Illinois Files Bias suit Against Wells Fargo

 

CHICAGO (Reuters) -- Illinois Attorney General Lisa Madigan filed suit Friday against Wells Fargo & Co., accusing the second-largest mortgage lender of steering blacks and Latinos into high-cost subprime loans.

"As a result of its discriminatory and illegal mortgage lending practices, Wells Fargo transformed our cities' predominantly African-American and Latino neighborhoods into ground zero for subprime lending," Madigan said in a statement.

High foreclosure rates resulted from the illegal sales practices, the state's attorney general said.

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Expert Explains How to Not Lose your home

Black finance expert Ryan Mack brings us advice from a place of real heart to help hard-working Americans deal with the mortgage mess. With his warm brand of personal finance advice, Mack's strongest words to the community are: "If you are having problems paying your mortgage DO NOT WALK AWAY FROM YOUR HOME!" In part one of our two-part interview, learn more about how we got into this housing crisis, how it has affected the general economy and what you should do now to protect your home.
How did you become a finance expert? What inspired you to pursue this goal?
When I was on Wall Street making great money I felt empty, because I was not an effective contributor to my community. I knew that finance was my passion, but I also knew that sitting in a cubicle making money only for the sake of self-empowerment was not my purpose.
Like too many families in America, many people in my family were not financially literate. My passion was to change that. In addition, I was always getting asked personal finance questions from peers who knew I was a stock trader. But trading is different from personal finance. To address these questions, I began to study personal finance and started a Yahoo group called MakingMoneyWork, which provided tips and strategies to over 200 members through weekly newsletters.

Click to read more on the African American Money blog.

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Dr Boyce and Tia Analyze Money and Love

Are wealthy men allowed to cheat and get away with it?  Dr. Boyce and Tia analyze this in the latest episode of Financial Lovemaking.

Click the image to listen!

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What if the Man Earns less than the woman?

If a man makes less money than his spouse, is that a problem?  What if Beyonce had outearned her husband Jay-z? Dr Boyce Watkins and S. Tia Brown cover all of this in this episode of Financial Lovemaking.

Click the image to watch!

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S. Tia Brown Breaks Down Respect in the Workplace

This week I look at issues of respect from both co-workers and your nearest and dearest.
I am 28-years-old and work in an office full of 45-56 year-old women. My issue is how to talk to them when they say things I do not like without being disrespectful. - Young & Angry In The Office

Dear Young & Angry In The Office,
I’m a firm believer of showing deference to elders, however the office isn’t the place to act out societal roles— you’re there to do your job. I firmly believe that the only way to get respect is to demand it. Some people have that certain thing about them that ensures people, whether they’re older or younger, never test them. Other people have to go get it. So how do you command respect? First, you always make sure that you’re on top of your game, for the work environment that means being efficient, punctual and dependable. Second, you have to speak up for yourself and address every infraction in a stern, tactful, professional way. That may mean giving a soliloquy about respect (such as, “we’re all on equal footing here, I give respect and I expect it,”) or taking people aside an individual when they say something that you deem is inappropriate. Only you can determine which approach will work best. Overall you want to make sure that you leave personal roles at home, these ladies are not your aunties, and they’re your co-workers –who likely take issue with working with someone 20 years their junior – so treat them as such.

My fiancé and I are planning a big, lavish, wedding and we have restricted our families to only inviting a certain number of people, so as not to exceed my parent’s budget. My fiancé’s family is insisting on inviting many more people than they are allotted and it has caused the price of the reception to soar. Do you think that I should demand that his family pay for some of the reception, or at least the head count of the additional people that they are inviting, or does that break some etiquette rules? – Breaking the Bank for the Big Day

Dear Breaking the Bank for the Big Day,

Etiquette was out of the door once your future in-laws stepped on your toes and didn’t respect your parents’ budget. Since they —like many others—love to plan with other people’s money I would like to tell you to just make them pay for their extra guests, but that could potentially cause long-term strife with your hubby-to-be. Consequently, you need to speak with him first and make sure you’re on the same page about the finances and the numbers. If both families were given an equal amount of guests then it is up to him to make sure that he stands firm by your side when you speak with his family. During the conversation make sure to reiterate that the day is you and your fiancé’s, but you understand why it is to the family, but your parents – who are paying – have given you a budget and it is disrespectful to expect them to pay any excess. Let them know the precise number of people that they are allowed to invite and that any extra guests must be pre-paid for by specific date if they are to be seated. You can also opt to include your parents in on the meeting. I doubt that your future in-laws will speak recklessly or be callous about spending your parents’ money in their faces. With that said…standing firm is only possible if you are financially independent of your in laws. You don’t want to play hardball with someone who’s helping to pay your rent/mortgage or watching your kids for free. So make sure that you’re in a position where you can’t be penalized for standing up for yourself – and your parents – or you may end up paying a bigger price later.

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Tax Mistakes You Want to Avoid

Gentlemen (and ladies), start your engines. Tax Day is less than a week away.

But as you race toward the finish line, be mindful of common tax-filing errors. Some mistakes could cost you money. Others could raise red flags at the IRS. Tax software will do math and point out tax breaks you might overlook, but these programs are only as good as the information you enter.

Here are some common last-minute blunders, and how to avoid them:

Automatically not itemizing.

