• You build confidence with money by understanding the big picture, including what you own, what you owe, and what you spend, so your decisions come from clarity instead of guesswork.
• Confidence grows when you use simple habits that keep your financial life visible, such as gathering your numbers, having honest conversations, and celebrating small wins.
• Letting go of old money myths and using practical systems helps you make choices that feel intentional, calm, and aligned with the life you want.

Why Many People Don’t Feel Confident With Money

People assume that money confidence comes from knowing financial terms, having better tax strategies, and keeping up with market updates. However, most of the time, the real reason people don’t feel confident with money has nothing to do with knowledge and everything to do with the stories they’ve absorbed over time.

Many of us grew up in families where money wasn’t talked about openly or it was talked about only in moments of stress when income shifts. 

Some people learned that money was scarce. Others learned that it was impolite to discuss. For many, money became tied to comparison, like watching friends, coworkers, or social media, and assuming everyone else is doing better.

It’s not just you. Recent national research shows that nearly two-thirds of Americans feel stressed about their finances and more people are now spending beyond their income.

When money feels emotional or unclear, avoidance becomes the default. Not checking accounts, delaying decisions, or hoping things sort themselves out are all common coping strategies, not personal failures. Finding money confidence in these moments is almost impossible.

The good news is that confidence doesn’t require perfection. It comes from knowing what you own, what you owe, and what you spend. Once the fog lifts, the anxiety begins to fade. That’s when confidence finally has space to grow.

The Three Questions That Build Money Confidence

Money confidence comes from asking the right questions and being honest with what you find. These three questions form the foundation of financial clarity. Once you can answer them, you’re already ahead of most people.

1. Do You Know What You Own?

Most people have more accounts, assets, and resources than they think. They’re just scattered across old employers, banks, investment apps, and joint accounts. When everything is spread out, it’s easy to feel disconnected from your financial life.

In a 2025 survey, only 58% of Americans said they know their net worth, while 21% said they do not and another 21% were unsure.

Knowing what you own means gathering the big picture:

• Your bank and investment accounts
• Retirement plans from past and current employers
• Equity, RSUs, and stock options
• Real estate or business interests
• Savings, emergency funds, or cash reserves

Seeing it all in one place gives you grounding. It turns money from something abstract into something real and manageable. That clarity alone builds confidence, because you finally know where you’re starting from.

2. Do You Know What You Owe?

Debt carries a lot of emotional weight, and that alone can undermine confidence. Many people avoid looking at what they owe because they assume it reflects a mistake or a misstep, when in reality, debt is simply a tool. The confidence comes from understanding it, not fearing it.

Knowing what you owe means looking at your:

• Mortgages
• Student loans
• Credit cards
• Car loans
• Business or personal loans
• Lines of credit

Just like with your assets, the goal isn’t to judge the numbers. It’s to know them. Understanding interest rates, monthly payments, and payoff timelines helps replace anxiety with direction.

3. Do You Know What You Spend?

This is the question most people want to skip, because they assume the answer will require restriction or a tight budget. But knowing what you spend doesn’t mean policing yourself. It helps you build awareness about how money moves through your life so you can make intentional choices.

You don’t need a complicated spreadsheet to start. A simple snapshot of your monthly spending is enough to create clarity. There are apps for your phone or computer that will do 90% of this work for you.  Review what consistently matters to you, what no longer does, and what surprised you when you saw it in writing.  

When you understand your spending, you gain control. It becomes easier to say yes to what aligns with your values and no to what doesn’t. This is often the moment clients tell me they feel the biggest shift, because spending clarity creates permission, which leads to confidence.

Practical Ways to Build Confidence With Money Starting Today

Confidence with money isn’t something you earn after you hit a certain number in your bank account. It’s something you build through simple, repeatable habits that make your financial life easier to understand.

Get Your Numbers in One Place

Scattered information creates anxiety. Confidence comes from visibility.

Put everything, including what you own, what you owe, and what you spend, in one place. It can be a simple document, a notes app, or a folder with your most recent statements. The goal isn’t to analyze it yet. It’s simply to gather it.

Almost every person I meet feels an immediate sense of calm once everything is visible. When your financial life is in one place, it stops feeling like a mystery you’re supposed to figure out alone and starts feeling like something you can actually manage.

Make Money Conversations Normal

For many people, money has been a taboo topic their entire lives. That silence creates shame, and shame erodes confidence.

Start normalizing money conversations with a partner, a trusted friend, or a financial professional. You don’t have to dive into every detail right away. Begin with one question at a time, like: 

• What are we saving for? 
• What matters most to us? 
• What’s something we want to feel differently about with money?

Celebrate Small Wins

Money confidence grows when you nurture good habits.

• Paid off a small balance? Celebrate it.
• Opened a retirement account? That counts.
• Reviewed your spending for the month without judgment? That’s progress.

When you give yourself credit for the steps you are taking, you reinforce the belief that you can handle your money. That belief becomes confidence, not because everything is perfect, but because you’re paying attention in a way that empowers you.

Common Myths That Hold People Back From Money Confidence

A lot of the fear around money comes from long-held myths that make people feel like they’re already behind. Naming them is the first step toward letting them go.

• “I should already know how to do this.”

No one is born knowing how money works. Confidence grows when you’re willing to ask questions and learn as you go.

• “I need to have everything figured out before I start.”

You don’t. You just need one next step. Clarity grows with action, not waiting.

• “I’m bad with money.”

Most people aren’t bad with money.  They’ve just never been taught a system that works for them.

• “Talking about money is stressful, so it’s better to avoid it.”

Avoidance creates anxiety. Talking about money in small, safe ways builds confidence.

