Pixel Tracker

Monday, December 10 , 2018, 10:14 am | Mostly Cloudy 51º


Bibi Taylor: Dealing with Financial Fears So You Can Go On with Life

I was recently helping my fourth-grader with his homework on cause and effect. We talked about the actions people took that could cause alligators to become extinct when it struck me. Early in my career, I probably could have benefited if someone pulled me aside for a candid financial cause and effect discussion.

Bibi Taylor
Bibi Taylor

Like many other professional young women, my increases in salary paid for my passing passions. Things I considered pressing — like great trips, celebratory dinners, and must-have shoes and handbags — won out over long-term considerations. I wasn’t entirely frivolous in my 20s, but I certainly enjoyed life — with all of its lack of responsibilities — to the fullest.

Fortunately, business school abruptly ended my naiveté. Suddenly, the time value of money, the beauty of compounding interest and the power of tax deferred savings vehicles became real to me. Spreadsheets revealed how fundamental financial principles could help me achieve my goals. That knowledge was powerful for me because I finally got the financial cause and effect. For example, the value of retirement contributions became real to me when I saw the tax savings, growth year after year and could visualize the cushion it created in my financial life.

My life’s path is no different from most. College. Career. Marriage. Family. I care about the same things that many other women care about and fret over the big things just as they do, including have we saved enough in my son’s college account, and who will care for my son after my husband and I are gone?

What worries most me, however, is that many women’s concerns elevate to fear. I was struck back in 2010 when AARP came out with a study that three out of five retirees feared outliving their means than they worried about death. More recent surveys reveal some other common concerns that plague women at retirement:

» future of Medicare coverage (63 percent)

» paying for long-term care (46 percent)

» paying for health care (43 percent)

Whenever someone shares his or her financial fears with me, our approach is to go back to basics and discuss cause and effect. Our team uses the same principles that gave me my “aha” moments in business school. We model various scenarios. We show the cause and effect of saving for retirement starting in your 30s as opposed to your 40s, the long-term impact of deferring 5 percent of your salary instead of 3 percent, what your portfolio might look like if you reduce your household expenses, and how your retirement income could grow if you were to push back retirement one, two or five years.

If you’re concerned about outliving retirement savings, we measure your expenses against the interest you are expecting to generate from your retirement portfolio. If there is a shortfall, we identify areas that can be cut back without sacrificing what is truly important to you. We can also discuss the possibility of funding a product that will guarantee supplemental income throughout retirement.

Fear can be fought with facts. Retirement worries can be overcome with strategies. Go back to fundamental lessons of cause and effect so that you, too, can make the small changes in your daily financial life that may bring about long-term financial security.

Put your fears aside by dealing with them so that you can go on and live the life you imagined.

— Bibi Taylor, MBA, is a wealth manager for AmeriFlex, 3700 State St., Suite 310, in Santa Barbara. Call 805.898.0893 for more information.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made using a credit card, Apple Pay or Google Pay, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Select your monthly membership
Or choose an annual membership

Payment Information

Membership Subscription

You are enrolling in . Thank you for joining the Hawks Club.

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.
You may cancel your membership at any time by sending an email to .(JavaScript must be enabled to view this email address).

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >