New TODAY Show Appearance: Talking Debt, Budgeting, Market Highs And Maintaining Motivation

What better way to start off the New Year than in New York with the TODAY Show?  Despite the 18 below windchill whipping through the city streets, I had a blast with Sheinelle Jones and Craig Melvin discussing the most damaging forms of debt, the top two budgeting apps, the best kinds of checking accounts, how you should respond to market highs–and lows–and how best to stay motivated to turn those financial resolutions into long-term habits!

Click HERE or on the box above to watch the segment.

3 Books To Help You Be More Civil, Memorable And Inspired in 2018

I’m a sloooow reader–so I’m never going to impress anyone with the total number of books I read in a year (other than myself!).  But I do try to immerse myself in as much reading as possible each year.

In the past, I’d try to read a lot of specifically financial books considering my vocation as a financial advisor and writer, and I confess I even suffered guilt about reading anything other than non-fiction until more recently.  But because of my conviction that personal finance is more personal than it is finance, I’ve worked to broaden my base of reading.

This year in particular, I learned a lot about people (and therefore money) through biographies, historical non-fiction and fiction, books on charity and spirituality, and an increasing number of well-written novels, in addition to a couple financial books. (Otherwise, I’ve found that the world of financial planning is so ever-changing that I get the most current information I need from articles, white papers (zzzzzzzz), blog posts, podcasts and conferences.)

Below you’ll see my top three favorite books that I completed in 2017 with short reviews, followed by a list of the remaining books I read this year and links to my Goodreads reviews:

3. Team of Rivals: The Political Genius of Abraham Lincoln

There’s not much more to say than, “Wow.” This book is a masterpiece, and it’s impossible not to leave it without concluding, again, that Lincoln was a mastermind.  His ability to be civil while strong, conciliatory while persuasive, articulate without condescension, and especially to be a friend to political foes whom he knew sought to undermine him–all at the unquestionable height of our country’s political division–seems so far from what is exhibited in our present.

Doris Kearns Goodwin is certainly among those precious few non-fiction writers who  craft a narrative out of lifeless facts that comes to life like a novel, without sacrificing any of its veracity.

To be clear, this book is neither new (it was published in 2006) nor short (944 pages–I “read” it on Audible), but it seems at no time more prescient–or necessary–than now.

Entrepreneur Shares ‘Life-Saving’ Career Change

This was given to me, because that was going to kill me,” entrepreneur Lee Janik told me.

“That” was the job of owning and running a construction company he started in Ohio in the mid-2000s.

“This” was the sacred experience of fly fishing, and ultimately building a multinational craft rod-making company.


“It’s like going to church.” That’s how Janik describes fly fishing, his passion, which nursed him through the Great Recession as his commercial real estate development and construction company hung on for dear life.  

The company survived, and ultimately thrived, but his therapeutic hobby grew into something more. At the moment, “this” has evolved into Clutch Fly Rods, the company Janik founded selling high-end fly rods that is fast becoming a disruptor in its space.

The Elephant In The Room: How The Financial Industry’s Shunning Of Emotions Fails Its Clients

I don’t think professor Richard Thaler is going to return my calls anymore. Sure, he was gracious enough to give me an interview after his most recent book, Misbehaving, a surprisingly readable history of the field of behavioral economics, was published. But now that he’s won a Nobel Prize, something tells me I’m not on the list for the celebration party.  

(Although, if that party hasn’t happened yet, professor, I humbly accept your invitation!)

But I’m still celebrating anyway, because Thaler is a hero of mine and I believe that the realm of behavioral economics–and behavioral science more broadly–can and should reframe the way we look at our interaction with money, personally and institutionally, as well as the business of financial advice.

Behavioral Economics In Action

The Elephant and the Rider

Of course, even if you’re meeting Thaler for the first time, his work likely has already played a role in your life in one or more of the following ways:

  • Historically, your 401(k) (or equivalent) retirement savings plan has been “opt-in,” meaning you proactively had to make the choice–among many others–to do what we all know is a good idea (save for the future). But our collective penchant for undervaluing that which we can’t enjoy for many years to come led most of us to default to inaction. Thanks largely to Thaler and Cass Sunstein’s observations in the book Nudge, more and more companies are moving to an “opt-out” election, automatically enrolling new employees in the plan with a modest annual contribution.  
  • Better yet, many auto-election clauses gradually increase an employee’s savings election annually. Because most receive some form of cost-of-living pay increase in concert with the auto-election bump, more people are saving more money without even feeling it!
  • Additional enhancements, like a Qualified Default Investment Alternative (QDIA), help ensure that these “invisible” contributions are automatically invested in an intelligently balanced portfolio or fund instead of the historical default, cash, which ensures a negative real rate return.  
  • Some credit card awards now automatically deposit your “points” in an investment account while some apps, like, “round up” your electronic purchases and throw the loose virtual change in a surprisingly sophisticated piggy bank.

No, you’re not likely to unknowingly pave your way to financial independence, but thanks to the work of professor Thaler and others, many are getting a great head start without making a single decision.

What is most shocking to me, however, is the lack of application–or the downright misapplication–of behavioral economics in the financial services industry.  

‘Someday Came’: How Our Vision Of The Future Shapes Our Saving In The Present

While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña coladas.

I was stopped in my tracks en route by a welcome sign announcing a new resident’s beachside home. It read: “Someday Came.”

