Can a Diva get an Explanation?

Hello Divas!

I wish the economy was treating us like divas in need of pampering instead of robbing us of our savings! Yes we are indeed in a crisis but I want to make sure we understand why.

Here are a few sites I suggest you check out.

For all the business divas - check out the stick figure powerpoint presentation.

For the ladies who love NPR -check out this american life.

For those who like satire - check out this comedic look at the crisis.


Until next time.....

Here's to your financial fabulousness!

A Website a Diva Likes....

Hello Divas!

I'm back! And bringing you all things money honey! So today in this edition of A website a diva likes, I want to tell you about a site that will help you save for that shopping trip to rome or or the trip to your downtown mall! Let's keep it real ladies, some of us will be shopping in rome - at home! But no matter what you are saving for -- vacation, a home, a wedding...-- this website will help you accomplish your money saving goal.

http://smartypig.com

The piggy bank has gone virtual and its FREE!!! It has a competitive interest rate, is fdic insured and has a social networking component. It also gives twitter updates and has a facebook page! So check it out ladies! Also click here for a New York Times article about this site and others like it.

Sometimes you have to save to be fabulous!

What’s a Diva to do in a financial crisis?

Hello Divas!

I know you are worried about your 401k money. I am worried too. With the collapse of Lehman Brothers, Merrill Lynch, and AIG, the market is going crazy and everyone is losing money.

Well diva’s, I have one word for you — relax!!!

You are not investing your 401k money for a short period of time. Some of us have 10, 20 or 30 years before we can kiss our 9 to 5 goodbye. So we do not need to panic when the market goes down.

I have said this before, think of investing in the market like dating ladies! Every relationship has its up and downs. Sometimes it’s great. Sometimes it sucks. But at least with the stock market, history has shown that the market will recover!

Diva’s, we must be patient.

I know it is painful to look at your 401k and see less money today than you did yesterday or a year ago. But there is no need to be a diva in distress. Understand your investment strategy, and make sure your 401k money is spread across different mutual funds. Diversification is essential. Most financial advisers are suggesting clients like us stay the course. The U.S. News and World Report spoke to 3 advisers about 401k investing, check out what they had to say here.

Here’s to your financial fabulousness!

Can a Diva get a bailout for her 401k?

Hello Divas!

Wouldn’t YOU just love a financial bailout? I am considering changing my name to the Bank of 401k Diva so i can get in on the $800 billion bailout!

Now ladies, all jokes aside, I know these are difficult times. As a result, more Americans are tapping into their 401k money to relieve the financial pressure. While you may find this idea extremely tempting, I am here to let you know that the 401k diva considers this move anti-divalicious. Let me explain.

Most 401k plans allow you to make a withdrawal for hardship. However these early withdrawals come with something that makes the 401k diva cringe — penalties!

Not only will you:

a. pay taxes on the money you withdraw you will also…

b. get slapped with a 10% penalty! and on top of all of that…..

c. some employers charge a service fee.

This is not diva acceptable.

You work hard for that money, and you will need every drop of it, if not more, when you get ready to retire. Financial adviser Tom Orecchio told CNN that 40% of the money you withdraw will go to Uncle Sam. Diva’s, this is one Uncle who does not deserve your money!

If you are experiencing financial difficulties and must tap into your 401k as a last resort, please get some professional advice and understand how much this decision will actually cost you. Take a look at the CNN article which provides tips on 401k withdrawals.

Keep in mind, the 401k diva urges you to proceed with extreme caution when considering this anti-divalicious behavior.

Here’s to your financial fabulousness!

To Invest or not to invest - What’s a Diva to Do?

Hello Divas!

Let’s talk Passion!

I know its rough watching the stock market go up one minute and down the next. It can feel like you’re in the midst of a passionate love affair.

One minute you hate him…

“I’m getting tired of yo sh** you don’t never buy me nothing” (Erica Badyu)

And then the next minute…

“I ain’t to proud to beg” (TLC)

We have all been there ladies! So now, welcome to the wonderful world of a passionately turbulent relationship with your 401k money.

But let’s focus on the positives of this financial relationship.

Buffet the Billionaire

Warren Buffet, one of the most successful investors in history, said in an op-ed recently that “bad news is an investor’s friend.” So, despite the current financial crisis which has reduced the value of a 401k like a designer dress at an outlet mall, the good news is that current stock prices reflect a tremendous buying opportunity for the well informed diva.

Buffet is buying American stocks. He points out that there are some great American companies whose stocks are selling at a tremendous discount due to fear. And while no one can predict what will happen in the short term, history shows that over the long term, the stock market will recover. Long term usually means more than 3 years and since your 401k money is invested 10, 20 or 30 years you have plenty of time! So keep investing ladies, your commitment to this relationship will be rewarded in the future.

I also encourage each of you to click the title below and check out Buffet’s op-ed in the New York Times, “Buy American. I am”.

Here’s to your financial fabulousness!

I want my 401k money now!

Hello Divas!

I know you want your 401k money right now, we ALL do. I mean really, can anyone tell me what diva doesn’t want an extra $5,000, $10,000 or $50,000 right now? Oh the shoes and boots I could buy!!! Especially now that it’s diva discount shopping season! I’m convinced that a true diva loves to look great for less. I just love it when a dress that looks like a $100 bucks was actually $15!!! That means the other $85 can fund 401k diva activities which include my 401k savings.

Now divas, I don’t have a debit card but many of you do. Well, here comes the 401k debit card promising simple, easy and convenient access to your 401k money. Swipe it to buy groceries, pay bills, or to take that exotic vacation. But swipe this card, which holds the money to your future, at your divalicious peril.

