Paying it Forward - Helping the next generation

[frayne]

As the above posts indicate, as much as we would like to share and "pay forward 'our knowledge, many just are not seeking that interested. In fact, that is part of the reason many of us have found success in personal finance - we do (or attempt to do) what the majority of others are not doing, and that is what makes the difference.

Bingo !

 

[Eastbayboy]

She could do a lot worse than this one:

https://www.amazon.com/Little-Book-...r_one_browse-bin:John+C.+Bogle&s=books&sr=1-1

Never saw this one! I may even give one to her brother! Thank You!

 

[Eastbayboy]

I pulled my elderly mother from the clutches of a Morgan Stanley "advisor".

He better never step out in front of my car. I get easily confused about which pedal I'm supposed to push.

Hahahah It would be more funny if it as not a financial train wreck!

My wife’s ex got her into Morgan Stanley… I was awe struck of the many trades at $1200 he made in a month. It was all about churn! It was just a disaster for her and a income stream for him. Im trying to talk to my stepson getting out of Morgan Stanley and he is not motivated yet after 12 years with this douche.

I still get angry just thinking about it.

 

[Eastbayboy]

[FONT=&quot]
"If You Can" by William Bernstein https://www.etf.com/docs/IfYouCan.pdf (free 16 page download)[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]"The Coffee House Investor" by Bill Schultheis https://www.coffeehouseinvestor.com/ (This is Bill's first book; read it before reading his second one.)[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]"The Bogleheads Guide to Investing" by Taylor Larimore et al https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365[/FONT]

I’ve always admired Jack Bogle for his simplistic advice of investing. This book is high on my hit list. Since his passing, the financial world lost a giant amongst us.

The Coffee House Investor, Is one I’ve never seen. So it is a two book read. I am hoping she will read one!

The William Bernstein is a short one for her to read. That may be a good launch point for her.

Thank you for taking the time posting these suggestions!

 

[target2019]

Thanks all for the feedback. I may need to dig more at the civic level. I looked at the Ramsey program, but not my gig. I here ya on the realities often of "leading a horse to water, but can't make them drink". Perhaps I was just odd when I was younger and had an interest in FI. Unfortunately, my parents had limited experience so I read allot of self-help books and taught myself. Had a seasoned mentor who had "made it" offered to help me a s a young man, I think I would have jumped all over it. I think I would be more effective helping individuals or young couples on a one on one basis over a period of time as opposed to teaching a class to students. I seem to remember someone telling me about a national organization where retired professionals offer free consulting services based on their expertise??

I think you're on the right path, just considering young couples. When I taught computer classes at a community college, the better students were young, married, and working.

I would be careful, though, of the risk and liability going into an advisor role as an independent. As you know many citizens are sue-happy, and good intentions can place a target on you. Seriously think of working through a school, religious organization or community college.

SCORE is small-business oriented, I see.

 

[OldShooter]

... I think I would be more effective helping individuals or young couples on a one on one basis over a period of time as opposed to teaching a class to students. ...

As long as you are not getting paid and you are not selling anything you are probably good to go versus the securities regulators. You might want to review the rules a little bit, though. If you take money I think you become an "investment advisor" and a whole boatload of rules arrives on your doorstep. https://www.sec.gov/about/offices/oia/oia_investman/rplaze-042012.pdf

 

[Exchme]

I put on a session for the company where I worked as part of a "lunch & learn", so I would actually start there - you have internal credibility and some knowledge of who to contact to get an audience.

For the session, there were a mix of ages and incomes in the audience, so I talked about the importance of saving, importance of term life insurance for young families, the effect of fees, how markets have gone up over time, importance of participating in the company 401K to get the match, plus a light touch on basics like SS benefits and claim strategies. I included a bit about how the financial industry makes it seem mystically complex, when it's more important to just get started and all you really need is the sort of Boglehead philosophy of broad based index investing in stocks and bonds.

It was very well received, though you have to remember that at best you are planting the seeds of ideas, it's unlikely that anyone changes behavior solely from one short talk.

 

[Walt34]

I want to help educate her in personal finances and was interested in finding a good book.
Any suggestions for a Millennial?

These are the ones I sent to a millennial niece. She actually read them and has acted upon the knowledge gained! Would that all my nieces and nephews were that smart. Sadly, such is not the case.

Anyway, the books:

The Millionaire Teacher by Andrew Hallam

How a Second Grader Beats Wall Street by Allan S. Roth

If she doesn't read anything else read these two. They are easy reading.

Predictably Irrational by Dan Ariely – I found this very interesting! For example, people will almost always say that coffee served from a silver service into fine china cups tastes better than coffee served from a glass pot into a styrofoam cup even though the coffee was brewed in the same pot! Although a bit more sophisticated in marketing, this is how Starbucks makes their money. And lots of it!
The Millionaire Next Door by Thomas J. Stanley and William D. Danko. This is a classic and although the numbers are somewhat dated the principles most definitely are not.

