Part 2 in a 3-part series. Excerpts from the archives of January 2017:
In a previous edition of TGIF 2 Minutes I reviewed the topic of “Caring for Aging Parents.” The subject remains a big, big topic of conversation with friends and clients. PLUS, as people experience caring for a parent they suddenly say: How much do I need to be concerned about planning for MY OWN Long-Term Care down the line?!
The following edition of TGIF 2 Minutes originally appeared in January 2017. But due to popular demand and recent inquiries on this critical subject I am re-running it.
Grandma moving in?? Traveling to help mom and dad from time to time? Sharing tasks with your siblings to help out your parents?
“Caring for Aging Parents” is an emotional and involved topic that takes FAR longer than two minutes to cover. However, it is a critical topic and one that comes up daily in my conversations with friends and clients. Think about it: how many times have you been part of this conversation in the past several months alone… among friends/family?? I bet more than once!
What Emoji are you feeling these days when it comes to your financial life? Recall that an “emoji” is that little character that expresses an emotion using the keys on your computer or phone keyboard. Happiness, joy, confusion or sadness… there’s an emoji for it all. But just because the markets have been mostly joy … :o) … does not mean that your financial life is all joy and satisfaction. :/ (That is the “uncertainty/confused” emoji.)
I am borrowing from Notre Dame here. But even USC and Michigan fans will accept this as a universal concept.
Last year the University of Notre Dame celebrated 175 years since its founding. There was a lot to celebrate – far more than the seven Heisman Trophy winners since Angelo Bertelli in 1943. More notably, Notre Dame literally considers its greatest accomplishment as establishing itself upon the principal, “A Force for Good”. These were the words uttered by the Catholic priest founders of the University in the winter of 1842.
“A Force for Good” is what the whole world needs, yes?! A Force for Good is also needed desperately in financial services– but in ways not immediately evident.
Of course, most obvious, we need the Fiduciary Rule to be defined – in English – and present and enforced in our ALL our relationships where anyone is advising us on our financial affairs (more on the importance of the Fiduciary Rule in a future edition).
But less obvious – or practiced – is that YOUR ADVISER needs to be “A Force for Good” in YOUR LIFE.I mean this literally: you need to see and feel that the advisory fees you pay are really making a positive difference in your life.
Amidst the “high stakes news” of late maybe it is time for a more mellow message. Whether it has been G-7 talks, world leader summits, US Federal Reserve meetings, celebrity events – or your child’s graduation from kindergarten – the art of not freaking out seems to be harder than ever.
Despite all of the calculations involved in investing, there is still an element of luck involved. A specific term for this luck is, “Sequence of Returns.” What on earth is that? Answer: it is a risk. And it may just be the most important concept in the world if you ever wish to spend your savings – and have them last as long as you need.
The topic became relevant recently when a client asked me to assist in defining what their “concerns” should be for the long-term, now that they had accumulated a decent amount of savings and investments. The desire was to continue to accumulate savings but, more important, have the monies last at least long enough to see their plan to fruition for themselves and their kids. Continue reading “Sequence of Returns: The Luck Factor”
Yes, Pope Francis. Just last week the Vatican in Rome issued a bulletin in which Pope Francis took aim at the financial services industry. His broad topic was how financial advisers manage the “savings” of their clients. By “savings” it was taken to mean the savings, investments and accounts of clients. His Holiness even used the word fiduciary criticizing “advisers who failed to act as a fiduciary by not avoiding conflicts of interest and not working as a prudent professional”.^
College graduation may have been a long, long time ago for some of us or more recently for others – or for your kids or grandkids.
Inspired by this weekend’s upcoming graduation at the University of Notre Dame and “graduation season” in general I offer several basic pieces of personal financial advice that hold meaning for nearly everyone at every age.
These are from a recent article in the Journal of Financial Planning (May 2018) – and they are not snoozers! In fact, several truly surprised me. Check ’em out. And I did not make them up – these are all from formal surveys.