Manisha Thakor | MoneyZen | Women's Financial Wellbeing View RSS

5 Lessons You Can Learn About Money… From Nutrition! 15 May 2017 2:00 PM (8 years ago)

I was tired. And hungry. So I stopped by the sandwich bar at my local boutique grocery store for a turkey, bacon & brie panini sandwich. But then I glanced at the calories—980! For a SANDWICH. Eeeek! I passed.
As with my unassuming sandwich, there is a lot that nutrition can teach you about money—starting with the importance of reading labels.
Unfortunately, when it comes to our money there are not always easy-to-read calorie counters to tell you the consequences of your actions.
Being clear about the nutritional density and caloric costs of your financial intake is vital. When making financial decisions, you want to be asking yourself questions such as:

• “Are these really the right financial products for me?”
• “Just how much is this going to cost me?”
• “What am I getting back in return?”

For these are the questions that will help you pick choices that best suit your personal financial metabolism and taste.
That’s why I’m so excited to share the following video with you. Enlightened Wealth Management founder & CEO, Christopher Girbes-Pierce recently wrote an article for MindBodyGreen called “What Nutrition Can Teach You About Money.” In this lively interview we will discuss these powerful nutrition / finance analogies:

1. Read labels
2. Don’t ignore the evidence
3. Don’t assume familiar means safe & healthy
4. Don’t believe if you could just lose weight (or make more money) you’d be happier
5. Create goals & make a plan, monitor your progress, hire a coach

The video runs 35 minutes and is genuinely fun watch—CLICK HERE to watch & enjoy!

Does Your Workday Make You Feel Like This? 20 Apr 2017 2:14 PM (8 years ago)

After complaining about feeling like a “Type A busy bee” after an extra long workday, a dear friend sent me this cute video.
It was a loving nudge to take myself less seriously and add more laughter to my day. #messagereceived
Do you ever feel like your inner busy bee is just going haywire? That your work + life are playing tug-of-war instead of fitting together nicely?
If so, you won’t want to miss today’s podcast with Cali Yost. Cali is the founder and CEO of the Flex+Strategy Group/Work+Life Fit, Inc.
An internationally recognized workplace expert, Cali has helped hundreds of organizations make flexible work part of their culture and business strategy. She has also shown thousands of individuals how to use that flexibility to take control of their work+life fit and find success, on and off the job.
In this episode you will learn:

• Why “work/life balance” is a myth & what you should focus on instead
• How to use the “tweak it” strategy to bring you closer to your ideal life
• How personal digital policy can save you from drowning in your devices
• Why flexibility at work actually enhances performance
• The secrets of successful remote employees – and what all workers can learn from them

“It’s not about balance. It’s about how to fit work and life together so that everybody can contribute in their own unique way as realities change.” –Cali Yost
CLICK to Listen & Learn: Find Your “Work+Life Fit” with Cali Yost

*** Are you coming to the Financial Cleanse? ***

In early May, I’ll be running a free (surprisingly refreshing!) 5-day “financial cleanse” to help you detox from harmful beliefs and attitudes about money.
CLICK HERE to learn more about the cleanse and request your invitation.
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"What Is Enough?" – with Dr. Kate Levinson 8 Apr 2017 7:52 PM (8 years ago)

Greetings!  On the 10th and 20th of each month you will receive a short email from me. Some will link to podcasts. Others to video interviews. All will explore the intersection of money, meaning & life. Got a topic, you’d like me to discuss?  Send me an email (Manisha<at>MoneyZen.com) and tell me about it. Warmly, Manisha
PS: In early May I’ll be running a free (& shockingly effective!) 5-day “financial cleanse”… CLICK HERE if you want to be invited to the party.
• • • • • • •

I don’t want to end up poor, old, and alone.
This fear is one I hear frequently in my financial work with women. In our modern society where we can easily become isolated from family, friends, and heck, even ourselves, it is also an understandable one.
At the core of this fear is the question of “Will I have Enough?”
That’s the subject of today’s podcast with Dr. Kate Levinson, a licensed Marriage and Family Therapist with a PhD in Clinical Psychology. Kate works with clients, couples and groups with a wide range of life and financial issues, in her private practice in San Rafael and Point Reyes Station, CA. Kate is also the author of Emotional Currency: A Woman’s Guide to Building a Healthy Relationship with Money.

