Smart Financial Planning Strategies to Borrow from Women and Millennials

Article from NBC News on June 13, 2018.  Here is the link to the original post.

As a general rule, neither millennials nor women are afraid to ask questions, and that’s giving them a leg up when it comes to planning for the future.

Lately the headlines in personal finance have been pretty bleak — the average 2017 graduate has nearly $40,000 in student loans, millennial home ownership is down, and 39 percent of Americans have no savings at all. Even if you’re not concerned about your financial future, you may well be worried about a child’s, a sibling’s or someone else’s.

Thankfully, there are a few bright spots out there. A new piece of research from Schwab, the 2018 Modern Wealth Index, highlighted a few of them — including the fact that millennials are actually the best financial planners of any generational group. Thirty-one percent have a written financial plan, compared with just 20 percent of Gen X and 22 percent of Boomers. They also best others when it comes to goal-setting and saving. Meanwhile, women emerged as being better long-term investors and than men, and they’re more likely to research major purchases.

Here's a look at some of the things millennials and women are doing right, and how you can put their winning strategies to use in your life.

1. THEY ASK QUESTIONS
As a general rule, neither millennials nor women are afraid to ask questions, and that’s giving them a leg up, says Holly Newman Kroft, managing director of wealth management at Neuberger Berman. “Many millennials are living with a large burden of student loans, and they haven’t accumulated assets, so they’re a little hesitant about investing. They ask questions because they want to make sure they’re doing the right thing.”

Asking questions about finances shouldn’t be any different or more intimidating than asking questions in any other area of your life, Kroft says. “Are you going to go to the doctor and just blindly take medical advice or drugs? You’re probably going to research your condition, and be your own advocate when you go in there —you should be the same way with your financial advisor.” When you ask more questions, you increase your understanding, which is empowering — you’ll be less likely to panic in times of market turmoil, Kroft says. “People are always more scared of the things they don’t understand.”

2. THEY’RE JOINING GROUPS
Social media and other online communities have led to a proliferation of virtual and real-world spaces where people can support each other’s financial struggles, decisions and successes. “I would call them support groups,” Kroft says, “But they’re really more like clubs. I see people discussing everything from going back to work while breastfeeding to finding the right financial planner. People are really just looking to find a community, get educated and share advice.”

Instagram, Twitter, and Facebook have really changed the game when it comes to people connecting on important topics, explains Chris Britt, CEO and co-founder of banking app Chime. “If you’ve found something that’s been helpful to you, there’s a natural instinct to want to share it with others,” he says.

3. THEY AREN'T OVERCONFIDENT
“We’ve seen that women, for whatever reason, are not quite as confident when it comes to financial planning, and because of that, they feel the need to be more conservative,” says Alyssa Schaefer, CMO and Head of Product Experience at online lender Laurel Road. While it’s never a good thing for people to feel insecure, a little humility when it comes to investing can be a good thing. According to a study by Laurel Road, women had a more conservative outlook when it came to their emergency funds — while men thought they needed $8,000, women thought they needed $10,000. “Women seem to know that there is no such thing as ‘later’ when it comes to planning for their financial future,” Schaefer says.

Likewise, millennials, who were just starting their careers in 2008, are living their financial lives prepared for something bad to happen, Kroft says. “They won’t assume they know the best thing to do without doing a lot of research on it,” she explains.

4. THEY DON’T COMPETE TO KEEP UP
“Very rarely do my women clients come to me saying, ‘My friend is getting better returns than I am — I want that,’ but I do see that from men,” Kroft says. “Women don’t care what their friends are doing, and they aren’t trying to win a race.” Instead, they ask questions that pertain to them, and they spend more time making sure their investments are set up to meet their goals, rather than trying to beat the market. This is generally a wise strategy. You shouldn’t be calling up your financial manager and asking to change up your entire portfolio because of a tip you got at a cocktail party. Instead, you should see your investments as part of a long game to reach a long term goal of financial security. “Investing is a lot of things, but it’s not a competition,” Kroft says.

