Simplifying Complexity – applying the millennial mindset

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Nick Foy, CFP®

Millenials have earned a (perhaps well-deserved) reputation for being “entitled, lazy, and over-confident.” But their attitude toward money and things, paired with a penchant for simplicity, might produce better investors than ever before, if only they can develop the necessary patience.

Those 80 million Americans born between 1980 and 2000 have taken a different tact when it comes to spending their money. Assuming they can stick with a job long enough to earn something, their attitude is much more in line with what research has shown actually brings satisfaction:

Millennials are highly adept at using technology and social media influences many of their purchases. They prefer to spend on experiences rather than on stuff. Seventy-eight percent of millennials—compared to 59% of baby boomers—“would rather pay for an experience than material goods,” according to a survey from Harris Poll and Eventbrite cited on Bloomberg. Continue reading “Simplifying Complexity – applying the millennial mindset”

Three steps to teaching your kids about money

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Nick Foy, CFP®

Most kids aren’t great with money. But then again, neither are most parents.

When it comes to teaching kids about money, I find few know where, or when, to start. Not many of us had parents of our own who taught basic financial literacy lessons, and we all know that just about nobody ever receives information about personal finance in school.

A couple of weeks back, the Wall Street Journal ran an article providing some ideas on the topic, but for the most part, the story was focused on teens (and later). But, in order to truly have an impact, I think parents should start teaching basics at a younger age.

It’s tough to get 96% of people to agree on anything, but check this out:

“Some 96% of 128 college students in a recent study said they wished their parents taught them practical skills such as budgeting and saving (emphasis mine).”

I’ll assume the remaining 4% either learned practical skills about money as kids, or were recovering from a late night frat party and didn’t really understand the question.

So when, and how, should parents start teaching their kids about money, debt, and investing?

Continue reading “Three steps to teaching your kids about money”

Don’t be like that guy

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Nick Foy, CFP®

From Nobel Prize winning economists to Warren Buffett, a consensus has formed for investor-centric advisors and thought leaders: Index (or passive) investors stand a better chance of having a great investment experience than their active counterparts. Decades of research and data have provided us a deep insight into the ways of the market. Stock markets don’t always make sense; sometimes, in fact, they go completely berzerk. But investors who focus on those things they can control: costs, taxes, diversification, and their own behavior, are probably going to capture more of the return that markets provide than those who overspend in what the data shows us is likely to be a futile attempt to beat a benchmark.

I drew this conclusion after studying the markets for the past 17 (or so) years, 11 professionally. Now, as a relatively young (middle aged?) advisor, I’m grateful to have developed this understanding early in my career.

Some aren’t so fortunate.

Continue reading “Don’t be like that guy”

More income doesn’t make you rich

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Nick Foy, CFP®

The media and politicians make this mistake all the time, but it’s worth pointing out: More income doesn’t make you rich.

A couple of months ago, Business Insider answered the question entirely incorrectly: How much money you have to earn to be considered rich in 42 major US cities.

The article proceeds to tell us how much income someone needs to earn in order to be in the top 1% in cities all over the country. What they don’t mention, though, is that income has almost nothing to do with wealth. Continue reading “More income doesn’t make you rich”

Where we’ve been; where we’re going

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Nick Foy, CFP®

Every so often I plan to use this format to spend some time talking about me. Or, more specifically, about us, as in Greenway, our employees and our clients. And our (hopefully) future clients.

In some ways, I got into this business accidentally (hence the name of the blog). I never had any intention of going into finance; it was far too stuffy for me. I knew I wanted the focus of my career to be about doing something that I found meaningful, but I’m sure I could’ve made anything seem meaningful somehow. Continue reading “Where we’ve been; where we’re going”

Don’t Do Dumb Stuff – The Best (Unintentional) Financial Advice I’ve ever received

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Nick Foy, CFP®

As a 13-year old, my 7th grade science teacher use to get (understandably) pretty upset with me. Mr. Morris was easily in his 60’s, with well-groomed grey hair, and polos that typically fit too tightly around his bulging biceps.

He also taught 7th grade PE, and would frequently find the need to recite this phrase to me, for one reason or another. He’d look me straight in the eye, as I sat in the back row of science class, or as I did something other than what was required of me on the field during PE:

“Nick, don’t do dumb stuff.” Continue reading “Don’t Do Dumb Stuff – The Best (Unintentional) Financial Advice I’ve ever received”