A Wall Street Journal article I just read, takes a critical look at these cards, but it also highlights a few advantages they offer. But just know, the 401k diva is not a fan of this debit card. This is your future ladies and as much as I believe in being a diva now, I want to save enough so I can maintain my diva lifestyle 20 years from now. This 401k debit card allows easy access to money that you are saving to create that lush lifestyle when you retire. I say take this card and shove it!

But for those of you who need some extra cash and are not turned off to the idea of borrowing your 401k money, the wsj article is a must read.

For the full story click here.

Here’s to your financial fabulousness!

Who wants to be a millionaire?

Hello Divas!

Now how about that question! We ALL want to be millionaire fabulous -or at least the 401k diva does for sure! But what does it take to reach this seemingly distant goal? A higher paying job? Investing money outside of your 401k? Spending less on diva "must haves" today and saving more for diva "must haves" tomorrow? All of this may be true but it’s not the only way to 401k millionaire status.

I just read an article by the Motley Fool that told me how to make my millionaire dreams come true. Here’s how to do it ladies. Listen Up!

1. Max out your 401k
2. Max out your IRA
3. Achieve annual market return of 10%

Ok now lets chat diva to diva. Maxing out your 401k means contributing $15,500 a year and maxing out an IRA means saving another $5,000 during the same year. On top of that, you need to make wise investment decisions and put your 401k money in funds that will perform well over a long period of time. Let’s face it, becoming a 401k millionaire isn’t going to be easy, unless of course you are 26!

Oh to be 26 again ladies! How can I turn back the hands of time? Well all is not lost for the grown and sexy, but lets hold off on that for a second. Back to the young divas — ok listen up! If you are 26 years old and contribute the maximum combined amount of $20,500 to your 401k and IRA, that money will grow to one million dollars in 41 years, even if you never make another contribution!

Ok now back to the grown and sexy, you can still become a 401k millionaire, it just takes longer. To find out how long and get tips on selecting investments for your 401k money, read the full article by clicking here.

Here’s to your financial fabulousness!

Handle Your Business Ladies!

Hello Divas!

We must learn to take care of ourselves ladies. A true diva handles her business, from fashion to finance, because no one is more motivated to take care of you – than YOU! Lets be honest diva to diva, we all want to be pampered and taken care of. But ladies, leave the pampering attitude at the spa and learn to handle your business!

If anyone out there doubts the 401k diva, then check out what some of the top finance executives at the nations largest companies had to say. In a U.S. News and World Report blog, these managers make it crystal clear who they think is responsible for managing your 401k money. Here’s a hint, look in the mirror ladies and kiss that beautiful reflection of Y-O-U!

But in case you can't find your mirror right now, here a taste of what they said:

The managers were asked:

a. Who is responsible for choosing the right investments for a 401k? A whopping 79% of the executives said this task is the employee responsiblity.

b. Who is responsible for reallocating assets in a 401k plan. Guess what ladies, 85% of the exec’s said this is an employee responsibility.

And that just the beginning! Listen ladies, I know alot of these companies talk the “we are family” line, but this “family” is not going to hold yor hand and make sure your 401k money is ok. They may offer some help, and if they do you should definitely check it out, but for the most part — you are on your own. Oh wait– now you have ME!!!

It’s your money and its time to learn how to make it work for YOU!

To read the rest of the survey click here.

The 411 on your 401k

Hello Divas!

I’m here to give you the 411 on your 401k money. Listen up!

Now when a diva leaves the house, she always looks good. Friday night I went on a blind date. I spent 3 hours in the beauty salon and forked over $130 getting my hairdo done. I spent another 2 hours and $25 getting my nails and toes done and that’s a deal in New YorkCity. Then I had to decide what to wear. Since this was a first date, I went all out and took a photo of myself in 2 different dresses and emailed it to friends to help decide which dress was best for the date. As every diva knows, it is important to take the time to pull your look together and soliciting feedback from friends helps a lot.

Ladies, the same holds true for your 401k money.

Count it up, I spent at least 6 hours getting ready for one date. However, a successful 401k diva knows its not only about looking good, but knowing your stuff! And the stuff I am talking about is quite possibly the largest investment many of you have — your 401k money.

So here get to it! Here is what I need you to do….

Get to know your 401k statement. Read it, understand it and embrace it divas, it’s not a bill. It’s your future and it’s your money.

Go pull out your most recent statement and see if any of this applies…

• Is most of your money invested in one fund?
• Do you have a significant amount of money invested in your company’s stock?
• Are all the mutual funds you own located in the United States?

If you answered YES to any of these questions then listen closely…

Unless your 401k money is invested in a something called a target retirement fund, then having all or even most of your money in one fund is NOT a good idea. Think about it, what happens if the fund doesn’t do well? Think of it like dating ladies! Until you find Mr. Right, chances are you are going to date several men. When one is not available or acting up, then you call the next guy on your dating list. It’s the same thing with funds. It’s a good idea to have several so if one is underperforming, you have others you can count on!! You have to spread the money to different funds in order to minimize your financial risk.

For those of you investing a significant portion of your money in company stock, I have one word for you Enron– enough said!

And finally, we all love America ladies. But when it comes to your money, you need to go where the action is and there is plenty of action and money to be made in overseas markets. Now do me a favor and take a look at the label on the back of your shirt, skirt and shoes. Check your make up products, the label on your handbag and the manufacturer of the car you drive. We live in a global sociey. Just las large U.S. companies are investing more resources overseas, so should you. Investing in international funds allows you to potentially make money when your u.s. funds are underperforming.

So take a look at your statement right now and see how you are doing. Your future is at stake and the 401k diva is here to help!

And oh about that blind date on Friday, the 6 hours paid off. We had a fabulous time!