Hispanic Consumer Market - Prudential Financial

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Hispanic Consumer Market: Solutions to Help Improve Your Financial Wellness

Our wish is for you to attain your life’s goals and dreams. When you improve your financial wellness, the far-reaching benefits provide a “wellness effect” that extends not only to you, but to your families and communities. We will continue to share the solutions to help you start today to attain financial freedom for all your tomorrows. This year, starting at Hispanicize 2017 and throughout the 2017 DiMe tour, we intend to share solutions to some issues that continue to trouble a majority of the Hispanic community:

What you can do from today, going forward For Hispanics, the disconnect with financial planning is largely rooted in lack of awareness and familiarity. Essential questions about financial wellness were asked during the DiMe/Prudential five-city #WomenInspired tour of Latina influencers in 2016. Approximately 100 influencers took part in heart-to-heart conversations and exchanges during the tour, which uncovered a lack of understanding of many important financial issues. The tours provided an eye-opening learning experience that influencers shared with their audiences via personal blogs and videos. There were key themes that arose from the tour, which are likely to be of substance to the larger Latino community. Personal quotes from influencers on their most important lessons learned begin each section of this report.

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First Step: Follow Your Own Budget While Juggling Savings

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Save for a Rainy Day—Expect the Unexpected

F unding a Multigenerational Household: Retirement, College and Eldercare

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Solutions for your questions This report may help address some of the solutions that may help to protect yourself and those you love; work the numbers of a business/entrepreneurship; deal with budgets and investments; set up guaranteed income in retirement; and pay for college & elder care while saving for retirement. Receiving a helping hand from a Prudential Financial Professional can help put you on a more focused financial path. Many are involved in your community and savvy in the knowledge of Hispanic culture.

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ABC’s of Retirement Savings Plans and Social Security Life Insurance: For Those You Love, Except When It’s for You!

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10 Crucial Financial Tips for Entrepreneurs

Working with a Financial Professional ROCKS!

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First Step: Follow Your Own Budget While Juggling Savings “I want to create a future by taking the right steps on the road to a financial future that defies the current statistics for Hispanics!” There is a household tug of war for every dollar a family earns. But are you aware of where the money is spent? Do you know where you stand financially – Today? In 10 years? In 20 years? The challenge of building a more secure financial future may seem daunting, but it isn’t as difficult as you think. Managing your money is like anything else that you want to do well. It takes practice, patience – and most of all – a plan to do it right. It’s difficult to build a financial strategy without first figuring out what is important to you and your family. Start the journey there, and everything else will fall into place. A few basic concepts are all you need to effectively manage your money.

Create a budget Here’s the bottom line: balance how much you earn vs. what you spend…or what you “think” you spend. If you are not tracking your money trail, how could you know? See the interactive tool “Slice A Budget” (http://bit.ly/2nkiMVT) below to learn how finding the right balance of spending and saving could help you grow your money for tomorrow.1

How can you invest for the future when the mortgage, utilities and credit card bills are due this week? You might have to buy new computers for your business or take an unexpected trip to meet a client. It’s easy to become overwhelmed with your finances when there are so many issues to tackle. You might want to become debtfree, save for retirement, buy life insurance, pay for college and more. Realistically you won’t be able to accomplish everything at the same time, nor is it necessary. For example, you might be able to pay down your credit card bill in six to 12 months. But saving for a down payment for a new home could take two or three years of diligent saving. Meanwhile, setting aside funds for your five-year-old daughter’s future college tuition is a long-term mission.2

Get an accountability partner

Wait! Did you remember to include credit card payments, especially more than just the minimum due? Otherwise, it will take decades to pay off even a small debt. Adjust your budget so that you can plan how long it will take to erase this debt. In the meantime, consider using cash instead of plastic going forward. Did you budget for special occasions and Christmas? List everything from birthdays to weddings to plan for those expenses. And finally, add in your “nice to have” splurges. Of course you deserve to reward yourself for working hard. It’s okay to splurge, but plan a certain dollar amount to allow yourself each week. 2

Put your savings plan on auto-pilot. One of the best ways to become a better saver is to stop thinking about it. You can set up automatic, recurring monthly transfers to your emergency fund. That way, you never see the money in your checking account and won’t be tempted to spend it. This is also great way to bulk up any savings account, from a 401(k) to your business expansion fund.

The art of juggling finances

Balancing current and future obligations is not an “either / or” proposition. The key is to assign easy-to-handle dollar figures for each of your goals. Take action! Don’t simply say, “that’s impossible” because the numbers seem too large.

Begin by writing a list of everything you spend in a month. If that seems too intense, start with just a week. First, include your necessary expenses (rent/mortgage, groceries, utilities, health insurance).

of your emergency fund as a bill to be paid each month, it’ll be easier to incorporate into your budget and spending plan.

Now that your budget is complete, do you have any money left? No matter what the amount…$10, $20 or $100 dollars, that’s what you have today to set aside for tomorrow: your retirement contributions, building an emergency fund, paying off credit card debt and more.

Do you have someone in your life who acts as a sounding board when life throws you a curve? It helps to have a financial accountability partner – a person who will help you stay on track. For some, that means working with a close family member or friend. For others, a trusted Financial Professional has the financial knowledge they want and need. Data show Hispanics don’t usually think of this route first, often because of misconceptions about cost and mistrust of financial institutions.3 But, a reputable Financial Professional can help you develop a customized financial strategy without breaking the bank.

Bonus points. If you have received excess cash through an inheritance, bonus, or tax refund, make sure you direct a percentage of it into your emergency fund. A fully funded safety net provides security and satisfaction, and you can still use some of the extra cash to splurge…a little.

Save for a Rainy Day – Expect the Unexpected “I need to prepare for unforeseen circumstances so that my family is taken care of.” Risks? Nah! Nothing bad is going to happen to me! It’s human nature to be optimistic. We tend to think bad things happen to other people, not to us. But take a realistic look at what’s happening in the world today. Too many people are unprepared for life’s hard-to-predict financial risks. Emergencies, accidents, and unforeseen events happen when we least expect them, from health or dental expenses to sudden but necessary car and home repairs. It’s best to think optimistically, but plan realistically. So be proactive in protecting yourself and your family. Whether you call it a rainy-day fund or emergency fund, set aside enough money so that sudden financial needs don’t derail your budget. Ideally, you should have enough saved to cover your living expenses for six months to a year. This type of savings can be a challenge. We’ll break things down to show you how to make that emergency fund grow, starting with some great news: it’s easier than you think. Following are a few solutions to try. Pay down your debt. Wiping away credit card or loan debt will leave more money in your pocket for an emergency fund. The dilemma: Your debt has a high interest rate and your savings account has a very low interest rate, leaving you with a net loss. Try this: If you have $500/month earmarked to pay down debt, use $250 of your available funds to pay down your highest-interest debt, then send the other half into an emergency account. Don’t forget to pay the minimums on the rest of your debts. Continue on this path, paying off one credit card or loan at time.4

2. P rudential. How to juggle today’s bills and still plan for the future. http://bit.ly/2neG3Xv

Think about “wants” vs. “needs.” Put off spending money on large purchases and reduce discretionary spending. Then you can start channeling that found money into your emergency fund.

3. P rudential: Hispanic American Financial Experience. 2014. http://bit.ly/2nvoUuU

Schedule “paying” into your fund like a monthly bill. If you think

Sources: 1. P rudential. The basics of creating a financial strategy. http://bit.ly/2nPEoea

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Slow and steady wins the race. A bit of unconventional advice: don’t rush. Build your emergency fund slowly over time. Don’t overfund the account only to repeatedly remove those funds for monthly expenses. Putting that money away (no matter how small each deposit) and not touching it is the best way to be sure it continues to grow.