A 2002 study by the Government Accountability Office found that more than 2 million taxpayers who claimed the standard deduction could have lowered their tax bills by itemizing.

Deductible expenses include interest on your mortgage, property taxes, charitable contributions and unreimbursed medical expenses that exceed 7.5% of your adjustable gross income.

Ordinarily, that threshold puts the medical-expense deduction out of reach for most taxpayers who have employer-provided health care.

But the economic downturn has led employers to shift more of the cost of health care to their workers in the form of higher deductibles, co-payments and co-insurance. That means more taxpayers could rack up enough unreimbursed expenses to claim the deduction, says Mary Canning, dean of the schools of taxation and accounting at Golden Gate University in San Francisco.

Automatically itemizing.

 

Click to read.

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The Cost of Raising Children

By: Sarah Horner
April 8, 2009
An article from MSNBC.com entitled, "Budgeting for Baby: What does it really cost?" outlines exactly how much having and raising a child will cost you.
"If you've never been a budgeter, now's the time for a financial reckoning. Experts recommend that parents-to-be and new parents dedicate themselves to whittling down their credit-card debt (ideally — and here's some tough love — to zero), while at the same time, building an emergencies-only savings account of six to nine months' worth of expenses. Do whatever it takes to meet this goal: Spend on a cash-only basis and write down every expense — or use a free online spending tracker like Quicken.Intuit.com or Wesabe.com — so you have a visceral idea of where your money goes. And be prepared to sacrifice. "If you want to prioritize the expense of a child, well, you may not need as many minutes on your cell phone and you may not need as many meals in a restaurant," says Chatzky. "And by the way, you're not going to be going to restaurants much once you have a child, anyway!""
To read the entire article, Click here

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NPR’s Farai Chideyah Asks Dr. Watkins to explain Bernard Madoff’s Ponzi Scheme

Dr. Boyce Watkins explains to Farai Chideyah how Madoff got away with stealing $50 Billion dollars in the largest Ponzi Scheme in American history. Click the image to listen!

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TIA Brown Advice: Handling Catty Comments from Live-in Relatives

Got issues? Well I have answers. My advice philosophy is simple:

Getting to our best self is easy if you take it one choice at a time.

This week I tackle a double-dose of trouble (and more). What is the best way to handle a situation when your own relatives are critical about the way you run your home and they also want to live with you rent-free?

I’m a happily married attorney with a loving husband and two adorable toddler-aged sons. My girlfriend complains about the state of my house – she thinks it’s too messy - but I am really content. I don’t see what she sees. What should I do? – Sloppy But Satisfied

Dear Sloppy But Satisfied:
Friends always have opinions but at the end of the day it is your life to live. Your biggest concerns shouldn’t be your friend’s perspective but whether you can function and whether your husband and young children are content and able to thrive in your home’s current state. If the answers to all of theses questions are yes, then tell your friend thanks, but no thanks, for his/her commentary. But if the answer is no, you should really take a look at how you can keep a more organized and aesthetically pleasing home. Since your schedule is definitely a hectic one you can start by making a cleaning schedule for larger duties, such as cleaning the bathroom or doing the laundry. Another great way to keep things tidy is to set aside 15 minutes at the end of the night after the kids are put to bed to make sure everything is put away. Ultimately, only you can determine what system works best for you.

Several of my family members live with me rent-free and contribute very little to the household finances. However, they are always making comments about the way I parent and run my house. I am very stressed and often feel upset when I’m home. What should I do? – Crowded and Confused

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Dr Boyce Watkins appears in March Issue of Essence Magazine

Dr Boyce Watkins, Finance Professor at Syracuse University, appears in the March issue of Essence Magazine to discuss money and investing in light of the 2009 Financial Crisis.

Dr. Watkins is one of the world’s leading experts in Finance and was the only African American in the world to earn a PhD in Finance during the year 2002.  For more information, please visit www.BoyceWatkins.com.

Dr Watkins has been in Essence Magazine many times in the past, particularly due to his popular book, “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.”

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Watch Out for Changes with Credit Card Companies

By Dr. Boyce Watkins

www.DrBoyceMoney.com

In case you weren’t sure, credit card companies are not out to help you. If you are financially illiterate and uninformed, they are going to exploit you. If you are worried about the financial crisis, they are going to prey on your fear to get money out of you. They are also doing exactly what the rest of us are doing: trying to remain protected in a fragile economy.

The stimulus is stymied. The bailout is a failout. The stock market has consistently given a “thumbs down” to every piece of legislation passed in response to this crisis. Our economy is like the sick man who won’t respond to antibiotics. While the results of the latest package are yet to be seen, the truth is that no one is sure what will work. Every company is out to protect their assets and hold on to their cash, which means they no longer have much interest in loaning money to you.

Yes, this is true even if you have a good credit score, which is the ironic part.

Customers are opening their monthly statements to find that credit card companies have started to either ration credit (give less of it) or raise the interest rate being paid on outstanding debt. This doesn’t even count all the dirty tactics used, like using your payments to pay off low interest debt first, quietly getting rid of the grace period or charging interest on your balance from the prior two months vs. the current one. Even when you’ve been making payments on time for years, banks keep raising the bar to maximize shareholder wealth. When liquidity is scarce, those giving out water demand a higher cost per bottle. Additionally, higher default rates have justified the increase in interest rates, but higher interest rates increase the likelihood of default. It’s a nasty cycle, really.

