5 Refreshing financial steps women should take before and during a divorce (or during any life transition)

I know this is a finance post, but before I jump into giving you a checklist for financial steps to take before and during divorce, I first want to say: Stay positive and remember you WILL get out of this. Positivity can carry you further than you’d ever imagine when the chips are down. It’s good for your brain, your body and your soul. When all those are all aligned, the financial steps become a non-emotional step in the process.

With that said…So whether you’re thinking about divorce or breaking-up or you’ve started the process, remember that it’s not too late to start thinking about how to set yourself up for financial security, and the security of your family. Here are the Top 5 Things I recommend anyone in a potential life transition take a look at:

1. Your relationship with your own finances. Are you comfortable talking about your financial situation with a few close people in your life? It’s a super hard step, but finding someone you trust to be able to say “I need help” or “I don’t know where to start with my new budget” will come in so handy down the road. Whether it’s a professional financial planner focused on helping women or just your BFF that can hold your hand as you figure out where all your money is going.
2. Insurance. I get it, insurance is something that none of us like paying for because we’re not really getting anything substantial to show for it. Not a new pedicure, a cute bag or the newest toy for your daughter. You literally are just paying a company for the promise to cover you should something happen to your car, your home, your wrist or, God forbid, your life. Guess what feels worse than not having anything to show for that money you just shelled out? The sense of regret when something finally does happen and you now have sleepless night after sleepless night wishing that you took some time to purchase your coverage. Life, Health and Property insurance. Make sure you have all 3. There are so many varieties of all of them out there so there is no reason to say, ‘It’s not for me’.
3. Your earning potential. We all have the potential to earn money and spend each day adding to what we received the day before. This might be in a corporate job that requires you to complete processes, reports or strategize the company’s next move. It might be you sell items you make on Etsy and your local artisan shop, or might be that you offer your services to others in a specialized way. Whatever it is, these are your earnings; your income and your ways to get the other things you want and need in life. We sometimes might have to adjust the management of these opportunities to make more one month to save for a divorce lawyer, or might need to cut back hours to focus on the health of ourselves. Whatever it is, identify your income sources and even the openings to earn more.
4. The flow of money. All that hard earned money—where did it go? I just had it a minute ago. Oh wait, I just bought new ballet shoes for my daughter. No wait, I had to pay the court fee for my latest filing, my internet bill and pizza for dinner last night because I didn’t have time to run to the grocery store and make dinner. Why would you work so hard to pull all that money in to only just throw it out the window before it had a chance to get cozy in your wallet? Use that adage of ‘it takes a month to make a habit’ to your benefit to really watch where all your earnings are going. I’m not asking you to keep track of every little penny for the rest of your life, but take 30 days and really focus on seeing how quickly we lose sight on what we are spending. Then make adjustments. Cut your cable, downsize your care, get a Tall instead of a Grande (I promise, I won’t tell you to do without it for 30 days).
5. It’s a new normal. For the time being. Don’t worry, things change. Reevaluate, what you need to buy right now. You’d be surprised how much you can really live without when you think about it. Let’s face it, we all say “I really only need my family and friends to make me happy”. Put it to the test. This is the perfect time of your life to do that. Invite people over for dinner at your place instead of going out. Arrange to meet up for a walk at lunchtime instead of at the restaurant. Buy a journal and right down how much you hate your ex instead of spending money on a shopping binge on stuff you’re going to hate it 22 days. These events happen in our lives that force us to rethink who we want to be and how we conduct our lives.

These events are always stressful. I’ve yet to find a way around it. Being vulnerable is not a comforting feelings. Either is ending a relationship. Give yourself a fighting chance of surviving both by checking off some non-emotional steps to get you closer to the next, even better chapter.

10 steps to take if you want to retire in 10 years

Include these steps in your overall retirement plan….

