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!

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.