Happy HallowTurkeyMas! That’s right, it seems the retailers of the world would like us to believe that the “Holiday Season” begins in September and ends on January 1st. In fact, this is so apparent, even kids have picked up on it.
Ask your average five year old when Christmas is and they are likely to say the day after Halloween. Retailers seem to transition earlier and earlier from Halloween to Christmas -- Turkey Day, I’m afraid, is just not worthy of much decoration, unless you are at the grocery store and then you can’t help but run into hugantic displays of canned pumpkin, marshmallows and bread crumbs.
So what messages are we sending our children with this mashed-up holiday menagerie? Is there a problem here? Are children learning the real value of the holidays or only the “value” of a good holiday sale? However you answer these questions, the holidays are a perfect time to engage your child in some experiential activities on the value of money. So class, let’s begin . . .
Activity #1 – Santa’s sack is not full of money!
To encourage children to appreciate gifts both received and given, try this. Have them make a Santa list with three categories and limit the amount of items the categories can ultimately have . . . three is a good number. The categories are as follows:
1) Presents I would like Santa to bring me
2) Presents I would like to give to others who have less than me
3) Presents I would like to give to my family
Help your child get creative by having at least one of the items on the list be something that can be done for free. For instance, Santa can bring homemade cinnamon rolls on Christmas morning; you can smile at someone each day; you can make your bed on each morning from Christmas to New Years to give your Mom a break (ok, that was a personal one).
Lesson learned: Not all gifts come from the store. Gifts from the heart feel good when given and received.
Activity #2 – Keep within your Santa List budget
A sale is only of value if you actually need what is on sale! Take a trip to the mall with the following goal. Find the best deal on one of the items from your child’s Santa List- preferably not the “presents I would like” list. Don’t buy anything that is not on the Santa List and make sure no matter what it is; it is within your budget. It may take more than one trip to accomplish this goal.
Lesson learned: Finding something you really want at a really good price feels good.
Activity # #3 – Debunk that Ad!
You don’t have to buy something just because a beautiful girl, or a handsome man, or a cute kid says you should. Companies spend millions of dollars studying what triggers a person to buy something. Engage your child in a game of “debunk that ad.” You can play this game almost anywhere – except maybe camping in the woods!
Find any advertisement and ask your child to tell you the following: a) what is the ad selling b) how are they trying to make you feel c) what are they not telling you.
Lesson learned: Ads don’t tell you everything you need to know about a product and buying based solely on emotion can lead to buyer’s remorse.
That seems like enough to get you headed in the right direction. Have fun over the holidays (whichever ones you celebrate) and enjoy your family. No amount of money can ever replace that! So, happy HallowTurkeyMas!
Post co-written by Tracy Tamura and Yvonne Ceresa, CFA with Merrill Lynch
Friday, November 13, 2009
Wednesday, April 29, 2009
Demystifying Portfolio Diversification
To begin our discussion on portfolio diversification we will need to define some common terms. If you are already familiar with these terms feel free to skip to the next paragraph; however, a quick skim couldn't hurt.
Portfolio- For our purposes a portfolio represents all the individual investments you participate in
Diversification- Financial assets of many different varieties within your portfolio
Asset Class- An individual investment within your portfolio
Asset Allocation- The amount of investment into a specific asset class
Balanced- The process of measuring your investments to balance your overall risk; how balanced your portfolio is has a lot to do with your investment timeline and your risk tolerance.
Risk Tolerance- This is your risk temperature and is used to determine your overall portfolio goals and timeline to reach these goals. For example, are you primarily conservative, moderate, or aggressive.
Index- An index is an investment product that is based on the overall performance of a pre-defined market or a mix of markets. For example, S&P 500®, NASDAQ®, Russell 2000®, Dow Jones/Dow Jones Euro Stoxx 50®, etc. Indexes have specifically designed crediting methods and usually offer an interest floor and a cap. Both the floor and cap are designed to offer protection against market fluctuations.
A well diversified portfolio will include a variety of asset classes including, but not limited to: stocks, bonds, annuities, life insurance, real estate, business investments, etc.
Ideally you want your portfolio to contain a mix of fixed and flexible assets, both in and out of non-qualified plans with a range of moderate to aggressive investments. For instance, stock assets can be more on the aggressive side while bonds are considered conservative. Annuities and life insurance can be both aggressive and moderate. Real estate is an aggressive long term asset because of its unpredictable nature. Other investments may hold more or less risk, like investing directly in a business.
Portfolio development is as individual as each person. The key is to create a mix of investments that give you the best chance at achieving your overall financial goals.
Step one is defining your overall financial goal – and sorry, but you can’t just say “to be rich” – I know, I’m a killjoy! Seriously though, defining your goals is no quick process and there are many things to consider. Here is a list of some of the basics:
- At what age would you like to retire?
- How much annual income will you need during retirement?
- What is the timeline from today to your desired retirement age?
- Is your timeline realistic considering the following:
- How much can you put into your retirement plan each year? This is a discussion around what you’re WILLING to save V.S. what you NEED to save - not always an easy discussion to have.
- Will income taxes be lower or higher when you retire? (Take into consideration that current income tax rates are at an all time low.)
- What might your estate taxes look like?
- If you have children, how much are you willing to invest in their higher education? Pay for it all (which may limit your timeline for accruing your retirement funds). Pay for some and supplement with grants, loans and your child working part time. Not paying for college, they will have to make it on their own.
5. Do you want to leave behind a financial legacy?
- Inheritance for your children or other relatives?
