April is Financial Literacy month, and in this episode of Financial Clarity for Doctors, hosts Corey Janoff and Rachelle Vanderzanden talk about some basics of teaching kids to save and manage money responsibly. Getting kids to the point where they are financially independent is a huge milestone, and sometimes it feels like that is harder to achieve than it has ever been.

Strategies and ideas for raising financially literate children:

• Model good financial habits and discuss them with your children. This includes:

• Tradeoffs – you can buy this, but then won’t have enough money for that.

• Delayed gratification – saving for the “big” items.

• Retirement – we set aside some of our money, so someday we can quit working.

• College – we set aside money for you, so that someday you can go to college, learn schools, and get a good job to be able live on your own.

• Taxes – some portion of the money we make goes to the government to pay for schools, roads, and other things.

• Start early with the basics and as your children grow, you can incorporate things like savings accounts, investment accounts, and even involving your kids in decision-making with family spending (vacations are a great example!).

There is no perfect way to teach every single kid, but knowledge is key here! You don’t necessarily need to discuss specific numbers like salaries, but involving kids in the household finances at a very basic level is a great way for them to learn.

For more financial planning tips from Corey and Rachelle, find them on social media! LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.

In this episode of Financial Clarity for Doctors, hosts Corey Janoff and Rachelle Vanderzanden are joined by Zach Kill, CFA® to walk through some of the basics of mutual funds and exchange traded funds (ETFs). They are very similar! But there are a few differences and pros/cons to both.

Similarities:

• Both are collections of investments purchased with pooled money, usually from many different investors.
• There is generally a stated purpose for the fund. For example, an S&P 500 ETF and mutual fund are both designed to track the performance of the 500 largest publicly traded companies in the U.S.
• Both can be either passively managed (most likely following an index) or actively managed with a management team selecting individual companies to buy and sell.

Differences include:

• The timing of trading and pricing.
  • Mutual funds are generally traded and priced at “Net Asset Value” (NAV) as of the end of the day when the trade was initiated.
  • ETFs can be bought and sold throughout the day, similar to stock trading.
• This can affect things like price and tax efficiency.

There are a few other options that we cover in this episode as well. Listen to the full episode to learn more, including why any of this even matters.

For more financial planning tips from Corey and Rachelle, find them on social media! LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.

In this episode of Financial Clarity for Doctors, hosts Corey Janoff and Rachelle Vanderzanden walk through some realistic expectations for investment returns. The biggest thing is to expect a bumpy ride! Then it is harder to be caught off guard.

In this episode we discuss:

• Historical returns of different categories of investments over time.
• The best and worst decades. The range is huge!
• Cumulative returns over time for different markets and time periods.
• The value of diversification.

Past returns cannot tell us how markets will perform in the future, but they provide great examples of just how volatile investing can be. One of the best years to be invested in large US companies was 1954 with about a 53% return in the S&P 500; while one of the worst years was 2008 with about a -37% return. That is a wide variety of outcomes that you must be prepared for when investing in the stock market. Having diversification can soften those sharp edges a bit, but it’s still going to be a bumpy ride! Listen to the full episode to hear more.

For more financial planning tips from Corey and Rachelle, find them on social media! LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.