• “If my income were higher, I’d finally feel secure.”

Higher income doesn’t automatically create clarity. Understanding your numbers does.

You Don’t Need Every Answer to Feel in Control

Confidence with money grows from clarity and momentum. That means the small steps you take, the questions you’re willing to ask, and the understanding you build over time. 

When the pieces of your financial life finally make sense in one place, the stress starts to quiet down. Decisions feel easier. You feel more grounded and more capable.

That’s the whole point. Not perfection, but a sense of control that lets you move through your life with more ease and less hesitation.If you’re ready for clearer answers and a plan that truly reflects your life, fill out my short questionnaire. It’s the first step toward understanding where you are, what you want, and whether I’m the right person to help you get there.

Jessica Lanning, CFP®

Email: jessica@lanningfinancial.com
Phone: (415) 354-5699
LinkedIn: linkedin.com/in/jessicalanning
YouTube Channel: Lanning Financial on YouTube

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Some people confidently navigate their financial world alone, while others find the guidance of a professional invaluable. So, how do you determine what’s right for you? 

Let’s break down when and why hiring a financial planner might make sense for you.

Do You Need a Financial Planner?

The short answer: not necessarily. 

Much like getting in shape, you don’t need a personal trainer to achieve your fitness goals. There are plenty of resources, books, videos, online courses that can teach you how to budget, invest, and plan for the future. If you have the time, discipline, and willingness to learn, you can certainly go the DIY route.

However, just like working with a trainer can help you avoid common mistakes, a financial planner can save you from costly missteps. Financial professionals have the expertise to see potential pitfalls you might overlook, ensuring your money is working efficiently for you. They provide guidance, accountability, and strategies to help you reach your goals faster and with less stress.

Why Hire a Financial Planner?

Managing your finances isn’t just about making money, it’s about making smart choices with the money you have. From investing and tax strategies to estate planning and major life decisions, financial planning involves many moving parts. Some people prefer to handle it themselves, while others find value in working with a certified financial planner who can provide expertise, guidance, and accountability.

So, how do you know if hiring a financial planner is the right move for you? If any of the following scenarios sound familiar, you may benefit from working with a professional who can help you navigate the complexities of personal finance.

1. You Don’t Have the Time or Desire to Become a Financial Expert
   Many of my clients care deeply about their financial well-being, but they simply don’t want to spend their weekends studying investments, tax strategies, and estate planning. They prefer to focus on their careers, families, and personal interests while knowing their money is being managed by someone who does this every day.
2. You Want the Convenience of an Expert’s Guidance
   Financial planning isn’t just about investing. It’s about structuring your money in a way that aligns with your goals. A financial planner helps simplify complex decisions by organizing information and presenting it clearly. Instead of spending hours researching what applies to your situation, you can rely on an expert to provide tailored advice.
3. You Need Help Coordinating Financial Decisions
   Finance can be a foreign language. A financial planner helps translate complicated terms into understandable information. More importantly, they coordinate with other professionals, CPAs, attorneys, and estate planners to ensure all aspects of your financial life are working together.
4. You Want Accountability & Follow-Through
   Making a decision is one thing; implementing it is another. Financial planners help ensure that action items, like transferring funds, adjusting investments, or updating estate documents actually get done. It’s easy to put off financial tasks, but having a planner keeps things moving forward.

When Should You Hire a Financial Planner?

While hiring a financial planner early can be beneficial, there are key life events where professional guidance is especially valuable:

• Getting Your First Job: Setting up retirement accounts, budgeting, and understanding benefits.
• Getting Married: Merging finances, tax planning, and discussing long-term goals as a couple.
• Having Kids: Planning for childcare, education savings, and estate considerations.
• Changing Jobs or Losing a Job: Managing income fluctuations, benefits transitions, and retirement savings.
• Buying a Home: Understanding mortgage options and affordability.
• Supporting Aging Parents: Navigating healthcare, caregiving costs, and financial responsibilities.
• Sending Kids to College: Planning for tuition costs and financial aid strategies.
• Starting a Business: Structuring business finances, taxes, and personal liability.
• Preparing for Retirement: Transitioning from earning to withdrawing money efficiently.

If any of these situations apply to you, working with a financial planner can help you make well-informed decisions that align with your long-term goals.

Who Typically Initiates the Conversation?

Interestingly, in many households, one person often takes on what I call the “invisible labor” of financial planning. This is the person who ensures bills are paid, appointments are scheduled, and important financial tasks don’t fall through the cracks. In many cases, this is the same person who reaches out to financial professionals to get things in order.

While this role often falls to women, especially in traditional heterosexual couples, every family dynamic is different. What’s important is recognizing that financial planning is a team effort, and getting professional support can take the burden off the person who has been managing everything behind the scenes.

The Value of Expert Guidance in Financial Planning

Hiring a financial planner isn’t an admission of financial incompetence, it’s an acknowledgment that expert advice can lead to better outcomes. Whether you’re considering giving money to your kids, preparing for a life change, or simply want peace of mind, a financial planner can provide clarity, efficiency, and confidence in your financial decisions.

If you’re uncertain about your next financial step, consider consulting a financial professional who can help tailor a strategy to your unique needs. And remember, financial planning is an ongoing journey. Stay informed, seek expert advice when necessary, and take proactive steps toward securing your financial future.

If you found this helpful, follow Lanning Financial for more insights or reach out with your questions. Your financial well-being is worth the investment in knowledge and expert guidance.

Jessica Lanning, CFP®

Email: jessica@lanningfinancial.com
Phone: (415) 354-5699
LinkedIn: linkedin.com/in/jessicalanning
YouTube Channel: Lanning Financial on YouTube

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

At worst, they are an excuse to beat yourself up when you don’t achieve them.  

