As I noted last week, I attend many webinars (and podcasts) these days, to learn new information and stay connected to others while staying safe at home. I love to learn and online access to free content has provided many useful educational opportunities. During January, I attended over a dozen programs from a variety of sponsors.
Below is
an eclectic summary of ten more key take-aways that I wrote down in my personal
learning journal:
¨ COVID-19 Silver Lining- The pandemic “leveled the playing field”
with respect to working remotely. Companies hired people who would not have
applied (or been hired) before because they needed to be physically present in
a “brick and mortar” location. This has been great for military spouses and for
me, also. I recently started a financial education project for a New Jersey
client for delivery on Zoom from Florida.
¨ The Importance of Showing Up- To succeed in life or a career, people
need to show up, be brave, and “put yourself out there.” Sometimes, winning
occurs just by showing up and trying. I keep this in mind every time I attempt
to book an online COVID-19 vaccine appointment. Showing up and accepting a
challenge is way better than not making an attempt to succeed and wondering
what would have happened if you had tried.
¨
Financial
Education is Life-Changing- Concepts taught in personal finance classes (e.g., saving money,
inflation, compound interest, and managing risk) can change the trajectory of a
student’s life. Students have one big resource that older adults lack: more
time for their savings/investments to grow. The best financial education
teachers are those who have engaged with their own personal finances (i.e.,
they “walk their talk”).
¨ “Femenomics” is Real- I heard this term for the first time on a
webinar sponsored by the Center for Financial Social Work. It encompasses a
myriad of financial challenges that women face, including lower earnings and
longer life expectancies, on average, than men and primary care-giving
responsibilities. “Equal Pay Day” is how much longer women must work into
another year to equal the average white man’s pay on December 31.
¨ Several Future Predictions- U.S. savings rates grew meaningfully in
2020, which has led to forecasts of a spending boom on discretionary items
(e.g., travel) by those who were financially unscathed by COVID-19. Much of
this “excess savings” is sitting in checking accounts. There are also
expectations of future tax policy changes, but taxpayers can only develop
financial plans based on what we know about tax laws today.
¨ Charitable Gifting Incentives- Many financial advisors are recommending
outright gifts or charitable trusts to clients. Two reasons are 1. the highest
U.S. estate tax exemption ever ($11.7 million in 2021) is only slated to last through
2025 under the Tax Cuts and Jobs Act and 2. the lifting of the 60% of adjusted gross income (AGI) cap on charitable contributions by
taxpayers who itemize deductions in 2021 for coronavirus relief.
¨ Estate Planning is Critical- With about 450,000 deaths reported due COVID-19, there is urgency to
prepare three key legal documents: will, living will, and durable power of
attorney. Once documents are prepared, review them every 3-5 years or sooner as
a result of life events. Planning for “what ifs” in life is so important
because nobody knows what the future holds. Without estate plans, your state
has a “one size-fits all” plan.
¨ “Financial Numbness” is Common- In 2020, “everything stopped, but
nothing stopped.” Many people moved into “survival mode” and stopped planning
ahead due to fear and/or stress. It seemed “safer” to just postpone things. In
2021, we need to move forward. Recommended strategies to address stress include
breathing, shortening task lists, adjusting expectations, exercise (especially
outdoors), reframing events, and gratitude.
¨ Shame
Prevents Positive Action- With the possible exception of unemployment,
nothing stops people from making financial progress more than shame. The key to
addressing negative financial patterns is awareness. Many counselors have
clients create a “money biography,” which is their story of money use from
early childhood to current time. Biographies can help people trace their
behaviors back to underlying emotions.
¨ College Application Trends- There was a decrease in college
applications from first-generation students and a decrease in FAFSA form
applications (for student financial aid) in 2020. Missed deadlines were also
reported frequently. A national organization (and its state affiliates) called
Education Finance Council (EFC) can help students and their families file a
FAFSA form. For more information, visit https://www.efc.org/.
No comments:
Post a Comment