Don’t deprive yourself. For best results, avoid scrimping and saving so much that you start to feel deprived. If you never let yourself enjoy an evening out or the occasional clothing splurge, your plan might backfire. We all need incentives to stay the course. Leave room for occasional indulgences. Bottom line. Put these tips into practice and in a few short weeks, you’ll be surprised at how easy it is to expand your savings. For additional tips to disaster proof your financial future: http://bit.ly/2neypfD Source: 4. P rudential.com How to Build an Emergency Fund. http://bit.ly/2biCAzw

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Funding a Multigenerational Household: Retirement, College and Eldercare Your Finances Come First; Helping Your Children and Parents Are a Close Second “My top learning experience was understanding the concept of the ‘Sandwich Generation’ and how women my age worry not only about their kids but also their aging parents. The financial stress I perceived impacted me tremendously.” Take time to evaluate your strategy for managing two of life’s most important – and most expensive – financial goals: paying for college and caring for multigenerations without sacrificing your retirement.3

• Choosing from among multiple competing financial demands for limited income • Deciding whether to pay down debt or save for the future In this situation, you may be inclined to put the needs of your children and parents before your own. But a balanced approach to financial preparedness will help you better position your entire family for the future. There are things you can do to help balance your family’s financial needs.

Managing yourself Set your priorities. To help someone else, you need to be able to help yourself first (the airplane oxygen mask analogy works well here: “put on your own mask first before helping others around you”). Finances, like nothing else, can tear a family apart. So, to avoid future chaos and fighting, have your own retirement plan in place, set priorities and have open communication with your entire family. Determine ways to share the financial, emotional and time burdens of caring for multiple generations.6 Your retirement comes first. Do not sabotage your own retirement plan and retirement savings account (i.e., your 401(k)) to take care of aging parents. Dipping into your own retirement savings accounts can lead to a vicious cycle of debt or inadequate savings that may ultimately affect your kids.5

Often Hispanic families use long-term savings to put their children through college, leaving parents”—many of who are immigrants or first generation”—without savings or a safety net.3 Many Hispanic families are members of the sandwich generation – those squeezed between attending to the needs of parents and of children. Hispanics are on the top of the chain, compared to Non-Hispanic Whites and African Americans in this situation.5 The sandwich generation refers to adults who are responsible for their own financial needs as well as the financial care and support of both their elderly parents and dependent children. Typically, adults who belong to the sandwich generation span in age from mid-30s to 60s.5 Data shows one in six Hispanic households support their parents and 42 percent of non-U.S. born sending money to relatives in their home countries.3 Hispanic households who take care of multigenerations within the family often face additional challenges.5 • Covering expenses, including day-to-day household expenses, and longer-term expenses such as children’s college, retirement, and parents’ health care 4

check to see if your employer offers an eldercare assistance program. If not, many communities have programs and centers that can help relieve some of your burden.

affect their your retirement security. Two million Americans age 60 and older carry unpaid student loans taken out for themselves or their children.8

Managing your Children

Know your financial aid options when the time comes to choose colleges. There are plenty of alternatives besides using your retirement funds to pay for your children’s college. Grants, workstudy programs, and low-interest loans help make college affordable. Financial aid is available from a variety of sources for college, career school, graduate school, and professional school. See link below to see explanations of each type of aid and how to apply for it. https://studentaid.ed.gov/sa/types

Teach your children about saving. By educating your kids at an early age, you’ll increase their motivation to save later. Start by having them earn an allowance by doing chores around the house and setting up a bank account for them to keep their earnings. Start saving for college early and watch your money grow with your children. As you’re juggling all your other financial matters, don’t forget about saving for your children’s education. No matter how little you save, even one dollar a day, every cent makes a difference in affording their higher education. See link below to learn more about special 529 education savings plans operated by states or educational institutions and find several savings calculators.7 http://www.savingforcollege.com/intro_to_529s/what-is-a-529plan.php Be cautious about over-borrowing for your children’s college costs. Unmanageable student loan debt can dramatically