Lawmakers are trying to intervene. Congressional hearings have taken place. Banks are being scolded by senators who keep telling them that this form of business practice is unethical and that they are gouging the American consumer. All this might be true, but what is also true is that you can’t force banks to loan you money. Also, it is very difficult, if not impossible, to legislate a strong economy.

If you have a less than stellar financial history, there is an even greater opportunity for your credit card company to raise your interest rates. If you have defaulted on other loans or are a slow payer in other areas, then they have no problem telling you to pay up or ship out. The days of easy money are long behind us, and companies are dramatically shifting their business practices.

The bottom line is that THEY’VE GOT YOU. They know that you’ve become addicted to the debt they so readily offered in the past, and this debt has become the lifeblood for the lifestyle to which you’ve chosen to become accustomed. They know that they can charge you a higher interest rate because you can’t do anything about it. Like a drug addict who is angry about paying more for his product, you really don’t have any other choice.

Well, maybe you do.

Here is one solution: tighten your economic belt. That means putting together a financial fitness plan today that consists of getting rid of as much debt as possible. I’ve mentioned in prior articles and on our website that paying off debt can be one of the best investments you make with your money. This is especially true if you have a stable job and are paying a high rate of interest to your credit card company.

So, the Dr. Boyce Challenge for this month is simple: Create a budget which includes the steady elimination of credit card debt. That means you should list every single expense you have for the entire month on one piece of paper or a spreadsheet. Don’t leave anything out. Count the money you want to use for getting your hair done, your nails, paying your mortgage, car note, whatever. Count everything. That will be your first step toward obtaining financial fitness.

As you create the budget, allocate at least 10% of your monthly after tax income toward reducing credit card debt. So, if you earn $3,000 per month after taxes,$300 per month should be allocated toward removing credit card debt, not including interest. So, if you owe $5,000 in credit card debt, you can remove this debt in roughly a year and a half. While $300 may seem like a lot of money to find in your budget, it’s there if you look hard enough. In fact, if you spend $10 per day on lunch and/or coffee, you can find the bulk of the money by taking your lunch to work. Make this one of the first bills you pay, not the last. The last bill is the one that only gets paid half the time. It’s easier to negotiate with creditors if you don’t need them so much. Take small steps toward finding your financial freedom.

Next month, we will move to step 2 of the Dr. Boyce Financial Challenge. While I confess that this change won’t be easy, I can promise that it will be worth it in the end. Be strong and remain focused, this is your opportunity to shine.

Dr Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lipo 101: From financial fat to fitness”, to be released in April, 2009. For more information, please visit www.DrBoyceMoney.com.

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Political Report: Stimulus Plan Passes

The U.S. Senate gave final approval Friday to a $787 billion recovery package that President Obama hopes will help boost an economy in freefall with a combination of government spending and tax cuts and credits.

Sen. Sherrod Brown speaks to Senate Majority Leader Harry Reid at right on the Senate floor Friday.

Approved earlier by the House, the plan -- which went through multiple permutations as it bounced back and forth on Capitol Hill over the past week -- now goes to Obama's desk, where he plans to sign it into law by Presidents Day.

Spending in the package includes about $120 billion for infrastructure -- new projects repairing bridges, roads, government buildings and the like -- more than $100 billion for education and $30 billion on energy-related projects that Obama says will create "green jobs."

More than $212 billion goes to tax breaks for individuals and businesses, and another $267 billion is in direct spending like food stamps and unemployment benefits.

The Congressional Budget Office has predicted that the plan will create between 1 million and 3 million jobs.

Most individuals will get a $400 tax credit, and couples will get $800.

The vote by the Senate took several hours longer than a simple roll call of its 100 members generally would. Sen. Sherrod Brown, a Democrat from Ohio, attended a wake for his mother until about 8 p.m. Friday.

Voting began about 5:30 p.m. Then, the Senate chamber sat nearly empty until Brown arrived to vote about five hours later.

He was flown from Ohio to Washington on a plane provided by the White House, which said no commercial flights were available that would have allowed Brown to cast a vote and return to Ohio in time for his mother's funeral Saturday.

Click to read

 

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Helping Your Relatives in Retirement

Question: My mother is 50 years old and has no 401(k), IRA or any type of retirement account that she can rely on when she is no longer able to work. What type of plan can I set up for her so she can start saving money? L.K., Lancaster, Pennsylvania

Answer: The issue of what adult children can and should do to help assure that their parents are financially prepared for retirement is one that's getting more attention as lifespans increase and we become increasingly reliant on our personal savings to fund our post-career lives.

Typically, though, this is the type of question I get from baby boomers who, already squeezed by simultaneously saving for retirement and paying school and other child-rearing costs, now face the prospect of also having to provide financial assistance to retired parents.

 

Click to read.

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Dr Boyce argues that recession might be a good thing....sort of

By Dr. Boyce Watkins

www.BoyceWatkins.com

I hate being the doctor who has to tell the patient he has cancer, but the truth usually sets you free (or so my mother told me): We are in the midst of an economic bloodbath. It’s tough to argue that an economy which shrinks by an annualized rate of 5% is still healthy. It’s hard to tell someone that 7.2% unemployment, with the most job losses since 1945, is a good thing. A 4,000 point drop in the Dow is nothing to sneeze at, even if you have plenty of tissue. Times are tough, we know that.