“But it’s January!” you exclaim, and you need a goal, or the year will go by, and you will have done nothing. Which is literally not true, but I hear you.

You get to pick whatever goals you want.  Here are some great financial planning ones for this year:

• Update my financial plan.
• Max out my retirement plans.
• Fund my “amazing next adventure” account.
• Get a plan to sell my business started.
• Figure out what to do with these highly appreciated assets.
• Update my estate planning.
• Teach that kid cash flow with an allowance.
• (Or, my favorite….)  Get that kid out of the house and be financially independent.

I suspect at least one of these resonates. 

Let’s be honest: is it showing up as a “should,” or are you genuinely excited about getting it done? I suspect the former.

Let’s fix that.

First, Go Back to Bed

It’s January.  

Let’s be real: New Year’s resolutions are often overrated. The gym in January is the perfect example. People are brimming with motivation to work off holiday indulgences, but by February, most of them are gone.

Why? Because winter is a time for rest, not growth. We’re part of the natural world, and nothing grows in the winter. Fighting against this rhythm rarely works. So don’t fight it.

Those who have been reading my blogs and posts will know what I will say: If you must set a resolution or goal, okay.  Then, go back to your long winter nap and don’t do anything about your goals. Wake up after Groundhog Day (Imbolk) and start taking action toward your goals.

You stand a chance of your goals taking root and seeing them bloom.

Goals Are For Direction, Not Achieving

Seriously.  Goals are to point you in a particular direction.  Whether you achieve them or not is largely immaterial.  If you do, that’s super fun, but it’s not the point.

What you learn along the way, the mid-flight adjustments you make, the milestones you reach, or the supporting systems that get improved are really what this is all about.  Keep moving, and all your goals will happen, often unexpectedly and on their own timelines.

I’ve had goals personally and professionally for years that have yet to come to pass.  I get closer every year, even if that’s just in putting the foundation in place for those goals to come to fruition.

Pull in the Vision and the Emotions

Go ahead and set your goals.  Make them SMART (specific, measurable, achievable, relevant, and time-bound).  Set one(s) for this year and one(s) for 3-5 years out.

Yes, that part is boring. I know.  But here’s where the magic happens: bring in your vision and emotions.

Ask yourself:

• Why is this goal important to me?  
• Why do I want it?  
• Why is it relevant?
• Why is this coming up now?
• Why did you pick the timeframe that you did?

Essentially, you want to know what you’re going to get out of moving toward this goal.  That is your Why.  

If you are stuck, I love these questions from my coach, Ellen Rogin, with whom I’ve done business planning for a few years.  

• How will I feel when I achieve this?
• Who else wins with this goal?  
• How does accomplishing my goal support others?

Then sit with your eyes closed and feel what it will be like to achieve this goal. Imagine yourself walking somewhere after completing this goal and feel into that moment.  

The clearer you can get, the better.  Are you on a family vacation?  End-of-the-year dinner?  On that cruise, you always wanted to take?  Buying new clothes you feel great in?

Use all five senses where you can.

• What is physically around you that you can see?
• Who is with you?
• What are the sounds around you?
• The smells?  
• What tastes?

Burn this into your brain, and your brain will start finding ways to make it happen.

Financial goals, particularly around things like “I should get this done,” are particularly challenging.  It’s hard to get excited about increasing limits on an umbrella policy.  But it is possible to see you and your family adequately covered by a claim. How good it will feel to check this off the list, or how much fun it will be to say, “I got all my financial to-do’s done!”

Have Several Whys

One big trick here is to have several whys.  I expect different goals to have different whys. But you’re going to need several whys for each goal. 

The one that works when you’re at the office is not going to be the one that works at home.  The one that gets you out of bed in the morning is not necessarily the one that’s going to work at 3p when you’ve allotted time for a task that you just plain don’t feel like doing.

Avoid negative images, i.e., what would go wrong if you didn’t achieve the goal.  But I will admit that sometimes envisioning what would happen to my kids and how much my successor trustees would hate me if I didn’t get my succession planning done is motivating.

Write Them Down

Of course, write down your goals somewhere you can see them.  Do a vision board that works for you.  Refresh your reminder every month or two because that little sticky note will typically become part of the furniture, and you’ll stop seeing it.

I know folks who write down their goal (the same “big” goal) every day.  This doesn’t work for me, as it becomes rote.  However, I will revisit my vision of achieving my goal regularly, often during downtimes like at stoplights or on MUNI.  Even 30 seconds in the shower helps me.

I wish you all the best with this new year.  May January and re-entry into work be gentle and easy.  May your downtime now bring you great fruits of success in the spring and the summer!

If you’re ready to discuss your financial goals and whys, contact me at Lanning Financial.

Jessica Lanning, CFP®

Email: jessica@lanningfinancial.com
Phone: (415) 354-5699
LinkedIn: linkedin.com/in/jessicalanning
YouTube Channel: Lanning Financial on YouTube

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

My favorite was Oreo.  In her last year, she would curl up in the bend of my elbow and lean her soft, warm, little body against my rib cage, and I would stroke her back and her head for sometimes up to an hour.  Sounds kinda sweet, doesn’t it?

The 529 Is Not the Perfect Pet

Like pet rats, the 529 plan is billed as a perfect investment.  Put in after-tax money, let it grow tax-deferred, and if you pull money out under prescribed rules, the withdrawals are tax-free.  You probably know someone who had a great experience with one.  What’s not to like?

Problem is, you don’t know until you’re knee-deep into the commitment.

