In this article, we’ll cover:

• Fiduciary relationship types
• Responsibilities of a fiduciary
• Fiduciary duty vs. suitability standard
• The importance of fiduciary financial advisors

Types of fiduciary relationships

While most people associate the term “fiduciary” with finances, fiduciary duty does not always include money or wealth management. Acting as a fiduciary is a fairly common legal role in a variety of everyday professional relationships. Some fiduciaries are tasked with managing well-being, as with doctor/patient or guardian/ward relationships. Other fiduciary relationships, like that of a financial advisor and their client, are directly related to money management. Either way, these fiduciaries are responsible for acting in their client’s best interests both legally and ethically. 

• Attorney and client: As a fiduciary, an attorney must act with loyalty, fairness, and care within the law on behalf of their clients. This is one of the strictest fiduciary relationships, requiring a high level of trust and confidence between the parties involved. Clients can sue attorneys for breach of fiduciary duty if the attorney violates the agreement.
  
• Doctor and patient: This relationship is based on the patient’s trust or confidence in the doctor, in turn creating certain obligations or duties that the doctor owes the patient. Doctors are obligated to keep patient information confidential and to share accurate health information with the patient. Patients can sue doctors for breach of fiduciary duty or medical malpractice for withholding information, providing misleading information, and performing unnecessary services.
  
• Guardian and ward: In this relationship, an adult is designated as the guardian of a minor. The guardian is responsible for all matters related to the daily well-being of the child. A guardian may be appointed by a state court when a parent is unable to care for their child or when a parent dies. In most states, the guardian/ward relationship remains intact until the minor reaches adulthood. Guardians may also be designated for adults who are unable to independently care for themselves. A guardian who breaches the terms of the fiduciary relationship may have their guardianship revoked, and they can also be subject to legal action.
  
• Board member and shareholder: Corporate board members are trustees bound by their fiduciary responsibilities to shareholders. Board members are obligated to make decisions that financially benefit the shareholders. They are also expected to set aside their personal interests while being informed, prepared, and engaged representatives for shareholders. A breach of fiduciary duty may result in personal legal liability for the trustee.
  
• Financial advisor and client: Financial advisors have a fiduciary duty to act in the best interest of their clients, offering investment advice and the lowest-cost financial solutions to fit their client’s needs. A fiduciary financial advisor will not recommend an investment that doesn’t benefit you, fit your risk profile, or match your financial goals. Violation of fiduciary duty could include negligence, making unauthorized trades on your account, misrepresenting a security or transaction, or churning your account by generating commissions through excessive trade. Advisors who violate the relationship may be liable to their clients for any financial losses. Note that not all financial advisors are fiduciaries; those that aren’t do not have the same legal obligation to put their clients’ interests first. 

The duty of a fiduciary

A fiduciary is not held to a standard of perfection. Rather, they are obligated to show that their services and advice are reasonably good and legally sound. First and foremost, they must put their client’s interests ahead of their own. Additionally, they are obligated to ensure full disclosure of all material facts, avoid conflicts of interest, preserve confidentiality, and provide suitable advice. Further, the duties of a fiduciary may be categorized as the “duty of care,” and the “duty of loyalty.”

Duty of care

Duty of care is the moral and legal responsibility to prevent harm. It requires fiduciaries to make decisions in good faith and a relatively prudent manner. Financial advisors, for example, must only make investment decisions on your behalf after taking all available information into account to ensure your money is being handled according to your wishes.

Duty of loyalty

Duty of loyalty requires your financial advisor to act in your best interest at all times, even if doing so is not beneficial to them. In the case of fiduciary financial advisors, for example, they are prevented from favoring one client over another. Additionally, they must disclose and avoid all conflicts of interest, as well as keep your information confidential at all times. 

Fiduciary duty vs. suitability standard

It’s important to note that not all financial advisors are fiduciaries. Some operate under what’s known as the suitability standard, which requires brokers and investment advisors to recommend investments that are suitable for the client. Advisors who uphold the suitability standard are required to have a reasonable basis for their recommendations. They must base their decisions on their client’s investment profile, risk tolerance, and time horizon. While their recommendations and management can’t be deemed unsuitable for their client’s needs, the suitability standard doesn’t require acting in the best interest of their client.

