“It’s better that you do something than if you know what to do and you do nothing.” -Yvette Butler
It’s time to have The Talk. The one that everyone avoids having but every adult needs to hear. Compound interest, trust fund, 401K- The Money Talk.
It can be overwhelming and confusing, but you need a plan. A plan to pay off your debt, diversify your income, build generational wealth, and reach new investment levels. The worst thing that you can do, is to not talk about it. Avoiding the talk only widens the financial gap.
That’s why Yvette Butler is working every day to break the money taboo.
Yvette Butler is the Head of Private Bank, Wealth Advisory & Premium Wine at Silicon Valley Bank. When it comes to personal and business finances, Yvette is all about breaking the money taboo. While on our show, Yvette explains everything you need to know about financial planning, freedom, and education for you and your business.
Here are some of her tips from episode 32 on My Dream Big Club’s podcast:
1. Break the (Money) Taboo
There are a lot of reasons why we don’t talk about money: we feel guilty or shameful, we’re told it’s impolite, we don’t want to admit that we’re struggling, etc. But that is the thing that holds us back, and Yvette calls it the Money Taboo. “There’s a small group that continues to have those kitchen table conversations, and that puts them even further ahead of us,” Yvette says. She tells us that having those conversations and breaking the taboo, is the first step towards closing the financial wealth gap.
She offered some questions to guide our initial conversations and reflections:
What do you want?
What do you have as a long-term goal?
What do you want to give back?
Before you even put those answers into action, Yvette stresses the importance of having the conversation to identify the difference between wants and needs.
Once you have a goal in mind, you can start creating a personalized plan to get there.
2. Financial Freedom
For Yvette, financial freedom means only two things. “One, leaving a legacy for your kids,” she says. “And the second is using that legacy to make a difference in the world where you can fund institutions, you can fund research...”
Financial freedom doesn’t come all at once, but Yvetter gives us a checklist to start. “There’s a hierarchy of needs... First, you have to have the basics taken care of,” Yvette says. “Then you have to have a diversified core portfolio.” That portfolio should be mostly passive.
Having school debt paid off or funded as well as your retirement is the third requirement. The final step is participating in the innovation economy because that’s where you are going to get outsized returns.
3. Financial Planning and Investing
Borrowing for business, borrowing against a 401K, creating a trusts, calculating net worth - Yvette leads us through it all. “You increase the wealth gap just from a lack of knowledge,” Yvette says. “And that is the essence of the whole story.” It can be overwhelming, especially when you’re just starting. But before you even start setting up a financial plan, it’s important to know what your options are.
“That’s ultimately what wealth management is all about,” Yvette explains. “I would say that financial planning is equally as important as asset allocation and investing.”
Failure to plan is planning to fail.
Click here to listen to MyDBC Episode 32 and catch up on other episodes.