But if we focus hard enough, we might be able to find a few bright sides to all this. With hopes that no one chooses to kill the messenger, I am going to give it a shot.

1) It could always be much worse.

The United States has, according to some, the strongest economy in the world. Our economy could shrink like Rush Limbaugh’s body on drugs and still be disgustingly rich compared to the rest of the world. Don’t believe me? Consider the “fast-growing” Chinese economy, the one that everyone thinks is going to outpace the United States in the next few years. Our annual tax revenues are nearly 4 times greater than China’s ($2.5 Trillion vs. $670 Billion) and they have over 4 times more people than we do (300 million vs. 1.3 Billion). In other words, our per capita tax receipts are over 16 times greater than China’s. So, we’re far better off than most of the world, even when we’re broke.

2) If there were ever an argument for getting out of Iraq, this might be it.

It’s hard to declare war on random countries if you don’t have the money to do it. War is big business and attacking other countries is a huge financial investment. If you don’t think war is about money, then you may want to take a couple of Political Science and History classes. Perhaps these troubles at home will keep us from creating trouble abroad, since Americans have lost patience with irresponsible, arrogant war-mongering. The Obama stimulus plan is asking for over $800 Billion dollars to boost our economy. We’ve already spent nearly $600 Billion in Iraq. Rather than declaring War on Terror, President Obama has declared War on the Recession, which seems to be a far better investment.

3) If you want to buy cheap stocks or real estate, this is the time to do it.

When the market rises, everyone wants to buy stocks. People forget that you shouldn’t buy stocks when prices are high, you buy when the prices are low. Companies with plenty of cash are grabbing investment and real estate bargains that were hardly available a year ago. You should be doing the same if you can afford to do it. Investors who purchases stocks after major market declines tend to do much better than those who buy during booms. You hear me Warren Buffet?

4) Struggle makes us FOCUSED.

Although I tend to be a hardcore capitalist, a part of me misses the activism of the 1960s, when people cared about more than making a dollar. OK, I wasn’t around in the 1960s, but I’ve watched enough old movies. Going through tough times not only teaches one to pursue a higher purpose in life, it also leads individuals to more carefully scrutinize the state of affairs in our government. In fact, I dare to argue that the financial crisis was just what Barack Obama needed to secure his election over John McCain. Economic prosperity allows us the luxury of choosing our politicians based on silly issues, like gay marriage (as we did in 2004). When we are worried about putting food on the table, we look beyond the silliness and choose the most qualified and most intelligent person for the job (after ensuring that he knows Africa really is a continent). Finally, tough economic times make you more responsible in your own money management, as the threat of financial insecurity keeps us all on high alert.

Those are my points, so again, please don’t kill the messenger. I certainly do not celebrate a weak economy, but I am a firm believer that focusing too much on the door that shuts keeps us from appreciating the ones that just opened. There’s always light at the end of the tunnel, a pot of gold at the end of every rainbow, and….well, you get the point. It’s the toughness of tough times that make the good times good. Keep hanging in there, it’ll be ok.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in ways that Feel Good.” For more information, please visit www.BoyceWatkins.com.

Money Expert, Boyce Watkins Speaks on A Way Out of the Financial Crisis on AOL BlackVoices

Smart Money Tips With
Dr. Boyce Watkins

Posted Jan 27th 2009 6:34PM by Alexis Stodghill
Filed under: Money Talks

By Alexis Garrett Stodghill, BlackVoices.com

Dr. Boyce Watkins is a renowned scholar and speaker in the area of finance. As an African-American financial expert, Dr. Watkins has made it his personal mission to educate our community through writing books and essays, making media appearances, public speaking and more -- so that we may become more empowered with knowledge when it comes to the all-mighty dollar. BlackVoices.com asked the doctor to share his wisdom and advice for folks seeking tips to successfully navigate the current economic storm. According to Dr. Watkins, it's still possible to get your finances in order -- in fact, it's imperative.

As a black finance expert, what is the most common problem you see in the black community when it comes to personal finance management?

The most common problem is that historically, African Americans have been excluded from the opportunity to build wealth. Money was made from our labor, but we never got much of it. That led to a laborer mentality in African-Americans that taught us how to go out and get jobs rather than learning the art of CREATING jobs. This problem was further exacerbated by the fact that building a company requires capital, which we typically don't have. Most African-Americans have far lower inheritance levels than whites, and this impacts your economic opportunities in life. Also, when you've never had much money, you are usually not very good at managing it, so we are as bad as the rest of America when it comes to our spending, saving, investing and borrowing habits.

How would you suggest that someone with little knowledge of personal finance get started on the road to financial stability?

First, get educated. Empower yourself with financial literacy. The greatest university in the world is called Google.com. You can research any topic you want. Secondly, start small. You don't have to conquer the world in two steps. Just start by saving 10% of your income. You might say you don't have money to save, but you actually do. If your boss came into your office and gave you a 10% paycut, you'd find a way to survive. Find a way to learn to save. Finally, get a "side hustle." Challenge yourself to find small ways to supplement your income. The riskiest thing to do in this economy is to get all of your personal income from one source.

You have two college degrees, a master's degree and a PhD. What would you say is the relationship between level of education and income?