- Donations to charities, political organizations, or other organizations?
Of course there are many additional conversations you may need and/or want to have. The list above is designed to get your creative juices flowing. I also recommend getting referrals for a good financial planner. Make sure they are certified (not certifiable) and check references – at least three.
Step two is determining your risk tolerance. How much risk are you comfortable with? If you are not very comfortable with risk, then your portfolio may be more on the moderate side. Of course, if you are more comfortable with risk, your portfolio will be more aggressive.
When choosing what investments you will make, start by assigning priority levels. For instance, if you have children, own a home and are the sole and/or partial provider for your family’s needs, one of your first goals may be to purchase life insurance. But what type of product will fit best within your overall portfolio.
What type of life insurance you choose depend on many factors.
First is to understand that life insurance is a financial tool designed to protect your assets and/or potentially grow them. There are many positive applications for life insurance as an asset class within your balanced portfolio.
Keep in mind that term insurance is not an investment vehicle. It provides asset protection. There is no cash value accumulation within a term plan and the cost is usually relatively low V.S. whole or universal life because of the shortened time span for coverage.
I would suggest talking to a life insurance specialist to learn more about adding life insurance as an asset within your balanced portfolio. Don’t know a life insurance specialist? Want to find one? I would be more than happy to work with you.
Step three is to take action and build your portfolio. This is where you really want to make sure you have the right professionals helping you along the way. It may be that you will work with 3 or 4 different professionals to complete the process. Don’t let that scare you. Work with people you, a) trust, b) like and c) have the qualifications to get the job done. Then you can sit back and enjoy the returns.
Step four is to review and reallocate once a year. This should be done with a financial professional; preferably the one(s) who helped you set up your portfolio. Remember, they are not just service providers. An excellent investment advisor partners with you in achieving your goals and realizing your dreams.
Once your portfolio is established, and you have your yearly reallocation mechanisms in place, I promise you will be amazed by the security and sense of accomplishment you will feel. You have just done something that most others have not. You will walk around with a self-satisfied look on your face. Others will take notice and then you will have the opportunity to potentially help transform someone else’s life, by sharing your story and “paying it forward!”
Monday, April 13, 2009
Six Month Series on Investement Strategies
For the next six months I am going to write a series of articles under the overarching title of investment strategies.
The idea behind these articles is to put “conventional wisdom” to the test based on current economic events, and to expand on new concepts and ideas.
Most of us, whether Baby Boomers looking retirement in the face, or those of us with 25 or more years to go NEED to re-evaluate our current thoughts and actions on how to accumulate enough money to support us through retirement.
Additionally we will ALL need to look at what we are willing, able and/or want to leave behind as a legacy to our children, loved one; and charitable organization.
Not that investing has ever been simple; but I can promise you it is only going to get more complex. With rising income taxes, huge national debt, a failing health care system, and equally if not greater failing educational system (at least in California), it is inevitable that our ability to save for the future will be challenged.
However, don’t get me wrong, I don’t think it’s a bleak picture at all! Actually, I think we all have a tremendous opportunity to take control of our financial lives in a way we have never been able to before. Through education and due diligence we will not only attain our goals, but in many cases surpass our expectations. Most of all, we will be left feeling empowered and not powerless! Anyone been feeling powerless lately? Doesn’t feel good does it.
My commitment in the next six months of posts is to help put you on a path moving towards financial freedom.
I believe working together sharing information is the path to empowerment. If you feel the same read on to see what topics will be covered.
Also, when you go to my blog, sign up as a “follower” and you will get these posts automatically. I will not be putting the full articles into my monthly email reminders but I will always provide a link to my blog to view them.
The topics will be as follows:
1) Demystifying Portfolio Diversification – What does a balanced portfolio really look like? (This article will post sometime before the end of the week.)
2) Stock Market Volatility – What to do when the stock market is up and when it’s down.
3) Excuses that Block Savings for Retirement – What are you doing that may be preventing you from saving the appropriate amount of money for your retirement?
4) Kids and Money – More tips and tricks for helping your children learn the value of money and the habit of saving it! (This article will expand on my earlier post and incorporate some of the lessons learned so far from the current economic downturn.)
5) How Often should you Review Your Portfolio – An in-depth look at how, why and when you should be reviewing your asset allocation portfolio (The first article will cover the definition of asset allocation).
6) How Much is Enough for an Emergency Fund – Do you have money set aside for a “raining day?”
The idea behind these articles is to put “conventional wisdom” to the test based on current economic events, and to expand on new concepts and ideas.
Most of us, whether Baby Boomers looking retirement in the face, or those of us with 25 or more years to go NEED to re-evaluate our current thoughts and actions on how to accumulate enough money to support us through retirement.
Additionally we will ALL need to look at what we are willing, able and/or want to leave behind as a legacy to our children, loved one; and charitable organization.
Not that investing has ever been simple; but I can promise you it is only going to get more complex. With rising income taxes, huge national debt, a failing health care system, and equally if not greater failing educational system (at least in California), it is inevitable that our ability to save for the future will be challenged.
However, don’t get me wrong, I don’t think it’s a bleak picture at all! Actually, I think we all have a tremendous opportunity to take control of our financial lives in a way we have never been able to before. Through education and due diligence we will not only attain our goals, but in many cases surpass our expectations. Most of all, we will be left feeling empowered and not powerless! Anyone been feeling powerless lately? Doesn’t feel good does it.
My commitment in the next six months of posts is to help put you on a path moving towards financial freedom.
