For more than 30 years we’ve been strong proponents of financial success through education. We teach classes, host seminars, run an active blog and write a weekly market commentary. We hold the industry’s highest credentials, including the CFP®, CFA®, CMT®, and CPA because we respect both our clients and our fiduciary relationship with them. That’s why we’re so appalled by item 61 in the Wisconsin state budget, which expands the types of financial products a payday lender can sell, including insurance, annuities and other financial products. It is hard to imagine a more complicated financial product than an annuity and a less suitable person to break it down for consumers than a pay day lender. Consider the nature of the pay day loan business model, which lures clients in with the promise of immediate cash inflow, charges exorbitant interest for that privilege, and then hopes for a cycle of repeated loan requests. According to a report from the Consumer Financial Protection Bureau, over 80% of payday loans are rolled over or followed by another loan within 14 days. This results in a digital debtor’s prison in which consumers have little hope of breaking free. Clearly, the very first piece of advice any reputable financial advisor might give a client is to avoid doing business with a payday lender. That these same lenders should offer financial advice, sell insurance products, and vet investment opportunities strikes us both absurd and dangerous. We urge the Wisconsin legislature to reconsider this proposal and, should this budget remain intact, we stress again the importance of seeking financial advice from a reputable professional, preferably one with a fiduciary responsibility to his or her clients.
financial planning
Latest Favre headlines champion strong work ethic
Say what you will about former Packer quarterback Brett Favre, but, if a recent article featuring his oldest daughter Brittany Favre-Mallion is any indication, the man and his wife Deanna have done an excellent job raising their daughters. The article celebrates Favre-Mallion’s law school graduation and offers important insight into her motivation. “Mom’s dream was for me to be self-sufficient,” she says in it. “She wants me to be financially independent, but mostly she just wants me to have something that I’ve earned, that no one can take away from me.” With a widely reported net worth of $100 million, the Favre’s could have allowed themselves to fall into the same parental snare that traps other wealthy people — the belief that wealth would be enough to protect their daughters. Instead, from a young age, the couple championed a strong work ethic. In the article Brittany recalls a Saturday morning when she was in high school and her dad woke her up to go for a run. “I told him he was out of his mind if he thought I was going to get up for a run,” she recalled. The Pro Bowl quarterback responded with a life lesson for all of us. “I don’t want to go for a run today, either,” he said. “But you know those guys that’ll be chasing me around on the field in a few months? They’re running today.” That morning talk made a lasting impression on Brittany. “The most important lesson I learned from my dad is that at the end of the day, you just have to put in the work. There’s really no way around it,” she says.
We’re spreading the word
In an industry dominated by numbers, we honored words yesterday. Words have power and we understand that. Outside the office, we are musicians and song writers, parents and coaches, writers and artists, pet owners and friends. In those capacities, we choose our words carefully and celebrate the abundant resources of the English language. We understand that words matter, and so do the manner and tone with which we use them. Once again this year, we joined the “Spread the Word to End the Word” campaign by Special Olympics. We support the efforts to stop using the word retarded in a derogatory manner, or as an absent minded expression of exasperation. Yesterday, we wore T-shirts to demonstrate our collective appreciation for this cause. Our tools as financial planners remain rooted in numbers — percentages of growth, levels of risk tolerance, ages, income levels, and life expectancies. But, our success relies on relationships and the words we chose to build them. Words can heal or hurt, comfort or curse, educate or offend. We see this every day in the families we counsel and classes we teach. Yesterday, we all wore T-shirts (even the investment guys, some of whom felt wildly uncomfortable in an office setting without a stiff collar against their necks) and took a stand to end the use of one word. Though the campaign lasted just one day, our efforts continue throughout the year. We vow every day to choose ours words as carefully as we monitor our numbers. Respect. Inclusion. Unity. Acceptance. Friendship. These words form the basis of the Spread the Word campaign, and these are the standards to which we’ll hold ourselves as well. At Winch Financial, we’re investing for all seasons, and building relationships for life.
You need at least seven of these things in your life right now
My dishwasher just broke. I am currently hand washing everything until I can get around to buying a new one. I don’t mind doing dishes, so it’s not that hard for me to deal with, but the rest of the household does not like it. I feel that it is a great way to zone out and think. I seem to do my best thinking while my hands are busy with something that does not take a great deal of brain power. This morning while washing the coffee cups, my mind drifted to the question of what do I really need to be happy. It’s funny. I have been writing loads of Christmas cards and wishing everyone a Merry Christmas and a Happy New Year and hopes for joy and love and good health and such. I do wish all of those for my family and friends, but what do we actually need? If they are anything like me, what they really need are at least seven of the following: ~ A challenge that is neither life threatening nor dreadfully painful but that helps you grow ~ Some form of creative expression ~ Work that keeps your mind very active and gives you the feeling of accomplishment ~ Walking, running, swimming, biking, yoga-ing, fencing, anything that makes your body move ~ At least three people in your life that tell you how much they appreciate and love you, regularly ~ The ability to travel, whether it is to another country or to another place in your imagination ~ Some form of creative inspiration ~ A luxurious bed with comfy sheets and a cozy pillow(s) ~ Quiet time to sit down and sincerely give thanks for the beauty and bounty in your life ~ One song that simply makes you dance (hopefully at least once a week – maybe even by yourself) ~ Something or someone for whom you can volunteer… | Read More »