Here’s what’s not great about pet rats:  The cage will take up more space that than you care to relinquish, their urine and feces still smells, cleaning the cage takes up a lot of time, the kids likely won’t help like they promised, and vet visits are pricey if you can even find a vet who can treat a sick rat.

Here’s what’s not great about 529 plans:  Just because you funded one doesn’t mean your kid goes to college, you can typically only change investment options once a year, it will likely not cover all of the college costs, and spending the money on the “wrong” things costs you penalties and possibly higher taxes.

For you, the 529 cage might be the wrong size, smelly, and your kids may be no help at all.

Alternatives to the 529

I think what people like about the 529 plan is that it is money specifically set-aside for college.  There’s something mentally appealing about the segregation, and it’s harder to raid the funds in a weak moment when it has little Lizzie’s name on it.

But there are lots of other ways to accumulate assets that can be psychologically earmarked as a college fund:

• A stock/bonds account that can be later transferred to a child to pay for college or pay off student loans.
• Real estate is hugely popular, especially if purchased before a child is born or is very young. Use the rental income or sale proceeds to pay for college.
• Being self-employed and employing your child during the summer has wonderful tax benefits for college funding.
• Some retirement plans allow for withdrawals for college expenses without penalty. You can fund these for your kid if they work while in K-12 and have earned income.

This list goes on.

The 529 is not the be-all-end-all of funding a college education.  If you are going to use one, be judicious about how much you put into it.  While the rules around 529 money have changed over the years (you can even fund a Roth with them now under the right circumstances), the last thing you want is money earmarked for college that will never be used for such.

Focus on the Outcome You Really Want:  A Happy Kid

We loved our rats, but in truth, what we all really wanted was a dog.  At the time, I was unwilling to take on the responsibility or the commitment.

What you probably really want is for your kid to grow up to be successful, confident, resilient, financially self-sufficient, and happy.  College may or may not be part of that path.

I suspect that what you really want for yourself is to grow up to be funded for retirement, confident, financially self-sufficient, and happy.  Flexibility and options are key, and the 529 doesn’t have much flexibility or options.  Choose it wisely.

If you want to talk more about college funding, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

When she asked me this question, what really came to mind was all the things that I’m surprised that couples — who have been partners for ten years or more with the intention of death parting them – don’t talk about.  At least not regularly.

Yes, you should have your own checking account, but what I really want you to know is what your spouse wants to do when the kids leave the house or when you both quit working for paychecks.  How well do you know this person today?

Even single people need to contemplate many of these questions and get them communicated to a sibling, family member, or dear friend. If nothing else, journaling works.

Here are somewhat surprising questions that get answered with “Gosh, I don’t know” entirely too often when I ask.

Where do the online account passwords live?

 Not kidding.  I’m shocked at how often one spouse just hasn’t gotten around to sharing this information with the other.  If one partner dies, the other person could easily be without means to access online accounts easily and quickly.  Ask this question often. The answer frequently changes.

When do you want to stop working for a paycheck?

Most people will default to “as soon as I can” or “when my Social Security kicks in, I guess” or “tomorrow?”  Some will just say 65, drawing upon their parents’ generation.

This is actually a trick question.  What is worth contemplating are these questions:

• Do I want to “die in the saddle” and work as long as I can? If so, why?  What need/desire is that serving?
• What am I wanting to do when I stop working that I could be doing right now?
• How much does work and/or receiving a paycheck define me?

We change and grow as human beings.  Who we are, how we felt, what we wanted to do with our lives at 40 is different than at 50 or 60.  You might be surprised by what comes out of your partner’s mouth when you remember to ask.

What do you want to do when the kids are out of the house?

This is a fascinating one.  Frequently, when we are mid-career our idea of what we’ll do when we’re no longer working is quite different than when we are on the eve of leaving a paycheck for good.

Couples frequently have to reacquaint themselves with each other when the kids leave the house.  They wonder who they’ve been living with all these years.  What do they have in common now besides the children?  How do we want to spend our time together and apart?

What has been your message to the kids about going to and paying for college?

This is a favorite of late.  I’m surprised to see spouses look at each other and have a sense of what the other will say, but they never took the time to get on the same page and communicate that to the kids. This is not fatal to the college planning and college funding process, but that ideally would have been handled before the kid entered high school.

 What were this person’s wishes at their death?

I’m not talking estate planning here.  I’m talking about:  Did they want pain medication to make them comfortable?  What happens to the body at death?  What type of celebration did they want?

I’m always amazed at how many times I hear, “I don’t know. We didn’t get around to talking about it.”

This applies to parents, spouses, family member, or anyone else who you are close to for whom you might have to plan a post-death ceremony of some sort.

I get that life gets busy with careers to manage, kids to raise, vacations to take, parents who are aging, and this list goes on. In the quieter moments over a glass of wine or on a beach vacation, there’s a moment to learn more about someone, even someone you thought you knew inside and out.

If you want to facilitate these questions with a neutral third party, I do this all the time in my office.  Please feel free to reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

As a fan and long-time user of LastPass, I was alarmed by the latest LastPass hack. But what exactly happened, and what does it mean for users like you or me?

What Happened

In a nutshell, LastPass suffered a security breach that exposed some user data, including billing and email addresses, end-user names, telephone numbers, and IP address
information. LastPass has 30 million users. It claims that only 3% of them have been seriously impacted, and that it has been working with those users to maintain security.

Three percent might not seem like a lot, but this is bad news.

Should You Be Concerned?

Yes, of course you should be. LastPass has written a couple of blog posts reassuring its customers, but I think some healthy skepticism is in order.

