The ways to succeed with money – Part I

Left to my own devices, I will often hunker down with a book and bury myself in the midst of the invented worlds, the science of the body, or the life of an interesting person.  While I may wish to be out with friends and community, I will default to where I am most comfortable, in my own head.  Therein lies the problem.  Without the interaction of other souls, without the input of those that I care about, I will tend to be myopic and – while comfortable – I do not grow.

And, your money, how does this apply?

I know that my clients are intelligent, caring and perceptive.  They will use the knowledge that they are given by mutual fund companies, their 401ks, and what they read in books and on the internet.  They take what is available and use it to the best of their abilities.   And, ofttimes, they do not succeed.  Why might this be?

There are many reasons why they might not succeed, and I’ll lay out a few of them and how you might overcome these issues.

1.  Information Overload :  Have you seen the plethora of information available out there?  From the internet to every self-help money book to the myriad of white pages and prospectuses that every mutual fund company and retirement plan sponsor will provide?  The amount of information that is shoved at you every moment is fairly overwhelming.  Have I mentioned that it can also be conflicting, as well?  You can read a newspaper article one minute, and the next something said on the news is telling you the exact opposite opinion or information.

WHAT DO YOU DO? Find a few trusted sources of information and stick with them.  And, ignore the rest of the hype.  Do you realize that the stock market is not run on facts, but on emotions?  It is true.  It is not the FACTS that a company publishes that changes the markets, but the reaction to those facts.

For example, say XYZ Widget Company says that they have developed a doodad that will eradicate cancer.  The stock of that company will start soaring, even though the doodad is not yet in production and has not had the opportunity to affect the profits of the company.  What if, the next week, the XYZ Widget Company now declares that it was a mistake, that the doodad was faulty and will not be produced?  Now, the stock of the company starts to plummet – again, without anything having actually happened.

The markets are run on fear and greed, not fact.  So, ignore the hype and pay attention to the few sources that you have determined are trustworthy and reliable.

2.  Not all the information:  Most people do not realize that there are more available options in which to invest than just stocks, bonds and cash.  There are products that are available only when you work with a licensed financial advisor, and are never discussed on CNN or Bloomberg.  There are investments that will provide stability or diversity to any portfolio, and will not be discussed by the sources that bring you information.

Many of the sources of your financial information have a vested interest in ensuring that you purchase their products.  With your 401k, your insurance agent, your broker – they are all aligned against you.  Yes, I said it – against you.  Their job is to sell you their product.  I am not saying that there are not some great people in all of different industries, for there are.  However, their boss [the insurance company or the wirehouse] is adamant that they sell you their products, so that they can be profitable and survive.  There is nothing wrong with being profitable, unless it comes at your expense.

WHAT DO YOU DO?  Your guide to money should be aligned with you.  That person should have a philosophy of caring for the client first and themselves second.  How do you know?  Ask them, read their propaganda, follow your gut instinct.  See, they must care first about how you are helped and how you thrive before they care about how much money they make.  If the person in front of you seems slick and makes you a little uncomfortable – you know that “icky” factor – then thank them, leave and interview another advisor.

What else makes it so that you might not succeed?  There are a few more pieces of this that are still missing, and I’ll discuss them in my next blog.  Until next time, dear readers.

May you be happy, healthy and full of the abundance of this life.

The Happiness Manifesto – Part 5 – Give

As I walk into another day, I take a moment to reflect [as suggested in the Happiness Manifesto] and come to the conclusion that I am truly fortunate to be where I am and doing what I love.  I get the outrageous opportunity to make a difference in others’ lives with what I teach and what I do for a living.  That is not something that everyone can claim.

5.  GIVE … do something nice for a someone.  Thank someone.  Smile.  Volunteer your time.  Join a community group.

Science has proven a neurological relationship between the stimulation that the reward centers of our brain receive and any act of mutually cooperative action.   It makes us happy to help others, to reach out, to be in connection with the people around us.  Imagine that … helping others helps ourselves be happier and more fulfilled.