Education not only gives you many opportunities to earn more money, you usually earn more money with less work, doing a job that you might actually like. Personally, education was the difference for me between being financially well off and living a life of poverty. Education also provides job security, which is often overlooked. Autoworkers, for example, were always able to make high wages with little education. But once the Big Three started to buckle, they were stuck with unskilled labor opportunities. Everyone should get as much education as they can get, since education can be a path to both a wealthy bank account and a wealthy life.

Would you share some tips for sound money management in 2009?

Yes.

-First, keep investing, especially in the stock market. When the market is low, that's the best time to find cheap stocks. Then hold on to your investments in a well-diversified portfolio (meaning, keep your money spread out). Before you know it, the downturn will have put money in your pocket.

- Learn to adjust your financial habits. Part of the reason we are in this mess is because Americans were borrowing too much money and working hard to live paycheck to paycheck. Get out of that habit, because the government is not going to be able to save us for much longer.

- Cut the toxins out of your life. If you have any bad habits or bad people draining you of your resources (a relative, a friend, or even yourself), renegotiate that relationship from one that is financially destructive to one that can be productive. For example, you may have to cut the financial umbilical chord from a dependent child, or tell that brother that he can't borrow money from you anymore. Cut the toxic energy out of your life so you can rethink your way of seeing money.

You have written extensively on love and money issues. What is your advice for best blending marriage and finances?

In 'Financial Lovemaking,' I tell couples to "find a rhythm." Merging your money is the same as merging your body (ie. sex): No one can tell you how to do it, since we all enjoy different things. You find out what your partner needs, share your own needs and then find a way to make the process comfortable and fulfilling for both parties. If your partner is a saver, then you need to respect that. Given that there is usually a deeply psychological reason that your partner is a saver, you are in serious trouble if you have habits that create financial instability in your relationship. Also, MAKE SURE you know what you're getting into: Many couples focus solely on love, lust, and physical appearance and spend almost no time observing the financial disposition and habits of their partners before making this major commitment. That is a recipe for disaster.
Before you commit your life, your future, your children and your money to someone, remember that LOVING together means LIVING together. If someone is financially irresponsible or brings a set of (what I call) "financial venereal diseases" into your life, it is going to be hard to live with them. You should check the debt levels, income levels and credit score of anyone to whom you choose to commit. Make sure they don't have any financially destructive habits, like alcoholism, drug abuse, gambling, or even the shopaholic's disease. Make sure that your financial values are in line with your partner's: For example, don't marry a woman who needs a $40,000 engagement ring if you think that a $500 ring should do the trick.

If you don't ask the hard questions, you can be locked into something with someone who literally destroys your life later down the road.

What is your opinion of the current recession? What is the best way to weather it?

The current recession may very well be the tip of the iceberg. There are serious long-term problems with our economy, and the break down of our financial system is merely a symptom of bigger issues. Additionally, this recession has a deeper problem. It is occurring during a time in which our global financial markets are integrated unlike at any other time in world history. That means that we are dealing with a problem of historic proportions on a landscape on which we've never operated.

The best way to cope with the recession is, in part, through what the government is already doing: Utilizing massive fiscal stimulus plans and encouraging global cooperation. Two other things they could have done are a) to have not wasted 700 billion dollars persuading Americans that Wall Street Bankers need to be protected, and b) to have spent more time helping Americans adjust their expectations.

President Obama seems to be trying to manage expectations, but he has already set the bar very high with his long list of campaign promises. The economic problem for Obama is that it will be extremely difficult to boost our economy back to where it was before, particularly since much of our financial gains over the past 7 years were illusions created through easy access to credit and a poorly regulated financial system. It's similar to an athlete on steroids trying to get off the drugs and then regain old form. It's very difficult to do.

On an individual level, I encourage families to remember that the government may not be there to take care of you in retirement. If you are not saving for retirement, it is critical that you do so. You should also find ways to structure care for the elderly in your family so that they are going to be OK. Also, tighten your own belts and get out of the habit of living from paycheck to paycheck. This is not a secure economy, and seemingly financially stable companies are disappearing overnight. The riskiest thing you can do in this economy is to get all of your income from one source. Find a way to make money from multiple avenues.

What has inspired you to come this far with so much self-determination, as a black man who was born to a single teen mom, then becoming a teen parent yourself?

I wake up every single day with a purpose. Dr. King and Malcolm X died young, so I never knew how much time I will have. But I am absolutely determined not to waste a single day and do all I can to help reshape what it means to be a black scholar and black leader in America. When I get emails from young people telling me that I've inspired them to change their thinking, then I know I've done my work. I know that I am not going to be on this earth forever, but I love the idea that I can impact people in such a way that the spiritual influence can last for generations.

I realized that most black professors are scared into being quiet on social issues, due to heavy political ramifications for speaking up. I also realized that many of us would rather sit in the ivory tower than to take our knowledge to the world. I never wanted to do that, and I've always felt that the role of the Black scholar in America is to use his/her knowledge to enlighten the world and uplift his/her people. That is my mission, and it is something I will continue to do until the day I die.

I also learned that it is not enough to be intelligent. You must be courageous and also sure of who you are. If you seek your validation from your historical oppressors, you will always end up chasing your own tail. Additionally, there are a long list of problems that need to be solved within our community, and it's up to all of us to do whatever we can to try and solve them.

Are there any words of encouragement or wisdom that you would like to share with the BlackVoices.com audience?

