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.

© 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.

springhour

In Other News...

Lady Mustangs Trample Lady Tigers in First Round of Third Region Tourney

OWENSBORO, Ky. (3/4/15) — The Muhlenberg Lady Mustangs defeated Breckinridge Lady Tigers 49-46 during the first round… Read More

Sacramento Man Charged with Rape, Sodomy

GREENVILLE, Ky. (3/3/15) — A 25-year-old Sacramento man has been charged with rape and sodomy of a person under the age… Read More

Most Read This Week

March 02, 2015 9122

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 8419

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 24, 2015 8228

Two Charged in Central City Meth Bust

in Local (Muhlenberg) Top News by Trooper Stu Recke
February 25, 2015 6332

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
February 24, 2015 5474

School Board Holding Special Called Meeting

in Muhlenberg News by Sherri Miller
March 03, 2015 5109

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 09, 2015

Police Pursue Man after Fight at Taco Bell

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Today

March 03, 2015 5109

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
March 03, 2015 3132

Sacramento Man Charged with Rape, Sodomy

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
March 03, 2015 2213

Superintendent: Spring Break Won't be Touched…

in Hopkins News by Tammy Holloway, SurfKY News
March 03, 2015 2210

Madisonville Man Charged for Robbery in Greenville

in Top News For All Sites Touching Hopkins by Greenville Police Department
March 03, 2015 1376

Madisonville Police Arrest Reports - March 3, 2015

in Hopkins News by Madisonville Police Department
March 03, 2015 1265

Baptist Health Madisonville Now Offering…

in Hopkins News by Kristy Quinn
March 03, 2015 1255

SHMS Dance Team Places in State Championship

in Hopkins News by South Hopkins Middle School
March 03, 2015 1220

Militant Crazy Religion, Avoid the Damage

in General News For All Sites by Dr. Glenn Mollette
March 03, 2015 1202

Local Students Place in Stanley Lewis Cultural…

in Hopkins News by Joyce Riggs
March 03, 2015 1149

SurfKY News Exclusive: John Conlee Talks of 40…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News