The obvious implication is that these folks decided to act on their “Yeah, I’m gonna do that someday” daydreams.

But it raises many questions, right?

Who are these people? What’s their story, financial and otherwise? Did they hammer this sign into the sand after scrimping and saving, finally realizing their retirement dream following a lifetime of toil? Or are they the professionally mobile couple with young kids you see on HGTV’s “Caribbean Life,” who decided they’d just had enough of the rat race?

I’m glad I don’t have the answers, because the big question for the rest of us is worthy of consideration:

How do we define our “someday”? How do you define yours?

Solving for the Qualitative Deficit in Financial Planning

“The whole financial planning process is wrong,” says George Kinder, widely recognized as one of the chief educators and influencers in the financial planning profession.

But what exactly does he mean, and how does he justify this bold statement?

First, let’s separate the work of financial planning into two different elements–let’s call the first quantitative analysis and the second qualitative analysis.

Quantitative analysis is the more tangible, numerical and objective. It’s where planners tell clients what they need to do and, perhaps, how to do it. For example:

  • “Your asset allocation should be 65% in stocks and 35% in bonds.”
  • “You need $1.5 million of 20-year term life insurance.”
  • “Have your will updated and consider utilizing a pooled family trust.”

The qualitative work of financial planning is the intangible, non-numerical pursuit of uncovering a client’s more subjective values and goals, and, hopefully, attaching recommendations like those above to the client’s motivational core–their why.

If quantitative work is of the mind, qualitative is of the heart.

Qualitative planning often has been dubbed “financial life planning”–or simply “life planning.” It is defined in Michael Kay’s book, The Business of Life, as the process of:

Take More Risk In Life And Less In Investing

“I just really wish I’d taken more risk in my investment portfolio,” said no one–ever–on their deathbed.

That may seem like an odd observation, unless you consider the fact that I had the privilege of spending a couple days recently with life planning luminary George Kinder. Among other benefits, I was able to reacquaint myself with his famous three questions, elegantly designed to progressively point us toward the stuff of life that is the most important–to us.

The final question invites us to explore what benchmark life experiences we would leave unaccomplished if we only had one day left on this Earth. And as you may suspect, even in a room filled with financial planners, achieving a more aggressive portfolio posture was, perhaps, the farthest from anyone’s mind.

Meanwhile, most of the items that people did list represented experiences (not things) that, individually, were outside of their to-date unarticulated–but now evident–comfort zones.

Participants almost universally wished they’d have taken more risks in life–personally, educationally, relationally, experientially, professionally and vocationally.  

Similarly, those most meaningful experiences they had enjoyed thus far in life were the ones that pushed the boundaries of their comfort zones, expanding their personal risk tolerance.

But what about financial risk tolerance?

Adaptation Devaluation: Why A U2 Concert Is Better Than A New Couch

My favorite discovery in the field of behavioral economics confirms what we already knew deep down, even if it contradicts “common sense”–that experiences are more valuable than stuff. I recently put this finding to the test:

Concert of a Lifetime

“You’re crazy.”

Those were my wife’s words when I called her from the road, rushing to discuss what I termed “the concert of a lifetime.”

I’d just learned that living legends U2 were touring in support of the 30th anniversary of their most celebrated album, “The Joshua Tree.”  

(Photo by Andrew Chin/Getty Images)

The greatest live band of a generation playing the soundtrack of my youth from start to finish.

Andrea was on board with going to the show–she’s a big fan, too. But what invited her claim of insanity was my insistence that we take the whole family to Seattle to see the show. We live in Charleston. South Carolina.

Why Busyness Isn’t Good Business

12 Experts Share Their Thoughts

It’s old news that we’re busy and that we wear our busyness as a badge of honor. But a new study found that Americans, in particular, are actually buying it. Specifically, the study concluded that Americans who always say they’re “busy” are actually seen as more important. Unfortunately, it’s all a charade.

Busy, busy, busy

Busy, busy, busy

Numerous studies have shown that busyness isn’t actually good business, and here’s the big reason why: It makes us less productive. We’re all susceptible to it, but If I’m saying to myself (and I have), “Woo, I’m busy; really busy,” I’m likely being distracted from the most important, most productive work that I could be doing. I may feel like I’m doing more, but the net result is actually less. And it often feels like it.

But not everyone wears busyness as a status symbol. In response to the research and their own well-informed gut feelings, many are finding enjoyment in more productive work at a less busy pace. I wanted to know how these people recognize when they’re devolving into busyness and what they do to stop the downward spiral, so I asked 12 thought leaders who’ve inspired me two simple questions:

  • How do you know when you’ve gotten too busy?
  • What is a technique that you use to “unbusy” yourself?

Here’s what they had to say:

Top 5 Books To Put The ‘Personal’ Into Your Finances This New Year

Originally in ForbesBecause personal finance is more personal than it is finance, just about every step we take in our personal development aids us in financial planning, and vice versa.

top-5It is in better understanding ourselves that even the most confounding financial decisions are made simple. Therefore, it’s entirely possible for a seemingly non-financial book to have a meaningful impact on your financial life, while the reverse is also true.

Consider, then, this list of my choices for the top five (mostly) recent books that can improve your life, work and financial serenity in 2017:

5) The Whole 30: The Official 30-Day Guide To Total Health And Food Freedom is not your typical diet book. I don’t do those. But I am fascinated by various “life hacks,” small behavioral changes we can make in our diet, exercise and sleep patterns that make life more livable.