Banks

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#317 Being Scrappy and Playing Big

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Talking about getting scrappy and fired up...that's what happens when we start the show and the topic is annuities!  If you're a regular listener, you know my stance.  I don't hate every single annuity in the world.  But I do detest when a sales person tries to sell a 79 year old retiree, with no particular need for an annuity, the expensive product.  That's what happened to Victoria from Maryland.  Thank goodness we were able to talk to her before she made a mistake. Next up was Jill...that's right, Jill talking to Jill.  Caller Jill is turning 70 later this year and will soon be facing RMDs and wanted to clarify some things before she has to start taking withdrawals.

April 1 JOM Hour One

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In hour two we're putting on the boxing gloves and getting scrappy in life and at work with Terri Sjodin, author of Scrappy: A Little Book About Choosing to Play Big. 

As Terri puts it, “This is not another book about persistence, although scrappy and persistent make a winning combination. Nothing annoys a persistent person more than a scrappy person who pulls off a classy, unexpected, amazing effort to land the deal, the sale, or the opportunity.”

April 1 JOM Hour Two

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Along the way Terri identifies the habits that will help you get into the right mindset by sharing stories of tactics that have worked, and those that have crashed and burned. Some examples include:

  • Why getting scrappy is a choice to play big
  • How to cultivate your best ideas
  • How to manage risks and bounce back from mistakes and failures
  • How to scale a scrappy culture within any organization, big or small

So put on your gloves and start getting scrappy...and if you swing your way to the top, I want to hear about it!

P.S. Check out our podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#316 March Madness and Your Money

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Before we throw you a curve ball and talk some March Madness action, we fielded some of your questions in the first hour.  We started with Ed in California, who is overseeing millions of dollars for himself and his family members.  Even though he has done an amazing job on his own up until now, Ed wants to find a wealth advisor and is having a hard time finding somebody he trusts. After Ed we went to Aaron in Kentucky.  Unlike Ed, things are a bit tighter for Aaron.  A recently divorced father he's concerned about his future and wants to know what financial steps he should be taking right now to ensure a fruitful retirement.

March 25 JOM Hour One

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Okay, here's our latest curveball for you guys.  Every once in a while we like to mix it up and what better time to do that than March Madness?  As you're sitting on the couch this weekend watching the action, you may see our guest on your television patrolling the sidelines of the basketball court.  We're talking about none other than Dana Jacobson of CBS Sports!  

Dana's world of sports sometimes collides with finance, especially when it comes money and college athletics.  Should the athletes be paid?  Or is the opportunity to earn a college degree enough?

March 25 JOM Hour Two

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It's always fun to do something new and different.  To hear the story behind the face you're seeing on TV.  To hear how a person wanted to work in news but wound up in sports only to end up working in both news and sports.  Talk about having the best of both worlds.  Enjoy!

P.S. Check out our podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#315 Kids and Financial Literacy

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Before getting a lesson in financial literacy with Beth Kobliner we first took a call from Steve in Connecticut.  Steve, who is still working, has a 401(k) from an old employer and is looking for a way to minimize the tax hit.  Should he pay now or wait until retirement? March 18 JOM Hour One

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Now on to our guest in hour two this week...

You will often hear me say that before you worry about the financial future of your kids, you need to make sure you’re taking care of yourself first. But that doesn’t take you off the hook for discussing money with your kids.

Think of it as another one of the talks...so now in addition to the sex talk, the drug and alcohol talk, we can add the money talk. All of these conversations must occur at every stage of your child’s development, with age-appropriate messaging that the kids can absorb.

That's why we’re talking to Beth Kobliner, author of Make Your Kid A Money Genius (Even If You're Not): A Parents’ Guide for Kids 3 to 23. 

March 18 JOM Hour Two

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I know there are a lot of you out there listening with kids or thinking about starting a family, wondering how to have such conversations:

  • How much debt should we take on for college?
  • Should I give my teen a debit or credit card?
  • Should I give my child an allowance?
  • My kid wants to move back home...should I charge rent?

