Dr. King's Legacy Lives On - What Will You Do?

Today we celebrate the life of Rev. Dr. Martin Luther King, Jr.mIf you attended a rally for justice, then I hope you are spurred to take action against any injustices in your community. If you snuggled on the couch in front of the television, then I hope you got the much-needed rest that has escaped you since the start of the year. Whatever way you’ve spent today thus far, here’s one of my favorite King quotes for you to chew on before the night is over:

“The dignity of the individual will flourish when the decisions concerning his life are in his own hands, when he has the assurance that his income is stable and certain, and when he knows that he has the means to seek self-improvement.”

King made this statement during his 1967 "Where Do We Go From Here?" speech to the Southern Christian Leadership Conference. I love this statement because King makes clear the human need for income stability and certainty. It is hard to do any good work without the income to support your desires. As you gear up for your YEAR OF ACTION, having income stability will be important for you to take advantage of other opportunities such as investing or staring a business.

This Week’s Action

In the spirit of ensuring stable income, have you spent time with your parents to check in on their financial situation? I know – tough topic, but a critical one. My mother and I are having in depth conversations about retirement and what life looks like when she takes the plunge and joins my father. With the stock market still trending downward, make sure you ask your parents how they are preparing for (or living through) the market woes. Our parents’ financial state will affect us, for better or worse, so make the time to start asking questions. Leave a comment below and let me know what you will ask your parents.

Keep Fighting

This year’s MLK day is particularly meaningful for me because when my husband and I went to Memphis this past December, we stopped by the Lorraine Hotel, where King was murdered.

I can’t describe the feeling eloquently in words, but I will say that King’s spirit is alive and nudging us all to be better, to keep fighting, and working toward economic justice for all.

Time To Go Next Level : The Show Is Here

Last week, I posed the following question:  

What are you doing to equip women with the tools to manage their wealth, pass it down to the next generation successfully, and thus make our society better?

Well, I heard some great responses and I am proud to be a part of a community who wants to equip the next generation of leaders. My answer to this very question is quite simple – I am launching the Charisse Says Show, to help you keep building the wealth and invest. While I invite and encourage men to join in, I especially want to speak to the ladies.

I have a special spot for my gals because the data suggests that we will be making more decisions, and when we do invest, we do it quite well. And, when we empower our women with knowledge and confidence, they rise to the occasion. As a woman, I am a living testimony to the joy one feels after making investments and taking it to the next level.

And, everyone should care because women are leading the financial decisions of many of our households, and thus their actions affect us all. In fact, results from a Pew Research Center survey show that a record 40% of all U.S. households with children under the age of 18 include mothers who are either the sole or primary source of income for the family. The share was just 11% in 1960.

If you do not believe me, here’s what the research says about women versus men when it comes to money and investing:

• Women respondents rank themselves highest on their knowledge of managing debt (33% give themselves an “A”) and lowest on their knowledge about investing (just 7% get A’s). – Prudential Study on the Financial Behaviors of Women

• 8 in 10 women confess they have refrained from discussing their finances with those they are close to. But, 75% of women want to learn more about money and investing. The study also shows that confidence is a leading factor holding women back. – Fidelity Money Fit Study

• There is a gap in savings behaviors--whereas close to half of men (45%) are willing to take on a high risk in order to achieve a good return on investment, this falls to just 28% of women. Also, for women investors, cash represents a greater proportion of their total investment than men, 68% compared to 59%. – Blackrock Global Investor Pulse Survey

• Results from the Merrill Lynch Investment Personality Assessment show that women were far more likely than men to say they had lower levels of financial knowledge. But, roughly half of women and 55% of men say that they personally wanted to take part in making changes to their investment approach. And, nearly 100% of participants, regardless of gender, said they desired the support of an experienced advisor or money manager to help in making productive investment decisions. – Merrill Lynch Behavioral Study on Women and Investing.