5. THEY USE DEBIT AND AUTOMATION TO STAY IN CONTROL
More millennials prefer debit cards to credit cards for one simple reason — with debit, they’re in control, Britt explains. According to a report by Visa, 28 percent of millennials use debit cards for the majority of their purchases, and Britt says that trend is likely to continue. “People know that with credit cards, they’re more likely to go to the mall and buy that thing that they shouldn’t have bought. Many of them know what it’s like to have $3,000 worth of credit card debt hangover that they’re trying to work through.”

Millennials are also leaning more towards automating their savings, which allows them to “set it and forget it,” Britt says, adding that 92 percent of Chime customers who open checking and savings accounts also sign up for the automatic savings feature, which moves a predetermined amount of money from checking into savings. People don’t have time to miss their money, Britt says. “If you ask someone if they plan to save, they would say yes, absolutely — but they don’t always put that into practice. When your saving is automated, it doesn’t matter how disciplined you are, it’s just happening in the background without you having to think about it.”

Female Leadership is on the Rise

Forbes published this article yesterday.  Here is the link to their post.

Female Leadership Is On The Rise. Here's The Lessons Learned That Will Help You Get To The C-Suite

As the invitation-only Forbes 2018 Women's Summit got underway in New York today, it seemed like the perfect time to share some of the latest research on female leadership. First the good news. According to a recent Pew Research Center Study, female leadership is on the rise (and your best way to the top seems to be through operational-focused roles and experience so make that a critical part of your career path). While women typically occupy top finance and legal positions, individuals in those positions, especially as the CFO, rarely make it to being the CEO. Instead, the best career path is to find a way to being groomed as the COO as consideration for the the C-Suite is usually via this pipeline.

While the ascent is slow, this much-welcomed progress is great for equality and beneficial to the bottom line. This was even backed up by The Royal Bank of Canada in their recently commissioned, widely circulated study showing that having women in CEO positions improves company financial performance and lends to a more diverse workplace. As 35 year-old Stitch Fix CEO Katrina Lake recently explained (and if you don't know Lake she's the youngest female CEO to ever lead a public offering and they're on track to make $1.2 Billion this year) "decision makers are realizing that being more inclusive of women, on every level, is simply good business."

Beth Gerstein the Co-CEO of Brilliant Earth also subscribes to this school of thought. As a female CEO in the historically male-dominated jewelry industry, Gerstein is committed to providing advancement opportunities for women in the workplace. In fact, 81% of Brilliant Earth’s overall workforce is comprised of women, including 67% of management and 80% of C-Level executives. Birch Bender Co-Founder, Lizzie Ackerman, has had a similar experience with her company's workforce primarily compromised of a strong female workforce.

So once you get there, or even better, as you hone your skills, what are some of the qualities you need to advance or be a more effective leader? Dr. Betty Vandenbosch, an award-winning administrator whose leadership at Purdue University Global has cultivated an atmosphere of achievement and integrity, has her own list of five lessons learned skills around becoming a more effective leader. It's insightful and backs up the research on the ways women bring innovative leadership styles to the C Suite and the financial results to prove it. Many of these might seem obvious but it takes real practice to bring these skills to the workplace everyday.