The Four Pillars of Investing by William J. Bernstein

Why Smart People Make Big Money Mistakes by Gary Belsky & Thomas Gilovich

Your Money & Your Brain by Jason Zweig

The Investor’s Manifesto - Preparing for Prosperity, Armageddon, and Everything in Between by William J. Bernstein

A Random Walk Down Wall Street by Burton G. Malkiel – Updated frequently, this is a classic and a must-read.

 

[Eastbayboy]

These are the ones I sent to a millennial niece. She actually read them and has acted upon the knowledge gained! Would that all my nieces and nephews were that smart. Sadly, such is not the case.

Anyway, the books:

The Millionaire Teacher by Andrew Hallam

How a Second Grader Beats Wall Street by Allan S. Roth

If she doesn't read anything else read these two. They are easy reading.

Predictably Irrational by Dan Ariely – I found this very interesting! For example, people will almost always say that coffee served from a silver service into fine china cups tastes better than coffee served from a glass pot into a styrofoam cup even though the coffee was brewed in the same pot! Although a bit more sophisticated in marketing, this is how Starbucks makes their money. And lots of it!
The Millionaire Next Door by Thomas J. Stanley and William D. Danko. This is a classic and although the numbers are somewhat dated the principles most definitely are not.

The Four Pillars of Investing by William J. Bernstein

Why Smart People Make Big Money Mistakes by Gary Belsky & Thomas Gilovich

Your Money & Your Brain by Jason Zweig

The Investor’s Manifesto - Preparing for Prosperity, Armageddon, and Everything in Between by William J. Bernstein

A Random Walk Down Wall Street by Burton G. Malkiel – Updated frequently, this is a classic and a must-read.

The Millionaire Teacher by Andrew Hallam Seems like a good fit. I read the reviews and there is humor without talking down to the reader. I just ordered it. Thank you for this gem!

 

[pjigar]

Now, I know better; plenty of people know exactly what they need to do, they just won't do it.

Bingo!


As we say in Texas, you can lead a horse to the water but you can't make it drink.

 

[pb4uski]

I haven't read every post, but I think that there are organizations that provide financial counseling to those serving in the military that might be worthy of considering.

 

[DawgMan]

I haven't read every post, but I think that there are organizations that provide financial counseling to those serving in the military that might be worthy of considering.

That sounds interesting. Frankly, my other passion was getting involved in a military veteran/first responders organization. I am a big supporter in the Tunnel to Towers organization, but somehow marrying the 2 might be ideal. Was there a specific organization you are aware of?

Thanks.

 

[DawgMan]

As long as you are not getting paid and you are not selling anything you are probably good to go versus the securities regulators. You might want to review the rules a little bit, though. If you take money I think you become an "investment advisor" and a whole boatload of rules arrives on your doorstep. https://www.sec.gov/about/offices/oia/oia_investman/rplaze-042012.pdf

Agreed. Need to be sensitive to liability issues.

 

[artsy-B]

Personally, I think your market is Very Small.
Who has loads of discretionary income lying around for investment.
You are coming from a lens of privilege.

75% of people--young and old are struggling to just survive. There is nothing left after expenses to invest.

Find out where your limited market lives (Twitter? Neighborhood? Facebook? Instagram clips?) and talk to them.

n=1

 

[winyaz]

If you are trying to reach young people, your best bet might be to meet them where they like to receive information, on Youtube or other social media.

 

[PointBreeze]

If you get involved with organizations you could eventually become the Treasurer. Most folks do not have the interest or knowledge to do the job well.

I'm now Treasurer for two homeowner associations, and have developed extensive Excel workbooks to keep track of the financials. I have also started learning Excel VBA programming to automate some of the manual data entry I had been doing. I've wanted to learn VBA for several years and only recently have had the time to invest. The time spent learning VBA will pay for itself in time savings eventually.

Excel VBA is a blast. Totally agree that time spent learning it will pay off.

 

[imnontrad]

I am "paying it forward" by funding 529 accounts for grandkids so their parents don't have to.
I volunteered to lead a "Financial Peace University" class once. But I got such a backlash from those who could not separate the message from the messenger that I have not done it since.
I am thinking about contacting the local HS NROTC instructor to see if he would want me to help him/her set up a financial literacy course for the students. My particularangle is helping them identify ways they can be entrepreneurs.

 

[money4wells]

A few years ago I researched AARP's program that did personal finance courses. They had a whole curriculum you had to follow, it wasn't freestyle. I just checked on it and it looks like it was put on hold for Covid, but they expect it to come back:
https://www.aarp.org/volunteer/causes/financial-security/

I have looked into this whole concept quite a bit. Retiring early at 57 in 18 days, so will have more time to dig deep!

