Diversify Your Coins: Get Some Life Insurance

 

 

death and taxes

 

Dear Divas and Divos,

I know that quote is kinda morbid but it is at the absolute truth.  That time will come when it is time to move on to heaven. Are you ready for that? Have you thought about what your financial legacy will be?

Answer to question is LIFE INSURANCE!

You should invest in yourself and purchase life insurance.

Q: What is Life Insurance?

A: Glad you asked! Life Insurance is an insurance policy that pays out a sum of money at the time of your demise.

Q: I’m young! Why should I think about that?

A: Tomorrow is not guaranteed to anyone so you should prepare yourself and your family to be able to take care of your funeral expenses. Funerals can become costly so a life insurance policy will offset those costs. ALSO, the best time to buy life insurance is before you turn 30.

It is cheapest in your twenties because your life span is longer than someone trying to purchase life insurance at 50.

Q: What kind of life insurance is available?

A: There is Term, Whole, and Variable Life Insurance policies.

Term Life Insurance is a type of life insurance that pays a benefit in the event of the death of the insured during a specified term. It has a fixed payment during the duration of the insurance term. Most people select 30 or 40 years term. Yes, it is a renewable product. It is the cheapest insurance product but it does not accumulate cash value.

Whole Life Insurance is a type of life insurance that provides lifelong coverage and accumulates cash value. This insurance product will remain intact as along as the premiums are paid on time or up to its maturity date.  It is significantly more expensive than term life insurance.

Variable Life Insurance is a type of permanent life insurance, because the death benefit will be paid if the insured dies any time as long as there is sufficient cash value to pay the costs of insurance in the policy. There are 3 parts to variable life insurance: death benefit, cash value, and premium. This is probably the most expensive of the three but there is more opportunity to gain more returns on this financial products.

Q: What are some companies that offer life insurance?

A: There are many companies that offer life insurance. Here are just a few:

State Farm

Colonial Penn

AllState

Mutual of Omaha

Mass Mutual

 

Protect Yourself. Protect Your Family. Buy Some Life Insurance.

Sincerely,

Miss Diva Dollars

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Money Talk over Dope Beats: The 4:44 Album through my Diva Dollars lens

Happy Monday Divas and Divos!! I’m sure everyone has the new Jay’z album 4:44 on repeat. I know I have! Especially since it was released on Apple Music last week. *Disclaimer* I have been a Jay fan since I was … Continue reading

I won the Powerball! Now What?

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Let’s play the “What If?” game? What if I won the Powerball which is listed at $900 million with a cash value of $558 million. Either way, that is a lot of money! Disclaimer: I am NOT endorsing or condoning playing the lottery. That is your own choice that I will not judge you on.

If you were to win the Powerball; what would you do with all your winnings? Who would tell? If it was me… In the words of Keith Sweat..

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But we are talking about you…. Most people would say, “SHOW ME THE MONEY?!” They would want a lump sum of money in their bank account right away. Then here come the following people: your Momma who wants to start her own restaurant, your Uncle Junebug who always wanted to start their own barbershop, friend who now wants to start their rap career but want a custom studio, and your girlfriend/boyfriend who is looking for you to wine and dine because they feel they deserve it. Crazy right? But so true!!

Let’s look through your financial lens and see how much you would actually win. The estimated value of the Powerball is $900 million. You actually win $558 million (62% of the estimated value). Let’s not forget about the T word….TAXES! There is a 25% Federal Tax Reduction which will be taken off the top (think $135 million). You must pay Caesar what is due to Caesar or He will come for you and take the shirt off of your back. Now you will bring home about $419 million. Your hometown state also needs their coins too. State Taxes vary from state to state. I will use the state of Illinois as an example. According to USA MEGA, Illinois has a 3.75 state tax.

Now the question is… how should I get my winnings: lump sum or annuity? The common person would say LUMP SUM!!! Is that correct? NO!!!!  The most financially responsible thing is to do an annuity payments. This DIVA will tell you why. What is annuity? Glad you ask! Annuity is a fixed sum of money that is paid to someone for the rest of their lifetime. Bonus: if you die suddenly; your family can continue to receive annuity payments for the rest of their lives too! Morbid I know but hey you gotta be realistic.

Anywho… Back to the math. If you receive a lump sum payment, you will receive about $398 million. If you choose annuity payments, you will receive about $642 million. If you choose to get a lump sum, then you will pay more taxes off the top. If you choose an annuity; you will only pay taxes on the payments made to you annually. That means more money in your pocket!

So if you or I do win the Powerball tonight; please choose the annuity payments. Don’t forget to bless your fellow Financial Diva a coin or two for giving you this advice. In the meantime; keep SAVING and INVESTING DIVAS!!!

-Miss Diva Dollars

Diva Dollars Manifesto 2016

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This is the third day of the new year! YAY! For most people that means a new fresh beginning in different areas of our lives. This could mean starting a new fitness regime, renewed mindset, new diet, or the start of a new business. Some people create a new manifesto for themselves. Webster defines a manifesto as a public declaration of intention, motives, or views. My question to you is…. What is your money manifesto in 2016? Save more? Get out of debt? Save for a car or house? Spend less?