I believe working together sharing information is the path to empowerment. If you feel the same read on to see what topics will be covered.
Also, when you go to my blog, sign up as a “follower” and you will get these posts automatically. I will not be putting the full articles into my monthly email reminders but I will always provide a link to my blog to view them.
The topics will be as follows:
1) Demystifying Portfolio Diversification – What does a balanced portfolio really look like? (This article will post sometime before the end of the week.)
2) Stock Market Volatility – What to do when the stock market is up and when it’s down.
3) Excuses that Block Savings for Retirement – What are you doing that may be preventing you from saving the appropriate amount of money for your retirement?
4) Kids and Money – More tips and tricks for helping your children learn the value of money and the habit of saving it! (This article will expand on my earlier post and incorporate some of the lessons learned so far from the current economic downturn.)
5) How Often should you Review Your Portfolio – An in-depth look at how, why and when you should be reviewing your asset allocation portfolio (The first article will cover the definition of asset allocation).
6) How Much is Enough for an Emergency Fund – Do you have money set aside for a “raining day?”
Tuesday, March 3, 2009
Intentional Chocolate - Very Cool Idea!
Recently, I was introduced to an amazing company, International Chocolate. Not only is their chocolate outstanding (and yes, I have sampled some - OK, many) but their company mission and vision are inspiring.
I am now sending a box of Intentional Chocolate to each new client. As for you folks who worked with me before Intentional Chocolate, never fear - your box will be in the mail on your one year policy anniversary!
Here is a little bit about their research based approach and philosophy. You will also find a link to the company website on the left side of my blog.
The gratitude I have received from the recipients of these wonderful little chocolates has solidified in my mind the power of positive intentions!
Try some and see what the buzzzzz is all about!
Chocolate and Intention Research
Positive intention is a thought, a prayer, or a blessing. Positive intention is also an offering to the world at large or to a friend in need and can come from the pure desire to help another. There is a growing body of evidence that suggests that intention invokes measurable power and energy that can manifest across space and time.
Researchers all around the world, such as those at Princeton, Harvard and the Max Planck Institute are studying the power of intention.
The blessing of food with an intention has long been practiced within spiritual traditions and sacred ceremonies. These practices place certain energy into the food that is then offered back to benefit individuals and the community.
At Intentional Chocolate™ we not only provide a product that can be gifted as a positive intention to another person, but we strive to lead intentional and purposeful lives.
By paying attention to the effect we have on the whole through our decisions and actions we attempt to “do no harm and benefit others.”
As we move throughout our day, we hold in our minds the desire to be in service to the “we.”
We know that holding this desire is not easy. In our chaotic world filled with so many distractions and stress, people are yearning to return to simple values and meaningful relationships based on love and respect. The busier our lives become, the harder it can be to focus on positive intentions and to stick to them.
I am now sending a box of Intentional Chocolate to each new client. As for you folks who worked with me before Intentional Chocolate, never fear - your box will be in the mail on your one year policy anniversary!
Here is a little bit about their research based approach and philosophy. You will also find a link to the company website on the left side of my blog.
The gratitude I have received from the recipients of these wonderful little chocolates has solidified in my mind the power of positive intentions!
Try some and see what the buzzzzz is all about!
Chocolate and Intention Research
Positive intention is a thought, a prayer, or a blessing. Positive intention is also an offering to the world at large or to a friend in need and can come from the pure desire to help another. There is a growing body of evidence that suggests that intention invokes measurable power and energy that can manifest across space and time.
Researchers all around the world, such as those at Princeton, Harvard and the Max Planck Institute are studying the power of intention.
The blessing of food with an intention has long been practiced within spiritual traditions and sacred ceremonies. These practices place certain energy into the food that is then offered back to benefit individuals and the community.
At Intentional Chocolate™ we not only provide a product that can be gifted as a positive intention to another person, but we strive to lead intentional and purposeful lives.
By paying attention to the effect we have on the whole through our decisions and actions we attempt to “do no harm and benefit others.”
As we move throughout our day, we hold in our minds the desire to be in service to the “we.”
We know that holding this desire is not easy. In our chaotic world filled with so many distractions and stress, people are yearning to return to simple values and meaningful relationships based on love and respect. The busier our lives become, the harder it can be to focus on positive intentions and to stick to them.
Financial Calculators Galore
Ever wondered how much it really costs to raise a child, or plan to send that child to college, or what you'll need to save in order to retire comfortably?
I'm sure it comes as no surprise that the Internet is full of financial calculators. However, I found a site that has every calculator you can think of in one spot http://www.walletpop.com/calculators.
If you would like to talk to a financial services professional about your results, I would be happy to help!
Hope you find this site as useful as I do.
I'm sure it comes as no surprise that the Internet is full of financial calculators. However, I found a site that has every calculator you can think of in one spot http://www.walletpop.com/calculators.
If you would like to talk to a financial services professional about your results, I would be happy to help!
Hope you find this site as useful as I do.
Tuesday, February 24, 2009
Confessions of a Retail Shoe Store Manager
"Here comes a clam, quiet, mature, caring professional, pledging to treat the folks (his clients) as he would his own family. But simultaneously banging around in the folks' heads are various forms of the verbs "to hawk," "to peddle" and "to push" - along with admonitions to beware people who just came from a job in a shoe store. . "
The Excellent Investment Advisor, by Nick Murray
I confess, I was a retail shoe store manager for over 4 years and everything I've ever learned about the art of selling, I learned in that store. Contrary to popular belief and immortalized by Al Bundi (Married With Children), this was not a horrible spirit breaking job but actually the awakening within me of what I had to contribute to the world – what my unique abilities are.