I realized a few things long ago that carry me to this day:

1) Success doesn't happen by accident. You must be deliberate with your actions and think carefully about where you invest your life, your love, your energy and your time. Everything must be proactive.

2) Extraordinary outcomes only come through extraordinary efforts. In life, you get what you give. So, if you want more, you must sacrifice more. You must be willing to do things no one else is willing to do, if you want to have things that no one else has. Never waste one second choosing to be ordinary.

3) Education is everything. Get as much of it as you can. Don't just become a student, BE AN EXTRAORDINARY STUDENT. Never let anyone tell you what to think. Keep your mind liberated so you can find truth and meaning in your endeavors.

4) The best way to get "pimped" is to spend your life trying to work for somebody else. Even if you are the highest paid slave on the plantation, you're still a slave, and you're still on the plantation. Get off the plantation and find a way to true wealth and prosperity. But don't get into the habit of worshipping money. Your goal is to live a wealthy life instead.

5) Keep BS out of your life so you can focus on achieving your goals. Most of us don't do half of what we plan to do because we spend all our time on silly, wasteful activities. There are 8,760 hours in a year and 168 hours in a week. You should budget your time the way you budget your money and not let anybody waste it.

6) Never allow yourself to be without goals. It's not where you are that matters, it's where you're going that determines where you end up. Always be aware of where you are going, and what you need to do in order to get there.

Keep a life full of purpose, and that will make every day worth living.

African American Expert Boyce Watkins speaks with Free of 106 About Financial Lipo! Pt. 3

African American Expert Boyce Watkins speaks with Free of 106 About Financial Lipo! Pt. 2

African American Expert Boyce Watkins speaks with Free of 106 About Financial Lipo! Pt. 1

Dr. Boyce Watkins Shares Thought on Consumer Confidence

Dr. Boyce Watkins
www.Boycewatkins.com

If you wish to see a video explaining consumer confidence, which is one of the driving issues behind the recent moves in the stock market, please click here.

This has been an interesting week, with auto execs showing up on private jets to request a bailout from the government and the Dow moving to below 8,000 points for the first time in 5 years. I still hold to the fact that this is a great time to get into the stock market if one has never done so before, especially if you are under the age of 50. By the way - please visit our sponsor, GreatBlackSpeakers.com if you are interested in hiring a top notch African American speaker or seeking to become one.

Take care!
Boyce Watkins
http://www.blogger.com/www.boycewatkins.com
Click here to join our money advice list.

=====================================================================================
If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.

Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:

1) Confident consumers spend money

If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.

2) Confident companies invest money and hire workers

Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.

3) Confident Americans do not take their money out of banks

In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.

4) Confident investors keep their money in the stock market

The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.

5) Confident banks make loans

Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.

The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.

Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, BET, ESPN and CBS. For more information, please visit http://www.blogger.com/www.boycewatkins.com. To join our money list, please click here.

Dr. Boyce's Tips On How To Become A Confident Consumer

If We Really Should Really Trust The Government - Boyce Watkins

Keeping Your Confidence While In The Financial Crisis

by Dr. Boyce Watkins
http://www.boycewatkins.com/

If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.

Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:

1) Confident consumers spend money
If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.

2) Confident companies invest money and hire workers
Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.

3) Confident Americans do not take their money out of banks
In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.

4) Confident investors keep their money in the stock market
The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.

5) Confident banks make loans
Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.

The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good”. For more information, please visit http://boycewatikns.com/

Dr. Boyce Tips For Making It Through Financial Crisis

Marc Lamont Hill, Bill O'Reilly Discuss Economic Crisis

Love, Money and Family: Where We Always Get it Wrong

By Dr. Boyce Watkins
www.FinancialLovemaking.net

People fall in love every day. Some fall in love forever, and some just love the idea of falling in love. We are all familiar with the bliss and agony of love, and our mating, dating and procreating choices define much of the quality of our earthly existence.

But many of us love in all the wrong ways and make short-term choices with serious lifelong consequences. For long-term relationships, reality eventually sets in, and we learn that LOVING together means LIVING together. The thrill you once got from a long, seductive kiss is replaced by the excitement of a good home appraisal or bank account increase. Financial insecurity and emotional insecurity become one and the same, as we find there is a strong correlation between financial deception and emotional betrayal. A big part of living is MONEY. According to a study by the Council of Relationships, money is the number one reason for divorce. This alarming reality is a strong reminder that not discussing the financial and practical dimensions of your relationship can cause you a lifetime of misery.

Some consider it taboo to discuss love and money in the same sentence. I consider it ESSENTIAL. While we might mull all day over a potential mate’s emotional compatibility, sexual compatibility, professional compatibility and spiritual compatibility, most of us don’t spend one second thinking about financial compatibility. Many couples step into serious relationships and marriage without knowing their partner’s income levels, debt levels, credit score, retirement savings, or any of the other significant pieces of information that are going to have a dramatic effect on their love life. Merging your life with a financially irresponsible person is like putting your children into a car with a drunk driver. Once you are in the car, your fates are inextricably linked.

Money plays a huge role in our quality of life, emotional well-being, ability to raise our children properly or ability to spend time together. Money can either be a tool to enhance your love or a weapon to destroy it. Many people have seen their love and relationships ruined by financial problems, financial deception or financial exploitation. How we manage, confront and conceptualize the power of money plays a huge role in how our relationships evolve. That is what Financial Lovemaking is all about.