How does that relate to your money?

Well, first I want to caution you about giving – you are not able to give to someone else until you are first meeting all of your own needs.  You know how – when you are traveling in an airplane – they say that “in the unlikely event that there is a loss of cabin pressure, plastic hoses will drop from the ceiling.  Please put yours on first before helping a child or traveling companion.”  The concept is:  it is hard to save your child if you are already unconscious.  Same thing applies to your money.  If you are not going to be able to put food on the table or pay your electric bill, you have no right to be giving money to charities or others.  Even adult children.  Of course, you still have every opportunity to help them or others with your time and skills.

I truly believe that we are here to be eminently successful, vastly powerful and outrageously dedicated to our own health and well-being.  In my view, that means that it is important to do everything in your power to live up to those goals.  One of the things that will ensure your well-being and help you to be amazingly successful is when you have the ability to help others.  It may be through volunteering at the local soup kitchen, working with children, acting on a board of a not-for-profit, watching your neighbors house when they are gone, raising your hand when someone asks for help, playing with a small child, petting a dog, letting someone in front of you in traffic, allowing a person ahead of you in line that seems in a hurry, placing a dollar in the hand of someone that seems needful, and I could go on and on.

There is no small gift.  Every action and choice that helps others brings us a measure of joy, fires those old feel-good neurons and pays it forward in ways that we may never begin to understand.

I have a foolish hope – one that I dream perpetuates for infinity – that every small or large action that I take to help someone is passed on and on and changes some stranger’s life in a positive way that I will never know.  A positive version of the Butterfly Effect, if you will.

Good giving!  I hope that it brings you much happiness.

 

The Happiness Manifest – Part 4 – Keep Learning

Image by Brett Jordan via Flickr

Did I mention how much I enjoy my time on planes?  As much as I lament the time spent not in meetings with clients or teaching someone about the joy of money [or is that just the strange creature that I am?], still I remember, as I am tapping away at the keys or scribbling in my notebooks, how precious this time is for me to do the things that keep me in line with my values.  If you have not seen my business cards, you won’t know that I declare my values right there for the world to see clearly, so that I may be reminded and held accountable to those declarations.

Character.  Integrity.  Growth.

These words mean many different things to different people, as we all come to this world with our separate perceptions, yet I am eminently clear on what they mean to me.  One of the values that keeps me curious and open is Growth.  To me, this signifies my commitment to be a perpetual student – of the markets, of the human condition, of all the whys and wherefores, and of my own ability to be a better human to my community.

In the Happiness Manifesto, the fourth step is …

1. KEEP LEARNING … pick up a book, start something entirely new, try what your children love on for size, play with knowledge.

There is a correlation to learning and to older people being more active and suffering less depression.  It is postulated that the benefit is not necessarily in the accumulation of knowledge, but in the curiosity.  Learning has a positive  influence on our self-confidence and our sense of purpose, and setting and seeking goals to achieve is known to improve our well-being.

When was the last time that you showed curiosity about your money, about what your advisor was investing in, or in what other choices might be available to you in other types of investments – such as investments in your own education, or in starting a dream?  Are there things that you yearn to know, to discover?   Let your advisor be your guide to helping you articulate those things that make you question.  Enlist their help in becoming playful and childlike with this learning.  Geez, just have some fun!

However esoteric, if you wonder – you should discover.

COLA Increases Raise 2012 Contribution Limits

Reblogged from E is for ERISA:

A 3.6% Social Security cost of living increase for 2012 has triggered increases in annual contribution and other dollar limits affecting 401(k) and other retirement plans, the Internal Revenue Service announced on October 20, 2011. These dollar limits were static from 2009 through 2011 due to the floundering economy. Here are some of the key changes (citations are to the Internal Revenue Code):

Read more… 104 more words

The Happiness Manifesto – Part 3 – Take Notice

There is something rejuvenating about plane rides for me.  Strange as it may seem, it is a small space of time, in between gate connections and rental cars, that I have a moment to reflect on my life, my relationships and the joy of where I am at the moment.  It forces me to slow down, read edifying books, and write about the things that I am focusing on right then.

