Business

How to protect your wallet and wallet


OWe talk to Kelly Milligan, Managing Partner at Quorum Private Wealth, about the importance of financial literacy and how best to position your portfolio and protect your portfolio during this time. Kelly also discusses why it’s important for business students to have financial literacy and what common misconceptions about finance or money are.


Why is financial literacy and education important today?


Basic financial literacy is often overlooked in school curricula. Most adults don’t know the basic strategies to simplify, organize and optimize their financial affairs. As inflation rises and money tightens, it’s more important than ever to understand the basics and “take the pennies.”


As fears of inflation, recession and stagflation grow, how can people prepare their portfolios and position their portfolios?


First, it is not a foregone conclusion that we are in a recession or that we are heading into a recession. It can still be avoided, and we don’t typically see 3.5% unemployment heading into a recession. If we are headed to that destination and if inflation is here to stay, we are looking at client portfolios for the following:

  • I-Bonds: Although they can only be purchased in limited quantities, I-bonds are a good deal at the moment as they are linked to a high level of inflation.
  • High-Quality Dividend-Paying Stocks: In Uncertain Times, Quality Usually Wins
  • Diversification: Broad diversification, including assets such as commercial real estate, can be helpful in inflationary markets
  • Debt levels: Clients should review their liabilities, especially floating rate debt.
    Can you tell us a bit about your financial literacy course and how you decided to launch it?

When I was in business school and law school at UCLA, I took every course I could find on financial literacy — from investment analysis to options to property ownership. , trusts and estates. After working in financial services for several years, I realized that 90% of what I talked to clients I had learned on the job. They simply haven’t taught the tactical aspects of wealth management in school – even in the best business and law schools.

Can you tell us a bit about your financial literacy course and how you decided to launch it?

When I was in business school and law school at UCLA, I took every course I could find on financial literacy — from investment analysis to options to property ownership. , trusts and estates. After working in financial services for a number of years, I realized that 90% of what I talked to clients I had learned on the job. They simply haven’t taught the tactical aspects of wealth management in school – even in the best business and law schools.

Why is it important for business students to have financial literacy?

These students go into industry, run businesses and start new ones. It is important that they understand basic wealth management for their own financial health. They must also understand it in order to be able to help their future employees and colleagues. Employee benefits (eg, 401k or 403b plans), taxes, stock-based compensation, and regulatory requirements can be complex and confusing. Having a basic knowledge of these topics helps these students spot any potential issues and consult with a competent attorney.

Do you have a topic or message that you are particularly focusing on for your students?

Our goal is NOT to turn students into wealth management experts through this series. Rather, we want to expose them to concepts and encourage them to pursue their own education and knowledge base. People are much more likely to seek out subject matter experts when they are aware of the options and how significant errors can have material consequences.

What are the common misconceptions about finance or money?

It’s a little self-serving, but I think a common misconception is that good financial advice is ‘expensive’. A good advisor looks at your financial goals, the risks you take, and helps you make better decisions about diversification, tax, and cash flow. They can advise you on borrowing options, retirement planning, benefits, estate planning, insurance and a myriad of other topics. Unless you want to spend a lot of time yourself understanding and following these topics, I would look for advisors who have significant experience, a long list of college and professional degrees, and familiarity with financial issues faced by clients. in the same situation.

What are good financial literacy resources? What advice would you give to those who want to learn more about financial literacy?

We have recommended Beth Kobliner’s “Get a Financial Life: Personal Finance in your Twenties and Thirties” to adult children of our clients. It’s a great overview of basic wealth management topics.

Money can be a scary topic for many, what are some tips for creating a healthy relationship with money?

First, be honest with yourself about your own level of financial literacy. Find a financial advisor who is willing to fill in the gaps in your own understanding and explain things to you in a way you understand.

Second, determine if you have the time and/or inclination to manage your own financial affairs. Our clients are very smart, highly educated and successful people – they are all capable of managing their own wealth with a reasonable level of skill. They hire us because their time is better spent doing what they love at work or with their family. We essentially make time for our clients by thinking about their finances for them and proactively providing financial solutions.

What are the major news headlines you follow?

I watch the January 6 hearings and am fascinated by the upcoming midterm elections. I think there’s a decent chance that the Republicans will win the House, which would result in a dividend government. Without making a political comment here, a divided government is generally good for the markets.

This interview originally appeared in our TradeTalks newsletter. Sign up here for weekly access to exclusive market analysis from a new industry expert. We also highlight TradeTalks’ must-see videos from the past week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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