1 00:00:00,120 --> 00:00:02,840 Speaker 1: Welcome to How to Money. I'm Joel and I'm not 2 00:00:03,200 --> 00:00:06,040 Speaker 1: and today we're answering the question do you need a 3 00:00:06,080 --> 00:00:20,520 Speaker 1: financial advisor? All right, man, that's right coming up on 4 00:00:20,560 --> 00:00:24,320 Speaker 1: the show, we're gonna answer that question. There's certainly a 5 00:00:24,360 --> 00:00:26,560 Speaker 1: lot of nuance to it. But we're going to refer 6 00:00:26,600 --> 00:00:29,720 Speaker 1: back to our episode nine, retirement investing is simpler than 7 00:00:29,760 --> 00:00:32,520 Speaker 1: you think. We're gonna talk about how expensive a financial 8 00:00:32,520 --> 00:00:35,120 Speaker 1: advisor can be, and the different types that there are 9 00:00:35,159 --> 00:00:36,760 Speaker 1: out there, so what to look for if you are 10 00:00:36,800 --> 00:00:39,520 Speaker 1: shopping for one, and ultimately whether or not we think 11 00:00:39,520 --> 00:00:42,120 Speaker 1: that people should be paying money to someone every year 12 00:00:42,360 --> 00:00:45,000 Speaker 1: to get financial advice. But before we get too far 13 00:00:45,040 --> 00:00:47,640 Speaker 1: into this, we definitely want people to know that the 14 00:00:47,680 --> 00:00:51,600 Speaker 1: two dudes drinking beer on a podcast are not financial professionals, 15 00:00:51,640 --> 00:00:55,600 Speaker 1: and we probably shouldn't be shouldn't be looked upon as such. Man, 16 00:00:55,640 --> 00:00:58,280 Speaker 1: that's a nice little disclaimory to put out there, a 17 00:00:58,320 --> 00:01:03,040 Speaker 1: little c O A U. In case that being said, Man, 18 00:01:03,080 --> 00:01:05,560 Speaker 1: we've been doing this now for over four months. You know, 19 00:01:05,640 --> 00:01:07,760 Speaker 1: we kind of hit the four month mark, so I 20 00:01:07,760 --> 00:01:10,880 Speaker 1: feel like for professionals, oh totally, but ready to go 21 00:01:10,920 --> 00:01:13,280 Speaker 1: full time yet? I mean, I think Anybody listening to 22 00:01:13,319 --> 00:01:18,720 Speaker 1: this knows those guys have raw talent. They're probably really 23 00:01:18,760 --> 00:01:20,640 Speaker 1: impressed at this point that we've even made it four 24 00:01:20,640 --> 00:01:24,640 Speaker 1: months together uh doing this, and I think, I think 25 00:01:24,640 --> 00:01:26,840 Speaker 1: we're crushing it though. I'm having a blast. It's fun 26 00:01:26,880 --> 00:01:28,440 Speaker 1: to get together and drink beers and talk about the 27 00:01:28,480 --> 00:01:31,160 Speaker 1: stuff we care about, and I think it's really fun 28 00:01:31,360 --> 00:01:34,080 Speaker 1: to interact with the people that are listening that care 29 00:01:34,120 --> 00:01:36,600 Speaker 1: about the stuff we care about. That's that's been the 30 00:01:36,600 --> 00:01:38,920 Speaker 1: best part to me. Yeah, it's definitely been a lot 31 00:01:38,920 --> 00:01:40,640 Speaker 1: of fun. I guess the reason I said four months too. 32 00:01:40,680 --> 00:01:44,360 Speaker 1: That's how long I had considered starting my own business 33 00:01:44,440 --> 00:01:47,400 Speaker 1: back when I had first started uh doing photography, So 34 00:01:47,520 --> 00:01:49,760 Speaker 1: I kind of kicked it around a little bit on 35 00:01:49,760 --> 00:01:51,680 Speaker 1: the side. But after four months is when I was like, Okay, 36 00:01:51,720 --> 00:01:53,960 Speaker 1: now I'm doing this for real full time and went 37 00:01:54,000 --> 00:01:57,000 Speaker 1: after it. So we're supposed to quit our day jobs now. 38 00:01:57,240 --> 00:01:58,920 Speaker 1: I'm just saying, we did just sitting the bar kind 39 00:01:58,920 --> 00:02:02,480 Speaker 1: of high there. Back then when I had zero kids, 40 00:02:02,600 --> 00:02:06,840 Speaker 1: zero responsibility basically except for the Kate, and you like, 41 00:02:06,880 --> 00:02:09,400 Speaker 1: literally could he raman every night to cover for your 42 00:02:09,480 --> 00:02:14,440 Speaker 1: lack of income? And we did, man, we did cool man. 43 00:02:14,560 --> 00:02:18,760 Speaker 1: So before we get talking about financial advisors, let's let's 44 00:02:18,760 --> 00:02:21,280 Speaker 1: talk about our beer. Yeah, al Gash was kind enough 45 00:02:21,320 --> 00:02:23,639 Speaker 1: to send us a couple of different varieties of beer, 46 00:02:24,000 --> 00:02:27,560 Speaker 1: one of which will be partaking in tonight Ala Gash Curio. 47 00:02:27,919 --> 00:02:32,000 Speaker 1: Let me pop it Curio. Man, it has been years 48 00:02:32,000 --> 00:02:34,200 Speaker 1: since I've had his beer. Yeah, so ale Gash has 49 00:02:34,200 --> 00:02:37,640 Speaker 1: apparently been around since. So they were one of the 50 00:02:37,639 --> 00:02:41,760 Speaker 1: old school players in the craft beer world here in 51 00:02:41,800 --> 00:02:44,960 Speaker 1: the United States throughout of Portland, Maine, which, by the way, 52 00:02:45,000 --> 00:02:47,200 Speaker 1: we're just having a good discussion on our Facebook group 53 00:02:47,240 --> 00:02:50,560 Speaker 1: this week about how amazing Portland Maine is. Uh. And 54 00:02:51,560 --> 00:02:54,320 Speaker 1: Ala Gash is a must see, a must visit. They 55 00:02:54,320 --> 00:02:57,040 Speaker 1: make some really really amazing beers. Yeah. I feel like 56 00:02:57,160 --> 00:02:59,360 Speaker 1: Alagash in general is kind of like world class like 57 00:02:59,440 --> 00:03:02,000 Speaker 1: all around, like their beers, like they're sort of approach 58 00:03:02,080 --> 00:03:05,720 Speaker 1: to the industry. The marketing is pretty awesome too. Um. 59 00:03:05,720 --> 00:03:08,360 Speaker 1: But specifically what's awesome about this beer uh and again, 60 00:03:08,400 --> 00:03:10,519 Speaker 1: thank you guys for sending this down is that these 61 00:03:10,520 --> 00:03:13,840 Speaker 1: are twelve ounce bottles of Curio, which you can't get 62 00:03:13,880 --> 00:03:15,960 Speaker 1: that in Georgia yet, so that's pretty sweet. Were like 63 00:03:16,120 --> 00:03:18,320 Speaker 1: maybe the first guys, I don't know, probably not the 64 00:03:18,320 --> 00:03:20,520 Speaker 1: first guys in the entire state, but we'll say we're 65 00:03:20,560 --> 00:03:22,679 Speaker 1: the first guys, first guys in the state to be 66 00:03:22,720 --> 00:03:25,720 Speaker 1: drinking Curio out of twelve ounce bottles. Uh, Normally they're 67 00:03:25,720 --> 00:03:28,560 Speaker 1: in a large format, So the seven fifty bottles, the 68 00:03:28,639 --> 00:03:32,760 Speaker 1: Bombers and man being able to drink delicious beers like 69 00:03:32,800 --> 00:03:35,160 Speaker 1: this out of its twelve ounce is just so much better. 70 00:03:35,760 --> 00:03:37,920 Speaker 1: You don't have to team up with the buddy you 71 00:03:37,920 --> 00:03:39,640 Speaker 1: know to to go in together and drink one of 72 00:03:39,680 --> 00:03:41,360 Speaker 1: these beers. You can just crack one open on a 73 00:03:41,400 --> 00:03:44,280 Speaker 1: on a weekday night like we normally drink. I think 74 00:03:44,320 --> 00:03:47,240 Speaker 1: the main reason I love the move from like larger 75 00:03:47,280 --> 00:03:51,360 Speaker 1: formats to four packs is especially if it's a beer 76 00:03:51,440 --> 00:03:54,520 Speaker 1: the age as well. I love to crack one like 77 00:03:54,600 --> 00:03:57,880 Speaker 1: when I first get it, and then age one or 78 00:03:57,920 --> 00:03:59,480 Speaker 1: two and see what it tastes like in a year 79 00:03:59,520 --> 00:04:02,200 Speaker 1: or two. So it's like, in particular fits a bourbon 80 00:04:02,200 --> 00:04:06,360 Speaker 1: barrel aged stout or a sour beer or something that 81 00:04:06,440 --> 00:04:09,480 Speaker 1: does just hang out well in my cellar. I love 82 00:04:09,600 --> 00:04:11,960 Speaker 1: to to let those hang and see what they tastes 83 00:04:12,000 --> 00:04:14,000 Speaker 1: like years down the road and just kind of look 84 00:04:14,040 --> 00:04:16,599 Speaker 1: at them every now again and give a little smile 85 00:04:16,720 --> 00:04:20,000 Speaker 1: and and just think about that beer again. You smiling 86 00:04:20,000 --> 00:04:22,960 Speaker 1: at your beers. I know it's weird, but Sibody walks 87 00:04:22,960 --> 00:04:24,400 Speaker 1: into the kitchen, You're just standing there in front of 88 00:04:24,400 --> 00:04:26,320 Speaker 1: the pantry just smiling. Hey, there are worse things I 89 00:04:26,360 --> 00:04:28,839 Speaker 1: could be doing, that's for sure. But uh so, my 90 00:04:28,880 --> 00:04:32,240 Speaker 1: only here's my only problem with that is do you remember, 91 00:04:32,279 --> 00:04:34,200 Speaker 1: like exactly what it tastes like? Like, certainly you can 92 00:04:34,240 --> 00:04:36,880 Speaker 1: have a general feel for the beer, like right when 93 00:04:36,880 --> 00:04:38,520 Speaker 1: you cracked it versus how it is a year later. 