Taming the Financial Chaos

In this episode, we’re taking a little detour from the usual financial talk—because sometimes, the most powerful lessons come from unexpected places.

We kick things off with a story about Galileo (yes, the telescope guy) and what happened when he challenged what everyone thought was true. It’s not just a history lesson - it’s a reminder of how easy it is to dismiss new ideas without truly listening. And honestly, we see a lot of that happening today.

As financial advisors and as human beings, we all give advice, whether we realize it or not. So the real question is: what kind of advisors do we want to be? Are we helping others, or just serving ourselves?

We're also talking about why staying curious, open, and kind matters more than ever in this crazy world.

What You’ll Hear:

• A fresh perspective on Galileo and why his story still matters
• Why we’re all “advisors,” even if we don’t have the title
• How we can give better advice by listening first
• And a little encouragement to keep showing up, even when it’s hard

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

We're picking up where we left off in our AI discussion on episodes 4 & 9. If you haven't listened to episode 9, it leads right into what we're talking about in this podcast.

If you think about it, AI is great at being task-oriented, but not so great at determining value. We've seen this play out in several examples that I've included in this podcast. (Anyone remember Michael Cohen using Google Bard instead of Google Search??)

The bottom line is that when it comes to artificial intelligence and decision-making, you likely want to use a service that can be held accountable for the outcome.

Here are the articles referenced in this podcast:

Ex-Trump ‘Fixer’ Michael Cohen Admits He Accidentally Used Google Bard To Put Fake Cases Into Legal Filing

DPD customer service chatbot swears and calls company 'worst delivery firm'

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

In this podcast, I'm discussing a blog post that dives into what I call competitive investing.

If you find yourself comparing your investments with someone else's...this podcast and blog should resonate with you.

Let's talk about why comparing your needs and wants with the goals of others will likely not give you the retirement YOU really want and why it's impossible to determine a winner in this "game."

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

Welcome to a continuing discussion about AI!

We addressed AI in a previous podcast and how it relates to robo-advisors; in this episode, we're looking at the story of the Air Force drone simulation that could have potentially killed its operator*.

This scenario leads us to this question: Should we entrust decisions to something that we know is not perfect and cannot be held accountable?

That's what we're unpacking today.

(*This story has been reported as false by some media outlets. CLICK HERE to read the story I refer to in the podcast.)

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

Is ESG investing the right solution for the problems we’re experiencing globally? And is it possible that this “solution” can cause adverse effects?

In our ESG series, we’ve covered the cost of ESG investing – now we’re looking at the potential benefits and results.

We’re also looking at real-world examples of how companies are being evaluated and compared – what makes one company “Brown” and another company “Green”? Is it a fair comparison? And what’s the trickle-down effect on the consumer?

While the concept of ESG investing seems like a no-brainer that everyone should be on board with, it’s important to know all the facts, something that your advisor might help you with.


SOURCES:

Are E.S.G. Investors Actually Helping the Environment?

Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms

The ESG-Innovation Disconnect: Evidence from Green Patenting

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

Environmental Social Governance (ESG) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

In our first episode on ESG Investing, we took a look at what it is and the complications that can be involved.

Now we're looking at ESG investments and things to take into consideration should we choose to move forward with this type of strategy. We will have a special focus on greenwashing and the potential impact on fees that might be involved. We're also looking at some of the risks involved.

Bottom line: When it comes to investing, it pays to do your research and/or work with a professional who can help you make informed decisions.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

Mutual funds and exchange traded funds are offered by prospectus only. Investors should carefully consider investment objectives, risks, charges, and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial advisor.


Articles referenced in this podcast:

ESG investing today is somewhere between a joke and a scam. We need to act, fast

Stop the ESG Nonsense

Morningstar Finds ESG Funds Are More Expensive Than Conventional Funds

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

ESG Investing: What is it? How effective is it REALLY? 

We’re putting ESG Investing under the microscope without venturing into politics – yes, that IS possible!

While it might seem that ESG Investing is pretty cut and dry – they’re not polluting the planet so I should invest in them – that’s actually not the case. Currently, there are over 140 firms in the US alone that have different scoring systems for evaluating ESG investment opportunities. So, how can that be anything but subjective?

Could ESG Investing be the right option for you? Maybe. But like anything to do with your finances...let's get all the information we need before moving forward.

Articles Referenced in Discussion:

Biden administration loosens Trump-era investing rules around environment, social and governance funds for 401(k) plans

Wall Street wants to end Trump-era ESG fund rule for 401(k) plans

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

Environmental Social Governance (ESG)  has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller 

FOLLOW PRINCIPLES OF FINANCIAL PLANNING ON SOCIAL!

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

Technology brings wonderful benefits…and some drawbacks. 

Today we’re looking at the tasks that machines can complete and where human reason and thought puts information into context.

Artificial intelligence (AI) is all over the news today. While you might think that technology is fully automated, we’re looking at how humans still have their hand in AI.

Why is this important? Before you consider working with a robo-advisor…listen to this podcast. 

You can also access the blogs about this topic here:

Robo-Advisors: What Service Are They REALLY Providing?

When it Comes to Robo-Advisors...Who's REALLY Pulling the Strings?

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

How quickly could you tell me the impact of these purchases on your finances:

·         A $10m mansion at the beach?

·         A cup of Starbucks coffee?

·         A home improvement or new car?

People tend to freeze on that third question because we don’t know how resilient our finances are.

We’re discussing how planning involves measuring, defining the problem, and finding solutions. This involves something that many people aren’t comfortable with: being vulnerable.

At Principles of Financial Planning, we use what’s called a Slack Evaluation to help our clients understand how resilient their finances are. CLICK HERE to find out more about that service.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.

In our last podcast, we discussed how uncertainty and chance can affect our financial planning. Now, let's talk about how the conditions around our circumstances can also play a significant part.

We know where we want to be when it comes to retirement...but how do we get there? Something to consider is the 6 Principles of Financial Planning outlined by yours truly in this podcast!

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities. 

FOLLOW PRINCIPLES OF FINANCIAL PLANNING ON SOCIAL!

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For more information about Principles of Financial Planning, including disclosures, CLICK HERE.

Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Principles of Financial Planning and LPL Financial are separate entities.