For a checklist of seven steps to help you plan for college and protect your retirement: http://bit.ly/1Ue1OOT

Sources: 3. P rudential: Hispanic American Financial Experience. 2014. http://bit.ly/2nvoUuU 5. Prudential. Running a Multigenerational Household. http://bit.ly/2m5Bul1 6. K iplinger. Financial advice for the sandwich generation. http://www.kiplinger.com/ article/saving/T065-C032-S000-financial-advice-for-the-sandwich-generation.html 7. http://www.savingforcollege.com/ 8. S tudent Aid.ed.gov. Saving Early = Saving Smart. https://studentaid.ed.gov/sa/sites/ default/files/saving-early.pdf

Create and/or update estate planning documents for everyone. Ensure that both you and your parents have named a durable power of attorney, a health care directive and have updated living wills. Taking such actions is often difficult for Hispanic families who are uncomfortable talking about death, but it will help ease conflict and legal and financial issues down the line.6

Managing your parents Ask your parents the tough questions. Find out if they have a life insurance policy, annuity, pension, will or estate plan, long-term care insurance, etc. Consult with a Financial Professional to see if there are any products that can help. Consider long-term care insurance for your parents. You should start talking to your parents about long-term care insurance when they are in their late 50s. The cost of this type of insurance increases as your parents age and their health deteriorates.6 Look for employer and community eldercare resources. If you are finding it difficult to balance work and your parents’ needs,

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ABC’s of Retirement Savings Plans and Social Security “I learned that it is possible to allocate money in my savings and for the future.” Pay rent or mortgage bill on time. Check!

expenses and health care; and trying to stay out of debt. Among most Latinos, these all rate as higher concerns than retirement.3

contribute at least the same percentage of dollars or you will be leaving free money on the table.10

But here’s the good news. Once you learn how straightforward it is to save for retirement – and the huge benefits available – you might want to start the process immediately.

What’s your first step?

Did you know that cash flow for your retirement will most likely come from a combination of workplace or individual retirement accounts, Social Security, personal savings and other sources?9

Pay weekly grocery bill on time. Check! Enroll in benefits at work. Hmmm. I’m not sure. Saving enough for retirement goals. No. I don’t know how to start. Rest assured, you are not alone: 70% of Hispanics in the U.S. have no retirement accounts.3 There are many reasons why, especially since retirement seems so far, far away in the future. In many cases, it’s not a lack of discipline, but unfamiliarity or unawareness of various options available for retirement savings.3 Several other factors are also in play. Many Hispanics feel like they can’t begin to think about saving for future retirement because of their concerns for today’s finances. These may include the cost of caring for multigenerational families; paying for college, household

Many employers offer defined contribution plans, such as the most well-known 401(k). These plans come with tax benefits, such as pre-tax contributions and the opportunity for tax-deferred growth. Plus, contributing to a 401(k) can be easy because most employers allow you to automatically deduct the funds from your paycheck. Generally, you only pay taxes on contributions and earnings when the money is withdrawn.10 For more 401(k) information: http:// guides.wsj.com/personal-finance/retirement/what-is-a-401k/ Employers also may provide matching contributions to your retirement plan account which can range from 0% to 100% of your contributions. Whatever your employer contributes, try to

If you work for a company, ask human resources to guide you to the correct department or individual to discuss the kind of retirement benefits offered and if you are eligible. Understanding the financial language used to explain these benefits is a road block for many. But this is not the time to become intimated or give up. Many employers offer explanatory videos, websites and most important, one-on-one meetings with benefit counselors. In addition, ask if there are any plan-related seminars you can attend and if you can bring family members. The best route is to make an appointment and if you need it, ask for a Spanish-speaking counselor if one is available. Or you could work with a Financial Professional to help you through the process. Don’t be afraid to ask questions. If you still don’t fully understand, ask if the details can be explained to you in a different way. This type of personalized communication can build trust and produce the best outcome for you.