While LastPass uses high level encryption and a “zero knowledge” system, the reality is that the hackers now may have encrypted master passwords and potentially access to your whole
vault.

Zero knowledge is a term used to describe a system where the service provider doesn’t have access to the plain text version of your usernames and passwords.

Instead, they used encryption and decryption processes that were managed solely by the user’s device, making it extremely difficult for anyone, including LastPass employees themselves, to
access the passwords. Said another way, LastPass does not have access to the actual passwords stored in its system; only the user does.

This doesn’t mean stolen encrypted data is safe. Arguably the villain here could use “bruteforce” to guess your passwords. This will take anywhere from half an hour and $100 to millions
of years (no exaggeration, this is the range of times provided by various sources).

What is the Likely Impact of the LastPass Hack?

The impact of the LastPass hack will vary from person to person. It’s not worth the gamble that it’ll take a million years to hack your account(s), so it’s wise to make adjustments now.

Your best defense? A good offense.

What Do You Do Now?

Given that we don’t know what the impact will be, it is important to take steps to protect yourself
after a hack.

Take these actions:

1. Change your master password. It should be 16 characters long or longer. Do not use any identifying information in it (name, address, SSN, etc.). Opt for a phrase, like a
favorite movie line. Use odd variations on words.

2. Use two-factor authentication. You should have turned this on a long time ago. Before you get into your vault you should have to use your phone or a code to verify it’s you. I
know this is a pain. Get used to it. It’s the way of password security going forward. If you’re using biometric identification (thumbprint, facial recognition), this will go faster.

3. Use a password on your phone.

4. Change your passwords on highly sensitive accounts – banking, credit cards, insurance, health care, social media, tax information, document vaults, etc. Use LastPass to create
passwords for you so that you create unique, strong ones.

5. Monitor your accounts for suspicious data.

6. Consider changing password vaults.

Do I Still Recommend LastPass?

Sadly, no, because that would just make me look stupid.

However, I believe that hacks like this are humbling not only for the victim company but for all the password managers out there. Password managers will likely be stronger than ever.
I remain a fiercely strong advocate of having a password manager for many reasons but they all come down to this: They protect us from ourselves. We use better passwords, we use two factor authentication, we don’t repeat passwords, we don’t share passwords in an unsafe way, and we can use them to transfer information in the event of incapacity or death.

The truth is that I will probably stay with LastPass for now, try out a new password manager, and if I like the new one, I will probably migrate everything. I have over 300 entries in my
LastPass, many of which are old or useless. It’ll take me a while to migrate, but I’m all about purging no longer needed items.

Understand, however, that I actually do use “good password hygiene.” My master password is 18 characters long, is written down nowhere, and shared with no one. I change all my work related passwords every 90-180 days. I change my banking passwords about once a year. I use two-factor authentication on every account in which it is offered to me. I look at every single
banking transaction – personal and business – at least once a month. I use a credit report service to monitor my credit.

Yes, it’s a pain and takes up time. Yes, it’s totally worth it.
If you are not doing all these things, then you need to take action sooner and build some new habits.

How To Protect Against a Future Hack?

Do all those things I mentioned above:
1. Use a password manager.
2. Use strong, unique passwords,
3. Use two-factor authentication.
4. Use a password on your phone.
5. Change your passwords when needed.
6. Monitor your accounts for suspicious activity.

By doing these things, you can ensure that your online accounts are secure and protected against unauthorized access. I’ve been talking to people about their money for over 25 years. I have only had to start talking about identify theft and fraud in the last five or so. It’s a serious financial self-care topic now.
Please don’t ignore it.

If you need encouragement around password vaults, don’t hesitate to reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or
purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

What is a Password Vault?

A password vault is a secure digital repository for storing passwords and other sensitive information. Think of it as a virtual safe for your digital life. Instead of having to remember all your passwords, you can store them in a password vault and access them with just one master password.

Why Get One?

Do you remember the days when you used to keep your passwords on a spreadsheet or sticky notes on your computer monitor? And, yes, I know some of you are thinking “yes, and I still am!”  

The time has come to stop that.   

Why?

1. Spreadsheets on your computer can be accessed by someone with physical access to your device, whether authorized or not. 
2. Spreadsheets are not designed to store sensitive information like passwords and often don’t have the necessary security features to protect them (encryption, password protection).
3. Spreadsheets do not protect you from yourself.  A copy-and-paste from spreadsheet to login page does not keep prying eyes out, nor will pulling a password off your Notes file in your phone and pasting it in a crowded coffee shop.  You will be inclined to use the same passwords or those with only slight variations from site to site, making it easier to hack other sites once someone has one of your passwords.  An late-night, half-asleep response to a phishing email will not keep you from handing your password out accidentally.  
4. Spreadsheets do not create lengthy, complex passwords that are often required.  How many times have you struggled to come up with a 12-character password – with one uppercase letter, one lowercase letter, a numeral, a special character (but not the space!), not repeat your last password in any way or replicate your login name – type it in twice to verify it and have completely forgotten what variation worked by the time it’s accepted?  This is crazy-making.  

That’s where a password vault comes in. It makes logging into your accounts much easier, especially when you’re on the go with your phone.

The Benefits

Having a password vault has many benefits, including:

• Convenient and easy access to all your passwords with just one master password
• Secure storage of your passwords and sensitive information
• Ability to generate strong, unique passwords for each of your accounts
• Ability to log into your accounts quickly and easily, even when you’re on the go
• Enormous saving of time and frustration during your day dealing with passwords rather than your tasks at hand
• The ability to allow your successors and/or powers of attorney access your accounts in an emergency

This Will All Change Anyway, So Why Do This?

