Are We Winning the Fight for Financial Literacy?

Are we winning the fight for financial literacy–what do you think? What influences our purchasing decisions and is that “force” the loudest of all voices? I’ll tackle this important subject this week.

Podcast Details:

Podcast Title:  Are We Winning the Fight for Financial Literacy?
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

Questions/Issues We’ll Address on this Episode:

The Question–“Are We Winning the Fight?” (2:25)

What drives or influences our spending decisions?  (5:30)

The influences that marketing has on us are undeniable.  We are constantly bombarded with the message of CONSUMPTION to, if not drive decision making, definitely influence our decision making.

What is US consumer spending?(8:00)
Domestic consumption of goods and services is near 70% (per the Bureau of Economic Analysis or the BEA).  This is measured by PCE or “personal consumption expenditures”. How much of that do you think is a result of the “Marketing Machine’s” influence?
What are the Facts? (9:40)
So how many people actually learn the basics around cash flow management, budgeting, saving or investing in high school?  or even college?  Here are some sobering statistics…
    • Per the WSJ, the US ranked 14th in a 2015 global study conducted with a grade of just 57%
    • As of May 2016, only 17 states require high school students to take a course in personal finance.
    • Another independent study that about 1/3 of students took a personal finance course in college
Two Articles from WSJ I reference:
Another Independent Study:
Past Problems (12:20)
 I think the most notable problem of the last decade was the US Housing crises where would-be homeowners were SOLD the idea through marketing that homeownership was good (which it is) regardless of your level of income and financial situation.  We needed more educated consumers back in the early 2000s (when was the bill passed?) that could have navigated the relaxed lending standards that allowed them to secure mortgages they couldn’t afford.  (What was the debt-to-equity ratio or the home ratio 1 or 2 back then compared to what it should be?)
Current/Future Problems (15:15)
Have we learned from our mistakes?  I don’t think we have or at least our children haven’t.  The next domino could indeed be something that is ironically enough, “in the name of education”–student loans.  Student loan debt is #2 on the list behind mortgages in the consumer credit market.  Per the St. Louis Fed, the number of student loans outstanding has increased 300% since 2006.
This all points to a problem of lack of education efforts towards financial literacy to keep consumers ignorant as to the consequences of their purchase decisions.
Solutions (19:30)
    • Start with earlier, more relevant education to younger students (my wife as a school teacher);
    • Financial services industry needs to take a more proactive to educate through pro-bono work;
    • Post-secondary lending standards need to be raised to stop the bleeding

#financialliteracy #finance #financialplanning #financialeducation #advice #financialadvisor #debt #studentloans #finlit #money

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About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

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#FinancialLiteracyBootCamp

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Developing Your Money Mindset: “You as Steward and Your Money as a Tool”

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur. Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Podcast Details:

Podcast Title:  Developing Your Money Mindset:  “You as Steward and Your Money as a Tool”
Podcast Series: The Maven’s Keys to Financial Contentment

 

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

 

(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

 

So we’ve been talking about developing your money mindset and we want to wrap things up today with how we should view money.

 

Last week I talked about Marvel Comics and this week I’ll stay with the entertainment theme and talk about The Count of Monte Cristo.  So the movie is obviously adapted from the book by Alexandre Dumas.  My generation is probably more familiar with the film with Jim Caviezel and Guy Pearce.  And to me this is the classic example of stewardship gone awry at least at first.  But there are some lessons that I think are appropriate for our discussion in developing your money mindset.

 

So the first lesson is:

 

  1. Finding out that [the money] is not yours – Developing your money mindset involves realizing that money comes and it goes.  You should master its use as tool, not let it master you.
  2. Finding a higher purpose for it is more enjoyable  – In the movie, “The Count of Monte Cristo”, the main character realizes his plot of revenge isn’t as satisfying as using the money for a higher purpose.
  3. Finding its proper use brings more of it  – Those in our society that adopted a “stewardship” mentality have found out that they actually attain more money.
#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance
#countofmontecristo

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

The Evolution of the Retirement Landscape

So I recently penned an article entitled: “Executive Compensation: A Guide to Building Wealth” (send me an email to get the article) and I wanted to use a podcast segment to take a high-level view at the purpose behind that article, and talk about the evolving retirement landscape that I’ve witnessed in my years of practice.