• Men trade 45 percent more than women. Trading reduces men’s net returns by 2.65 percentage points a year as opposed to 1.72 percentage points for women, leading to an almost 1 percentage point difference in returns. – Quarterly Journal of Economics, 2001

• In a research study by automating investing platform, women investors change their asset allocation less than men. Research has shown that when you make more frequent allocation changes, like men do, you can hurt your returns. – Betterment Research Study

The differences between men and women when it comes to investing suggest an opportunity to help women to gain confidence and make investment decisions. Well, the Charisse Says Show is coming this Wednesday to fulfill just this goal. Through the blood, sweat, and tears, it is finally here.

The show will offer a practical and entertaining series that motivates women to achieve their dreams by continuing to build their wealth. This 10 episode series is the loving push needed to turn thoughts into action when it comes to investing, saving, and earning money.

When it comes to money, many people are scared of making the wrong choices. They are afraid of losing the money they already have and being misguided by false information. Well, I want to empower viewers to use what they already have as a way to make investments and have fun at the same time. I want to remove the fear when it comes to money and creates sound strategies needed to achieve financial goals at any income-level.

So, tune in this Wednesday, September 30th at 7pm CST and join the journey to take it next level. Let’s go!

Why Intergenerational Wealth Matters

Like it or not, women will control a huge chuck of the money over the next 40 years. According to the Boston College Center on Wealth and Philanthropy, women will inherit 70% of the $41 trillion of the intergenerational wealth that will change hands over the next four decades. Women outlive their men and currently make most of the purchases in the United States, which means that a women’s ability to manage her wealth have implications for society at large.  

Intergenerational wealth transfer is a huge topic near and dear to my heart because I’ve seen the effects of wealth on successive generations. When I was a student at Yale University, some of my fellow classmates had access to opportunities and experiences because of their family’s wealth.

At the time, we called them “the rich kids with silver spoons” who didn’t know a hard day’s work. Now, some of them did live up to the snobby stereotype that usually comes along with this characterization, but most did not. Many students from wealthy families appreciated hard work, as evidenced by the fact that they worked their way to Yale. But, their road seemed a bit easier, a little less cumbersome.

Why?

Well, these students also had a super high degree of cultural capital, which comes as a result of being exposed to a diverse set of experiences albeit art, culture, world travel, or non-traditional learning environments. They’ve tasted the fruits of success first-hand because of the environment around them. Basically, they’ve had access to experiences by the age of 18 that most people do not have over a lifetime.

Cultural capital allows you to think differently about the world. You tend to imagine yourself as the business owner, not the employee. You are confident that you your education will always provide you with a path foward. You dream big because those around you do; you do not know how to think small. You, or your parents, can easily tap into a network to achieve your goals. You are not confined by the current circumstance because you believe that you can always create a new one. You truly believe that you can change the world.

My parents, in their infinite wisdom, sent me to Yale for this very reason. They had already laid a great foundation for my brother and I by exposing us to a world beyond Long Island, but they knew what I didn’t – I (and the entire family) would come out with a new level of cultural capital that they didn’t have at 22-years-old. Of course, cultural capital isn't everything, but it changes you. I had an amazing childhood, but they wanted me to have something even more as I entered adulthood. This was their type of wealth transfer to me. Thank God for parents!

Now, this is not a discussion on the virtues of the Ivies or higher education, but I do want to suggest that cultural capital matters, however it is obtained. I am confident that wealth creation is a vehicle to cultural capital, and when you can transfer wealth from one generation to another, society benefits.

As a result, creating wealth that can pass from generation to generation is an important objective to maintain a way of thinking and operating in the world. And, if women are going to receive a lot of the generational wealth transfer, then they must be equipped to preserve their wealth and grow it even more.

So, what are you doing to equip women with the tools to manage their wealth, pass it down to the next generation successfully, and thus make our society better?

I will share my views on this very question next week.

What our past teaches us about investing with your family?

My husband and I traveled to Seattle for a week to celebrate our two-year anniversary. Yipeee! In addition to the respite and fun, we came back with so many revelations, one of which has implications for how you can invest in the future.  

SIDE NOTE: If you haven’t visited Seattle, put it on your destination list because the city is rich in culture, a paradise for seafood lovers like me, and a great place for the family photographer to take plenty of pictures of spectacular views. It only rained two days while we were there, so make sure you go in August or September to stay away from the mist. And, the city just smells like lavender and pine – ahh, I miss it already! 