• Review your social security account at: http://www.ssa.gov/myaccount/
• Make sure your account looks correct and get an estimate of the benefits you’ll receive.
• Save as much as you can now – max out your 401K savings; IRA accounts; and other investment savings. These are your high-earning years – use them wisely.
• Eliminate as much debt as possible and try not to take on any new debt.
• Take a look at your expenses. Where is your money going now? Review your bank statements and credit card statements? Prepare n estimated summary of your expenses. Where can you save money? (e.g., restaurants, entertainment, vacations?)
• Come up with an estimate of how much money you’ll need annually to live on for your retirement.
• Review your insurance needs, including long-term care. (We have some exciting new hybrid options that you may want to hear about.)
• Take a look at your current portfolio – is it diversified enough? Do you need to rebalance your investments or change your risk level? Do you know what fees you’re currently paying?
• Make sure you have your financial plan in place. You need to understand where you stand right now and what investment options there are for your future. This will help you come up with a clear vision for your financial needs and goals…and to help you achieve your financial objectives.
• Contact me to be sure your retirement plan is on track!

karen@pangarowm.com.

Investment Mistakes Made by My Younger Self…and What I Learned

When I was in my twenties and newly married, I went to have a financial plan done with one of the popular investment firms in this vast marketplace. I ended up investing in a number of products I did not fully understand, including a variable life insurance policy and a long-term partnership fund. My hard-earned savings (which I thought was a lot at the time), quickly disappeared into the insurance policy–along with the monthly payments now due for the policy. The partnership and a number of small mutual funds never grew much. When making mistakes, the best part is learning from them, right? These are mine: 

• Investing in partnerships and insurance I didn’t understand.
• Thinking fee-only was a bad thing. I realize now that its the best way to get truly independent, unbiased financial advice. I chose the advisor I did because he was ‘free’. I did not realize there were substantial commissions and charges I did not see. 
• Buying a stock because I heard it was a great stock and about to come out with some great new products…without doing the necessary research. Nowadays, I encourage clients to do research on investments so we can share the knowledge.
• Making investment moves based on emotions, i.e. taking money out of the market when it went down and staying out of the market due to fear.
• Luckily in my later years, I realized that a fee-only registered investment advisory firm is one of the best ways to get truly independent, unbiased, advice. You also need a well-thought out financial plan with clear objectives and long-term goals. 

Is your current plan on track? Want to chat about how we can create a successful plan? 

Contact me @: Karen@Pangarowm.com to take steps now.

Who’s in the Bunker?

Well that was a pretty wild roller coaster yesterday, wasn’t it? How many times did you cover your eyes but peeked through your fingers? Did you immediately go to your account balances and cringe? If you did, that’s certainly ok—and a normal reaction. It’s also perfectly normal for you to have either called your advisor or thought about taking everything out yourself.
It’s not OK if your advisor was sitting in a bunker waiting for the storm to pass, ignoring emails and phone calls. As an investor, it’s you who should be hunkering down and watching this volatility from a distance. Have confidence in the plan that you have in place. If you don’t have a plan, now is the perfect time to devise one with a trusted professional so that when these days happen—as they so often do—you’re not walking around all day with your hands over your eyes.
2008 is still a pretty fresh wound for a lot of us. It’s changed the way that we look at money and our long term goals. Yesterday’s jolt certainly brought some extra attention back to the forefront of our financial priorities. It reminded us to take a step back, breathe for a second and then focus on the road that you’re on. Market volatility is going to happen whether you’re 2 years away from retirement or 20. Being proactive instead of reactive is what keeps the wise advisors and investors ahead on days like this.
Call your advisor today and find out what they’re doing to be proactive. Call us, we’re happy to have a conversation to illustrate what we’re doing to prepare for the days to come, allowing you to feel at ease in your own bunker.

Do you know more than your financial planner?

Ever read an article, watch a how-to YouTube video or a presentation at work and think ‘Well, I knew that already.”? Do you finish reading or keep listening? Most people do. And they sit and be quiet without asking or thinking about questions and initiating a more in-depth conversation.
In most cases, you ARE going to have some prior knowledge about your finances, your goals, or suggestions your planner is already sitting across the table discussing with you. And that’s perfectly OK. No one wants to have a one-sided conversation rattling off a grocery list of items to do in order to get your financial plan in place.
Both sides of the table should be asking probing questions. Don’t be afraid to be the expert in your own financial situation. You might be really into reading blogs (like this one!) and know the plethora of financial guidance online is overwhelming, but you know that most adults should consider some form of life insurance. Say that to your advisor? Share what you’ve read and ask questions.
Did you overhear another mom talking at the parent pick-up line about how they’re trying to figure out a way to pay for camps, dance class AND the new car that they need; and felt a little relieved that you weren’t the only one? Don’t be afraid to say that to you planner. No question is too ridiculous, or vague or assuming. Something might pique the others curiosity by that question or the tidbit of information that you share—which only leads to an even more tailored plan geared directly for you.
Try asking the following questions to yourself and be prepared to share, with confidence, the answers to your planner:

• Is it true that I can get all the quality financial advice I need online?
• What about finances peaks my curiosity?
• Am I stressed out about money for all the right (or wrong) reasons?
• What are the most passionate things in my life?
• What can I do to dedicate more efforts to my financial plan?

When you become comfortable with the answers and can discuss them freely with a trusted advisor, you already walk into that meeting knowing more than they do.
Have questions that you want to ask me? I’d love to hear from you. Contact me so we can chat about your ideas.

Do you know more than your financial planner?

Ever read an article, watch a how-to YouTube video or a presentation at work and think ‘Well, I knew that already.”? Do you finish reading or keep listening? Most people do. And they sit and be quiet without asking or thinking about questions and initiating a more in-depth conversation.
In most cases, you ARE going to have some prior knowledge about your finances, your goals, or suggestions your planner is already sitting across the table discussing with you. And that’s perfectly OK. No one wants to have a one-sided conversation rattling off a grocery list of items to do in order to get your financial plan in place.
Both sides of the table should be asking probing questions. Don’t be afraid to be the expert in your own financial situation. You might be really into reading blogs (like this one!) and know the plethora of financial guidance online is overwhelming, but you know that most adults should consider some form of life insurance. Say that to your advisor? Share what you’ve read and ask questions.
Did you overhear another mom talking at the parent pick-up line about how they’re trying to figure out a way to pay for camps, dance class AND the new car that they need; and felt a little relieved that you weren’t the only one? Don’t be afraid to say that to you planner. No question is too ridiculous, or vague or assuming. Something might pique the others curiosity by that question or the tidbit of information that you share—which only leads to an even more tailored plan geared directly for you.
Try asking the following questions to yourself and be prepared to share, with confidence, the answers to your planner:
• Is it true that I can get all the quality financial advice I need online?
• What about finances peaks my curiosity?
• Am I stressed out about money for all the right (or wrong) reasons?
• What are the most passionate things in my life?
• What can I do to dedicate more efforts to my financial plan?
When you become comfortable with the answers and can discuss them freely with a trusted advisor, you already walk into that meeting knowing more than they do.
Have questions that you want to ask me? I’d love to hear from you. Contact me so we can chat about your ideas.

Put your finances at ease if you find yourself in a job transition

So you’ve decided to start a new job, a new career or were told your position is being eliminated. What’s the VERY first thought that runs through your mind? It might a big *gulp*, and then it might be ‘will I be OK financially?’ First of all, let me tell you—the answer is YES. It’s happened to more people than you probably realize, and they all figure it out just fine.
You’re going to be fine as well, because you’re going to take a look at your budget and see what you’re up against. Wait, do you HAVE a budget? Well, that’s step 1. It helps you lay it all out there. What’s coming in, what’s going out, where can you scale back, or where do you need to shift some things around? Try there first before you freak out about maybe having to dip into our savings. Chances are that you can adjust some of your budget around and find hidden opportunities.
Great, you’ve got your budget all set. Now, take a second to take a look back at where you just were. What did you leave behind (besides that stapler that was busted anyway)? Maybe you left a 401k, a group life insurance policy, or a health savings account. We need to take all those and decide what we’re going to do with them in the future. Should you roll your 401k? Possibly, if the cost/expenses of leaving it outweigh the expenses of moving it into another plan. Do you need to update your life insurance to an individual policy to either protect your loved ones? Most likely. There are many options that can satisfy that need for protection.
It’s a lot to think about. Never mind all the other thoughts running through your head about how you’re going to face this next chapter of your life. It’s scary—believe me, I speak from experience that that *gulp* from the pit of your stomach is the first thing that happens. Once you start breathing again, take a step back and say to yourself that it’s all going to be OK.