Non-employer plan options What if your employer doesn’t offer the retirement benefits you need or you are self-employed? The plan for saving retirement dollars doesn’t have to be restricted to an employer. Especially since Hispanics tend to be employed with companies that offer less access to retirement savings plans.3 For entrepreneurs, it is sometimes difficult to choose whether to invest in your business or in your future. Devise a financial plan that accounts for paying yourself enough for your family’s living expenses today as well as your retirement. Regardless if your business succeeds or fails, your savings should be held in reserve for retirement and emergencies. Whether you are on your own or working for an employer not offering a 401(k), you may be eligible to save with additional types of retirement options.

Traditional IRA. An Individual Retirement Account (IRA) lets you contribute pre-tax dollars from your paycheck. You can invest the money in stocks, mutual funds, bonds, annuities or other vehicles and then withdraw the money without penalty starting at age 59½. Amounts withdrawn before age 59½ may be subject to a 10% federal income tax penalty, applicable taxes and plan restrictions. Withdrawals are taxed at ordinary income tax rates. You must start withdrawing the money by the time you reach age 70½.11 To learn more: www.nerdwallet.com/blog/investing/ learn-about-ira-accounts/ 6

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Roth IRA. Contributions to a Roth IRA are made after you pay taxes. You can withdraw contributions, but you cannot touch the investment earnings without paying taxes until you reach age 59½ and the account has been open at least five years. There are income limits for contributing, but a Roth IRA is more flexible if you need to withdraw some of the money early. And there is no age limit for when you must start withdrawing money.12 To learn more: http://www.nerdwallet.com/blog/investing/what-is-a-roth-ira/

myRA (my Retirement Account). myRA – which costs nothing to open and has no fees – is designed for people who need it most – workers or others who don’t have access to a retirement savings plan. You can pick any dollar amount from two dollars or more to be automatically deducted from each paycheck or other account.13 myRA is a Roth IRA that invests in United States Treasury retirement savings bonds. The account maximum balance is $15,000 (or deposit for 30 years) after which you can roll over the balance into a private-sector Roth IRA. To learn more: http://www.myra.gov

Social Security. Social Security may cover some of your needs in retirement, but those benefits are not guaranteed – and may not begin as soon as you might like. One of the biggest decisions you’ll make about Social Security is when to start taking your benefits. You can begin taking benefits early and receive a reduced amount, wait until you’re eligible to receive your full benefits or postpone your first payment to qualify for a larger amount. For example, individuals born in 1960 or later cannot collect “full retirement benefits” unless they wait until age 67.14 For an estimate of your benefits and how to collect them, call the Social Security Administration at 1-800-772-1213. To learn more: http://www.ssa.gov Retirement plans are not set up as “one size fits all.” Your counselor or Financial Professional can help guide you to the right strategy based on your personal or business financial goals and savings mindset.

Sources: 3. Prudential: Hispanic American Financial Experience. 2014. http://bit.ly/2nvoUuU 9. P rudential: Where’s Your Retirement Income Coming From? http://bit.ly/2n1qL7E 10. W  hat is a 401(k)? Wall Street Journal Guides. http://guides.wsj.com/personal-finance/ retirement/what-is-a-401k/ 11. R etirement 101: The Basics of an IRA. Nerdwallet. http://www.nerdwallet.com/blog/ investing/learn-about-ira-accounts/ 12. H ere’s What You Need to Know about Roth IRAs. Nerdwallet. http://www.nerdwallet.com/ blog/investing/what-is-a-roth-ira/ 13. U.S. Department of the Treasury my Retirement Account. http://www.myra.gov 14. U.S. Social Security Administration. http://www.ssa.gov

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Term Life Insurance • A term life insurance policy provides a guaranteed benefit for the period, or term, you choose – usually 10, 15, 20, or 30 years. • During that time your premiums, the amount you pay for coverage, can remain the same. No surprises. • Term coverage is relatively inexpensive when compared with permanent policies.