The American Studies major in me could not help but dissect the city through the lens of race, gender, and class. And, the Economics major in me always makes me question how wealth is distributed in communities.

Thus, I learned that Asian-immigrant families who settled in Seattle during the turn of the 20th century invested in each other’s businesses and pooled their money together for the benefit of the entire community. These immigrant families did not have much individually, but collectively, they were a force to be reckoned with.

Our revelation came as we visited the Wing Luke Museum of the Asian Pacific American Experience, set in Seattle’s Chinatown. I engrossed myself in the stories of the Asian Pacific immigrant experience in Seattle and along the coast. These stories are also a part of my history; My paternal grandfather immigrated to California from the Philippines in the early 1920s when he was 13-years old.

Early immigrants set up organizations called family associations to help fellow immigrants settle. Martial artist and philosopher Bruce Lee directly benefited from the Lee Chinese family association, which helped fund his akido dojo that trained and developed many marital artists from around the country. If your Caribbean American, I’m sure you’re very familiar with the susu concept, which is basically a group savings vehicle.

It sounds simple and logical to fund businesses with pooled family money, right? Then why don’t many families follow this example, or maybe it is happening and I’m just not hearing about it (or seeing it in action en masse). If you invest or pool your money with your family, I want to hear your story so we can all learn about your successes. I must admit, however, my extended family tried to invest together about eight years ago. But, we faced a few hurdles - finding an idea we could all could rally behind, family members were at different places financially, and finding a legal structure that worked.

Perhaps, it is time for us, and for you, to (re)visit an opportunity to pool your money. If you experienced some roadblocks in the past, then maybe it’s time to take another look. Here are a few questions you should ask yourself and your family if you want to invest together.

1. How do you define family for investment purposes? If you have a ton of family, ask yourself whether you like each other enough to try and invest together. Remember, there is benefit to large numbers but not at the cost of wrecking havoc on those relationships. If you can invest with your blood family, then you are blessed. If not, then I am also a big believer that your family is what you make it.

If have friends who are like family, then consider widening the circle to include them. Finally, perhaps you attended business school together or are members of the same religious community. In this case, you probably have similar values, and this can be your family for investing together. However you define family, cling together and get to work.

If you are amongst the fortunate who knows others who are part of successful family investment endeavors, ask them for their perspective and advice.

1. How can you exploit each other’s talents? Every family is a collection of gifts and talents. Each of you probably is really good at one thing, whether it’s selling, singing, or remaining silent, which is a wonderful gift! We are better as a whole than our individual parts, so how can you find your whole self through your other members? I took a flight to New York a few weeks ago and I met the CEO of Cooper’s Hawk Winery & Restaurant, which offers handcrafted wine and modern casual dining. Before introducing myself, I observed how he perused through 5 industry magazines in about 10 minutes and ripped out articles from restaurant success to sources of capital for wineries. Yes, I was stalking him because I was fascinated by his commitment to his craft!

He eventually told me that he started his restaurant with his wife after pooling money with family and friends. He use to work in restaurants as a kid and this endeavor was a natural extension for him even though he had no formal business training. The whole community rallied behind him and invested together. We can all learn from this success story.

1. How do you want to make your first move? Don’t get trapped in analysis paralysis so that you do not do anything. Instead, have at least one meeting with your family members and define what success if for you – do you want to make money, support each other, and/or provide opportunity or a legacy for the younger or disadvantaged members of your family? Even if you do not spend the entire meeting discussing the “family business,” the important thing is to have this topic as part of the agenda. If your family is spread out around the world, then there’s a huge opportunity for cross-pollination of ideas over Skype of Google Hangout.

And, then decide what you want to invest in. For some families, it will be investing in a business together or their time to work on a business together. For other families, investing will take the form of a stock investment club or real estate ventures. Whatever your flavor of investing, do some research on the best way to organize yourselves. There are plenty of tools out there to help you create your own susu or investment club.