The importance of having a fiduciary financial advisor

Fiduciary financial advisors build their client relationships on trust and a legal duty to represent your interests. When you’re allowing someone to manage and provide advice for something as vital as your assets, the legally and ethically binding nature of the fiduciary relationship can provide peace of mind. A fiduciary financial advisor must always act in your best interest, so they’ll help you maximize your investment earnings, navigate major life events that affect your finances, and provide all relevant information about your finances. While all investing involves risk, including the risk that you could lose money, working with a fiduciary can provide confidence that your interests are being served. 

And if you’re concerned about the cost of a financial advisor, you don’t necessarily have to sacrifice quality and trust. Robo-advisors, which are often a lower-cost option than a personal advisor, are fiduciaries when they’re operated by a fiduciary entity and are held to the same fiduciary duty as certified human financial advisors.

In most states, financial advisors must obtain a license to be considered fiduciaries. Doing so requires meeting rigorous educational and experience standards, and often involves passing exams. You can find out if a financial advisor is a fiduciary by checking to see if they’re registered as one with the Securities and Exchange Commission (SEC).  

Invest in your future with confidence

When you’re looking for someone to help manage your money and invest in your future, working with a fiduciary financial advisor provides a high degree of trust and confidence. Stash is an SEC-registered financial advisor, and we take our fiduciary responsibility seriously. Stash’s fundamental obligation is to act in your best interest and ensure you can trust us to support your financial future. 

The post What is a fiduciary? appeared first on Stash Learn.

That’s why, for many, hearing the recent news that tennis champion Naomi Osaka and gold-medal Olympic gymnast Simone Biles withdrew from their respective sporting competitions this summer may be a reason to pause and consider their own states of mind. And it’s possible the news will open up more conversations for those who want, and need, to take time off to tend to their mental health. 

Whether it’s generalized anxiety, depression, or burnout, mental health challenges cost the global economy approximately $1 trillion each year in lost productivity, according to recent research by medical journal The Lancet. What’s more, Covid-19 has compounded psychological challenges for many since 2020, and led to more financial challenges, as people grapple with fear, anxiety, emotional distress related to illness, bereavement, loss of income, not to mention loneliness and social isolation, the journal reports.

Personally, I know what this looks like. I suffered an intense period of burnout back in 2019, and I didn’t work for a month. Not only did I spend more on counseling in the months after trying to scramble to create some semblance of a work life balance, I spent more during those weeks off on items including takeout and babysitters for my son. Luckily, I was able to afford those expenses thanks to my emergency fund. 

In hindsight, I saw the burnout coming and wish I had taken proactive steps to take time off, instead of being forced to. If you’re in a similar situation and want to take time off, here are some ways you can make it work financially.

Budgeting for mental health

Whether you’ll receive partial pay or need to take unpaid leave, you should budget for time off. it’s likely you’ll be living on a reduced income, which may require you to adjust how you allocate your money. Ideally, you should also have a rainy day fund in place, which you may have to tap to pay for unexpected expenses. 

If you’re planning to take time off a few months from now, you should consider setting aside money for a larger rainy day fund. It could help you avoid spending on personal loans or credit cards, which can get you into debt.

You’ll also want to look at which parts of your budget you can temporarily cut out or reduce when tending to your mental health. Consider looking into benefits your employer or health insurance may provide, such as free counselling sessions under your Employee Assistance Program (EAP). These are confidential, short-term counseling sessions for employees that may also include referrals and follow-up services for personal or work-related problems. There are also non-profit programs that can offer reduced fees for counseling, such as the Open Path Psychotherapy Collective.

Negotiating with your employer

For your next step, consider talking to your employer. Aside from filing for short term disability insurance (more on this later), it’s a good idea to start the dialogue early when it comes to taking time off. 

Rich Jones, host of the podcast Paychecks & Balances, says that mental health and career are hot topics currently, so companies may be more flexible than ever. It could be a great time to speak to your supervisor or human resources department.  And in case you’re scared to start a conversation, Jones suggests thinking about yourself as a valuable company asset.

“Companies don’t want to lose top talent because they didn’t give them the space needed,” he says. “Be thoughtful about why you’re requesting the break, how it will help you and the potential coverage plan for when you’re away.”

Jones also suggests familiarizing yourself with company benefits, including any policies for leave. If not, try to come up with a plan and then approach the right people. You should be open to what happens and how to respond, though you may be pleasantly surprised at what happens.

Filing for short-term disability or FMLA 

There are several options when it comes to filing a short-term disability claim, though specifics will depend on the laws in your state, and your employer’s policy. Short-term disability can offer you income protection by replacing part of your paycheck if you are injured or if you become too sick to work.  You may want to consult an attorney specializing in these matters to see where you stand.

