of diminished capacity the lives of those around her or him change also.  Not all issues are simply medical ones, many have to do with how a family member or friend can assist.  To learn more, please just click here

Until next time.

logownedy (2)

Debra Hadsall

Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition is now available at amazon.com.  Just click here.

shopping2It seems like a good time to share my FFP Mini-Newsletter which was one of the early posts about a very common subject, shopping.

Please click here and enjoy.  Share with your women friends, your daughters, granddaughters, nieces, sisters, and anyone else who likes to shop!

Debra J. Hadsall

logownedy (2)

Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition is now available on Amazon.com. Just click here.

womenmoneyblog

Nice post and great information from onyourown.org.

If you are just venturing out into the world of  credit and credit cards  please click here for some quick and easy tips which can make life a lot easier.

Enjoy!

Debra Hadsall

logownedy

Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition is now available at Amazon.com

Knowing that many of you have joined my blog after earlier posts were created, I am going to do some re-blogging.  I ask you considering sharing these with the women in your life.  It is important that those of us who understand financial management share what we have learned with others.  During my financial advisory career I heard often from women who said “nobody ever taught me this”.  That is one of the reasons I created the Financial Freedom Party for Women.  Now is the time to teach our friends, children, and grandchildren.  If we don’t do it, who will? 

My book, Financial Freedom for Women, A Little Book about Money for Women, Workbook Edition, is now available at amazon.com.  Just click here.  Now you can just add a copy of the book to your Amazon orders!!! 

So, starting from the beginning we have some background into why I blog.  Just click here.

https://ffptalk.com/2010/05/14/why-blog-about-financial-freedom-party-for-women/

More to come and thanks for reading and sharing.

Debra Hadsall

logownedy (2)

http://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.

this is... The Neighborhood

the Story within the Story

Retirement Plan News

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