Podcast Details:

Podcast Title:  The Evolution of the Retirement Landscape
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.
(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

 

Questions/Issues We’ll Address on this Episode:

So I recently penned an article entitled:  “Executive Compensation:  A Guide to Building Wealth” (send me an email to get the article) and I wanted to use a podcast segment to take a high-level view at the purpose behind that article, and talk about the evolving retirement landscape that I’ve witnessed in my years of practice.  Per the Survey of Consumer Finances conducted by the Federal Reserve Board, the number one reason for individuals to save and invest is to fund their retirement.  With the evolution of the retirement landscape over the past three decades, the creation of defined contribution plans like the 401(k) has shifted the responsibility to individual investors to provide income for their retirement years.  Prior to that, defined benefit pension plans put the responsibility on corporations to provide retirement benefits. This was a fairly sophisticated process involving actuaries and large investment firms which had the responsibility to provide investment returns that provided benefits to thousands of workers.  Due to a multitude of factors including reduced corporate profit margins, increased fixed costs from globalization and subpar returns from lower interest rates, this giant responsibility has been handed off to individual investors living busy and complex lives. The logical question is: “How equipped is today’s business executive to deal with this new responsibility”? And further, “Can a successful retirement be achieved without proper financial advice?”

  • What are the IRS limits on contributions to qualified plans? (3:10)
  • The Human Capital Exchange “80,000 hours” defined (8:30)
  • The Evolution of the Retirement Landscape (9:35)
  • Can you have a successful retirement without the proper advice (15:00)
  • The “Unfunded pension crisis” and whether to take the lump-sum distribution (19:20)
  • Company Stock options (21:40)

#financialliteracy #financialplanning #financialeducation #financialadvice #financialadvisor #retirement #qualifiedplans #nonqualifiedplans #executive compensation

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About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

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Developing Your Money Mindset: “Money as an Amplifier”

Podcast Details:

Podcast Title:   Developing Your Money Mindset:  Money as an Amplifier
Podcast Series: The Maven’s Keys to Financial Contentment

 

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

 

(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

 

In talking about  “Developing Your Money Mindset”, I want to begin this episode with an analogy to help unpack today’s discussion.  I watch the Marvel movies and Netflix series because I do enjoy the entertainment value of the movies and Netflix series.  And it occurs to me (and probably you also) that all the superheroes have this internal struggle that they go through in spite of their superpowers.  You notice that?  All of these characters all have an internal battle and as they are working towards resolving those internal struggles, they come across these villains or circumstances that engage their superpowers.  But it is striking to me how the powers just work as amplifiers to what is already in them.  So today I want to unpack our previous discussion on “developing your money mindset” and talk about “money as an amplifier.  In the Netflix series, Daredevil, he is struggling with abandonment.  And despite of his great powers and skills, the good aspects of his character won’t allow him to kill anyone while he’s using his power.

So in last’s week discussion, I challenged you to view money as just a proxy for a value transaction.  It isn’t emotional we are emotional.  It isn’t good/bad, we’re good or bad.  So then it follows that money and/or resource acts as an amplifier of what is in us.

 

#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance
#marvelcomics
#daredevil

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

The Challenges Facing Financial Advisors in the 21st Century with Special Guest Tywanna Smith

I discuss the challenges facing financial advisors in the 21st century with special guest Tywanna Smith of Athlete’s Nexus

Podcast Details:

Podcast Title:  The Challenges Facing Financial Advisors in the 21st Century with Special Guest Tywanna Smith
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

 

Questions/Issues We’ll Address on this Episode:

I discuss the challenges facing financial advisors in the 21st century with special guest Tywanna Smith of Athlete’s Nexus (on Twitter @AthletesNeXus)

  • Who is Tywanna Smith (2:25)
  • Tywanna talks about her idea behind writing  “Surviving the Lights: A Professional Athlete’s Playbook to Avoiding the Curse”.  (4:50)
  • Tywanna and I dive into her book -“…
    • we don’t exploit athletes for revenue; we prepare them for life” (6:40)
    • How many athletes really understand how to leverage their brand to set up “life after the sport” (10:10)
    • For generations, the African-American culture has instilled a “loyalty” complex in its offspring to make decisions based on emotion rather than logic. (12:45)
    • Athletes operate best with good coaching, guidance, and teaching, and they are most receptive when someone connects with a level of understanding… (16:40)
    • As an athlete, how do you build a great team around you (20:04)
    • How athletes can use their current influence (29:30)
  • How to increase the level of financial literacy among athletes (31:25)

