Tag: investmentplanning

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Simplifying Complexity – applying the millennial mindset

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Nick Foy, CFP®
nick@greenwaywealth.com

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”

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What are you turning money into?

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Nick Foy, CFP®
nick@greenwaywealth.com

In 2005, I bought my first house. It was a total starter home north of Charlotte. New construction, 1,500 sq feet, it became the place that my wife and I lived for five or so years after we married.

Toward the end of the construction process, I realized I was really just taking money and turning it into a house. In 2011, we moved closer to town and ended up building a home in which we still live. I had the same feeling the second time around.

Turning money into other things can be either good or bad, depending on what’s on the other side of the exchange. Continue reading “What are you turning money into?”

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Why revenue source matters

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Nick Foy, CFP®
nick@greenwaywealth.com

An unfortunate reality of my industry is that you can make money as a “financial advisor” no matter who pays you. After the recent failure of the effort to require advisors act in their clients’ best interest, I’ve determined it’s time to call a spade a spade, and shed some light on those who masquerade as advisors.

The determining factor for each of these is the source of the revenue. Is the professional being paid to offer financial advice, to manage a portfolio, or to sell a product? If the latter, it’s likely they’re not actually a financial advisor. Here are a few of my favorites:

Continue reading “Why revenue source matters”

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Thanks, Merrill Lynch! You’re making it easier for independent advisors

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Nick Foy, CFP®
nick@greenwaywealth.com

To much fanfare, Merrill Lynch had previously announced that their “advisors” would be adopting the fiduciary standard, per the Department of Labor requirement that was supposed to have been enacted by now.

Now that the rule won’t be put in place, Merrill has changed their minds.

It seems that Merrill is backtracking on their prior promise to put the clients’ interest first. Instead, they’ll once again allow their “advisors” to push commission-based products that probably aren’t the best thing for their client.

Consider me relieved.

It’s a lot harder to differentiate our services if everyone is acting in a fiduciary capacity.

I’m sorry for those clients that are already embedded in the Merrill platform, with their hidden fees and murky revenue structure. Luckily, better options exist, and there’s really no reason to maintain assets with advisors who are selling products.   Continue reading “Thanks, Merrill Lynch! You’re making it easier for independent advisors”

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Are Health Savings Accounts the most underutilized tool for the average investor?

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Nick Foy, CFP®
nick@greenwaywealth.com

Over the past couple of years we’ve been touting the benefit of the Health Savings Account (HSA) to our clients, but it’s worth noting that HSAs are unique in the world of personal finance:

From a tax perspective, HSAs are more beneficial than any other type of account. Contributions go in pre-tax, growth is tax-deferred, and everything comes out tax-free assuming you use the money withdrawn to cover a qualified medical expense. This triple tax advantage doesn’t exist anywhere else. Continue reading “Are Health Savings Accounts the most underutilized tool for the average investor?”

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Redefining Affordability

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Nick Foy, CFP®
nick@greenwaywealth.com

The ongoing battle for real financial advisors (as opposed to salesmen) is to convince people that delaying some gratification is worth their time. It’s a battle we’re destined to lose, but we fight on undeterred.

Back in 2011, Brett Arrends wrote an article in the WSJ called The $2,000 iPad, in which he attempted to show that the opportunity cost for an iPad (or any other $500 spend) is actually significantly more than the sticker price, assuming you would’ve invested the money instead: Continue reading “Redefining Affordability”