News Article #5 - Profile on Financial Advisor of Choice

JOUR 2410-504                  Dec. 3               News 6

     Steve Michlik sat behind his desk in his office and crossed his arms. Pictures of his wife and three children are scattered across the office. A cross hangs on the wall.

     Michlik works as a field agent for the Knights of Columbus, a Catholic organization founded by a young priest, Michael J. McGivney, according to the Knights of Columbus website.

     “The organization was founded by a priest back in 1882,” Michlik said, “to benefit and help families in the case that there was a catastrophe or the bread winner had died.”

     According to the organization’s website, the Knights vow to be defenders of their family, friends, and country.

     Michlik sells life insurance for various members of the Knights. He said he is an active member and attends meetings regularly.

     Michlik said he works with the families of the Knights not only to sell life insurance, but to give advice about financial planning.

     “People need someone that’s like a coach or a trainer,” Michlik said, “and that’s what I do.”

     Michlik said he was born in Dallas, where he continues to live today. He was raised Catholic, which influenced his decision to join the Knights.

     “My father was a member. So is my uncle and my son,” Michlik said. “It’s like a family tradition to be a member of the Knights of Columbus.”

     Michlik said he majored in business at Southern Methodist University. He was an entrepreneur and owned four restaurants in Dallas.

     Michlik said his father and grandfather both owned small businesses, which is why he became an entrepreneur as well.

     “It was kind of a family tradition,” Michlik said. “Nowadays though, small businesses just don’t thrive the way they did.”

     Michlik said he wanted to start a family, and the restaurant business was very time consuming. He sold his four restaurants to spend more time with his family.

Michlik and his wife Karen have three children together: Jessica, Jonathon and Paige.

     “Thirty-six years ago I met her,” Michlik said. “We’ve been married for 29 years.”

     Michlik said she worked at Target as a cashier when he first met her. They talked casually until Michlik asked her to lunch.

Art Amoyo, a member of the Knights, has known Michlik for 3 years.

     “He is a very family oriented guy,” Amoyo said.

     Dan James, who has known Michlik for 6 years, said Michlik includes his family in many activities he does around the church and the Knights community.

     Michlik said he joined the Knights when he was in his twenties. He bought life insurance from an agent at the Knights.

     “When I got out of the restaurant business, I had remembered working with the agent,” Michlik said, “and I had remembered him saying that he enjoyed doing what he did.”

     Michlik said he was looking for a career change and he thought selling life insurance with the Knights would be something he enjoyed. Which led him to his current profession today.

     As a field agent, Michlik said he works specifically with the Knights families. He sells life insurance and gives financial planning advice.

“The biggest thing we do is sell life insurance,” Michlik said, “which provides for families when the bread winner is lost.”

     Michlik said he would sit down with the client and discuss their goals and plans for saving. He sells products that will help secure a stable retirement in the event that the savings plan does not work out.

James said Michlik talks to members about buying life insurance at as young of an age as possible.

“The best thing you can do is buy is young,” James said, “and that’s what he’s always telling people to do.”

     James said he is very helpful with the Knights families.

     “He has helped the Knights have the proper financial planning tools that they need, not just insurance,” James said.   

     “He explains to members how important it is to get insurance when it’s early and when you’re healthy.”

     “All I can say is I wish I had bought more when I was younger,” Michlik said, chuckling, “because that’s when its most affordable-when you’re younger.”

     Amoyo said Michlik opens the eyes of members to the importance of having insurance.

     “He tells us how in different scenarios, if something were to happen, how strong the company is and how it stands behind its products,” Amoyo said. “He gives us real life situations of some of the Knights that have been impacted by the products that he has sold to them and how it has taken care of their families.”

     Michlik said he works with 958 families exclusively, all who are members of the organization. He works with four parishes within the Dallas area: St. Catherine’s in Carrollton, Prince of Peace in Plano, St. Mark’s in Plano, and St. Thomas Aquinas in Dallas.

     “It’s not a very easy job,” Michlik said, “but it’s very rewarding financially—if you work hard at it.”

News Article #3 - Article on Student Debt and Loans

JOUR 2410-504                 Nov. 18                  News 4

     Texas Tech personal finance professor David Wilder said students should consider getting credit cards to build credit, and urges to be wary of spending habits.

     Wilder said building credit is the most important thing he teaches about credit card management. Students need to build credit in order to take out mortgage and buy a house.

     Students should at least have one credit card so they can start building credit, Wilder said.

     Justin Nusser, a sophomore electronic media and communications major from Spring, Texas, said he recently got his first credit card.

     “I had no idea having a credit card would have that much impact on your future,” Nusser said as he sipped his coffee.

 “I’m glad I decided to get one.”

     Wilder said students should not have to pay to get a credit card. The most important task for a student with their first credit card is to pay off the bill every month.

     Wilder said students should watch their expenses before they run into trouble with debt.

     “It’s a lot easier to go out to a bar and throw the bartender or waiter a piece of plastic,” Wilder said.

