Pay Dirt: Money Advice Column

Pay Dirt is Slate’s money advice column. Have a question? Send it to Kristin and Ilyce here. (It’s anonymous!)

Sustainable Investing and Financial Advisors

I am someone with a relatively stable nest egg and some investments. Recently, I have been thinking that I would like to make a change—but I have no idea how to speak to my financial advisor, since this is not necessarily something they will want to hear.

I want to move my investments from where they are now (a major bank with shoddy climate policies) and try to invest them in something more aligned to my values (like green energy).

I have no idea how to approach this, however. I feel like I need to have a script prepared. Any advice?

You’re not asking for anything that should send a financial advisor into a tizzy. More and more people are becoming interested in sustainable investing, so there’s a good chance your advisor can walk you through it.

But before you approach them about it, you might as well do some research on your own. Look into ESG funds, green bonds, and maybe also credit unions or banks that have better environmental policies—they might be pitched as “green” or “climate friendly” institutions. There are also platforms specifically for this kind of investing, like some of Vanguard’s ESG options or firms that focus on socially responsible investing (SRI). Start your research here so you have some specific intuitions or funds in mind to talk through with your advisor.

You asked for a script, so I’d say something like: “I want to move toward more sustainable investments. What are my options and what would it cost me tax-wise to make changes?” If your advisor acts like this is some outrageous request or there aren’t good options available, that’s useful information about whether you want to keep working with them. (If you’re thinking of switching advisors you could also search for a Chartered SRI Counselor.)

That said, there’s a good chance your advisor will advise against dumping all of your investments at once, and that’s financially sound advice, because the tax implications alone could put a big dent in your nest egg. They might encourage you to start by figuring out which of your current holdings are the worst offenders when it comes to the issues that are important to you, then look into the penalties for selling, and maybe plan a gradual transition into investments that align more with your values.

This is all something your advisor should be comfortable helping you with, but the more you understand the terminology and implications associated with what you’re asking, the better prepared you’ll be.

Finding a Personal Finance Program

I’d like to find a good, inexpensive “personal finance” program for my use. I’ve been using Quicken for some time now, and in general, I think it’s a huge help.  It lets me keep a close eye on my finances and easily look things up.  But…I’m not that happy with the program itself. It’s a clunky program, and I can’t even rely on it to maintain a balance correctly—and my use of it is very basic, just downloading credit card and bank accounts.

I’m using Quicken on a very basic level—I download all my expenditures from two credit cards, checking primarily (and a few related accounts).  Then I review it, assign categories and put a short memo on each describing what I bought.   (I have no experience with bookkeeping and no real aptitude either.)

I tend to do a lot of small shopping trips for groceries, for example, so if possible I’ll list what I bought, as well as notes on any other purchase.  I’m elderly, live alone, so I’m not a big spender.   I find it’s a huge help, in routine tracking, but also when I need to locate a particular expense, from last year, for example, or for a category over time.  I keep a running list of charitable donations in Excel, but if needed, I can run a search on Quicken to doublecheck a particular donation (when, how much and so forth).   Then I get totals by category, so I can see spending for groceries, utilities—and on subscriptions—somewhat.

Quicken fails in many respects, though.  I can’t get it to balance, and I can’t find an easy way to remove payment transfers from the spreadsheet (they clutter up the page).  It often gets the category wrong, even with payees that I use all the time.

So, I’m wondering: What else is there, and what does it cost? I’ve looked briefly at QuickBooks, and it seems expensive, for my purposes and I don’t know if I’ll wind up with the same issues.

Do you have advice, or do you know of a good source? I have Googled this a bit but I would appreciate some more specific advice.

As a budget nerd who has experimented with more budgeting tools than I can count, I can tell you that I have yet to come across a single platform that is sheer perfection. All of them have at least some minor issues with clunkiness.

I’m not sure if you’re using Quicken Classic or Quicken Simplifi (the latter has a simpler interface and might be a good option for basic budgeting), but if your main issue is that the balances aren’t updating correctly, you might have that same issue with either platform. I’ve used a handful of different budgeting tools and have had this issue with all of them at some point or another. Before you switch tools, it might help to first reach out to Quicken’s customer service team and ask if there are easy solutions for some of the problems you’re encountering. The fix might be as simple as reconnecting a bank account or turning on a feature that allows you to hide those transfers, for example.

That said, here are a few budgeting alternatives, if you’re curious.

1. You Need a Budget (YNAB)

You Need a Budget (YNAB) has a huge fanbase of people that sing its praises. It’s a little too complicated for my liking, but I seem to be an outlier, because anyone I’ve met who has tried YNAB swears by it. It’s $14 a month and focuses on budgeting, but handles transaction tracking really well. It’s meticulous about accounting for every penny, so you get an accurate and detailed view about where your money is going.

2. Empower

Empower is another popular option, and they have a free version that’s a solid choice for basic account tracking and transactions. It’s also useful for tracking investments and net worth.

4. Tiller

Tiller works through Google Sheets if you like the idea of customizing your own setup while still getting automatic bank downloads. Since you already use Excel for tracking, Tiller might feel familiar and give you the customization control you need at around $7 per month.

5. Monarch Money

Monarch Money is another excellent option. It’s $8-14 per month depending on whether you pay monthly or annually. Reviews say it excels at automatic transaction categorization and has a clean interface. So if you’re looking for more simplicity, Monarch might be your best bet.

The truth is, there are so many budgeting apps and tools out there, though, and it’s hard to keep track of them all (here’s a pretty comprehensive and up-to-date comparison, though). When you’re comparing these, look for an app that can reliably connect to all your banks and credit cards without login issues, since that seems to be your frustration with Quicken—maintaining an accurate view of your balances. Some apps are great but have a steep learning curve, while others are intuitive but limited in features, so think about whether you want something simple that just works or something more detailed that might take time to learn.

Name Changes and Credit Bureaus

Back in May, I legally changed my name, including reporting the name change to the Social Security Administration. (For the record, my Social Security number did not change.) Once that was done, my understanding was that the change would be reported to the various credit bureaus, and my existing credit records would simply be updated with the new name, and continue to reflect all of my credit history.