94 00:04:38,600 --> 00:04:42,200 Speaker 1: But I'm just so technically, I guess minded and oriented. 95 00:04:42,400 --> 00:04:45,880 Speaker 1: I would want another fresh one that's recently been bottled, 96 00:04:45,880 --> 00:04:47,920 Speaker 1: and then one that's been aged, and then one that's 97 00:04:47,920 --> 00:04:49,560 Speaker 1: been aged for a year and so on, you know, 98 00:04:49,600 --> 00:04:52,440 Speaker 1: like the vertical, like having multiple years. I love verticals 99 00:04:52,480 --> 00:04:54,840 Speaker 1: because then you can have all the different beers all 100 00:04:54,880 --> 00:04:57,800 Speaker 1: at once that have been aged differently and having that 101 00:04:57,839 --> 00:05:00,480 Speaker 1: side by side comparison. For me at least, I really 102 00:05:00,520 --> 00:05:02,360 Speaker 1: like that. Yeah. I don't think my memory is good 103 00:05:02,440 --> 00:05:05,120 Speaker 1: enough to say, oh, man, that beer had exactly these 104 00:05:05,160 --> 00:05:07,160 Speaker 1: notes or was better in this way or that way. 105 00:05:07,200 --> 00:05:10,279 Speaker 1: But more than anything, it's it's like a nostalgia to 106 00:05:10,480 --> 00:05:13,520 Speaker 1: bring that beer back and say I remember really enjoying 107 00:05:13,560 --> 00:05:16,839 Speaker 1: this and then enjoying it again a year later or something. 108 00:05:17,240 --> 00:05:20,680 Speaker 1: I find that really fun and in a great reason 109 00:05:21,320 --> 00:05:23,359 Speaker 1: to package beers and four packs. And so I'm glad 110 00:05:23,400 --> 00:05:27,760 Speaker 1: that a standout beer like Curio is now available in 111 00:05:27,839 --> 00:05:30,839 Speaker 1: four packs where we live. So it is a Belgian 112 00:05:30,839 --> 00:05:33,919 Speaker 1: style golden nail aged in bourbon barrels, and that's not 113 00:05:34,000 --> 00:05:37,080 Speaker 1: typically what you see. Most bourbon barrel aged beers are 114 00:05:37,120 --> 00:05:42,239 Speaker 1: like stouts and porters. And so it's been forever, forever 115 00:05:42,279 --> 00:05:44,080 Speaker 1: since I've had this beer. I'm really excited to have 116 00:05:44,160 --> 00:05:46,400 Speaker 1: it again. Yeah, I just don't have just Belgian beers 117 00:05:46,440 --> 00:05:50,479 Speaker 1: all that often. It pours a nice golden color. You 118 00:05:50,520 --> 00:05:54,000 Speaker 1: can see through it got a nice little white bubbly head. 119 00:05:54,680 --> 00:05:58,200 Speaker 1: You can smell those bourbon vanilla notes. Man oh man, 120 00:05:58,279 --> 00:05:59,719 Speaker 1: something else I remember too. I think this is the 121 00:06:00,720 --> 00:06:03,360 Speaker 1: barrel aged beer I think I ever had, really, Yeah, 122 00:06:03,400 --> 00:06:05,800 Speaker 1: like I'm gonna gets six years ago, six seven years ago. 123 00:06:06,320 --> 00:06:08,120 Speaker 1: And because of that, I fell in love with it, 124 00:06:08,120 --> 00:06:09,719 Speaker 1: because I had never had a beer that had been 125 00:06:09,760 --> 00:06:13,039 Speaker 1: aged in bourbon barrels before, and for the longest time. 126 00:06:13,120 --> 00:06:15,039 Speaker 1: This was real high up on my list of of 127 00:06:15,360 --> 00:06:17,720 Speaker 1: favorite beer. So I'm really excited to go back to it. Man, 128 00:06:18,440 --> 00:06:21,919 Speaker 1: that is not a style that anybody else makes that 129 00:06:22,000 --> 00:06:25,000 Speaker 1: I know of, like golden ale aged and bourbon barrels, 130 00:06:25,960 --> 00:06:28,840 Speaker 1: and it's not a style that in my mind I'm like, yes, 131 00:06:28,920 --> 00:06:32,240 Speaker 1: please give me one of those. But holy mackerel, that 132 00:06:32,440 --> 00:06:35,960 Speaker 1: is absolutely delicious. That is really good. I feel like 133 00:06:35,960 --> 00:06:38,920 Speaker 1: the bourbon only kind of accentuates some of those flavors 134 00:06:38,960 --> 00:06:42,480 Speaker 1: going on in the base beer. It's refreshing, It's got 135 00:06:42,480 --> 00:06:45,760 Speaker 1: a lightmouth feel, but with that bourbon undertone that just 136 00:06:45,839 --> 00:06:48,480 Speaker 1: kind of ties it all together. And this reminds me too, man, 137 00:06:48,520 --> 00:06:51,360 Speaker 1: how many great old school beers there are, Like this 138 00:06:51,400 --> 00:06:53,560 Speaker 1: is one of the sort of first craft beers that 139 00:06:53,600 --> 00:06:55,520 Speaker 1: made us way around the country. You know. I think 140 00:06:55,520 --> 00:06:58,440 Speaker 1: it was al Ash's first barrel aged beer as well, 141 00:06:58,920 --> 00:07:01,520 Speaker 1: and since then there have been ton is amazing not 142 00:07:01,600 --> 00:07:04,719 Speaker 1: only beers, but just entire genres like styles of beer. 143 00:07:05,160 --> 00:07:07,080 Speaker 1: And so to kind of go back to this, it's 144 00:07:07,120 --> 00:07:09,680 Speaker 1: kind of refreshing to take something that you haven't had 145 00:07:09,800 --> 00:07:12,320 Speaker 1: forever and not just sort of embarred yourself with sort 146 00:07:12,320 --> 00:07:15,040 Speaker 1: of these new styles that guys are you know, throwing milk, 147 00:07:15,080 --> 00:07:17,440 Speaker 1: sugars and fruit and all this other stuff into their beers, 148 00:07:17,600 --> 00:07:19,080 Speaker 1: you know, trying to push the envelope. It's kind of 149 00:07:19,080 --> 00:07:21,600 Speaker 1: good to go back to something that's tried and trude. 150 00:07:21,640 --> 00:07:24,400 Speaker 1: That's just really I mean world class is like the 151 00:07:24,400 --> 00:07:26,120 Speaker 1: best way to describe it, you know. Yeah, kind of 152 00:07:26,120 --> 00:07:28,080 Speaker 1: more of a staple. Yeah. I was talking talking to Emily, 153 00:07:28,120 --> 00:07:29,840 Speaker 1: telling her that we were going to drink you know, 154 00:07:29,840 --> 00:07:32,320 Speaker 1: an ale Gash beer on the on the podcast tonight, 155 00:07:32,800 --> 00:07:35,960 Speaker 1: and she said, Man, I think ale Gash White was 156 00:07:36,040 --> 00:07:39,240 Speaker 1: literally the first craft beer. I oh, yeah, And I 157 00:07:39,280 --> 00:07:40,920 Speaker 1: think that's probably the case for a lot of people. 