In general, you may be able to file for short-term disability through your employer if you’re diagnosed with a mental condition, which stems from workplace stress. This diagnosis needs to come from a medical professional. And you may be able to take several months of leave, and in some instances may receive up to 80% of your gross income if your employer provides short term disability benefits.  

You may also be able to apply for leave under the Family and Medical Leave Act (FMLA), which allows covered employees to take time off for specified family and medical reasons. However, you’ll only receive up to 12 weeks off and it’s usually unpaid. Your job is protected during your MLA leave, and after your 3 months is up, your company must put you back in the same job or an equivalent, with equivalent benefits and conditions of employment.  Whereas with short-term disability, you may not be protected. However,  employers with 15 or more workers must offer to make reasonable accommodations for employees with disabilities.

Using Your FSA or HSA Funds

Your health savings account (HSA) or flexible spending account (FSA) are tax-favored accounts that can help you pay for various health care expenses, which can include your mental health. Since many mental health needs aren’t covered under a typical health insurance plan, you’ll probably need to pay out of pocket for them. An HSA or FSA account may let you pay for qualified medical expenses related to mental health.You may be able to save money since these accounts are funded with pre-tax dollars. 

Reaching out

Don’t forget to ask friends and family if you know you’ll need support. It might feel overwhelming to deal with mental health concerns or worry about whether your job will be there if you take time off. Your health should be your top priority.

“It’s better to take the leave than to let your performance slip,” Jones says. “You could get a low job performance rating and find yourself fighting an uphill battle.”

Remember the Stash Way

At Stash, we recommend following the Stash Way. It’s our philosophy for financial wellness, which includes budgeting, creating emergency savings, and investing on a regular basis, as well as protecting your loved ones and assets with insurance. Stash also offers goal-setting tools such as Partitions, which can help you set money aside in an emergency fund that can support you through a leave of absence.

The post How to Plan Financially for a Mental Health Leave appeared first on Stash Learn.

The truth is, it’s important to consider what your family might do without you and what you can do now to protect your family’s future, especially if you’re a mother.  Life insurance can help.

Why Do Moms Need Life Insurance?

Moms need life insurance, whether you have a 9 to 5 or stay at home or an expecting mother. A common misconception about life insurance is that it pays for funeral expenses and not much more. That’s true if you only get a small amount of coverage, but we’ll get to that later. But with a little planning ahead of time, moms can ensure that their families are taken care of.

If you’re currently employed, you may already have a basic life insurance policy through your job. That typically ranges from $25,000 to $100,000—roughly equal to your annual salary. That’s a good start, but probably not enough to cover your family’s needs (more on that later).

What about stay-at-home moms? Do they need life insurance? Absolutely! From cooking, cleaning, nursing, teaching, bookkeeping, chauffeuring, and more, studies have shown that if stay-at-home moms earned a salary, they’d make $178,201 a year¹! 

Our partner, Bestow, recognizes these contributions, and is proud to offer coverage to stay-at-home spouses who don’t have a traditional income to report. Your partner and kids would definitely feel the financial effects of your loss, and a life insurance policy from Bestow can help offer them some protection.

What Can Life Insurance Cover?

Life insurance is a federal income tax-free² benefit paid directly to your beneficiaries. There are no limits to what it can cover, but here are some things moms should consider in determining how much you’ll need, aside from funeral expenses.

Loss of income

A Pew Research Center study found that in 46% of households, both parents work full-time jobs, and 17% of households have one parent working full time while the other works part time. A life insurance policy can help maintain your family’s current lifestyle, even on one income. And if you’re a single mother and are the only source of income in your household, life insurance can replace your annual salary for years to come.

Childcare

The average cost of childcare in the US is $11,666 per year. With only one parent, your kids might need more hours of childcare (whether it’s daycare, after-school care, or a nanny) to help your spouse maintain a full-time job. This is especially important if your spouse doesn’t have a flexible work schedule.

Housekeeping

There’s no shame in having help. Household chores are time consuming, and if hiring a housekeeper means that your spouse can spend more quality time with the kiddos and less time doing laundry, dishes, and dusting those ceiling fans, this is definitely worth considering.

Extracurricular Activities

The cost of sports, music lessons, and other activities is steadily increasing. The average cost of extracurricular activities per child is nearly $739 a year. And if you have a kid in high school, the number is even higher. Expect to pay about $1,124 annually. Dios mio!