Here are five of the top lessons I learned while selling shoes.
1)No matter how good the “shoe fits” you can’t sell something to someone they don’t really want. For example, it’s very hard to “sell” someone on the idea that a $100 shoe will last 10-times longer than the $30 shoe if all they have is $30, or all they care about is price. Value is subjective. Find out what a person values and start from there.
2)No matter how bad the “shoe fits” you can’t talk someone out of buying it if they have their heart set on “that” shoe. For example, try to tell a young teenage boy that the latest “sports figure” shoe is not made very well and will probably fall apart in a month or two and you’ll get a blank stare back while their handing you a fist full of money for that very shoe. They don’t really care if the “shoe fits” or even if it's made well, they just want to be able to say they own it. Fashion is not synonymous with comfort. An ugly shoe is ugly no matter how well it fits (this is also subjective and closely tied to lesson 1).
3)Ignore strange noises, smells and comments from your customers. If you don’t, you’re liable to offend someone as people often don’t know that they smell or make strange noises or talk without thinking. Smile, even when it hurts. People don’t usually mean to be mean and a genuine smile can melt even the grumpiest customer.
4)This lesson is obvious but important. You just can’t please everyone. This is especially important to remember when your smile does not work.
5)There is always another customer and every person is not a customer but every person can be a prospective customer. Sales like life is about building relationships. Don’t try to sell, advise instead.
I have often said that working in a shoe store, being a waiter, or any other customer service/sales driven environment builds character, self-confidence, and fuels ambition. You have to be creative when your stock is low and you only have one shoe in a customers’ size; or you are waiting for the weekly food delivery, and your menu is missing 3 of the top selling items. This is when “Smile, even when it hurts. . .” really comes in handy.
So if the above is true and working in a sales environment has so many life-long-learning benefits, why are sales people so ridiculed and second guessed?
I can’t tell you how many times someone would come into the shoe store and after I had given them amazing, honest, upfront service they’d say, “Thank you so much for your time. I’m going to go down to the XYZ store to see what they have. I may be back.” Actually, they mostly just said “thanks” and walked off, but I knew they were going to the XYZ store. Did I do something wrong? Did I smell or make a strange noise, or say something weird without thinking? NO!
Or even better, when a customer would tell me I was not being honest, I would ask them why they thought that and the response would be something like, “Because you’re a sales person – you’re paid to lie.” My response was always the same, “WOW, really, I didn’t know that. I better go back and get more training.” Sometimes customers thought that was funny and sometimes they were offended. Oh well, you just can’t please everyone.
I believe the primary obstacle both consumers and sales people face is an overload of options. So much so, that the hardest part of any sale usually lies in narrowing down the choices to the best fit.
So how does one overcome this obstacle? What makes one sales person stand-out above another? What should the consumer look for and where do they find truly excellent sales people that they can trust to help them narrow their choices down to the best fit without driving them crazy with long-winded presentations, graphs, charts and fancy words?
The answer is quite simple. Look for those individuals who are genuinely looking for you. For example, if you live in a modest home, work hard for your money, love your kids and want to see them succeed to their highest potential (sound like anyone you know); and a Ferrari salesperson calls you, guess what, they didn’t do their homework! Not that you wouldn’t want a Ferrari, not that you wouldn’t be tempted; but I mean really, that sales person is fishing in the wrong stream!
On the other hand, whether you walk into a store or you’re called on the phone, what makes you stay awhile and listen to what someone has to say. I bet first off they’re smiling – not some phony, cheeky, toothy smile; but a genuine “I like what I do” smile that you can feel even over the phone. Second, they don’t try to sell you anything, they just invite you into a conversation and they genuinely want to learn more about you and what your needs are. Finally, if you decide not to work with them they say,” thank you for the opportunity to speak with you” and mean it.
It’s ok to shop around, that’s part of what makes our free-market system so great. For example, when I’m at the grocery store buying milk, I look for the best milk at the best price; but I don’t need a sales person to help me read the label – well, maybe I actually do considering there can be up to 12 choices for milk and that’s not even including soy products! But when all is said and done, what we’re all looking for is someone to say “don’t worry, I can help you with that” and then actually do that – help!
That’s what a truly excellent sales person does. They don’t “hook” you and then hold on with dear life until you’re both out of breath – if you feel that happening during a sale – run for the hills. Excellent sales people are actually Excellent Advisor*. They make suggestions and recommendations based on your needs and their level of expertise. They let other professionals solve challenges and problems they are not trained to solve and they are not afraid to say they don’t know an answer. However, they will always find a way to provide you with an answer or connect you with another Excellent Advisor who they trust to answer your questions.
They say confession is good for the soul , and now that I am done, I would have to agree. Now you all know my little secret. I don’t just consider myself a sales person. I consider myself an Excellent Advisor. I was when I sold shoes, waitressed, held various other customer services jobs, started my own consulting company and now as I enjoy an amazingly fulfilling career as a life insurance specialist.
Am I a sales person? You bet! But don’t let that frighten you.
Now when a client says they want to think something over or get another opinion. I just say, “thanks, you have my card,” and then I move on. I know some people will come back and some won’t and that’s just fine with me. My goal is NOT to make a sale every time I talk to someone. My goal is to share what I know with people who are looking to build a long term business relationship with someone they can trust. That’s something both my clients and I can feel good about.
I hope you are developing these types of business relationships out in the world. I mean, life is too short to work with people you don’t like, let alone trust.