My Diva Dollars Manifesto is my public declaration of how I am going to handle my coins for 2016 and beyond. I am approaching the 30 Club (YEP!) and I need to make some changes to my financial lifestyle. My financial habits of my 20s cannot enter into my 30s. Soooooooooo…… Introducing my Money Manifesto

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Whatever your money mindset is; it should help your finances work in your favor instead of against you. What is your money manifesto for 2016? Drop a comment and let me know.  Let’s get our financial house in order for 2016!!!!

Until next time DIVAS!!!!!! Keep Saving and Investing!!!!

-Miss Diva Dollars

 

Weekend Recap: Money Matters Workshop

This past Saturday, I attended the Rainbow PUSH Money Matters Workshop. As a finance blogger, it is always refreshing to learn from other finance mavens in the industry.

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I attended the Investing 101 workshop lead by Mrs. Gail Perry-Mason. I received a wealth of information about residual income and starting an investment portfolio. Although most of us work 9-5’s, there is a plethora of opportunities to make additional coins. She mentioned websites like RetailMeNot, Ebates, and Resturants.com where people can make and/or save money utilizing these sites. Diversified income was another great tip. She stated that we must  have at least 5 avenues of income. We cannot depend on one source of income because you never know when things shift and a person could lose their job. You must always have a financial back-up plan. There was also some great investment tips. Mrs. Perry-Mason stressed the importance of starting an investment account whether it is with your job (Think 401K or 403B) or on your own. Robin Hood is an app that she mentioned where you can buy stocks. I will be using that app real soon. I’ll be sure to write a later post about my experience with it, so look out for that.

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The Chevrolet sponsored Empowerment Session, led by Reginald Humphrey, Senior Manager of Supplier Diversity, also provided great nuggets of wisdom. An important topic, Define Your Success Circle was especially interesting. It is important to remember that your circle of influence should be one that encourages you to strive for more. He also touched on Decision Making in regards to your finances. Make informed decisions that fit your financial lifestyle. He used the decision of buying a car as an example, which is great because no one loves the bus. It was suggested that you should never buy a car where the car payment and insurance is more than your rent or mortgage. This is called “living outside of means.” Living outside of your financial means you can do damage to your finances and credit score. And we need to keep that credit score up for when we’re ready to buy that vacation spot. (See: That villa in the Maldives I’ve been eyeing.)

Overall, I had a great time at the workshop and walked away with even more knowledge about making smart money decisions. I am excited for the year ahead equipped with some great financial tips. This DIVA is ready for 2016!

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Brown Consumerism: Who cares about the Joneses’ anyway?

As I reflect back on the holiday season, I think of the major money that was spent. The money spent on buying Christmas gifts for families, co-workers, friends etc. We as people spend a ridiculous amount of money on items that we barely wear or use. This is very true in the African-American community. African-Americans spend almost $1 trillion dollars annually. The buying power of African-Americans was compared to that of a small country (See graphic).

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What do we spend it on? As far as I can tell, the money is spent on frivolous things such as clothes, cars, tvs, and other electronics. Not to sound cliché but we try to keep up with the Joneses’. Who the heck are the Joneses anyway? Could it be our Caucasian counterparts, basketball wives, or rappers? It grinds my gears to see women buying Christian Louboutin shoes with a Pre-Paid Rush card or guys tweeting pics of their Louis Vuitton receipts then texting me if I know of any jobs openings?!?! Something is not adding up! Disclaimer: I am guilty of conspicuous consumption as well. The question is why? It seems like material things symbolizes success or progress in our community. Is our self-worth determined by the size of our rims or the logo on our belt buckle? The media plays a part in our excessive habits. Rappers, video vixens, and thoughts of popping bottles and shopping sprees is seeping into our minds to a point where we perceive it as reality. We must realize that rap videos and reality shows are selling us a dream. A dream that is unattainable on annual salary of $36,000.

Brown Consumerism wouldn’t alarm me as much if I didn’t look at the wealth gap between African-Americans and other races. If we were savings as much as were spending, then I would not have a problem. The sad truth is that we spend more than we save. A LOT MORE! According to Census Bureau Information below, African-Americans net worth is 20x less than our Caucasian and Asian counterparts. That is alarming and disturbing.

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What happened to saving more and spending less? Think about the generations that came before us. Ideally, Grandma and Grandpa worked hard to buy a home in a decent neighborhood, worked 30+ years at a blue collar job, and then retired with a nice retirement nest-egg. Is that idea not cool now? Ask yourself, do you have a savings or money market account? If not, why? We as a community need to get back to those solid financial principles that our grandparents instilled in order to create wealth for ourselves and our families.

This is why my blog and other personal finance blogs are so important. Imagine if the $1 trillion that we spend on material things was used for savings and investments. We would be a force to be reckoned with! We must share helpful financial information and create wealth for ourselves. Join me on my journey to becoming financially stable. No, I am not trying to sell you anything. I am just sharing my financial story with you in return that you will tell someone else so they can live a debt-free life.