Transitioning Children to Adulthood and Considering the Option of Paying for College

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Changing up my format slightly this month, I’m offering three podcasts on the topic of transitioning children to adulthood and considering the option of paying for college. With high school graduation season upon us, this topic is timely as ever. Therefore, I’d like to highlight the following:

  • Listen #1: Joshua Sheats is known for being radical (hence the name of his show, Radical Personal Finance). In this podcast, he discusses why he–as a financial advisor–refuses to save money for his kids’ college. His direct advice to an inquirer is this: “Don’t set up a college plan for your young child. It’s a bad idea and a poor use of money in light of all the other things you can do with money that are better.” Listen to find out why!
  • Listen #2: In this podcast interview between Meb Faber and Ric Edelman, the topic is broached of what the future will look like in respect to work and technology for the next generations. In essence, it is going to look far different than what we’ve known. The tendency is to believe that the future will be similar to what our parents and grandparents experienced as they aged. A linear progression – school, work, retirement, death. Ric believes this is going to change: the linear lifeline is going away. It will more resemble school, work, back to school, a new, different career, then a sabbatical, more school, and so on…a lifeline that’s more cyclical.
  • Listen #3: J.D. Stein from Money For the Rest of Us discusses the changing nature of employment and what humans can do about it. In this episode you’ll learn why job skills will be most in demand in the coming years, how the level of academic knowledge needed to complete jobs peaked in 2000 and has been declining since, and how robots and other information technology are substituting for labor.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for listening!!

Economics and Trade

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This month, I’d like to highlight the following, with an emphasis placed on economy and trade:

  • Read: This article from Vanguard focuses on free trade, its contribution to the global economy, and how it involves a compromise between growth and jobs.
  • Listen: For a seesaw to work properly, you need at least two people–one on each side. When looking at the economy, we should always be asking, “Who is on the other side of the seesaw?” In this podcast by David Stein, he applies the seesaw analogy to federal budget deficits, the national debt, and trade.
  • Watch: How does the economy really work? This simple but not simplistic video by Ray Dalio (founder of Bridgewater Associates), shows the basic driving forces behind the economy, and explains why economic cycles occur by breaking down concepts such as credit, interest rates, leveraging and deleveraging. 
    For the heartiest of hearty, if you’d like to read a fuller treatment of the video, check out Dalio’s 300-page essay here.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Tips On Financial Investing, Vehicles, and Your Paycheck

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This month, I’d like to highlight the following resources on investing, vehicles, and your paycheck cycle:

  • Read: Have you ever wondered what the benefit is of having a financial advisor for your investments, especially if you’re a do-it-yourselfer? This Vanguard client brief explains how financial advisors create value for investors.
  • Listen: Car leasing is the most expensive way to operate a vehicle. Car leasing is the cheapest way to operate a new vehicle. Both of those statements are true. In this podcast, Joshua Sheats explains why, and he explains how to get out of a lease if you have one.
  • Watch: Did you know that 80% of Americans live paycheck to paycheck? In this short video, Jesse Mecham provides several litmus tests for gauging which side of that percentage you fall into.

If you’re interested in meeting with me about any of these or other financial questions, let’s set up a time to talk!

Investment Portfolio Resources

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This month, I’d like to highlight the following:

  • Read: This short article “Investment Shock Absorbers” from Dimensional communicates the need to diversify your portfolio and identify the right mix of investments, all of which helps you keep on track toward your investing goals.
  • Listen: In this podcast hosted by Meb Faber, he discusses “Why ‘Shareholder Yield’ Beats ‘Dividend Yield'”. Shareholder yield provides investors a more holistic perspective on the degree to which corporate managers are sharing profits with investors. This strategy has posted better historical returns than dividends alone. How much better? Listen to the podcast to find out!
    • Bonus Listen this month: YNAB has come out with a couple new jingles on budgeting and expenses. Treat yourself to the catchy tune Budget More!
  • Watch: Jon Stein, founder and CEO of Betterment, had a brief interview with Stephen Dubner, host of Freakonomics Radio, highlighting his findings from behavioral economic research about how to think outside the box and invest better.

This March newsletter is focused on investing; if you’d like to learn more about how I can assist you with putting together a great portfolio, set up a time to discuss this with me!

Financial Tips & Resources

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This month, I’d like to highlight the following:

  • Read: This article by Personal Capital showcases four tips to max out your 401k in 2017. A little planning can go a long ways!
  • Listen: Tight on time? Take 3 minutes to listen to this address from Jesse Mecham, founder of YNAB. He discusses why most people quit budgeting (hint: update your budget now, not tomorrow!).
  • Watch: I recently attended a Dimensional Fund Advisors conference in L.A. and am pleased to now be able to offer these investments to my clients. To learn a little more about DFA and this history, check out these videos: one and two. Of the many details to appreciate with DFA, I really value the academic and scientific approach. They also have a robust global, balanced portfolio of socially-responsible investing (SRI) fund options. If you’re interested in learning more in your portfolio, let’s set up a time to talk!

Never Chase Financial Returns

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Happy New Year! This month, I’d like to highlight the following:

  • Read: A new year provides us with an opportunity to reflect on our accomplishments (and any missteps) and resolve to start afresh. Whether you make New Year’s resolutions or not, here is one resolution worth keeping: Never chase returns. This article from Morningstar shows how investors who chase performance as the market moves up and down often end up underperforming for the long term. Your comfort with risk is an important consideration in your plan, and the “Rebalancing Matters” chart will show you how rebalancing your portfolio can help keep your investments at your desired risk level.
  • Listen: This month’s podcasts focus on optimizing life more than optimizing wealth, a point not emphasized enough in the financial planning industry. One is a brief Christmas message from Jesse Mecham, founder of YNAB, and the other is from Tim Ferriss on Making the Most of Our Lives.
  • Watch: This short text-to-movie video highlights “A Day in the Life of a Financial Advisor“. I hope you enjoy the light-hearted humor!