So, as we continue the Happiness Manifesto, our next point is…

1.  TAKE NOTICE … Be curious, catch sight of the beautiful moments, be aware of the beauty of your world, reflecting on your experiences will help you appreciate what matters.

Research suggests that it is the moments of pausing, reflecting, noticing, that creates a self-regulatory behavior.  So, those moments of meditation, of cognitive behavior therapy or just writing your thoughts on the moments you live will help you to be aware and choose the actions that are more in line with your values and your interests.  It is this awareness – this thoughtfulness – that can inspire us to live our best lives.

So, too, can taking notice of your financial lives.  I know you have heard me say that it is not about the money, and I mean no different here.  Take notice of the things that you do for the money – does it align with your values and your intent in this life that you live?  When you invest, do you look at the results that you aim for, or are you so tied up in the volatile world of that currency that you lose sight of what is truly important in the grand scheme of your life?  If you say to me that your life is not grand, I would want to know why – you are the master of your destiny, so shouldn’t you live a very BIG life?  Create what will inspire you and move you into the life you desire.  Money is just the tool that will get you there, so make it do what you need.

We tend to dream about what we will do later in our lives, what joy we will have when we start living our lives and stop working for money.  I am here to challenge you to find what you love NOW, and start to create the life you want to live so that you can work with the money.  Or, at the very least, make the money work for you and your grand dreams.

And, I would love to hear what those dreams are!  You are welcome to comment or email me and tell me how you are dreaming your best life.  I’ll post some of those dreams here, so you can be held accountable for living that grand life.

Connections and Community

I am reminded, as I sit contemplating the rich experiences and connections that I found in a week-long camping trip under the ancient redwoods in Santa Cruz, that we are nothing without the family and community that we build.

There is no success without someone to share it.  There is no love without someone to return it.  And there is no future without a community of people who care deeply about sustainability, abundance and authentic communication.

Well, these things are true for me, at least.  I’ll let you create your own truths about your own connections and community.

Never fear, I will return, dear readers, to my contemplation of  The Happiness Manifesto and how it relates to money and my clients.  However, for this moment, I wanted to pass to you some small amount of the same surcease and peace that I found surrounded by nature, my chosen family and the gift of time.

So, here it is …

… imagine pockets of time that stand still as you draw tiny lines and swirls and dots onto a maṇḍala

… imagine hours that fly by as you press legs to earth while sitting in a trusted circle sharing deep connections

… imagine campfire songs and skit antics as you play like the inner child that you repress so often

… imagine waking to body hugs and gentle kisses of joy that land in your hair and on your face like laughter

… imagine unconditional positive regard and authentic beings that believe that everyone comes to the party of earth to be loved and to belong

… imagine a stunning moment where you realize that who you are, what you do, what you believe is ALL PERFECT for it is where you stand at this moment

 

Thanks for reading.  I’ll see you here in a few days to continue The Happiness Manifesto.  May you, also, have some of this peace that I received.

 

Your money guide,

Tam

 

 

 

 

The Happiness Manifesto – Part 2 – Take part

There is something about running and hiking that renews my spirit and reminds me of what is important in my life.   I will actually laugh out loud while pushing myself to the limit in which I am comfortable, and then pushing myself over the edge of the precipice of my normal boundaries.  It is like the act of moving actually imparts some mental or spiritual benefit.    Which may actually be the case, as there are experts that state that physical exercise can decrease depression, reduce anxiety, lower blood pressure and help a whole host of other physical ailments.  Some doctors state that it can be as effective in the treatment of depression as medication.

2.  BE ACTIVE … Go for a walk or run.  Step outside.  Play a game.  Garden.  Dance.

So, let me take this same action and say, “Take part, be a part, of your investment and financial choices.”