158 00:07:41,160 --> 00:07:43,560 Speaker 1: They were drinking you know, crumby beers like Blue Moon 159 00:07:45,600 --> 00:07:47,720 Speaker 1: or what it's something else made by you know, we 160 00:07:47,760 --> 00:07:51,240 Speaker 1: have blue Moon at our wedding. I think I had 161 00:07:51,280 --> 00:07:54,280 Speaker 1: maybe high life at my wedding. So it was all 162 00:07:54,280 --> 00:07:56,840 Speaker 1: about each other place. Yeah, it was all about the 163 00:07:56,920 --> 00:07:59,760 Speaker 1: low expense ratio on that one. But yeah, al Gash 164 00:07:59,760 --> 00:08:02,240 Speaker 1: White was probably for a lot of people that first 165 00:08:02,920 --> 00:08:05,560 Speaker 1: real craft beer that they got into because they were 166 00:08:05,640 --> 00:08:09,120 Speaker 1: drinking some of those like lighter hef style easier to 167 00:08:09,200 --> 00:08:12,560 Speaker 1: drink beers where you put an orange on top and 168 00:08:12,560 --> 00:08:16,000 Speaker 1: then al gash whites is perfect transition. But it's like, 169 00:08:16,240 --> 00:08:19,200 Speaker 1: but it's such a better version of it, Yeah, so 170 00:08:19,280 --> 00:08:21,480 Speaker 1: much better. It's like this is what you were drinking, 171 00:08:21,520 --> 00:08:25,160 Speaker 1: but like done right, exactly exactly, and people, oh, okay, 172 00:08:25,200 --> 00:08:27,600 Speaker 1: all right, I get that people in it. Yeah, that's 173 00:08:27,640 --> 00:08:29,800 Speaker 1: so funny. Man. One of the earliest experiences I have 174 00:08:30,000 --> 00:08:33,000 Speaker 1: at a local bar, at a local brew pub indicator 175 00:08:33,040 --> 00:08:36,040 Speaker 1: at brick Store was going in there with Kate and 176 00:08:36,080 --> 00:08:39,040 Speaker 1: I think her parents, my in laws, and specifically I 177 00:08:39,040 --> 00:08:41,960 Speaker 1: remember somebody ordering and al ash white because it's sort 178 00:08:42,000 --> 00:08:43,559 Speaker 1: of kind of high on the list, you know, it's 179 00:08:43,600 --> 00:08:45,080 Speaker 1: something that they always have, so it's like, all right, 180 00:08:45,080 --> 00:08:48,560 Speaker 1: this is gonna be something good. And yeah, it's just, 181 00:08:48,600 --> 00:08:50,320 Speaker 1: like you said, one of those originals, kind of like 182 00:08:50,360 --> 00:08:54,320 Speaker 1: one of those gateway craft beers, if you will. So, yeah, 183 00:08:54,320 --> 00:08:55,720 Speaker 1: if you were to make a list of like five 184 00:08:55,760 --> 00:08:57,880 Speaker 1: Gateway craft beers that would easily be on there, it 185 00:08:58,080 --> 00:09:01,320 Speaker 1: would be like that here and about pale Ale. It'd 186 00:09:01,360 --> 00:09:02,480 Speaker 1: be fun to kind of come up with a list 187 00:09:02,520 --> 00:09:04,280 Speaker 1: at some point of those, but like, those are the 188 00:09:04,320 --> 00:09:06,640 Speaker 1: two that immediately come to my mind. Those would be 189 00:09:06,679 --> 00:09:08,600 Speaker 1: two of the of the top five on my list 190 00:09:08,640 --> 00:09:11,520 Speaker 1: that that's how people broke into craft beer. All right, Matt, 191 00:09:11,559 --> 00:09:14,240 Speaker 1: onto the topic of the day. Do you need a 192 00:09:14,280 --> 00:09:18,319 Speaker 1: financial advisor? So generally speaking, no, I mean there's certain 193 00:09:18,400 --> 00:09:22,880 Speaker 1: situations like a divorce or a complicated inheritance sort of 194 00:09:22,920 --> 00:09:26,600 Speaker 1: situation that might call for it, um, But for the 195 00:09:26,679 --> 00:09:29,079 Speaker 1: vast majority of folks, and definitely for the most folks 196 00:09:29,120 --> 00:09:33,040 Speaker 1: that are listening to this, I would say absolutely not. Yeah, 197 00:09:33,120 --> 00:09:35,720 Speaker 1: what a financial advisors purport to help you with? I mean, 198 00:09:35,760 --> 00:09:37,520 Speaker 1: I think there are a wide range of things that 199 00:09:38,400 --> 00:09:41,400 Speaker 1: many financial advisors would say they offer, and that can 200 00:09:41,440 --> 00:09:45,040 Speaker 1: be from financial goal setting to managing your cash flow, 201 00:09:45,440 --> 00:09:47,760 Speaker 1: to think through what happens if someone dies or someone 202 00:09:47,800 --> 00:09:50,720 Speaker 1: in your family becomes disabled. They can help you think about, 203 00:09:50,920 --> 00:09:54,079 Speaker 1: you know, life insurance, creating a will. Most of those 204 00:09:54,120 --> 00:09:56,920 Speaker 1: topics are important to think about. Think the question comes 205 00:09:56,920 --> 00:10:01,240 Speaker 1: down to should you be paying a profession nal to 206 00:10:01,280 --> 00:10:05,040 Speaker 1: help you plan those areas of your life out? Yeah, Juell, 207 00:10:05,200 --> 00:10:07,240 Speaker 1: I mean I think that's the absolute question that you 208 00:10:07,240 --> 00:10:09,680 Speaker 1: need to be asking yourself. Most of the time, some 209 00:10:09,760 --> 00:10:11,800 Speaker 1: of these scenes can be figured out just by thinking 210 00:10:11,800 --> 00:10:14,360 Speaker 1: about it, right. I think about the the episode we 211 00:10:14,400 --> 00:10:17,480 Speaker 1: did like the why behind money, like talk about goal 212 00:10:17,559 --> 00:10:19,880 Speaker 1: setting as far as like what to do with your money. 213 00:10:20,040 --> 00:10:22,160 Speaker 1: That's when you're gonna come up with your plan. You 214 00:10:22,200 --> 00:10:24,040 Speaker 1: just have to give it some time and some intention, 215 00:10:24,200 --> 00:10:26,719 Speaker 1: some thought, and also do some Google searching. There's a 216 00:10:26,760 --> 00:10:29,360 Speaker 1: lot of information out there that a lot of folks 217 00:10:29,360 --> 00:10:32,760 Speaker 1: have already put out there and have given real life examples, 218 00:10:33,320 --> 00:10:35,280 Speaker 1: and a ton of that is very very easy to 219 00:10:35,559 --> 00:10:38,800 Speaker 1: implement in your own life. Yeah, I think probably a 220 00:10:38,840 --> 00:10:41,360 Speaker 1: couple of the main reasons that's that people decide to 221 00:10:41,400 --> 00:10:46,560 Speaker 1: go see a quote unquote financial advisor is because either one, 222 00:10:47,200 --> 00:10:49,760 Speaker 1: they're a little bit lazy, they haven't done the research, 223 00:10:49,840 --> 00:10:52,360 Speaker 1: and they don't really know what to do with their money, 224 00:10:52,440 --> 00:10:55,880 Speaker 1: and they just they decide, you know, maybe they're thirty 225 00:10:55,920 --> 00:10:58,640 Speaker 1: five and something happens in their family, or maybe they're 226 00:10:58,720 --> 00:11:02,600 Speaker 1: fifty and something happened with their job. But some sort 227 00:11:02,600 --> 00:11:06,120 Speaker 1: of life event usually comes upon somebody and they decide, 228 00:11:06,160 --> 00:11:08,360 Speaker 1: you know what, now is the time for me to 229 00:11:08,480 --> 00:11:12,040 Speaker 1: take action and get involved in my finances and and 230 00:11:12,080 --> 00:11:14,559 Speaker 1: start saving for the future. I guess the right thing 231 00:11:14,559 --> 00:11:17,040 Speaker 1: to do is to go see a financial advisor. And 232 00:11:17,080 --> 00:11:20,480 Speaker 1: so it's usually out of a life event that people 233 00:11:20,720 --> 00:11:22,920 Speaker 1: launched into this and decided to pick somebody out of 234 00:11:22,960 --> 00:11:25,520 Speaker 1: the Yellow Pages and go sit down and talk to 235 00:11:25,559 --> 00:11:27,599 Speaker 1: somebody yellow Pages. Man, you're like taking it back to 236 00:11:27,640 --> 00:11:30,440 Speaker 1: the nineties or yellow pages dot com. I don't know. Yeah, 237 00:11:30,440 --> 00:11:32,120 Speaker 1: I think the reason people feel that way too is 238 00:11:32,120 --> 00:11:34,040 Speaker 1: that it can be overwhelming. You know, if you haven't 239 00:11:34,040 --> 00:11:36,920 Speaker 1: given any thoughts to your money basically at all, and 240 00:11:36,920 --> 00:11:38,280 Speaker 1: then all of a sudden you're sort of faced with 241 00:11:38,280 --> 00:11:40,720 Speaker 1: with these decisions that need to be made and you 242 00:11:40,760 --> 00:11:42,640 Speaker 1: start thinking through it. Well, yeah, it can kind of 243 00:11:42,640 --> 00:11:45,360 Speaker 1: be crippling, but you know if you start thinking through it. 244 00:11:45,640 --> 00:11:48,280 Speaker 1: I mean again, like almost all the things you already mentioned, 245 00:11:48,440 --> 00:11:50,080 Speaker 1: like these are things that we've even already talked about. 