Monday, October 11, 2010

personal finance money management


If you walked into the average bookstore, you'd think that women rule the roost when it comes to personal finance. From Suze Orman's now-classic Women and Money to the more recent (and more colorfully titled) Bitches on a Budget, there's no shortage of do-it-yourself financial advice tailored to women.



Apparently, though, when women make the momentous move from self-help to seeking professional advice about investing and retirement, things go rapidly downhill. A recent study by the Boston Consulting Group revealed that women perceived themselves as receiving wealth management services at a level of quality that is inferior to that received by their male counterparts.



According to the study, women are the key decision-makers when it comes to 27% of the wealth worldwide: that's $20 trillion! But despite the massive chunk of power they wield, 55% of the women surveyed in the study said they felt their wealth manager could do a better job of advising them. Almost a quarter of the respondents said private banks needed "significant improvement" in the services they offer to women.



"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," according to study co-author Peter Damisch. "We heard this sense of subordination time and time again in our interviews."



This perceived disparity in service arose from several key disconnects in the relationships and communications between women and their financial advisers. Manisha Thakor, Chartered Financial Analyst and women's financial literacy advocate, offers some steps savvy female investors can take to avoid being under-served by their wealth managers and investment advisers:



1. Find your adviser and get your financial education from women-run resources.




The financial services industry is dominated by males and therefore the "DNA is structured around the male experience," Thakor explains, adding that she sees many firms making an effort to change this. Most financial advisers are men, who may not inherently understand the whole-life nature of the average woman's financial plans and needs. They also may have very different communication styles than their women clients.



Thakor recommends women use women-created resources like LearnVest and DailyWorth to educate themselves in order to avoid the intimidation factor when talking about investment products with their advisers. She also encourages women to consult Garrett Planning Network, founded by Certified Financial Planner Sheryl Garrett, to locate a local certified financial planner who works on an hourly-fee-only basis. Taking these steps, Thakor explains, may alleviate the concern expressed by many women in the BCG study that they were not being taken seriously or talked to on the same level as male clients by their financial advisers.



2. Expressly state your ideal career trajectory, then ask how you should alter your investment plans accordingly.



In the BCG study, women stated that their investment advisers fundamentally misunderstood what was actually important to them, and recommended a too-narrow range of inappropriate investment vehicles as a result. Many said their advisers assumed they had a lower risk tolerance than they actually did, or that their advisers focused on short-term results and disregarded their long-term goals, which often included time out to care for a child or parent.



Thakor offers women a script of sorts to remedy this communication disconnect. "Go in and say: "I want to be a mom and I may take X amount of time out of the work force," she advises. Then ask, "How do we adjust how much I need to save and how I should invest to compensate for this?"



3. Start saving early.


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

If you walked into the average bookstore, you'd think that women rule the roost when it comes to personal finance. From Suze Orman's now-classic Women and Money to the more recent (and more colorfully titled) Bitches on a Budget, there's no shortage of do-it-yourself financial advice tailored to women.



Apparently, though, when women make the momentous move from self-help to seeking professional advice about investing and retirement, things go rapidly downhill. A recent study by the Boston Consulting Group revealed that women perceived themselves as receiving wealth management services at a level of quality that is inferior to that received by their male counterparts.



According to the study, women are the key decision-makers when it comes to 27% of the wealth worldwide: that's $20 trillion! But despite the massive chunk of power they wield, 55% of the women surveyed in the study said they felt their wealth manager could do a better job of advising them. Almost a quarter of the respondents said private banks needed "significant improvement" in the services they offer to women.



"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," according to study co-author Peter Damisch. "We heard this sense of subordination time and time again in our interviews."



This perceived disparity in service arose from several key disconnects in the relationships and communications between women and their financial advisers. Manisha Thakor, Chartered Financial Analyst and women's financial literacy advocate, offers some steps savvy female investors can take to avoid being under-served by their wealth managers and investment advisers:



1. Find your adviser and get your financial education from women-run resources.




The financial services industry is dominated by males and therefore the "DNA is structured around the male experience," Thakor explains, adding that she sees many firms making an effort to change this. Most financial advisers are men, who may not inherently understand the whole-life nature of the average woman's financial plans and needs. They also may have very different communication styles than their women clients.



