1 00:00:00,080 --> 00:00:03,000 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt, 2 00:00:03,120 --> 00:00:26,960 Speaker 1: and today we're discussing why financial advisors aren't all bad. Still, 3 00:00:27,160 --> 00:00:29,400 Speaker 1: they're not all bad, but most of them are bad. 4 00:00:29,560 --> 00:00:33,839 Speaker 1: Right Well now, I wouldn't even say that most of 5 00:00:33,880 --> 00:00:35,920 Speaker 1: them aren't bad, but it's just kind of funny because 6 00:00:35,920 --> 00:00:37,760 Speaker 1: we've talked about this before and often we talk about 7 00:00:37,760 --> 00:00:41,080 Speaker 1: how we necessarily a lot of times don't need financial advisors, 8 00:00:41,159 --> 00:00:42,559 Speaker 1: right for for a lot of folks, it may not 9 00:00:42,640 --> 00:00:45,680 Speaker 1: be necessary, but there are some instances when having a 10 00:00:45,720 --> 00:00:48,959 Speaker 1: financial advisor in your corner where that's important, and so 11 00:00:49,040 --> 00:00:52,000 Speaker 1: because of that, it's important to know what those instances are, 12 00:00:52,120 --> 00:00:53,640 Speaker 1: as well as some of the different things that you 13 00:00:53,640 --> 00:00:55,560 Speaker 1: need to keep an eye out for when you are 14 00:00:55,760 --> 00:00:58,120 Speaker 1: looking at financial advisors. So that's why we're talking about 15 00:00:58,160 --> 00:01:01,200 Speaker 1: this today. And the role of financial advice has expanded, 16 00:01:01,440 --> 00:01:04,160 Speaker 1: the services are offering have grown, and I think it's 17 00:01:04,160 --> 00:01:07,360 Speaker 1: important to talk about the nature of what a financial 18 00:01:07,400 --> 00:01:10,319 Speaker 1: advisor is, what they can do for you, and whether 19 00:01:10,400 --> 00:01:12,640 Speaker 1: or not you should even be considering one. And so, yeah, man, 20 00:01:12,640 --> 00:01:13,920 Speaker 1: I think we've got a lot to share on this 21 00:01:13,959 --> 00:01:16,560 Speaker 1: one today. Yeah, man, But first I've got a frugal 22 00:01:16,640 --> 00:01:20,880 Speaker 1: or cheap for you, we're bringing it back Kate. My wife. 23 00:01:21,480 --> 00:01:25,520 Speaker 1: My wife, she was wanting her hair done. I guess 24 00:01:25,520 --> 00:01:27,040 Speaker 1: it's been a couple of months now at this point, 25 00:01:27,280 --> 00:01:30,880 Speaker 1: but she was wanting color and cut and dude, in Atlanta, 26 00:01:30,959 --> 00:01:32,760 Speaker 1: you get something like that going on, and it's going 27 00:01:32,840 --> 00:01:36,200 Speaker 1: to cost you a lot of money, like like overs 28 00:01:36,200 --> 00:01:38,800 Speaker 1: get your hair done and not cheap. Yeah, definitely not cheap, 29 00:01:38,920 --> 00:01:42,120 Speaker 1: especially living in the city, right, And she was specifically 30 00:01:42,120 --> 00:01:44,840 Speaker 1: wanting this this thing done called I don't exactly not 31 00:01:44,840 --> 00:01:48,000 Speaker 1: how to pronounced. I think it's ballyage or ballyage something 32 00:01:48,000 --> 00:01:49,840 Speaker 1: like that. Sounds like something fancy that would be expensive. 33 00:01:49,880 --> 00:01:51,840 Speaker 1: It's it's a French technique. Evidently she was telling me 34 00:01:51,840 --> 00:01:54,160 Speaker 1: about it, but she was wanting that specifically, which is 35 00:01:54,200 --> 00:01:56,720 Speaker 1: a little bit more expensive. And so she was kind 36 00:01:56,720 --> 00:01:59,360 Speaker 1: of stuck with the conundrum of like, is this something 37 00:01:59,400 --> 00:02:01,480 Speaker 1: I are we gonna d I why this? Or do 38 00:02:01,520 --> 00:02:04,280 Speaker 1: I go in and pay top dollar to have it done. 39 00:02:04,840 --> 00:02:07,400 Speaker 1: And the reason we're talking about it is obviously because 40 00:02:07,440 --> 00:02:10,119 Speaker 1: she took the risk. You know, she was risking being 41 00:02:10,200 --> 00:02:12,840 Speaker 1: cheap in order to be frugal and save a few bucks. 42 00:02:12,919 --> 00:02:14,960 Speaker 1: That's because she made you do it for her, right, 43 00:02:15,720 --> 00:02:18,400 Speaker 1: she made me do it. But she pulled up some 44 00:02:18,480 --> 00:02:22,000 Speaker 1: great tutorials online. I think she spent a lot of time, yeah, 45 00:02:22,480 --> 00:02:24,520 Speaker 1: finding the right one. Maybe maybe too much time, but 46 00:02:24,560 --> 00:02:27,240 Speaker 1: she found the best tutorial for me to watch, and 47 00:02:27,360 --> 00:02:29,359 Speaker 1: she bought like the really good chemicals, Like you can 48 00:02:29,360 --> 00:02:32,760 Speaker 1: buy the actual chemicals, the actual bleach and toner, all 49 00:02:32,760 --> 00:02:35,920 Speaker 1: that kind of stuff that the salons used. And it 50 00:02:36,000 --> 00:02:38,280 Speaker 1: costs way more, but when you're looking at you know, 51 00:02:38,400 --> 00:02:40,440 Speaker 1: more than ten times that to have this done in 52 00:02:40,440 --> 00:02:43,520 Speaker 1: a salon, it's well worth it to get the real stuff, right, 53 00:02:43,560 --> 00:02:45,440 Speaker 1: to get the good stuff. So yeah, man, we did that. 54 00:02:45,680 --> 00:02:47,400 Speaker 1: I watched it tutorial and I was like, are you 55 00:02:47,440 --> 00:02:50,160 Speaker 1: sure you want to go through with this? Because here's 56 00:02:50,160 --> 00:02:52,080 Speaker 1: the thing, Like, I've never done this before. Aught your 57 00:02:52,080 --> 00:02:54,240 Speaker 1: marriage to a new level. We did. We seriously, Like 58 00:02:54,320 --> 00:02:56,320 Speaker 1: I've cut her hair before, you know, I cut my 59 00:02:56,360 --> 00:02:57,919 Speaker 1: We we've talked about this before, one of the things 60 00:02:57,960 --> 00:02:59,880 Speaker 1: we do, Like I've I've cut my own hair since 61 00:02:59,880 --> 00:03:02,880 Speaker 1: I think like middle school, but I have never done 62 00:03:02,919 --> 00:03:05,679 Speaker 1: anything with chemicals before. I was super insure about that 63 00:03:05,760 --> 00:03:07,320 Speaker 1: kind of freaked me up, but Kate was down with it. 64 00:03:07,360 --> 00:03:09,919 Speaker 1: She's like, watch this. She's like, I trust you. And 65 00:03:10,000 --> 00:03:13,480 Speaker 1: we went for it, dude, and the results results were in. 66 00:03:13,919 --> 00:03:16,440 Speaker 1: It turned out pretty good. She was happy with it, 67 00:03:16,840 --> 00:03:19,079 Speaker 1: especially considering that it was the first time we'd ever 68 00:03:19,080 --> 00:03:21,919 Speaker 1: done it, you know, and so we did it and 69 00:03:21,960 --> 00:03:23,400 Speaker 1: I was you know, I asked her after the fact. 70 00:03:23,400 --> 00:03:25,000 Speaker 1: I was like, is this something we're gonna do in 71 00:03:25,040 --> 00:03:27,440 Speaker 1: the future, And she was like totally. She was on 72 00:03:27,480 --> 00:03:30,440 Speaker 1: board with it. She was happy with the results. We're 73 00:03:30,480 --> 00:03:32,280 Speaker 1: not going to post a picture of it. I didn't 74 00:03:32,320 --> 00:03:34,520 Speaker 1: take anything. It was it was a while ago. But 75 00:03:34,520 --> 00:03:36,040 Speaker 1: but yeah, man, is that I feel like this is 76 00:03:36,080 --> 00:03:38,480 Speaker 1: a good example of, you know, one of these areas 77 00:03:38,480 --> 00:03:41,400 Speaker 1: in our life where we can save some money. But 78 00:03:41,600 --> 00:03:43,160 Speaker 1: make sure you do the research, make sure you have 79 00:03:43,240 --> 00:03:45,360 Speaker 1: the proper tools on hand. Like I went out to 80 00:03:45,400 --> 00:03:47,000 Speaker 1: the Sally beauty salon and make sure I had like 81 00:03:47,040 --> 00:03:48,600 Speaker 1: the right gloves and everything, because I don't want like 82 00:03:48,600 --> 00:03:50,800 Speaker 1: that bleaching my fingers, So I had those black gloves 83 00:03:50,800 --> 00:03:54,440 Speaker 1: that they use in the beauty salon. I like, legit. Well, 84 00:03:54,480 --> 00:03:56,520 Speaker 1: now that the word of your skills is getting out, 85 00:03:56,600 --> 00:03:58,480 Speaker 1: you're gonna have people right and left lining up to 86 00:03:58,560 --> 00:03:59,960 Speaker 1: have their hair done by you. Yeah, I don't think 87 00:04:00,560 --> 00:04:03,720 Speaker 1: it's not that good, but I think over time it 88 00:04:03,800 --> 00:04:05,560 Speaker 1: really will get to that level. I feel like we 89 00:04:05,560 --> 00:04:08,080 Speaker 1: were able to get Kate's hair like of the way there. 90 00:04:08,280 --> 00:04:11,600 Speaker 1: We were lacking ten per and like the quality, but seriously, 91 00:04:11,640 --> 00:04:12,920 Speaker 1: like beyond that, I feel like the next time we 92 00:04:13,000 --> 00:04:16,160 Speaker 1: might get it up to like the way there. And 93 00:04:16,600 --> 00:04:18,400 Speaker 1: it did take some time though, so like it took 94 00:04:18,400 --> 00:04:20,919 Speaker 1: about maybe an hour of my time, but it was 95 00:04:20,920 --> 00:04:22,800 Speaker 1: on the weekend. We're just kind of hanging out, hanging 96 00:04:22,800 --> 00:04:24,839 Speaker 1: out with the kids, cleaning the house some and the 97 00:04:24,880 --> 00:04:26,240 Speaker 1: girls were wanting to watch a movie and they wanted 98 00:04:26,279 --> 00:04:29,039 Speaker 1: to watch Lion King. Uh, like the real version, you know, 99 00:04:29,160 --> 00:04:31,240 Speaker 1: not the cartoon version. Have you seen the new like 100 00:04:31,240 --> 00:04:32,840 Speaker 1: the real version I have. Yeah, it was good. It's 101 00:04:32,880 --> 00:04:34,920 Speaker 1: freaking amazing. Dude. We've watched to play too many Disney 102 00:04:34,920 --> 00:04:38,320 Speaker 1: movies now Disney Plus. That's why like's like we've we've 103 00:04:38,320 --> 00:04:40,159 Speaker 1: got Disney Plus now we're watching all the good movies. 104 00:04:40,200 --> 00:04:42,560 Speaker 1: But so we had that on we knocked it out 105 00:04:42,600 --> 00:04:44,440 Speaker 1: of the park man nice man. Well, yeah, I love 106 00:04:44,560 --> 00:04:46,560 Speaker 1: that decision to to give it a go at least, 107 00:04:46,640 --> 00:04:49,320 Speaker 1: and it reminds me of doing your own pest control 108 00:04:49,360 --> 00:04:50,800 Speaker 1: Matt we which we talked about a long time ago. 109 00:04:50,800 --> 00:04:53,440 Speaker 1: It's been a long time, but it saves you so 110 00:04:53,520 --> 00:04:55,839 Speaker 1: much money and you can buy the exact same stuff 111 00:04:55,880 --> 00:04:58,320 Speaker 1: that the pros use. There's an article about that on 112 00:04:58,320 --> 00:05:00,480 Speaker 1: our website at how the Money dot com. But it's 113 00:05:00,480 --> 00:05:02,200 Speaker 1: one of those things that people might be like, oh no, 114 00:05:02,400 --> 00:05:04,599 Speaker 1: there must be some sort of proprietary data that I 115 00:05:04,640 --> 00:05:08,760 Speaker 1: don't have, But now really know, the Internet exists and 116 00:05:08,839 --> 00:05:10,680 Speaker 1: the data is there for all of us to look at. 117 00:05:10,839 --> 00:05:13,520 Speaker 1: When it comes to you know, doing whatever this Bai 118 00:05:13,960 --> 00:05:16,920 Speaker 1: baile age or whatever. I think it's bollyash, you know, 119 00:05:16,960 --> 00:05:19,279 Speaker 1: it's worth mentioning to that. Maybe I kind of have 120 00:05:19,320 --> 00:05:20,840 Speaker 1: the artist touch a little bit, like I was able 121 00:05:20,880 --> 00:05:22,840 Speaker 1: to get it to that level, I would probably have 122 00:05:22,920 --> 00:05:25,400 Speaker 1: bungled it completely. Are you gonna do Emilies here? Now? 123 00:05:25,960 --> 00:05:27,839 Speaker 1: I'm gonna let you do her hair now? I don't 124 00:05:27,880 --> 00:05:30,280 Speaker 1: have time for that, Okay, all right, although Kate has 125 00:05:30,279 --> 00:05:33,560 Speaker 1: cut her cut Emily's hair before, that's right, right for sure? Yeah, 126 00:05:33,600 --> 00:05:36,200 Speaker 1: And it's saved us a good bit of money. So obviously, 127 00:05:36,320 --> 00:05:39,240 Speaker 1: professional stylists exists for a reason, just like professional pest 128 00:05:39,240 --> 00:05:41,760 Speaker 1: control companies exist for a reason. But I think for 129 00:05:41,920 --> 00:05:45,400 Speaker 1: most of us, if we're willing to accept inferior results, 130 00:05:45,440 --> 00:05:47,080 Speaker 1: we can save a whole lot of money. Yeah. And 131 00:05:47,120 --> 00:05:51,600 Speaker 1: the degree of inferiorness depends per person, right, yeah, exactly. 132 00:05:51,640 --> 00:05:54,039 Speaker 1: That might be very inferior or it might be pretty good. 133 00:05:54,120 --> 00:05:55,800 Speaker 1: So it's up to you and what you think you 134 00:05:55,839 --> 00:05:58,000 Speaker 1: can tackle, no doubt. All right, Matt, let's mention the 135 00:05:58,000 --> 00:06:00,080 Speaker 1: beer that we're having on the show today. We're in 136 00:06:00,160 --> 00:06:04,359 Speaker 1: Catharsis by Treehouse Brewing Company and Brian and Caitlin listeners 137 00:06:04,360 --> 00:06:07,719 Speaker 1: from Massachusetts and this one our way much thanks, because 138 00:06:07,720 --> 00:06:10,440 Speaker 1: Treehouse is a brewery that has lines out the door 139 00:06:10,520 --> 00:06:13,280 Speaker 1: for their beer seriously super high demand. So I'm really 140 00:06:13,279 --> 00:06:15,760 Speaker 1: excited to try this porter from Treehouse today on the 141 00:06:15,760 --> 00:06:17,800 Speaker 1: show with you today, my friend. Yeah, they these are 142 00:06:17,839 --> 00:06:19,720 Speaker 1: one of these breweries that's like a beacon. All these 143 00:06:19,760 --> 00:06:21,760 Speaker 1: other small berries have been popping up the past few years. 144 00:06:21,760 --> 00:06:24,480 Speaker 1: You know, they're they're looking to the Treehouse that's sort 145 00:06:24,520 --> 00:06:26,800 Speaker 1: of like this beacon as as like this lighthouse as 146 00:06:26,800 --> 00:06:29,240 Speaker 1: they're navigating the foggy waters of of how to run 147 00:06:29,400 --> 00:06:32,640 Speaker 1: a brewery. Man, you're so good at analogies. That's good 148 00:06:32,640 --> 00:06:35,640 Speaker 1: to think. I feel inspired by this beer Treehouse Lighthouse. 149 00:06:35,640 --> 00:06:37,839 Speaker 1: I can see how you made that. Is that what 150 00:06:37,880 --> 00:06:40,360 Speaker 1: I was thinking? I think, so get out of my head. Yeah, 151 00:06:40,400 --> 00:06:42,480 Speaker 1: but always excited to have a treehouse beer. It's very 152 00:06:42,560 --> 00:06:44,640 Speaker 1: rare and always a pleasure. And we'll talk about our 153 00:06:44,680 --> 00:06:46,400 Speaker 1: thoughts on this one at the end of the episode. 154 00:06:46,400 --> 00:06:48,400 Speaker 1: All right, onto the subject at hand. We're talking about 155 00:06:48,480 --> 00:06:51,760 Speaker 1: financial advisers and how they're not all bad. There are 156 00:06:51,839 --> 00:06:54,479 Speaker 1: professionals who can help us in almost every aspect of 157 00:06:54,480 --> 00:06:56,880 Speaker 1: our lives. Right, in some cases we can go it alone, Matt, 158 00:06:56,920 --> 00:06:59,320 Speaker 1: I think you and I we we tend towards going 159 00:06:59,320 --> 00:07:00,920 Speaker 1: it alone, as we just talked about, right, we we 160 00:07:01,080 --> 00:07:03,920 Speaker 1: like I like the d I Y approach saves this money. Yeah, 161 00:07:03,920 --> 00:07:05,640 Speaker 1: we don't mind experimenting a little bit here and there 162 00:07:05,680 --> 00:07:07,400 Speaker 1: to see if we can save more money. Specifically on 163 00:07:07,400 --> 00:07:10,920 Speaker 1: our wives. Yeah, we like to use them as test subjects. 164 00:07:11,080 --> 00:07:13,920 Speaker 1: In some cases it's a slam dunk, easy decision. However, 165 00:07:13,960 --> 00:07:15,960 Speaker 1: I'm not gonna watch a YouTube video on how to 166 00:07:16,000 --> 00:07:19,040 Speaker 1: perform surgery through my kids tonsils. Right, that's like probably 167 00:07:19,040 --> 00:07:21,360 Speaker 1: a little a little too far fetch for me to undertake, 168 00:07:21,480 --> 00:07:23,080 Speaker 1: just barely, just one step too far and one step 169 00:07:23,160 --> 00:07:25,120 Speaker 1: too far. Of course, I'm gonna let a doctor handle that. 170 00:07:25,320 --> 00:07:27,040 Speaker 1: On the other hand, if my water bills shot up 171 00:07:27,040 --> 00:07:29,440 Speaker 1: and I think my toilet is leaking water, well, it's 172 00:07:29,520 --> 00:07:31,960 Speaker 1: really easy to go and buy a new toilet flapper 173 00:07:32,040 --> 00:07:33,720 Speaker 1: valve and install it. There's no need to call a 174 00:07:33,760 --> 00:07:36,720 Speaker 1: plumber for this basic thing that can go wrong. And so, yeah, 175 00:07:36,720 --> 00:07:38,880 Speaker 1: where do financial advisors fit into that picture of d 176 00:07:39,000 --> 00:07:42,200 Speaker 1: I Y versus hiring the expert. We're gonna cover that today. Yeah, man, 177 00:07:42,200 --> 00:07:44,640 Speaker 1: that's the biggest problem, right, like knowing when to to 178 00:07:44,760 --> 00:07:46,640 Speaker 1: call in the pros or when to do it yourself. Like, 179 00:07:46,680 --> 00:07:49,520 Speaker 1: there are a lot of aspects of our personal finances 180 00:07:49,720 --> 00:07:53,360 Speaker 1: that don't require professional help. You don't need a financial advisor. 181 00:07:53,560 --> 00:07:55,360 Speaker 1: You don't need a professional to tell you that you 182 00:07:55,360 --> 00:07:57,200 Speaker 1: need to start paying down your debts and to go 183 00:07:57,240 --> 00:07:58,840 Speaker 1: ahead and make sure that you get that employer match 184 00:07:58,880 --> 00:08:01,640 Speaker 1: in your four O one K. That's that slam Dunkey's decision, right, Like, 185 00:08:01,640 --> 00:08:03,760 Speaker 1: that's something that you can do yourself. But there are 186 00:08:03,960 --> 00:08:07,760 Speaker 1: some more complicated issues that might arise when it would 187 00:08:07,960 --> 00:08:09,800 Speaker 1: make sense to hire pro and and like you said, 188 00:08:09,880 --> 00:08:12,360 Speaker 1: all that's what we're going to dive into today. Yeah, 189 00:08:12,600 --> 00:08:14,560 Speaker 1: first man, I think we kind of need to discuss 190 00:08:14,640 --> 00:08:17,640 Speaker 1: what a financial advisor does because knowing what they do 191 00:08:18,080 --> 00:08:20,600 Speaker 1: can help us decide what direction we need to go in. 192 00:08:20,880 --> 00:08:23,440 Speaker 1: And and first off, the term financial advisors kind of 193 00:08:23,440 --> 00:08:25,960 Speaker 1: this catch all term. A lot of people call themselves 194 00:08:26,080 --> 00:08:29,480 Speaker 1: a financial advisor. And also the credentials and services that 195 00:08:29,480 --> 00:08:32,559 Speaker 1: a financial advisor performs for a client. They vary from 196 00:08:32,559 --> 00:08:35,280 Speaker 1: firm to firm and from advisor to advisor. And at 197 00:08:35,280 --> 00:08:37,800 Speaker 1: the same time, the job of a financial advisor has 198 00:08:37,880 --> 00:08:40,679 Speaker 1: changed in recent years. The industry is evolving in what 199 00:08:40,760 --> 00:08:43,440 Speaker 1: individuals require when it comes to money help and advice 200 00:08:43,520 --> 00:08:46,280 Speaker 1: is different than it was twenty years ago, and advisors 201 00:08:46,280 --> 00:08:50,240 Speaker 1: are responding accordingly. In particular, younger advisors are are tending 202 00:08:50,240 --> 00:08:53,760 Speaker 1: to meet these market demands for a comprehensive service as 203 00:08:53,800 --> 00:08:56,600 Speaker 1: opposed to just investing advice. Some of these advisors are 204 00:08:56,640 --> 00:09:00,439 Speaker 1: even offering beer advice, like beer recommendations. Those guys, come on, 205 00:09:01,720 --> 00:09:03,280 Speaker 1: go ahead, and for the record, it's going to go 206 00:09:03,320 --> 00:09:05,360 Speaker 1: out there in state that we are not financial advisors, 207 00:09:05,480 --> 00:09:07,040 Speaker 1: Like this is something you and I enjoy, we have 208 00:09:07,080 --> 00:09:08,960 Speaker 1: a passion for it, but yeah, we are not you know, 209 00:09:08,960 --> 00:09:11,079 Speaker 1: professional financial advisors, So we don't really have skin in 210 00:09:11,120 --> 00:09:13,320 Speaker 1: this game at all. Yeah, although, like I said, almost 211 00:09:13,320 --> 00:09:15,920 Speaker 1: anybody can call themselves financial advisors is to catch all 212 00:09:16,040 --> 00:09:19,200 Speaker 1: term and so we could say that we were, but 213 00:09:19,240 --> 00:09:22,240 Speaker 1: we don't have any technical training exactly that has led 214 00:09:22,320 --> 00:09:23,840 Speaker 1: us to to be able to call ourselves that. So 215 00:09:23,920 --> 00:09:25,560 Speaker 1: and so for c OA reasons, I like to just 216 00:09:25,559 --> 00:09:28,959 Speaker 1: stay away from that completely. Yeah, completely. And advisor is 217 00:09:29,000 --> 00:09:31,960 Speaker 1: typically they used to specialize in discussing like those long 218 00:09:32,080 --> 00:09:33,960 Speaker 1: term goals. Like right, I'm thinking of like the old 219 00:09:34,000 --> 00:09:36,320 Speaker 1: kind of traditional advisors. You know, you kind of go 220 00:09:36,360 --> 00:09:38,120 Speaker 1: into the office, you sit down at their desk, and 221 00:09:38,080 --> 00:09:40,080 Speaker 1: they they're like, let's talk about your money, like old 222 00:09:40,120 --> 00:09:42,839 Speaker 1: giant oak desk. Yeah, that kind of approach. But you 223 00:09:42,880 --> 00:09:45,200 Speaker 1: know that's where they would manage your investments and also 224 00:09:45,280 --> 00:09:47,840 Speaker 1: help you to think through some different life insurance necessities. 225 00:09:47,960 --> 00:09:49,840 Speaker 1: But now, like you said, you like they offer such 226 00:09:50,080 --> 00:09:52,760 Speaker 1: a wide gamut of services. They can offer budgeting help, 227 00:09:52,800 --> 00:09:55,760 Speaker 1: they can help create some debt payoff plans, offer college 228 00:09:55,760 --> 00:09:59,959 Speaker 1: admissions advice, someone even proof read resumes. As individual investor 229 00:10:00,120 --> 00:10:03,959 Speaker 1: has gotten easier in the costs have plummeted, advisors are 230 00:10:04,160 --> 00:10:07,840 Speaker 1: offering more services to justify the value, to justify the 231 00:10:07,880 --> 00:10:10,280 Speaker 1: fee that they charge, and the value is tied up 232 00:10:10,360 --> 00:10:13,679 Speaker 1: more in the advice about tricky money decisions, and it's 233 00:10:13,720 --> 00:10:16,360 Speaker 1: not just about trying to beat the stock market average. 234 00:10:16,600 --> 00:10:18,559 Speaker 1: So is a financial advisor worth it? That's really the 235 00:10:18,640 --> 00:10:20,400 Speaker 1: question that a lot of people have on their minds, 236 00:10:20,600 --> 00:10:22,560 Speaker 1: and we're gonna get into some specifics to help people 237 00:10:22,559 --> 00:10:24,120 Speaker 1: figure that out. But but part of what makes this 238 00:10:24,240 --> 00:10:27,600 Speaker 1: decision to hire a financial advisor or not so difficult 239 00:10:27,840 --> 00:10:30,480 Speaker 1: is that it's hard to measure the value that they 240 00:10:30,520 --> 00:10:33,360 Speaker 1: can potentially bring to you with these services that they offer. 241 00:10:33,640 --> 00:10:36,320 Speaker 1: How do you quantify budget help and college admissions advice 242 00:10:36,400 --> 00:10:38,320 Speaker 1: over what you can do on your own without any help. 243 00:10:38,520 --> 00:10:41,360 Speaker 1: So to answer to that question, some researchers at morning 244 00:10:41,400 --> 00:10:43,960 Speaker 1: Star did a study that measured the value that financial 245 00:10:43,960 --> 00:10:46,040 Speaker 1: advisors can provide, and Matt I think there were like 246 00:10:46,120 --> 00:10:49,079 Speaker 1: kind of three studies that did something similarly. Vanguard did 247 00:10:49,120 --> 00:10:51,840 Speaker 1: another one, and basically, these studies have found that a 248 00:10:51,840 --> 00:10:56,320 Speaker 1: good planner can increase retirement income well over making even 249 00:10:56,360 --> 00:10:58,960 Speaker 1: a one percent annual fee well worth the cost. But 250 00:10:59,040 --> 00:11:01,200 Speaker 1: the methodology for some of these studies, Matt, when when 251 00:11:01,240 --> 00:11:03,680 Speaker 1: you dig into it. There's some off putting stuff in 252 00:11:03,720 --> 00:11:08,080 Speaker 1: the methodology. They're assuming sometimes that individual investors are invested 253 00:11:08,120 --> 00:11:10,760 Speaker 1: in high cost funds and that an advisor is going 254 00:11:10,800 --> 00:11:13,480 Speaker 1: to help you get into lower cost funds. But you 255 00:11:13,480 --> 00:11:14,760 Speaker 1: know what, you might have been listening to the How 256 00:11:14,800 --> 00:11:17,000 Speaker 1: the Money podcast and you're already investing in low cost funds, 257 00:11:17,040 --> 00:11:19,360 Speaker 1: So that's not a benefit that a financial advisor is 258 00:11:19,400 --> 00:11:22,000 Speaker 1: going to bring you. But the problem continues because a 259 00:11:22,080 --> 00:11:25,400 Speaker 1: lot of the financial planning services they measured aren't necessarily 260 00:11:25,440 --> 00:11:27,920 Speaker 1: for younger folks and individuals in the wealth growing phase 261 00:11:27,960 --> 00:11:29,839 Speaker 1: of investing, and so it's not just a yes or 262 00:11:29,880 --> 00:11:32,119 Speaker 1: no answer. You have to dive into your own particulars 263 00:11:32,160 --> 00:11:34,080 Speaker 1: as an investor as well as the specifics that a 264 00:11:34,160 --> 00:11:36,640 Speaker 1: financial advisor can bring the table in order to help 265 00:11:36,679 --> 00:11:39,320 Speaker 1: you in your financial situation. Yeah. Man, that's right. So 266 00:11:39,360 --> 00:11:41,360 Speaker 1: that's what we're going to cover today, the things that 267 00:11:41,400 --> 00:11:43,800 Speaker 1: you need to know about advisors as well as what 268 00:11:43,840 --> 00:11:47,800 Speaker 1: you need to consider about your specific situation, and hopefully 269 00:11:47,840 --> 00:11:50,080 Speaker 1: by the end of this episode you should know exactly 270 00:11:50,120 --> 00:11:52,440 Speaker 1: what your next step should be. So basically, we've got 271 00:11:52,480 --> 00:11:54,640 Speaker 1: two prongs here. We've got you as the investor, and 272 00:11:54,679 --> 00:11:57,320 Speaker 1: we've got the advisor, and we're gonna talk about some 273 00:11:57,400 --> 00:11:59,280 Speaker 1: of the things that you should be looking for in 274 00:11:59,360 --> 00:12:01,760 Speaker 1: a financial visor. But first let's take a quick break, 275 00:12:11,280 --> 00:12:12,840 Speaker 1: all right. That we're gonna dig to the heart of 276 00:12:12,840 --> 00:12:15,880 Speaker 1: this question as to whether people should hire a financial 277 00:12:15,880 --> 00:12:17,520 Speaker 1: advisor or not, and then how to find a good 278 00:12:17,520 --> 00:12:20,080 Speaker 1: advisor if if it's appropriate for them a little bit 279 00:12:20,120 --> 00:12:22,280 Speaker 1: later on, but first let's get to the characteristics of 280 00:12:22,280 --> 00:12:24,400 Speaker 1: a good advisor. If you do find yourself wanting some 281 00:12:24,400 --> 00:12:26,280 Speaker 1: expert help, what do you need to look for when 282 00:12:26,280 --> 00:12:28,840 Speaker 1: you're shopping for the services that a financial advisor offers, 283 00:12:29,120 --> 00:12:31,079 Speaker 1: And so, Matt, let's break it down. A good financial 284 00:12:31,080 --> 00:12:34,880 Speaker 1: advisor will first and foremost be a fiduciary, and they 285 00:12:34,880 --> 00:12:37,360 Speaker 1: will be willing to provide a written guarantee of that. 286 00:12:37,720 --> 00:12:40,440 Speaker 1: So if an advisor is a fiduciary, basically it's a 287 00:12:40,440 --> 00:12:43,280 Speaker 1: fancy term that means that they prioritize your best interest 288 00:12:43,320 --> 00:12:46,040 Speaker 1: over their own, and it eliminates the potential for a 289 00:12:46,080 --> 00:12:48,760 Speaker 1: conflict of interest. I think if people take nothing else 290 00:12:48,800 --> 00:12:51,199 Speaker 1: away from this, if they do shop for a financial advisor, 291 00:12:51,600 --> 00:12:53,960 Speaker 1: the biggest thing they need to prioritize is that that 292 00:12:54,080 --> 00:12:56,839 Speaker 1: financial advisor is a fiduciary. That's the number one thing 293 00:12:56,920 --> 00:12:58,439 Speaker 1: you have to make sure of before you sign on 294 00:12:58,480 --> 00:13:01,440 Speaker 1: the dotted line to have them manage your money. Oh, totally, 295 00:13:01,480 --> 00:13:04,080 Speaker 1: man and so like an example of you know, not 296 00:13:04,120 --> 00:13:06,640 Speaker 1: being a fiduciary, they can tell you more expensive insurance 297 00:13:06,760 --> 00:13:09,920 Speaker 1: or investments because they get a better cut on those products. 298 00:13:09,960 --> 00:13:13,040 Speaker 1: That's a clear conflict of interest. You know, after this 299 00:13:13,120 --> 00:13:17,120 Speaker 1: federal rule was not past, some states are actually forcing 300 00:13:17,280 --> 00:13:19,880 Speaker 1: the issues, like Massachusetts, which is by the way, that's 301 00:13:19,880 --> 00:13:22,720 Speaker 1: where Treehouse is from and where Caitlin and Brian live. 302 00:13:22,840 --> 00:13:26,400 Speaker 1: So Massachusetts has a lot going right for them. Yeah, right, 303 00:13:27,080 --> 00:13:30,600 Speaker 1: But until this rule is widely implemented, then this is 304 00:13:30,640 --> 00:13:32,400 Speaker 1: the first question that you need to ask of your 305 00:13:32,440 --> 00:13:35,720 Speaker 1: current um or a potential financial advisor. Yeah, for sure, 306 00:13:35,880 --> 00:13:38,880 Speaker 1: and a good financial advisor in addition to being a fiduciary, 307 00:13:39,040 --> 00:13:41,439 Speaker 1: they'll also be easy to communicate with. That that's why 308 00:13:41,440 --> 00:13:44,720 Speaker 1: you want to interview a few advisors before deciding on 309 00:13:44,760 --> 00:13:46,360 Speaker 1: the one that you want to go with. We don't 310 00:13:46,400 --> 00:13:49,559 Speaker 1: necessarily click with everyone, Matt and I would suggest prioritizing 311 00:13:49,640 --> 00:13:52,120 Speaker 1: finding an advisor that you can have a good conversation with. 312 00:13:52,360 --> 00:13:54,160 Speaker 1: You don't want to avoid calling them because you hate 313 00:13:54,160 --> 00:13:56,720 Speaker 1: their communication style. Are they easy to reach, do they 314 00:13:56,760 --> 00:13:59,200 Speaker 1: respond in a timely manner? And are they willing to 315 00:13:59,320 --> 00:14:03,760 Speaker 1: use your methods of communication? Matt, I prefer email, Uh, 316 00:14:03,960 --> 00:14:07,360 Speaker 1: maybe text message on occasion. But if I was working 317 00:14:07,360 --> 00:14:09,240 Speaker 1: with an advisor that wanted to call me on the 318 00:14:09,240 --> 00:14:10,920 Speaker 1: phone all the time even though I was trying to 319 00:14:10,960 --> 00:14:14,160 Speaker 1: email them, I'd be so annoyed because I just don't 320 00:14:14,200 --> 00:14:16,880 Speaker 1: want to talk like that. Like I'm a classic millennial 321 00:14:16,880 --> 00:14:19,480 Speaker 1: who avoids using the phone for its actual purpose, which 322 00:14:19,520 --> 00:14:21,360 Speaker 1: is to talk to someone. When your phone rings, do 323 00:14:21,400 --> 00:14:23,480 Speaker 1: you like freak out and like hide under the couch? Yeah, 324 00:14:23,480 --> 00:14:26,280 Speaker 1: exactly what's the emergency? Do I need to respond right now? No, 325 00:14:26,440 --> 00:14:29,280 Speaker 1: I'm totally with you, Like, focus on the channels of communication. 326 00:14:29,320 --> 00:14:31,240 Speaker 1: That makes sense, right, Like, don't hit me up on 327 00:14:31,400 --> 00:14:34,440 Speaker 1: Slack because I'm not on there, but send me an 328 00:14:34,440 --> 00:14:36,760 Speaker 1: email and like, yeah, if it's an emergency, you can 329 00:14:36,880 --> 00:14:39,440 Speaker 1: call or text, but there's rarely an emergency when it 330 00:14:39,480 --> 00:14:43,000 Speaker 1: comes to financial advising. Also, do not communicate via smoke signal, 331 00:14:43,040 --> 00:14:44,960 Speaker 1: so don't try that either. Yeah, I'm not looking at 332 00:14:44,960 --> 00:14:47,160 Speaker 1: this guy waiting to see what you got to say, uh, 333 00:14:47,160 --> 00:14:49,920 Speaker 1: and your your financial advisor should also be pretty nosy. 334 00:14:49,960 --> 00:14:52,840 Speaker 1: Are they digging in with lots of questions? If not, 335 00:14:53,280 --> 00:14:56,040 Speaker 1: you might want to find another advisor to to be 336 00:14:56,080 --> 00:14:58,520 Speaker 1: able to handle your money. Well, they'll need to know 337 00:14:58,640 --> 00:15:00,920 Speaker 1: a lot about you and your pacific goals, you know, 338 00:15:00,960 --> 00:15:03,120 Speaker 1: going back to being a fiduciary, Like, it's hard to 339 00:15:03,160 --> 00:15:05,360 Speaker 1: have your best interests in mind if they don't even 340 00:15:05,400 --> 00:15:07,840 Speaker 1: know what your best interests are. Another thing that you're 341 00:15:07,880 --> 00:15:10,360 Speaker 1: gonna want to prioritize when looking for a financial advisor 342 00:15:10,480 --> 00:15:13,520 Speaker 1: is are they willing to teach and educate you? Because 343 00:15:13,560 --> 00:15:16,160 Speaker 1: if they want you to leave things to the pros 344 00:15:16,440 --> 00:15:19,040 Speaker 1: and they're not willing to explain their reasoning or methodology, 345 00:15:19,080 --> 00:15:21,360 Speaker 1: I think that's a big red flag, Matt, because part 346 00:15:21,400 --> 00:15:24,200 Speaker 1: of the benefit of having a financial advisor should be 347 00:15:24,240 --> 00:15:27,600 Speaker 1: these open ended conversations where you're also learning more about 348 00:15:27,840 --> 00:15:30,400 Speaker 1: how the markets work and how they're investing your money. 349 00:15:30,600 --> 00:15:33,000 Speaker 1: You want to more fully understand your plan. You don't 350 00:15:33,040 --> 00:15:35,520 Speaker 1: want them just to kind of handle it right. You 351 00:15:35,560 --> 00:15:38,560 Speaker 1: want to be involved and have a say in the process. Yeah, 352 00:15:38,560 --> 00:15:40,280 Speaker 1: different folks are going to be more prone to want 353 00:15:40,280 --> 00:15:42,360 Speaker 1: to learn and to not learn, But you don't want 354 00:15:42,360 --> 00:15:44,120 Speaker 1: to just have like a money guy or a money 355 00:15:44,120 --> 00:15:45,640 Speaker 1: girl who just like takes care of all your money 356 00:15:45,680 --> 00:15:48,040 Speaker 1: for you. It's important to learn. This is really important 357 00:15:48,040 --> 00:15:50,520 Speaker 1: for someone like me who just really loves to understand 358 00:15:50,520 --> 00:15:52,800 Speaker 1: the why behind things. Like that's just a question I asked, 359 00:15:52,800 --> 00:15:54,920 Speaker 1: I want to know how it works. Yeah, man, I've 360 00:15:54,960 --> 00:15:57,800 Speaker 1: just read too many stories about oftentimes, you know, uber 361 00:15:57,880 --> 00:16:01,400 Speaker 1: wealthy basketball players, NFL players, and the quote unquote financial 362 00:16:01,400 --> 00:16:03,560 Speaker 1: advisor runs off with a lot of their money. And 363 00:16:03,560 --> 00:16:05,360 Speaker 1: if it's more of a two way conversation about where 364 00:16:05,360 --> 00:16:07,080 Speaker 1: your money is going, that's just kind of a harder 365 00:16:07,200 --> 00:16:09,920 Speaker 1: relationship to get in. Exactly. Well, there's more accountability there 366 00:16:09,920 --> 00:16:11,600 Speaker 1: when you're talking about it and where they're when they're 367 00:16:11,600 --> 00:16:15,160 Speaker 1: teaching you, because you yourself are providing that accountability. Um. 368 00:16:15,480 --> 00:16:17,160 Speaker 1: I think one of the one of the biggest benefits 369 00:16:17,200 --> 00:16:20,520 Speaker 1: that a financial advisory can provide is behavior modification and 370 00:16:20,560 --> 00:16:23,160 Speaker 1: coaching as well. Like, if you make all of your 371 00:16:23,200 --> 00:16:26,320 Speaker 1: money decisions so by yourself, it could be easy to 372 00:16:26,360 --> 00:16:29,560 Speaker 1: sell assets in a moment of panic. A good financial 373 00:16:29,560 --> 00:16:32,800 Speaker 1: advisor will help you avoid becoming your own worst enemy 374 00:16:33,080 --> 00:16:35,480 Speaker 1: and will become a coach to push you towards saving 375 00:16:35,520 --> 00:16:39,400 Speaker 1: more and making even better money decisions in the future. Yeah. Man. 376 00:16:39,440 --> 00:16:41,720 Speaker 1: A couple of weeks ago, we talked about the behavioral 377 00:16:41,920 --> 00:16:45,280 Speaker 1: money decisions that wreck us and a financial advisor can 378 00:16:45,320 --> 00:16:47,960 Speaker 1: walk alongside you and kind of help you avoid making 379 00:16:48,000 --> 00:16:50,360 Speaker 1: some of those treacherous mistakes that you might make with 380 00:16:50,360 --> 00:16:52,520 Speaker 1: with your investing or your savings. And I think another 381 00:16:52,560 --> 00:16:55,520 Speaker 1: thing to mention, by the way, is the bogus credentials 382 00:16:55,520 --> 00:16:57,200 Speaker 1: that are out there for financial advisors. I mean, we 383 00:16:57,200 --> 00:16:59,080 Speaker 1: we talked about that for a minute at the beginning 384 00:16:59,080 --> 00:17:01,640 Speaker 1: of the show. How almost anybody can call themselves a 385 00:17:01,680 --> 00:17:04,679 Speaker 1: financial advisor. There's not necessarily anything technical that needs to 386 00:17:04,680 --> 00:17:06,639 Speaker 1: happen in order for you to do that. I'm a 387 00:17:06,640 --> 00:17:09,359 Speaker 1: financial planner right right exactly? Or is that a money 388 00:17:09,359 --> 00:17:10,760 Speaker 1: coach or whatever it is. I mean, there's all sorts 389 00:17:10,760 --> 00:17:13,120 Speaker 1: of different terms that people are using for how they 390 00:17:13,119 --> 00:17:15,120 Speaker 1: help you with money now, and so to tell people 391 00:17:15,160 --> 00:17:16,959 Speaker 1: out the thing that you want to make sure of 392 00:17:17,320 --> 00:17:20,560 Speaker 1: when you are interviewing financial advisors is that the person 393 00:17:20,600 --> 00:17:23,720 Speaker 1: that you're hiring is a CFP. That's the credential you 394 00:17:23,800 --> 00:17:26,439 Speaker 1: most want your financial advisor to have. It's essentially the 395 00:17:26,440 --> 00:17:30,159 Speaker 1: most rigorous credential and it requires years of schooling, a 396 00:17:30,240 --> 00:17:32,440 Speaker 1: grueling test, and then years in the field to even 397 00:17:32,440 --> 00:17:34,960 Speaker 1: achieve that status. So you know that a person that 398 00:17:35,080 --> 00:17:37,800 Speaker 1: is a Certified Financial Planner a CFP is going to 399 00:17:37,880 --> 00:17:40,199 Speaker 1: have the time spent in the field and also the 400 00:17:40,320 --> 00:17:43,040 Speaker 1: education necessary to be able to guide you appropriately in 401 00:17:43,080 --> 00:17:46,080 Speaker 1: your money decisions. Another aspect that is important to know 402 00:17:46,160 --> 00:17:49,080 Speaker 1: about a financial advisor that you're considering is that like 403 00:17:49,119 --> 00:17:51,080 Speaker 1: how they're paid, Essentially, like you want to make sure 404 00:17:51,320 --> 00:17:54,119 Speaker 1: that they have a transparent fee structure and that you 405 00:17:54,200 --> 00:17:58,040 Speaker 1: understand how they will be compensated. There are typically two 406 00:17:58,119 --> 00:18:00,840 Speaker 1: ways that a planner makes a living um. One way 407 00:18:00,920 --> 00:18:02,920 Speaker 1: is that they charge a fee, right like That fee 408 00:18:02,960 --> 00:18:05,840 Speaker 1: can either be a flat fee for their services, an 409 00:18:05,920 --> 00:18:08,280 Speaker 1: hourly rates based on how long or how often you 410 00:18:08,320 --> 00:18:10,560 Speaker 1: meet with them, or their fee is based on a 411 00:18:10,680 --> 00:18:13,960 Speaker 1: percentage of assets managed. And all three of these examples 412 00:18:13,960 --> 00:18:17,640 Speaker 1: of these are all called fee only advisors. And obviously 413 00:18:17,640 --> 00:18:20,600 Speaker 1: there are different ways that these fee only advisors get paid, 414 00:18:20,640 --> 00:18:22,960 Speaker 1: but that's our favorite kind of advisor for people to 415 00:18:23,040 --> 00:18:26,440 Speaker 1: generally speaking, fee only advisors are good, yeah, for sure. 416 00:18:26,600 --> 00:18:28,919 Speaker 1: The other way that advisors get paid is by commissions 417 00:18:28,920 --> 00:18:31,560 Speaker 1: on the products they sell. It's harder to see how 418 00:18:31,560 --> 00:18:34,560 Speaker 1: they get paid in this model, right, and different annuity 419 00:18:34,600 --> 00:18:37,760 Speaker 1: and whole life insurance products often have higher commissions and 420 00:18:37,800 --> 00:18:40,959 Speaker 1: that's often why they're pitched by these financial advisors. These 421 00:18:40,960 --> 00:18:44,080 Speaker 1: folks are called commission based brokers, but even fee based 422 00:18:44,119 --> 00:18:46,439 Speaker 1: advisors can make money depending on the products they sell you. 423 00:18:46,640 --> 00:18:49,159 Speaker 1: So it's always important to ask do you make commissions 424 00:18:49,160 --> 00:18:50,840 Speaker 1: on any of the products you might sell me? And 425 00:18:50,880 --> 00:18:53,800 Speaker 1: the response you get from a potential financial advisor is 426 00:18:53,840 --> 00:18:55,440 Speaker 1: going to be telling. And am at a fine point 427 00:18:55,440 --> 00:18:56,919 Speaker 1: that I think we have to draw. Here is a 428 00:18:56,960 --> 00:18:59,760 Speaker 1: fee based financial planner versus a fee only financial planner 429 00:19:00,000 --> 00:19:02,960 Speaker 1: based versus only Just in case folks didn't hear it, 430 00:19:03,000 --> 00:19:04,800 Speaker 1: I just wanted to say it again. Yes, So the 431 00:19:04,840 --> 00:19:08,480 Speaker 1: fee only advisor essentially is one that is going to 432 00:19:08,520 --> 00:19:10,159 Speaker 1: get a flat fee from you in one of the 433 00:19:10,200 --> 00:19:12,880 Speaker 1: three ways that you mentioned. A fee based advisor might 434 00:19:12,920 --> 00:19:15,560 Speaker 1: have a similar arrangement with you, but if their fee based, 435 00:19:15,840 --> 00:19:17,520 Speaker 1: that means that they have the option to make money 436 00:19:17,560 --> 00:19:20,040 Speaker 1: from you in other ways, to like selling you high 437 00:19:20,040 --> 00:19:23,560 Speaker 1: commission products. So a fee only advisor is the kind 438 00:19:23,560 --> 00:19:25,760 Speaker 1: of advisor you want to look for because the payment 439 00:19:25,880 --> 00:19:27,840 Speaker 1: arrangement that you have with them is just much more 440 00:19:27,880 --> 00:19:31,080 Speaker 1: easier to understand. Yeah, man, that's a great question to 441 00:19:31,119 --> 00:19:34,200 Speaker 1: ask a potential financial advisor. And another thing to ask 442 00:19:34,240 --> 00:19:35,640 Speaker 1: as well that I think a lot of folks might 443 00:19:35,720 --> 00:19:38,639 Speaker 1: be hesitant to ask, is like just say, hey, like 444 00:19:38,680 --> 00:19:40,920 Speaker 1: other ways for me to work with you where it 445 00:19:40,960 --> 00:19:43,800 Speaker 1: could just cost less money? Do you offer any discounts? 446 00:19:44,040 --> 00:19:46,040 Speaker 1: And an even bigger question is if you were to 447 00:19:46,080 --> 00:19:47,600 Speaker 1: ask that person like, do you do you think I 448 00:19:47,640 --> 00:19:50,280 Speaker 1: even need your services? Right? If you were to ask 449 00:19:50,280 --> 00:19:51,960 Speaker 1: that question and they were to get back to you 450 00:19:51,960 --> 00:19:54,320 Speaker 1: and say, to be honest with you, I don't think so. 451 00:19:54,840 --> 00:19:57,879 Speaker 1: How great is that they are turning down work, you know, 452 00:19:57,960 --> 00:20:00,080 Speaker 1: like they're turning down the ability for them to a 453 00:20:00,240 --> 00:20:04,000 Speaker 1: living and earn money because they know that this isn't 454 00:20:04,040 --> 00:20:06,239 Speaker 1: what they would tell a friend to do, right man. 455 00:20:06,280 --> 00:20:07,760 Speaker 1: I know, for me, if I was in a situation 456 00:20:07,800 --> 00:20:09,640 Speaker 1: like that, and and that's the advice that someone were 457 00:20:09,680 --> 00:20:11,560 Speaker 1: to give me, like they've got a customer for life 458 00:20:12,000 --> 00:20:14,680 Speaker 1: essentially right down the road when when it does come 459 00:20:14,720 --> 00:20:17,439 Speaker 1: time for me to to hire a financial advisor, or 460 00:20:17,520 --> 00:20:19,240 Speaker 1: if I have a friend who's a high earner, or 461 00:20:19,240 --> 00:20:22,080 Speaker 1: they're in a tricky situation where they need some serious advice. 462 00:20:22,359 --> 00:20:24,200 Speaker 1: I would totally tell them to go to that person, 463 00:20:24,440 --> 00:20:26,680 Speaker 1: not based on personal experience, but like the interactions we've 464 00:20:26,680 --> 00:20:28,880 Speaker 1: had so far, you know, have been pretty good. Yeah, 465 00:20:28,880 --> 00:20:31,280 Speaker 1: that sort of honesty goes a long way. Seriously, And 466 00:20:31,320 --> 00:20:33,280 Speaker 1: so yeah, if a financial advisor says, you know what, 467 00:20:33,359 --> 00:20:34,840 Speaker 1: you're not quite there yet, come back to me in 468 00:20:34,840 --> 00:20:37,080 Speaker 1: a few years when you're earning more, when you have 469 00:20:37,160 --> 00:20:40,199 Speaker 1: more complex financial decisions at hand, then I think I 470 00:20:40,200 --> 00:20:42,040 Speaker 1: can be a big help. But right now, do the 471 00:20:42,040 --> 00:20:44,560 Speaker 1: basic things and just start investing more of your money 472 00:20:44,640 --> 00:20:46,640 Speaker 1: in that work for a one k but really there's 473 00:20:46,680 --> 00:20:48,640 Speaker 1: not a whole lot for me to contribute at this point, 474 00:20:48,680 --> 00:20:50,240 Speaker 1: so you know what, keep doing it solo for the 475 00:20:50,240 --> 00:20:51,920 Speaker 1: time being. Or maybe that's the way you can try 476 00:20:51,920 --> 00:20:53,560 Speaker 1: to get a discount to be like, hey, man, if 477 00:20:53,600 --> 00:20:55,960 Speaker 1: you cut me a break now, you know, like down 478 00:20:55,960 --> 00:20:58,159 Speaker 1: the road, I'll be making a lot more money and 479 00:20:58,200 --> 00:21:00,240 Speaker 1: I want to make you rich. I'll stick you for 480 00:21:00,280 --> 00:21:05,840 Speaker 1: the long haul. So I mean, yeah, I'm joking, but seriously, like, 481 00:21:05,880 --> 00:21:08,399 Speaker 1: I think it's worth just having that conversation. Don't be 482 00:21:08,440 --> 00:21:11,439 Speaker 1: afraid to talk about money, not just your money, but 483 00:21:11,520 --> 00:21:13,200 Speaker 1: the fees that they would charge as well. It's I 484 00:21:13,240 --> 00:21:15,640 Speaker 1: think it's a conversation that's worth having. Yeah, man, I agree, 485 00:21:15,640 --> 00:21:18,080 Speaker 1: it's important as those questions up front before you enter 486 00:21:18,080 --> 00:21:20,400 Speaker 1: into this long term relationship that's gonna have a major 487 00:21:20,440 --> 00:21:24,040 Speaker 1: impact on so much of what happens with your money, right, 488 00:21:24,119 --> 00:21:26,080 Speaker 1: and so let's dig into the heart of this. Let's 489 00:21:26,080 --> 00:21:29,320 Speaker 1: get into when people should hire a financial advisor, and 490 00:21:29,359 --> 00:21:31,480 Speaker 1: we'll get into the things you need to consider before 491 00:21:31,560 --> 00:21:43,399 Speaker 1: pulling the trigger right after the break. Al Right, best buddy, 492 00:21:43,480 --> 00:21:46,480 Speaker 1: we're back from the break. We're talking about why not 493 00:21:46,520 --> 00:21:49,080 Speaker 1: all financial advisors are bad, and let's go ahead and 494 00:21:49,080 --> 00:21:52,200 Speaker 1: answer the question of when you should hire a financial 495 00:21:52,240 --> 00:21:55,440 Speaker 1: advisor specifically, let's cover some of the behavioral reasons. One 496 00:21:55,480 --> 00:21:58,760 Speaker 1: of the best arguments for having an advisor has nothing 497 00:21:58,800 --> 00:22:01,800 Speaker 1: to do with advanced knowledge of the markets and instead 498 00:22:01,920 --> 00:22:04,600 Speaker 1: focuses purely on behavior. We kind of touched on this 499 00:22:04,680 --> 00:22:07,320 Speaker 1: before the break. But if you know that your own 500 00:22:07,400 --> 00:22:11,120 Speaker 1: tendencies towards making emotional moves with your investments can cost 501 00:22:11,160 --> 00:22:13,800 Speaker 1: you a lot and potential returns over the years, well, 502 00:22:13,840 --> 00:22:16,760 Speaker 1: then a financial advisor can help you to stay the course, 503 00:22:16,800 --> 00:22:18,600 Speaker 1: you know, Like I said, like we talked about the 504 00:22:18,640 --> 00:22:20,800 Speaker 1: aspect of a good financial advisor and how they can 505 00:22:20,800 --> 00:22:22,840 Speaker 1: be a coach. If you have someone there in your 506 00:22:22,840 --> 00:22:24,719 Speaker 1: corner that is, you know, going to keep you from 507 00:22:24,760 --> 00:22:27,320 Speaker 1: clicking cell, you know, as the market dips because you're 508 00:22:27,320 --> 00:22:29,480 Speaker 1: freaking out. Well, they're gonna be well worth the money 509 00:22:29,480 --> 00:22:31,719 Speaker 1: that you pay. Yeah, man, I completely agree. If you 510 00:22:31,760 --> 00:22:34,919 Speaker 1: know that you're susceptible to making rash money decisions, and 511 00:22:34,920 --> 00:22:38,120 Speaker 1: a financial advisor can really help you focus and stay 512 00:22:38,160 --> 00:22:41,760 Speaker 1: the course, that's huge. Also, if you just aren't interested 513 00:22:41,800 --> 00:22:44,640 Speaker 1: in investing or finance really in general at all, i'd 514 00:22:44,640 --> 00:22:46,960 Speaker 1: be surprised if you're listening to this podcast and that's 515 00:22:47,000 --> 00:22:48,800 Speaker 1: the case. But if you are one of those people, 516 00:22:49,200 --> 00:22:50,920 Speaker 1: or if you know one of those people as well, right, 517 00:22:51,160 --> 00:22:52,800 Speaker 1: yeah for sure. But but for those people who know 518 00:22:52,840 --> 00:22:54,320 Speaker 1: they need to save for the future, but they just 519 00:22:54,320 --> 00:22:56,520 Speaker 1: can't bring themselves to do it because their interest level 520 00:22:56,560 --> 00:22:58,919 Speaker 1: just isn't piqued by this stuff and they have the 521 00:22:58,960 --> 00:23:01,640 Speaker 1: money to do so, I think a financial advisor can 522 00:23:01,640 --> 00:23:04,080 Speaker 1: make a meaningful difference and be the nudge that those 523 00:23:04,080 --> 00:23:06,600 Speaker 1: people need to get started. If you see the necessity 524 00:23:06,600 --> 00:23:08,879 Speaker 1: behind it. But you're just unwilling to take action or 525 00:23:09,000 --> 00:23:11,280 Speaker 1: learn the basic things in order to get started. A 526 00:23:11,280 --> 00:23:13,920 Speaker 1: financial advisor can be the impetus to actually help you 527 00:23:13,960 --> 00:23:16,080 Speaker 1: start saving for your future when you otherwise wouldn't. It's 528 00:23:16,080 --> 00:23:17,879 Speaker 1: sort of like having a personal trainer. It's like if 529 00:23:17,920 --> 00:23:19,200 Speaker 1: you know you're not going to go to the gym 530 00:23:19,280 --> 00:23:22,560 Speaker 1: because I'm lazy, Like like, I'm not gonna get the 531 00:23:22,600 --> 00:23:24,240 Speaker 1: gym because I just I would go to the gym. 532 00:23:24,280 --> 00:23:26,520 Speaker 1: But if I hired a personal trainer, man, there's there's 533 00:23:26,640 --> 00:23:29,920 Speaker 1: a level of accountability there. Anytime you can introduce some accountability, 534 00:23:30,080 --> 00:23:32,080 Speaker 1: regardless of what you want to call them. It just 535 00:23:32,119 --> 00:23:35,240 Speaker 1: so happens that you call this accountability a financial advisor 536 00:23:35,480 --> 00:23:37,199 Speaker 1: and you pay the money, but they're going to help 537 00:23:37,280 --> 00:23:39,040 Speaker 1: keep you on track. I completely agree you. If a 538 00:23:39,119 --> 00:23:40,880 Speaker 1: muscle bound person is gonna be barking in my face, 539 00:23:40,920 --> 00:23:42,440 Speaker 1: I mean, that's gonna that's gonna give me the lift 540 00:23:42,440 --> 00:23:44,919 Speaker 1: weights at at a different level than I probably would otherwise. 541 00:23:45,119 --> 00:23:47,639 Speaker 1: It's also worth considering hiring a financial advisor if you 542 00:23:47,680 --> 00:23:50,320 Speaker 1: are a high earner, or maybe if you're self employed, 543 00:23:50,400 --> 00:23:52,800 Speaker 1: if you're getting past the point of maximizing your traditional 544 00:23:52,840 --> 00:23:55,720 Speaker 1: retirement accounts, maybe you want to invest more you could 545 00:23:55,760 --> 00:23:58,840 Speaker 1: benefit from a financial advisor, or if you are in 546 00:23:58,880 --> 00:24:02,040 Speaker 1: a particularly tough situation where there's a lot of money 547 00:24:02,119 --> 00:24:05,240 Speaker 1: on the line. Maybe this is after a divorce or 548 00:24:05,359 --> 00:24:08,320 Speaker 1: after receiving a huge inheritance. Pretty much anytime there is 549 00:24:08,320 --> 00:24:11,239 Speaker 1: a large quantity of money on the line where a 550 00:24:11,280 --> 00:24:15,000 Speaker 1: slight misstep could cost you, I mean thousands or tens 551 00:24:15,040 --> 00:24:17,600 Speaker 1: of thousands of dollars you know in interest or fees, 552 00:24:17,760 --> 00:24:20,879 Speaker 1: Like that's a situation you want to avoid, or if 553 00:24:20,920 --> 00:24:22,840 Speaker 1: it might just get put into the same these account 554 00:24:22,840 --> 00:24:24,719 Speaker 1: and you might start using it slowly as opposed to 555 00:24:24,760 --> 00:24:27,360 Speaker 1: investing it for the future. I think a financial advisor 556 00:24:27,400 --> 00:24:29,560 Speaker 1: can be a level head in a situation like that 557 00:24:29,600 --> 00:24:31,640 Speaker 1: where there there's a lot of emotions that can prevail, 558 00:24:32,000 --> 00:24:34,359 Speaker 1: especially in a divorce or an inheritance, Matt, there are 559 00:24:34,359 --> 00:24:36,480 Speaker 1: a lot of other things going on, and so to 560 00:24:36,520 --> 00:24:39,399 Speaker 1: have kind of a cooler head a financial advisor working 561 00:24:39,440 --> 00:24:41,399 Speaker 1: to help you in the situation that can make a 562 00:24:41,440 --> 00:24:44,159 Speaker 1: major difference in helping you make smart moves for the 563 00:24:44,200 --> 00:24:47,200 Speaker 1: long haul in a trying time. Yeah, it's also worth 564 00:24:47,240 --> 00:24:50,239 Speaker 1: mentioning to that this might be a situation where not 565 00:24:50,320 --> 00:24:52,800 Speaker 1: only does it call for a financial advisor, but maybe 566 00:24:53,080 --> 00:24:55,280 Speaker 1: a tax attorney or a c P, A somebody who 567 00:24:55,320 --> 00:24:57,280 Speaker 1: knows the ins and outs of the law who understands 568 00:24:57,280 --> 00:24:59,280 Speaker 1: that you know the tax code and that the kind 569 00:24:59,280 --> 00:25:02,200 Speaker 1: of specificity situation that you're finding yourself in, it's not 570 00:25:02,280 --> 00:25:04,200 Speaker 1: just about investing the money. This is something that can 571 00:25:04,240 --> 00:25:07,560 Speaker 1: span large aspects of our lives. So if that's you specifically, 572 00:25:07,640 --> 00:25:10,919 Speaker 1: make sure that you are are looking beyond the financial advisor. Yeah, man, 573 00:25:10,960 --> 00:25:14,160 Speaker 1: I think we've covered some good reasons when financial advisors 574 00:25:14,160 --> 00:25:16,600 Speaker 1: actually makes sense for people. And so if you are 575 00:25:16,640 --> 00:25:18,000 Speaker 1: one of these people, well, how do you go about 576 00:25:18,000 --> 00:25:21,000 Speaker 1: finding a good advisor? Obviously, like we mentioned earlier, you 577 00:25:21,000 --> 00:25:22,920 Speaker 1: want to find an advisor who's going to be a 578 00:25:22,960 --> 00:25:25,560 Speaker 1: fiduciary and they're gonna do with your money what's in 579 00:25:25,680 --> 00:25:28,239 Speaker 1: your best interest, not what's in their best interest. One 580 00:25:28,280 --> 00:25:30,840 Speaker 1: of our favorite places for people to turn is x 581 00:25:30,960 --> 00:25:34,080 Speaker 1: Y Planning Network, and that's because they only have relationships 582 00:25:34,119 --> 00:25:37,160 Speaker 1: with advisors who meet the strict criteria that we've outlined. 583 00:25:37,320 --> 00:25:39,280 Speaker 1: You're going to find an advisor who's fee only, who's 584 00:25:39,280 --> 00:25:43,000 Speaker 1: a fiduciary, who cares about helping you no matter where 585 00:25:43,040 --> 00:25:45,360 Speaker 1: you are in the process of building your wealth. Garrett 586 00:25:45,359 --> 00:25:47,600 Speaker 1: Planning Network is another solid network out there, and we'll 587 00:25:47,800 --> 00:25:49,720 Speaker 1: put links to these in the show notes. Also, getting 588 00:25:49,720 --> 00:25:52,000 Speaker 1: a referral from a friend who has had great experience 589 00:25:52,040 --> 00:25:54,760 Speaker 1: with a financial advisor can be good, but you just 590 00:25:54,800 --> 00:25:57,480 Speaker 1: need to make sure that you interview that financial advisor first, 591 00:25:57,680 --> 00:26:00,480 Speaker 1: because maybe they really like them, but they don't see 592 00:26:00,800 --> 00:26:04,160 Speaker 1: the fees or the negative things associated with the advisor 593 00:26:04,320 --> 00:26:06,040 Speaker 1: that they're currently in a relationship with, and so you 594 00:26:06,040 --> 00:26:08,399 Speaker 1: need to ask those questions still, even if it's a 595 00:26:08,400 --> 00:26:10,520 Speaker 1: recommendation from a friend. Yeah, if there's anything that we've 596 00:26:10,560 --> 00:26:14,880 Speaker 1: learned from watching Parasite, it's don't only just don't only 597 00:26:14,880 --> 00:26:17,159 Speaker 1: take the recommendation of a friend. Make sure that you 598 00:26:17,200 --> 00:26:19,119 Speaker 1: dig in a little bit and do some research. Did 599 00:26:19,160 --> 00:26:21,360 Speaker 1: you did you you watch Parasite? Right? Yeah, Finally we're 600 00:26:21,359 --> 00:26:25,200 Speaker 1: talking about grown up movies. So that one was crazy. 601 00:26:25,240 --> 00:26:27,200 Speaker 1: By the way, if you haven't watched it, I mean, 602 00:26:27,359 --> 00:26:29,680 Speaker 1: would you recommend it? I would totally recommend Okay, Yeah, 603 00:26:29,840 --> 00:26:32,159 Speaker 1: it's pretty out there, but it's also really fascinating. I 604 00:26:32,240 --> 00:26:34,679 Speaker 1: like weird movies like that. That was great. Okay, So 605 00:26:34,760 --> 00:26:37,320 Speaker 1: let's talk about how often into what extent should people 606 00:26:37,359 --> 00:26:38,919 Speaker 1: hire an advisor? Matt, I think this is something that 607 00:26:38,920 --> 00:26:43,000 Speaker 1: people don't necessarily normally consider. You might not need an 608 00:26:43,080 --> 00:26:46,080 Speaker 1: ongoing relationship with an advisor. Maybe you just want to 609 00:26:46,119 --> 00:26:48,960 Speaker 1: check up every five years or so, or when you're 610 00:26:49,000 --> 00:26:51,120 Speaker 1: closing in on big life and money questions. And so 611 00:26:51,400 --> 00:26:54,320 Speaker 1: for folks that don't necessarily want to pay one percent 612 00:26:54,760 --> 00:26:57,960 Speaker 1: of their assets every single year to an advisor to 613 00:26:58,000 --> 00:27:00,400 Speaker 1: manage their money, well, you can develop it is an 614 00:27:00,400 --> 00:27:04,000 Speaker 1: ongoing relationship where you pay a flat fee every two 615 00:27:04,160 --> 00:27:06,720 Speaker 1: or four or five years to that advisor to have 616 00:27:06,800 --> 00:27:09,159 Speaker 1: a sit down chat and to be able to reassess 617 00:27:09,240 --> 00:27:11,120 Speaker 1: the situation that you currently find yourself. And I think 618 00:27:11,119 --> 00:27:13,280 Speaker 1: that sometimes is a better way where you're not paying 619 00:27:13,520 --> 00:27:15,680 Speaker 1: them nearly as much, but you are getting that expert 620 00:27:15,680 --> 00:27:18,440 Speaker 1: help when you do feel like you need it. Great point, Man, 621 00:27:18,520 --> 00:27:20,800 Speaker 1: So we've talked about how to find a good advisor. 622 00:27:20,800 --> 00:27:23,000 Speaker 1: We've talked about maybe how often it's worth going in 623 00:27:23,040 --> 00:27:26,160 Speaker 1: and checking in with one. But the question is now 624 00:27:26,280 --> 00:27:29,879 Speaker 1: like should you hire a financial advisor? And Man, for 625 00:27:29,960 --> 00:27:33,080 Speaker 1: most people, we're looking at you Pete and Pittsburgh. Who's 626 00:27:33,080 --> 00:27:35,359 Speaker 1: Pete in Pittsburgh. We've had like multiple questions. I think 627 00:27:35,400 --> 00:27:39,879 Speaker 1: from Pete and Pittsburgh's right, So we're just gonna assume 628 00:27:39,880 --> 00:27:41,159 Speaker 1: that there's a bunch of them there. Yeah, I think 629 00:27:41,160 --> 00:27:42,919 Speaker 1: there's a lot, but no for real though, like for 630 00:27:42,960 --> 00:27:47,400 Speaker 1: most people, we probably would not recommend hiring a financial advisor. 631 00:27:47,440 --> 00:27:50,439 Speaker 1: If you're listening to this podcast and you're just getting started, 632 00:27:50,560 --> 00:27:52,400 Speaker 1: there are some very basic steps that you can take 633 00:27:52,440 --> 00:27:54,480 Speaker 1: in order to get your investing on the right track. 634 00:27:54,560 --> 00:27:57,879 Speaker 1: Read some some basic personal finance books. Some great investing 635 00:27:57,880 --> 00:28:00,200 Speaker 1: books are out there, and then just keep listening how 636 00:28:00,200 --> 00:28:04,520 Speaker 1: the money when When less money is on the line, 637 00:28:04,880 --> 00:28:07,560 Speaker 1: you can afford to make some of these small mistakes 638 00:28:07,920 --> 00:28:10,600 Speaker 1: as long as you learn from those mistakes, right, Like, 639 00:28:10,640 --> 00:28:13,480 Speaker 1: hopefully you don't make any mistakes. Uh, you're taking a 640 00:28:13,600 --> 00:28:16,800 Speaker 1: slow you're learning. Once you learn, you implement what you've learned. 641 00:28:17,080 --> 00:28:18,760 Speaker 1: You know, you can be methodical about it. You know, 642 00:28:18,800 --> 00:28:20,840 Speaker 1: we're humans though, so unlikely they we're not gonna make 643 00:28:20,840 --> 00:28:22,479 Speaker 1: any right now, That's right. We make some mistakes here 644 00:28:22,480 --> 00:28:24,320 Speaker 1: and there. But what's so important, though, is that we 645 00:28:24,520 --> 00:28:27,000 Speaker 1: learn from those mistakes. If you learn from those mistakes, 646 00:28:27,040 --> 00:28:28,719 Speaker 1: like and I think there's no better way for us 647 00:28:28,720 --> 00:28:32,880 Speaker 1: to learn than life experience, especially when the stakes are low. Yeah, 648 00:28:32,920 --> 00:28:35,240 Speaker 1: and when we're talking about the amount of money that 649 00:28:35,240 --> 00:28:37,240 Speaker 1: we're gonna have in retirement, the stakes are kind of 650 00:28:37,320 --> 00:28:39,400 Speaker 1: high when it comes to hiring a financial advisor. That's 651 00:28:39,440 --> 00:28:41,120 Speaker 1: one of the things that we we haven't talked a 652 00:28:41,160 --> 00:28:43,000 Speaker 1: whole lot about in this episode, but that's one of 653 00:28:43,040 --> 00:28:45,280 Speaker 1: the reasons you would want to go it alone, is 654 00:28:45,280 --> 00:28:48,960 Speaker 1: because the typical fees associated with hiring an advisor. Most 655 00:28:49,000 --> 00:28:51,680 Speaker 1: advisors are going to charge you a minimum of one 656 00:28:51,720 --> 00:28:55,920 Speaker 1: percent of the assets that you have under management every 657 00:28:56,000 --> 00:28:58,040 Speaker 1: year in order to manage your money and give you 658 00:28:58,080 --> 00:29:00,320 Speaker 1: that advice. And so that's a high price to pay. 659 00:29:00,320 --> 00:29:02,480 Speaker 1: One percent sounds really low, but when you think about 660 00:29:02,520 --> 00:29:04,560 Speaker 1: the compounding effect of that one percent fee that you're 661 00:29:04,600 --> 00:29:06,640 Speaker 1: paying every year to that advisor, it can have a 662 00:29:06,640 --> 00:29:08,920 Speaker 1: massive impact on what you're actually going to have in retirement. 663 00:29:08,920 --> 00:29:10,720 Speaker 1: And so if you can go it alone, if you 664 00:29:10,760 --> 00:29:13,760 Speaker 1: can develop confidence by listening to a podcast like this, 665 00:29:13,880 --> 00:29:16,320 Speaker 1: by reading some good personal finance books Matt like you mentioned, 666 00:29:16,440 --> 00:29:18,200 Speaker 1: that can save you those fees and help you to 667 00:29:18,320 --> 00:29:21,480 Speaker 1: build greater wealth uh in your own life as you 668 00:29:21,520 --> 00:29:24,720 Speaker 1: go the d I Y route. Instead of hiring an advisor, Yeah, Joel. 669 00:29:24,720 --> 00:29:26,880 Speaker 1: And one of the solutions to these high fees is 670 00:29:26,920 --> 00:29:29,600 Speaker 1: if you're able to find a happy medium. Robo advisors 671 00:29:29,640 --> 00:29:33,080 Speaker 1: they have completely changed the financial advisor space, but as 672 00:29:33,160 --> 00:29:35,440 Speaker 1: much as they're able to offer, a lot of people 673 00:29:35,760 --> 00:29:37,480 Speaker 1: still want a human to be able to talk to, 674 00:29:38,160 --> 00:29:40,960 Speaker 1: no matter how good the betterment platform is right and 675 00:29:41,000 --> 00:29:43,320 Speaker 1: how they can help you pay attention to your potential 676 00:29:43,360 --> 00:29:47,000 Speaker 1: behavioral misc use. Going with UH, you know, more of 677 00:29:47,000 --> 00:29:50,440 Speaker 1: a full service like Vanguards Advisor Services might be a 678 00:29:50,480 --> 00:29:52,960 Speaker 1: good solution for you, and they charge point three percent 679 00:29:53,360 --> 00:29:56,760 Speaker 1: on assets under management. Another great solution might be Schwab 680 00:29:56,800 --> 00:30:00,200 Speaker 1: Intelligent Portfolios and the way they're pricing structure works. They 681 00:30:00,200 --> 00:30:02,440 Speaker 1: have a one time fee of three d bucks and 682 00:30:02,480 --> 00:30:05,280 Speaker 1: then after that they charge thirty dollars a month, and 683 00:30:05,280 --> 00:30:07,480 Speaker 1: that will likely make the most sense for folks considering 684 00:30:07,480 --> 00:30:11,600 Speaker 1: a human financial advisor because you get unlimited access to 685 00:30:11,920 --> 00:30:16,560 Speaker 1: a CFP, an actual certified financial planner from Schwab. Yeah, 686 00:30:16,680 --> 00:30:19,960 Speaker 1: Schwab and Vanguard both offer c FPS, which is the 687 00:30:20,040 --> 00:30:22,800 Speaker 1: highest and best designation for a financial advisor, and that's 688 00:30:22,840 --> 00:30:24,800 Speaker 1: who we suggest you go with. And so if you 689 00:30:24,880 --> 00:30:27,560 Speaker 1: do sign up through Vanguard or through Schwab for their 690 00:30:27,600 --> 00:30:31,880 Speaker 1: expanded advisor services or intelligent portfolios. You're kind of getting 691 00:30:31,920 --> 00:30:34,280 Speaker 1: the best of both worlds. You're getting the lower fees, 692 00:30:34,480 --> 00:30:37,640 Speaker 1: but you're also getting access to humans who have gone 693 00:30:37,640 --> 00:30:39,360 Speaker 1: through a lot of training to be able to help 694 00:30:39,400 --> 00:30:41,280 Speaker 1: you with your finances in those questions that you have 695 00:30:41,680 --> 00:30:43,640 Speaker 1: over time. Man, I think a couple of years ago 696 00:30:43,680 --> 00:30:45,640 Speaker 1: we talked about financial advisors a little bit and we 697 00:30:45,680 --> 00:30:48,040 Speaker 1: mentioned this company called Grove, and they did a great 698 00:30:48,120 --> 00:30:50,600 Speaker 1: job of charging people six hundred bucks a year and 699 00:30:50,640 --> 00:30:54,000 Speaker 1: giving them access to a financial advisor that since I 700 00:30:54,040 --> 00:30:56,440 Speaker 1: think has been sold, but I don't remember to who. 701 00:30:56,600 --> 00:30:58,760 Speaker 1: It was sold to, a big financial services company, But 702 00:30:58,840 --> 00:31:02,480 Speaker 1: I really think Grove a massive impact on how these 703 00:31:02,480 --> 00:31:05,120 Speaker 1: bigger companies charge for financial advice, and it's become a 704 00:31:05,160 --> 00:31:07,680 Speaker 1: little more democratized, and these low cost investment companies like 705 00:31:07,760 --> 00:31:10,160 Speaker 1: Vanguard and Schwab have done a really good job at 706 00:31:10,200 --> 00:31:13,240 Speaker 1: offering you access to a human who's well informed. It 707 00:31:13,240 --> 00:31:15,200 Speaker 1: can offer you good advice at just at a much 708 00:31:15,200 --> 00:31:17,200 Speaker 1: lower rate than we would typically find or you've been 709 00:31:17,240 --> 00:31:19,760 Speaker 1: able to find over the past two years. Maybe Grove 710 00:31:19,840 --> 00:31:21,840 Speaker 1: was purchased by Schwab and then they cut their prices 711 00:31:21,880 --> 00:31:24,160 Speaker 1: in half. I don't remember if it was Swab. I 712 00:31:24,200 --> 00:31:26,600 Speaker 1: gotta look that up somebody about Grove. Uh. I love 713 00:31:26,640 --> 00:31:29,280 Speaker 1: what they were doing, but I also love what Schwab's doing, 714 00:31:29,400 --> 00:31:31,959 Speaker 1: what Vanguard's doing now. And man, I think ultimately, when 715 00:31:32,000 --> 00:31:34,600 Speaker 1: it comes down to the financial advisor decision, you know, 716 00:31:34,680 --> 00:31:37,080 Speaker 1: we we wanted to talk about how financial advisors aren't 717 00:31:37,080 --> 00:31:38,920 Speaker 1: all bad. I mean, there's some great services they offer, 718 00:31:38,960 --> 00:31:41,120 Speaker 1: and for some types of people it makes a whole 719 00:31:41,160 --> 00:31:44,040 Speaker 1: lot of sense. But ultimately, uh, there's something that Adam 720 00:31:44,080 --> 00:31:46,160 Speaker 1: Smith wrote two hundred years ago. I love reading old 721 00:31:46,200 --> 00:31:48,160 Speaker 1: school authors every once in a while, and he said, 722 00:31:48,400 --> 00:31:51,080 Speaker 1: managers of other people's money rarely watch over it with 723 00:31:51,120 --> 00:31:54,360 Speaker 1: the same anxious vigilance with which they watch over their own. 724 00:31:54,960 --> 00:31:57,640 Speaker 1: So I would say, ultimately, be careful with who you 725 00:31:57,680 --> 00:31:59,880 Speaker 1: and trust to watch over your money. Uh, that you 726 00:32:00,120 --> 00:32:02,239 Speaker 1: have worked hard to earn. This is your money, and 727 00:32:02,280 --> 00:32:04,360 Speaker 1: so who are you putting in charge of it? And 728 00:32:04,400 --> 00:32:07,960 Speaker 1: we believe truly that those cheaper robo alternatives or one 729 00:32:08,000 --> 00:32:10,600 Speaker 1: time or occasional guidance from a paid pro is likely 730 00:32:10,640 --> 00:32:13,320 Speaker 1: all you'll need. Considering the wealth of information and the 731 00:32:13,320 --> 00:32:15,680 Speaker 1: amount of tools that are at our disposal. Now, even 732 00:32:15,760 --> 00:32:19,960 Speaker 1: for novice investors, there are amazing podcasts and incredible books. 