You think money doesn’t matter in a relationship? Well, here is just a small list of ways that someone could ruin your life financially:

• A partner with horrible credit could keep you from ever getting loan.
• A partner with terrible spending habits can ruin a family’s financial security.
• A partner with a substance abuse or other costly addiction could deplete a family’s assets.
• A partner with unhealthy connections to deadbeat relatives, who always need money, may drain your assets.
• A partner that with an income that is too low due to a lack of education or poor professional choices could ruin you financially.
• A partner may steal money from you or borrow it without your permission and use it for something frivolous (i.e. a bad business investment, gambling, etc.)
• A partner who makes bad financial choices may get you into trouble with the IRS.
• A partner who decides to separate from you may end up dragging you and your money through a long and costly legal battle.

I just gave you the short list of ways that money directly impacts your love life. I am sure you can think of experiences you’ve had or those of your friends. In fact, I encourage you to visit our Financial Lovemaking blog to share your personal story on how love and money have impacted your life.

I am not here there to say there’s nothing going on but the rent. However, I can say that nothing else goes on if the rent is not being paid. So, good Financial Lovemaking is the necessary step to good love. Don’t forget that.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” He does regular commentary in national media, including CNN, NBC, CBS, MSNBC and BET. For more information, please visit www.FinancialLovemaking.net.

Retirement 101: The early bird gets the nest egg

I spent last summer with the Center for European Economic Research. During this time, I had a revelation: America is headed for a horrific retirement crisis, unlike anything we’ve ever seen. The recipe for disaster is quite simple: Americans are not saving, the cost of health care is rising, pension plans are disappearing, Social Security is nearly dead, and people are living longer than ever before. A longer life only prolongs the misery of that life if you have not saved and prepared for your future.

I talk to college students all the time about saving for retirement, and I am sure that about 1/3 of them listen. I didn’t listen when I was in college, but I wish I had. If I had done so, I would know about the Financial Magic that takes place when you save and invest in the stock market over a long period of time. I’m not talking Harry Potter, but the Pot of Gold at the end can make your life as rich as a Hollywood block buster.

Let’s do the math: Assume that Angela starts saving for retirement at 45, Danny starts at 35, and Cindy starts at 25. All of them save till they are 65, each investing in the stock market, earning an average return of 10% per year. Angela earns the most on her job ($55,000) since she is the oldest, with Danny coming in second ($45,000) and Cindy coming in third ($35,000). But when Cindy is 35 and 45, she will earn the same amount as her older counterparts. Based on this assumption, all of them earn the same amount over their lifetimes. I won’t adjust for inflation, since this has been enough to absorb already (isn’t math annoying sometimes?).

Assume Angela, Danny and Cindy each save a measly 10% of their pay before taxes and have that money put into a retirement account that invests in a diversified portfolio in the stock market. By diversified, I mean that they don’t buy just one stock, they have their money spread out over a lot of stocks and all their eggs are not in one basket.

Let’s figure out the size of their nest eggs, shall we? Drum roll please: Angela, who got off to a late start, will have $348,041.50 in her retirement account, minus taxes paid when she withdraws the funds. Not good, not bad. It’s better than nothing.

Danny is better off. By saving 10% of his income when he earns $45,000 and then continuing to save when his pay rises to the level of Angela’s, Danny ends up with $864,826, more than twice as much as Angela. Good for Danny, he can afford to maintain his golf and cheeseburger habit.

Cindy is the smart one. Fresh out of college, she doesn’t spend all of her money at the club. Instead, she spends some of it planning for her financial future. Starting at 25 instead of waiting, how much doe Cindy have at retirement? A cool $1,907,340.54. You go girl. Instead of saving just 10% of her income, she may save 20%, which would effectively double this amount to $3.8 million dollars. Now, that’s Financial Magic at its best. Harry Potter has nothing on Cindy.

What’s my point? The point is obviously not for you to obsess over the tiny variations in numbers. My point is that by planning ahead, you can get ahead. If you are planning behind, then you’ll always stay there. Start saving early if you can, and if you can’t start early, then get started TODAY!

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging assets with your partner in ways that feel good”. He provides regular commentary in national media, including CNN, FOX, BET and CBS.

Why I really hate Gift Certificates

My mother, who is one of the wisest people I know, was talking to me the other day about gift certificates. We were having this discussion while debating what to get our needy-ass, yet loveable relatives for Christmas (only a couple of them are needy, most of them are loveable). Christmas is that overly commercialized holiday that seems to come every single year. I don't mind Christmas, but it seems that the word "Christ" has been removed in exchange for the last part "must". "I MUST have this", "we MUST do that", it's crazy!

At any rate, we were wondering if gift certificates were the best gift to give, since it avoids the awkward, yet inevitable reality that you are going to always end up giving something to someone that they just bought, don't want or don't need as much as something else. So, you have then graced your loved one with the burden of yet another trip to the pawn shop or the 50 mile long Walmart return line right after the holidays are over. They are also burdened with the guilt of having to pretend that they like your gift, even though they really don't. You know, those fake, awkward smiles that make your face hurt and stomach turn.

We both concluded in our scientific analysis (My Mama and Me Labs, Inc.) that gift certificates were better than regular gifts, since you can get what you want.