I have done a ton of mentoring through my daughters and their friends, at their schools in high school(and was appalled at the lack of knowledge). I work in tech, so always informally mentoring younger people. I have looked into creating e-books or videos, the would probably be the way to make money doing it. I looked into switching careers many years ago to a Financial Planning, and quickly found that it was mostly selling products that weren't in the best interest of the client.

I like the one on one in person aspect of it though. Maybe from my consulting background, it just feels more rewarding. I have looked into doing it from a non-profit perspective, not making money, donations to the non-profit to keep it going, eventually expanding to bring in other teachers. Also at a for-profit way, but not making much. Perhaps a percentage of the amount I saved them by increasing income and reducing expenses(so if they were paycheck to paycheck when starting, and I got them to saving $1000/month, I would get 10% of the $1000/mo for a year, or something along those lines. I doubt I will make much, since this clientele doesn't have much. But I would be ok with that, as long as I was helping people. And could limit it to as little or much as I want.

Definitely would love to hear any other ideas!

 

[FLJim]

I have been moving from semi-retirement to now basically fully retired over the last 2 1/2 years, which has been good for me. Having just turned 58, I feel like I am in a good place relative to being at peace with my former A driven/competitive work personality and also filling my hobbies and travel buckets, however, I continue to struggle with finding some ways/organizations/structures in which I can keep the mind stimulated, match my passions, and make a little difference in the world. Like many folks on this forum, I enjoy finance and the various strategies in the pursuit of FI. What I have learned over the years from talking with many of my peers is very few people are either interested in this stuff or have learned the basics and most just rely on what their "guy" tells them to do as it relates to retirement/FI. I actually dig this stuff and find it comes pretty easy to me... like many here on this board. In a perfect world, I would like to carve out some of my time to help young adults/families and recent college grads understand this stuff so they too can hopefully have opportunities FI affords, especially at a younger age. I have spent some time exploring ideas on line and at my church, but nothing yet has hit the strike zone.

For those of you that might have pursued something like this, what structures/organizations did you choose (i.e. blogs, podcasts, church, civic, other)? My only sensitivity is not over volunteering where it starts to feel like a full time job. Ideas? Experiences?

There is a GIANT need out there for what you are offering. Problem is, those that need it the most do NOT know it. I grew up 'normal' which might be considered 'poor' today. Father gave me some basic lessons in personal finance and saving/investing. It became my hobby; decided that 'get rich slow' might work (it DID!) and 'get rich quick' would not. Today's "kids" want it all, and they want it now. Save for something? No way. Charge it. Build an investment portfolio that might be 7-figures in 25 years? No way - 'I could be dead by then'. Too many parents continue to subsidize bad behavior by their offspring. Maybe that is the problem. But finding a willing 'student' will be your biggest challenge. IF you find one or two, you could have a big impact on them. Good luck and thanks for your wanting to help out those who may need it.

 

[Walt34]

I volunteered to lead a "Financial Peace University" class once. But I got such a backlash from those who could not separate the message from the messenger that I have not done it since.

Could you elaborate some on the backlash you received? Was it from those who just would not or could not imagine not having the immediate gratification that easy credit gives them?

 

[Gumby]

This article in today's New York Times says that young people are disinclined to save or invest due to the troubled nature of the world today.

https://www.yahoo.com/news/worlds-mess-theyve-stopped-saving-141832448.html

In a tumultuous time, many adults under 35 have stopped playing it safe. Instead of banking as much of their pay as they used to, they’re saving less, spending more and pursuing passion projects or risky careers.
....

The shaky state of the world was on her mind. “I’m not going to deprive myself some of the comforts of life now for a future that feels like it could be ripped away from me at any moment,” she said.

The future has always been uncertain, and this sounds like rationalization to me, but what do I know?

 

[Walt34]

The future has always been uncertain, and this sounds like rationalization to me, but what do I know?

It sounds like rationalization to me too. I am hard put to think of a time more uncertain than WWII when the outcome was far from certain, but people did make long-term plans even then.

 

[FLJim]

It sounds like rationalization to me too. I am hard put to think of a time more uncertain than WWII when the outcome was far from certain, but people did make long-term plans even then.

There is always an excuse why people will not do the hard stuff. And then they complain because the outcomes are not palatable.

 

[jollystomper]

It sounds like rationalization to me too. I am hard put to think of a time more uncertain than WWII when the outcome was far from certain, but people did make long-term plans even then.

True, but IMHO there are so many situations blown out of proportion to "scare" people emotionally that I am not surprised and understand, in a way. In addition, little is done to showcase "hope" outside of the context of victimhood.

 

[Mytimenow]

Teaching Young People About Finance - Junior Achievement

Junior Achievement is a great organization that focuses on entrepreneurship and financial education of young people. They welcome volunteers for teaching. I taught a class to elementary school students about starting businesses. Give them a try.