Empowering Women

The Stimulus Plan passed by a 246-183 and a 60-38 margin in the House and Senate respectively. Although Republicans Collins, Spechter and Snow all were instrumental in hammering out several compromises, nary a House Republican cast a FOR vote; some predicting ruin if it passed.

Are we not IN a ruinous condition? Haven't these same Republicans asked an unemployed person, uninsured family or elderly citizen eating cat food recently how they're doing?

If it wasn't such a serious situation I might have been amused to read of worry there'll be a brain drain on Wall Street, if top level executive comp was limited. Recently insiders' voiced concerns that excessive taxes being voted upon AIG's & Merrill Lynch's top officials' retention bonuses were somehow unfair.

Responding to our government's attempts to reclaim $4.4 million of retention bonuses for Freddie Mac & Fannie Mae's four top executives, Federal Housing Finance Agency Director James Lockhart said, "We run a great risk of these same employees deciding this is the last straw and walking away."

Many Americans who do theirs, and also the work of those laid off, could easily cop the "last straw" excuse, but do not. Yet according to their annual Securities and Exchange Commission report, Fannie Mae apparently paid their Deputy Chief Financial Officer a tidy $1.1 million retention bonus AND an additional $160,000 cash bonus for filing their financial statements on time. Call me old fashioned, but I remember times when if you didn't do your job on time you were demoted or fired.

With all due respect, Mr. Lockhart, just where would these overpaid executives of failed agencies "walk" to? Last I looked, a fair amount of unemployment has set up camp, and hedge fund managers-the once easy fall back position from corporate America-are in line to buy tents.

Apparently there is a growing belief that there aren't any top level executives out there with a desire to return to some semblance of integrity, who would gain pride-yes other types of gains do exist besides the almighty greenback--in being instrumental in breathing new life into our once proud, now dilapidated, financial institutions.

Michael S. Melbinger, an executive compensation lawyer at Winsteon & Strawn in Chicago commented on the Stimulus Plan's proposed top executive pay limitations, "There is no pay for performance in this." Have we not already issued FAR too much pay for FAR too little performance for FAR too many years on Wall Street?

Are there no motivated individuals whom may be enticed with the near promise of fame and future book or movie deals (that would surely provide more wealth than an annual salary OR bonus) when they put their shoulder to the grindstone and lifted their companies out of the ashes and into a Phoenix state? Might even a few talented individuals remain of the Warren Buffet ilk-in 2008 he received the same $100,000 of base salary he has for 25 years, and $25,000 of director fees-- that would be motivated by their good name being upheld, or their not-so-good name being raised up a notch or two, when they performed?

Yes, President Obama's admonition for us all to "pitch in" applies even to top executives. It's time they use their brains for a tiny bit more than their family's luxury ski trips and ultra (not-green) fleets of bling-bling cars and otherwise opulent life styles, and roll up their sleeves to restore even a modicum of consumer confidence in the system.

Not only would this be smart, it may better ensure that we don't touch off class wars. The middle class is shrinking rapidly. There's a clearer distinction between the haves and the have nots; and the have nots are restless.

So not just is it moral to provide hope for hard working Americans, it is economically essential to stop the horrifically steep increases in unemployment. Let's get people back to work. Some of them are downright hungry; some justifiably angry. For those of us with jobs and food, we're looking for some measure of controls on those whose appetite for unlimited personal gain is apparently unrequited.

As a financial advisor, I'd be grateful for some signs that our government is strengthening Wall Street, so that I could encourage people to "invest in the stock of America" again.

Absent that confidence, the employed Larry Lunch buckets and Nancy Nurses will park their 401(k) or 403(b) in a fixed income sub-account. Not only will that not hasten the stock markets' recovery, but it will be damning to their long-term purchasing power; very possibly translate into them having to work another 10 years just to make up the lost performance compared to that of stocks, at least historically speaking.

Apparently the big fear is that companies whose executives are greedy beyond words (OR works) will seek to repay TARP monies soonest so they can be out-from-under the new executive compensation restrictions. Then, the fear continues, particularly banks could restrict the flow of loans, etc., that were designed to increase liquidity into the system-you know, Main Street.

Clearly they forgot to insert the "instructions for use" page into the TARP check envelopes; the ones where the banks were supposed to be lending to mom and pop America, not sucking up other foreign or domestic financial institutions to buttress their balance sheets, or worse yet, pay themselves big year-end bonuses. Remind me, how then would the non-flow of monies stop if TARP monies were to be repaid?

Failed companies' top execs need to admit to themselves and their families they weren't worth those groups of zeroes, nor will they receive such disproportionate compensation for horrific performance going forward. They'll perform in a fiduciary capacity and take what the shareholders feel is commensurate to their performance for the next 2 years. They'll acknowledge this will indeed involve a lifestyle adjustment--something they could receive free training on, from droves of other executives laid off even since September 2008.