If you need assistance with life insurance and/or retirement planning you know where to find me.
*The Excellent Investment Advisor, by Nick Murray
The Excellent Investment Advisor, by Nick Murray
I confess, I was a retail shoe store manager for over 4 years and everything I've ever learned about the art of selling, I learned in that store. Contrary to popular belief and immortalized by Al Bundi (Married With Children), this was not a horrible spirit breaking job but actually the awakening within me of what I had to contribute to the world – what my unique abilities are.
Here are five of the top lessons I learned while selling shoes.
1)No matter how good the “shoe fits” you can’t sell something to someone they don’t really want. For example, it’s very hard to “sell” someone on the idea that a $100 shoe will last 10-times longer than the $30 shoe if all they have is $30, or all they care about is price. Value is subjective. Find out what a person values and start from there.
2)No matter how bad the “shoe fits” you can’t talk someone out of buying it if they have their heart set on “that” shoe. For example, try to tell a young teenage boy that the latest “sports figure” shoe is not made very well and will probably fall apart in a month or two and you’ll get a blank stare back while their handing you a fist full of money for that very shoe. They don’t really care if the “shoe fits” or even if it's made well, they just want to be able to say they own it. Fashion is not synonymous with comfort. An ugly shoe is ugly no matter how well it fits (this is also subjective and closely tied to lesson 1).
3)Ignore strange noises, smells and comments from your customers. If you don’t, you’re liable to offend someone as people often don’t know that they smell or make strange noises or talk without thinking. Smile, even when it hurts. People don’t usually mean to be mean and a genuine smile can melt even the grumpiest customer.
4)This lesson is obvious but important. You just can’t please everyone. This is especially important to remember when your smile does not work.
5)There is always another customer and every person is not a customer but every person can be a prospective customer. Sales like life is about building relationships. Don’t try to sell, advise instead.
I have often said that working in a shoe store, being a waiter, or any other customer service/sales driven environment builds character, self-confidence, and fuels ambition. You have to be creative when your stock is low and you only have one shoe in a customers’ size; or you are waiting for the weekly food delivery, and your menu is missing 3 of the top selling items. This is when “Smile, even when it hurts. . .” really comes in handy.
So if the above is true and working in a sales environment has so many life-long-learning benefits, why are sales people so ridiculed and second guessed?
I can’t tell you how many times someone would come into the shoe store and after I had given them amazing, honest, upfront service they’d say, “Thank you so much for your time. I’m going to go down to the XYZ store to see what they have. I may be back.” Actually, they mostly just said “thanks” and walked off, but I knew they were going to the XYZ store. Did I do something wrong? Did I smell or make a strange noise, or say something weird without thinking? NO!
Or even better, when a customer would tell me I was not being honest, I would ask them why they thought that and the response would be something like, “Because you’re a sales person – you’re paid to lie.” My response was always the same, “WOW, really, I didn’t know that. I better go back and get more training.” Sometimes customers thought that was funny and sometimes they were offended. Oh well, you just can’t please everyone.
I believe the primary obstacle both consumers and sales people face is an overload of options. So much so, that the hardest part of any sale usually lies in narrowing down the choices to the best fit.
So how does one overcome this obstacle? What makes one sales person stand-out above another? What should the consumer look for and where do they find truly excellent sales people that they can trust to help them narrow their choices down to the best fit without driving them crazy with long-winded presentations, graphs, charts and fancy words?
The answer is quite simple. Look for those individuals who are genuinely looking for you. For example, if you live in a modest home, work hard for your money, love your kids and want to see them succeed to their highest potential (sound like anyone you know); and a Ferrari salesperson calls you, guess what, they didn’t do their homework! Not that you wouldn’t want a Ferrari, not that you wouldn’t be tempted; but I mean really, that sales person is fishing in the wrong stream!
On the other hand, whether you walk into a store or you’re called on the phone, what makes you stay awhile and listen to what someone has to say. I bet first off they’re smiling – not some phony, cheeky, toothy smile; but a genuine “I like what I do” smile that you can feel even over the phone. Second, they don’t try to sell you anything, they just invite you into a conversation and they genuinely want to learn more about you and what your needs are. Finally, if you decide not to work with them they say,” thank you for the opportunity to speak with you” and mean it.
It’s ok to shop around, that’s part of what makes our free-market system so great. For example, when I’m at the grocery store buying milk, I look for the best milk at the best price; but I don’t need a sales person to help me read the label – well, maybe I actually do considering there can be up to 12 choices for milk and that’s not even including soy products! But when all is said and done, what we’re all looking for is someone to say “don’t worry, I can help you with that” and then actually do that – help!
That’s what a truly excellent sales person does. They don’t “hook” you and then hold on with dear life until you’re both out of breath – if you feel that happening during a sale – run for the hills. Excellent sales people are actually Excellent Advisor*. They make suggestions and recommendations based on your needs and their level of expertise. They let other professionals solve challenges and problems they are not trained to solve and they are not afraid to say they don’t know an answer. However, they will always find a way to provide you with an answer or connect you with another Excellent Advisor who they trust to answer your questions.
They say confession is good for the soul , and now that I am done, I would have to agree. Now you all know my little secret. I don’t just consider myself a sales person. I consider myself an Excellent Advisor. I was when I sold shoes, waitressed, held various other customer services jobs, started my own consulting company and now as I enjoy an amazingly fulfilling career as a life insurance specialist.
Am I a sales person? You bet! But don’t let that frighten you.
