Advice
Smart Financial Moves for Every Stage of Life
PASADENA JOURNAL — Regardless of what stage of life you’re in, you must make financial and investment decisions that will be with you for the remainder of your years. But the moves you make when you’re just starting out in your career may be quite different from when you’re retired. So, let’s look at some of these moves, stretched out across your lifetime.
Regardless of what stage of life you’re in, you must make financial and investment decisions that will be with you for the remainder of your years. But the moves you make when you’re just starting out in your career may be quite different from when you’re retired. So, let’s look at some of these moves, stretched out across your lifetime.
- In your 20s and 30s: During this period, you should strive to place yourself on a sound financial footing by taking steps such as reducing, and hopefully eliminating, your student loans and embarking on saving for retirement through investments such as a 401(k) and IRA. You also might buy a home, which offers some financial benefits, but be careful not to become “house poor” by devoting too much of your monthly income to mortgage payments. If you have young children, you might also want to start saving for college, possibly through a 529 plan, which offers tax benefits, high contribution limits and the ability to switch beneficiaries, as needed. And if you do have a family, you’ll certainly need to maintain adequate life insurance. Also, since you’re at the early stages of your working life, you should chart a long-term financial and investment strategy with the help of a financial professional. Your strategy should encompass your important goals, risk tolerance and time horizon. And you’ll want to revisit your strategy regularly to accommodate changes in your life and financial situation.
- In your 40s and 50s: These are the years in which your career advances, leading to bigger salaries. The more you earn, the more you should be putting away in your 401(k) or other employer-sponsored retirement plan, along with your IRA. During the middle-to-end of this particular period, you might fi nish helping pay for your child’s higher education – which should free up even more money to put away for retirement. You also may want to consider long-term care insurance, which can help protect you against the devastating costs of an extended stay in a nursing home.
- In your 60s, 70s … and beyond: Once you’re in this age range, chances are pretty good that you’ll either retire soon or are already retired. (Although, of course, you may well want to work part-time or do some consulting.) However, you certainly haven’t “retired” the need to make financial and investment decisions, because you’ll have plenty, including these: When should I take Social Security? Will my investment portfolio provide me with enough income to help keep me ahead of inflation? How much can I afford to withdraw each year from my retirement accounts without outliving my resources? Again, a financial professional can help you deal with these and other issues.
Also, if you haven’t done so, now is the time to draw up your estate plans, so you can leave the type of legacy you desire – one that provides for the next generation (or two) and the charitable organizations you support. You’ll need to work with a legal professional to create estate planning documents and arrangements appropriate for your needs.
You will spend a lifetime making financial and investment decisions – so put in the time and effort, and get the help you need, to make the best decisions you can.
[Arnetta Tolley, Financial Advisor, Edward Jones 626-744-2740 or arnetta.tolley@edwardjones.com.]
This article originally appeared in the Pasadena Journal.
Activism
A Student-Run Group Is Providing Critical Support Services to Underserved Residents
During his three years volunteering at the program, Resource Director Zain Shabbir, says he noticed that many of the people who come in do not know how to navigate social services support systems, particularly online. This knowledge deficit, Shabbir says, is due to age or limited exposure to technology.
Part 2
By Magaly Muñoz
Resource Director Zain Shabbir is a jack-of-all-trades at the Suitcase Clinic, a student-run resource center that provides health and other services to underserved residents of Berkeley and surrounding areas.
Shabbir was once a clinic director. Now, he manages the General Clinic, floating around when case managers need assistance. And he has big plans for a new initiative.
During his three years volunteering at the program, Shabbir says he noticed that many of the people who come in do not know how to navigate social services support systems, particularly online. This knowledge deficit, Shabbir says, is due to age or limited exposure to technology.
So, he teaches clients the basics of using email, writing in word documents, and backing up files to their phones.
Shabbir shared a story about an interaction he had with a woman who came in seeking help to create a template to message property owners and realtors as she was seeking housing. Until that point, the woman was composing separate messages to each listing she was interested in, and that process was taking up too much of her time. With Shabbir’s help, she created a standard template she could modify and use for each housing inquiry or application.
He’s also hoping to use the technology to help people create resumes to find jobs.