246 00:11:50,080 --> 00:11:52,080 Speaker 1: We've only been doing this podcast for like a few months, 247 00:11:52,480 --> 00:11:55,480 Speaker 1: but we've already covered cash flow, Right, what is that 248 00:11:55,600 --> 00:11:58,120 Speaker 1: you know, managing your You're you're spending and you're saving. Well, 249 00:11:58,120 --> 00:12:00,600 Speaker 1: that's a budget, like the goal seting. Well, that's the 250 00:12:00,600 --> 00:12:02,520 Speaker 1: why behind money, you know, Like, yeah, we haven't done 251 00:12:02,520 --> 00:12:05,360 Speaker 1: one yet on disability insurance or life insurance things like that. 252 00:12:05,360 --> 00:12:09,000 Speaker 1: That might be a sad episode, right, if you died, 253 00:12:09,200 --> 00:12:11,800 Speaker 1: is your family gonna be Okay, but it's an important 254 00:12:11,840 --> 00:12:15,840 Speaker 1: thing to Yeah, it's definitely true. And maybe because it 255 00:12:15,880 --> 00:12:17,559 Speaker 1: is kind of a bummer, we we've kind of avoided it. 256 00:12:17,600 --> 00:12:18,880 Speaker 1: Maybe that's one that will end up on the short 257 00:12:18,880 --> 00:12:20,440 Speaker 1: list and we'll get to that sooner than later. But 258 00:12:20,480 --> 00:12:23,599 Speaker 1: these are things that can be done incrementally and that 259 00:12:23,600 --> 00:12:27,280 Speaker 1: shouldn't be overwhelming because they're complicated. They're fairly simple things 260 00:12:27,480 --> 00:12:29,760 Speaker 1: that if you just tackle it one step at a time. 261 00:12:30,320 --> 00:12:32,000 Speaker 1: So we just talked through some of the things right 262 00:12:32,040 --> 00:12:34,560 Speaker 1: that a financial advisor can help you sort of think 263 00:12:34,600 --> 00:12:37,640 Speaker 1: through and plan and navigate the waters of personal finance. 264 00:12:38,200 --> 00:12:39,839 Speaker 1: A lot of the questions that we see out there 265 00:12:39,960 --> 00:12:42,760 Speaker 1: have mainly to do with investing, and so that's what 266 00:12:42,760 --> 00:12:45,840 Speaker 1: we're gonna spend the rest of the podcast talking about. Specifically, 267 00:12:45,960 --> 00:12:50,800 Speaker 1: is a financial advisor necessary when it comes to retirement investing? Yeah? Man, 268 00:12:50,920 --> 00:12:55,160 Speaker 1: So the financial services industry tries to overcomplicate things. There 269 00:12:55,200 --> 00:12:58,280 Speaker 1: are a billion products that are offered with a variety 270 00:12:58,280 --> 00:13:01,080 Speaker 1: of different claims and ulto only most of those things 271 00:13:01,080 --> 00:13:03,040 Speaker 1: are crap. You don't need to know about them, and 272 00:13:03,080 --> 00:13:06,959 Speaker 1: so learning how to invest your money so that it's 273 00:13:07,000 --> 00:13:09,559 Speaker 1: working for you and not making someone else rich is 274 00:13:09,720 --> 00:13:13,720 Speaker 1: really an empowering thing, Jill. Another reason to consider not 275 00:13:13,840 --> 00:13:16,800 Speaker 1: having a financial advisor is if you have just you know, 276 00:13:16,840 --> 00:13:20,320 Speaker 1: a lower income and if your assets are simpler when 277 00:13:20,400 --> 00:13:23,080 Speaker 1: you make less, these fees really cut into your income. 278 00:13:23,240 --> 00:13:24,960 Speaker 1: Even though a lot of these different companies work off 279 00:13:24,960 --> 00:13:27,559 Speaker 1: of a percentage, there's still sort of a minimum, right, 280 00:13:27,600 --> 00:13:30,520 Speaker 1: like sort of a threshold, a bar to entry that 281 00:13:30,559 --> 00:13:32,800 Speaker 1: you need to have before they'll even kind of take 282 00:13:32,840 --> 00:13:35,199 Speaker 1: you in, before they'll even consider you. So, yeah, it's 283 00:13:35,240 --> 00:13:37,800 Speaker 1: definitely something else to consider. Most people in America make 284 00:13:37,840 --> 00:13:40,120 Speaker 1: less than a hundred and most people in America make 285 00:13:40,160 --> 00:13:42,559 Speaker 1: less than a hundred thousand dollars a year. And so 286 00:13:43,000 --> 00:13:45,360 Speaker 1: let's say you're getting that four oh one k match 287 00:13:45,840 --> 00:13:47,800 Speaker 1: and you're trying to figure out where to go next 288 00:13:47,840 --> 00:13:50,480 Speaker 1: to put a little bit of extra retirement money. There's 289 00:13:50,520 --> 00:13:52,960 Speaker 1: a lot of people like that that are trying to 290 00:13:52,960 --> 00:13:55,199 Speaker 1: go see a financial advisor. There's a lot of people 291 00:13:55,240 --> 00:13:58,280 Speaker 1: that have just a small amount of assets that are 292 00:13:58,280 --> 00:14:01,079 Speaker 1: trying to invest and they want to pay a premium 293 00:14:01,120 --> 00:14:02,920 Speaker 1: to talk to somebody to make sure they're doing the 294 00:14:03,000 --> 00:14:05,000 Speaker 1: right thing. I think, more than anything, that's what I 295 00:14:05,040 --> 00:14:07,800 Speaker 1: want to warn people against in this episode. If you're 296 00:14:07,800 --> 00:14:11,400 Speaker 1: in that category of normal American income, you don't want 297 00:14:11,400 --> 00:14:14,520 Speaker 1: to be paying a huge portion of your investable assets 298 00:14:14,559 --> 00:14:17,679 Speaker 1: to someone to tell you how to invest that money, 299 00:14:17,800 --> 00:14:19,760 Speaker 1: or just to like maybe tell you to just get 300 00:14:19,760 --> 00:14:22,560 Speaker 1: out of debt. You know, like that money could bet, 301 00:14:22,600 --> 00:14:25,560 Speaker 1: you know, be better spent towards paying off debt or 302 00:14:25,600 --> 00:14:27,560 Speaker 1: paying off credit cards or something like that that maybe 303 00:14:27,560 --> 00:14:29,440 Speaker 1: should be obvious, but you know, this is just not 304 00:14:29,560 --> 00:14:31,360 Speaker 1: something that you you might be thinking of at the time. 305 00:14:31,840 --> 00:14:34,240 Speaker 1: You think there's something more complicated or fancy that needs 306 00:14:34,240 --> 00:14:36,320 Speaker 1: to take place, when in reality it's like, well, maybe 307 00:14:36,320 --> 00:14:39,440 Speaker 1: you should just put that towards paying off debt. So 308 00:14:39,520 --> 00:14:41,240 Speaker 1: here was the way I thought about it. Let's say 309 00:14:41,240 --> 00:14:43,800 Speaker 1: give a normal sized American lawn that needs to be 310 00:14:43,840 --> 00:14:47,320 Speaker 1: mowed every week and a half, and you go out 311 00:14:47,360 --> 00:14:51,200 Speaker 1: and you hire the guy that is the groundskeeper for 312 00:14:51,280 --> 00:14:56,000 Speaker 1: your local major league ballpark, say, can you come mode 313 00:14:56,040 --> 00:14:59,320 Speaker 1: my lawn and make it look pristine? He says, sure, 314 00:14:59,360 --> 00:15:02,080 Speaker 1: But I normal work on these these major ballparks. You know, 315 00:15:02,120 --> 00:15:05,200 Speaker 1: my time's worth a lot. Okay, I like where you're going. 316 00:15:05,360 --> 00:15:07,520 Speaker 1: I can make your lawn look pretty amazing, but it's 317 00:15:07,520 --> 00:15:10,160 Speaker 1: gonna cost a lot of money because I'm a baller, 318 00:15:12,120 --> 00:15:15,960 Speaker 1: and so obviously you wouldn't jump into that relationship. You 319 00:15:15,960 --> 00:15:20,040 Speaker 1: wouldn't pay a guy a premium that is well above 320 00:15:20,120 --> 00:15:22,920 Speaker 1: what anybody else would charge the layer law. Instead of 321 00:15:22,960 --> 00:15:26,160 Speaker 1: doing that, the much better decision would be to buy 322 00:15:26,160 --> 00:15:28,240 Speaker 1: your own lawnmower and start cutting your own grass and 323 00:15:28,280 --> 00:15:30,880 Speaker 1: maybe buy an edge or on top and right and 324 00:15:30,960 --> 00:15:33,400 Speaker 1: a blower and you can make it look semi professional. 