Those are just some examples and there’s plenty more in the book. Whether you’re a rookie in the parenting game or a veteran, this book will help. As Beth says, “Think of it as a guide for parents that offers the financial facts of life for kids 3 to 23.”

Whether you have kids, are planning on it or know someone with kids, I encourage you to check it out.  It’s never too soon to start the money talk with your children.  

P.S. We have a new podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#314 Creative Change In the Workplace

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Before talking about creative change in the workplace and why we all resist it, we talked to Rob in Buffalo who has a question regarding an annuity and the overall retirement plan that he and his wife have in place.  As you'll hear, there's no simple yes or no answer when it comes to retirement planning.  Each case is very specific to the individuals involved and that's why you always hear me asking a variety of questions :) March 11 JOM Hour One

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In hour two we chatted with Jennifer Mueller about her new book, "Creative Change: Why We Resist It...How We Can Embrace It".  While high level executives say they want creativity and seek innovation in order to thrive in a competitive world, Jen says  the truth is that many business leaders often resist creative solutions and instead embrace the familiar.  And it's not just CEOs, but educators, scientists, and others who often struggle to accept new and creative ideas even when desired. 

March 11 JOM Hour Two

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Among the solutions discussed in the book:

  • A multi-step process to self-disrupt your current mindset and recognize creative opportunity
  • A way to pitch ideas aimed at helping you defeat the established preference for the status quo
  • Tips to disrupt the cultural beliefs holding your company back
  • How to recognize creative leaders who can lead organizations in productive new directions

If you find yourself in a similar situation at work then this is an interview you definitely want to hear.

P.S. We have a new podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#313 Airbnb Disrupting the Hotel Industry

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Before checking into an Airbnb, we took a call from Ralph in Iowa who may end up winning the 2017 Father of the Year award. Ralph wants to help out his daughter by paying off her student loans so she doesn't have to pay thousands of dollars in interest.  Sure, it's an incredibly nice thing to do, but there's also a right way to do it and that's what we discussed. March 4 JOM Hour One

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We booked a reservation with Fortune editor Leigh Gallagher in hour two.  Leigh's new book, The Airbnb Story, is a behind-the-scenes story of the creation and growth of Airbnb.  I'm sure many of you out there have stayed at an Airbnb-Mark just used it in Tokyo and is a big fan.  I, on the other hand, remain in the minority.  Maybe one day...never say never...

March 4 JOM Hour Two

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We all know how Airbnb works, but through her exhaustive research, Leigh dives into the company's origin story and she also provides insight about how the service has disrupted the hotel industry.  It's crazy to imagine that a company less than a decade old is now as big as Hilton and Marriott.  As the title says, three ordinary guys who disrupted an industry, made billions and created plenty of controversy along the way.  Check it out...you may see your vacation a little differently this summer.

P.S. We have a new podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#312 How the New Middle Class Survives

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Before we dive into just how exactly the middle class is surviving these days, we first took an interesting call from Rod in Georgia who was wondering if it made sense for him to pay off his cheap mortgage and instead invest the money.  If you're a regular listener you probably know which way I'm going on this one... Feb 25 JOM Hour One

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I loved our guest in hour two this week...Lisa Servon, author of "The Unbanking of America: How the New Middle Class Survives." First off, let me tell you that I thought this book was fascinating and really well written.  In a nutshell, it's basically about how dysfunctional the mainstream banking system of America has become.  In a time when nearly half of all Americans live paycheck to paycheck, Lisa exposes the broken role of banks, as they’ve quietly abandoned lower and middle class consumers in favor of servicing only the wealthiest.

Feb 25 JOM Hour Two

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Lisa is the real deal.  Not only did she spend months working at a check cashing facility in the South Bronx while writing the book, she's also a professor of City and Regional Planning at the University of Pennsylvania and a former dean of the New School.  Her work on consumer financial services has been published in the Wall Street Journal, the Atlantic online, and The New Yorker online, among many others.

