When I was young and in the
process of changing jobs, whenever I considered making a speculative investment
or wanted to buy something frivolous, my father would say to me “you have to
pay to learn!” It has taken me many years to figure out what he meant by that.
We get asked all the time: What is the best way to teach kids about money? The answer to this question is: slowly – because it takes a long time to get it right. It is different for each family and for each child. We observe that some kids have the embedded sense of how to make money, save it, keep track of it, and how to spend it. Others think that money “grows on trees” and that there is an endless supply of it. Everyone is different.
The financial field is evolving a rapid pace, accelerated by new fin-tech innovations and low-cost investment solutions. Robo-advisors are taking share from human advisors, and people are ditching traditional money managers in favor of passive index investing. It begs the question – why even have a financial advisor anymore? Well, the reality is that while these new innovations certainly do have a place in the investment world, a qualified investment advisor still serves a critical role. In fact, with all the changes occurring in the world, we would argue that it has never been more important to work with a future-ready advisor than right now.
“Those who stay will be champions…” Those are the great words from legendary Michigan Football coach Bo Schembechler. As a young man, I heard those words a lot. I was a distance runner at the University Michigan, competing on the track and cross-country teams. Back then, it was always in the context of working hard, persevering, and outlasting your competition. However, as I graduated from college and entered the real world, those words took on new meaning. It wasn’t always the most talented athlete or the smartest kid in class that had the most success, it was the one who worked the hardest and was willing to make sacrifices when others weren’t.
When I started my financial career, I was in awe of the people who managed money professionally. I thought that these people had the secret sauce to creating wealth. I wanted to know what set them apart and learn what made them so special! I craved their knowledge – and I wanted it fast! I was impressed with these high achievers and their prestigious backgrounds. Many came from the best colleges and had advanced degrees in engineering, mathematics and finance. Some had MBA’s and other impressive designations like CFA’s and PhD’s. They also had histories of success, meaning that they had done something very special in previous years that set them apart. During the typical work day, it was not unusual to be working with an Ivy League quarterback, a professional hockey player or a world famous tennis player. Some had extraordinary resumes such as running a well-known family business, designing a computer system, doing high level medical research, or even working as a rock band promoter – I mean you’re talking about some serious cocktail party bragging here!