325 00:15:33,760 --> 00:15:36,280 Speaker 1: But I think a lot of people in America are 326 00:15:36,360 --> 00:15:39,760 Speaker 1: in that situation where they have a normal lawn that's 327 00:15:39,800 --> 00:15:42,160 Speaker 1: easily maintained on their own, and they decided to do 328 00:15:42,240 --> 00:15:45,400 Speaker 1: something crazy like hire somebody to give them input on 329 00:15:45,480 --> 00:15:47,880 Speaker 1: their small amount of assets and their small amount of 330 00:15:47,960 --> 00:15:51,000 Speaker 1: money that they have to invest every month, and ultimately 331 00:15:51,440 --> 00:15:54,640 Speaker 1: it eats into their growth and it does great damage 332 00:15:54,680 --> 00:15:57,240 Speaker 1: to their ability to retire early. Yeah, man, I like 333 00:15:57,280 --> 00:16:00,120 Speaker 1: that analogy. So another reason why you should consider are 334 00:16:00,160 --> 00:16:02,560 Speaker 1: not having a financial advisor is like you said, I mean, 335 00:16:02,560 --> 00:16:05,560 Speaker 1: they can be expensive. And when you have a small 336 00:16:05,920 --> 00:16:08,560 Speaker 1: a smaller portfolio you know of assets or you know, 337 00:16:08,600 --> 00:16:10,920 Speaker 1: like you're saying, a smaller lawn, you go to an 338 00:16:10,920 --> 00:16:13,720 Speaker 1: advisor and they're going to take a decent percentage of 339 00:16:13,880 --> 00:16:16,800 Speaker 1: what you're gonna earn is going to go towards paying them. 340 00:16:16,800 --> 00:16:19,040 Speaker 1: And there's different ways that they can be paid. Um, 341 00:16:19,120 --> 00:16:22,480 Speaker 1: you've got fee only or feed based, and then you've 342 00:16:22,480 --> 00:16:25,760 Speaker 1: got commission based, and they are not all created equal. 343 00:16:26,320 --> 00:16:28,880 Speaker 1: Best case scenario, you found somebody that is fee only 344 00:16:29,360 --> 00:16:33,640 Speaker 1: where they either have a flat rate or they build hourly. Yeah, 345 00:16:33,640 --> 00:16:35,480 Speaker 1: and if you are going to hire a financial advisor, 346 00:16:35,560 --> 00:16:37,680 Speaker 1: that's the best way to go because that's the best 347 00:16:37,680 --> 00:16:41,120 Speaker 1: case scenario. There are a lot of hidden fees with 348 00:16:41,200 --> 00:16:44,880 Speaker 1: most of the other ways that an advisor can be compensated. So, 349 00:16:44,960 --> 00:16:47,920 Speaker 1: for instance, there are also fee based planners, and so 350 00:16:48,240 --> 00:16:50,400 Speaker 1: they charge a fee, but then they also might make 351 00:16:50,400 --> 00:16:53,040 Speaker 1: commissions off of products that they sell you on top 352 00:16:53,080 --> 00:16:55,600 Speaker 1: of that. So at least you know if you visit 353 00:16:55,680 --> 00:16:59,480 Speaker 1: a fee only advisor, you've worked out hopefully an hourly 354 00:16:59,560 --> 00:17:02,200 Speaker 1: rate that they're getting paid, and you know exactly what 355 00:17:02,240 --> 00:17:05,119 Speaker 1: they're getting compensated for, and that whatever they recommend to 356 00:17:05,200 --> 00:17:08,880 Speaker 1: you they believe is in your best interest as a fiduciary. 357 00:17:09,320 --> 00:17:10,840 Speaker 1: They're not trying to sell you things, they are going 358 00:17:10,880 --> 00:17:14,399 Speaker 1: to make them additional money. Edel you mentioned fiduciaries, So 359 00:17:14,560 --> 00:17:16,919 Speaker 1: you want to define exactly what that is. Yeah, Man, 360 00:17:17,000 --> 00:17:20,720 Speaker 1: a fiduciary has a legal standard and a moral standard 361 00:17:21,119 --> 00:17:25,239 Speaker 1: to do what is in your best interest with your money. So, 362 00:17:25,280 --> 00:17:28,520 Speaker 1: for instance, they wouldn't recommend to you an annuity that 363 00:17:28,600 --> 00:17:31,720 Speaker 1: earns them high commissions or isn't best for your scenario 364 00:17:32,080 --> 00:17:35,159 Speaker 1: just because it made them more dollars higher percentI rate 365 00:17:35,200 --> 00:17:38,640 Speaker 1: that they're making commission on. Right. Ultimately, if you're considering 366 00:17:38,680 --> 00:17:42,119 Speaker 1: hiring somebody to help you with their investments, that is 367 00:17:42,160 --> 00:17:43,679 Speaker 1: the first question you want to ask them. Are you 368 00:17:43,720 --> 00:17:45,800 Speaker 1: a fiduciary? If they're not a fiduciary, you want to 369 00:17:45,840 --> 00:17:47,720 Speaker 1: walk out the door right then and there, because that 370 00:17:47,800 --> 00:17:50,520 Speaker 1: fiduciary standard is crucial to knowing that you're going to 371 00:17:50,600 --> 00:17:54,200 Speaker 1: get the unbiased advice that you need. Yeah, not all 372 00:17:54,240 --> 00:17:58,480 Speaker 1: financial planners are fiduciaries. And I mean, like, how much 373 00:17:58,520 --> 00:18:01,199 Speaker 1: sense does it make to go to somebody and like 374 00:18:01,240 --> 00:18:03,600 Speaker 1: ask them for advice on something that you should do 375 00:18:03,640 --> 00:18:06,119 Speaker 1: with your money that is going to make them money? 376 00:18:06,200 --> 00:18:08,840 Speaker 1: You know, it's just like, well, of course you're gonna 377 00:18:08,960 --> 00:18:12,160 Speaker 1: probably mentioned the products that make them twice as much 378 00:18:12,160 --> 00:18:15,600 Speaker 1: in commission than the basic sort of product that's just 379 00:18:15,600 --> 00:18:18,440 Speaker 1: gonna be great for you, but certainly not the best 380 00:18:18,440 --> 00:18:20,679 Speaker 1: for them. It's kind of surprising that there's not a 381 00:18:20,760 --> 00:18:23,399 Speaker 1: more sort of rigorous standard. I guess, like, I know 382 00:18:23,480 --> 00:18:26,840 Speaker 1: this exists, but it's just crazy that not everyone is 383 00:18:26,880 --> 00:18:29,119 Speaker 1: required to go by that. You know, Like, anybody can 384 00:18:29,119 --> 00:18:32,119 Speaker 1: call themselves a financial advisor and that doesn't really mean anything. 385 00:18:32,280 --> 00:18:34,919 Speaker 1: It doesn't speak to their knowledge and what they're capable of. 386 00:18:35,080 --> 00:18:37,320 Speaker 1: It just means that that's just sort of what they do. Yeah, 387 00:18:37,320 --> 00:18:38,880 Speaker 1: I mean, I think there are a couple of problems 388 00:18:38,880 --> 00:18:41,240 Speaker 1: in the industry as a whole. Right, there's first off, Yeah, 389 00:18:41,240 --> 00:18:43,600 Speaker 1: there there isn't really a standard in in the Department 390 00:18:43,600 --> 00:18:45,520 Speaker 1: of Labor tried to kind of come up with a standard, 391 00:18:45,760 --> 00:18:48,199 Speaker 1: and that's kind of been walked back. And so for 392 00:18:48,240 --> 00:18:51,800 Speaker 1: a minute it looked like anybody giving investment advice was 393 00:18:51,800 --> 00:18:53,800 Speaker 1: going to have to be a foduciary. Well that's kind 394 00:18:53,840 --> 00:18:55,920 Speaker 1: of been backtracked, and so that's not really the case anymore. 395 00:18:55,920 --> 00:18:57,720 Speaker 1: So you really have to watch your own back. No 396 00:18:57,720 --> 00:19:00,400 Speaker 1: one else is watching it for you. Yeah, let's talk 397 00:19:00,400 --> 00:19:02,560 Speaker 1: about the fact that financial planner is kind of a 398 00:19:02,640 --> 00:19:06,520 Speaker 1: vague term as well. It Yeah, I'm a financial planner, Joel. Right, 399 00:19:07,960 --> 00:19:10,959 Speaker 1: almost anybody can calmselve that. But but what does it 400 00:19:11,119 --> 00:19:14,120 Speaker 1: mean in actuality? And what is their obligation to you? 401 00:19:14,440 --> 00:19:15,840 Speaker 1: And so those are the questions that you have to 402 00:19:15,880 --> 00:19:18,040 Speaker 1: ask yourself and ask the person that you're potentially going 403 00:19:18,119 --> 00:19:20,879 Speaker 1: to work with. And ultimately it can be kind of 404 00:19:21,040 --> 00:19:23,879 Speaker 1: a shady area because of the fact that there aren't 405 00:19:23,880 --> 00:19:26,399 Speaker 1: many rules regulations in place, and a lot of people 406 00:19:26,440 --> 00:19:29,240 Speaker 1: are billing themselves. Is something that they're not or at 407 00:19:29,320 --> 00:19:32,159 Speaker 1: least overselling themselves, making you think that they have an 408 00:19:32,200 --> 00:19:34,960 Speaker 1: obligation to you that they don't actually have. Yeah. Man, 409 00:19:35,160 --> 00:19:37,359 Speaker 1: another reason to you, a lot of people want to 410 00:19:37,359 --> 00:19:40,080 Speaker 1: go to the financial advisors is they think, uh, and 411 00:19:40,119 --> 00:19:43,399 Speaker 1: that they're told by financial advisors to that their money 412 00:19:43,480 --> 00:19:46,919 Speaker 1: will just do that much better being managed by somebody, right, 413 00:19:46,960 --> 00:19:49,720 Speaker 1: like somebody that does this for a living, that's a professional, 414 00:19:49,760 --> 00:19:53,200 Speaker 1: that's an official financial planner, that they can beat the market. 