In this episode you will learn:

• Why “Enough” is such a difficult concept to get our heads around
• What can we do individually to help clarify our own definitions of “Enough”
• How we form our financial identities
• How couples that have different definitions of “Enough” can create a harmonious financial environment in which to live and blossom together
• Best practices that listeners can use to guide their children to form authentic definitions of “Enough”
“Enough… is a personal accounting of both how much we have (the actual dollars and cents) and all the things that make up a rich life for us… I think about money supporting our living as fully as we can given whatever we have… it’s a really elusive topic that many of us don’t even look at because it’s so hard to get a handle on.”
– Dr. Kate Levinson
 

Talking Money With Your Honey: 5 Ways to Get Financially Intimate 10 Feb 2014 12:19 AM (11 years ago)

This February, consider a new approach to intimacy with your loved one.  As a female financial advisor focused on female clients, I’ve become very clear-eyed about how important the role of money — and the ritual of talking about money — can be in relationships.

While divorce rates are declining, money’s influence on divorce is growing ever larger. Research suggests that as our level of consumer debt has risen, so has our squabbling about money. Some research cites money fights as the top cause of divorce.

So this Valentine’s month, keep Cupid’s aim true and invest in your relationship by exploring these five financial facts; then pop the champagne!

Your credit score.  This three-digit number won’t tell you everything about your honey — life’s upheavals can force a credit misstep from even the most financially responsible people — but it’s a logical starting place. ‘700-plus credit’ may not sound sexy, but it does indicate your sweetie places a premium on making timely payments and low overall debt ceilings. (The average FICO score for approved mortgage borrowers was 734 in August 2013.)

Demands on your cash (present and future).  While it takes just two to tango, the party can grow larger pretty darn fast!  From children to dependent elderly parents to charitable giving and clothing/entertainment budgets, expect many demands on your income, and his.  Illustrating your respective priorities can help stave off future disagreements and disappointments. (Oh, and those kids? A USDA study projects they’ll cost just north of $300,000, each, adjusted for inflation.)

Your income. Yes, some folks get married without ever knowing how much their spouse earns.  It’s not to say that you can’t keep your money separate—many happy couples do—but if you are going to live together, a full disclosure of earnings, retirement accounts, and other assets is in order.   This clearly isn’t a first (or a fifth) date topic. However, if you think you’ve found ‘the one’, this is data you absolutely need before committing to a lifetime together.  (Take bonus points for calculating the earning potential in your chosen fields.)

Your financial personality. Are you a saver or a spender? Turns out financial opposites often attract and, sadly, often experience unhappy marriages. But it’s not a fait accompli. When you’re willing to talk about—and perhaps compromise—your spending goals, you can balance your respective financial needs. Be aware, though, that men and women can see basic facts differently. One wealth management study found that 73 percent of women said they were jointly responsible for finances with their partners. Men? Only 45 percent said money was an equal concern.

The age at which you plan to retire. If you have no idea how long you expect to work, it’s time to grapple with this question; it will have tremendous impact on your savings rates, major purchases, where you send your children to school and decide to live. If you’re determined to stop working early, you’re probably willing to bypass most extravagances along the way. But how will that sit with your beloved?

You may believe these topics will ruin the bliss of romance, but I think you’ll be pleasantly surprised. Money talks may not be romantic, but honesty and agreement build trust—and THAT preserves Cupid’s promise.

How Fit Are Your Finances? 13 Jan 2014 12:00 AM (11 years ago)

“So how are those 2014 financial resolutions going?” If you find that question cringe-inducing, trust me: you are not alone. And you may be over-reacting. As a financial advisor, I can assure you it’s still plenty early for you to turn your good financial intentions into actionable steps and repeatable systems.

