The Financial Answer

Naughty or Nice: Financial Advisors

Who’s ending up on the naughty list this year? Today, we talk through different scenarios financial advisors face to see who would go on the nice list and who is on the naughty list. You might be surprised by some of the answers!
 
Here are some of the biases you might experience:
Naughty or nice: only one yearly meeting the same year as retirement. (2:06)
Naughty or nice: Using asset minimums to determine who to advise. (6:21)
Naughty or nice: Making changes without a thorough discussion with the client. (10:02)
Naughty or nice: Providing only positive testimonials for new clients. (12:28)
Naughty or nice: Not moving accounts without a phone call. (16:57)
 
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Examining Your Own Investor Bias

We all have biases about our favorite and least favorite things. When it comes to investing, what biases should we be aware of? When you go to work with a financial advisor, it’s important to take in their advice and the resources available to you instead of simply letting your judgment be overly influenced by your biases. An advisor may be able to keep those biases balanced against your financial plan.
 
Here are some of the biases you might experience:
Looking only for information that provides confirmation bias. (2:30)
Loss aversion bias can make you overly fearful. (6:00)
You might be prone to chasing a trend. (10:16)
Self-attribution bias can overlook external factors. (15:30)
 
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Financial Things That Are Underrated

In part two of our series, we talk about financial things that are underrated. These concepts are talked about but some may be tempted to overlook the value behind them.
But first, we also are giving out more copies of the book The Psychology of Money by Morgan Housel! Nathan really enjoyed this book with 20 different short chapters about how money affects us and wants you to get a chance to read it, too.
 
Here’s what we think is underrated:
The concept of liquidity is often overlooked. (3:54)
Make sure you’ve got predictability in your portfolio. (8:30)
The simplicity of your plan brings peace of mind. (11:07)
 
For more, visit us online: http://thefinancialanswer.com 

Financial Things That Are Overrated

You may hear of a lot of financial things that sound good, but are they actually overrated? Over the next two shows, we’ll talk about things that are overrated and then later, underrated. When preparing for this particular episode, Nathan had the book The Psychology of Money by Morgan Housel in mind. This book of essays talks about how money messes with your mind and is an easy and enjoyable read. If this sounds like a good book for you, Nathan is giving a few away! Find out how on today’s show.
 
Here’s what we talk about on today’s show:
Tax advantages can be oversold. (7:38)
Rates of return aren’t all you want to pay attention to. (10:04)
Commission-based investment accounts may not be right for you. (15:31)
 
For more, visit us online: http://thefinancialanswer.com 

Your Biggest Financial Assets

Your finances include a variety of different assets. Are you paying enough attention to your biggest financial assets? Make sure you have a conversation about these assets with your advisor instead of going at it alone. Take the time to include these assets in your overall financial plan and understand what part they play in your retirement.
 
Here’s what we talk about on today’s show:
The three biggest financial assets you have. (1:21)
Are you spending enough time on your 401(k)? (2:10)
How do you view your house? (9:34)
Social Security should not be overlooked in your plan. (14:40)
 
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What We Can Learn from Seinfeld

Every once in a while, we all need a good laugh. So, let’s look to a famous comedian to see what we can learn about our finances. Jerry Seinfeld has a lot of content to work with, so we take some of his quotes and apply them to our financial lives. But first, we talk about the housing market, the stock market, inflation, and interest rates.
 
Here’s where you can find that satisfaction you crave:
 
“Sometimes the road less traveled is less traveled for a reason.” (6:03)
“It’s amazing that the amount of news that happens every day somehow fits in the newspaper.” (7:28)
“Confidence is a fascinating commodity.” (12:47)
“I am so busy doing nothing…” (14:27)
 
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Can’t Get No Satisfaction... Or Can You?

Want to know the secrets to experiencing satisfaction in retirement? Believe it or not, it’s not all about having $10 million in the bank. Nathan shares five key factors that will leave you feeling satisfied and at ease about your financial plan and situation in retirement.
 
Here’s where you can find that satisfaction you crave:
 
Having peace of mind about what’s happening with your financial plan and portfolio. (2:15)
Knowing the who, what, why, how, and when of what’s going on with your money. (4:43)
Diversifying your income sources in retirement. (6:15)
Creating confidence in your investments and where you spend your money. (7:43)
Finding security in your healthcare plan. (10:28)
Gaining independence from the government or family assistance. (12:48)
 
For more, visit us online: http://thefinancialanswer.com 

How Money Ads Catch Your Attention

Have you been pulled in by the marketing messages behind some financial ads? We talk through the common themes and how to pick the right strategy for you.
 
What we discuss in this episode: 
0:59 - Nathan shares about the latest change at work.
3:33 - Money ads are designed to capture your attention.
4:01 - “Invest like you’re the 1 percent.”
7:46 - “Master this course.”
10:00 - “Secure your future.”
15:22 - “Is everything crashing down?”
 
For more, visit us online: http://thefinancialanswer.com 

Financial Diseases That Plague Retirees

What kind of financial ailment might you be dealing with? Nathan talks through the different things we need to look out for and how to stay financially healthy.
 
What we discuss in this episode: 
1:49 - What to do about acute portfolio risk-opathy?
5:19 - Suffering from old fogey’s disease?
7:44 - We all have inflation-itis.
12:27 - We can’t avoid nursing home-a-tosis.
18:54 - Uncle Sam syndrome is something no one likes.
 
For more, visit us online: http://thefinancialanswer.com 

Clearing Up Financial Myths

What financial myths have you heard and perhaps fallen for? What happens when it doesn’t work out the way you thought?
Let’s bust some financial myths today on the podcast. Whether it was true in the past or never true at all, Nathan is here to set the record straight.
 
Here's what we discuss on the podcast: 
1:24 - Remember the TV show Mythbusters?
2:11 - Should you shifting from stocks to bonds?
5:39 - Is life insurance necessary in retirement?
6:31 - Will you need less income in retirement?
11:30 - Is financial planning easier to do because of technology?  
 
For additional resources, visit us online: http://thefinancialanswer.com