You’re right, internet security is getting better every day. Eventually, we may all log into our accounts using two devices, one of which will likely read our facial features or thumbprint. But until that day comes (and even after it does), it’s important to use the best practices for password protection.  These include:

• Employing strong, unique passwords (the vault will help you)
• Enabling two-factor authentication and using it
• Staying vigilant to signs of a breach

Features You Want to Have

When choosing a password vault, there are a few key features you should look for, including:

• Ease of use on desktop and mobile
• Emergency access feature
• Ability to generate strong, unique passwords

Embrace the Learning Curve

Yes, getting started with a password vault may take a little time and energy, but the benefits are worth it. Just like learning to text or use Facebook, you’ll get the hang of it in no time.  In the beginning, you’re going to struggle and wish you had never started.  Don’t give up.  The time savings and the security will be so worth it.

The Next Baby Step

Start by choosing a password vault product, signing up for the free version, and registering one password. Practice with that one site until you understand how it works. Once you get the hang of it, you’ll wonder how you ever managed without a password vault.

If you need encouragement to engage a password vault, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

When it comes to managing your financial life, it’s easy to get caught up in the day-to-day and lose sight of the bigger picture. But even if you’re generally on top of things, there are certain things you should be doing – and not doing – right now to ensure your financial health.

Popular Procrastinations – Do These First

We all have a tendency to put off certain tasks, and when it comes to our finances, there are a few that tend to get put off more than others. But the best way to tackle these procrastinations is to take the next best step towards getting them done. 

That step might be as simple as making a five-minute phone call or sending an email. But by taking that step, you’ll set the wheels in motion for the rest of the tasks that need to be done.

Get your estate planning done. 

This is an important step in ensuring that your assets are distributed according to your wishes after you pass away. It’s important to review your estate plan every few years, or whenever there’s a significant change in your life (such as a marriage or the birth of a child).

Implement a password vault. 

With so many online accounts and services, it’s borderline impossible to keep track of all your passwords and not repeat any of them. A password vault allows you to securely store all your login information in one place, making it easier to protect your accounts from hackers.

Look at your investment choices.

As an investor, it’s important to regularly review your portfolio to make sure it aligns with your goals and risk tolerance. This may involve reallocating assets, selling underperforming investments, or adding new positions.

Do an insurance review with your insurance agent. 

Your insurance needs can change over time, so it’s important to review your coverage with your agent to make sure you have the right amount and type of insurance to protect yourself and your family.

Invest in yourself and manage your career. 

Your career is one of your most valuable assets, so it’s important to invest in your professional development and take steps to advance your career.

Remember the Basics

In the midst of all the complex financial decisions you’ll make in your life, it’s easy to forget about the basics. But these fundamentals are the foundation of your financial plan, and they’re just as important as the more advanced strategies.

Maximize your retirement plan contributions if that’s part of your plan. 

By contributing as much as you can to your retirement plan, you’ll be taking advantage of the tax benefits and compound interest that can help you reach your retirement goals.

Determine whether the Roth or the traditional plan is the best choice for you. 

Both Roth and traditional retirement plans have their own set of pros and cons, so it’s important to understand the differences and choose the one that aligns with your goals and tax situation.

Maximize your health savings account at work if you have one.

A health savings account (HSA) is a tax-advantaged savings account that you can use to pay for qualified medical expenses. By contributing as much as you can to your HSA, you’ll be taking advantage of the tax benefits and saving for future healthcare expenses.

Make sure your cash reserve account is adequate.

Having a cash reserve is an important part of any financial plan, as it gives you a buffer to fall back on in case of an emergency.

Pay off any credit card debt monthly. 

Credit card debt can be a significant burden on your finances, so it’s important to pay it off.  Your credit cards should not be your emergency fund.  If you are unable to pay them off monthly, re-evaluate your spending plan.  

Review your financial plan and goals. 

Or at least schedule an appointment with your financial planner. Reviewing your financial plan and goals regularly will help you stay on track and make any necessary adjustments.

Stop Doing These

Just as there are certain things you should be doing to manage your finances, there are also certain things you should avoid to keep your finances on track.

Panicking or worrying about the market. 

While it’s important to stay informed about market conditions, it’s also important to remember that you can’t control the market. Downturns are a normal part of investing, and panicking or worrying about them can lead to poor investment decisions.

Watching too much news. 

The news can be a great source of information, but it can also be overwhelming and anxiety-inducing. Limit your consumption of news and focus on the information that’s most relevant to your investments and financial goals.

Looking over the fence. 

It’s easy to compare yourself to others and feel like you’re falling behind, but remember that everyone’s financial situation is different. Stay focused on your own needs and your own plan.

Fearing failure. 

Investing and building wealth requires taking risks, and there’s always the possibility of failure. But it’s important to remember that failure is a part of the process and that you can learn from your mistakes.

Perpetuating bad habits. 

Financial success also means taking care of yourself, both physically and mentally. If you find yourself overspending, overdrinking, or overindulging in social media, take steps to reduce those habits and focus on your overall well-being.

Where To Start

When it comes to managing your finances, it can feel like an overwhelming task. But remember, you don’t have to move the mountain in one day. Start by identifying one topic you need to tackle and take the next baby step towards getting it done. A baby step could be finding a file on your computer or sending a two-sentence email to get help. By taking small, manageable steps, you’ll be able to move the mountain, one shovelful at a time.

Managing your finances is an ongoing process that requires regular attention and adjustments. By taking steps to get your finances in order, remembering the basics, avoiding common mistakes, and focusing on your goals, you’ll be well on your way to achieving financial success.

If you want to talk about your next best steps, please reach out.  