P.S. We have a new podcast!  It's called Better Off and it's sponsored by Betterment.  It's similar to the radio show yet a bit different.  We'd love hear your feedback!  You can download it via iTunes, Spotify or Google Play.  If possible, please leave a rating and/or review in iTunes.

Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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Banks’ Living Wills Pronounced Dead on Arrival

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Last week, U.S. regulators essentially pronounced the so-called Living Wills of five of the eight largest financial institutions (Bank of America, Bank of New York Mellon, JP Morgan Chase, State Street, and Wells Fargo), dead on arrival. The other three (Goldman Sachs, Morgan Stanley and Citigroup) fared better, because their plans escaped being termed “not credible”. (While Goldman’s plan was green-lighted by the Fed, the FDIC found problems and with Morgan Stanley, it was the other way around. Citigroup won provisional approval from both regulators, but must address “shortcomings” in its plans.) Considering that not one bank got a full-blown thumbs up as to how it would wind itself down amid a bankruptcy, without taking down the system, without the assistance of taxpayers or without addressing shortcomings, they are still too big to fail. However, this does not mean that the banks are in the same precarious state that they were in 2008-2009; rather their “break the glass” emergency plans are not yet strong enough to convince both the Fed and the FDIC that they would be able to unwind themselves without destabilizing the system.

Background: Before the financial crisis regulators had not properly monitored or constrained risk-taking at the nation’s largest firms. When the crisis hit, the government “did not have the tools to break apart or wind down a failing financial firm without putting the American taxpayer and the entire financial system at risk.”

To prevent that from happening in the future, a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act required that large banks (total consolidated assets of $50B or more) submit plans to both the Federal Reserve and the Federal Deposit Insurance Corporation as to how they would navigate a bankruptcy without taking down the entire financial system and with no taxpayer bailout. The goal was “If a firm fails in the future it will be Wall Street – not the taxpayers – that pays the price.”

These plans are known as “living wills”—and just like an end of life directive on which the name is based, they must contemplate what would occur under the worst circumstances. Each bank is required to describe its strategy for rapid and orderly resolution in the event of material financial distress or failure of the company.

What happens next? Although the annual filing deadline is July 1, 2017 the institutions must resubmit updated plans by this October. If any of them fail, they could face higher capital, leverage or liquidity requirements; or potentially might have to exit certain businesses entirely. Meanwhile, financial company shareholders did not seem especially worried about the living will issue: amid weak earnings releases from J.P. Morgan, Bank of America and Wells Fargo, bank stocks gained 7 percent on the week. 

MARKETS:

  • DJIA: 17,897 up 1.8% on week, up 2.7% YTD
  • S&P 500: 2080 up 1.6% on week, up 1.8% YTD
  • NASDAQ: 4938 up 1.8% on week, down 3.1% YTD
  • Russell 2000: 1131, up 3% on week, down 0.4% YTD
  • 10-Year Treasury yield: 1.75% (from 1.872% a week ago)
  • May Crude: $40.40, up 1.6% on week
  • June Gold: $1,234.60, down 0.8% on week
  • AAA Nat'l avg. for gallon of reg. gas: $2.11 (from $2.04 wk ago, $2.41 a year ago)

THE WEEK AHEAD: The world’s major oil producers will meet in Doha on Sunday. Analysts expect the announcement of a deal that would freeze OPEC and Russian oil output at current high levels. However, it would not likely reduce excess supply without a pick-up in demand or supply cuts by non-OPEC producers.

Mon 4/18:

Morgan Stanley, Netflix, Pepsi, IBM

10:00 Housing Market Index

Tues 4/19:

Goldman Sachs, Intel, Johnson & Johnson, Yahoo

8:30 Housing Starts

Weds 4/20:

Abbott Labs, AMEX, Coca-Cola, Mattel, Yum! Brands

10:00 Existing Home Sales

Thursday 4/21:

Alphabet, Microsoft, Starbucks, Verizon, Visa

8:30 Philly Fed Business Outlook Survey

8:30 Chicago Fed National Activity Index

8:30 FHFA Home Price Index

Friday 4/22:

American Airlines, General Electric, Caterpillar, McDonald’s, Schlumberger