#financialliteracy #financialplanning #financialeducation #financialadvice #athletetransition #financialadvisor

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About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

Developing Your Money Mindset: “Money as a Tool”

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur. Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Podcast Details:

Podcast Title:  Developing Your Money Mindset:  “Money as a Tool”
Podcast Series: The Maven’s Keys to Financial Contentment
The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.
(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

 

We’ve covered a lot on the first seven episodes and now it is time to start talking about “developing your money mindset”.  Today is a topic that we’ll probably unpack over the next 3 or 4 episodes for the sake of being thorough.  So we’ll start with “developing your money mindset–money as a tool”.

In the book I’m writing, I called this section “Developing Your FMO” which stands for “financial modus operandi“.  Which is Latin for “habits or behaviors”.  But the goal here is to unpack the lenses you wear when it comes to money.  A lot has been said and penned on this topic, you can just google “money mindset” or “behavioral finance/economics” and see what comes up.  In this series though, I thought I’d try my hand at it.

So let’s take a couple steps back, because how you view money is going to stem from countless INTERACTIONS, that have formed a BELIEF system which constitutes how you BEHAVE. But before that we must begin with you as a person and before that we have to talk about MONEY on its own.  One major characteristic of money is that it is neither moral or immoral.  Money can be spent however you want.  It is actually amoral.  Money is amoral and it does whatever is the intent of the person using it. This is the first key to this is understanding what the role of money is in our lives, in our economy, or the world period.

In a book I’m reading called The Ascent of Money, it covers the evolution of money and monetary systems around the world and those that have used it for good or evil.  But my takeaway is that it is just a conduit or a tool to accomplishment a certain thing. Money is just a medium of exchange for goods and services that have a particular value assigned to them.  So in developing your money mindset, look at money has as a proxy for a value transaction.  When we frame it that way, we can start to divorce our emotions that are tied to money allowing us to develop the proper mindset around it.

#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

The Art of Personal Branding with Marques Ogden

Marques and I discuss the “art of personal branding”.

Podcast Details:

Podcast Title:  The Art of Personal Branding with Marques Ogden
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

 

Questions/Issues We’ll Address on this Episode:

-Branding
-Social Media
-Marketing

-What to Include in your Digital Content Image (2:15)
-Marques top social media sites for personal branding (5:04)
-Differences in the use of social media across the age groups (7:30)
-Most important aspect of your personal brand (10:50)
-Is Twitter is optional? (13:45)
-Marques’ tricks of the trades for building followers (15:05)
-The obstacles that keep us from developing good personal brands (20:45)
-Preview for segment on personal branding for Marques’ upcoming academy (26:35)

#financialliteracy #personalbranding #marketing #socialmedia #entrepreneurship #smallbusinessowner

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Sign up for more our free newsletter with financial updates like these!

Subscribe to the podcast!

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

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Selling Ourselves Short

Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Podcast Details:

Podcast Title:  Selling Ourselves Short
Podcast Series: The Maven’s Keys to Financial Contentment
The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.
(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

 

Last week we discussed what “finding and doing what you love to do”.  After that show aired, I thought about how I should have dealt with the issue of how we “sell ourselves short” first.  So this will be a prequel of sorts.  You may not think that you sell yourself short, but if you dream less about what you want and could do, you are doing it.  This is the reason why it is so important to discuss this topic.  In Andy Andrews book The Traveler’s Gift, the main character David Ponder is taken to a warehouse where he sees the cures to diseases and inventions that would help mankind.  When he asks why these were all in this place and of no use to anyone, he was told that…

 

“the contents of this warehouse are filled with the dreams and goals of the less courageous…the place that never was”.
So this is why it is so crucial to discover whether we sell ourselves short by not pushing past mental barriers that we may have.  In order to win in life, with your money, with relationships, etc., you have to find out what is holding you back.  You have to understand the “what, why and how” of selling yourself short.  In this episode, I will add this additional layer of discovery on top of what we discussed last week in “Finding and Doing what you Love to Do.

 

1) What do we sell ourselves short on…Our Dreams
2) Why do we sell ourselves short…Our own Self-Sabotage
3) How do we sell ourselves short…By not changing our “lenses”

 

#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com