dave says2 300KENTUCKY (8/17/14) — This week Dave discusses asking for a raise and paying the insurance penalty.

Dear Dave,

What’s your advice on asking for a raise at work when you have more responsibility than a co-worker but the same title on paper? After being with my company four years, I feel like I should make more money and I have the right to complain about this.

Vanessa

Dear Vanessa,

Sorry, no. You don’t have a right to complain. You agreed on your pay, and you are doing your job the way your character and integrity tell you to do the job. If someone else is a slacker in the same position, that doesn’t mean a whole lot in terms of your personal compensation.

I’ve got several people at my company who hold similar positions and make similar money. Some of them have been here for years, while others are relatively new. I don’t pay people for how long they’ve been in the building, and I don’t want anyone on my team who doesn’t give 100 percent. Now, that may be a different issue than pay, but at the same time I don’t want someone who gives 50 percent and I pay them 50 percent. I want everyone at 100 percent, but that kind of thing isn’t your problem. It’s the company’s problem, because she works for them and not you.

If you honestly feel like you deserve a raise because of your effort and performance, that’s fine. Sit down with your leader and make a logical and reasonable argument for why you deserve more money. But don’t bring up your co-worker and what he or she makes in the discussion. That’s just not relevant. What is relevant is your worth and the value you bring to the organization.

But a comparative analysis with someone else on staff just isn’t a good idea. I’d stay away from that, Vanessa.

—Dave

Dear Dave,

My wife and I live in New York, and we’ve had whole life insurance for several years. There’s a seven percent penalty if we cash out the policies now. If we wait a few years, we won’t have to pay into the premiums anymore. Should we cash out the policies anyway?

Brian

Dear Brian,

The reason you won’t have to pay into the premiums anymore is because you built up enough savings, and they are not paying you enough on the savings to amount to anything. The amount they should have been paying you versus the way they were ripping you off will buy the life insurance.

It’s not like you can pay for it because you still have probability of death. As long as there’s a probability of death there’s a cost to life insurance. The only question is whether you’re paying out of your savings account or your checking account. In this case, you’re paying out of savings.

The seven percent figure is just your surrender charge, so I’d get out of that policy soon. Here’s the problem, Brian. If you die today, do you know what they’ll pay? Face value. They won’t pay face value plus the savings you paid for. In other words, you’ll lose your savings.

I’d get term life insurance in place by the end of the week. Compare prices on term, because you’ll be surprised at the difference some companies charge for term insurance. Make sure you get good 15- to 20-year level terms policies valued at 10 to 12 times your annual incomes.

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

LBL Invites the Public to Attend a Public Listening Session

KENTUCKY (6/1/15) — Land Between The Lakes National Recreation Area will hold a public listening session from 6 to 8:30… Read More

Dawson Springs Police Reports Released

DAWSON SPRINGS, Ky. (6/1/15) — The Dawson Springs Police Department released the following reports Monday, June 1.… Read More
1 DOW 18,011.94
-28.43 (-0.16%)    
2 S&P 2,109.60
-2.13 (-0.10%)    
3 NASDAQ 5,076.52
-6.41 (-0.13%)    

Most Read This Week

May 27, 2015 7432

VIDEO: Sparks Fly Over Hanson Rezoning Issue

by Tammy Holloway, SurfKY News
May 30, 2015 7210

Study of Virus Attack on Cancer Sees Success

by Julie Heflin
May 28, 2015 6566

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 27, 2015 4296

Midnight Ride on Rabbit Ridge Ends in Jail

by SurfKY News
May 27, 2015 3895

Crime Stoppers Top Most Wanted - May 27, 2015

by Crime Stoppers

Most Read This Month

May 15, 2015 11345

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 23, 2015 9471

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News

Stories Trending Now

June 01, 2015 1677

Authorities Discover Meth Lab While Assisting…

by SurfKY News
May 31, 2015 1634

Hopkins District Court Fines Handed Down

by SurfKY News
June 01, 2015 1411

Madisonville Police Arrest Reports Released -…

by SurfKY News
June 02, 2015 1387

Woman Charged with Falsely Reporting Kidnapping

by SurfKY News
June 02, 2015 1361

Two Muhlenberg Women Injured in Collision

by SurfKY News
June 02, 2015 1271

Traffic Signal at Intersection in Downtown…

by Keith Todd
June 02, 2015 1146

Juveniles Accused of Falsely Reporting Masked…

by Rita Dukes Smith, SurfKY News Director
June 01, 2015 1123

Human Relations Coordinator Identifies Possible…

by Tammy Holloway, SurfKY News
May 31, 2015 1123

Survivors, Caregivers, Supporters Gather for…

by Tammy Holloway, SurfKY News
June 02, 2015 1074

Hopkins County Misdemeanor Indictments

by SurfKY News