• Actively Listen. We all like to talk, but the best leaders are the ones who listen. Women seem to be better at this. That doesn’t mean you can never voice your opinion, but if you’re able to genuinely understand the perspectives of others, you’ll be able to work with your team more effectively. And that means hearing what people aren't saying, as well as what they are. It’s never enough to limit yourself to what you personally know.
• Maintain An Inner Calm. If you have an inner calm and peace about who you are and what you are capable of, you are able to lead without your ego taking over. A person who is anxious about looking good or getting that next job or next promotion is unlikely to be an effective or gracious leader because they're only looking out for themselves. By accepting where you are, you’ll be able to do your job to the best of your ability and that promotion will come sooner. Bottom line. Don't let emotions get in the way of decision making.
• Set Regular Meetings & Stick To Them. By meeting with your entire team, as often as daily, but no less than weekly, you have the opportunity to speak openly and freely about what you each would like to work on, as well as discuss bigger topics when they arise, including what’s going on within the organization and how to continue moving forward. And, you'll get to know & like each other better - a cohesive team will always move forward faster and more effectively than a group that don't know each other well. Even if you have a small team, adopt this habit.
• Creativity. Creativity means having lots of ideas, but innovation requires implementing the good ones. An innovative leader not only has or enables her team to have lots of ideas, but also has the faith of her team so that they will implement those ideas quickly. An innovative leader also appreciates the naysayers. Naysayers help avoid unintended consequences. She understands that it’s not only imperative to build a culture that encourages team members to openly share their crazy ideas, but also to foster an environment that empowers them to take initiative and follow through with a project to fruition without being micromanaged.
• Not Being Afraid To Change Course When Warranted. An innovative leader recognizes when an idea isn’t as good as she thought. Commitment to a course of action is important, but not if it’s not a good course. Innovative leaders are not afraid to change course when warranted. Being flexible and open to new ideas and course correction can lead a team to reflect, assess, and adjust its approach to a project. The first idea has nothing going for it except that it was first. Being open to the second, third and tenth iteration enables much greater success.

Gerstein takes it a step further by reflecting on specific advice for aspiring female executives and five lessons learned that dovetail with the theme of this year's Forbes Women's Summit. So what business advice does Gerstein have for aspiring female CEO's?

Have confidence, take risks, and foster relationships. It’s important to have confidence in your ability, so speak up when you have an idea and make your voice heard. Volunteer for stretch assignments and don’t shy away from tough projects. Lastly, fostering and maintaining relationships is key in any business. Be thoughtful about creating and nurturing your connections, as they can dramatically influence your career trajectory, not to mention make work more enjoyable and meaningful. Solicit advice from people you look up to that can guide and influence your career; there’s nothing more valuable than gaining insights from a respected mentor or seasoned vet. In fact, at the Forbes Summit Salon dinner hosted by Deloitte, collaboration and courage are two of six signature traits of inclusive leaders.

Finally, Gerstein shares her five lessons learned throughout her career that have propelled her to success. It's worth keeping them handy as you carve your own path.

• Be Persistent: If you practice persistence, there’s no limit to what you can achieve. During your journey, you will likely face a lot of resistance, but ultimately if you stick with what you believe is right, you can truly make an impact.
• Lead by example: You need to be intentional about both what you say and what you do. Everything you do sets the tone for the organization. Even day-to-day things, such as showing up to meetings on time, addressing customer inquiries with urgency and care, walking to work instead of driving, and being responsive to feedback and new ideas for improvement, show your team that you are invested in the work that you’re doing and encourage them to follow in suit.
• You’re only as good as your team: A significant amount of your time as a CEO is focused on building your team – recruiting, retaining, and working hand-in-hand with HR. Finding and nurturing the right people is critical to your success and will take up much of your time and energy. Your success as a CEO and as a company is not due to your own personal achievement, but through empowering others to carry out your strategy and vision.

Gerstein cited that for the the first eight years of running the company, Brilliant Earth Co-Ceo Eric Grossberg, interviewed every candidate that joined the company. In being a part of this process, they were able to hire not only the best fit for the job, but also maintain the brand and culture we were seeking to build. Ultimately, they hired an HR team to enable them to scale, but still remain extremely close to the hiring process and even host a CEO breakfast with new hires shortly after they join the company, so they have early and direct contact with us.