Emergencies

Medical expenses, car repair costs, job loss—it’s important to pad your savings account for rainy days. A healthy savings account can turn a financial emergency into a minor inconvenience, reducing or completely eliminating stress. And who doesn’t want that for their family?

Bestow³: Fast, Affordable Life Insurance You Can Trust

There’s barely enough time in the day for you, let alone for soccer games, piano recitals, and homework assignments. No wonder moms put life insurance coverage on the back burner even though they plan to buy it.

Bestow can make shopping for life insurance easy and affordable. They’ve partnered with two of the largest insurance companies to get moms like you to confidently secure your family’s financial future. Their data and technology-driven approach removes the unnecessary hassle of buying term life insurance. It’s as simple as filling out a form. No more pushy sales calls or invasive medical exams — no time for that! (But, if you do need to speak to someone for some guidance, the Bestow Team is just a phone call away.)

Get a quote from Bestow now, and literally walk away from your computer with coverage, confidence, and peace of mind (or at least until someone spills something on the kitchen floor, again!).

*This post was originally written by our friends at Bestow. For more life insurance content, check out their blog⁴.

The post A Mother’s Guide to Life Insurance appeared first on Stash Learn.

These folks know all too well the anxiety that comes from watching their bank balances dwindle until their next payday. They develop a keen awareness of the recurring and unexpected expenses that eat away at their checking account every two weeks.

With a little organization and elbow grease, you can harness this awareness and create a highly effective personal budget based around your pay periods. By focusing on a two-week period of cash flow and expenses, you can develop a budget that assigns each incoming dollar a purpose, and helps ensure that it achieves those objectives before your next paycheck arrives. The budget by paycheck method can be the basis for healthy and disciplined spending habits.

What is budgeting by paycheck?

Most popular budgeting methods are structured around monthly or annual spending cycles, but many budgeters find it more rewarding to work with income and expenses over a shorter period of time. The budget by paycheck method is built around the typical two-week pay period. Expenses that occur during that period are charged to that paycheck, with an allocation set aside to cover less frequent expenses and savings. A shorter period of time allows you to keep a close eye on your budget, allowing you to ensure that each dollar that arrives on payday meets its assigned purpose within that period.

Building the budget

Like any budgeting method, you will need to start by identifying four groups of expenses:

·Fixed expenses: Recurring items are not likely to change, including, rent, car payments, insurance premiums and phone bills.

·Variable expenses: Expenses that recur but are not fixed dollar amounts. Groceries, variable utility bills and the occasional night out at the movies qualify. You may choose to place credit card payments here as well.

·Irregular expenses: These expenses can be expected or not, and tend to arise only occasionally. Birthday gifts for friends and family, vacations and the unexpected home or auto repair fall into this category.

·Savings: Treat this as a recurring expense and you will be more likely to put away a small amount every two weeks. Do not stress over the dollar amount—the point is to get in the habit of putting a little something aside for the future.

Once you have identified these expenses, take a look at your incoming cash flow. Typically, this comes in the form of a paycheck every two weeks. Does your paycheck always arrive on certain days of the month or does it stick to a strict two-week pattern? Do you have any other income, such as child support or social security? And when does it arrive? 

Next, assign the expenses you identified above to a particular pay period. It may help to use an old-fashioned paper calendar for this step. Most of your expenses have a due date you can use to help place them. For example, if your water bill is due on the 10^th of the month, put it on the calendar and assign it to the paycheck that coincides with that date. You may have to split large, variable items such as credit card bills between pay periods. This will be possible only if you have a realistic idea of your average monthly bill.

Take any leftover income and set it aside for irregular expenses and savings. Treat both of these categories as regular expenses each pay period.

Pros and cons of budget by paycheck

The budget by paycheck method is not necessarily the easiest method of budgeting. It requires that you take a close and honest look at your spending habits and income and build a careful spending plan multiple times per month. You may lighten your workload by importing expenses and income from previous periods, but the system can fail you if you don’t manage each pay period individually.

For many people, the primary advantage of the budget by paycheck method is that it is directly tied to their actual cash flow. Dollars arrive in your account and you have already determined where they will go. You should find that those dollars are gone by the end of the pay period, but the good news is that you have met your expenses and set aside some savings for the future.   

Integrating budget by paycheck with other methods and apps

If you have already found some success with other budgeting methods, you may be able to integrate the budget by paycheck method into your existing plan. For example, the budget by paycheck method already shares features with zero-sum budgeting, where you assign every dollar a destination. According to this strategy, by the end of the month, there is no money left unallocated to expenses and savings. The 50/30/20 rule can provide you with targets for your spending habits, encouraging you to allocate 50% of your income to needs, 30% to wants and 20% to savings. The envelope system can be an effective way to manage smaller expenses, encouraging practitioners to allocate cash amounts to different expenses and then spending only that amount.