Permanent Life Insurance • Lasts for your entire life as long as premiums are paid. Most permanent policies offer the ability to build cash value. • Each time you make a premium payment toward your permanent policy, a portion of that payment covers the cost of your insurance and policy fees and the remainder is used to fund your cash value account. • There are several ways permanent life insurance can help you while you’re still living. To learn more check out The Best-Kept Secret of Life Insurance. http://bit.ly/2nMcoHj

Life Insurance: For Those You Love, Except When It’s for You! “It forces me to think about the quality of life I want my son to have, after my husband and I are no longer here. For years I’ve put it off. As scary as it is, it’s something I need to plan for.” There are many reasons why Hispanics shy away from buying life insurance. Which one describes you? Overestimating the cost, other financial priorities, don’t understand how much or which type to buy or don’t like to think about death?15 Most of us know that having life insurance means your loved ones receive a death benefit when you pass on. But, did you know that some policies allow you to access cash for your own use while you are still living? There are several options available. They are usually referred to as “living benefits”. The money in the cash value account can be a flexible resource to help you reach financial goals. But, you should know that using a policy’s cash value could reduce the death benefit, shorten or cancel a guarantee, or cause the policy to lapse, and may have tax consequences.16

Ways to Use the Power of Life Insurance…Today! 1. Provide money to help the people you love. You work hard.

5. Pay less in taxes. Taxes are a fact of life. Many of us don’t want to pay any more than we absolutely have to. Life insurance offers tax benefits. While you’re living, you can take income tax-free loans from the cash value of your permanent policy. You can access your cash value through loans and withdrawals. In general, loans are charged interest; they are usually not taxable. Withdrawals are taxable only when you take more money out of the policy than you’ve paid in premiums. Loans and withdrawals may reduce or eliminate the death benefit payable to your beneficiaries.17 Loans that remain unpaid when the policy lapses or is surrendered while the insured is alive will be taxed immediately to the extent of gain in the policy. For policies that are Modified Endowment Contracts (MECs), distributions (including loans) are taxable to the extent of income in the policy; an additional 10% federal income-tax penalty may apply. Consult your tax advisor for advice about your own situation.

6. Protect your business. As an entrepreneur, you have a lot to protect – your business, employees and family. Life insurance can provide the funds your heirs may need to ensure the business continues to run smoothly. It can also ease the exchange of business ownership if you or a partner retire, have a disability or die – without depleting the business’s capital.17 If you want to explore your options now…check out this summary: http://bit.ly/2n1vtSB Sources: 15. Life and Hispanic Families. Facts from LIMRA. 2012 16. Prudential: Life Insurance 101. http://bit.ly/2nkijTB 17. Prudential: Is permanent coverage right for you? http://bit.ly/2oyIeEU

But what if something happens to you? Think about how your loved ones will pay for things like credit card debt, mortgage, child care or a college education. They will receive a tax-free death benefit when you die - whenever that may be (per IRC §101(a).16

2. Leave a legacy. A life insurance policy payout may provide a meaningful amount of money to the people you love for generations to come. And typically, your beneficiaries won’t have to pay any taxes on the money they receive.17

3. Create another source of retirement income. You may be able to access cash from your life insurance policy in the form of withdrawals or loans that are usually not taxable and to use as you see fit. Just be aware that using a policy’s cash value could reduce the death benefit, shorten or cancel a guarantee, or cause the policy to lapse, and may have tax consequences.17

4. Have access to money in case you get sick. People are living longer than ever before. You may be able to use life insurance* for funding to take care of yourself if you get a chronic or terminal illness. Many policies offer an optional, added provision called a rider* that lets you accelerate the death benefit of the policy while you are still living. The money can be used for any reason.17