“[The intent] is to help people find work in the city or wherever they live — or help them find housing. As most are probably aware, the two really go together because for housing, you need income verification, and for a job you need housing,” Shabbir said.
Having a warm place to go and a hot meal may seem basic buy it is critical for people who are struggling, clinic leaders say.
Mark, a frequent attendee of the Tuesday clinic, told the Oakland Post that he’s been receiving services from the program for nearly 25 years.
Mark said he was able to receive a referral to dental care through the Clinic, which he’s been using for about 20 years now. He also utilized the chiropractor, a service that is no longer offered, for pain and aches he acquired over the years.
Many program participants say they visit the clinic now for services provided by Berkeley medical students, who rely on osteopathic care rather than traditional methods. Osteopathic medicine is a medical philosophy and practice that focuses on the whole person, rather than just symptoms.
Executive director Nilo Golchini said that many clinic patients tend to appreciate and trust this type of medicine over mainstream practices because of sub-standard care they have received in the past because they are homeless or poor.
Acupuncture is also an extremely popular station at the Clinic as well, with participants saying it “soothes and calms” them.
Attendees of the clinic are generally in happy spirits throughout the hours they’re able to interact with fellow residents. Some even participate in arts and crafts, moving from table to show their friends their new creations.
“It’s a program that’s going strong,” said Golchini. “There’s a space for everyone” who wants to volunteer or receive services, and they’ll keep going as long as the community needs it.
The Suitcase General Clinic is open every Tuesday from 6:30 to 9:30pm. Women’s and Youth Clinics are held every Monday from 6 to 9pm.
Activism
2024 in Review: Seven Questions for Frontline Doulas
California Black Media (CBM) spoke with Frontline Doulas’ co-founder Khefri Riley. She reflected on Frontline’s accomplishments this year and the organization’s goals moving forward.
By Edward Henderson, California Black Media
Frontline Doulas provides African American families non-medical professional perinatal services at no cost.
This includes physical, emotional, informational, psychosocial and advocacy support during the pregnancy, childbirth and postpartum period. Women of all ages — with all forms of insurance — are accepted and encouraged to apply for services.
California Black Media (CBM) spoke with co-founder Khefri Riley. She reflected on Frontline’s accomplishments this year and the organization’s goals moving forward.
Responses have been edited for clarity and length.
Looking back at 2024, what stands out to you as your most important achievement and why?
In 2024, we are humbled to have been awarded the contract for the Los Angeles County Medical Doula Hub, which means that we are charged with creating a hub of connectivity and support for generating training and helping to create the new doula workforce for the medical doula benefit that went live in California on Jan. 1, 2023.
How did your leadership and investments contribute to improving the lives of Black Californians?
We believe that the revolution begins in the womb. What we mean by that is we have the potential and the ability to create intentional generational healing from the moment before a child was conceived, when a child was conceived, during this gestational time, and when a child is born.
And there’s a traditional saying in Indigenous communities that what we do now affects future generations going forward. So, the work that we do with birthing families, in particular Black birthing families, is to create powerful and healthy outcomes for the new generation so that we don’t have to replicate pain, fear, discrimination, or racism.
What frustrated you the most over the last year?
Working in reproductive justice often creates a heavy burden on the organization and the caregivers who deliver the services most needed to the communities. So, oftentimes, we’re advocating for those whose voices are silenced and erased, and you really have to be a warrior to stand strong and firm.
What inspired you the most over the last year?
My great-grandmother. My father was his grandmother’s midwife assistant when he was a young boy. I grew up with their medicine stories — the ways that they healed the community and were present to the community, even amidst Jim Crow.
What is one lesson you learned in 2024 that will inform your decision-making next year?
I find that you have to reach for your highest vision, and you have to stand firm in your value. You have to raise your voice, speak up and demand, and know your intrinsic value.
In a word, what is the biggest challenge Black Californians face?
Amplification. We cannot allow our voices to be silent.
What is the goal you want to achieve most in 2025?
I really would like to see a reduction in infant mortality and maternal mortality within our communities and witness this new birth worker force be supported and integrated into systems. So, that way, we fulfill our goal of healthy, unlimited birth in the Black community and indeed in all birthing communities in Los Angeles and California.
