My Next Move
Why is it so important to be financially literate?

Why is it so important to be financially literate?

November 7, 2019

You can achieve so much more when you’re literate about your financial life. Are you asking yourself, “What could be more boring than financial literacy?” Michael Liersch tells us in this episode of My Next Move that it’s normal for people not to understand financial concepts. But having basic knowledge of foundational elements of financial literacy is relevant to all human beings—regardless of wealth level or where you live. For example, does exponential growth bias seem difficult to understand? That’s how you perceive investments growing over time; which can help make sure you’re borrowing, saving and investing in the most productive way. And what about risk? A lot of people also don’t understand risk: whether some is required for their money to achieve all they want. Or whether they have the ability to take any risk at all. Michael encourages us to talk to a financial advisor, people we trust, our families, or even ask Google. After all, financial literacy is really something worth focusing on.

How can you plan for aging parents with empathy, not fear?

How can you plan for aging parents with empathy, not fear?

October 31, 2019

How to prepare for aging parents is a particularly emotional topic for human beings. In this episode of financial podcast My Next Move, behavioral expert Michael Liersch has advice on turning something frightening into something that feels empowering. Since we all age, our parents are really a preview of our own future. So in helping your aging parents, you’re also preparing yourself and your children, or others who’ll one day take care of you. Michael explains that some emotional aging issues evoke silence and shame—like cognitive decline and seniors being defrauded. It’s very important to respond to both with empathy and care, not blame. Long-term help with daily activities is another emotional question: Who will handle this? Is there a care plan in place—funded and organized? Because improvising care often becomes unsustainable. End-of-life estate planning is also not easy. Michael encourages listeners to start having open dialogues, even if it’s difficult or uncomfortable. Frame the dialogue as collaborating about decision-making in good times and bad. That’s important at every stage of life.

Feel conflicted when you help someone with money?

Feel conflicted when you help someone with money?

October 24, 2019

Sometimes giving a gift of money can be the best feeling ever, and sometimes it leaves the giver feeling terrible, as Michael Liersch explains in this episode of My Next Move. You can’t blame the recipient. Michael explains why it’s so important to communicate your expectations around why you’re giving the gift—by giving guidance and setting parameters. Then, ultimately, you’ll end the experience feeling connected to how the money will be used. Michael explains that this is giving with intention. For example, you could start by saying, “Here's why I'm giving you this money, and here’s how I'd like you to spend it.” This gives the recipient the option to reject the gift—or accept it and use it in a way that will be deeply satisfying to you both. On the other hand, if they don't know why you're giving that gift and use it for something that you feel is not empowering, you’ll probably both feel badly. Here’s the action step: Be intentional with your money gift-gifting. Changing this behavior over time can give you a greater sense of well-being—and make the receiver of your gifts feel better, as well.

What can a 10-year-old teach us about money?

What can a 10-year-old teach us about money?

October 17, 2019

How much can our children really know about money—and what does a good conversation about money with them sound like? Behavioral expert Michael Liersch shows us in this episode of the My Next Move financial podcast when he interviews with his 10-year-old daughter. For many children, family finances can be a hidden, even forbidden topic. But his daughter freely explains where money comes from, what the Liersch family does (and doesn’t) spend it on, why she likes to save, and what money issues will be discussed at their next family meeting—showing us that it’s OK for children and parents to be open about money. Even disagreeing about money, she says, “is natural”—it even happens sometimes at her house. Learn how to start money conversations when children are young and how to use the conversations to values and build good habits. If a 10-year-old can be so financially literate—and open, we may all be more comfortable learning and talking about money, too.

Are you falling for these five common financial misconceptions?

Are you falling for these five common financial misconceptions?

October 10, 2019

In this episode of the My Next Move podcast, financial behavioral expert Michael Liersch debunks five common financial misconceptions. Like the idea that financial matters are simple. Actually, they’re not simple at all. Investing deliberately, with intention, for yourself or family members, can actually be quite complex. Another misconception is that you can offload your financial life onto someone else, a spouse or a team of professionals who are helping you, and then you won’t need to worry about it. Not true, either. What if something happened to them? Or to you? Communicating about money with those close to you is critical to your financial life so you can make the best, most sustainable decisions. Michael offers more financial advice about five common money misconceptions, and what you can do to change them.

How can intentions lead to favorable financial outcomes?

How can intentions lead to favorable financial outcomes?