Get Moving

Now, I know that some of you may still be skeptical about investing with your family. I say to you, taste and see – you might surprise yourself. We have a lot to learn from our ancestors. If immigrant communities can make it work in Seattle, I have no doubt that you can make it work.

Best Investment Tips When Moving

Let’s face it – moving is stressful. You’re leaving behind the old for something new. Although stressful as you go through the process, moving can be one of the best times to rethink, and capitalize on, investments. Here are three strategies to take advantage of a moving opportunity for yourself, or someone you know:  

1. Use the difference in housing cost to invest. If you are expected to pay less in your housing cost, then you have investment opportunity. Let’s say you were paying $3,000 in housing costs, and now move to a place that costs $2,000. [SIDE NOTE – you must realize that my reference points are NYC and Chicago, so for all of you paying much less, good for you.] Assuming your income is the same or greater, take the $1,000 difference and put it to the side for your investment opportunity. Now, your investment opportunity may take the form of stocks, bonds, real estate, a child’s education, your own education, or something else. The point is that if you downsize and pay less in housing costs, consider investing the money you would have paid in housing costs.

And, if you now live with a partner or spouse who is still employed when you move, you now can leverage your combined incomes. Common logic might suggest that you should pay more in housing with more incomes, but perhaps you can keep your housing costs the same (or less), and bank that money in an investment vehicle. Even if you implement this strategy for a year, you will be astonished by how much money you can invest for the future. This will take discipline on your part, but I guarantee that it will be worth it.

2. Sell stuff to make room for investing. Most people HATE the stress of moving, and I am no different. For me, it’s the last 10% of whatever I have to move that really makes me tired. I balance this stress with the positive opportunity that comes from selling stuff that can give me extra cash to invest.

I suggest checking in with your network to see if your family and friends want first dibs on your stuff. A simple email or text with pictures usually does the trick and is faster than the telephone. Now, I’m sure you’ll be fair with a price or even consider donating your items with family and friends. But, for things you cannot get rid of, put them on Craigslist, Ebay, or even a local university’s marketplace, like the University of Chicago marketplace near me. If you’re selling big ticket items like a car, these local marketplaces can be great resources to off-load your goods for quality prices. If you are not directly affiliated with the institution, find someone in your network who is, and have them put the listing up for you.

For you clothes hogs, donate what you haven’t worn in at least 6 months. If you cannot donate to friends, donate to a charitable organization and keep the donation receipts to get a tax deduction for your charitable contribution at tax time. If you’ve been holding onto clothes for sentimental value, take a picture and keep it moving.

And, if you do not need these funds for moving costs, consider putting them in an investment vehicle for the future.

3. Keep your eyes out for new businesses. Whether your moving between cities in the United States or internationally, you now will have a unique perspective on new businesses. Find out what industries drive local businesses and employment. There might be a new venture opportunity or investment opportunity lurking in the winds in your new home.

One of the greatest ways to get plugged into your new community is through developing a new network. If you have at least one friend in your new city, chances are that he or she will give you a hook up to their networks. She or he might not realize that this is a goal of yours, so let them know that you want to meet some new people and I’m sure they will oblige. If that doesn’t work, then you might have bigger problems. If you do not one anyone in your new home, perhaps there are local government meetings, churches, or organizations for which you can volunteer and get better acquainted.

Either way, new city equals new investment opportunity. You are bringing a fresh perspective while also enjoying a new perspective. Perhaps your next big investment is waiting for you – go out and get it!

Feel free to share any tips you have on moving!!

Idea Potluck and Funny Money Moments

Very rarely do I get the opportunity to speak about ANYTHING that I want. When I do, I take full advantage.  

This is what happened when I spoke at Mac & Cheese Production's "Idea Potluck" on Tuesday, August 18th. I had a blast talking about funny moments when people ask for money advice. I also provide a few investing tips on 529 plans, Roth 401ks, value-based investing, and Match.com - best $29.99 investment EVER. You can take it to the next level when it comes to investing. The names in this video have been changed or unacknowledged to protect the privacy of the individuals. Check it out by clicking on the video.

