Posted by Careasa Greer on August 23, 2008 at 3:30pm
Finance Article.pdfOne of the reason I decided to build a business in insurance and finances is due to "our" lack of building a lucrative future for ourselves and our families. It is to the demise of the African American family, that we do not make amends with ourselves and learn to be viable members of our communities through educational resources, financial resources and spiritual resources. If you are a subscriber or avid reader of Black Enterprise Magazine, you know they always include the DECLARATION OF FINANCIAL EMPOWERMENT. 10-simple rules to help "us" to understand how taking control of our lives and our finances will help us to be more progressive people. Declaration #6 seems to be the one many of us tend to subconsciously ignore. It specifically states: I will preserve and protect my assets through proper financial and insurance planning. Nonetheless, this seems to be one of the primary things we need, but tend to forgo. Whether it is a lack of understanding or just not wanting to spend the money - in order to build a viable business, a viable future and a legacy - you must have properly planning. Instead of searching for insurance based upon price - look at what you have to protect and your future. In the state of Tennessee, drivers are required to maintain at least state minimum coverage in liability on their automobiles to drive. However, most drivers do not understand how state minimum coverage can impact their pocket book if they were to be involved in a serious and/or catastrophic accident. At best, with state minimum coverage, you can expect to have $60,000 worth of coverage available to a third party ($50,000 in total medical bills and $10,000 in property damage). However, I highly recommend to my clients to maintain a minimum of $400,000 in liability ($300,000 in medical bills and $100,000 in property damage). For those clients who have a substantial amount of assets to protect, I always recommend $600,000 in liability or more AND an Umbrella! Yes, for pennies on the dollar, clients can protect their assets against claims with an Umbrella policy. This is very important for those individuals with assets to include, a home, vacation homes, investments (whether small or large), boats, motorcycles and children. Having an Umbrella will allow you to protect your finances when you need it the most. An Umbrella policy works like a security blanket. You have your liability coverage under your base policy (auto, home, business). However, once your underlying policy's liability has been exhausted, that is when your Umbrella policy kicks in. $1 million Umbrella policies can be as low as $160 per year! This is also great for families with teen drivers! Why? Most teen drivers do not have a lot of experience behind the wheel and make mistakes. Some of those mistakes have resulted in serious to catastrophic losses in automotive accidents. If you base policy has been exhausted and there is not enough money to pay for medical bills, pain and suffering, loss of wages, property losses, etc - the responsibility comes back to the parents! ALL ASSETS ARE GAME! What does this mean? Any assets you own or your name is attached to will be fair game for the other party to pursue to gain restitution! That means, everything you have worked so hard to accomplish can be taken away with the blink of an eye! I made a pledge to myself years ago to stop allowing my circumstances to control me - rather to control my circumstances. I made a pledge to work diligently in building lucrative businesses and putting the proper plans in place to protect me, my family and my assets. My goal is not just financial freedom, but to leave a legacy to my family. My legacy will be built upon providing my children with the skills and tools they need to be productive, financially savvy and educated individuals who can provide a guidance and assistance to those who want to find a pathway to obtaining their goals!So, why do so many of "our people" allow their circumstances to take control of them? Is it a lack of understanding? Lack of confidence? Or perhaps there is NO DESIRE to change? At some point, we have to wake up and realize that if we don't take the initiative to change, we are doomed to stay within the cycle of which we have become complacent. The first step is PUTTING A PLAN IN PLACE! Start by insuring your current assets properly! Get Renters Insurance if you are a renter. Get better auto coverage! Review your homeowners insurance with your agent to determine if you have sufficient coverage! GET LIFE INSURANCE! In our community, more than 89% of our people fail have LIFE INSURANCE! Make sure your businesses are covered properly and have Workers Compensation Insurance! Umbrellas are available for individuals, families and businesses! An Umbrella will provide an extension of your underlying policies liability coverage. Start putting money towards your future and your family's future! DO NOT DEPEND OF SOCIAL SECURITY - It's a joke! There are a variety of programs out there to help you put money towards your future (some with a minimum amount down and small monthly deposits). Start and keep an emergency fund! Emphasize to your children the importance of education and help them get a good start by putting money away into a college fund! Ask your agent about the different programs available! Don't forget there are some state programs available to lock in tuition rates!Feel free to read the attached is an article. I found to be very interesting and informative!
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