All behavior change (weight loss, positive attitudes, money management, etc.) involves creating new, healthier neuro-pathways step-by-step. I see many parallels between increasing your physical well-being and your financial well-being. Appointments with an internist and dietitian serve to evaluate your physical condition and daily habits. Similarly, the 5-point financial blueprint presented below will provide a comprehensive initial overview of your financial strengths and opportunities for improvement.

Remember, the purpose here is not fear-mongering. It is simply to deepen your awareness of what your money can do for you when it’s well managed.

Earning & spending. This is your financial diet: calories in and out. Track your spending — all of it — for a month (or a week at least). You might be amazed to discover how many ‘calories’ go missing (in this case, expended rather than ingested). Use the old fashion paper-and-pencil method (like me) or an online calculator from Mint, Moven or Spendee. This is the core of your financial health. You are what you eat—and earn, and spend.

Saving. Monitoring savings is like a regular check-up; it should include age-appropriate tests that gauge how well critical systems are working (and are funded). Emergency fund: six months of savings? 401(k): contribution north of 10%? Gross income saved: approaching 20%? If you are not quite there (or nowhere near), yet earning a living wage, now’s the time to ask if common savings myths are holding you back. (Most are variations on “I’ll save more when I make more.”)  The fact is, even 10 extra dollars saved a week adds up to some real money over time.

Debt management. Compare this step to maintaining your ideal weight. Kudos if you’re free of extra pounds (or money owed): you’re beating the trend. The New York Fed reported that U.S. household debt crept up again in Q3 2013 (student loans, for example, topped $1 trillion). Remember: adding an extra $50 or $100 to your minimum monthly payment can shave off years of payback and thousands in interest. One session with a debt management calculator should encourage you to funnel a raise or extra revenue stream into this inverse savings account.

Investing. It’s an exercise program tailored towards longevity and good health. Toned muscles fight the atrophy of aging; money is invested to fight and overcome the corrosive power of inflation. Do you know your current asset allocation, fees, and last year’s portfolio performance? Is it time to rebalance?   These are the essential questions every investor should ask and answer.

Insurance. This is the financial equivalent of preventative medicine, and it doesn’t stop with health and life insurance. Your chances of needing long-term disability insurance, for example, probably are greater than you expect.  Your financial assessment should evaluate your deductibles, whether you should take out an umbrella policy to lower premiums and if you qualify for multi-policy or good driver discounts.

So invest in your financial-wellbeing. This week, take a few hours to run your numbers and ring in a healthy—and wealthier—2014.

Are You Empowering – or Enabling – Your Adult Children? 23 Dec 2013 12:00 AM (11 years ago)

Speaking about financial literacy at a recent women’s conference, I received energetic applause when I argued it wasn’t healthy to give kids everything they asked for. I specified this also goes for adult children boomeranging back into their parents’ lives; the cheers became even louder.

I realize it’s terribly difficult to be rational about the people we love the most. And let’s be honest: when it comes to parenting, the message we often get (and give) is “more is more and less is less.”

But is it possible to give too much financial support to children?

To minimize the understandable emotional impact, let’s take the focus off our love bundles for a minute. What does that financial assistance actually cost… parents?

Quite a lot, it turns out. A U.S. Trust survey of wealthy Americans (net worth $3 million or more) found that 56% have given “substantial” financial assistance to adult children. Importantly — here’s a stat that makes financial advisors like me wave red flags — 69% had not factored that support into any existing financial plan.

Alas, ongoing child support can lead to major financial consequences. In an Ameriprise study on retirement derailment, 90% of respondents reported at least one major event had stalled their retirement savings progress. Yes, healthcare and job loss were common derailers.  But for almost one in four (23%), the ‘event’ was supporting grown children — or even grandchildren.

It has been widely reported that the last recession and subsequent sluggish recovery were especially brutal for Millenials; their unemployment rate topped 13% in January, according to the Bureau of Labor Statistics.

The sleeper story is the subsequent impact all that joblessness has had on parents of Millenials. In a survey conducted by the National Endowment for Financial Education, 26% of parents helping their kids had taken on additional debt in the effort. Many were addressing immediate hardship, but 37% stated they gave because they didn’t want their kids’ lives to be as hard as theirs had been.

Could those protective instincts backfire?

