Worth is a lot more than your salary or your current assets. It’s the present value of what you do, who depends on you and what it would cost to replace you. Without knowing I would bet that you, like many women, are underestimating the value of what you bring to your family, your business and/or the worthy causes you care about.

Just think about it. You earn a salary or may even be the primary breadwinner in your family. Perhaps you have children, take care of aging parents, volunteer for a cause you love, or own a business. Now consider the costs for childcare, college, elder care, home/spouse care, the work you do for charity, replacing the value you bring to your business. Do you have any idea of how much that is worth?

Just as a rule of thumb, Prudential’s life insurance underwriting professionals would say that someone who is married and/or with dependents could qualify for life insurance in an amount between 10 and 30 times their income. This depends upon age (which generally correlates to the age of dependents, and the amount of time you are responsible for them). For example, a woman who is 50 years old or younger with a spouse or dependents could qualify for $1,000,000 of life insurance if she earns $50,000 a year or more. For a 30 year old, a $34,000 salary would qualify. Even without dependents or a spouse, a 30-year old woman making $27,000 or more would qualify for $1,000,000 of life insurance.

These estimations may not contemplate your worth if you own your own business. The amount could be far more in this case depending on business revenue streams and assets and how dependent the success of the business is on your skills. Evaluating someone’s worth would be difficult using rules of thumb, and everyone’s needs are different, but suffice it to say that based on statistics, you’re probably likely to place a lesser value on yourself than you should.

Many people are not particularly knowledgeable about financial products, and/or confident in their ability to achieve financial goals. However, if you have significant responsibilities in the home or in your business and people you care about, or if you are concerned about your financial future, consider engaging the services of a licensed financial professional to help you obtain the right insurance and financial products sooner rather than later. You ARE worth it!

1. Get organized. Knowing where your receipts, investment statements and tax returns are is an essential component of your financial plan. Setting up a system now will keep you organized throughout the year. Create separate folders for all of your 2007 tax-deductible expenses, your banking and investment statements, insurance claims and pay stubs/W2s. This one simple step will get your financial year off to a good start.

2. Make copies of important documents. In an emergency, you may need to quickly locate critical records such as insurance policies, bank account and credit card numbers. Compile a comprehensive list with account information and contact numbers for all-important accounts. Also make copies of deeds to property, stock and investment statements and other valuable holdings. Put everything in a safe place in your home and keep a copy in a location away from home, such as in a safety deposit box.

3. Start a plan for getting out of debt. It could be a daunting way to start the year, but there is no better time than now for a financial reality check. Write down your credit card balances, the interest rates being charged and the minimum monthly payments. Figure out which cards (those with the highest rates) to pay off first. There are many good books on the subject, and depending on how much debt you have, you may want to meet with a financial advisor to develop a specific pay down plan. Also, try to resist the temptation to pay off your credit cards with a home equity loan or line of credit. You'll only be trading an unsecured loan for a secured loan, without getting to the root of your tendency to overspend.

4. Review your 401(k) plan. Or sign up, if you haven’t already done so and your company offers a retirement plan. Many employers offer matching funds – sometimes as much as 50% of your contributions and up to 6% of your salary. That’s free money! If you are already in a plan, now is a good time to review your allocations for the past year to see if you need to make adjustments.

5. Check your insurance coverage. Did you make home improvements this year? Have a baby? Change jobs? You may want to make changes to your insurance policies to make sure you are adequately covered. If you or your spouse have neglected to purchase life, long-term care or disability insurance, now is the time to meet with a qualified professional to discuss the benefits of these important financial safeguards.

6. Review your estate plan. While not something most people look forward to doing, documenting your wishes in the event of your death is essential. If you have not done so already, make plans to draw up a durable power of attorney for health care and finances and a living will. These simple steps can help protect your assets and loved ones should the unthinkable happen.

Getting your financial house in order takes more than just writing down a list of resolutions. It takes discipline and planning. But having clearly identified goals and taking consistent steps towards them will help you make great strides toward having a financially happy new year.