But I had to put the brakes on our ground breaking analysis....I then said, "Well, based on that logic, it would seem that money is the best gift certificate, since you can not only get whatever you want, but you can use it at any store."

That led us to wonder: "What exactly do companies give us in return for exchanging a hard earned $50 dollars that can be used ANYWHERE for their pathetic, multicolored little piece of paper that can is also worth $50, but can only be used in ONE PLACE?"

Nothing.

The companies typically give us nothing in exchange for the purchase of a gift certificate. It would be one thing if they allowed us to purchase a $30 gift certificate for $25. That would make our decision to limit the stretch of our money at least partially worth while. But when you give them $30 dollars that can be spent anywhere, they give you back the same $30 dollars that can only be spent at one place.

That's not all they do to screw us for the holidays.

Companies also get over on the fact that many of us never use the gift certicates anyway! According to Needham, Mass.-based consulting-firm TowerGroup, over $5 billion dollars in unused gift certificates allow corporations to fill the stockings of their stock holders. And believe me, they aren't giving that money to charity.

So, my mother and I both came to the grim conclusion that gift certificates, from a financial standpoint, are not very good gifts. Cash is the best gift certificate there is. It's the thought that counts, and my mother and I put quite a bit of thought into our decision. We hope our relatives appreciate it.

So this year, everyone we love is going to get a card with cash in it. That's the same gift that makes every third grader smile (Remember when that old relative you never talked to sent you that ugly card every year that always had cash in it? Don't pretend like that WAS NOT the first card you opened!). Perhaps the third graders are onto something, since this gift can make adults smile even more.

Financial Lovemaking: Merging Assets with Your Partner in Ways that Feel Good

You can think of the Financial Lovemaking system as the “Kama Sutra of Money Management”. It teaches you the ins and outs of the financial lovemaking process, and how your financial choices can serve to stimulate and strengthen your relationship, rather than destroy it. Millions of couples are making financial love, and a lot of them are doing it the wrong way. Here are some tips on how you can avoid being one of the millions of people who find themselves with battered relationships due to bad financial choices.

Here is just a small list of ways that someone could ruin your life financially:

A partner with horrible credit could keep you from ever getting loan.

A partner with terrible spending habits can ruin a family’s financial security.

A partner with a substance abuse or other costly addiction could deplete a family’s assets.

A partner with unhealthy connections to deadbeat relatives, who always need money, may drain
your assets.

A partner that with an income that is too low due to a lack of education or poor professional choices could ruin you financially.

A partner may steal money from you or borrow it without your permission and use it for something frivolous (i.e. a bad business investment, gambling, etc.)

A partner who makes bad financial choices may get you into trouble with the IRS.

A partner who decides to separate from you may end up dragging you and your money through a long and costly legal battle.

Things you should know before you start the system:

The key to good financial lovemaking is oral – you must communicate with your partner

You must be prepared to be honest.......Honest about areas that need improvement.

The key to good financial lovemaking is rhythm.

It’s not a matter of someone being good or bad. It’s about whether or not they are compatible with you.

Do they complement you if you are seeking to be complemented? Do they contrast with you in ways that you know you need to be contrasted? Do they serve to strengthen your good habits or enable your bad ones?

Steps in the financial lovemaking system

1) Getting financially naked with your partner
2) Request documentation of credit reports, debt levels and income levels

The documentation must be recent, not delayed.

3) Taking and giving your partner an FIV test (The Financial Irresponsibility Virus)
Does your partner have a financial venereal disease?

4) Getting your body ready for financial lovemaking....How are you going to look when you are financially naked?

If you do not have a partner, how do you get ready for when you do?

How do you feel about your financial body in the first place?

5) Financial foreplay

This process can be fulfilling, rather than frightening and draining. Spend time getting your partner excited about making financial love. You may have to educate them about the process.

6) Financial fantasizing: Do you have any financial dreams and goals you want to share? Write them down together and tackle them together. Try to find mutually exciting fantasies.

7) Consider doing a 3-some: Get good advice – bring in an objective outsider who can facilitate your lovemaking process. Subscribe to magazines and websites that are going to enhance your financial lovemaking with one another.

8) Finding a rhythm: It’s not a matter of them being spenders or savers. The question is whether or not you can live with what you see. Does the person’s habits complement your own and allow you to reach goals more easily? Do you have a plan on how you are going to merge your money and manage it together? Is everyone involved, or are there silent partners? Remember – Silent partners don’t get to make financial love. Silent partners just get screwed.

9) Reaching your climax together: Are you on the mountain top alone? – Have both of you agreed that your financial goals work best for each of you, or is one of you taking the lead and running with it? Did both of you participate, or did one person do all the work? This can leave you feeling burned and bitter.

Questions you must ask yourself to determine your needs during Financial Lovemaking

1) Does size really matter? – The size of your mate’s bank account.
Does it matter to you?
How do you feel about your own size?
Do you feel good or bad about your partner’s size?

2) Am I a selfish financial lover?
Bad lovemaking usually starts with selfishness or deceit.
How do you respond when things go bad?
Do you see your partner as “your ticket”, or do you see them as someone who supplements what you are going to bring to the table?

3) What is my own relationship with money?
This is going to impact how you deal with the money of others. It also plays a role in determining whether or not you need financial condoms (protective mechanisms to allow you to keep your money distinct from anyone else’s).

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.