Hey shade babes! Something I’ve been wanting to do with shades of pink is give you guys a full on series on a single topic. It’s been in high demand for a while now due to the overflow of messages full of comments and concerns that pop up when a new topic is brought to you by yours truly. There’s a lot that goes unsaid and questions that go only answered within an email or a DM and I no longer want to keep the conversation starters from you. Sometimes one post simply isn’t enough. You guys have made that VERY clear and I’m here for it . To start off I wanted to go into a topic that 20 somethings make the most mistakes on: Finances. A lot of us have had to learn to manage our money and prepare for the future through trial and error. Quite frankly, that’s not good enough when the end result is debt (with a side of regret) , a a savings account that looks like $BROKE,000,000 & financial PTSD. But you “learned your lesson” right?
These past couple of weeks I sat down with a beautiful, smart, and kind lady named Evelyn who taught me a lot about why planning for your financial future RIGHT NEOW is so important. At my big age of 23 I’m ready to set up a better alternative to social security, potential retirement, and life insurance. Not to mention a potential side hustle which never hurts either. I took in so much when speaking to Evelyn that potentially changed the way I look at money and work benefits as a whole. The way I look at savings accounts and securing my finances through speaking with her has already put me ahead in more ways than one. With that being said I want to share the knowledge and resources that are out there so we can all secure the bag and also consider the what ifs that life may bring. If you stay ready you don’t have to get ready. So lets all as a collective stop playing and get into it:
My name is Evelyn Caday. I am a Financial Educator and Living Benefits Specialist. I recently started a business that is expanding heavily in the Bay Area, [California] and I am able to help families and individuals Nationwide! I am here to spread the word about the importance of financial literacy and to see if anyone is currently looking for an opportunity to be able to change their lives financially.
I run a sales and marketing firm where my team of Millennials and I help educate families and individuals on the importance of financial literacy and how to better be equipped for the future. In school, we are not taught how to be financially prepared and I feel it’s a huge missing piece for our upcoming generations and current generations. If your parents do not teach or educate you about finances, where will you learn it from? Sometimes parents only teach what they know and what if they are not taught financial literacy so whatever is taught to you will be taught to your future children. Let’s break the cycle of being uneducated about finances! My vision is to help many families live financially free, be better prepared for their future, and protect them in case they become ill or injured, providing them Life Insurance they do not have to die to use!
I started this business because I realized that I needed to focus on my finances and saw that my uncle was diagnosed with a rare syndrome that paralyzed him for 9 months. This has put a financial strain on my family because my aunt had to stop working to take care of him and my cousin who is in her 20’s had to take care of both of her parents. Luckily she has a great job in Human Resources but she also has almost $100,000 student debt (which is the worst type of debt since you cannot file for bankruptcy). My uncle is now able to walk after taking many physical therapy sessions but he has not been able to go back to work. He was the breadwinner of the family and was making great money before his illness. My aunt went back to work but has to work overtime hours which is now putting a strain on her health. My company can help prepare families and individuals in case this happens which in turn can eliminate the need for GoFundMe accounts.
Social Security and Medicare is government funded money that is provided to people with inadequate or no income and are provided to retired people who are unemployed or disabled.
Age of 65 is the typical age for retirement but most people are living longer than their retirement and does not have adequate funding for retirement which is why you see many elders still working past the age of 65. Based on an article below, it is projected that Medicare’s trust fund is set to run out in years and Social Security will run out in 16 years. That means, the government will not be there to take care of us during our retirement years! You can read more details on this link: https://www.nytimes.com/2018/06/05/us/politics/medicare-social-security-finances.html.
It takes time for wealth to build so the younger you are, the better! Money in the bank is safe but it does not protect you from inflation.
