Myth: It is okay to ignore your finances.

By | Financial Psychology, Podcasts, Women and Wealth | No Comments

Anne Dickinson, Eye on Your Business

When business owners buy into the myth that it is okay to ignore your finances, their bottom line probably suffers. In this episode, Kathleen interviews Anne about how not knowing “your numbers” negatively affects your business and how more female business owners than men may suffer from this myth.

Listen and learn:

  1. Why financial knowledge is power, and how learning more about your business finances boosts confidence.
  2. How to take one small step at a time to get organized and how working with a bookkeeper can help.
  3. What it takes to be more financially savvy and how taking action reduces your stress and improves your decision-making.

Special Offer for Breaking Money Silence Podcast Listeners: 

FREE Webinar, 5 Ways to Keep More of the Money You Make on June 7, 2017, at 3:00 p.m. Eastern. Click here to learn more.

Million Dollar Message Retreat, May 26 – 28, 2017, Toronto

Anne Dickinson is the cash flow and profits optimizer. She uses her profit leaks x-ray vision to help overwhelmed business leaders take back control of their business finances, stop money from falling through the cracks, and make moves that result in more money, more time, and more freedom.

Creator of the Stop the Profit L.E.A.K.S. Formula™, Anne isn’t afraid to get her hands dirty as she works side-by-side with business leaders to identify and eliminate money leaks, ignite profits and improve cash flow and liquidity to create a strong, healthy business.

Anne has an MBA from Babson College, worked in the Defense and High Tech industries, packaged and sold assets, dissected and improved operations, set up Treasury departments, and owned successful entrepreneurial ventures.

Let Go of Stereotypes When Advising Women

By | Advisor Education, Financial Psychology | No Comments

Let go of stereotypes and communicate with clients as unique individuals. (Click to Tweet)

While there are gender differences in how men and women communicate and what they want from their advisors, make sure you avoid myths about women and money. Falsehoods such as all women are risk averse, or all men are interested in investments do more harm than good.  To avoid falling into this trap, notice and embrace your clients’ strengths and celebrate each and every person for what they uniquely bring to the table.

Watch this short video from the Investment News Retirement Summit to learn more.

Don’t forget to subscribe to my Youtube channel to receive the latest video each week.

Myth: Planning is unnecessary because you only live once.

By | Financial Psychology, Podcasts | No Comments

financial planning unncesessary

Kelly Shikany, CFP® CDFA™, Lakeside Wealth Management

In this episode, Kathleen talks to Kelly about the myth, “Planning is unnecessary because you only live once.” When people buy into this myth they often wait too long to seek the help of an advisor. Kelly busts this myth open and discusses the importance of financially planning for the future so you can enjoy today.

Listen and discover:

  • How planning for the future now gives you many more choices when it comes to how you want to live in retirement.
  • Why working with an advisor can help you define your core values so you can build a retirement plan that honors these ideals.
  • That you are never too young to plan for your future because you only live once!

Guest:

Kelly Shikany, CFP® is a member of the Financial Planning Association serving clients at Lakeside Wealth Management in Chesterton, IN, and the surrounding communities. Kelly has 20 years of investment management experience, is a strong advocate for women investors who may be managing life’s milestones, and a supporter of gender equality since 7th grade. She volunteers on the CFP® Boards Pilot program, Each One Reach Three,” mentors women financial advisors and hosts a quarterly gathering for them to enhance financial confidence and engagement. You can contact Kelly at kellys@lakesidewealth.com, or visit her website at http://www.lakesidewealth.com.

To sign up for the Breaking Money Silence Podcast, click here.

 

Be Direct and Ask About Your Client’s Feelings

By | Couples and Money | No Comments

Emotionally savvy financial advisors know how to engage female clients in a meaningful way by asking direct questions. (Click to Tweet)

Advising clients around money is bound to bring up feelings from time to time. Instead of skipping over any emotional data in meetings, dive right in and ask direct questions. Wonder about what a couple may be coping with, or a client may be feeling about an upcoming decision. Facilitate a discussion about the options, and show your clients you care about more than making a transaction.

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Financial Partners Until Death Do You Part

By | Couples and Money | No Comments

This blog post was originally published on SALT, April 19, 2017

My nephew Ryan is marrying his girlfriend, Whitney, the end of this month. As an aunt, I am excited to witness this young couple make a long-term commitment to each other. I just love a wedding!

But as a money and emotions expert, I know that it is important for any engaged couple to realize that marriage is a financial commitment as well. Unfortunately, one of the biggest contributors to divorce is financial conflict.

Because I love Ryan, I plan on having a little chat with him before his wedding day. Here are some highlights of what I will say. 

Work As A Team 

Too many couples fight about finances and work against each other when it comes to spending and saving decisions. My husband and I have been married for 20 years. One thing we have done well is work as a financial team, in both good times and bad. Any young couple should strive to do the same. 

Celebrate Differences 

It is unrealistic to expect that you will always agree with each other. My husband and I come from different money histories, and we needed to spend time understanding each other’s money mindsets.

Celebrate these differences, and capitalize on each of your strengths. You will be emotionally and financially stronger as a result. 

Go On Money Dates 

My husband and I go on regular money dates. During these dates, we talk about money, ask each other curious questions about our respective financial histories and mindsets, and discuss how to proactively plan for our future together.

If you’re engaged, it may seem like you have plenty of years to talk about money. But do yourself a favor and discuss money matters now. Trust me—the last 20 years passed very quickly!