Joshua Thomas
FInancial Services Associate
Prudential Financial
310-414-4111 ext 7203
joshua.thomas@prudential.com

According to an October 2005 USA Today poll on aging, 66% of women are worried about running out of money during retirement. And since a woman’s life expectancy is longer than a man’s – 79.5 compared to 74.1* – that fear may not be unfounded. (*Source: National Center for Health Statistics October 2001 report on the life expectancy of males and females born in 2000.) The good news is, with adequate preparation, women can help conquer their financial fears and help ensure their fiscal future is well provided for.

Step One: Peruse Your Portfolio
What will you live on when you retire? Do you know how much you need to maintain your desired lifestyle, and if so, do you know where the money is coming from? Many people expect to receive something from Social Security, followed by income from a pension plan. Other income sources may include a 401(k) plan, IRAs, Roth IRAs, mutual funds, and other investments. Now is the time to meet with a qualified financial professional to develop a roadmap for your future. Take stock of money already banked and get a clear picture of what you can do now to help reach your goals.

Step Two: Learn the Lingo
SEP IRAs. REITs. Index Funds. While you don’t have to become a Wall Street whiz to effectively manage your own money, educating yourself on the basics of saving and investing really is essential. Start at the library by checking out books on the subject to boost your investment IQ. Or you might consider a weekend seminar or online class, depending on your schedule. Educating yourself on the basics of financial planning will increase your confidence and help you set goals that are realistic and attainable.

Step Three: Confirm Your Coverage
Adequate insurance coverage and the right health and life insurance benefits are essential components of a solid financial strategy. If you’re married, discuss the critical differences between joint and single life pension and annuity benefits. Under a single life option, when your husband dies, his benefits die with him. Also, in the event you outlive him, make sure that he provides for you after he is gone.

In terms of health coverage, think long term. That same USA Today poll cited that 78% of women listed health concerns at the top of their list of fears about aging. The fact is, proper preparation for long-term health care can not only alleviate fears, it can also protect your nest egg in the event you become ill. Again, a qualified financial professional can help you make the right decisions regarding this important choice.

Anxiety about aging is normal. But allowing fear to keep you from putting a solid financial strategy together is really something to worry about. When it comes to preparing for your own retirement years as well as current needs, perhaps the most important thing you can do for yourself is simply that – be prepared. The pay off will lessen anxiety now and well into your golden years.

The answer is yes, provided you meet the eligibility requirements below and understand how it works.

The IRA owner must not exceed adjusted gross income of $100,000 in the year of the conversion – and that applies to both single taxpayers and married taxpayers filing jointly. For 2008 and 2009, the $100,000 income limit will still apply.

The conversion will be treated as a distribution from the Traditional IRA. Therefore, any deductible contributions and gain will be taxable to the owner and included in income in the year of the conversion.

The distribution is not subject to the 10% federal income tax penalty. And, for purposes of determining conversion eligibility, the conversion amount is not added to the individual’s adjusted gross income. Beginning in 2010, there will no longer be an adjusted gross income limit for Roth Conversions.

It is important to note that currently funds from an employer-sponsored retirement plan cannot be rolled directly into a Roth IRA. The money must first be rolled into a Traditional IRA and then may be converted to a Roth IRA. Beginning in 2008, employer-sponsored retirement plans will be able to be rolled directly to a Roth IRA.

For Roth owners under age 59 ½, a special rule applies to conversion amounts. Withdrawals from a Roth IRA, both basic and earned dollars, made in the five-year period will be taxable and subject to the conversion portion of the 10% penalty. This prevents a Traditional IRA owner from avoiding the 10% penalty by first converting to a Roth IRA.

IRA transfers and rollovers are powerful financial tools. If properly handled, these transactions allow funds to be shifted between IRAs or withdrawn without paying income taxes. The end result is often greater convenience and/or greater control of funds for the IRA owner. If you think a transfer or rollover might make sense for you or you just have questions, please feel welcome to contact me.

Thank you

Joshua Thomas
Financial Services Associate
Prudential Financial
310-414-4111 ext 7203
joshua.thomas@prudential.com