Now when a client says they want to think something over or get another opinion. I just say, “thanks, you have my card,” and then I move on. I know some people will come back and some won’t and that’s just fine with me. My goal is NOT to make a sale every time I talk to someone. My goal is to share what I know with people who are looking to build a long term business relationship with someone they can trust. That’s something both my clients and I can feel good about.
I hope you are developing these types of business relationships out in the world. I mean, life is too short to work with people you don’t like, let alone trust.
If you need assistance with life insurance and/or retirement planning you know where to find me.
*The Excellent Investment Advisor, by Nick Murray
Friday, January 30, 2009
Term and Invest The Difference
Every once-in-a-while I come upon something that I just can't hold back on sharing. I hope you find the following of great educational value.
. . .
When talking or blogging about the wisdom of owning life insurance, no one disputes that it is a vital and extremely important purchase decision in ones life. However, should the purchase be universal, whole or term life insurance. Financial professionals passionately debated this topic daily.
Mostly I just observe and wonder at the incredible misconceptions and heated arguments that ensue. Today however, I stumbled upon a post that I found most interesting.
The topic of the post is, "Term and Invest the Difference." The concept is simple, buy term insurance and use the money you save over purchasing whole life or universal life insurance as your deposits into some other type of investment plan (like your 401K, money market accounts, annuities, mutual funds, etc.).
This concept is at the center of almost all debates between financial service professionals and those within the industry who specialize in life insurance planning - like me.
There are multiple reasons why the concept "Term and Invest the Difference" does not work for many people. I found this article (link posted below) and attached comments fascinating. I am re-posting it on my blog for educational purposes.
If you have ever considered owning a whole life or universal life plan, please give me a call. I would be happy to discuss your options and the many potential benefits.
http://www.walletpop.com/blog/2008/09/11/tip-8-buying-term-insurance-and-investing-the-difference-may-b/
. . .
When talking or blogging about the wisdom of owning life insurance, no one disputes that it is a vital and extremely important purchase decision in ones life. However, should the purchase be universal, whole or term life insurance. Financial professionals passionately debated this topic daily.
Mostly I just observe and wonder at the incredible misconceptions and heated arguments that ensue. Today however, I stumbled upon a post that I found most interesting.
The topic of the post is, "Term and Invest the Difference." The concept is simple, buy term insurance and use the money you save over purchasing whole life or universal life insurance as your deposits into some other type of investment plan (like your 401K, money market accounts, annuities, mutual funds, etc.).
This concept is at the center of almost all debates between financial service professionals and those within the industry who specialize in life insurance planning - like me.
There are multiple reasons why the concept "Term and Invest the Difference" does not work for many people. I found this article (link posted below) and attached comments fascinating. I am re-posting it on my blog for educational purposes.
If you have ever considered owning a whole life or universal life plan, please give me a call. I would be happy to discuss your options and the many potential benefits.
http://www.walletpop.com/blog/2008/09/11/tip-8-buying-term-insurance-and-investing-the-difference-may-b/
Thursday, January 29, 2009
Fostering Positive Money Management Skills in Kids
Helping kids develop positive money management skills is a core value at the foundation of any effective parenting model. It helps build self esteem and confidence along with goal-setting skills.
So why is it so darn hard! There are a myriad of extremely challenging obstacles parents face when attempting to teach good money management skills. Just think of the many ways we pay for our goods and services: checks, credit cards, debit cards, PayPal (on line shopping), store credit cards, gift cards, and of course, the quickly going out of style . . . “cold hard cash.”
I think we have to look back no further than the Millennium Generation, or “Trophy Kids” as they are sometimes referred, to gain clarity on some of the road blocks parents encounter in helping kids develop good money management skills. Considered born between the years of 1980 and 2001, Trophy Kids are defined as those who believe they are entitled to something for a minimal amount of work.
Is this assumption based on fact or fiction, or somewhere in-between? I vote for somewhere in-between. I also vote for more data. What forces were at play during their developmental years that could lead to such an outlandish belief as being entitled to anything?
Are the parents of “Trophy Kids” at fault? Is it in their DNA? Was it implanted in their brains by some alien species hell-bent on destroying our civilization by brainwashing kids into believe they should get whatever they want without having to work hard for it? Maybe that last point is a bit outlandish but at times it seems like the only plausible explanation. I mean, for goodness sake, it can’t be that the parents fostered this attitude! No way!
Ok, sarcasm aside, I do think parents of the Millennium Generation (and all parents since) have some serious challenges in countering the development of children who grow up with a general sense of entitlement. Here are the top three challenges as I see them. See if you can spot any commonalities:
1) Technology
2) Technology
3) Technology
Don’t take this in the wrong way, I love technology and it has made almost everything “better, stronger, faster” (did you 70’s folks catch the reference), or at least that is usually the goal. Even money has been technoed. Cash is fun to have but very rarely is it mandatory. Just think, when was the last time you went rummaging through your wallet or purse looking for exact change? Nope, it’s “Slide your card Mam.” “Will that be credit or debit Sir.”
Back in the good old 80’s, when I was in highschool (oops just gave away my age), this is the percent of friends I had that had credit cards, MP3 players and cell phones – 0%. Here are some percentages for today’s high school students:
1) 30% have credit cards in their own names (Credit Abuse Resistance Education report 2006)
2) 50% have MP3 players (MSNBC report 2007)
3) 60% have cell phones (US cellular statistics 2007)
Wow, those are some startling statistics that developed during a short 20 year span! We have experienced a complete technological revolution in a historical blink of an eye.