• Repetition is key: It’s important to over-communicate your message to ensure it is heard – whether reinforcing your mission and strategy, explaining a change in process, or implementing new best practices. You might sound like a broken record, but it can take 6-7 times of repeating the same message, in varying formats, for it to be heard by everyone in your organization.
• You are always on: Leaving challenges and problems at the office is not an option. The role of CEO means addressing the tough and unexpected issues, particularly when they are uncharted territory for the organization, and consistently being available to help and answer questions.

That is the "The Way Forward" and ironically the theme of this year's Forbes Women's Summit. Now you can find your way too.

15 Motivational Quotes About Reaching Your Potential From Inspiring Women

Article from Success.

1. “I didn’t get there by wishing for it or hoping for it, but by working for it.” –Estée Lauder
2. “You must do the things you think you cannot do.” –Eleanor Roosevelt
3. “We do not need magic to change the world, we carry all the power we need inside ourselves already: we have the power to imagine better.” –J.K. Rowling
4. “If you truly pour your heart into what you believe in, even if it makes you vulnerable, amazing things can and will happen.” –Emma Watson
5. “You can waste your lives drawing lines. Or you can live your life crossing them.” –Shonda Rhimes
6. “Nothing is impossible, the word itself says ‘I’m possible’!” –Audrey Hepburn
7. “I’m not afraid of storms, for I’m learning to sail my ship.” –Louisa May Alcott
8. “Real courage is when you know you're licked before you begin, but you begin anyway and see it through no matter what.” –Harper Lee
9. “A lot of people are afraid to say what they want. That’s why they don’t get what they want.” –Madonna
10. “Forget about the fast lane. If you really want to fly, just harness your power to your passion.” –Oprah Winfrey
11. “The most difficult thing is the decision to act; the rest is merely tenacity.” –Amelia Earhart
12. “The most common way people give up their power is by thinking they don’t have any.” –Alice Walker
13. “Everyone has inside of him a piece of good news. The good news is that you don’t know how great you can be! How much you can love! What you can accomplish! And what your potential is!” –Anne Frank
14. “You may encounter many defeats, but you must not be defeated. In fact, it may be necessary to encounter the defeats, so you can know who you are, what you can rise from, how you can still come out of it.” –Maya Angelou
15.  “The question isn’t who is going to let me; it’s who is going to stop me.” –Ayn Rand

Words of Wisdom Wednesday

A synopsis of the book “The Compound Effect” by Darren Hardy

This book is a must for financial advisors. Darren Hardy is a renowned sales and marketing coach. He works with entrepreneurs, leaders and CEOs. In this book, he focuses on practical steps you must take to have insane growth in your business. Darren provides concrete examples of ways to implement the right behaviors to compound your results.

One of my favorite takeaways is his compulsive behavior of tracking everything. He explains that you can’t modify or change a behavior unless you understand the true impact on your performance. I implemented this philosophy and I tracked everything I did from the moment I woke up to the moment my head hit the pillow. I found so many inefficiencies in the way I was managing my time. I even took it to the personal level of tracking my calories and my exercise habits and I lost weight with my behavioral changes.

Another thing I implemented immediately was his E vs E equation – your Entertainment versus Education ratio. Everyone has the same number of hours in a day, including the most powerful and successful leaders. However, they seem to accomplish exponentially more with the same number of hours. It is all due to how they choose to spend their time. Darren suggests you track for one week every minute you spend on entertainment which includes news, television, Facebook, cat videos, etc. You get the point. Then he asks you to log how much time you spent on personal development. It could be an online course, a business book you are reading, a license you are obtaining, etc.

What is your ratio? The bottom 80% of society spends most of their time on entertainment; the top 20% spent it on education. This shift is one of the simplest but it is not easy as it requires a change in habits. You will be amazed at how much time you are wasting on garbage in which equates to garbage out. Your habits and behaviors never lie. If you say you want to lose weight but you have orange Cheetos stains on your fingers, then your habits are not aligned to your goal. There is a lot in this book but I suggest reading it and working through the exercises to truly see the impact.

- Bellaria Jimenez