Different Retirement Options for General Public
401k/ 403b (Non-profit Organization)
One of the retirement strategies that are provided through work is a 401k retirement account or a 403b which is found through a Non-profit organization. This strategy is invested in the S&P500 (Stock Market) which is the top 500 companies in the U.S. such as Amazon, Google, Apple, etc. When the market is doing well, your money will go up a certain percent, but if the market crashes, you could lose more than half of your money. With this account, it is tax deferred meaning that you delay getting taxed on the amount in your account (taxed later) when you take out the money for retirement. You can only access the money at age 59 ½ but if you decide to take money out earlier than 59 ½, you will get taxed, penalized 10%, and you will have to pay it back with already taxed dollars. Currently taxes are 30-40% but based on the book, The Power of Zero by David McKnight, and historical data, taxes will go up and almost double by the year 2026. Would you rather get taxed now when taxes are low or get taxed later when taxes are projected to increase? The upside of the 401k, some companies match a certain dollar for dollar or percentage when you contribute to the account and nothing more. The maximum amount you can contribute to your 401k is $19,000 per year. The problem that many Americans face is becoming ill or injured before they retire. Can you guarantee that you will be healthy until or after retirement? Can you guarantee when you will pass away? Can you guarantee that you will have enough saved up for retirement if your money saved up is based on how well the Stock Market is doing? It is a difficult subject to talk about but it can get real if you’re not prepared.
401k Story: When one of my business partners were young, there was a huge Stock Market Housing crash back in 2008, which caused so much devastation to families financially. Her mom had to foreclose their house because they were not able to pay for mortgage and her mom thought she had about $600,000 in her 401k but ended up losing more than half of the amount she saved up from a 10-20 years span. She only had about $100,000 in her 401k and would have to get penalized 10% for taking it out early, and taxed by the government. Unfortunately the remaining amount in her 401k was not enough to save their home so they had to sell it and live with her grandparents and rebuild her retirement savings from zero up.
ROTH IRA is an individual retirement plan that is tax free and allows you to contribute about $5,500 per year if under the age of 50 and if older than 50 years old, can contribute $6,500 per year. This strategy is also invested in the S&P500 so the money in the account can be projected more or less depending on the Stock Market. You can only access the amount in your account after 59 ½ but if you take it out earlier than 59 ½, you will get penalized 10% and cannot pay the amount back which means you lose out on contribution savings. The less years you contribute, the less money you will have and allow to grow. This is a great strategy to have because it is tax free and uncle Sam (Scam) will not tax you later when you reach retirement age.
Life Insurance Retirement Plan LIRP (Indexed Universal Life)
The Life Insurance Retirement Plan is an Index strategy that allows the money in your account to grow with the market but do not lose money if the market crashes. Certain companies have a cap percent that mirrors the growth of the Stock Market but locks in your gains and principles if the market crashes so you do not lose money. This strategy is attached to a life insurance plan where you do not have any contribution limits meaning that you can fund this account with no dollar amount limit. If you need to access the money in the account, you will be able to take the money out tax free without penalty nor do you have to pay it back. Life Insurance provides tax free money to your beneficiaries/family in the event of passing away.
As a Living Benefits Specialist and the company I heavily market for, my team and I are trying to eliminate the need for GoFundMe accounts. GoFundMe accounts are amazing because when people become ill, injured, or pass away, they reach out to the community for donations to provide money for the expenses that Health Insurance does not cover. Most of the time these accounts are opened because people are not financially prepared for the unexpected events in life. I show people how and where they can get income replacement in case they become ill or injured, such as heart attack, stroke, cancer, or critical injury. We bridge the gap between health and finance. I am always looking for people who want to help with this cause/mission or if you know anyone who could benefit from this. Our company’s policy was able to provide one of our agents with finances when he became injured. Click here to see the story: https://youtu.be/NalApwK8kgU.
Feel free to reach out to me directly if you would like a free consultation or would like an opportunity to help others with this cause. Please send an email to Evelyn@evelyncaday.com with the Subject: Help me with Finances! Or Opportunity for Cause! I focus on the LIRP and providing extra benefits.
Books to read and Information Found on:
The Power of Zero by David McKnight
Retirement Miracle by Patrick Kelly
Tax Free Retirement by Patrick Kelly
I highly recommend you guys tap in with her she’s super sweet and knowledgeable. She genuinely cares about helping and is extremely passionate about putting millennials in better financial positions. Contact her through email or follow her via Instagram at @evecaday! I plan on having a lot more tips, food for thought, and accessible resources for you guys soon.