Maybe we should hold off on making any snap judgments about those parents of Millennium Generation kids. Maybe they were faced with an onslaught of new, exciting and sexy gadgets, gismos and whatnots at a rate that would be impossible for anyone to keep up with, let alone stopping to wonder what the long term negative effects might be!
And . . . we haven’t even discussed what I think is the biggest culprit. If you guessed I’m going to say the Internet, you’re only about half right. It’s media! It’s everywhere around us, even in the form of logoed clothing. It’s celebrities and their newest sister the “non-actor” celebrity (You know who I’m talking about, and guess what – Yep, they were born in the Millennium Generation.)
Fast forward from 2000 all the way to 2009. What is going on currently that adds even greater insult to injury in our fight to help our kids develop good financial habits and a positive outlook about money in general? It’s the current downturn (oops I mean avalanche) of the American financial markets. Everywhere you go people are having “woes me” conversations about their decreasing 401K plans and their plummeting home values. And believe me, these conversations are not being censored for the young (and I don’t mean young at heart).
So, now we have a real triple threat:
1) Total media saturation
2) Technology overload (including the Internet, cell phones, MP3 players, etc)
3) An economic crisis of epic proportions
Going back to my original point, that “Helping kids develop a positive outlook and vocabulary around money and finance is a core value at the foundation of any effective parenting model. . .” How can we possibly achieve such a goal with so many obstacles in our way?
Like most complex problems the solution is often quite simple, but hardly ever easy to accomplish . . . Start with being A GOOD ROLE MODEL.
As early as possible, introduce complex financial and money management concepts in small, easy to digest bites. Ignore the three “triple threats.” Don’t let them derail your core value systems. Use them as launching pads for meaningful discussions and demonstrations.
If all else fails, read and re-read the following statement – Dare I suggest you even put it up on your refrigerator?
“Young people nowadays love luxury, they have bad manners and contempt for authority. They show disrespect for old people and love silly talk in place of exercise. They no longer stand up when older people enter the room; they contradict their parents, talk constantly in front of company, gobble their food and tyrannize their teachers.”
Socrates 400 BC
I think that puts everything back into perfect perspective don’t you? Just in case you need more, here are a few tips for fostering good financial habits with your kids. These tips will help them succeed now and in the future:
· Set a savings goal and decide what they will do with their savings once they reach their goal. Put these goals in writing and keep a log of their deposits with a running total. An easy one is saving enough to open a savings account at your local bank (usually $100).
· There are teachable moments happening around you every day, everywhere you go. When shopping, instead of ranting about ever increasing prices of food, let your child help you find the best bargains for the money. This is especially good for early elementary kids. Challenge them to read not just the price but the weight or amount of a product versus the price. This is a good habit to develop regardless of current economic conditions.
· Change your vocabulary. If you tend to talk about money in negative ways, work on turning your attitude around. Our children get most of what they know from us (even with all the media around them). If you have a negative outlook on money and finance so will they. If you talk about how expensive things are all the time, they may actually begin to feel unsafe. It’s not hard to imagine a child drawing a connection between your comments about rising costs and your ability to meet their basic needs – even if you always do meet those needs.
· If you choose to give your child allowance, make sure the amount fits the job and is something you are comfortable giving. Most kids are happy to get a few dollars a week, but may feel overwhelmed and make poor choices if given too much.
· Listen to yourself, not to the media. If your child wants a product they see on TV, ask some questions: Why do they want it? What does it do? How long do they think it will last? Do they think the advertisers are telling them everything about the product? This will yield some fantastic family discussions and set the stage for smart money management skills development.
· And finally, say YES sometimes. Just be conscience of when you say YES, and why as well as when you say NO and why. Your children will learn that they do not get everything they ask for, but when they do, they appreciate it.
The effects of all this will be hard to see on a day-to-day basis but just think about your son or daughter going to his or her first job interview. When asked what they value most – I bet they won’t say their electronic game station. More likely it will be something like . . . “I appreciate that my parents took the time to really teach me the value of money. Now I’m ready to earn and manage my own money.” Ok, maybe not that exactly, but something equally as awesome!
Hope you enjoyed this post. Send me your thoughts, comments, additional information on the subject. Let’s keep the conversation going!
Here is a great link that posts on-going discussing about kids and money - great resource!
http://www.walletpop.com/blog/category/kids-and-money/
So why is it so darn hard! There are a myriad of extremely challenging obstacles parents face when attempting to teach good money management skills. Just think of the many ways we pay for our goods and services: checks, credit cards, debit cards, PayPal (on line shopping), store credit cards, gift cards, and of course, the quickly going out of style . . . “cold hard cash.”
I think we have to look back no further than the Millennium Generation, or “Trophy Kids” as they are sometimes referred, to gain clarity on some of the road blocks parents encounter in helping kids develop good money management skills. Considered born between the years of 1980 and 2001, Trophy Kids are defined as those who believe they are entitled to something for a minimal amount of work.
Is this assumption based on fact or fiction, or somewhere in-between? I vote for somewhere in-between. I also vote for more data. What forces were at play during their developmental years that could lead to such an outlandish belief as being entitled to anything?
Are the parents of “Trophy Kids” at fault? Is it in their DNA? Was it implanted in their brains by some alien species hell-bent on destroying our civilization by brainwashing kids into believe they should get whatever they want without having to work hard for it? Maybe that last point is a bit outlandish but at times it seems like the only plausible explanation. I mean, for goodness sake, it can’t be that the parents fostered this attitude! No way!