Consider this: 35% of the Ameriprise study parents said their kids hadn’t mastered even the basics of financial responsibility. Their kids were also polled, and 56% of them said their parents had never talked about budgeting or saving. Just 11% of surveyed adult children said they’d been advised to “expect the unexpected.”

Most parents would help with medical treatment or staving off a foreclosure. Should they also step in to cover the rent? To wipe out early credit card debt? How about the delinquent cell phone bill?

Sadly, there’s no algorithm to provide clear-cut answers to those questions. If you’re considering financial aid to an adult child, perhaps the best question to ask is: “will this money empower my child – or enable them?”

One serious question may not be enough to resolve the issue for you. But that sort of cleared-eyed inquiry is essential to good financial sense and responsibility.  And if you involve your kids in your thought process, the experience may be more valuable to them than any check you write.

How to Increase Your Retirement Confidence 9 Dec 2013 12:00 AM (11 years ago)

How are we Americans collectively feeling about our retirement prospects? Survey says (and most financial advisors would concur), not so great. Consider this comparative data from an annual study by the Employee Benefit Research Institute:

• In 2007, the EBRI study found that 27% of wage earners felt “very confident” their retirement plans were on track. Another 43% felt at least “somewhat confident” they were making their desired progress.

• By 2013, those numbers had dropped to 13% and 38%, respectively.

Importantly, in 2013 a whopping 28% felt “not at all confident” that they would have enough money to retire, up from a mere 10% who gave that gloomy assessment in 2007. Ouch.

What’s the key to an investor’s confidence?

The number “$250,000” provides one indication. That’s the amount in long-term savings quoted by a 2012 Wells Fargo Retirement Survey as a clear dividing point on the confidence front. 88% of those surveyed with more than $250,000 in savings felt confident they were on track to retire. Only 57% of workers below that mark believed they’d enjoy a secure retirement.

Importantly, 61% of those with $250,000 in assets earned $150,000 – or less – a year.

Point being, this study suggests financial confidence doesn’t stem from outrageous compensation or blind luck. Rather, confident responders were methodical, disciplined and big on planning, according to the leaders of the study. Those with savings above $250,000 contributed a median 12% to their 401(k)s; below that, it was a median 7%.

Unfortunately, not enough of us are placing serious emphasis on retirement planning. In a recent survey by Aegon, employees ranked retirement saving plans lower on the perk desirability scale than flexibility, vacation and compensation. In other words, we’d rather bargain for today’s quality of life than tomorrow’s security.

Next question: how do those “confident” folks know $250,000 (or more) in long-term retirement savings is enough?

Likely, they have explored the relationship between their desired level of spending in retirement and their current level of savings, relative to their current age. If you haven’t used a retirement calculator before, a great starter is Choose To Save’s “BallPark Estimator.” It takes less than 15 minutes to complete and will give you a solid starting point for how much to target in ultimate retirement savings. After doing this exercise, you may be surprised how much more calm and in control a few hard numbers make you feel!

Alternatively, the chart below, from Fidelity Investments, gives a rough starting point for how much a person should have in targeted savings at different stages of her working lifetime. Find your current age to determine your target savings, as a multiple of current earnings:

If a review of this chart indicates you’re behind schedule in your retirement savings, don’t despair. Get motivated instead. Look over your current levels of saving and spending to see where rejiggering is possible. By identifying a concrete retirement savings target and then taking small daily steps towards it, your confidence can grow commensurately with your increased savings.

Five Fab Finance Books to Brighten the 2013 Holidays 24 Nov 2013 8:00 PM (11 years ago)

Looking for a gift that will keep on giving?
With the year wrapping up and the gift-wrapping set to begin, here are some personal finance books for the special people in your life. Young or not-so young, wealthy or struggling, happy or not quite so, there’s something for everyone here.

