The Latte Factor, 2019
by David Bach and John David Mann
“…but the decision to do it? He smiled. “Might be the most important decision you’ll ever make.” p. 33
Summary:
Financial advice and wisdom are written into the story about a young professional woman who learns how to manage her income to suit her lifestyle and build her wealth. The story is clear that the solutions presented are not quick fixes but rather focus on making changes to daily decision-making and habits so that the purpose of life is actualized.
Would I recommend it? Yes, I feel it’s especially suited for an individual that is new to financial books, looking for a quick and easy summer read, or for a parent of a young child to help guide their child’s relationship with money and to start a savings account early to benefit from the OPPORTUNITY of compound interest.
“I believe that each one of us was put here on this earth, in this life, to do something, something special. Something no one else can do. And most of us aren’t doing it – because we’re too busy paying everyone else first.” p. 37
Q & A with the SG Professionals
Today’s Professionals: |
||
 |
 |
|
| Rob Knight Senior Wealth Advisor Steward Group | iA Private Wealth 519-621-3900, ext. 101 800-663-3900 |
Alex McFadden Associate Wealth Advisor Steward Group | iA Private Wealth 519-621-3900, ext. 107 800-663-3900 |
|
Q: Do you often meet people that are structured and disciplined in their professional lives, but then the complete opposite in their personal lives? How do you see yourselves helping someone that is like this?
A: The specific issue is accountability and expectations. At work, accountability and expectations exist, and there are consequences and follow ups. In personal lives, there are no long held solid expectations or accountability measures.
People need accountability partners and that is where financial advisors are important – they help people set goals, track the goals, and discuss the progress during review meetings.
Q: You (SG Advisors) often talk about how there is no standard financial plan that can be used for all the people because goals and life stages are different. But how do you help advise people that don’t have clarity on their goals yet?
A: We actually don’t like the question ‘What are your goals?’ We prefer to ask people, “What is the money for?” To understand the why. Why do you want to change, why do you think you need to change?
Understanding from people what is not going okay in life – such as expensive bills, or the stress of not being able to afford a home or pay off student loans – and taking these challenges to build a plan for the why the money matters.
Q: I’ve learned since working here that the title ‘Financial Advisor’ doesn’t quite sum up what is done, you’re more like an all-in-one life coach and business coach. And I am starting to understand that in this role you can talk people off the ledge etc. when needed. But how do you find the balance of only having one life and not being guaranteed how long that life may be? We bust our a$$es to earn an income and doesn’t there need to be the ability to do things and buy things?
Today’s Professionals:
A: You’re right. You’re not going to live forever. But do you want to work forever? There really is a balance to a good life, you just move buckets around into different time frames. The extra money you make could buy more beer and let you have more fun. Or, you could buy more beer, have more fun and put some into the buckets for later.
Q: Are there actually accounts you can open to save only $5?
A: Yes, a second bank account is common. Most banks now even have a program where you can round up your purchases that puts the extra in a savings account. There is definitely tech out there now to make saving small amounts easy to do.
Q: An argument to building wealth is that 10% interest rates are of the past and not reasonable to expect so, therefore, goals in financial plans become irrelevant. How do you respond to this objection?
A: Nick Murray, a financial author, breaks down the historical rates of return of the markets which shows the average rate of return over a very long period. Generally, our projections would be estimated at a more conservative 4-5% or 5-7% rate, and these rates of course cannot be guaranteed.
