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From smart homes to smart finances, it’s time to learn some new tricks!

From smart homes to smart finances, it’s time to learn some new tricks!

My recent trip to Amsterdam was great in many ways. I explored a new culture with an old friend and had time to reflect on how to live a great life here at home. My first step: to (finally!) get a ‘smart’ home. If you saw this blog post I wrote back in May, you know that I’ve been living in technology hell for quite a while. My tools were outdated and, quite honestly, I didn’t know what I didn’t know. I had a problem I knew I couldn’t solve alone.

Thankfully Jason, my tech guru, was just a phone call away. After I landed in Southern California, I scheduled time for him to come to my house and do some serious diagnostics. What he found was a collection of technology—some great, others not so great—that wasn’t even being put to use. I had an Alexa that I barely used. I had decade-old TVs that weren’t connected to the Internet. I had a fancy tuner that, while it was once all I needed for great sound quality, couldn’t do the job anymore. As technology had advanced, my trusted tuner had quickly become a dinosaur. While I listened to Jason explaining all of the things we could do to make my home smarter, I realized it was time for this old dog (me!) to learn some new tricks.

I gave Jason the green light to transform my house, and we had a blast doing it together. He installed three new Amazon Fire TVs that I control with a Firestick and an Alexa voice remote. I have a Nest thermostat to control the temperature in every room of my house and Lutron switches to control my lights. Jason used some of my old beloved equipment—my favorite speakers—to support the new technology, so now all I have to do is tell Alexa what to play, and I have better sound than ever. I’m finally on my way to achieving my dream of true technology nirvana.

Being me, I have to compare my own technology planning to my world of financial planning. Just as I resisted solving my technology problems, many people resist doing what’s necessary to transform their financial lives. Why? I hear the same reasons over and over again from our clients who finally took the plunge after years or even decades of procrastination:

"I was embarrassed to show someone else the details of my money.”

"I knew I had a problem, but I didn’t know the cause. I didn’t know what I didn’t know!”

"My brother told me I should do it myself.”

"I thought it was just about investing.”

"I had no idea what to expect from a financial advisor.”

"I didn’t know how to find a financial advisor I could trust.”

"I didn’t realize how much professional help could change my financial life.”

Every reason is valid. Luckily, they can all be solved with just a little bit of knowledge.

If you’re embarrassed about sharing your finances, know that financial advisors have seen it all! Our mission is to help you gain greater confidence and reach your goals—not chastise you for past mistakes. It’s okay to ask for help when you know you have a problem. Even better, ask for help when you see a financial opportunity… or expect there may be one lurking in the unknown. Yes, an advisor can help with that, too.

When working with a financial advisor, every firm’s approach is different. At Klein Financial Advisors, we use a consultative process that focuses on your own goals, priorities, and values, and gives you a clear roadmap to get you from where you are today to where you want to be tomorrow. Don’t be intimidated by the process. A good advisor will hold your hand every step of the way. Just know that we are here to do one thing: help.

If you don’t know how to find an advisor you can trust, I recommend reading the Pursuit of a Financial Advisor Field Guide from NAPFA, the National Association of Personal Financial Advisors. From decoding advisor credentials and walking through compensation models, to outlining the elements of financial planning and understanding the importance of the Fiduciary Standard, the Field Guide is packed with the information you need to select the right advisor for you.

How much can working with a professional help change your financial life? Just ask anyone who has taken the plunge. The change is often dramatic—sometimes in riches, and almost always in the newfound financial confidence that goes hand in hand with having a personalized, long-term plan.

Financial planning is vastly more important than creating a ‘smart home,’ but it can be just as fun and satisfying. Like any new venture, there will also be benefits you could never anticipate. My new smart home came with a bonus: a new friendship. Jason is a quintessential millennial, which makes him quite a contrast to my usual circle of friends. When Jason saw my scuba gear in the garage, he told me diving was something he’s always wanted to do, but never acted on. I shared the name and number of a great scuba coach in the area. In the 12+ hours we were planning, shopping, and working together, we shared great restaurants nearby, pondered the challenges of living alone, and even ‘tested’ out one of my new TVs by watching videos of dogs riding on Roombas (yes, that’s a thing, and yes, we laughed our heads off!). The experience made me realize how much I miss hanging out with younger people and how enriching those relationships can be.

Perhaps my next personal challenge will be to foster intergenerational relationships. (You can read more about how others are making it happen in this article in the Harvard Business Review.) If you’re not already working with a financial advisor, I hope you make that your own next mission. Trust me; an old dog really can learn new tricks. And the benefits are well worth the effort.

