JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

November 21, 2016  
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  • When to invest yourself and when to have the help of an advisor
  • Why invest yourself?
  • Why to enlist the help of an advisor
  • How an advisor can pay off
  • Quote of the lesson from George Horace Lorimer

Whenever I receive feedback from listeners of the show one of the main topics they would like to cover more is investing. I'm always a little hesitant to discuss investing because I am not a registered investment professional.

Yes I can speak to the differences between a ROTH and Traditional account, a 401(K) and an IRA, stocks vs. bonds vs. cash, and the importance of diversification. But not what specific investment is right for you.

I've attempted to learn more and self-educate, but the thing with investing is that if you search around people who are actually qualified, you'll see that it seems like everyone has a different approach to investing. This makes it hard to decipher which is the right way for you.

Of course there is no one right way, but how do you determine whether an investment is right for you or not? Today we are focusing on whether to invest yourself or hire a CFP or advisor to help you choose. Based on a recent study, it's about 50/50 on whether or not you invest or have an advisor help you.

When to Invest Yourself

For those of us who invest on our own, we mainly do it by default with our 401(K) at work. We have no clue what to invest, so we pick a few funds and let our co-worker tell us about what they invest in. But there are legitiment reasons to invest in yourself, some of the reasons include:

  • You have self taught yourself investing strategies
  • You have experience with investing
  • Have a level of comfort and understanding
  • Not going to be scared by down turns in the economy or market

When to Invest with an Advisor

  • Just starting out or you have no idea what you are actually doing
  • You find the topic investing very confusing
  • Very impulsive
  • Need help determine what your financial plans for the future are

Again to me, there isn't a one size fits all approach to investing. There are legit reasons to go at it alone and equally legit reasons to have some advice. Of course it will cost you something to invest with an advisor, but if you aren't investing or are investing in a product that is under performing, isn't it worth paying someone to help give you an even bigger return down the road?

Paying a fee isn't necessarily a bad thing, if it is helping you to invest more each year, increasing your rate or return, causing you to knock panic and withdrawl everything over a news event it it well worth it. The fee is bad however if the advisor is just filling out paper work and not really teaching you about investing.

Thing to Remember with Investing

Whenever we do invest in something, either on our own or with an advisor it's important to know

  1. Why you are investing in it
  2. What's the investment's goal and risks
  3. What is the investment's fee structure

If you know those things with investing you are well on your way. Again I don't think there is a right way or a wrong way. It all depends on your comfort level and knowledge of investing.

In the past Lisa and I have used an advisor to help us out with selecting funds, and we're not against doing it in the future.

Right now we investing primarily in low cost index funds on our own which keeps the costs down and makes whatever the market is doings. But that's just us.

My hope is this lesson provides you with knowledge to decide whether to invest on your own or hire an advisor.

Resources mentioned in the show

Today's quote of the lesson is brought to you by Audible.com

“It's good to have money and the things that money can buy, but it's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy." – George Horace Lorimer

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

November 13, 2016  
00:0000:00
  • The biggest inhibitor to winning with money is fear
  • How we saw this manifest in the election this week
  • How to discern between real fear and worry
  • Why fear shouldn't drive our financial decisions
  • Quote of the lesson from Zig Ziglar

the-jws-financial-coaching-podcast_128

On today’s special lesson of the show, I do an impromptu discussion on how fear is one of the biggest inhibitors of achieving financial success.

Today’s discussion was spurred on by the event’s this past week revolving around our election on Tuesday. When it became clear that Donald Trump was heading towards getting the magical 270 electoral votes needed the stock market futures, not the real stock market, dropped more than 750 points.

Of course then the next day on Wednesday the real stock market closed at an all time high. But it got me thinking to how fear drives so many of our financial decisions. Not just because of an election result but fear in our every day life.

A couple of things that we discuss today on fear and our money include

  • Stock Market
  • Credit Cards
  • Starting a budget
  • Changing careers

We’re all going to face fear at some point, it’s natural. But how do we differentiate between true fear and worrying about the worst case scenario? To me it is use judgement and test that fear. Am I afraid because I read something on Facebook or because I’ve thought it all the way through? Anytime I hear about the total collapse of _______ (Fill in the blank) I get skeptical. But I’ve realized personally that if I am doing something different to change my finances and I have some fear, the more I do that thing and get comfortable with it, the more the fear goes away.

My challenge to you today is to think about if there is any fear that you are facing that is holding you back financially?

If so why do you have the fear?

What is it preventing you from doing it?

What would be the positive result of you doing the action?

Below are resources mentioned in the show to help remove the fear from making changes with your finances:

Today's quote of the lesson is brought to you by Audible.com

F-E-A-R has two meanings: Forget Everything And Run or Face Everything And Rise. The choice is yours” ~ Zig Ziglar

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

November 6, 2016  
00:0000:00
  • Anyone else sick of the election and ready for it to be over?
  • Why Washington won't and can't change your finances
  • The importance of focusing on your economy
  • What you can spend your time focusing on instead
  • Quote of the lesson from Rory Vaden

the-jws-financial-coaching-podcast_127

Unless you are living under a rock, you know that the 2016 Presidential Election will all come to ahead this Tuesday when we will elect the 45th President of the United States of America. With that being said I think I speak for most Americans when I say that I’m ready for the election to be over.

But with that being said, voting for our leaders and issues on a national, state, and local level is an important part of democracy.

Today’s lesson though is about why Washington, or even your state for that matter, won’t and can’t change your finances. It’s nothing against them, but politicians can only adopt policy changes that can encourage you to make wise financial decisions, but it CAN’T force you to be smart with money.

You are the only one who can force you to

  • Develop a budget
  • Identify areas that you are weak that will cause over spending
  • Pay down your debt
  • Save for your retirement
  • Teach your children about

So whatever the result of Tuesday’s election is remember that it’s up to you to make wise financial decisions and even if you’ve been the problem, the good news is that you can become part of the solution.

Resources mentioned in today’s show

Today's quote of the lesson is brought to you by A Tale of Two Houses 

Success is never owned; it is only rented – and the rent is due every day” ~ Rory Vaden Take the Stairs

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.