Yesterday, I encouraged you to embrace the fact that YOU are the CEO of YOU, INC., and when it comes to your financial future, YOU ARE ON YOUR OWN. The goal of this series is to encourage you to expand your network of friends, and consider adding people with financial saavy to help you build wealth for your family. Today, I’m encouraging you to consider adding a fourth financial friend:
AN INSURANCE AGENT
We All Must Leave Here
Insurance is a touchy subject that requires a soothing presence to ease the tension. After all, insurance is all about planning for the unforeseeable. There’s no getting around the fact, for instance, that your family needs to be provided for in case of your death. Finding an insurance agent with whom you can talk candidly is vital.
Who should I call?
According to Black Enterprise Magazine, “any agent can generalize what the average person should do, but you need an agent who understands your family history, someone you know will understand how your situation changes if you get a new job or face a sudden illness in your family.” According to most industry experts, “at least once a year you should meet with your agent and review all your basic insurance policies such as car, home, and life insurance. You should also ask about coverage for disability, retirement, and long-term care options that can be tailored to your needs.” Having an agent who knows you by name is especially helpful when you have to file a claim after a car accident or major disaster such as a house fire.
Get References
In general, there are two types of insurance agents – independent agents who write for more than one company and contract agents who represent a single company. I asked my financial planner “what type of insurance should people consider?” His reply: Life Insurance, Auto Insurance, Health Insurance, Disability Insurance, Home Owners Insurance, Renter’s Insurance, and Flood Insurance (if you live in a flood zone). If you’re the type of person who prefers sequential steps to get started, you can begin your search by reading this article.
When it comes to your financial future, here’s the deal: You’re on your own. Pensions are going the way of the parachute pants (remember the 80’s). Social Security is looking more shaky by the day. Our healthcare system is being held together by duct tape. In today’s environment, you must be a realist and admit that you’re going to have to take control and create your family’s financial security (with the help of a few financial friends). You can read about the the first two financial friends here and here.
Over the past two days we have explored a few essential financial friends we all will need at some point in our lives. If you desire to build wealth, today I’m encouraging you to consider adding a third financial friend:
A FEE BASED FINANCIAL PLANNER
Making financial decisions is difficult. Make the wrong decision could prove disastrous and may set you back a few years. There’s a lot you can figure out on your own, but all of us can use help when it comes to something as important as how to save, invest, and plan for the future.
Get References
A reference from a friend or family member is a great way to search for a financial planner. But make sure you’ve got similar needs as the person who’s giving the referral. Go to groups like the Certified Financial Planner Board of Standards and the Financial Planning Association for additional references.
Understand how your planner is getting paid
The three most common set-ups are: Fee-only, fee-based, and commission-based. Fee-only planners don’t get commissions for the products they sell – fees are for the advice they give (my personal preference). Fee-based planners may receive commission on some products they sell, but most of their money comes from a fee you pay them. Commission-based planners are paid by the companies whose products they sell.
“When Black Enterprise unveiled its Declaration of Financial Empowerment nearly a decade ago, the idea was to create a program to help African Americans build wealth.” The principles are solid and transcend race, gender, and ethnicity. If you desire to build wealth, today I’m encouraging you to consider adding a second financial friend:
A TRUSTED MORTGAGE BROKER
What exactly is a mortgage broker?
Simply put, a broker is a middleman who helps you find a good deal on a mortgage loan. A mortgage broker does not work for a particular bank or lending institution but rather shops around to find the best terms.
Should you be using a mortgage broker?
Well, a broker can be helpful in certain situations, especially if you have a poor credit history and are having a difficult time finding a lender. A knowledgeable and experienced mortgage broker can find lenders who are willing to do business with you and can even help make your case when your financial history is, shall we say, less than perfect.
In exchange for doing the mortgage shopping on your behalf (and for assisting you in understanding the various terms and paperwork involved in the mortgage), a broker will get a commission. Typically, this commission will range between 0.5% to about 2% of the loan amount that you decide to borrow.
Finding and picking a trusted mortgage broker is no easy task. Solicit references from friends, family members, and your networks. Additionally, you can Google “how to find a mortgage broker” and sort through the links.
So, how are you doing? Do you have a trusted mortgage broker on speed dial?
There is no such thing as a perfect friend. They are all human and everyone is alike in some sort of way. Be like me. Don’t limit yourself to one set of friends. Be friends with everyone.
According to Black Enterprise Magazine, “there are seven financial friends everyone should have on speed dial. Economists & academics believe that at least part of the wealth disparity between African Americans and White Americans in the United States can be attributed to the persistent distrust of financial institutions among a larger number of African Americans.”
The first financial friend we all need is a PERSONAL BANKER OR BRANCH MANAGER
Many borrowers spent most of the time focusing on their credit application and forget to build additional resources to help them qualify. What does it mean to develop a meaningful relationship with your personal banker/branch manager? It means to attempt to develop a deeper level of rapport with the person on the other side of the desk. If you can befriend your banker it means it will have an emotional investment in helping you and your application.
This does not mean that they will violate lending policies or commit fraudulent acts, but if the deal needs a little massaging to make it work they will commit resources to get it done. You can establish a better relationship with your personal banker is simply through respecting their time and treating them with some common courtesy. You can also go the extra mile by calling them on their birthday, asking them if they want coffee at your next appointment together or contacting their branch manager when they’ve done a good job and singing their praise.
Have you established an authentic relationship with your personal banker or branch manager?
My generation experienced the election of the first African-American President, the 9/11 Terrorist Attacks, Desert Storm, Iraq War, historic government bailouts, the passing of healthcare reform, and the greatest economic downturn since The Great Depression. However, in my opinion, the greatest shifts we will experience in our lifetime are happening now!
According to next generation thought leader Blake Mallen, “most new online technologies have one root intention: to make it simpler for people to communicate and collaborate.” Of all the tools and websites created to connect people, Facebook seems to be the most popular starting place for many. With more than 500 million users (that’s right – 500 MILLION AND GROWING), we all have at our fingertips the tools to find, friend, and engage with people. Imagine how churches can use this platform to expand the Kingdom of God!
Consider this:
To reach 50 million users, it took:
Radio – 38 years
TV – 13 years
Internet – 4 years
iPod – 3 years
FACEBOOK ADDED 100 MILLION USERS IN LESS THAN 9 MONTHS
Source: United Nations Cyber School Bus Document/Mashable
Additionally, according to a Grunwald Associates National Study, “at the end of 2010 Generation Y will outnumber baby boomers…96% of them have joined a social network.”
QUESTIONS:
Considering this social trend, how will the church respond and leverage social media to help expand the Kingdom of God?
How will business owners leverage social media to market their goods and services?
Our leaders met this past Thursday to discuss and discern what God would have us to do corporately regarding the tragedy that rocked Haiti. Although there are some conservative Christians labeling this as “God’s judgment,” we, however will take the high road & pray prayers bold enough to “WAKE… GOD UP.” Please click the link for more information & join us!
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Best regards,
Clarence E. Stowers, Jr.
