Removing the Stress and Confusion of Family Money Matters
Charles Schwab, founder of one of the nation's largest financial firms, and his daughter Carrie Schwab-Pomerantz write that having honest discussions about money and investing is crucial to a family's financial health. Their goal: to take the stress and confusion out of money matters. Together, they place solid financial advice into a family context, and provide many ways families can discuss investments and financial planning. As two working parents who both have many years of experience in the investment field, they have much to say in It Pays to Talkabout creating a successful investment strategy and money-management plan for the family.
It Pays to Talk covers the fundamental principles that every long-term investor needs to understand about building family wealth, joining forces in marriage, investing for a child's future and raising money-savvy children, retirement and estate planning, and dealing with the unexpected. Along the way, they provide tips on how to talk gently, intelligently and respectfully with other family members about the many issues that shape people's attitudes about personal finances and investing.
An Honest Relationship With Money
To create an open and honest relationship with money and financial matters, the authors explain that a family must understand what money represents. They write that money is often tied up with our deepest emotional needs, such as security, success and confidence, as well as our fears, such as failure, inadequacy and poverty. It is also connected to our sense of self worth and identity. They remind readers that financial decisions are often shaped by emotion rather than logic or research.
To get our money to work for us, the authors write that we must first come to terms with our priorities and discuss these priorities with those closest to us. We must then identify our dreams and establish concrete financial goals so we can turn our dreams into reality. To do this, the authors write that we must focus our thoughts, organize our paperwork, and then write down our plans to enhance the likelihood that we will achieve these financial goals.
The authors look into the power of joining forces through marriage and provide many ways couples can make the most of dual incomes. The benefits of a prenuptial agreement are also outlined along with a rundown of what should and should not be included in one.
The authors write that it is crucial to look at how your current financial picture influences the financial attitudes that are passed on to your children. They also discuss the importance of teaching them the value of money early; how to distinguish between an impulsive want, a deep-seated desire and a need; and understanding how to budget money wisely.
The authors explain the best ways parents can invest in a child's future and their own retirement, and how to get through the language and technical barriers of estate planning. They also teach investors how to prepare for the unexpected with tips about health insurance, Medicare, life insurance, and long-term coverage, as well as questions to ask before purchasing plans.
Why Soundview Likes This Book
It Pays to Talk provides straightforward advice about planning for the future and making the most of a family's money. The authors' tips and tactics create a firm foundation on which the discussion of family money matters can begin and offer answers to the questions that will arise when getting down to the nuts and bolts of long-term investing and meeting the financial goals of couples, children and parents alike.