*Accelerating the death benefit will reduce the death benefit dollar-for-dollar and may result in beneficiaries receiving less or zero proceeds at death, if the death benefit is fully exhausted due to benefits paid out under the rider while the insured is alive. 8

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Crucial Financial Tips for Entrepreneurs

6. Pay yourself a set salary every month. This amount

“I learned to reinvest the money earned in my business for a better return and not to rely on the business as my only retirement plan.” Starting and growing a business takes so much effort that it can be easy to drop the ball on personal financial management, which can become much more complicated once it is tied to the overall health of your company. As a successful entrepreneur, you need financial stability in both your business and your personal life. Here are 10 solutions to keep both on track.

1. Calculate personal and business expenses before you start. Calculate personal expenses on a month-tomonth basis and estimate how much it will take to run your business each month. How else will you know the amount of cash you will need to for your start-up?

2. Both new and established entrepreneurs need financial strategy advice. Have the correct financial disciplines in place and understand the value of the money you are investing in the business. In fact, all business owners should have a trio of advisors on speed dial: a lawyer, an accountant and a Financial Professional.18

3. Establish emergency savings beyond the traditionally recommended amount. Try to have 12 to 24 months of emergency savings available, whether you are a start-up or have been in business for years. That way, you will be prepared for anything.18

4. Keep personal and business finances separate. Keeping your personal expenses and business separate can help you stay organized for accounting and tax purposes and protect you from being liable for some financial elements.19

5. Reduce spending. If you are involved in developing a new a business, it isn’t the time to buy a new house or car. Make sure to get a handle on your personal debt. Pay off car loans, credit cards and other expenses.

should go into your personal account. If you are just starting up a new venture and taking a fixed paycheck isn’t feasible, accumulate “notes” due for the salary that you are unable to take in the early years.19

7. Redirect a portion of your profits back into the business. The key is to reinvest based on a strategy, rather than a set percentage while having enough to cover all your other expenses.18

8. Stay marketable. Have a realistic backup plan in case your business is not the success you dreamed it would be. Keep your resume updated and your personal skills set sharp. If you are employable, you may stress less about your business’s future.18

9. Plan for retirement. Establish a self-employed retirement plan like an IRA or a solo 401(k). One of the biggest mistakes entrepreneurs make is not planning adequately – or at all – for their retirement.20

10. Know your risk and manage it. Unforeseen circumstances and their negative consequences are the very essence of risk. Entrepreneurs need to think ahead about what could go wrong, and how to alleviate those risks cost-effectively. Some types of permanent life insurance can provide cash flow to your company to help pay off debt, offset lost sales or cover the expenses of recruiting, hiring and training new employees.20

Working with a Financial Professional ROCKS! “Just because you may feel you don't have a lot [of money] doesn't mean you don't have anything to financially plan for. Planning is important for everyone's future.” Financial Professionals help eliminate roadblocks, including the ones clients like you may put in front of themselves. For Hispanics, those roadblocks include fear of debt, trouble with long-term planning, multigenerational expenses for children and elders and saving less for unexpected emergencies.3 A well-trained Financial Professional will take a holistic view of your financial picture. That might include your budget, investments, debt management, cash flow, insurance, college planning, business strategies and more. If you think the list is long and involved, the question is how have you been handling these financial decisions on your own? Many of us don’t have the knowledge or time to create a lifelong financial strategy on our own. A Financial Professional can help you discover your most important lifetime goals, which you may not have thought through yourself. S/he can help you organize your finances, project the results of your savings and investments and help you make valuable, costsaving decisions that affect your future.