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

November 9, 2022

By Jessica Lanning, JD CFP®

The most commonly owned asset — a bond — is also the most misunderstood by and mysterious to consumers. They buy them because they’re told to (40% of your portfolio!) and are told they will be the “balance” to a down stock market. Until they’re not. Or until interest rates go up and then all of a sudden they’re “bad.” This article explains how bonds work and what’s so “bad” about them in a rising interest rate market.

Bonds Explained

Oversimplification makes learning easier, so let’s make it simple.

First, think of bonds like a product. Really, you can buy and sell them like any other product. If they weren’t highly regulated, you’d see them on eBay.com. You might have a highly desired product attracting a lot of potential buyers or one only attractive to you with no potential buyers.

People lose sight of them as a product because they live in the financial world, which scares a lot of people, and because people don’t think about loans as being something you can sell. You can.

Second, think of bonds like a loan. Here’s the basic structure:

• You lend money to an entity…
• You get paid periodically based on an interest rate…
• For a set time…
• At the end of which, you get your money back.

For the sake of this exercise, let’s go buy one.

Let’s say you buy a bond that:

• Lends $100 to the state of Maryland.
• You get paid annually on that $100 at 3%. The first year you get $3, the second year you get $3 and so forth.
• The loan — or the term — ends in five years. You will get $3 every year for five years, or $15 total ($3 times five equals 15).
• At the end of five years, you get your money ($100) back.

Let’s review.

• You lend $100 to the state of Maryland at 3% per year.
• You get $3/year for 5 years, which is $15 total. That’s your profit.
• At the end of 5 years, you get your $100 back.

Simple enough.

What Happens When Interest Rates Rise

Let’s say interest rates go up. There are now bonds available where you can lend $100 to the state of Maryland and get 7% per year for five years.

Let’s also say we’re at the end of year two, and you want or have to sell the above bond that you bought. Remember, it’s a product. You can sell it.

Now put yourself in the shoes of your potential buyer. Your buyer has a choice:

Choice 1: Buy a bond where the buyer lends $100 to the state of Maryland and gets 7% per year for five years, which is $35 ($7 times five year equals $35) and get the $100 back at the end of five years.

Or

Choice 2: Buy your bond for what you paid for it ($100), which only has a 3% interest rate with 3 years left of payments and get $100 back at the end of the three years.

If you were this buyer, which one would you choose? Most people are going to take the first choice. It’s more money in one’s pocket even in three years’ time ($21 from three years of payments at 7% compared to three years of $3 for a total of $9). It will also provide two more years of income (another $14 for a total of $35) before getting the $100 back.

How To Sell a Lower Interest Rate Bond

Given that you know this is the case, what do you do to entice this buyer to buy your bond over Choice 1? You’d do what any retailer would do to sell something fast: You’d lower the price.

How do you lower the price on a bond? Instead of selling it for $100, which is what you paid, you would sell it for less. Watch how this works.

• You sell your bond for $60.
• The buyer gets the next three years’ payments for a total of $9 (three years at 3% equals $9).
• At the end of the three years, the buyer gets $100.
• Note: That’s $40 more than what the buyer paid ($100 minus $60) plus the $9 of income over three years.

Whoa, wait. The buyer gets $100 at the end? Yes, that’s right. That’s what the product promises. Just because the buyer bought it at $60 doesn’t mean the buyer gets $60 back. The buyer bought the product, which pays $100 at the end of the term.

Look at the math.  The buyer made $49 in three years ($9 of income and $40 in return) rather than $45 over five years in income alone on Choice 1. Pretty good deal for the buyer.  (And it might have been a good deal for you, too, if you needed the cash.)

Important Implications of this Reality

With any luck, many of your worlds should be colliding and lots of things should start making sense. Let me draw your attention to a few highlights.

First, the longer the term the more interest rate risk.  The chances that interest rates are going to change over 10 years is greater than over three years because there’s longer exposure to possible change.  If you as a buyer worry about changes in interest rates, buy bonds that last for shorter periods.

When rates are rising, shorter term bonds are going to allow you to allow the bonds to come to term (we call this “holding to maturity”) and you get all your money back.  Then, you can reinvest that money into bonds paying higher interest rates.  Keep those until they mature and do it again.

The extension of this is called “laddered bonds.” This is where bonds are bought such that they mature at intervals so that new bonds can be bought as the old ones mature and you’re never having all of them mature at the same time.

Second, your bond has a value.  Even if you don’t sell your bond, it has a price in the marketplace that changes with changes in the marketplace.  The custodian of your bond (wherever you get your statements from) is going to assign it a price whether you want to sell it or not.

The shock here is that you might be happy receiving income off your bonds, but your accounts values are going down making you feel like you’ve “lost money.”  You have not lost any money.  Unless the borrower on your loan defaults, you are going to get your income and your money back at the end.  If your intention is to hold it for the entire term, you don’t care about what its value is. Let it mature. Reinvest the money.

Lastly, everything comes with risk.  There’s a chance that interest rates change, there’s a chance the borrower on your loan defaults or doesn’t pay up at the end, etc.  While bonds are considered “safe” and “conservative,” not all of them are and not all of them are appropriate for everyone.

So Why Ever Sell a Bond?

Great logical next question.  People sell bonds typically because they need the cash or there’s a better deal in the marketplace and it’s worth selling a bond to buy something else.  It’s all about need and numbers.

In a rising interest rate market, it’s likely going to make sense to look at owning individual bonds for shorter periods of time.  Conversely, in a lowering interest rate market, it’s going to make sense to buy bonds that will pay higher interest rates over longer periods.  Predicting where interest rates are going to go is the trick.

