Prudential: Building Financial Wellness by Sonia Kang | October 09 2017, 1 Comment
This is part of a sponsored collaboration with Prudential and DiMe Media.
However, all opinions expressed are my own.
I was looking forward to talking with a Prudential financial professional and start a conversation about my personal situation and get moving in the right direction to become financially fit for the future.
I had an opportunity to chat and even interview one of the Prudential financial professionals, Paulo.
Paulo shared some the news reported by the Hispanic Consumer Market that provides solutions to help Latinos like myself to improve our financial wellness.
The report discussed how, for “Hispanics, the disconnect with financial planning is largely rooted in lack of awareness and familiarity.”
I listen to the report and thought, huh, that wasn’t my beginning. My grandparents, who helped raise my siblings and I, were really ahead of their time. I got to see them not only work hard but play hard. I also got a chance to see them save their money. I remember mi abuela bringing home coin wrappers from the bank (this was way before dropping coins in a machine like at CoinStar) which meant my siblings and I would be rolling coins that weekend.
We would spread out on the living room carpet and mis abuelos would dump all the coins they had collected which they stored in a Folgers can. We would then separate the pennies, nickels, dimes and quarters, then roll and seal them until all the coins were gone.
We would huff and puff when we had to do the rolling because it seemed tedious. When completed, my grandmother would take them to the bank and exchange the coins for dollars. We were awestruck by how much dollar bills came back from our work. They would give us each a couple of bucks for our work, which we saved for a treat.
My siblings and I laugh now remembering the stories of lost weekends spent sorting coins. Whether it was they joy of receiving 2 bucks as a kid or the fact that rolling coins is so passé now. But in reality, it taught us an important lesson in saving, even at a young age.
So what happened to me? What happened to that little girl, so full of hopes and dreams?
What happened to that young girl who grew up poor, rolling coins learning the beginning steps to saving money for her future?
Well, that little girl grew up to become a teenage mother of a special-needs daughter who had to grow up way too fast.
That teenaged mother didn't let her situation dictate who she was or who she would be. She went to a private University in the Bay Area and had to take out numerous student loans in order to pay the high tuition costs and cover living expenses for her and her daughter.
Fast forward, that young girl ended up becoming a critical care Registered Nurse and at 35-years-old and a mom of 4, wanted to change her career. She would become a social entrepreneur designing and manufacturing multicultural children’s clothing.
In order to start this next phase in her life, she emptied out her savings account, borrowed from her 401K, made a business plan and started Mixed Up Clothing. That entrepreneur/mom of 4/special needs mom/college mom has not been able to recover since.
So let’s go back to the chat with Paulo and the Hispanic Consumer Market Report which “addresses some of the solutions that may help to protect Latinos and those they love; work the numbers of a business/entrepreneurship; deal with budgets and investments; set up guaranteed income in retirement; and pay for college & elder care while saving for retirement. “
As an entrepreneur, I started out with big dreams. I had a passion about teaching about multiculturalism. I loved sewing. I melded the two passions and started Mixed Up Clothing. For me, the clothing became my vehicle to teach about cultural diversity and inclusion.
I learned that the report showed: “Entrepreneurs and would-be business owners are almost always passionate about their careers. However, passion doesn’t translate into cold, hard cash and funds are often needed to get that dream business off the ground or to sustain it. Here are several strategies to consider – and a few pitfalls to avoid – that may help to develop and nurture your venture. “ http://bit.ly/29wwJcT
I read about protecting the work of a lifetime and some pointers for business owners like me.
“Building wealth isn’t easy. But it can be even harder to keep it. In this panel discussion, three financial professionals explain everything from starting a business to money management and succession planning. In the end, devising a plan and putting it into action may be the most crucial job of all.”
For me, this means what will happen to Mixed Up Clothing if something happens to me or if I want to leave it to my children?
"Honestly, where do you go first when trying to develop a retirement strategy, evaluate your insurance needs or take steps to expand your investment portfolio? We’ve collected an entire group of interactive tools to help you discover your own path."
As I listened to the Prudential panelists at Hispanicize LA, I thought back to my college tuition.
I wondered how I was going to not only repay my own student loans but for my child who is an entering college freshman.
Prudential asks “Which comes first – paying for college or saving for retirement? This is a daunting question even for the most financially savvy. Here’s a quiz that can provide you clues on how to pay for college without jeopardizing your retirement savings.
Do all of the prep so you avoid saying “Oops! Too late. I’m BURIED in college debt.”
But if you’re like me then they still have you covered! “We’ve planned for that scenario, too. Click on the link below which will take you to an interactive infographic that can help explain “How to Stop Student Debt from Taking Over Your Life.”
How can you help your children avoid massive debt after completing college?
When it comes to paying for higher education, Prudential says "use your smarts to figure out the best ways to end up with the least amount of debt before you send your kids off to college."
Think you are too young to start saving for the future? http://bit.ly/2mykUX7
Actually, the younger you are, the better. http://bit.ly/2neNJJq
ABC’s of Retirement Savings Plans and Social Security
70% of Hispanics in the U.S. have no retirement accounts. There are many reasons why, especially since retirement seems so far away in the future. In many cases, it’s not a lack of discipline, but unfamiliarity or unawareness of various options available for retirement savings. Here is a list of the funds available:
Roth IRA https://nerd.me/2y5JfNj
What’s the value of a financial professional – Do I actually need one?
There are so many of us who live in the moment rather than thinking about the future. Some of our self talk includes: “I’m not going to grow old.” “Why not spend the money I earn?” “I deserve to pamper myself.” That’s all well and good, until you want to buy a home, start a family or build a new business. Do you have any idea how to fund these ventures? Check out this video. http://bit.ly/29hLQ5Q
Funding a Multigenerational Household: Retirement, College and Eldercare
Take time to evaluate your strategy for managing two of life’s most important—and most expensive—financial goals: paying for college and caring for multigenerations without sacrificing your retirement.
I didn't know what to expect going into the Prudential panel at Hispanicize LA. It was eye-opening to say the least.
I may not be in the best position but there is good news and that is that Prudential provides interactive tools to help guide one through their financial life from succession plans to college because it’s difficult for anyone to know how to begin the process of an overall financial plan.
To learn more head to www.Prudential.com#Prupárate #HispzLA