Consider using a budgeting app that allows you to adjust budgeting cycles to line up with paydays as a way to keep your budget by paycheck plan on track. Budgeters looking to stick to old-fashioned pencil and paper may consider the Stash’s 50-30-20 worksheet, a handy resource specifically designed for budgeting.

The budget by paycheck method works for individuals who don’t mind putting in the time to take a more detailed approach to their cash flows. Tweak it or integrate it with other budgeting methods to make it a strategy that you can stick to.

The post Learn How to Budget by Paycheck appeared first on Stash Learn.

Why should I even consider life insurance?

In times like these, life insurance can provide you and your family some peace of mind and necessary protection. Life insurance also should be an important component of your financial plan, helping you meet your future goals by providing financial support when you might need it most.

Why you might try applying now…

With 1 in 4 Americans ordered to shelter in place or to practice social distancing, getting life insurance coverage from traditional brokers can be a process. The process of applying for coverage with many traditional insurance companies requires doctors appointments, labwork, paperwork, in-person meetings, and you usually cannot purchase a policy instantly.

Bestow,* an insurance technology company, is disrupting the industry and making it incredibly easy to apply for life insurance online, from the comfort of your home. For you, that means:

1. No medical appointments
2. Instant decisions
3. Flexible coverage
4. No paper forms

So while you’re cooped up at home and adding items to your spring cleaning list, you might want to consider adding life insurance to your list too. Applying is quick and easy!

The post Don’t Forget This Item on Your Spring Cleaning Checklist appeared first on Stash Learn.

Regardless of the progress you’ve made (or haven’t made—we’re not judging!) on the goals you set for the new year, we think there’s one more goal to consider adding to your list: getting life insurance. It’s easy, affordable, and could be an important part of your financial plan.

Term life insurance can help protect your family from financial loss and can supplement lost income, as well as provide funding for education and everyday living expenses in the event you’re no longer around to provide for your loved ones.

Here’s why you should consider buying life insurance this year:

1. If you have debt

If you have a cosigner on your loans, whether it’s student or personal loans, they could be liable to pay off the outstanding balance.

2. If you’re buying a home (or you currently own one)

Don’t forget your home! If you have a mortgage, a life insurance policy can help pay off the remaining amount you owe so your family can continue living in their home.

3. If you’re making a major life change

Did you recently get engaged? Are you planning on getting married? Starting a family? Regardless of your family situation, if your loved ones depend on your income, your loss could cause financial hardship.

If you are a one-income family, your family would lose its income without the primary breadwinner. Even in a two-income family, the loss of one income source can make it difficult to maintain your current standard of living.

4. If you’re hitting a milestone birthday

The younger (and healthier) you are, the more affordable it can be to buy insurance.

In life insurance underwriting (the process that determines whether you’re eligible for coverage and at what cost), your age is a major factor. Generally speaking, the younger and healthier you are, the less you’ll pay for life insurance premiums.

Consider getting insurance now, so you can lock in better monthly pricing on a life insurance policy that lasts ten to twenty years and save money on the cost of your monthly premium.

Bestow*, our life insurance partner, makes it easy to apply for coverage in minutes. That way you can check this item off your list for this year, the next, and the years after that.

The post Life Insurance: A New Year’s Goal Worth Having appeared first on Stash Learn.

Tucked away in the $1.4 trillion spending bill that Congress passed at the end of 2019 is something called the SECURE Act, short for “Setting Every Community Up for Retirement Enhancement.” The act will increase the age at which retirees are required to start taking money out of retirement accounts such as IRAs and 401(k)s. It also eliminates age limits for making contributions to these plans.

The changes could help to address a retirement savings crisis, according to reports, as well as provide more time for people to save as they live longer and work longer.

Changes for 2020

Here’s a look at what’s changing for retirement plans, starting in the 2020 tax year:

RMD age increase: The new law increases the required minimum distribution (RMD) age to 72, from age 70 ½. An RMD is an amount you’re required by tax law to take out of a retirement account each year, based on an Internal Revenue Service (IRS) formula, once you’ve reached that age. The new law applies to people who will turn 70 ½ after December 31, 2019.