Critical Learnings From Two Days, One Night

What would you do if you had to make a trade-off between your own advancement and the lack of advancement of others? Thanks to Netflix, I spent time this weekend watching the film, Two Days, One Night, which addresses this very question. [WARNING: If you hate international films with English subtitles, get over it and read the captions – it’s worth it]  

I suspect that no one reading this blog thinks that they will choose to impede someone else’s career, but I think we make trade-offs like this every day without realizing it. And, thus there are important lessons here.

Brothers Jean-Pierre Dardenne and Luc Dardenne direct this Belgian-French-Italian drama filled with compassion, hard choices, and reality. The movie trailer is powerful, but in short, Marion Cotillard and Fabrizio Rongione play Sandra and Manu, the woman and her husband, who go into a panic after finding out on a Friday that her colleagues have opted for a significant pay bonus, in exchange for her dismissal. Sandra has only the weekend to find and talk with her colleagues and plead her case. She asks them to forgo a 1,000 euros bonus so that she can keep her job after returning from sick leave due to depression.

I was taken aback by how well the film captures the dignity of work and the effect of finances on the family structure and human relationships. Set in Belgium, the film forces the audience to examine itself and one’s own approach to dealing with financial stress, which cuts across culture and class.

I will not give away the ending, but the film raises three main points that may help your financial situation:

How your financial trade-off is framed is critical. In the movie, many of Sandra’s colleagues frame the decision in reference to something else that they need. For many, they plan on the bonus to pay for children’s expenses, improvements on their homes, or paying off debts. For other colleagues, they frame the bonus as a result of what they’ve already worked toward the previous year. So, they are deserving of the bonus irrespective of what’s on the other side of the trade-off.

Aside from the obvious conclusion that living in expectation of a bonus is a difficult financial situation to endure, one must realize how they are framing the trade-off decision. If the trade-off decision is framed from your vantage point and needs, then you will be biased. If the trade-off decision is framed from the other person’s perspective, you might see things a bit differently.

Also, one must ask the question of what structure has allowed a decision to come to the current state. Sandra’s employer is actually to blame for the mess that she’s in, but this is a subtle fact that you will miss it if you are not paying attention.

We need to question the systems that have created financial messes for us! Student loan debacle? Mortgage crises? Wage stagnation? Income disparity? These messes all have powerful systems behind them that we should challenge.

Most people want to know what everyone else is doing. In most of Sandra’s conversations with her colleagues, each asks her who else voted to “give up” their bonuses. None of Sandra’s colleagues ask her who else has voted to “deny her a job,” which is a fundamentally different question.

We are often concerned with what decisions others are making as if they directly influence what decision we should make. We feel better if others make decisions that confirm what is already in our thoughts, or how we really want to act.

When it comes to managing your finances, it is important to be clear on what you want to do because your situation is different than your friends. I’m a big fan of getting advice and seeking help, but you still have to make the decision. Try and gather good information and make the best decision for you, and no one else.

Finding your own dignity. One of the big themes in the move is individual dignity. The movie beautifully captures the importance of working to our sense of purpose and ability to provide for our families. Sandra carries a high degree of responsibility for her household’s stability, which is often dependent on two incomes in today’s culture, here or abroad.

We each go through our own journey when we are not working. I’ve been here before and it is not a good feeling. When I did not make money, it took a toll on me. Even having a husband who can support our household on a sole income did not remove feeling “less than.” I felt this way because I did not personally contribute to the household as I wanted to, and I saw this reality displayed on screen through Sandra. You too are not alone – it’s normal to not feel good when you’re not working. If you feel OK, then I would be worried!

I like to earn money. I’ve gotten very comfortable with this fact (thanks to my career coach). There is certainly dignity in being able to work and getting compensated (financially and non-financially) for our gifts and value to the world.

Go get your dignity and fight for it!

Where to go from here?

I recommend that you watch Two Days, One Night. I’m almost certain you’ll learn even more than I've talked about here. It is one of the best movies I’ve watched this year, and if you've seen it too, let me know your thoughts.

Why Not Invest in a Career Coach?