The Investment Answer, by Daniel Goldie and Gordon Murray (Business Plus, 2011)

The product of a forward-thinking financial advisor and a former Wall Street honcho, this book is remarkable for the intersection of its authors’ perspectives. Dan Goldie is an investor ‘outsider’, bucking the conventional Wall Street wisdom with his focus on a passive investment approach. Gordon Murray was a Goldman Sachs alumnus who, after 25 years playing for the big boys, retired and realized he had no idea how to invest his own money. Murray sought out Goldie and it changed his life. This book, called ‘a dying banker’s last instructions’ by the New York Times (Murray passed away from a brain tumor shortly after the book’s publication) is filled with compelling advice from a man who saw both sides of the street and knew where the dark shadows lurked.

The Behavior Gap, by Carl Richards (Portfolio Hardcover, 2012)

The inimitable ‘Napkin Guy’, Carl Richards doesn’t just like to scribble investment concepts on squares of cloth with a sharpie. He has an uncanny knack for distilling a large truth about irrationality (which, left unchecked, almost always trumps rationality) into diagrams everyone can understand. This is his first book, and each page could be reprinted and pinned up around your house. If he can’t manage to crystallize one irrational aspect of your relationship with money, I’ll eat your New Year’s tinfoil hat.

Money, A Love Story, by Kate Northrup (Hay House, 2013): 

“You are enough. You are worth it.” This is one of Kate’s go-to phrases, and it sums up many of her observations about self-worth and its direct tie to financial wellbeing. Through self-denial, waiting for a financial savior or just rejecting help in favor of prolonged ignorance we can neglect ourselves, and the effect that neglect has on our finances is real. The book’s many exercises will help you get out of debt and make use of your most precious asset: time. Before you think about asset allocation and portfolios, Kate’s insights will help you approach money and wealth from a position of strength.

Can I Retire? By Mike Piper (Simple Subjects, LLC, 2013)

A slim volume (122 pages) this is a no fuss, no muss accounting of retirement and your goals. Mike’s pragmatic approach and long-view perspective are ideal for Millenials who, he often notes, are quite conservative in their approach to investing, perhaps too much so. A terrific primer for anyone, this might be just the ticket for the loved one in your life who has the tools to learn investing but hasn’t yet started. But don’t stop there – read it yourself, no matter what your age. This has become my go-to recommendation for anyone, of any age, who has ever asked, “Can I retire?”

On My Own Two Feet: a modern girl’s guide to personal finance, by Manisha Thakor and Sharon Kedar (Adams Business, 2013, 2^nd edition)

‘Tis the season for. . . self-promotion! All kidding aside, I’m very proud of this second edition of my first book, updated for the post-Lehman world. I wouldn’t suggest it for your gift lists if I wasn’t convinced of its value. Give this to your daughter, niece or protégé who has the smarts and the drive but may still be lacking the financial savvy required to make the most of money in a tough, new world. If you’re still searching for answers, heck, give it to yourself: you have the right to understand money and make it work for you!

Do You Need a Financial Planner or an Investment Manager? 11 Nov 2013 12:00 AM (11 years ago)

If the terms “financial planner” and “investment manager” seem interchangeable to you, you’re not alone. Many people — even financial professionals — have a hard time differentiating. To truly maximize your financial well being, it’s important to understand the difference.

Confusion is common because the terms don’t just describe job titles; they also refer to distinct parts of an integrated financial process: financial planning and investment management.

Think about a house. When you build from scratch, you need an architect (who creates a detailed blueprint) and a builder (who executes in accordance with the plans). While their work is intimately connected, the architect and builder are attending to very different – yet equally important – parts of the ”dream home” process.

When you build your financial house, “financial planning” is the process of architecting a vision of your future. During this process your financial professional will ask (and help you answer) essential questions, such as:

• Am I currently saving enough to meet my retirement goals?
• How much house – or car – can I afford given my income and assets?
• When should I start taking Social Security?

When you engage in “investment management,” you build on that financial plan by choosing the specific investments with which you’ll construct your portfolio. Investment management involves:

• Selecting investments for purchase in areas such as the equity and/or fixed income markets
• Monitoring and rebalancing assets, ideally in accordance with a written investment policy statement
• Tax loss harvesting where appropriate

When it comes to your dream home, you can find one organization that will both craft the architectural plan and build your house –or you can decouple the process. Similarly, when it comes to your ideal financial life, you can find one financial professional to help you with both financial planning and investment management –or separate the two services.