415 00:19:53,400 --> 00:19:56,560 Speaker 1: You go with me, we're gonna crush the markets. Well, 416 00:19:56,640 --> 00:19:58,640 Speaker 1: guess what if it makes you rich? If you could 417 00:19:58,640 --> 00:20:00,520 Speaker 1: do that, you wouldn't be coming to me as a 418 00:20:00,520 --> 00:20:02,560 Speaker 1: client trying to get my dollars. But yeah, I mean, 419 00:20:02,560 --> 00:20:05,080 Speaker 1: the fact is is that. I mean, it's not impossible 420 00:20:05,119 --> 00:20:08,440 Speaker 1: to beat the market, right, but dang close. It's yeah, 421 00:20:08,520 --> 00:20:11,960 Speaker 1: it's it's virtually impossible. It's it's really really hard. And 422 00:20:12,000 --> 00:20:15,080 Speaker 1: it makes me think of Warm Buffett, the Warm Buffett 423 00:20:15,480 --> 00:20:17,600 Speaker 1: bet or whatever. Yes, that's exactly what it makes me 424 00:20:17,640 --> 00:20:19,600 Speaker 1: think of too. Yeah, so it's been ten years now. 425 00:20:19,960 --> 00:20:23,000 Speaker 1: Back in oh seven, Warm Buffet basically made a like 426 00:20:23,040 --> 00:20:26,960 Speaker 1: a one million dollar wager, which is awesome, one million 427 00:20:26,960 --> 00:20:30,520 Speaker 1: dollar bet with some hedge fund guys. And the whole 428 00:20:30,520 --> 00:20:32,399 Speaker 1: thing was that like, all right, in the next ten years, 429 00:20:33,040 --> 00:20:35,639 Speaker 1: whose money is going to do better? Money that's putting 430 00:20:35,640 --> 00:20:39,320 Speaker 1: these hedge funds that's able to be reallocated and shifted around, 431 00:20:39,400 --> 00:20:43,960 Speaker 1: and these fancy dudes with expensive educations and fancy suits, 432 00:20:44,200 --> 00:20:48,840 Speaker 1: the Wall Street guys things around versus Warm Buffets approach, 433 00:20:49,440 --> 00:20:55,320 Speaker 1: which is low cost SMP index funds. Nothing changes, it's 434 00:20:55,400 --> 00:20:58,960 Speaker 1: just the same thing, no movement at all, which pretty 435 00:20:59,040 --> 00:21:01,040 Speaker 1: much the exact fun that you and I talked about 436 00:21:01,040 --> 00:21:03,480 Speaker 1: in episode nine on our episode, which is which is 437 00:21:03,520 --> 00:21:05,520 Speaker 1: the one that you and I are invested in. Yeah, 438 00:21:05,640 --> 00:21:07,080 Speaker 1: that's what we do. And so we're gonna be just 439 00:21:07,119 --> 00:21:09,919 Speaker 1: like warm Buffett. Man, if we can be just like 440 00:21:09,920 --> 00:21:11,600 Speaker 1: warm Buffett. That's a good thing, right, I mean, I 441 00:21:11,600 --> 00:21:14,080 Speaker 1: think he's a wise example to follow. He's one of 442 00:21:14,119 --> 00:21:17,360 Speaker 1: those few people that over over time, over the long haul, 443 00:21:17,520 --> 00:21:20,919 Speaker 1: has been able to beat the actual stock market returns, 444 00:21:20,960 --> 00:21:24,639 Speaker 1: which is crazy, it is. And even still he still 445 00:21:24,880 --> 00:21:27,840 Speaker 1: recommends to not do that. That's what's awesome. It's like 446 00:21:27,920 --> 00:21:30,040 Speaker 1: he's like, he can do it, but he's just like, no, 447 00:21:30,040 --> 00:21:31,800 Speaker 1: no, no no, don't do that. You just need to focus 448 00:21:31,840 --> 00:21:35,280 Speaker 1: on low fees and sticking with the actual market. Yeah, 449 00:21:35,400 --> 00:21:37,840 Speaker 1: being highly diversified in that. Yeah, I think anybody out 450 00:21:37,840 --> 00:21:40,000 Speaker 1: there who says, you know what, well, you just said 451 00:21:40,000 --> 00:21:42,080 Speaker 1: Warren Buffet can do it, so why can't I do it? Well, 452 00:21:42,119 --> 00:21:44,639 Speaker 1: I think that's like saying I'm gonna play basketball like 453 00:21:44,720 --> 00:21:47,760 Speaker 1: Lebron James. Uh. There are certain people that have been 454 00:21:47,800 --> 00:21:50,639 Speaker 1: given like a genius level of talent and he is 455 00:21:50,800 --> 00:21:53,399 Speaker 1: one of those. And so to hold yourself up to 456 00:21:53,440 --> 00:21:55,480 Speaker 1: that standard. To think that you're gonna invest like Warrm 457 00:21:55,480 --> 00:21:59,160 Speaker 1: Buffett or play basketball like Lebron James, they're just both 458 00:21:59,480 --> 00:22:01,640 Speaker 1: crazy things to think, or to think like your friend 459 00:22:01,680 --> 00:22:04,080 Speaker 1: who knows a guy could do that? Yeah, that's not 460 00:22:04,080 --> 00:22:06,919 Speaker 1: gonna pan out either, right, Yeah not man. My sister's 461 00:22:06,960 --> 00:22:10,760 Speaker 1: college roommate, her husband, he he knows what's up, and 462 00:22:10,800 --> 00:22:13,119 Speaker 1: he's gonna it's not gonna happen. It's gonna make me 463 00:22:13,119 --> 00:22:15,200 Speaker 1: good money in the market, right, It's not gonna pan out. 464 00:22:15,560 --> 00:22:17,160 Speaker 1: So it's cool about that story though, is that it's 465 00:22:17,160 --> 00:22:19,639 Speaker 1: been ten years now. That started in oh seven and 466 00:22:19,680 --> 00:22:22,640 Speaker 1: it wrapped up in seventeen and just earlier this year, 467 00:22:22,720 --> 00:22:26,520 Speaker 1: Warm Buffet basically, you know, release the results of that, 468 00:22:26,840 --> 00:22:29,360 Speaker 1: and the range for the hedge fund guys was between 469 00:22:29,960 --> 00:22:33,520 Speaker 1: point three percent to six and a half percent, so 470 00:22:33,560 --> 00:22:35,359 Speaker 1: all throughout there, I don't know what the actual average was. 471 00:22:35,400 --> 00:22:37,680 Speaker 1: I guess around three some three something right there in 472 00:22:37,720 --> 00:22:40,560 Speaker 1: the middle versus Warm Buffet's rate of return which was 473 00:22:40,680 --> 00:22:43,040 Speaker 1: eight and a half percent over the past ten years. 474 00:22:43,040 --> 00:22:45,639 Speaker 1: Man keeping it simple, not doing anything, setting it, and 475 00:22:45,680 --> 00:22:49,760 Speaker 1: forgetting it amazing literally zero costs. And he totally smoked him, 476 00:22:49,800 --> 00:22:52,600 Speaker 1: you know, like I just love that. It's so awesome 477 00:22:52,960 --> 00:22:56,480 Speaker 1: and so on that note, Uh, your financial advisor, your friends, 478 00:22:56,560 --> 00:22:58,600 Speaker 1: dude that knows the dude, they're not going to beat 479 00:22:58,640 --> 00:23:00,720 Speaker 1: the market and they're not going to be able to 480 00:23:00,720 --> 00:23:02,880 Speaker 1: give you the returns that they say they can they 481 00:23:02,880 --> 00:23:05,919 Speaker 1: talk a big game, but go warm buffet style. And 482 00:23:05,960 --> 00:23:09,040 Speaker 1: what is warm Buffett emphasized over everything else? Well, it's 483 00:23:09,040 --> 00:23:12,520 Speaker 1: really two things. It's high diversification and low fees. And 484 00:23:12,640 --> 00:23:14,880 Speaker 1: morning Star came out with the survey just a few 485 00:23:14,920 --> 00:23:19,320 Speaker 1: years back, and ultimately they said that fees were the 486 00:23:19,359 --> 00:23:22,239 Speaker 1: most reliable predictor of being in a good fund or not. 487 00:23:22,640 --> 00:23:25,280 Speaker 1: And so you're going to have more money over time 488 00:23:25,320 --> 00:23:27,959 Speaker 1: if you're invested in a low fee fund then if 489 00:23:27,960 --> 00:23:31,240 Speaker 1: you're invested in a fund with high fees. What's funny 490 00:23:31,240 --> 00:23:32,840 Speaker 1: about that? Though? I feel like a lot of times, 491 00:23:32,920 --> 00:23:35,000 Speaker 1: like immediately when I heard that, I started thinking, oh, 492 00:23:35,080 --> 00:23:37,120 Speaker 1: you want to get like the fancy funds that are 493 00:23:37,280 --> 00:23:39,320 Speaker 1: kind of expensive, because that's where you're gonna see the return. 