Repeal of age limit for contributions: Previous rules allowed people to put money into their retirement accounts until age 70 ½, after which the IRS required them to withdraw money. The new law removes this age restriction, and lets people contribute as long as they earn income from wages.

Annuities: The law will allow employer-sponsored workplace retirement plans to offer annuities. Annuities, which are contracts between insurance companies and investors, can provide a fixed amount of income in retirement, but generally require monthly or bulk payments over a period of time before payouts begin. Annuities are considered somewhat controversial due to their expenses and often limited payouts, according to some experts.

The law has additional provisions that could help consumers in other ways.

For example, people will now be able to  use up to $10,000 from a 529 account to repay student loan debt. A 529 is an education savings vehicle that allows consumers to save and invest money on a tax-deferred basis. Similarly, people will be able to withdraw up to $5,000 penalty free from an IRA or 401(k) for expenses related to the birth or adoption of a child. (Consumers will still have to pay taxes on the withdrawn amounts, according to reports.)

The changes to IRA and workplace retirement plans follow IRS contribution limit increases to 401(k)s for 2020.

More about retirement accounts

IRAs and 401Ks are both tax-advantaged retirement accounts that could help you save for retirement.

You typically have access to a 401(k) through an employer, who may also provide an employer-match benefit, whereas anyone can open an IRA by setting up an account at a bank or brokerage.

Both accounts can allow you to save for retirement by investing in products such as CDs, stocks, bonds, and other securities. Both IRA’s and 401(k)s come in two flavors—traditional and Roth.

You can learn more about 401(k)s and IRAs here.

Save for your future

Saving for retirement can be an important part of a comprehensive financial plan, which can also include setting short-term and long-term goals for your money. Short term goals can include creating a budget, setting up a savings account for unexpected expenses as they arise, as well as building an emergency fund with three to six months worth of expenses for unexpected life events such as medical bills or layoffs.

Longer-term goals can include investing, and saving and investing for retirement.

Check out Stash’s financial checklist for 2020 to help you get started planning your financial life this year.

The post What’s Changing for Retirement Accounts in 2020 appeared first on Stash Learn.

But it’s often the things we need to take care of right now that can give us trouble. Life happens, and unplanned expenses arise. Even things like weddings and holiday gifts can affect our financial lives.

That’s why Stash is introducing something called Spending Cushions. It’s a way to separate your debit account into two different buckets, so you can create a place for short-term savings* that can help you plan for the near future.

Short-term savings can be used for things like a repair after you accidentally drop your phone and crack the screen, or for the vet bill after your puppy has eaten a box of crayons, or even that special dinner out to celebrate your child’s high school graduation.

How Cushions work

If you have a Stash Debit card, you can use the app to create a cushion. Simply go to the debit settings, and tap on the Create Cushion prompt. That will set up a special partition for your short-term savings. You can then transfer in as much money as you like, as often as you like. You can even set reminders for when your cushion gets low, to transfer money in again.

The money is always there for you to use. Simply transfer it from your Cushion to your Stash Debit account. Transfers are immediate, so you don’t have to worry about delays in using your money.

With Cushions, you can always be sure you have the savings you need to meet your short-term expenses when they arise.

We’re really excited to introduce you to Cushions, our newest banking feature. We hope it will help you save money in the short run, while you plan for the financial future you want.

The post Get Comfy with Spending Cushions! appeared first on Stash Learn.

But just how stressed—and why—may surprise you.

It turns out that 62% of U.S. consumers say that money is a major source of stress, with 31% saying they lose sleep and feel stress over finances all the time, according to a new survey by Stash. The poll of 1,411 people, age 18 and older, in April 2019 also found that people are embarrassed to talk about money, and that silence could prevent them from understanding their financial situations, according to other reports.

Here’s what we found.

Don’t want to talk about it

People say that just talking about money is a big stressor, and it’s not because people think money talk is taboo, as older generations might think:

• More than a third of survey respondents say they don’t want to talk about money because they’re embarrassed, and think they are worse off than their peers.
• Another 33% say it’s because it upsets them too much.
• Nearly a quarter of those surveyed say they’re ashamed of their financial habits.
• Only 13% say it’s because they find the topic taboo or impolite.

Money stress is real, the survey found. Nearly a third of people say they’ve missed a monthly payment in the last year, such as rent or a cable bill. And for people who have missed a payment, more than half say they missed not just one payment, but two to three payments in the last 12 months.

What’s more, stress about money holds back nearly two thirds of U.S. consumers from doing basic things, like going out with friends and family, going on vacation, and dining out, the survey found.