October 3, 2019

When it comes to finances, we’ve always been told to set goals. But as Michael Liersch advises us in this episode of My Next Move, your financial podcast series, it’s really our intentions that matter most. What exactly are your intentions for your money? If you’re like most people, you want your finances to support your lifestyle. Perhaps you’d like to travel or have new and different experiences or live in a certain place in a certain type of home. These are important things and need to be planned, monetarily. Another priority people have is to provide for a family matter – a special needs child, perhaps. The third highest priority, and no big surprise here, is healthcare. There could be an entire My Next Move episode on that, and there probably will be. Michael tells us it’s okay to have one or all of these priorities and that we can intentionally approach them one at a time. Bite off as much as you can chew, and that’s enough. The important thing is to articulate what you want your money to do for you, and make a plan to get there, eventually. It doesn’t all have to happen overnight.

How can spreading your money out help?

How can spreading your money out help?

September 26, 2019

If you’ve read Don Quixote you already know that diversifying is a no-brainer. According to Sancho Panza, "It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket." In this week’s episode of the financial podcast series, My Next Move, Michael Liersch tells us that not putting all your eggs in one basket is particularly sage advice when it comes to matters involving money. It’s usually smarter to spread your finances over multiple holdings. Having a single (or a very small number) of financial interests can be dangerous, whether it be a stock or a business interest or even a home. Simply put, you could lose everything, even if it’s just on paper, and it could be for extraneous reasons. It may have nothing at all to do with the quality of that single holding. Michael asks us to consider doing what most financial experts recommend: having several, or even many holdings or investments instead of just one or two. Or, to reframe that old cliché, you just might want to put your eggs in lots of baskets.

What can different generations teach each other about money?

What can different generations teach each other about money?

September 19, 2019

It happens all the time. The older generations complain about younger people being irresponsible or not as hard-working as they should be, while that younger generation says older people are out-of-touch and stubborn. Sure, some of this is true. But in this week’s episode of My Next Move, your financial podcast series, host Michael Liersch tells us there are far more similarities between generations than there are differences. As we age, our ability to make sound financial decisions improves – to a point. Research tells us that, after a while, that ability slowly begins to decline. So, it’s important that younger and older people can work together – especially among family members – to achieve whatever financial goals they may be pursuing. As Michael notes, it’s also crucial to be introspective. Is there something preventing you from collaborating with those of different generations? Are you holding on to those old stereotypes? Are you harboring resentment? Most importantly, how can you build bridges that will open up your ability to work together to solve money issues? Sometimes all it takes is putting yourself in the other person’s shoes.

How can breaking up be less heartbreaking?

How can breaking up be less heartbreaking?

September 12, 2019

Make no mistake about it – divorce can be mentally, and sometimes financially, devastating. But in this week’s My Next Move financial podcast, we discover that splitting up doesn’t necessarily spell gloom and unhappiness. Listen in as Michael Liersch discusses the intricacies of the divorce process with J.P. Morgan Wealth Advisor, Gigi Orta. Together, they reveal that the most important part of marriage is communication, and that it’s also important should that partnership end. Plan from the beginning of a marriage. Make sure you are aligned and both of you understand your rights and obligations. If things don’t work out in the end, control the narrative of how that breakup is communicated to friends and family. Stand united to make sure assets are divided equally and that your mutual decisions provide for the best outcomes for any children who may be involved. Above all, Gigi stresses that the relationship should be honored and respected, even though it may be changing. The goal should be happiness for you and your former partner. Obviously, no one relishes the idea of divorce but if both parties are aligned on some key aspects, breaking up doesn’t have to break everything.

Is home ownership all it’s cracked up to be?

Is home ownership all it’s cracked up to be?

July 25, 2019

It’s pretty much etched in proverbial stone: Owning a home defines the American Dream. But what does owning a home really mean? What does it get us? How does it affect us financially, and emotionally? In this week’s My Next Move podcast, Michael Liersch gives us some sound financial advice, and it all relates to home ownership. Listen in as Michael suggests that we all ask ourselves some key questions about owning a home: do you see your house as an investment you’ll eventually sell, or is it like a family member that you’d never dare part with? Being really attached to your home could lead to the “Endowment Effect,” which says people tend to overvalue things they own. Do you plan to recoup the cost of improvements, or do you consider them investments in your quality of life? No matter how you see your home and its place in your financial life, be intentional and decisive. Do you plan to pass it on to heirs, and if so, are they aware of your plans and are you sure they really want to keep it after you’re gone? Considering all of these things can help make a house truly a home, as opposed to a headache.

We want to hear about what you want to hear about. Let us know your ideas for future My Next Move topics by emailing us at mynextmove.podcast@jpmorgan.com