     Tech students have the convenience of Red to Black, a program that assists Tech students, faculty, and staff. Red to Black provides financial coaching through debt and other important financial decisions.

     According to Project on Student Debts website, the average debt of Tech graduates in 2011 was $10,138.

     Becca Wilson, a freshman pre-nursing major from Stephenville, Texas, said she is paying for school on her own and is nervous about the money she owes after she graduates.

     “Nursing school is very expensive,” Wilson said, “and I know I’m going to owe a lot of money when I graduate.”

     When students do run into debt, Wilder said the first thing to do is to speak to somebody. He advices to also create a budget, cut out daily expenditures, and get into contact with the credit card companies for assistance in paying off the debt.

     According to the article “Student Debt” by The Canadian Press, students need to develop good budgeting skills and consider taking on a part time job during school to assist in debt payback.

     Students tend to borrow too much money for their loans, Wilder said, which leads to students spending their loan money on unnecessary things such as laptops, clothes, and food.

     “99 percent of my students, while doing a budget, underestimate their entertainment expenses,” Wilder said as he paced around the room.

     Wilder said it is not possible to predict how much you will spend at the beginning of the month, but it is wise to limit yourself with time.

     “That way when you create that budget and you’ve limited the money you’re going to spend on entertainment and such, you can use that money towards paying off the student loan or credit cards,” Wilder said.

     Despite the difficulty for students to deal with loans and debt, Wilder said a college education is worth the risk.

      “It’s really hard to put a price on a college education,” Wilder said. “In 10 or 15 years, you’re going to look back and say yes, it was worth it.”

    

     

News Article #4 - Financial Planning for Students

JOUR 2410-504                  Dec. 4                 News 5

     Personal financial planner Luke Einerson informed students to keep a close eye on their loans, and to start planning for retirement as soon as graduation.

     Einerson is a part of the organization Red to Black, a free financial coaching service to Texas Tech students, faculty, and staff. According to the Red to Black website, they assist with money management, debt, and budgeting.

     “It’s interesting how many people come into Red and Black and they don’t even know how many loans they have out,” Einerson said, ”or who they’re with.”

     Carrington Marzett, a senior public relations major from Midland, Texas, said she does not have knowledge about her loans because her parents take care of it.

     “I transferred from Baylor after three years,” Marzett said, “and Baylor is twice as much as Tech a year. So when I finally graduate I will have close to $100,000 in student debt.”

     Going with the most inexpensive loan, Einerson said, is the best way to avoid tremendous debt out of college. He said students should plan for how much debt they will have after college.

     “I hope to have a job after I graduate where I am making enough money to make at least $1,000 or more payments each month,” Marzett said.

     Taylor Parker, a junior community, family, and addictive services major from Snyder, Texas, said her bank, Wells Fargo, has a plan set up for her to pay back her loans.

     “I can start paying back as early as I graduate from Tech,” Parker said, “so I will make monthly payments to them at that time.”

     Students are advised to start building credit, Einerson said, but it depends on the person and their understanding of credit cards for whether or not they need more than one credit card. He said students should have more than one credit card to build a good credit score.

     “I think a student should only have one credit card,” Parker said. “I only have one and I have a rough time keeping up with making payments and controlling my spending on it. I couldn't imagine having to make four different card payments each month.”

     Marzett said she is paying off her credit card and planning to get rid of it. She prefers to use debit cards.

     Einerson said planning for retirement and disasters are very important. Students should start immediately planning straight out of college.

     According to the article, “Financial Planning for Your Family’s Well-being” on Financial Planning Association’s website, beginning to plan for retirement as early as graduation is beneficial for when people reach the age where they have to care for their family and aging parents simultaneously.

     Steve Michlik, a field agent and financial adviser for a Knights of Columbus chapter in Dallas, said it is important for people to have an emergency fund.

     “You can’t go back and create an emergency fund; you need it ahead of time,” Michlik said.

Einerson said students need to know what they’re spending, and the way to do that is to track it. Then students can set financial goals and budget.

     Budgeting will not only tell students how much they are spending, Einerson said, but it will also assist students in making changes to their spending habits.

     Einerson said everyone should start putting money aside in savings now.

     “If you’re single, I would recommend about three-ish months of income set aside, Einerson said. “If you’re married, and you both have jobs, then a little bit less than six months would be easier.”

     Michlik said people do not know how to say ‘no’ to buying.

     “People just want things, the word ‘no’ is a key component in holding onto your money to plan for the future,” Michlik said.         “Oftentimes you have to say ‘no’ to certain purchases.”

Einerson said people should put away around 15% of their salary into savings.

For those who are married, Einerson said to have a discussion about each other’s budgets and possible debt from student loans.

When looking into college, Einerson said, students need to realize with rising tuition costs some degrees may be more valuable than others.

“Look at your degree, find out what the placement is like,” Einerson said. “What’s the average salary when they get out? What’s the average placement rates when you get out?”

Einerson said as a financial planner, he learns from the millionaires, and the people who are in financial crisis.

“I love learning from people,” Einerson said. “Inversely, you just learn a lot from those who are in a financial mess.”