Women and financial stress

Women are more likely to talk about money stresses than men, by a margin of 10 percentage points. Similarly, they are also more likely to say they have forgone a home repair, wedding, birthday or vacation because of money stress, by a margin between 5 and 12 percentage points.

Money stress by age group

• Generation Z (between 18 and 24 years old) and Millennials (between 25 and 38 years old) are nearly 15 percentage points more likely to say money holds them back from doing things with family and friends.
• Generation X, (between 39 and 53 years old), are 10 percentage points more likely to say they are in debt than other age groups.
• If they were free of debt, 20% of Gen Zers and 23% of Gen Xers would increase contributions to their emergency funds, more than a quarter of Millennials would go on a vacation, and 25% of Baby Boomers (between 55 and 75 years old) would increase their retirement savings contributions.

Talking about money is important

Remember, having an open discussion about money and money stress can help you not just to alleviate money anxiety, it can also potentially help you get a well-deserved raise, or prevent you from spending money you don’t have.

Being honest about money can also help you come up with a financial plan that could include saving more money, investing, and building wealth.

The post No One Talks About Money, Everyone Stresses About It appeared first on Stash Learn.

Let’s consider how some of the most important TV show characters might advise you on how to invest your very own coin(s). Of note: we’re working with the TV series, and not going into the world of the books.

Cersei

Cersei looks great in a shame-based pixie cut or unnecessarily long braids, but she also shows a certain moral and fiduciary flexibility.  She’d be the type of certified financial planner (CFP) to tell you that you’d be a fool to waste even a cent on needy, pathetic relatives who ought to pull themselves up by their own bootstraps. But once in awhile, she’d surprise you by urging you to donate to a truly worthy cause like a reputable children’s charity. And then she’d call you ugly and fire you as her client.

Tyrion

Tyrion himself succeeds Lord Baelish as Master of Coin under King Joffrey, and discovers to his dismay that Baelish put the kingdom into heavy debt to the Iron Bank. Tyrion ends up leaving his post when he’s unjustly accused of murdering King Joffrey (thanks, Olenna Tyrell—RIP, you badass.) But one can assume that Tyrion would tell you that borrowing heavily on credit is a slow but steady track to an unnecessary amount of stress.

Daenerys

Can Daenerys actually count? I’m not sure. But she says words with great conviction while various persons of lower status do the actual work for her, so that’s nice. Daenerys has been through real trauma but she’s a great example of how people born with a lot of privilege will always find other people (and winged creatures) to do the heavy lifting while they look pretty. She has some interest in equal pay for equal work, and certain labor protections, so she’d remind you to pay your union dues.

Jon Snow

Much like his dearly beloved Auntie Mother of Dragons, Jon Snow is very attractive and good at saying words with a specific facial expression. This is the guy who gives until it hurts, and then gives some more. He’d likely tell you to do the same, but remember that when it comes to emotional energy and money in the bank, you’ve got to manage your generosity so that you don’t burn out or wither away.

Arya

Arya is frugal, tough, and nearly fearless. She’s also sometimes unhealthily obsessive as she pursues her goals. This is a person who would monitor the NYSE, the NASDAQ, and the overseas stock exchanges constantly, chanting the names of your primary investments over and over again to herself. She’d be a tireless advocate for you, but she’d also call you at all hours of the night to discuss strategy. But if you’re into the dangerously intense approach, sure, hire her. Just don’t cross her.

Wildlings/Free Folk

How would these sexy, occasionally violent free-range hippies deal with modern personal finance? I guess they’re a great option for advice if you’ve got a truly edgy side and love to take risks. Put that hot bearded redheaded bro in a suit and tie, and let him convince you to invest in his cousin’s bow-and-arrow start-up. You’ll probably have to listen to said cousin tell you all about how he once met Elon Musk on “the playa” at Burning Man, but hey, maybe you’ll make a million bucks (you won’t).

White Walkers

Wow, do you hate yourself? Then you’re in luck—this financial advisor hates you too! Hire a White Walker to figure out your investment strategy and you’ll find your credit tanked and your bank account empty. Also, your identity will be stolen and you might die. There are a lot of cheats, con artists and miscreants out there, and those who don’t call themselves “life coaches” are probably calling themselves “financial planners.” This is why you need to find yourself a CFP with a proven track record.¹

So, while characters can illustrate life themes, don’t look to Game of Thrones for financial lessons.  Instead, research your financial advisors, whether they are Certified Financial Planners (CFPs), certified public accountants (CPAs) or just bestselling authors with cool-sounding ideas. And have fun this season. Because this spring, we’re gonna have one hell of a winter.