There is nothing that you can not know.  There is nothing that is beyond your potential to grasp.  If you can read this blog, you can understand things about your money and your finances.  Sure, you may not want to grasp all the minute details of how a non-publically traded REIT works, may not want to be eminently wise about all the workings of Mezzanine Financing, may not desire to be intimate with all the details of how to choose the right Private Wealth Management company for your portfolio.  However, you should know what these investments are meant to accomplish, you should be clear about the risks that they entail and how it might affect you, and you should be very knowledgeable about the philosophies that your wealth advisor takes when helping you to choose great investments for your future and your wealth.

You do not have to spend 8 hours a day learning and studying the intricacies of the financial markets.  But, you should know what your money guide means when she says, “this is a good choice.”

You should take action, be a part of each decision, so that you are working together with your wealth advisor to make the informed decisions that will lead to a better money life, with more money happiness.  :)

The Happiness Manifesto – Part 1 – It’s not about the money

As I finish reading the book, The Happiness Manifesto, I reflect on how some simple things – that we often do by instinct – are so essential and universal to happiness.

Why add this to a money blog, you ask?  For me, helping people with investing and wealth is never really about the money.  Sure, I have a strangely analytical mind that revels in the discovery of facts and figures, especially as it relates to investments and planning.  However, as I help people discover their goals and hold themselves accountable to living a RICH life [not to be confused with an affluent life] full of happiness and good choices,  I see every day the power of being fully vested in one’s LIFE, rather than in one’s money.

Along those lines, then, I want to pass on the five universal principles for happiness, and how they may relate to your life with money.

1.  CONNECT … with the people around you, with family, friends and neighbors.

Ellen Berscheid wrote, ” relationships constitute the single most important factor responsible for the survival of Homo sapiens.”

When we connect to our chosen families, those we deem important to our lives, those that we care about, we feed the essential social animal that we are.  This nurtures us, allows us space to breathe and be ourselves and to feel an integral piece of the fabric of the universe.

With my clients, connection is the most important part of our work together.  It is about trust.  With many of my clients, as they tell me about their children, their dreams, the things that they struggle with and the accomplishments that they witness, we begin to create a space of hope, safety and mutual work that will benefit their lives.  It sounds clichéd, perhaps, but they become friends.  I see them in the grocery store, witness major events in their lives and help them to accomplish  goals that they may have been uncertain about reaching.  Most importantly, they know that I have their back.  My life’s work is to guard their money with fierce care and the weapons of choice and knowledge.  Together, we fight the dragons of the unknown.

Never think that the relationship with your advisor is irrelevant and unimportant as you make decisions.  If you do not trust the person guiding you in decisions, perhaps you need a different knight to go into battle with.

They say it is silly …

…to care more about people than money.  To be a wealth advisor and want to change it from a perception of being in “sales” to a perception that we are consultants that you hire to be your advocate in this world of money. They say it is silly that I don’t care how much money I make until after I am certain that my client is best served.  The best people in my industry tell me that I need to have a profit motive.  I am certain that they must be right, but I don’t care.

What I care about is making certain that my family of clients understands money, gets to ask me anything, turns to me to talk about the emotional issues and impacts of money, wants to learn more as they invest with me, and wants to be empowered to change their world, one dollar at a time.  What I care about is that I lead with care in this wilderness of wolves and weeds.  So many things can get in your way; it should not be the person you chose to help you know about money.

If you are not being taught about money, ask why.  Don’t let them convince you that they will handle it all … you should know what they are doing, even if you are trusting them to lead you well.  My clients are intelligent, strong, caring and invested in the knowledge that we are partners in this money thing.  Because, truly, I’ll tell you a secret … it really isn’t about the money.  It is about relationships, trust, and the ability to lie down your head at night and know someone else out there has your back.

Let me make this abundantly clear:  your money is always your money, and you have every right to disagree or make decisions about it, regardless of what I advise.  Don’t let anyone tell you differently.

They say it is silly, but I want to change the world – one client at a time.