There's no silver bullet; yet there's a hole in our collective row boat. We can't waste time fussing about whose end it's in; start bailing. The votes have been cast; a Stimulus Bill has passed. There's no time for smug, "I'm not responsible cause I didn't vote for it" excuses. If there's anything I hate it's a quitter, worse yet a sore loser, or a person who refuses to entertain an idea that didn't originate in their own corpus collosum. Let all that rationale comprise your campaign rhetoric next election. In the meantime, roll up your sleeves as elected politicians and work till the job is done.

What history will report on, is who did what to contribute to sound legislation to monitor the use of these Stimulus Plan funds; best ensuring that the end result is not perfect, yet the most favorable, towards solving America's biggest problems.

This country, its citizens, and their financial health and hopes rest on your bi-partisan cooperation.

I feel very sorry for women who have been socialized that "a man is a plan" and now have to "fend for themselves" after being widowed (often at an early age) or divorced. Trying to learn about finances when one is grieving is a recipe for disaster, as grieving is surely a full time job! Additionally women's family's money messages are particularly limiting, if not worse. Women's socialization has also placed huge hurdles in our paths towards understanding our finances. I'm in touch with both the necessity AND the magnitude of the task ahead. My easy steps will help us safely get in touch with our feelings about money.

Like all subconscious matter, our fears will control us until we disarm them and bring them to the conscious, so we can deal with them effectively and efficiently. Once we've taken an inventory of all our assets and listed all our expenditures we are well on our way to realizing that we can manage our doubts and devise plans to succeed.

How can women win at the game of finances, if we don't know the rules? Understanding the historic performance of various asset classes as well as commonly accepted DOs and DON'Ts will aid us in the race to compound money quicker. I'll give you the Cliff Notes of investing so you can craft an effectively diversified portfolio. Knowledge is power!

Armed with a can-do attitude, we will move from our paralysis and take the first step(s) NOW! We will institute rewards for our achievements and further feel the power of success breeding success. We commit to birthing and nurturing a plan whereby our money outlives us, because it's Our Turn Now!

It's not enough to hear what to do, we must act now, and feel the surge of pride when we move towards our goals. What we feed grows, and positive reinforcement is essential to achieving steady progress. The power within us is strong enough to channel towards converting obstacles into opportunities. I'll give you 5 amazingly simple power unleashing tips!

You need to talk. You need to talk money. You know it. But what you don't know is how to bring it up! How can you get your partner to listen to you and open up in turn? Here are a few tips not only on how to get a conversation started, but to also keep it going!

When approaching your partner for a conversation on an important issue, you must eliminate words such as "but", "always", and "never" as these words are inflammatory and will elicit defensive responses from your partner. People can't and won't listen when they feel attacked or when they feel badly about themselves! Rather use corrective language - reframe your words to be proactive and reflect your own feelings instead of accusing the other. Start conversations by using positive statements

For example:

THE WRONG APPROACH

"We'll Never be able to retire."
"You Always dismiss my concerns. I'm not stupid, you know."
"How do you expect me to stretch this money to buy holiday gifts?"
"If you think your mother's coming to live with us, you've got another think coming."
"I sure hope you've put some money away for Johnny's college."

THE RIGHT APPROACH

"I'm concerned about our retirement."
"I know I'm smart but I've avoided money matters. I need to
become more informed."
"I'd like to sit with you and figure out what we need for holiday
gifts in addition to our basic expenses."
"I'm concerned about how we can manage to have your mother
live with us."
"I'd like to know our financial plan for our children's education."

A good way to open conversation with your partner is to discuss what you know or hope to be mutual dreams and goals:

"Do we want to travel?"
"Do we want to see the grandchildren on birthdays?"
"Do we want to join a country club?"
"Do we want to be more visible in the community, and invited to more prestigious social events?"
"Do we want to be more philanthropic?"
"Do we want to gift our grandkids money for college/start a business?"
"Do we want to start our own business?"
"Do we want to volunteer for our favorite charities?"
"Do we want to participate in house swaps around the world?"
"Do we want to plan singular events and also joint events as we retire?"

.....Then let's talk about how to work together to achieve that!

But, now that you are discussing it, what steps DO you take to achieve your goals?

1. Write down your goals on a timeline,

2. Gather a list of all your financial assets,

3. Re-align investments to goals, consolidating accounts when possible; i.e., IRAs, SEP IRAs, pre and post-tax IRAs, can be combined,

4. Ensure that your CFP, CPA and attorney are strategizing with each other on your behalf,

5. Review investment portfolio and financial plan at least annually.

Following these guidelines to open a conversation with your partner about your finances could have rewards that reach well beyond just the health of your bank account. Open dialogue leads to sharing of stresses and burdens, helps reestablish mutual respect, and empowers each member of the relationship to make changes for the better. So take control of your money and your life, and ask your partner "Can We Talk Money?"

5 Biggest Retirement Dangers
Debra's Rules for Boomer Women to Win By

Recipes for Financial Success
Combining the right investment ingredients to make your dough rise

Demystifying Risk
Debra's 5 Risks that could Bankrupt Mature Women

Wise Widowed Women
3 Easy Steps Widows Must Take NOW

We Can Do it Women!
5 Confidence Builders for Timid Investors