494 00:23:39,440 --> 00:23:41,840 Speaker 1: But like, no, like that's the difference is that the 495 00:23:41,880 --> 00:23:44,520 Speaker 1: return is basically going to be the same, assuming they're 496 00:23:44,560 --> 00:23:47,119 Speaker 1: invested in the same thing. Uh, the difference is on 497 00:23:47,160 --> 00:23:49,840 Speaker 1: the sort of the bottom end the expenses associated with 498 00:23:49,880 --> 00:23:51,800 Speaker 1: those funds. You want to get a fund with very 499 00:23:51,880 --> 00:23:56,160 Speaker 1: little expenses and it's gonna perform better than an equivalent 500 00:23:56,160 --> 00:23:59,280 Speaker 1: fund because of the expense ratio. And so even that 501 00:23:59,400 --> 00:24:02,360 Speaker 1: one person in which is gonna be typical. That's when 502 00:24:02,359 --> 00:24:04,679 Speaker 1: you look up the stats for how much financial advisors 503 00:24:04,760 --> 00:24:07,359 Speaker 1: charge for their no how it's gonna be one just 504 00:24:07,480 --> 00:24:11,600 Speaker 1: overright percent, right around one percent annually on the assets 505 00:24:11,640 --> 00:24:16,080 Speaker 1: that they're managing, exactly, And so that one percent it 506 00:24:16,119 --> 00:24:18,520 Speaker 1: doesn't really sound like that much because in most areas 507 00:24:18,600 --> 00:24:22,520 Speaker 1: of our lives, one percent is almost nothing, right, uh, 508 00:24:22,560 --> 00:24:25,040 Speaker 1: one percent? Tip? What's wrong with you? Man? Get out 509 00:24:25,040 --> 00:24:29,560 Speaker 1: of here, right? One percent means very little nothing. But 510 00:24:29,560 --> 00:24:31,800 Speaker 1: but when it comes to the magic of compound interest 511 00:24:32,080 --> 00:24:34,520 Speaker 1: and how that money stacks up over time, that one 512 00:24:34,560 --> 00:24:37,439 Speaker 1: percent is actually this amazingly huge number that you have 513 00:24:37,480 --> 00:24:40,280 Speaker 1: to be super concerned about. And so one of the 514 00:24:40,320 --> 00:24:44,320 Speaker 1: main reasons to forego seeing a financial advisor and figuring 515 00:24:44,359 --> 00:24:46,560 Speaker 1: out how to do it yourself is that your returns 516 00:24:46,680 --> 00:24:50,639 Speaker 1: over time are actually crushed by paying that one percent 517 00:24:50,720 --> 00:24:53,800 Speaker 1: to a person, as opposed to taking on this initiative 518 00:24:53,840 --> 00:24:56,520 Speaker 1: yourself and figuring out how to invest your own money. 519 00:24:56,680 --> 00:24:58,480 Speaker 1: All right, Matt, but I guess we have to say, 520 00:24:58,560 --> 00:25:02,359 Speaker 1: if you really really feel like you need a hand holding, 521 00:25:02,440 --> 00:25:04,919 Speaker 1: if you really need some help with your investments and 522 00:25:04,960 --> 00:25:07,840 Speaker 1: you don't feel comfortable going it alone, well, now more 523 00:25:07,880 --> 00:25:13,240 Speaker 1: than ever, we've got access to software, software technology, and basically, yeah, 524 00:25:13,280 --> 00:25:15,240 Speaker 1: they can make a huge difference and help you out 525 00:25:15,680 --> 00:25:17,879 Speaker 1: avoid some of those high fees like we're just talking about, 526 00:25:18,200 --> 00:25:21,199 Speaker 1: but still help you feel comfortable with your choices. Yea man, 527 00:25:21,200 --> 00:25:23,479 Speaker 1: there's a lot of robo advisors now, is what kind 528 00:25:23,480 --> 00:25:25,280 Speaker 1: of what basically what they're called. They're just kind of 529 00:25:25,320 --> 00:25:28,760 Speaker 1: newer companies that have the algorithms and all the formulas 530 00:25:28,800 --> 00:25:31,480 Speaker 1: worked out for you, and they still take a percentage. 531 00:25:31,520 --> 00:25:33,280 Speaker 1: It's just not nearly as high as what you would 532 00:25:33,280 --> 00:25:37,719 Speaker 1: see with a human traditional financial advisor. So, like we 533 00:25:37,720 --> 00:25:40,000 Speaker 1: were saying earlier, typically you're looking at a one per 534 00:25:40,040 --> 00:25:43,879 Speaker 1: cent fee with a traditional human financial advisor. With a 535 00:25:43,920 --> 00:25:46,320 Speaker 1: lot of these robo advisors, you're looking at like around 536 00:25:46,440 --> 00:25:49,280 Speaker 1: point to five, right, Yeah, And so like better Mint 537 00:25:49,560 --> 00:25:52,639 Speaker 1: and wealth Front, So better Mint dot com and wealth 538 00:25:52,720 --> 00:25:55,399 Speaker 1: Front dot com they're kind of two of the major 539 00:25:55,440 --> 00:25:57,840 Speaker 1: players in that space, and they both take that quarter 540 00:25:57,880 --> 00:26:01,600 Speaker 1: of a percentage fee and Betterment has a premium model 541 00:26:01,680 --> 00:26:04,560 Speaker 1: that's point four percent, and that involves getting to talk 542 00:26:04,600 --> 00:26:06,879 Speaker 1: to a human about some of these financial questions that 543 00:26:06,960 --> 00:26:09,439 Speaker 1: come up that you have. Um when it comes to 544 00:26:09,560 --> 00:26:12,359 Speaker 1: planning for the future, or how to structure your investments 545 00:26:12,520 --> 00:26:14,919 Speaker 1: and create an optimal tax strategy. So if you have 546 00:26:15,000 --> 00:26:18,399 Speaker 1: questions like that, you can join betterment premium, But ultimately 547 00:26:18,480 --> 00:26:21,360 Speaker 1: those kind of options are going to be far less 548 00:26:21,400 --> 00:26:23,960 Speaker 1: damaging to your returns. Over time, you'll have a lot 549 00:26:24,000 --> 00:26:26,400 Speaker 1: more wealth in retirement and you feel a little more 550 00:26:26,400 --> 00:26:29,719 Speaker 1: confident about the investing choices that you're making. Going with 551 00:26:29,760 --> 00:26:33,439 Speaker 1: a robo advisor as opposed to paying one percent or 552 00:26:33,520 --> 00:26:36,359 Speaker 1: more of your assets to Joe blow down the block 553 00:26:36,760 --> 00:26:39,520 Speaker 1: to walk you through it. Yeah, and there are actually 554 00:26:39,560 --> 00:26:42,400 Speaker 1: some new lower cost options if you want to have 555 00:26:42,480 --> 00:26:46,920 Speaker 1: somebody h like an actual human being looking over your investments. Yeah, 556 00:26:46,960 --> 00:26:50,000 Speaker 1: and we said that ultimately the best way if you're 557 00:26:50,040 --> 00:26:52,400 Speaker 1: going to have a financial advisor to go about it 558 00:26:52,440 --> 00:26:54,480 Speaker 1: is to pay an hourly rate or an annual fee, 559 00:26:54,760 --> 00:26:57,560 Speaker 1: not a percentage of your assets. It's a much more 560 00:26:57,600 --> 00:27:00,720 Speaker 1: straightforward arrangement, and you know that the advice that you're 561 00:27:00,760 --> 00:27:03,359 Speaker 1: getting is unbiased, as opposed to going into a model 562 00:27:03,440 --> 00:27:07,359 Speaker 1: where that advisor takes a commission or a bounty for 563 00:27:07,440 --> 00:27:11,960 Speaker 1: selling you certain products. And my favorite service that I've 564 00:27:12,000 --> 00:27:15,080 Speaker 1: seen working on this model is a service called Grove 565 00:27:15,400 --> 00:27:17,520 Speaker 1: and you can check it out at the website, Hello 566 00:27:17,600 --> 00:27:21,680 Speaker 1: Grove dot com. It's six hundred dollars for a year. 567 00:27:21,720 --> 00:27:24,760 Speaker 1: Because Grove is actually more of a tech company than 568 00:27:24,840 --> 00:27:28,600 Speaker 1: they are just a financial service company. But they've really 569 00:27:28,640 --> 00:27:31,359 Speaker 1: figured out a way to make this model gel perfectly, 570 00:27:31,760 --> 00:27:33,879 Speaker 1: and so they put all of your information kind of 571 00:27:33,920 --> 00:27:37,040 Speaker 1: into a back end computer, but there's a financial advisor 572 00:27:37,119 --> 00:27:39,760 Speaker 1: that works with you to lay out a financial plan 573 00:27:40,119 --> 00:27:42,239 Speaker 1: and help you figure out where best to allocate your 574 00:27:42,240 --> 00:27:45,200 Speaker 1: money for only six dollars a year. It's really incredible. 