Advice
Mortgage Rates Are Dropping: What it Means for California Homeowners and Homebuyers
The Federal Reserve (the Fed), the U.S.’ central bank that dictates interest rates, continues to indicate that a potential rate cut is on the horizon. Not only can this impact affordability for prospective buyers, but it could be advantageous for current homeowners that are locked into higher interest rates. But, what does this all mean? Chase Bank answers some of your questions as it relates to prospective homebuyers and homeowners:
Sponsored by JPMorganChase
Homeownership is more than just a lofty American dream—it’s how many can build generational wealth. For the Black community, 90% of wealth gains come from homeownership, meaning that owning a home continues to be a crucial method for Black and Latino households to build and accumulate wealth.
The Federal Reserve (the Fed), the U.S.’ central bank that dictates interest rates, continues to indicate that a potential rate cut is on the horizon. Not only can this impact affordability for prospective buyers, but it could be advantageous for current homeowners that are locked into higher interest rates.
But, what does this all mean? Chase Bank answers some of your questions as it relates to prospective homebuyers and homeowners:
What role do interest rates play in buying a home?
Mortgages respond to market conditions, including the Fed’s monetary policy. As interest rates climb, so do the interest on new mortgages and mortgage payments. Conversely, if rates fall, so does the interest on mortgages. So, buying at a lower rate can save you money in mortgage payments.
Should I wait to buy a home once interest rates fall?
Timing the market perfectly is not only challenging, but near impossible to do. While we hope the Fed will cut rates this year, it’s never guaranteed. Lower interest rates can save you money, but they’re not the only factor affecting affordability. So, instead of focusing on perfectly timing the market, we recommend leaning into what you can control: being financially prepared to buy a home.
Outside of readying your finances for homeownership, you can look for options that can lower costs and promote savings such as low down payment mortgages, down payment assistance programs and grants. And don’t forget you always can buy a home now and refinance in the future once rates drop.
How do I prepare myself to buy a home in this current environment?
We not only want consumers to attain homeownership but to sustain it. That’s why it’s important to understand what exactly you can afford before getting into the market. There are a variety of resources to help you prepare financially for buying a home to see how much you can afford in the areas you’re looking to buy, compare loan options and obtain a free credit score. You’ll also want to start compiling all of your necessary documents for pre-approval, such as W2s, bank statements, income documentation, etc.
What about the down payment? Do I need to have 20% of the home cost saved up?
Most first-time home buyers are singularly focused on saving for a down payment. However, long gone are the days of putting down 20% of the purchase price – low down payment loan options are available with some requiring as low as 3% down. Plus, there are a variety of incentives and grants that can lower your costs. For instance, Chase offers a homebuyer grant of up to $7,500, where eligible, to help with the interest rate, closing costs, and the down payment. These grants are offered in low- to moderate-income communities and neighborhoods that are designated by the U.S. Census as majority-Black, Hispanic and/or Latino.
Should I only work with one lender for my mortgage?
Studies show that 45% of borrowers who shopped around for mortgages received lower offers. Make lenders compete for your business – many have varying fees and closing costs that can add up. Also, interest rates can fluctuate daily, so lock in your rate with your lender if they offer that option for extra peace of mind.
I’m an existing homebuyer. How does a rate cut impact my situation?
It can be a good time to refinance when interest rates are going down, especially for those with rates above or at 7%. For current homeowners looking to refinance, we advise them to keep their end goal in mind as they consider whether refinancing makes sense for their personal situation. Work with your local advisor or using a Refinance Savings Calculator to understand when it makes sense for your specific situation to refinance.
Why should I refinance when rates are lower?
When interest rates are lower, you may be able to refinance your loan for a shorter term without seeing much of a change in your monthly payment. Even if your payments are higher, you may see significant savings over the life of your loan by making fewer interest payments. For example, you may decide to refinance a 30-year loan into a 15-year loan. While it has higher monthly payments, you’ll pay the loan down faster and pay less in interest.
Whether we’ll see a rate cut or not, there are many tools for first-time homebuyers and experienced owners to keep homeownership affordable and sustainable. For more information visit Chase.com/afford to start your journey, invest in your future and save in the long run.
For informational/educational purposes only: Views and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy.
Deposit products provided JPMorgan Chase Bank, N.A. Member FDIC
© 2024 JPMorgan Chase & Co.
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