Podcast Summary: The Interview with Leslie Heaney – [REVISIT] Girls Just Want To Have FUNDS featuring Lacy Garcia

Introduction

In this enlightening episode of The Interview with Leslie Heaney, host Leslie engages in a profound conversation with Lacey Garcia, the founder and CEO of Willow. Willow is an award-winning online platform designed to connect women across generations—Gen X, Millennials, and Gen Z—with their ideal financial advisors, operating similarly to a dating app. The episode delves deep into the importance of financial literacy, effective budgeting, building a rainy day fund, saving for college, and the nuances of finding a compatible financial advisor.

Understanding Willow: The Matchmaking Approach to Financial Advising

Leslie introduces Lacey Garcia and Willow, highlighting the platform’s unique approach to pairing individuals with financial advisors based on both financial needs and personal compatibility.

Leslie [00:05]: “Willow works like a dating app, providing a free concierge matching service so you can find the financial advisor that best connects with you on a personal level.”

Lacey elaborates on Willow’s mission to empower women and the next generation by ensuring financial advisors are not only qualified but also empathetic and aligned with Willow’s ethical standards.

Lacey Garcia [01:58]: “We partner with financial advisors who are trained to serve women and next-gen investors, ensuring they are true fiduciaries focused on supporting clients beyond just their financial needs.”

The Necessity of Financial Literacy

The conversation emphasizes the critical need for financial literacy, especially among women who often find themselves navigating finances without adequate knowledge or support.

Lacey Garcia [10:00]: “The vast majority of women in the United States feel that they don't even know where to start with their finances or that they're totally behind.”

Leslie underscores how financial advisors are often perceived as exclusive to certain economic brackets, a misconception Willow aims to dispel by making financial advising accessible to a broader audience.

Leslie [05:01]: “Many people think that having a financial advisor is something that is really just reserved for people in a certain economic bracket, and it's not something that's accessible to everyone.”

Personal Journey: From Divorce to Founding Willow

Lacey shares her personal story of starting Willow after experiencing a challenging divorce, which highlighted the lack of accessible and empathetic financial advising for individuals in transition.

Lacey Garcia [09:18]: “I fell into the category where it looks like I'm successful and have money, but I'm struggling to make things like private school education happen... I didn't feel like I could find the right advisor.”

This experience motivated her to create a platform that bridges the gap between individuals and advisors who understand their unique circumstances.

Innovative Financial Coaching: Blending Life and Financial Planning

A significant portion of the discussion revolves around integrating financial coaching with life coaching, recognizing that money management is deeply intertwined with emotional and life events.

Lacey Garcia [15:09]: “We created the concept of financial life coaching, blending financial coaching with life coaching because money is so emotional, especially during major life transitions like divorce or widowhood.”

Leslie draws parallels to the evolution of patient-centered care in medicine, highlighting the shift towards more holistic financial advising.

Leslie [16:20]: “It's like more family-centered care in medicine... bringing in real-life experiences and voices to the conversation.”

Practical Financial Tips and Strategies

Lacey provides actionable advice for listeners seeking to improve their financial standing:

1. Set and Document Goals

   Lacey Garcia [24:48]: “The first piece of advice that I give to anybody is to think about what are your goals, what do you want, and then write them down. People who write their goals down are 42% more likely to achieve them.”

2. Understand and Manage Expenses

   Lacey Garcia [25:19]: “Do you know how much your life costs? If you don't, make a budget. It's an eye-opening experience.”

3. Optimize Savings with High Yield Accounts

   Lacey advocates for utilizing High Yield Savings Accounts to maximize interest earnings, especially for emergency funds.

   Lacey Garcia [28:33]: “High Yield Savings Accounts offer much higher interest rates and compound daily, making them ideal for building cash reserves.”

Saving for Education: Demystifying 529 Plans

The discussion highlights the benefits and misconceptions surrounding 529 plans, encouraging listeners to utilize them for saving for education.

Lacey Garcia [35:56]: “If you have a child, the best gift you can give new parents is a 529 plan. It offers significant tax advantages and can be used for K-12 education, vocational schools, and more.”

Leslie praises the flexibility and financial advantages of early and strategic saving for educational expenses.

Financial Conversations in Relationships

Leslie and Lacey address the importance of open financial discussions between partners to foster financial harmony and prevent misunderstandings that could lead to marital issues.

Lacey Garcia [38:47]: “One of the best ways you can show that you love yourself and your partner is to talk about your finances. Schedule a 'money date' when everyone is relaxed.”

They emphasize the need for early and honest conversations about finances, including the consideration of prenups to align financial expectations.

Retirement Planning: Starting Early and Utilizing Employer Benefits

Retirement planning is another critical topic covered, with Lacey advising listeners to take advantage of employer-sponsored 401(k) plans and the benefits of compound interest.

Lacey Garcia [46:07]: “If you're employed, the best vehicle to start with is your 401(k). Employers typically offer matches, which equates to free money and accelerates wealth building.”

She also encourages exploring IRA and Roth IRA options for those without employer-sponsored plans.

Building a Relationship with Your Financial Advisor

Lacey explains the various fee structures and services offered by financial advisors, emphasizing Willow’s commitment to matching clients with advisors who align with their personal and financial needs.

Lacey Garcia [51:36]: “We work with fiduciary advisors who prioritize their clients' interests. Advisors may charge based on Assets Under Management (AUM), flat fees, or hourly rates, offering flexibility to suit different financial situations.”

Leslie inquires about the dynamics of working with financial advisors, and Lacey assures that Willow facilitates meaningful and supportive relationships tailored to individual preferences.

Conclusion and Key Takeaways

As the episode wraps up, Lacey shares three essential financial tips for listeners:

1. Set and Regularly Review Financial Goals

   Lacey Garcia [49:34]: “Write down your goals and regularly check in on them to stay accountable and make progress.”

2. Understand Your Expenses and Seek Professional Guidance

   Lacey Garcia [49:34]: “If you’re unsure about your finances, consider talking to a financial advisor. Platforms like Trust Willow offer free initial consultations to get started.”

3. Utilize Available Financial Tools and Resources

   Lacey Garcia [49:34]: “Take advantage of tools like high yield savings accounts, 529 plans for education, and employer-sponsored retirement plans to optimize your financial growth.”

Leslie expresses her admiration for Lacey’s work and encourages listeners to explore Willow for their financial advising needs.

Leslie [56:52]: “Trust Willow has done the due diligence on these advisors, making financial advising accessible and tailored to both women and men who feel underserved by traditional financial services.”

Final Thoughts

This episode of The Interview with Leslie Heaney offers a comprehensive exploration of financial literacy, emphasizing the importance of accessible and empathetic financial advising. Lacey Garcia’s insights and practical advice provide listeners with valuable strategies to take control of their financial futures, making this episode a must-listen for anyone seeking financial empowerment.

Notable Quotes

• Leslie [00:05]: “Willow works like a dating app, providing a free concierge matching service so you can find the financial advisor that best connects with you on a personal level.”

• Lacey Garcia [15:09]: “We created the concept of financial life coaching, blending financial coaching with life coaching because money is so emotional.”

• Lacey Garcia [28:33]: “High Yield Savings Accounts offer much higher interest rates and compound daily, making them ideal for building cash reserves.”

• Lacey Garcia [35:56]: “If you have a child, the best gift you can give new parents is a 529 plan.”

• Lacey Garcia [38:47]: “Schedule a 'money date' when everyone is relaxed.”

Further Information

To explore Willow and find a compatible financial advisor, visit trustwillow.com.

End of Summary