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From technology hell to financial nirvana, connecting the dots is the key

From technology hell to financial nirvana, connecting the dots is the key

I confess, I’ve been in technology hell for months. It’s not the first time. As a woman of a certain age, I wasn’t born into a tech-driven world like the Millennials. I don’t speak this language well— at best, I can converse with a thick accent, and I’m by no means fluent. Yes, I own an Alexa (Amazon’s allegedly life-changing device that can, according to my son Adam and my tech guy Jason, do just about anything I could ask). To date I’ve asked “her” to do two things for me: tell me the weather forecast, and set a timer for 10 minutes.I’m clearly missing the boat! But I just don’t get it.

I suppose that’s why I listened with a bit of guilty satisfaction when my friend Lily recently told me her saga of buying and installing a fancy new video doorbell and her own hell trying to get it installed. Long story short: it took 4 or 5 different people to help before Lily was able to see the person on the other side of her door. At least I know I’m not alone in my suffering and frustration! It does help, but it also has me wishing there were professional “technology planners” out there—someone to help me, Lily, and everyone else who doesn’t speak the language of technology get all of these potentially great tools to work together so we can, finally, use them to our advantage. That would be pure technology nirvana!

It makes me happy to realize that the role we play in most of our clients’ lives is to help connect the dots of their financial lives to create at least some level of financial nirvana. If you’re not yet there (or at least on your way), asking yourself these three questions may nudge you in the right direction:

  • Are you holding on to solutions that were great 5 years ago, but that aren’t adding value today?
    I have a box of “old technology” at home that I can’t get myself to throw away (that 5- pound laptop was wonderful in its day!), but deep down I know there’s no reason to keep it. In just a few years, everything in technology has changed. The same is often true in your financial life. Transitions—marriage, divorce, job change, retirement, losing a spouse, relocating—all of these things and more can have a dramatic impact on how you should be saving, spending, and investing. New financial products may be available today that didn’t exist five years ago. Are you using a Health Savings Account (HSA) to save for future medical expenses tax-free? Is your investment strategy aligned with your current goals and time horizon? Has your tax strategy changed to address the new tax law? Now is the time to let go of the old and bring in the new to connect all the right dots.

     
  • Do you understand the language of money?
    When we moved our office systems to the cloud, I wasn’t even sure what “cloud” meant. All I really knew was that it could protect client data and keep our software up to date with the latest versions. I drove our technology provider crazy. I asked a lot of questions so I could communicate in their language: the language of technology. Like technology, money has its own specialized vocabulary. Do you speak the language? Do you know the difference between good debt and bad debt? Do you understand compounding? Do you know what a CD is and its role in your portfolio? (If not, start by reading my blog When did it become ok to be financially illiterate?) The more you understand the language of money, the easier it will be to connect every aspect of your financial life.
  • Are you reaping the rewards of a fully connected financial life?
    Alexa can be used to manage your music, your thermostat, the lights in your house, and more—but only if the device is properly connected to everything else (or so they tell me!). Connecting all the pieces of your financial life is just as vital. Your investments, taxes, savings, budget, estate plan, and insurance are all interrelated. A “connected” strategy is the key to growing and protecting your assets over the long term. A great first step is to start connecting your financial life using an online app like eMoney. It’s a great tool that gives you a birds-eye-view of what you own and what you owe so you can both manage your finances and collaborate even better with your advisor.

I’m a firm believer in the importance of “knowing what I don’t know” and doing everything I can to learn more. To get there, I get help wherever I can find it. That includes hiring a professional to help me find a way out of my current technology hell. We may have moved everything to the cloud, but there are still some disconnects. Suddenly my scanner button isn’t working, two of my apps won’t open, and Skype thinks I don’t have a camera on my computer. Ugh! But I have a tech team coming to the office today, and I’m counting on them to fix what’s broken and to help me understand how to keep everything connected moving forward. We’ll be one step closer to technology nirvana.

I urge you to do the same when it comes to your finances. Ask questions. Get answers. And get the help you need to create a fully connected financial life that takes you one step closer to your financial nirvana—however you define it. That’s one thing I’m pretty certain Alexa can’t do for you… yet!

 

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All written content on this site is for information purposes only. Opinions expressed herein are solely those of Lauren S. Klein, President, Klein Financial Advisors, Inc. Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness. Read More >