The post Sex! Blood! Dragons! Money? (GoT is Here) appeared first on Stash Learn.

Investing can seem very complex. There are a staggering number of investments out there, lots of acronyms and other jargon, not to mention all the silly metaphors (“headwinds” are … bad?)

Once you start investigating it, the next thing you might realize is that, given all of the recent advances in technology, these days a “financial advisor” might not even be a person at all.

So-called “robo-advisors”—automated, algorithmic, computer-based investment solutions—are all the rage. So do you need one of those too? The answer, of course, depends a lot on you: Your investment/life goals, the amount of money you have (and are willing to spend), and even your personality all play a role.

What does a financial advisor do?

“Financial advisor” is a broad term for someone who helps you manage your money.

This potentially includes stockbrokers, insurance agents, money managers, estate planners, bankers, and more. They may hold various credentials, like a Series 65 license or a registered investment adviser certification, which requires them to act in their clients’ best interest.

A “financial planner” is a type of financial advisor who helps companies or individuals create a program to meet their long-term financial goals. They might have a specialty in investments, taxes, retirement, and/or estate planning, and they also may hold various licenses or designations, like a certified financial planner.

In a basic sense, a financial advisor’s role is to help you plan for the future and achieve your financial goals—in the short term, yes, but especially in the long term.

Sitting down with a financial advisor

This usually starts with a conversation. You go into their office, sit in a (hopefully) comfy chair. They offer you a glass of water, maybe even a coffee. Then it’s time to get down to business.

They will want to know things like how much money you plan to invest; whether you have significant short- or medium-term financial goals, like buying a car or house, or getting married; what your long-term goals are and when you plan to retire. That’s an increasingly loose concept these days, which is why it behooves young people to get a handle on this stuff early!

They will also likely try to gauge your “risk-tolerance,” or how willing you are to possibly lose money in order to make money on your investments.

In other words, are you interested in investments that are designed to capture higher returns than average, but may also come with a greater risk of losing money? (Stocks, in general, fall into this category, and certain sectors, like emerging markets, are especially prone to high-risk/high-reward fluctuations.) Or would you prefer investments designed to let your profits accrue more slowly, without taking on as much risk? (In which case, they will likely design a portfolio weighted more toward stocks in historically stable markets and sectors, such as blue chips and consumer staples, as well as bonds).

Bear in mind that when we say “stocks,” we don’t mean they will pick individual stocks for you.  For new investors, a financial advisor will likely recommend some mixture of mutual/index funds and ETFs that are designed to invest in wide swaths of the stock market at once.

Understanding your robo-advisor

If you choose a robo-advisor instead, the process will be similar—there just won’t be an actual person involved.

You’ll be asked to fill out various questionnaires on a brokerage’s website, answering the same kinds of questions a human financial advisor would have asked. Then a computer program will algorithmically assemble an investment portfolio for you, based on your financial goals and time horizon. Robo-advisors usually have lower fees, by the way, because they are automated.

A robo-advisor may not be for everyone. In any case, lots of people still prefer human interaction, especially when it comes to finances.

Money management can be a very emotional topic, and a warm handshake and friendly smile go a long way. And if you do crave the cold, calculating efficiency of a computer, keep in mind that a human financial advisor will likely be using a lot of the same algorithms to assemble your investment portfolio that a machine would. They may recommend periodically rebalancing your investment portfolio as well.

OK, I’m intrigued. But is a financial advisor worth it?

Once again, it depends. The idea of “worth” can be taken a couple of different ways.

Financial advisors will charge you a fee for their services. There are various fee structures, including a flat fee, an hourly fee, or a fee based on a small percentage of your portfolio.

But if you are actively interested in investing and want to dedicate time to researching financial concepts and managing your own portfolio, you might not want to pay someone else to do it. In that case, no matter how small their fee might be, it wouldn’t feel “worth it.”

Planning your own investments can be enjoyable and rewarding. If you want to take a slow-and-steady approach—the kind a financial advisor might recommend, for instance—there are lots of low-cost index funds and ETFs out there that could do the trick.

Stash makes it easy to get started. Bone up on strategies at Stash Learn. You can even do retirement planning on your own—and no, it’s never too early to start! Stash Retire lets you open a Traditional IRA or Roth IRA with a $5 account minimum and low monthly fees.

The post Do You Need a Financial Advisor? appeared first on Stash Learn.