That’s where’s where the job titles can get confusing. Financial services professionals sport a wide array of them: financial planner, financial advisor, wealth manager, portfolio manager, money manager, investment manager, etc. Unlike the building profession, where the difference between an architect’s duties and a builder’s are crisply distinguished, the titles used in the financial services industry do not provide upfront definitions on who does financial planning and who does investment management. Some professionals will do both while others – with the exact same titles – are specialists. Consequently, it’s easy to waste time and money engaging a financial professional to fulfill one duty when what you really need is the other!

What’s an investor to do?

Before engaging your financial professional, go beyond the title to truly understand their specialty. As an example, in my wealth management practice I focus on helping women and families with $1 million to $25 million in liquid assets. For this niche market my firm provides three services, which cross the lines of both financial planning and investment management. Specifically we:

• Plan: Help clients align savings rates with retirement and other financial goals (or help clients determine how much they can comfortably spend per year if they are in retirement).
• Invest: Use Monte Carlo analysis to set an appropriate asset allocation in conjunction with an assessment of a client’s willingness, ability and need to take risk – and then invest in accordance with a written investment policy statement, using an “evidence-based” approach.
• Clarify: Assist clients as they work with other financial professionals (accountants, insurance agents, estate lawyers, etc.) through a process called financial life planning.

My firm offers a very specific objective for a particular type of person. It’s not intended to be a fit for everyone. But for the right person it feels like home sweet home.

The bottom line. Whether you need an architect, a builder or both, understand that your needs are unique; due diligence is required to ensure no matter what their “title”, you’ve found a professional who offers the financial services you really need. It’s your hard earned money and your future, and every question is worth asking.

Retirement Planning: Where Do You Stand? 21 Oct 2013 1:00 AM (12 years ago)

It’s been said there are three kinds of untruths: “lies, damn lies and statistics.” As a life long Personal Finance junkie (and female financial advisor for women), I have to qualify. Yes, some statistics are just distractions. But others really do help put our financial progress in perspective.
 
I recently came across one such stat that stopped me in my tracks: In the latest study from Financial Finesse—‘State of US Employee Retirement Preparedness’ —61% of respondents had never run a retirement calculation.
 
Have you heard about folks who hike the Appalachian Trail for 2,200 miles, end to end? Imagine if 61% of them ventured forth with no compass, no idea how long the trip would take, how much food they’d need, and a single pair of sneakers. A little crazy, right?  The road to retirement, likewise, is a long-haul hike that requires planning, yet this study suggests most Americans are heading in blind.
 
While American savers are making progress, many of us are still far behind. As Financial Finesse founder and CEO, Liz Davidson puts it: “We’re. . .very concerned about Millennials, women, and lower-income employees who are the demographics we see at highest risk for not achieving retirement security.”  
 
Importantly, those are three very big groups. If you aren’t in one (or all) of them, I’m betting you know and care about someone who is.  Consider these findings from the same study:
 

• Just 20% of the study’s participants felt ‘confident’ they’re on the right track for retirement preparation in 2013; a whopping 80% didn’t. The bulk of these unprepared folks were young, female, or both.
• Millenials lost ground, dropping to 17% prepared from 19%. This despite the fact that 87% of them are enrolled in employer-sponsored retirement programs (automatic enrollees of all types generally contribute less to their plans, 3.5-4.4% as compared to 7% for active enrollees). Meanwhile, experts recommend contributions between 10 and 15% to adequately fund a retirement account.
• Retirement preparedness among women has risen to 17% from 13%. But that’s still 9 percentage points behind men. As I’ve written before, women face much stronger financial headwinds than men, making it even harder (and more important) for them to adopt a retirement strategy.

If raw numbers aren’t your “thing”, let’s go back to that hike in the woods. Wouldn’t you want a guidebook?  Fortunately, there are many terrific resources out there. If you are young, female, and/or below your income potential, consider reading the second edition of my book On My Own Two Feet: a modern girl’s guide to personal finance, or subscribing a personal finance magazine Money, or signing up for Go Girl Finance if you like to read online.