733 00:32:20,200 --> 00:32:21,800 Speaker 1: Just go to the library and check out a few 734 00:32:21,800 --> 00:32:24,200 Speaker 1: of them. The ability that we have now to be 735 00:32:24,280 --> 00:32:26,800 Speaker 1: informed on what's happening with our money and how we 736 00:32:26,880 --> 00:32:29,720 Speaker 1: can d I yat is unprecedented, and so I think 737 00:32:29,760 --> 00:32:31,360 Speaker 1: for most people that's still the best way to go. 738 00:32:31,400 --> 00:32:33,680 Speaker 1: But this was definitely worth talking about because there are 739 00:32:33,720 --> 00:32:37,000 Speaker 1: some situations where people will want a financial advisor financial 740 00:32:37,040 --> 00:32:39,400 Speaker 1: planner in their corner. It just kind of depends on 741 00:32:39,440 --> 00:32:41,520 Speaker 1: their specifics and where they're at. Yeah, man, that's a 742 00:32:41,520 --> 00:32:43,680 Speaker 1: good word. And here's the thing too, For a lot 743 00:32:43,720 --> 00:32:46,360 Speaker 1: of folks that might be new to personal finance, you 744 00:32:46,400 --> 00:32:49,160 Speaker 1: may not feel like you have any interest at all, 745 00:32:49,240 --> 00:32:52,240 Speaker 1: Like you have no attraction to money or personal finance. 746 00:32:52,560 --> 00:32:54,560 Speaker 1: And so those folks, I think we would both encourage 747 00:32:54,600 --> 00:32:56,719 Speaker 1: you to just really dig into it a little bit 748 00:32:56,720 --> 00:32:58,600 Speaker 1: more like read some great books will start, you know, 749 00:32:58,640 --> 00:33:01,560 Speaker 1: continue to listen to the podcast, read articles online because 750 00:33:01,560 --> 00:33:04,320 Speaker 1: I know, for me, I have found myself drawn to 751 00:33:04,520 --> 00:33:08,160 Speaker 1: subjects and topics that I didn't find very interesting just 752 00:33:08,320 --> 00:33:10,960 Speaker 1: from the actual process of digging into it. Right, Like, 753 00:33:11,000 --> 00:33:13,000 Speaker 1: the more I learned about something, the more I'm kind 754 00:33:13,000 --> 00:33:15,400 Speaker 1: of sucked into it and the more interesting it becomes. 755 00:33:15,440 --> 00:33:16,800 Speaker 1: It's kind of like when they made you read the 756 00:33:16,800 --> 00:33:19,120 Speaker 1: classics in high school and you're like why, and yeah, 757 00:33:19,240 --> 00:33:21,200 Speaker 1: now I love them. I can't get enough exactly. I 758 00:33:21,240 --> 00:33:23,040 Speaker 1: think the same thing is true with our money, and 759 00:33:23,040 --> 00:33:24,959 Speaker 1: and the payoff is there as well, because this is 760 00:33:25,120 --> 00:33:27,239 Speaker 1: our own money. Like, we're not reading this to learn 761 00:33:27,280 --> 00:33:29,240 Speaker 1: how to manage someone else's money. This isn't a job. 762 00:33:29,600 --> 00:33:31,880 Speaker 1: This is your own life. This is something that very 763 00:33:31,960 --> 00:33:34,320 Speaker 1: much affects you, you know, Like we we don't necessarily 764 00:33:34,320 --> 00:33:37,520 Speaker 1: call our podcast like a self help podcast, but that's 765 00:33:37,520 --> 00:33:39,760 Speaker 1: sort of what we're talking about here. This is personal finance. 766 00:33:39,800 --> 00:33:42,200 Speaker 1: And if you can find ways to manage this yourself 767 00:33:42,640 --> 00:33:45,360 Speaker 1: and to just dominate your own personal finances, then you're 768 00:33:45,360 --> 00:33:47,720 Speaker 1: gonna be in a fantastic spot, you know, years and 769 00:33:47,760 --> 00:33:50,520 Speaker 1: decades down the road. Man totally agree. All right, let's 770 00:33:50,560 --> 00:33:52,520 Speaker 1: get back to the beer that we had on this episode. 771 00:33:52,600 --> 00:33:54,720 Speaker 1: Today on the show, we drank a beer called Catharsis 772 00:33:54,760 --> 00:33:57,280 Speaker 1: by Treehouse Brewing Company, one of the best breweries in 773 00:33:57,320 --> 00:34:00,880 Speaker 1: the nation. Easily and listeners Brian and Haitlyn sent this 774 00:34:00,920 --> 00:34:03,160 Speaker 1: one to us from Massachusetts, so big thanks to y'all 775 00:34:03,360 --> 00:34:05,600 Speaker 1: and Matt. What are your thoughts on this beer? Well, dude, 776 00:34:05,600 --> 00:34:07,880 Speaker 1: this is a really good one. And Brian and Caitlin 777 00:34:08,120 --> 00:34:10,239 Speaker 1: are crazy lucky because they said that this is like 778 00:34:10,280 --> 00:34:13,280 Speaker 1: their local brewery essentially, like it's it's like thirty minutes away, 779 00:34:13,560 --> 00:34:15,160 Speaker 1: and so for them just to be able to Waltzon 780 00:34:15,200 --> 00:34:18,680 Speaker 1: whenever they want and pick up some beers, so jealous. Yeah, 781 00:34:19,480 --> 00:34:22,319 Speaker 1: so incredibly jealous. But what's amazing about this beer, dude, 782 00:34:22,360 --> 00:34:24,960 Speaker 1: is that you and I porters aren't necessarily one of 783 00:34:25,000 --> 00:34:27,440 Speaker 1: our go to styles. I think we've both stated that before. 784 00:34:28,000 --> 00:34:30,160 Speaker 1: And what's amazing about this one, though, is that you 785 00:34:30,440 --> 00:34:34,160 Speaker 1: can get that rich, that robust chocolate flavor without it 786 00:34:34,160 --> 00:34:35,920 Speaker 1: filling you up. One of the reasons we do like 787 00:34:35,920 --> 00:34:38,920 Speaker 1: stous is because the body is typically there, and that 788 00:34:38,960 --> 00:34:41,520 Speaker 1: body kind of adds to the flavor. But somehow this 789 00:34:41,680 --> 00:34:44,720 Speaker 1: beer doesn't need that additional body, it doesn't need that feeling, 790 00:34:44,760 --> 00:34:47,440 Speaker 1: like that additional sense in order to complement this beer like, 791 00:34:47,480 --> 00:34:49,600 Speaker 1: it's got enough flavor going on to be able to 792 00:34:49,640 --> 00:34:51,840 Speaker 1: kind of stand up on its own. And so because 793 00:34:51,880 --> 00:34:53,880 Speaker 1: of that, this is one of the best porters I 794 00:34:53,920 --> 00:34:56,480 Speaker 1: think I've ever had. It's just so well balanced and 795 00:34:56,640 --> 00:34:58,640 Speaker 1: kind of has all the right flavors. Yeah. Man, if 796 00:34:58,640 --> 00:35:00,360 Speaker 1: all porters takes it like this one, I'd be a 797 00:35:00,360 --> 00:35:02,920 Speaker 1: convert immediately. This one is so good. I thought it 798 00:35:03,040 --> 00:35:06,439 Speaker 1: had massive chocolate fudge notes in it and so yeah, 799 00:35:06,440 --> 00:35:09,880 Speaker 1: the flavor profile was just incredibly rich and well developed, 800 00:35:10,120 --> 00:35:12,000 Speaker 1: and that's just not something you find in a whole 801 00:35:12,000 --> 00:35:13,840 Speaker 1: lot of porters. Often times, I feel like they're a 802 00:35:13,920 --> 00:35:17,040 Speaker 1: little bland, there's a little bit thinner. Yeah yeah, and 803 00:35:17,040 --> 00:35:19,520 Speaker 1: this one just had a ton of flavor going on. 804 00:35:19,600 --> 00:35:23,160 Speaker 1: It was delicious. A big fan of everything I've ever 805 00:35:23,160 --> 00:35:25,920 Speaker 1: had from Treehouse and whatever. Beard of style. I think 806 00:35:25,920 --> 00:35:27,520 Speaker 1: they set their minds to make they crush it. They 807 00:35:27,520 --> 00:35:28,960 Speaker 1: can do it. Yeah. It's it's almost like this is 808 00:35:29,160 --> 00:35:31,400 Speaker 1: like a porter concentrate. It's like, oh, maybe they forgot 809 00:35:31,400 --> 00:35:33,120 Speaker 1: to to do this step where they're they're supposed to 810 00:35:33,120 --> 00:35:36,200 Speaker 1: deluted with water. Yeah yeah, yeah, because that's how most 811 00:35:36,239 --> 00:35:38,759 Speaker 1: porter spaces is heavily deluded. Yeah, that's it's like a 812 00:35:38,800 --> 00:35:40,799 Speaker 1: deluded style, whereas this kind of like, yeah, it just 813 00:35:40,880 --> 00:35:44,000 Speaker 1: holds its own tastes so good. I'm incredibly thankful for 814 00:35:44,080 --> 00:35:46,440 Speaker 1: Caitlin and Bryan for for sending this one our way. 815 00:35:46,560 --> 00:35:50,040 Speaker 1: And have you ever even never been a tree House? Right? No? Never? Yeah, 816 00:35:50,080 --> 00:35:52,120 Speaker 1: I haven't either. I think it's it's a good ways 817 00:35:52,120 --> 00:35:54,640 Speaker 1: outside of Boston. I've been to Boston and I visited Trillium, 818 00:35:54,640 --> 00:35:57,680 Speaker 1: which is so good, another great brewery in Boston. But 819 00:35:57,680 --> 00:36:00,000 Speaker 1: but yeah, Treehouse is just harder, like out of the country, right. Yeah, 820 00:36:00,040 --> 00:36:02,439 Speaker 1: So if it's your neighborhood brewery, lucky for you, Brian 821 00:36:02,440 --> 00:36:04,920 Speaker 1: and Caitlin. Yeah, so definitely pump them. We get to 822 00:36:04,920 --> 00:36:06,440 Speaker 1: try this one on the show today. Man, Yeah, man, 823 00:36:06,440 --> 00:36:08,880 Speaker 1: that's right. So that's gonna be it for this episode. 824 00:36:08,920 --> 00:36:11,040 Speaker 1: For listeners who are looking for show notes, we'll have 825 00:36:11,120 --> 00:36:12,680 Speaker 1: some of those links up there with some of those 826 00:36:12,680 --> 00:36:15,400 Speaker 1: different financial planning networks that we mentioned, as well as 827 00:36:15,400 --> 00:36:17,799 Speaker 1: our full show notes up at how to money dot com. 828 00:36:18,040 --> 00:36:20,600 Speaker 1: And if you're looking for some advice some help on 829 00:36:20,600 --> 00:36:22,320 Speaker 1: how to find the right credit card for you, you 830 00:36:22,360 --> 00:36:24,319 Speaker 1: don't need to hire a financial advisor, just go to 831 00:36:24,360 --> 00:36:26,360 Speaker 1: how the money dot com slash credit cards. Matt and 832 00:36:26,400 --> 00:36:28,680 Speaker 1: I have listed the best credit cards for how you 833 00:36:28,719 --> 00:36:30,840 Speaker 1: spend your money, how you can get the most rewards 834 00:36:30,840 --> 00:36:33,600 Speaker 1: back based on the way that you typically spend in 835 00:36:33,640 --> 00:36:35,719 Speaker 1: an average month, and so if you're looking for a 836 00:36:35,719 --> 00:36:37,600 Speaker 1: new card, check that out. And if you sign up 837 00:36:37,600 --> 00:36:39,959 Speaker 1: her card, it does help the podcast at the same time. 838 00:36:40,280 --> 00:36:42,160 Speaker 1: All Right, Matt, that's gonna be it for this episode 839 00:36:42,560 --> 00:36:45,799 Speaker 1: until next time, Joel, best Friends Out, Best Friends Out,