Why Are Rising Interest Rates “Bad” for the Bond Market?

Again, to oversimplify….

With any luck, as you learned from this article, whether rising interest rates is “bad” completely depends on your perspective based on what you own, how long you intended to own it, and whether you are a buyer or a seller.

If you own a bond paying 3% for 10 years and a two-year bond is paying 4%, your bond probably doesn’t have a buyer, or if it does, it will be deeply discounted.  Again, it doesn’t matter that the value on your bond is low if you intend to hold the bond for the full term.

But let’s say you own bonds in a fund (a bucket of bonds).  Typically these funds are going to hold older bonds with lower interest rates.  If your fellow fund owners start cashing out, that fund may be forced to sell bonds when it would have otherwise kept them to maturity.  Because you do not control the individual bonds and when/if they get sold, your portfolio goes down.

If stocks are going down, too, this is going to feel particularly painful.  Fortunately, it hasn’t happened that often.  But it’s a good reason to actively manage individual bonds rather than own them through a fund.

If you want to explore what you own and the impact of the bonds in your portfolio, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

October 18, 2022

By Jessica Lanning, JD CFP®

It’s always a great feeling when you get a little bit of extra money, whether it’s through a bonus at work or a raise, a gift or an inheritance, the sale of an asset. This is often an opportunity to buy something or spend money on something you’ve wanted for a long time.

However, it’s important to make sure that you don’t overspend when this happens. You don’t want to quickly blow through your hard-earned cash and find yourself right back where you started. In this blog post, we will discuss some top strategies for avoiding overspending when you come into extra money.

The Money Landed — Now What?

When extra money lands in your lap that you did or did not expect, it’s highly tempting to spend it on something you’ve been coveting or craving for a long time. This is your moment to pause and reprioritize.

Consider where the money came from. Is this an inheritance? An unexpected gift? A hard-won bonus? Take some time to pause and connect with where it came from and what it means to you.

Special note about inheritances or life insurance payouts: I often encourage money recipients to do nothing with large sums of money for a year or more, particularly if it has a strong emotional component to it like an inheritance or hard-earned income. Money decisions are almost always made better when done in low-emotional environments. Most of the time, you’re better off pausing before you spend a windfall.

Reconsider your priorities. Maybe you need to pay down debt. Maybe the roof needs repair. There may be things in your life that need more attention right now that you hadn’t considered even a month ago.

People often think “When I get that money, I’m going to <fill in the blank>.”  Maybe it’s to pay down debt or buy a new car.  This is the time to think, “What is the highest and best use of this money for my financial well-being?”

Paying off debt might make sense. Saving more money might make more sense.  This is the time to run your numbers.  Paying off low-interest rate debt, while it might feel great, is most often a bad financial decision.

Watch your thinking. The word “deserve” is a hot button. Yes, of course, you deserve all sorts of things. But “deserve” is different than “want” is different from “need.” If you are prioritizing that fun new red sports car over getting the roof repaired, your estimation of your deservedness needs some rechecking.

Now, those of you struggling with what a need is versus a want versus what you deserve:  That’s another ball of wax.  For now, suffice it to say that if you are living in deprivation because you feel undeserving in some way, that’s where you need to place your attention and probably get some help sorting that out so you can live a fuller life.  Notice that I used the word deprivation.  Truly frugal people don’t feel deprived.  Don’t collapse the two.

Attention new high-income earners! My professional folks — think doctors, lawyers, etc. — are the worst about this. They’ve been in deprivation mode for so long, making so little money, and are so tired of ramen, rice and beans, that they lose it when they get that first job and start spending away.

That said, there are things they likely need: An upgraded wardrobe perhaps, more convenient living conditions to suit long work hours, and more space if they are also starting their families. Where I see this go most wrong is when they spend just about every dime because they “deserve” it or “have arrived” or “need to look like a professional.”

Don’t misunderstand. I’m not advocating to be unreasonably frugal or deprive yourself. Doing those things often have a negative equal and opposite reaction that does not serve you. Just make good, conscious decisions.

Check your values. Along these lines, it’s important to check your values. Is that fancy car in alignment with your values? How about that $1000 suit? Who do you want to be and how do you want to show up? Start here, buy accordingly.

Revisit your spending plan. The word “budget” has all sorts of negative connotations for folks, so spending plan works better. Every dollar of your income should be assigned a task, whether that’s to buy groceries or entertainment or go toward savings.

Ideally, save more. In a perfect world, when you make more money, you want to save more money. Keep your lifestyle the same for the most part. Maybe you take a nicer vacation or upgrade to first-class airline tickets once a year. But ideally, you should save more money. Early and often, slow and steady always wins the savings race.

How To Make These Decisions

There’s a time component and an item component.

Time. Again, taking long pauses before making a purchase is prudent. The money will land in your account, and you will likely want to immediately go buy the thing. Ask yourself:

If I wait five hours to make this decision will it matter?

If I wait five days to make this purchase will it matter?

If I wait five months?

Five years?

The longer you can wait the better. Then, make the decision and execute.

Allocating the money. Spend some time getting clear about how you want to allocate this money. How much to savings and how much to spending? Would a different allocation feel better? Ask yourself:

How will I feel five hours from now if I make this allocation/buy this thing?

How will I feel in five days?

In five months?

Five years?

Human beings are strongly biased toward instant gratification. That’s not a bad thing. We just need to check our motivations and our feelings so that they’re not running the show.

At the end of the day, this is your life and your money. No one should care what you do with it but you. Make good, conscious decisions so that even if you don’t like the outcome in five years, you can say you made the right decision at the time, particularly with new windfalls.

If you need help sorting out what to spend and what to save, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.