time to save It’s
time to save It’s never too late, experts say By Joyce Wiswell The days of living large are over. That’s the message from Faisal Arabo, a financial services professional with New York Life, who does not always like what he sees these days. “Chaldeans love to live the old style of life – big houses, nice cars, vacations anywhere, lavish living and a new dress per party,” he said. “I tell them, no more of this. Life has changed and has changed for years to come. It’s no longer what you want, it’s what you need.” Arabo speaks more bluntly than most on the topic. “There are quite a few Chaldeans who are savers but in general they haven’t been taught to save,” said CPA Jason Alkamano of Alkamano PC. “I am beginning to see people save more, and as it is in the general population, I have really seen a lot of people cutting back in spending in the last two years. It’s dramatic.” Michigan’s unemployment rate remains sky high (10.9 percent in July) and the stock market continues to fluctuate wildly in the wake of the debt-ceiling crisis in Washington, DC. It’s essential that each person get a grip on their finances and start planning ahead, money advisors say. “It’s not too late to start saving. Anyone can open an IRA with as little as 0,” pointed out Anthony Mona, vice president of investments at UBS Financial Services. “Everyone should be able to save at least 10 percent of what they make,” said Alkamano. “Put it into a savings account or fund a 401(k). Don’t do investments that are too risky; you have to have the stomach for the stock market, and most people in general don’t do enough homework before they invest. Stick with professionals.” Arabo said today’s economic uncertainties “should be a wake-up for many Chaldeans.” “We must realize reality. America for years to come will never be as it was in the time of [President] Clinton, when banks were lending money left and right. You asked for 0,000 and the bank loved to give you 5,000,” he said. “That is why many – not all – Chaldeans are under water and filing for bankruptcy, or hardly above water as in the prayer ‘give us our daily bread.’” Mona said families must sit down and figure out exactly where their money is going. “If you go through all your spending, you will find a way to save at least a little,” he said. “I can guarantee that 90 percent of the Chaldean community has not seen what a monthly budget is.” Arabo said it’s time for people to face reality. “No more can Chaldeans go to a big party with the most expensive dress showing off their gold and jewelry,” he said. “They have to have a real life, and they have to secure their family first by buying some life insurance. Otherwise, when he goes to heaven, his family could be in hell.” when worst comes to worst Is bankruptcy the answer? By Amanda Friedt John Kallabat has seen more Chaldeans filing bankruptcy in the past three years than he has seen in the 18 years he has practiced law. “Much of the reason is because a lot of Chaldeans are small business owners or work for big companies; we are very effected by the economy,” said Kallabat, who is in private practice in Bingham Farms. As the economy cycles up and down, businesses are on that same roller-coaster ride and make adjustments accordingly. Chaldean businesses are like many in that when they are heading downward, they may dip so deep that they lose their businesses or at the very least are forced to lay off employees who are also Chaldean. “Many of us work blue collar jobs, part of Big Three or supplier companies, and as these companies have downsized we have felt the crunch,” said Kallabat. It may seem like the most appealing option — wiping the slate clean when you’re deep in dept — but bankruptcy is not always the best option. Bankruptcy is a permanent mark on your credit report and is public record. “Bankruptcy should be a last resort,” said Marvin Dabish, president of Got Credit. “You should consider your other options before jumping into bankruptcy.” Some people are filing bankruptcy when they shouldn’t be, or before they consider alternatives. “Some people file because they just want out, and maybe they didn’t need to,” said Steven Richter, an attorney at Gayer & Richter, PLLC in Oak Park. “A lot of times people want it over with.” There are different options when it comes to resolving your debt. There is credit restoration and debt settlement. The initial credit restoration can include removing any incorrect information or accounts off of your credit report; the second part is to go through a debt settlement program. A debt settlement program settles out your existing debt for a percentage and allows you to pay the dept monthly. This allows payment of debt without appearing as a negative on your credit report. However, debt settlement and restoration do not work for everyone. “Every situation is different and you need to make sure filing bankruptcy is the best option for you,” said Dabish. Filing bankruptcy can be a fresh start and 24 CHALDEAN NEWS SEPTEMBER 2011
from the editor when to think about filing is important. “Most people wait too long before they consider filing; they wait until judgments and garnishments are being made and it becomes unmanageable,” said Richter. As the economy continues to falter in the U.S., bankruptcy is becoming more common. Bankruptcy cases filed in federal courts for the 12-month period ending December 31, 2010, totaled 1,593,081, up 8.1 percent over 2009, according to the Administrative Office of the U.S. Courts. Filing bankruptcy can be a cumbersome task, especially if you have multiple accounts and assets. “I’ve been doing this for about 18 years; it’s more complicated than people know and once a person feels overwhelmed with debt it’s time to consider the possibility of bankruptcy,” said Kallabat. Many attorneys offer free consultations and will answer questions over the phone or in person. Attorneys consider multiple variables when deciding if bankruptcy would be an option. “We look at the totality of the circumstance, we consider questions like, how much do they owe, how much money do they make, how delinquent are