My Next Move

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.

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.

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.

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.

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.

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It’s been said that there’s nothing certain in this world except death and taxes. That second item may be debatable, but the first absolutely isn’t. As Michael Liersch reminds us in this episode of the My Next Move financial podcast series, time will have its way with all of us, and although we can’t avoid it, we can and should prepare for it. There are two big things to check off of your list of preparations: first, have you actually done any preparing at all? Assuming that you have the next thing that’s imperative is telling those around you – family, close friends, even business partners. They need to know your plans and wishes. As surprising as it sounds, many wealthy, famous people neglect to tell heirs about their wishes, and some don’t even have legal guidelines – like a last will & testament – set up. Michael urges us not to be one of those people. We owe it to those we love and value to let them know how we want our assets distributed. And remember, it’s highly unlikely they will approach you about this, as it can be misinterpreted as them anticipating your death. Plus, it’s just an uncomfortable subject. So, it’s up to you to take charge. It may not be the most fun thing you’ve ever discussed, but let’s just say, it’s part of life.

Fear can be exhausting. But in this episode of My Next Move, your weekly financial podcast series, Michael Liersch says fear can also be a good thing. Specifically, when it comes to matters of money and investing. It’s pretty frightening to imagine losing all of your hard-earned money. Or any of it, for that matter. And that hesitation can hold us back and cause us to make unproductive financial decisions, or even worse, no decisions at all. But we can fight back against fear by using it to our advantage. Research tell us that people tend to perceive risk as bad. “What if I lose everything?” is a powerful sentiment. So, as Michael tells us, reframe all of those fears as opportunities. Make well-educated, measured decisions, but don’t be afraid to take risks. After all, they say with great risk, comes great reward and there’s nowhere that rings more true than in the financial world.

We at My Next Move podcast are cordially inviting you to speak up and let us know what financial subjects we could cover in future episodes. No subject is too big or too small. Just let us know by emailing us at [email protected]

To put it simply, Kam Shing Kwang has a wealth of knowledge about wealth management - and that makes perfect sense for someone who happens to be the CEO of J.P. Morgan Asia Private Bank. Kam Shing was born in China but raised in other parts of Asia. And, as Michael Liersch discovers in this episode of the My Next Move financial podcast series, that gives her a uniquely cultural point-of-view on how finances affect families. She tells Michael that, yes, Asian families have the same financial hopes, dreams and fears as American families, but there are some differences that may come into play. In China, the one-child limit law that was in place for decades helped shape some of those differences.

Traditionally, the son would inherit the family business, but we now see women stepping in more frequently. And what about the growing entrepreneurial spirit that’s being embraced by younger generations? Kam Shing stresses its impact. “There are also quite a lot of the families understanding that this child may not want to take over the family business, so they actually start thinking about succession planning a lot earlier,” she says.

Being part of a blended family - usually a couple with children from both their current and former relationships - can be financially tricky. But there are ways to navigate the fiscal waters successfully. In this episode of the My Next Move financial podcast series, behavioral expert Michael Liersch tells us why being intentional can help blended families be more harmonious. Michael explains that many people have different ideas of how fairness in a blended family is defined. The most common fairness heuristic, called 1/N (One over N), which essentially says all assets should be divided equally, isn't always observed or followed in a blended family. There is an array of variables that affect how money is treated and distributed.

So, Michael says, if you are one of the responsible parties in a blended family, be explicit about how financial resources will be divided or shared - and consider three principles when dealing with these resources: Psychological readiness, need and equity.

We have a lot of insights to share with you on My Next Move, but we're always ready to go deeper. If you want to suggest a financial topic for us to cover, send an email to [email protected] .

Unless your last name is actually Jones, you might want to think twice about acting like them. In fact, in this week’s episode of the My Next Move financial podcast series, Behavioral Expert Michael Liersch advises us that “Keeping up with the Joneses” could be seriously detrimental to your well-being. Instead, frame up, or rather, reframe your current financial outlook. Look at your debt. Is it helping you or is it a hinderance? Ask yourself, “why am I buying this and spending on that?” Finally, consider your investment habits. Are you doing your homework and investing wisely, or just doing what all of your friends and coworkers are doing? Keep in mind that you and your family are in your own unique situation, and what may be the right investments for some, may be all wrong for you. Ultimately, Michael tells us, the real danger is that if you can’t afford to spend conspicuously, your loved ones may end up paying the price.