Shortbread: What a prediction!

Milton FriedmanI think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed is a reliable e-cash.

–Milton Friedman, economist

Milton Friedman died in 2006. Bitcoin was launched in 2009.





Location, location, location! The Secret of Hidden Investment Returns

If you’re interested in earning dependable positive returns that you can actually manufacture yourself, there is something you need to write at the top of your to-do list. Alpha is the excessRead More…

Money Skills: Your Older Clients Crave Protection

A money coach’s ideal day should be built around meaningful conversations with good clients. These conversations are like snowflakes, no two are alike, and are as different as the clients themselves, each with their unique goals, relationship and family situations, level of knowledge, level of wealth, specific goals, and the list goes on.

We work with a more elderly clientele, and have noticed a common theme, regardless of their differences: virtually all of them want protection.

Older clients want to protect their lives, their health, their family and their money.

The days of risk and growth are long gone, having surrendered to the days of safety and income. Cryptocurrency is for the young, risk has become a four letter word, and the paychecks are over, so when it comes to money, you cannot afford to lose it.

Wealth preservation and the need for a solid, tax-friendly income generation plan are the most relevant solutions, and many times a protected growth strategy that eliminates risk of loss while maintaining growth of assets are required solutions. Creating lasting legacies through a formalized insurance and estate plan are necessary to complete the picture.

In working with any financial professional, they must be conversant on the strategies and instruments that will satisfy their elder client’s need to have safe income and capital preservation. 

A money coach’s role, on part, is to help their clients identify and eliminate their destructive money behaviors, elevate their financial literacy and hold them accountable to achieving their greatest goals in life.

Never. Lose. Money.


What is a Money Coach?

Money coaches are not investment brokers, but they could be!

Money coaches are not financial planners, but they could be!

Money coaches are not necessarily already in the financial services business, but they could be!

So what the heck is a money coach?

Before we seek a definition, let’s first contemplate the human condition for a moment, and consider what people really want in terms of a happy life.  

We know that money doesn’t equal happiness, but when we think about money, we generally want to know a few things: how can I make more, how can I keep from losing it, how can I be a better investor, and how can I best manage my life, financial and otherwise, so that my family and I can live a healthy, worry-free life.

Face it, living life means learning how to deal with risk. Catastrophes and mistakes have a price tag. Everybody’s price tag is different. Most of us don’t sit around worrying about things like stock picking and market volatility. We think about what hazards might come our way that could make our lives more volatile. The health and safety of our spouses and children, losing our jobs, getting a serious illness, dying too soon, and yes, even living too long, all of it, costs money.

On top of all those things, add in the need to plan for a secure retirement, a plan to send the kids to college, a plan to insure the risks of getting sick, dying too soon and living too long, bulging credit card debt, not having enough cash to deal with an emergency, living within a budget…whew! Now that’s a pretty full plate.

And if that were not enough to make us cry uncle, we’re often fighting a war. With ourselves. That’s right, we all have the potential to be our own worst enemy. Low financial literacy, bad habits and wonky behavior will kill even the best laid plans. 

So, most people aren’t looking for a better stockbroker; they’re looking for help and guidance to better deal with both the risks and opportunities ahead, which means getting a better handle on their emotions, their behaviors, their money biases, their knowledge and their skill.

A money coach is less a teacher and mentor, and more a guide, helping his or her client find the answers within, and helping them move toward reaching their most significant goals in life, and then holding them accountable to achieving them.

That’s what a money coach is.

Never. Lose. Money.

Shortbread: Even a dummy, timeless advice.

“I want to be in businesses so good even a dummy can make money.” – Warren Buffet, 1988

Mr. B followed four basic tenets when deciding to buy a company:

  1. Business Tenets-Basic characteristics of the business itself,
  2. Management Tenets-Important qualities that senior management must display,
  3. Financial Tenets-The financial decisions the company must maintain, and
  4. Value Tenets-Interrelated guidelines about purchase price.

Want to know more? Then don’t be a dummy…buy this book.



Shortbread: Required reading

If you are serious about all things money, you must put The Wealthy Barber on your reading list. Like right now! Here is just one of the many nuggets from the book that can literally transform lives:

Wealth beyond your wildest dreams is possible if you follow the golden rule: Invest ten percent of all you make for long-term growth. If you follow that one simple guideline, someday you’ll be a very rich man. -David Chilton

The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David Chilton


Money Skills: Simple Magic, Once in a Fortnight.

In Ye Olde England, nobles and peasants alike used a measure of time that has long been out of general usage, at least in the states, the fortnight.

fortnight is fourteen days. The word derives from the term fēowertyne niht, literally meaning “fourteen nights.” We here across the pond prefer to say biweekly, but the Brits still like sprinkling their discourse with ye olde words on occasion.

So, what do fortnights have to do with money?

Something that happens every fortnight happens every two weeks, which is how your clients may want to pay their monthly mortgage, and here’s why.

A biweekly mortgage payment allows the borrower to make payments every two weeks rather than once a month on their thirty year mortgage. So rather than making 12 whole monthly payments, the homeowner makes 26 half payments over the course of the year. This may not seem like much of a change, until you look at how the power of accelerated payments can save the homeowner a bundle in interest payments.

As an example,  if I make twelve equal monthly mortgage payments of $1000 that means I will have paid $12000. However, if I pay 26 half payments (that’s $500 every fortnight!) I will have paid $13000 in twelve months. So I end up paying $1000 more over the course of a year, but its not a budget buster for most money conscious families, and there is so much to gain. The extra $1000 works out to $2.74 a day!

Mortgage payments are comprised of interest and principal. The early years are heavy in interest and it may take some homeowners years to build up a good store of equity, the extra payments each year serve to pay off the interest owed much more rapidly, so it is common that a traditional thirty year mortgage can be paid off in twenty years. That’s cutting ten full years off of the debt service by making those extra payments each year.

Your client should schedule a call with their mortgage lender and ask for an amortization schedule which will show exactly how this fast pay approach can keep tens and hundreds of thousands of dollars in you client’s pockets. The lender can then help your client establish the non-traditional payment plan.

And while they are at it, right now (if you are reading this in December 2020) is a great time to talk about refinancing to save even more money. 30 year fixed rates are in the 2.5% range, some lower.