Ok, sarcasm aside, I do think parents of the Millennium Generation (and all parents since) have some serious challenges in countering the development of children who grow up with a general sense of entitlement. Here are the top three challenges as I see them. See if you can spot any commonalities:
1) Technology
2) Technology
3) Technology
Don’t take this in the wrong way, I love technology and it has made almost everything “better, stronger, faster” (did you 70’s folks catch the reference), or at least that is usually the goal. Even money has been technoed. Cash is fun to have but very rarely is it mandatory. Just think, when was the last time you went rummaging through your wallet or purse looking for exact change? Nope, it’s “Slide your card Mam.” “Will that be credit or debit Sir.”
Back in the good old 80’s, when I was in highschool (oops just gave away my age), this is the percent of friends I had that had credit cards, MP3 players and cell phones – 0%. Here are some percentages for today’s high school students:
1) 30% have credit cards in their own names (Credit Abuse Resistance Education report 2006)
2) 50% have MP3 players (MSNBC report 2007)
3) 60% have cell phones (US cellular statistics 2007)
Wow, those are some startling statistics that developed during a short 20 year span! We have experienced a complete technological revolution in a historical blink of an eye.
Maybe we should hold off on making any snap judgments about those parents of Millennium Generation kids. Maybe they were faced with an onslaught of new, exciting and sexy gadgets, gismos and whatnots at a rate that would be impossible for anyone to keep up with, let alone stopping to wonder what the long term negative effects might be!
And . . . we haven’t even discussed what I think is the biggest culprit. If you guessed I’m going to say the Internet, you’re only about half right. It’s media! It’s everywhere around us, even in the form of logoed clothing. It’s celebrities and their newest sister the “non-actor” celebrity (You know who I’m talking about, and guess what – Yep, they were born in the Millennium Generation.)
Fast forward from 2000 all the way to 2009. What is going on currently that adds even greater insult to injury in our fight to help our kids develop good financial habits and a positive outlook about money in general? It’s the current downturn (oops I mean avalanche) of the American financial markets. Everywhere you go people are having “woes me” conversations about their decreasing 401K plans and their plummeting home values. And believe me, these conversations are not being censored for the young (and I don’t mean young at heart).
So, now we have a real triple threat:
1) Total media saturation
2) Technology overload (including the Internet, cell phones, MP3 players, etc)
3) An economic crisis of epic proportions
Going back to my original point, that “Helping kids develop a positive outlook and vocabulary around money and finance is a core value at the foundation of any effective parenting model. . .” How can we possibly achieve such a goal with so many obstacles in our way?
Like most complex problems the solution is often quite simple, but hardly ever easy to accomplish . . . Start with being A GOOD ROLE MODEL.
As early as possible, introduce complex financial and money management concepts in small, easy to digest bites. Ignore the three “triple threats.” Don’t let them derail your core value systems. Use them as launching pads for meaningful discussions and demonstrations.
If all else fails, read and re-read the following statement – Dare I suggest you even put it up on your refrigerator?
“Young people nowadays love luxury, they have bad manners and contempt for authority. They show disrespect for old people and love silly talk in place of exercise. They no longer stand up when older people enter the room; they contradict their parents, talk constantly in front of company, gobble their food and tyrannize their teachers.”
Socrates 400 BC
I think that puts everything back into perfect perspective don’t you? Just in case you need more, here are a few tips for fostering good financial habits with your kids. These tips will help them succeed now and in the future:
· Set a savings goal and decide what they will do with their savings once they reach their goal. Put these goals in writing and keep a log of their deposits with a running total. An easy one is saving enough to open a savings account at your local bank (usually $100).
· There are teachable moments happening around you every day, everywhere you go. When shopping, instead of ranting about ever increasing prices of food, let your child help you find the best bargains for the money. This is especially good for early elementary kids. Challenge them to read not just the price but the weight or amount of a product versus the price. This is a good habit to develop regardless of current economic conditions.
· Change your vocabulary. If you tend to talk about money in negative ways, work on turning your attitude around. Our children get most of what they know from us (even with all the media around them). If you have a negative outlook on money and finance so will they. If you talk about how expensive things are all the time, they may actually begin to feel unsafe. It’s not hard to imagine a child drawing a connection between your comments about rising costs and your ability to meet their basic needs – even if you always do meet those needs.
· If you choose to give your child allowance, make sure the amount fits the job and is something you are comfortable giving. Most kids are happy to get a few dollars a week, but may feel overwhelmed and make poor choices if given too much.
· Listen to yourself, not to the media. If your child wants a product they see on TV, ask some questions: Why do they want it? What does it do? How long do they think it will last? Do they think the advertisers are telling them everything about the product? This will yield some fantastic family discussions and set the stage for smart money management skills development.
· And finally, say YES sometimes. Just be conscience of when you say YES, and why as well as when you say NO and why. Your children will learn that they do not get everything they ask for, but when they do, they appreciate it.
The effects of all this will be hard to see on a day-to-day basis but just think about your son or daughter going to his or her first job interview. When asked what they value most – I bet they won’t say their electronic game station. More likely it will be something like . . . “I appreciate that my parents took the time to really teach me the value of money. Now I’m ready to earn and manage my own money.” Ok, maybe not that exactly, but something equally as awesome!
Hope you enjoyed this post. Send me your thoughts, comments, additional information on the subject. Let’s keep the conversation going!
Here is a great link that posts on-going discussing about kids and money - great resource!
http://www.walletpop.com/blog/category/kids-and-money/
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