they, how much do they own in assets,” said Kallabat. After someone has filed bankruptcy, their credit can actually improve. “Since you can only file once every eight years, people might give you credit because you’re less of a risk,” said Richter. Getting loans for cars and even mortgages can be easier after you’ve filed bankruptcy. “You usually can obtain a mortgage after two years from filing bankruptcy,” said Kallabat. Reasons for filing bankruptcy can vary. “A majority of people file bankruptcy due to divorce, poor health and loss of employment,” said Richter. Filing bankruptcy can be scary and the idea of going to bankruptcy court can be terrifying. Many people filing bankruptcy are distraught. But Richter said that bankruptcy court is often not as bad as you think. “You either qualify or you don’t. They don’t make it personal,” he said. “If you don’t have the income and you have the debt and you qualify within the law, then you are able to file bankruptcy.” Money, money, money It’s a necessity. It’s a luxury. It’s some people’s obsession. It’s others’ distraction. Our Catholic faith teaches us that it’s the root of all evil. It can be controlling, yet liberating. It’s functional, yet causes dysfunction in the lives of many. Some of us have a lot of it and others die from having little to none of it. It’s money! It’s not money that is sinful; it’s the love of it. I’m no different than majority of the human race; I strive to live a comfortable life with financial freedom. I have not taken a vow of poverty. There is a fine line, however, between working hard to make money and an obsession with money. There is a difference between earning money and lying, cheating and stealing to have it. I circulate around from East to West, from suburbs to city with the work I do both at the Chaldean News and in my own communications business. I am at Shenandoah, at church, at networking events, fundraisers, weddings, social gatherings and occasionally on the golf course. I see the Gucci bags, the Escalades, diamond rings, Dolce & Gabanna shoes and St. John suits. They are draped on Hollywood starlets, fashion models and Chaldeans around town. Now, there is nothing wrong with fashion and elegance. I quite admire a well-groomed individual with a sense of style. It’s something I don’t naturally possess. Growing up, I spent more time at the library than the mall resulting in the lack of a trendy touch. Being trendy and spending money is not the problem. It’s the competition to keep up with the wealthiest of the wealthy that is straining families and friends throughout the community. The sizing up and dressing down of the Haves and Have Nots are the complaints at the chai table. The judgments passed and the personas presented by those who are rich or those who want praise for appearing to be rich. There are the wealthy with “real” money who don’t have to flaunt it. They have a realistic view about life. They are comfortable in their own skin. Often, they are understated and humble. However, there are those who are defined by it – their money. Over the years, I have heard many comments made about money — who has it and who doesn’t. And I have heard much of the gossip in the community about the Haves, who think they’re superior because they have it, and the Have Nots, who try so hard to make people believe they have it. One time at the club, I was hanging out with a group Vanessa denha-garmo editor in chief co-publisher Being trendy and spending money is not the problem. It’s the competition to keep up with the wealthiest of the wealthy that is straining families and friends throughout the community. of women with designer brands across their butts and on the handbags. No doubt, they looked great. I have no issue with spending money on accessories and clothes, if you have it. The issue I had was the comments made about every other woman who walked in the club — from the price of her shoes to the style of her jeans, they passed judgment — woman after woman. They sized her up and dressed her down. A few years ago, I was chatting with another woman who made a point in a 30-minute conversation to tell me her net worth, the size of her diamond ring, the amount she spent on her newest purse and the square-footage of her home. She wanted to make sure I knew (or believed) she had money, as if I would have to respect her or more so, be intimidated by her because of it. Why do we put pressure on each other and ourselves? Why this pressure to outdo the last bride at her wedding? Why this pressure to live in a home and drive a car you clearly cannot afford? Why this pressure for the Haves to make the Have Nots feel inferior and the Have Nots to pretend they have it? Why do we continue to size each other up and dress each other down? Money may make your life easier but it won’t bring you happiness. If you have this need to flaunt it and be defined by it, perhaps you need to self evaluate. You feel worthy because you have money or appear to have it. If tomorrow you don’t have it or can’t pretend that you do, are you now worthless? I am not passing judgment. You work hard, you deserve success and the prosperity that comes with it. More power to you, I say. However, we must learn to live within our means. In fact, a recent news report stated that most millionaires became millionaires because they live below their means. We must not make money a focal point of our lives whether we have it or not. I continue to work hard to one day live in my dream house, take my dream vacations, drive my dream car and shop as if I have no care in the world. But I also know that it’s love, love, love that garners respect. Love for oneself as a child of God. Love for each other and Love for the God who gave us life. It’s about you, our relationships and me. It’s about family and friends. It’s about the mark we make on this world before we leave it. It’s the lives we live and the souls we touch. It’s the laughs we share and the tears we shed. It’s about so many things — this life we are given — it’s truly priceless. So, let’s not make it about money, money, money! SEPTEMBER 2011 CHALDEAN NEWS 25
