WOMEN AND WEALTH

In recent years, we’ve seen more and more financial professionals market themselves as wealth advisors for women. However, at Falcon Wealth Advisors, we don’t believe women are a niche market. We want to treat all clients as humans and we believe each person has a financial plan that’s unique to them. Cory joined me on Upticks to discuss four tips that are relevant to women and all investors. Be sure to tune into the episode via podcast or video to hear our entire conversation.

Jake: Cory, to start us off, what are your thoughts on advisors who only work with specific portions of the population? Our team aims to treat all clients as people and we’re fiduciaries who act in our clients’ best interests—regardless of their gender.

Cory: That’s correct. With more women in the workforce than 50 years ago, of course more women have accumulated wealth. But I think it’s a bit strange for an advisor to say they focus only on working with women.

Jake: Exactly. Money is gender neutral. The first tip we should discuss is financial literacy. It pays to educate yourself on financial matters, and unfortunately our schools don’t do a great job of that—even on basic concepts like compound interest and credit cards. What are some ways a person can improve their financial literacy?

Cory: I would invite them to subscribe to Upticks. Our entire goal for this show is to offer financial education so that people can feel more comfortable with financial matters.

Listen to the full episode!

Jake: Well said! There’s obviously a lot of information on the internet. I suggest focusing on consuming content from sources you’ve heard of and that have been around for a long time. I would steer clear of sources that are trying to alarm you into taking action or trying to dangle a carrot in front of you. If you’re feeling fear or greed while consuming content, I would pause and ask yourself if this source is trying to manipulate those feelings.

If you want to pursue more advanced financial content, I recommend Barron’s, a weekly publication focusing on the stock market. The Wall Street Journal also offers some insightful articles. I would avoid TV shows that seem to thrive on entertainment and hyperbole. With that said, some CNBC and Bloomberg shows offer decent, level-headed perspectives.

Cory: I would recommend two books: “The Psychology of Money” and “Simple Wealth, Inevitable Wealth.” These are a good place to start and build fundamental knowledge. I read them years ago and I think they stand the test of time.

Jake: Another book is “I Will Teach You to be Rich,” which offers some straightforward guidance for people who want to better understand saving and investing.

Cory: One final resource: check out The Financial Diet on YouTube.

Jake: That’s a good one. I would be careful consuming content from people like Dave Ramsey or Suze Orman. They’re not horrible, and their opinions aren’t necessarily wrong, but they’re so quick to give advice. I think financial advice is too complicated and personal to be discussed in a short amount of time on a TV or radio show. With all the resources we’ve discussed, the goal should be to educate yourself on the fundamentals, not to receive specific, actionable advice.

What’s the second tip we want to discuss today?

Cory: To consolidate and automate. Simple is often a good goal. At Falcon Wealth Advisors, we can help you consolidate your investments in one place so you know exactly where you stand. We also are big proponents of automating savings and investing when possible. As we have discussed, behavior drives so much of the market, and automation can help people establish good habits and stay on track.

Jake: And when we talk about automation, we’re discussing automating savings. I’m not a huge fan of automating bill pay—it can get a little tricky and opens up opportunities for others to make mistakes that affect your finances. But we believe in automating savings so that you don’t forget to do it. By automating saving, you can indeed establish a good money habit.

At Falcon Wealth Advisors, we use a financial planning software called eMoney that enables clients to link all of their investment and bank accounts, so that you can see your entire financial life on one dashboard. Checking your account balances regularly helps protect you from fraud or bank mistakes. I think everyone should check their accounts a few times a week and tools like eMoney make this easier.

Our third tip is to be open with your partner and private with strangers. In my opinion, money shouldn’t be off limits in a relationship—but it shouldn’t be your neighbor’s business, either. If you share expenses with someone, you should share your bookkeeping with them. It makes sense for a couple to know about how much they have, how much they make and how much they’re spending. Money is a top cause of divorce, but it doesn’t need to be a taboo topic in a relationship. Being transparent with each other should lead to a healthier relationship.

On the flip side, your neighbor, friend, or even someone you’re dating doesn’t need to know details of your financial plan. The fewer people you share that information with, the less chance you have of being taken advantage of.

Cory: Why do you think some people fail to have open and transparent conversations with their partners about money?

Jake: I think it can be a sore subject because of previous negative experiences—perhaps they know of a family member who was impacted by a financial situation, leading to a lifelong aversion to discussing money. This cloud sometimes is passed from generation to generation, but it can be broken.

Another reason: some people who weren’t taught about money early or didn’t grow up with much are insecure about it. This could lead to them equating their self worth with their net worth and avoiding the topic altogether. I think this is why you see a lot of people in debt. They would rather ignore reality than face it.

I hope our clients know they have a trusted contact in Falcon Wealth Advisors. Our conversations are private and we don’t talk down to clients, regardless of their current financial literacy level. We’re here to be honest and helpful. If your retirement savings aren’t quite where they should be, we will tell you and help get you where you need to be. Conversely, one of the most joyful conversations we get to have is when we tell a new client they have enough saved to retire, if they choose to do so. As readers have heard me say before, we aim to customize our advice and standardize our service.

Cory: That’s well said. It mystifies me a bit how reluctant some people are to talk about money, but there are indeed so many insecurities on the topic.

Jake: And in my experience, this is also gender neutral. Women aren’t any more insecure about money than men. I met with a new male potential client recently who had some insecurities around money and how much he’s saved. I’m glad he felt comfortable enough with me to have an honest conversation and I know our team is excited to help him meet his financial goals.

Finally, what’s our fourth tip, Cory?

Cory: Choose a fiduciary wealth advisor like Falcon Wealth Advisors that listens to you and takes a team approach.

Jake: Yes, a lot of advisors are condescending toward their clients and employees. I get frustrated when a prospective client tells me their advisor fails to return their calls. I’d like to think our team is relatable, normal and easy to talk to. We’re here to listen, give advice, crunch the numbers and help our clients.

Do you feel like your advisor fails to listen to you? Or talks down to you? If the answer is yes to either of these questions, contact Falcon Wealth Advisors today for a second opinion. You deserve an empathetic team of fiduciaries who will take the time to listen to you and understand your unique situation and goals.

Ready to talk? You can contact our team at [email protected].

Clients choose to work with us to enhance their financial literacy and explain exactly what their financial plan means to them.

Hightower Advisors, LLC is an SEC registered investment adviser. Securities are offered through Hightower Securities, LLC member FINRA and SIPC. Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.