Hispanic Business Council
The Hispanic Business Council May meeting began with Mrs. Ana Pereda, Director of the Lamar State College-Port Arthur SBDC. Mrs. Pereda briefly went over the Restaurant Revitalization Fund, which provides grants to assist restaurants and other eligible foodservice businesses impacted by the COVID-19 pandemic.
Afterwards, our May speaker Jesse Pompa, a Financial Advisor with EKC Advisors, explained the four phases of money which are, the accumulation, conservation, distribution, and legacy. In the first phase individuals begin to accumulate and build their income. The second phase is where they want to protect their money and calculate their expenses. In the third phase, they begin paying debts that they have, or begin investing in their retirement. The last phase of the money is the legacy when individuals retire or pass away. Mr. Pompa then stated the importance of writing a will, so one can choose where their money is going instead of having the state choose for them. He also stated that it is very important for individuals to update their will every five years or after major changes in their life.
Moving on to work insurance, anything can happen at the job, and it is better to be safe than sorry. Therefore, Mr. Pompa explained the importance of having disability insurance to protect one financially if they were to have an injury that would prevent them from working. Short-term disability insurance is good to have for small injuries since it replaces an individual’s income for a short period of time. Long-term disability financially protects individuals if they have a serious injury or illness, it can even compensate them until they retire if they develop a permanent disability.
Mr. Pompa also expressed how important it is to have an emergency fund that supports individuals for at least six months to a year. Many families have gone through natural disasters recently like hurricanes, windstorms, or floods. Unfortunately, it can be difficult to work under those circumstances, therefore having an emergency fund gives individuals relief for a few months until everything is back to normal.