Issue 22


What I Read (And Why) by Morgan Housel

A great reading list from one of today’s best writers.

“Generational knowledge takes time to measure. But I have no doubt that the upcoming generation has a better shot at managing their money than all previous generations, as countless wise financial teachers open up their minds to anyone willing to read their thoughts on blogs and Twitter.”


Tiny Steps by James Osborne.

Something I’ve been thinking about a lot is incremental, but compounding, change. This article puts it better than I could have. How do you get clients to understand this?

“And I’ll end my philosophical ravings with this: do one small thing today that, if repeated consistently, will change your life in five years. And try to do it again tomorrow.”


The Constant Reminder by Nick Maggiulli.

Another excellent way of saying the same thing.

“This is what makes consistent actions and the power of compounding so amazing. When I think about creating a new habit in my life, I like to imagine all of the future benefits from that habit discounted back to the moment when the habit is formed. That’s what it’s like. The first day you form your exercise habit is the day you lose the weight. The first day you form your writing habit is the day you wrote your best work. It all compounds back to the moment when the habit is formed.”


Getting Better by Jonathan Clements.

Moving away from the benefits of small changes, here’s a look at why it can be so difficult to do and how to make it easier.

“To improve our behavior, we first need to realize we’re on the wrong path and then figure out the right way forward. Often, this isn’t especially difficult. If we have no savings, obviously we need to sock away some money. If we’re overweight, we should cut back on the calories. If we’re out of shape, we need to hit the gym. Instead, the real problem is getting ourselves to act.”


I’m Rich, and That Makes Me Anxious by Kerry Hannon.

A look at how many people who have more than enough money are still anxious about running out. Do you have clients like this?

“Wealth frequently comes with a bundle of expectations — anxiety and pressure to make smart money decisions, for example, about how it is managed, spent, passed on to future generations, or used to create a legacy.”


How to Deal With Market-Moving News by Ben Carlson.

Another reminder to stop taking forecasts seriously.

“It’s now been a year since the presidential election. While many were predicting the end of the world, U.S. stocks are up 24%, foreign developed stocks are up 23%, and emerging market stocks are up 23%. Allowing political beliefs to guide your investment ideas is not a useful strategy but people also get caught up looking for signals from potentially market-moving news or events where none exist.”