What money advice would you give to an about-to-be-married couple? (Click to Tweet)

Client Communication Tips for Advising Women

By | Advisor Education, Financial Psychology, Women and Wealth | No Comments

The key to good client communication is emotionally connecting with women and their partners (Click to Tweet). In general, women want advisors who notice their thoughts and validate their feelings. This is especially true when you are discussing retirement, as it is an emotional transition. Here are a few key tips for leaning into the human side of finance when discussing retirement with women.

  • Notice the language a client is using. Ask yourself, “Is she using thinking words or feeling words?”
  • Match the types of words your client is using to express herself.
  • Notice the tone of the conversation and wonder about what she might be feelings about retirement.

Watch this video and discover the power of good questions.

Don’t forget to subscribe to my Youtube channel to receive the latest video each week.

Myth: Couples need to be equally involved in managing money.

By | Couples and Money, Podcasts | No Comments

couples managing money

Julie Littlechild, Founder, Absolute Engagement

The idea that couples don’t need to be equally involved in managing money sounds contrary to popular financial planning mindsets. Kathleen and Julie discuss what happens when both individuals in a couple are not equally involved in finances, how to handle expectations, and improve effective communications around money. Listeners walk away with tips on how to reframe the money conversation, decide who is better equipped to take the lead on execution vs. vision for finances, and how advisors can help draw both individuals into the discussion.

Julie Littlechild is a speaker, writer, and researcher. Her firm, Absolute Engagement, conducts on-going research into the drivers of personal, client and team engagement.

Julie has worked with and studied top performing financial advisors, their clients and their teams for twenty years. She is a recognized expert on driving deeper engagement and growth, the author of a popular blog. Her book, The Pursuit of Absolute Engagement, was released in January 2107. For more information, contact Julie at jlittlechild@absoluteengagement.com. 

Special Announcement for Breaking Money Silence Podcast Listeners: 

Julie’s first book, The Pursuit of Absolute Engagement was released in January 2017. More information is available at www.absoluteengagement.com/book where listeners can download the first chapter free.

Women, Finance, and Feelings

By | Advisor Education, Financial Psychology | No Comments

Feelings provide advisors with wonderful data. However, many advisors avoid noticing emotions in financial meetings. They switch into problem-solving mode to reduce her worries. This can leave a client feeling unheard and misunderstood. Instead of problem solving, take the time to understand where the feelings are coming from, what triggers them, and what makes these feelings dissipate. This fosters trust and helps your client clarify their financial goals.

When a female investor expresses fear, how do you help them through that feeling? (Click to Tweet)

In this video, I share a story about being stuck on a cliff and how fear helped me clarify my choices and motivated me to act.

Don’t forget to subscribe to my Youtube channel to receive the latest video each week.

Don’t Overlook Your Male Clients

By | Advisor Education | No Comments

As an expert in women and wealth, I have grown tired of hearing how men are financial savvy and women are not. While some research supports the notion that some female clients are less confident when making financial decisions than their male counterparts, it cannot be inferred from the data that this makes men wiser. According to the 2014 report, “Harnessing the Power of the Purse,” women in the United States are as financially literate as men.

What happens to male clients when advisors assume based on their gender that they are knowledgeable and skilled in money management and investing? They get overlooked. Ironic as I usually use that word to describe how the industry treats women clients. However, men have their own challenges when it comes to money and it is time to pay attention to them too.

Here are a few things to consider when working with men:

  1. Men are socialized to act “as if.” They ask fewer questions in advisory meetings and often give the appearance of being knowledgeable. For some, it is a way to hide their vulnerability and not look weak. How do you know which male clients comprehend your recommendations versus placate you by acting “as if?” You don’t unless you ask. With a male client, it may take a few more questions to get him to open up but understanding what he really knows as opposed to what he is pretending to know is an important part of your job.
  1. Overconfidence is just as problematic as a lack of confidence. The classic behavioral research study, “Boys Will Be Boys:  Gender, Overconfidence and Common Stock Investment” by Barber and Odean found that more men than women demonstrate overconfidence in investing. This contributes to men chasing hot stock tips, attempting to beat the market and ultimately, having lower long-term returns than female investors. As an advisor, a cocky client can be a source of frustration. But it also highlights how these male clients really need a trusted and objective advisor in their corner, similarly to a less than confident women investor. It is the other side of the coin and comes down to the fact that human beings make bad money decisions when emotions call the shots. 
  1. Men need financial education too. The truth literacy is not determined by a client’s sex. Knowledgeable clients often had parents who overtly taught them about personal finance and investing or had an interest that led them to learn more about money on their own or through formal education. To assume that women are not good with numbers as men is a trap that can be easily avoided. Ask questions such as:

●  “On a scale of 1 to 5, 5 being the highest, how would you rate your financial knowledge, skills, and insight?”
●  “What would it take to increase that number one basis point?” and
●  “How can I help you do that in my role as your advisor?”

Expect women to rate themselves too low and men to rate themselves too high. Then work with each client to develop a personalized strategy for improving literacy and decision-making skills.

The key to being a good client-centric advisor is to understand key gender differences, avoid overly stereotyping your clients based on this research and work diligently to understand all your clients as unique individuals. And whatever you do, don’t forget the men!

What to do when you are told she is not interested in finance

By | Advisor Education, Financial Psychology | No Comments

How do you handle it when a client tells you his wife is not interested in finances or meeting with you? Many advisors take the client at his word. However, it is important to probe a little deeper. “She is not interested” can mean many things so take the time to ask curious questions to learn more. By understanding the “no” you are doing what is in the best interest of the client and the couple.

To learn more, watch this brief video.

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