Thakor recommends women use women-created resources like LearnVest and DailyWorth to educate themselves in order to avoid the intimidation factor when talking about investment products with their advisers. She also encourages women to consult Garrett Planning Network, founded by Certified Financial Planner Sheryl Garrett, to locate a local certified financial planner who works on an hourly-fee-only basis. Taking these steps, Thakor explains, may alleviate the concern expressed by many women in the BCG study that they were not being taken seriously or talked to on the same level as male clients by their financial advisers.



2. Expressly state your ideal career trajectory, then ask how you should alter your investment plans accordingly.



In the BCG study, women stated that their investment advisers fundamentally misunderstood what was actually important to them, and recommended a too-narrow range of inappropriate investment vehicles as a result. Many said their advisers assumed they had a lower risk tolerance than they actually did, or that their advisers focused on short-term results and disregarded their long-term goals, which often included time out to care for a child or parent.



Thakor offers women a script of sorts to remedy this communication disconnect. "Go in and say: "I want to be a mom and I may take X amount of time out of the work force," she advises. Then ask, "How do we adjust how much I need to save and how I should invest to compensate for this?"



3. Start saving early.


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

eric seiger

Quizzle's Home Loan Recommendations by QuizzleTown


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

If you walked into the average bookstore, you'd think that women rule the roost when it comes to personal finance. From Suze Orman's now-classic Women and Money to the more recent (and more colorfully titled) Bitches on a Budget, there's no shortage of do-it-yourself financial advice tailored to women.



Apparently, though, when women make the momentous move from self-help to seeking professional advice about investing and retirement, things go rapidly downhill. A recent study by the Boston Consulting Group revealed that women perceived themselves as receiving wealth management services at a level of quality that is inferior to that received by their male counterparts.



According to the study, women are the key decision-makers when it comes to 27% of the wealth worldwide: that's $20 trillion! But despite the massive chunk of power they wield, 55% of the women surveyed in the study said they felt their wealth manager could do a better job of advising them. Almost a quarter of the respondents said private banks needed "significant improvement" in the services they offer to women.



"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," according to study co-author Peter Damisch. "We heard this sense of subordination time and time again in our interviews."



This perceived disparity in service arose from several key disconnects in the relationships and communications between women and their financial advisers. Manisha Thakor, Chartered Financial Analyst and women's financial literacy advocate, offers some steps savvy female investors can take to avoid being under-served by their wealth managers and investment advisers:



1. Find your adviser and get your financial education from women-run resources.




The financial services industry is dominated by males and therefore the "DNA is structured around the male experience," Thakor explains, adding that she sees many firms making an effort to change this. Most financial advisers are men, who may not inherently understand the whole-life nature of the average woman's financial plans and needs. They also may have very different communication styles than their women clients.



Thakor recommends women use women-created resources like LearnVest and DailyWorth to educate themselves in order to avoid the intimidation factor when talking about investment products with their advisers. She also encourages women to consult Garrett Planning Network, founded by Certified Financial Planner Sheryl Garrett, to locate a local certified financial planner who works on an hourly-fee-only basis. Taking these steps, Thakor explains, may alleviate the concern expressed by many women in the BCG study that they were not being taken seriously or talked to on the same level as male clients by their financial advisers.



2. Expressly state your ideal career trajectory, then ask how you should alter your investment plans accordingly.



In the BCG study, women stated that their investment advisers fundamentally misunderstood what was actually important to them, and recommended a too-narrow range of inappropriate investment vehicles as a result. Many said their advisers assumed they had a lower risk tolerance than they actually did, or that their advisers focused on short-term results and disregarded their long-term goals, which often included time out to care for a child or parent.



Thakor offers women a script of sorts to remedy this communication disconnect. "Go in and say: "I want to be a mom and I may take X amount of time out of the work force," she advises. Then ask, "How do we adjust how much I need to save and how I should invest to compensate for this?"