I got a career coach at the end of 2013, and it has been one of the best investments I’ve ever made in my career. Honestly, no one in my professional circle had a career coach, or kept it a secret if they did have one. The first time I heard one of my friends talk about a career coach was when I began contemplating shutting down a business two years ago. My friend used the career coach after selling her business; she wanted a new role that would allow her to spend time with her young kids and yet satisfy her desire to have a fruitful career. My eyes lit up when I heard about her coach because I needed someone to help me get clarity on a potential next move and navigate a transition. I had several questions:

• What would I do if I wasn’t running a start-up, and will my skills translate?
• Would I find as much joy in this next phase of my professional life?
• How much money did I want to support my lifestyle?

And, I still wanted to dream big!

My friend told me to give her a call for an initial and free consultation, and so I did. When the coach told me that she never met with her clients in person but rather over the phone, I thought we would never work together because I always envisioned meeting someone face-to-face.

Boy, was I wrong.

You probably will not click with the first career coach you meet, but if you do, go with it. After working with my coach for over a year and a half, I’ve discovered these facts to be true for me. Perhaps they will hold true for you too.

A career coach will help you grow. In my mind, a career coach is part coach, part counselor/therapist and part mentor for your professional well-being. Many people use career coaches in transitions or to handle difficult situations, but I have also found value in using a career coach post the transition phase too. Your career coach is someone who is vested in your professional success, understands your values, and that you are not just your career, but you as a whole person with life goals. Yes!

A career coach can provide objective advice and tactical strategies (e.g. email review, negotiation tactics, resume review, etc.) to take you to the next level in your career. Over time, he or she will knows your story, but is not emotionally tied to you like your spouse or close friend. Your close circle of family and friends are great resources, but they know you personally and so they are biased.

Ask any potential career coach why he or she is doing their job and what other work (e.g. consulting) that they might be doing apart from coaching, if any. Their answers will provide insight into what motivates them and other restraints on their time.

The financial investment is real. Career coaches are not cheap and can cost anywhere from $100 to $200 per hour. Many coaches need at least 3 one-hour sessions to find out about you and go through exercises and assessments with you, so plan accordingly.

Remember, however, what you are expecting in return for their services – a higher paying job, more income at your current job, peace of mind at work, support to finally go after your dreams, and next level professional development. Framed this way, paying now for a career coach should reap long-term returns for your career. I am big proponent in paying up for quality and getting a return on my investment. Now, you get what you put in so if you are not ready to take advantage of what career coaches can offer, then you will not reap a big return on your investment.

Ask the career coach exactly what kind of exercises you will be doing, to explain their approach to your situation, and what are some tangible takeaways that you will receive. For example, my coach asked me to list every job, paid and unpaid, that I have worked. She then asked me to write down what I liked and did not like about each of these jobs. As we went through the exercise, I discovered many things about myself, including that I love using my creativity to execute on ideas but hate the redundancy of tasks. My coach discovered my values and the type of work that aligns well with my values.

If you are financially constrained, ask your potential career coach if he or she has any special packages or arrangements to meet you where you are financially.

Your inner confidence will jump to a new level. I’m sure you are a confident person if you’re reading about how to get to the next level in your career. Working with a career coach, however, can give you a deeper connection to yourself and eventually make you more confident in your skills and your value to the world.

Unexpected work difficulties or past work failures can break the spirit of even the most confident people you know. Alternatively, work successes and achievements can cause a level of contentment for over-achievers. Regardless of the end of the spectrum you fall in, a good career coach will force you to evaluate why you make (or refrain from) certain work decisions. You will be in tune with your own inner compass.

A great career coach will remind you that work is what you do, and not who you are. She will push you to be your best whole self, recognizing that if you have other emotional or physical stuff that you need to work out, it will be hard to advance in your career. If you are not doing a lot of self-introspection with your coach, then alarm bells should be going off in your head. Run quickly and find someone else who pushes you to this level.

Your career coach will hold you accountable to hitting milestones, just like a physical trainer. And in the process, you will sharpen your intuition and handle difficult situations much more effectively.

Why Not? 

Whether you’re stuck in your current career or want to take it to the next level, consider getting a career coach. Be patient and recognize that it may take six months to a year to see tangible results. I’m telling you – you will look back and have your own breakthrough story to tell.