The Whitnell Way
Insights For Business Owners, Executives And Affluent Families
Viewing Blogs by Michael Loizzi
How Do You Feel About Risk Now?
What Might This Mean For Your Future?
The word “unprecedented” seems to get thrown around a lot lately. The COVID-19 pandemic is unprecedented in its global scope. The physical and economic shutdown that followed the outbreak was also unprecedented. The wildfires ravaging the U.S. West Coast are unprecedented. Many of us are left wondering—what’s next?
At Whitnell, we are grappling with this right now in our conversations with clients. The biggest change seems to be in mindset. For a decade, the markets grew fairly consistently. But then the shutdown happened and suddenly risk felt very real again. So I’m wondering how you feel right now about risk. If you find yourself feeling more risk-averse than in the past, and you’re concerned about how this might impact your long-term prospects, you’re not alone. Here are some of my best ideas for how to think about risk right now.
How Millennials Can Take Control Of Their Retirement
Three Core Areas To Consider As You Build Your Plan
There is a perception today that people of the millennial generation do not care about retirement. I don’t think this is true at all. I work with numerous millennials and their families. My experience suggests that they are indeed interested in retirement, but they do seem uncertain about how to take control of it. Many millennials are also very busy raising families and building their careers, which leaves them little time to focus on a complex area like retirement.
I have discovered a strategy that creates clarity for young people who want to put a retirement plan in place that they can be confident in. This strategy is about recognizing three areas that impact your retirement (no control, some control, complete control) and focusing on those areas you do control. This approach produces peace of mind for my clients and a sense that they are doing everything in their power to live their desired lifestyle in retirement. Let’s explore those three areas together.
How Young Professionals Build Wealth Today
Lessons Learned From Working With Millennials On The Rise
I’ve had the privilege of working with some young professionals who I think will be quite financially successful over time. They adopt a certain mindset and set of disciplines when it comes to their money. I’m also seeing a group of young professionals who are struggling to make good decisions. I am concerned that they may not achieve their long-term financial goals.
Working at Whitnell, I get the chance to see how multi-generational families handle their wealth. I see parents who have done well and their children who may or may not do so well, depending on choices they make. If you are a young professional on the rise and you want to build lasting wealth and achieve complete financial independence, here are some of my best ideas.
You Need A Financial “Personal Trainer”
To Silence Those Voices Gnawing At The Back Of Your Mind
Many people make New Year’s resolutions. Often, they resolve to lose weight and get into shape. The people who are most likely to achieve their goals are those who hire and work with an effective personal trainer and commit to a long-term plan. The best trainers look at your health holistically. They ask you about your goals and what you’re trying to achieve.
They dig into your health history and maybe even partner with your doctor. They create a custom nutrition plan and an exercise plan and help you stick to it over time. They coach you and motivate you when things get tough, when it seems like you’re a long way from your goals.
I believe the same is true in the financial world. We all have financial goals and dreams. Some of us will achieve those goals and some of us will not. I believe the difference is having the right partner for the journey. Finding the right financial partner, often like finding a great personal trainer, is not easy. Here are my recommendations about how to find the right partner for your journey.
Why Millennials Need A Human Financial Advisor
Robo-Advice Is Good, But Not Enough To Build Lasting Wealth
There is a lot of talk these days about robo-advisors. The idea is simple. Type in a few parameters about your life, income and goals and a computer system will produce a custom investment plan just for you. The computer becomes your advisor. The elegance of this approach is alluring. This type of guidance is particularly attractive to Millennials, those born between 1981 and 1997.
Millennials grew up with more technology than any generation before them. So a computer-based advisor probably feels like a good fit for them. It feels natural. But there’s a problem, a hidden piece of the puzzle that might not be intuitive to Millennials.
Why You Should Consider Your Parents’ Financial Advisor
It Might Just Be What You’re Looking For
There are many wonderful things about growing up in an affluent household. The creature comforts are great. You don’t have to worry about money. Your parents typically can afford to invest in all sorts of things that help you achieve your potential, like private schools, personal tutors, music lessons, travel and even college tuition.
But there is a challenge I’ve come to recognize after working with several children of affluent parents. Successful parents often cast a very long shadow. It can be quite difficult for the children of affluent parents to step out and chart their own course, to stand on their own two feet, so to speak. The measuring rod of anything they accomplish will always be their parents’ success. That can be a very long rod indeed.
Finding Certainty In An Uncertain Time
What To Do When The Markets Make You Nervous
As I begin this article in the early days of October, 2015, I am well aware of how the markets have performed since June of this year. In fact, I’ve been making a lot of phone calls over the last couple of weeks, speaking with our clients about their goals and how the market changes are impacting their financial standing.
As I spend time with clients, I hear nervousness in people’s voices, and rightly so. The sting of the market declines from 2008 and 2009 are still very real for people. Those kinds of losses are hard to forget.
How Do I Help My Adult Children Learn Financial Discipline?
Why You May Want A Partner For This Job
When I sit down with clients today, I am hearing a consistent theme. A new thread is running through our conversations. It has little to do with investments, taxes, retirement or other topics that have traditionally been a focus. Instead, my clients who have adult children now often want to know how they can help those children adopt the financial disciplines that allowed the parents to achieve success. These parents know that their children will one-day inherit a large portion of wealth and they want them to be prepared to be good stewards of that wealth.
This is not as easy as it may sound. Most of what needs to be “learned” cannot be taught in a classroom because it has to do with lifestyle, mindset, life-experiences and appetites. If you or someone you care about is struggling to achieve this goal, I might recommend that you consider us as your partner in this endeavor. Here are my reasons.
2014 Year-End Strategies
Optimize Your Financial Situation While Maximizing Gifts
As we approach the heart of the holiday season, our thoughts turn to turkey, football games and festive holiday meals with family members. Many of our clients are thinking about the gifts they’ll give the ones they love, if they haven’t yet decided on a gift.
This may not seem like the optimal time to think about taxes and investments, but at Whitnell, that’s exactly what we are doing these days. In fact, we are making our lists and checking them twice, to ensure that our clients optimize their financial situation for the year-end. While this may not be as tasty as cranberry sauce and pumpkin pie, it might just make your holiday season a little brighter and prepare you for the year to come.
Should You Be Nervous About Retirement?
How Can You Know You Have Enough For Retirement?
When I sit down for meetings with people in their late 40s to early 50s, I often hear two questions. How are we doing compared to other families like us? Will we have enough to support our desired retirement? Underlying both of these questions is a general nervousness about the future. Most people in this age bracket have good reason to be nervous. Many of them are still paying down mortgages, have children in college and may even be supporting elderly parents.
If you are facing this situation, I’d like to recommend some strategies to help you move toward your desired future.
Don’t Count On Mom And Dad’s Money
Five Steps To Developing Complete Financial Independence For Young Professionals
Young professionals who grew up in an affluent family often encounter a difficult reality somewhere in their late twenties to early thirties. Building wealth is hard. It takes a lot of discipline and focus. Children of affluent parents often benefitted from their parents’ financial situation. They grew up in nice homes, took expensive family vacations and even attended private schools and universities.