3. Start saving early.


eric seiger

Quizzle's Home Loan Recommendations by QuizzleTown


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

Quizzle's Home Loan Recommendations by QuizzleTown


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


eric seiger

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


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big seminar 14

Quizzle's Home Loan Recommendations by QuizzleTown


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big seminar 14

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


big seminar 14

People attend school for 12 years and are never taught personal finance. By definition, personal finance addresses the ways in which individuals or families obtain, budget, save, and spend money. It includes obtaining and managing checking accounts, credit cards, loans, retirement plans, social security, insurance, income tax and 401k information.

Children learn key subjects such as math and reading, but they don't learn anything about personal finance. Learning about personal financial matters such as budgeting, emergency funds, and savings are a part of every household. Personal finance is all about your money management techniques. How much you have at the end of every check is dictated by your ability to manage money well. The schools don't teach it, churches don't preach it, and parents can't teach it.

Money management skills that encourage planning and saving have to be taught. These skills can't be assumed. Discipline isn't like hearing and seeing, people aren't born with the ability to be disciplined and save money. It takes training and practice to learn how to become disciplined and manage money well.

Schools haven't seen a need to prepare children for personal finance or money management. The education process assumes these skills are taught at home. But, where did the parents learn the skills from? There is a great chance that most parents don't know enough about personal finance to teach their children correctly. This creates a blind leading the blind scenario. Money management discussions are rarely if ever held in most homes. These discussions didn't occur in our house when I was growing up. Children ask questions about what Santa Claus is bringing for Christmas but they never ask why the lights are on or if the bills are paid.

The lack of proper personal finance training and poor money management skills causes havoc and chaos in people's lives. All too often people entertain discussions on being in debt. They tell you how they are making partial payments or late payments on their bills. People talk and complain all of the time about not having enough money to pay their bills or not having enough money left over after paying the bills.

Splurging is not a solution. Fulfilling instant gratifications and buying things because you see and want them doesn't show discipline. The home shopping networks know they have a market for you. When you see the item and it's displayed so beautifully, you tell yourself you just got to have it. There is a great chance that when the item is delivered you'll have forgotten you purchased it. Often, these articles are thrown in a drawer or put up for safe keeping and never used. Everyone remembers the special occasion that necessitated the perfect outfit ensemble. A must have outfit has caused many gas and electric bills to remain unpaid.

Personal finance and money management skills should be taught to everyone if the truth were told. Some people need the training worse than others. Everyone can benefit from learning about how to manage money better. Children need to be taught as early as possible and the schools should require it as part of their curriculum.

America saves less than 5 percent of their income because we haven't been taught how to save. Seeking the services of a financial advisor whose profession is to teach personal finance skills will help Americans save more. A financial advisor is different than a financial planner. Don't get the two different professions mixed up. A financial advisor also known as a financial coach will teach you how to change your attitude about money. Learning how to plan and budget sounds simple but these skills present a great challenge to the average person. Learning what an emergency fund is and how to save for it while incorporating your current and future goals take skill.

Learn how to plan a course for financial well being. You can stop living from paycheck to paycheck if you commit to learning about personal finance and improve your money management skills. Awaken the financial genius in you.


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Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


big seminar 14

Sea Ice <b>News</b> #26 | Watts Up With That?

That is good news, maybe carbon was not the best thing for the global warming crowd to hang their hat on, or maybe it was all just a snow job from the beginning. They seem to be hanging on to it but when the ship is sinking, ...

Arrowheadlines: Chiefs <b>News</b> 10/11 - Arrowhead Pride

Well, that happened. Good morning Chiefs fans, and welcome to Arrowheadlines. As you'd expect, there are a lot of Kansas City Chiefs stories out there this morning. We've gathered them here for you. Enjoy.

Denver Broncos <b>News</b>: Horse Tracks - 10/11/10 - Mile High Report

Your Daily Cup of Orange and Blue Coffee - Horse Tracks!


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