It’s a matter of trust Who you decide to work with isn’t a matter of ethnicity, but one of trust. Of those Hispanics surveyed in the Prudential Hispanic American Financial Experience Study, most were interested in sound financial advice from Financial Professionals who relate to their specific situations. Some 86 percent indicated that ethnicity or race did not matter.3 Hispanics’ strongest preference is working with an individual who is involved in their local community. Source: 3. Prudential: Hispanic American Financial Experience Study, 2014. http://bit.ly/2nvoUuU

Sources: 18. P ersonal Finance Moves for Entrepreneurs. Black Enterprise. http://www. blackenterprise.com/money/small-business-week-personal-finance-moves-forentrepreneurs/

20. P rudential. Life insurance can provide the protection you need. http://bit.ly/2nLIe7r 21. G eoscape. Study: Hispanic Businesses Grow at Twice National Average and Contribute $668 Billion Annually to the U.S. Economy. http://geoscape.com/wp-content/ uploads/2016/10/2016-Hispanics-in-Business-Study-Release_-Final.pdf

Hispanic Businesses Grew at Twice National Average

The number grew by 27.5 percent since 2012 vs. the 12.6 percent growth rate for all U.S. businesses over that time period.21 Are you ready to be an entrepreneur? Take a quiz to find out: http://bit.ly/29wSJ9r 10

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Let’s set the record straight and dispel a few misconceptions that run deep in Hispanic communities about working with Financial Professionals. Financial institutions do not understand Hispanics’ needs because of their diverse population and different levels of acculturation. In today’s environment, Financial Professionals who represent companies like Prudential make it their business to understand Hispanic attitudes toward retirement, family and the future. Meanwhile, the language of financial services is challenging for both English and Spanish speakers. A Financial Professional can be an excellent guide through the maze of information and opportunities available to help you on your journey to financial freedom.3 You must have a certain amount of money or assets before you can speak to a Financial Professional. Prudential and its Financial Professionals are committed to the empowerment and financial education of the Hispanic community. That is why our Financial Professionals are available at events such as Hispanicize, to speak with anyone who is interested in learning how to create a better financial future for themselves.

19. E ntrepreneurs – Why they need financial planning too. https://getwela. com/2016/04/04/entrepreneurs-why-they-need-financial-planning-too/

A recent study by Geoscape revealed the rapid growth of Hispanic entrepreneurship and the impact of Hispanic businesses on the economy. The study projected 4.23 million Hispanic-owned businesses in the U.S. by the end of 2016.

Dispelling Misconceptions

Insurance issued by The Prudential Insurance Company of America and its affiliates Newark, NJ. Each is a Prudential Financial company located in Newark, NJ (main office) and each is solely responsible for its own financial condition and contractual obligations. Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances. This material is for informational or educational purposes only. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In providing these materials Prudential and its affiliates are not acting as your fiduciary as defined by any applicable laws and regulations. © 2017 Prudential, the Prudential logo, the Rock Symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. 0303832-00002-00 prudential.com

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Financial Tips and Clicks A Financial Strategy for Tomorrow Can Help You Today

The Unexpected Will Happen... Only Time Will Tell When

Roll the video tape! Then try your hand at “Slicing a Budget” http://bit.ly/2nkiMVT

No matter what your age – 25, 45 or 65 – life can throw you a curve. Family responsibilities can grow. New life pursuits may interest you. You may live to 100. Only time will tell. http://bit.ly/1ZJtTSg

Hispanic Americans’ Attitudes about Retirement

Calculate what it would cost to replace everything you do for your family (for free)

http://bit.ly/24UdxYC

http://bit.ly/1T8JE0X

Discussing the future with your parents (Aww. Do I have to?) http://bit.ly/2bO1d8I

Stuck between a rock and a hard place as part of the ‘Sandwich Generation?’ http://bit.ly/2bAj9TQ

An entrepreneur’s guide to financing your dream business http://bit.ly/29wwJcT

Take a Walk Around The Block of Life Insurance

FINANCIAL PROFESSIONALS. WHO NEEDS ‘EM?

http://bit.ly/2neUpqY

Watch this video for other nonsensical comments. http://bit.ly/29hLQ5Q

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