575 00:27:45,240 --> 00:27:47,600 Speaker 1: I love what they're doing, and I think anybody that 576 00:27:47,800 --> 00:27:50,879 Speaker 1: feels pretty uncertain and really wants the advice of a 577 00:27:51,080 --> 00:27:54,600 Speaker 1: of a professional, something like Grove is this perfect happy 578 00:27:54,640 --> 00:27:58,399 Speaker 1: medium for folks that wants some of that personal interaction 579 00:27:58,920 --> 00:28:01,919 Speaker 1: but don't want to pay the price tag that normally 580 00:28:01,920 --> 00:28:04,439 Speaker 1: comes associated with that. And you also avoid some of 581 00:28:04,440 --> 00:28:08,120 Speaker 1: the pitfalls that come with meeting with a financial advisor 582 00:28:08,200 --> 00:28:10,720 Speaker 1: that's recommended to you by a friend of a friend 583 00:28:11,119 --> 00:28:13,520 Speaker 1: who might not be looking out for your best interest. Yeah, 584 00:28:13,520 --> 00:28:15,679 Speaker 1: and I also saw too that Vanguard now has this 585 00:28:15,760 --> 00:28:19,440 Speaker 1: thing called Vanguard Personal Advisors, and they actually take point 586 00:28:19,520 --> 00:28:22,199 Speaker 1: three percent annually of assets manage. And again that kind 587 00:28:22,240 --> 00:28:24,600 Speaker 1: of goes back to the percentage of your total portfolio, 588 00:28:24,680 --> 00:28:26,359 Speaker 1: which it kind of doesn't feel great because it's like, 589 00:28:26,480 --> 00:28:28,159 Speaker 1: I don't want to pay more more money if I 590 00:28:28,200 --> 00:28:30,680 Speaker 1: actually have more money. But even still when you're looking 591 00:28:30,720 --> 00:28:33,639 Speaker 1: at it, that's still way way more affordable than a 592 00:28:33,680 --> 00:28:37,280 Speaker 1: traditional financial advisor. Yea. And so if you have questions, 593 00:28:37,320 --> 00:28:39,600 Speaker 1: if you want to talk to a human, if you're 594 00:28:39,800 --> 00:28:42,760 Speaker 1: nervous about the state of your portfolio or where your 595 00:28:42,880 --> 00:28:45,160 Speaker 1: what your money is invested in, you know, a service 596 00:28:45,200 --> 00:28:48,840 Speaker 1: like Grove or Vanguard's personal advisors might be worth it 597 00:28:48,880 --> 00:28:51,120 Speaker 1: to you because they're far lower cost than what the 598 00:28:51,160 --> 00:28:54,560 Speaker 1: industry averages. But you're still talking to a fiduciary, which 599 00:28:54,600 --> 00:28:56,760 Speaker 1: means that the person that you're speaking to has your 600 00:28:56,800 --> 00:28:59,280 Speaker 1: best interest in mind. Yeah, man, And I think another 601 00:28:59,320 --> 00:29:02,000 Speaker 1: approach to this, uh, you know, like if you think 602 00:29:02,080 --> 00:29:04,800 Speaker 1: that you need that sort of extract boost of confidence, 603 00:29:04,840 --> 00:29:06,400 Speaker 1: like you you're going to agree to go ahead and 604 00:29:06,440 --> 00:29:09,480 Speaker 1: pay h do go with some of the lower cost services, 605 00:29:09,520 --> 00:29:12,280 Speaker 1: but go into it too with the mindset of knowing 606 00:29:12,320 --> 00:29:14,840 Speaker 1: that you're gonna learn, Like, don't go into this thinking, Okay, 607 00:29:14,880 --> 00:29:16,560 Speaker 1: I'm gonna go in now, and this is just something 608 00:29:16,600 --> 00:29:20,200 Speaker 1: I'm now going to pay every single year forever. Go 609 00:29:20,280 --> 00:29:22,920 Speaker 1: into it, maybe just for a year or even less 610 00:29:22,920 --> 00:29:24,600 Speaker 1: than that. Man, just like for a couple of months, 611 00:29:24,640 --> 00:29:27,800 Speaker 1: even if you can get in a FaceTime with somebody 612 00:29:27,920 --> 00:29:29,880 Speaker 1: to where you can learn, to where you can figure 613 00:29:29,920 --> 00:29:31,960 Speaker 1: out why it is that they're doing what they're doing 614 00:29:32,120 --> 00:29:34,720 Speaker 1: and learn sort of the reason and the why behind 615 00:29:34,880 --> 00:29:36,840 Speaker 1: what it is that that they're doing. Then you gain 616 00:29:36,880 --> 00:29:38,959 Speaker 1: all that knowledge yourself, and then you can basically do 617 00:29:39,000 --> 00:29:42,560 Speaker 1: that forever without having to pay that fee. I mean, 618 00:29:42,600 --> 00:29:46,520 Speaker 1: the goal is to learn, and regardless of where your 619 00:29:46,520 --> 00:29:48,440 Speaker 1: money is being invested, you want to be able to 620 00:29:48,480 --> 00:29:51,239 Speaker 1: have an understanding of where your money is. And if 621 00:29:51,280 --> 00:29:54,040 Speaker 1: you can't explain where your money is and how it's 622 00:29:54,080 --> 00:29:57,440 Speaker 1: being invested, that's just not a great position to be in. Yeah, 623 00:29:57,440 --> 00:29:59,960 Speaker 1: I agree, if you're going to visit a financial advisor, 624 00:30:00,320 --> 00:30:02,200 Speaker 1: you need to go into it with a mindset like that, 625 00:30:02,360 --> 00:30:06,040 Speaker 1: because ultimately, a financial advisor is not going to magically 626 00:30:06,120 --> 00:30:09,160 Speaker 1: find more money in your budget every month. They don't 627 00:30:09,160 --> 00:30:12,080 Speaker 1: have a magic pill to help fund your kids college 628 00:30:12,440 --> 00:30:15,479 Speaker 1: and also ensure that you're able to retire exactly when 629 00:30:15,520 --> 00:30:17,440 Speaker 1: you want to. A lot of these things come down 630 00:30:17,440 --> 00:30:21,880 Speaker 1: to saving more, spending less, allocating more of your money 631 00:30:21,920 --> 00:30:25,160 Speaker 1: every month towards your retirement accounts, and continuing to do 632 00:30:25,200 --> 00:30:27,240 Speaker 1: that year after year. And these are the kind of 633 00:30:27,240 --> 00:30:30,040 Speaker 1: things that you can learn yourself. And like we said earlier, 634 00:30:30,080 --> 00:30:33,080 Speaker 1: the financial services industry wants to make it sound like 635 00:30:33,120 --> 00:30:35,840 Speaker 1: it's this really difficult thing that only people with fancy 636 00:30:35,920 --> 00:30:39,040 Speaker 1: educations and suits know how to do, right, But it's 637 00:30:39,040 --> 00:30:41,520 Speaker 1: just not. But that's just not the case. It's not 638 00:30:41,560 --> 00:30:44,360 Speaker 1: that complicated, and especially in this day and age, there's 639 00:30:44,360 --> 00:30:46,720 Speaker 1: so many great people teaching these things for free on 640 00:30:46,760 --> 00:30:52,000 Speaker 1: the internet or podcasts. That's us. When it comes down 641 00:30:52,040 --> 00:30:55,240 Speaker 1: to it, managing your finances is not as difficult as 642 00:30:55,280 --> 00:30:58,160 Speaker 1: the financial services industry wants you to think it is. 643 00:30:58,600 --> 00:31:02,440 Speaker 1: Do these three things, invest more of your money, invest 644 00:31:02,560 --> 00:31:05,760 Speaker 1: your money in low cost mutual funds, and be well diversified. 645 00:31:06,160 --> 00:31:09,800 Speaker 1: If you do those three things, you've empowered yourself to 646 00:31:09,920 --> 00:31:12,120 Speaker 1: take control of your own money, and you can skip 647 00:31:12,480 --> 00:31:15,640 Speaker 1: hiring a financial advisor. You'll be golden right, You'll be 648 00:31:15,640 --> 00:31:17,960 Speaker 1: able to save more, and in fact, you'll do better 649 00:31:18,240 --> 00:31:21,000 Speaker 1: than you would have had you hired an expensive financial 650 00:31:21,040 --> 00:31:23,480 Speaker 1: advisor because you'll be saving that money and sticking that 651 00:31:23,520 --> 00:31:25,720 Speaker 1: money into the investments as well. You'll be set and 652 00:31:25,800 --> 00:31:28,040 Speaker 1: ultimately that's one of the two greatest pitfalls that you 653 00:31:28,160 --> 00:31:31,120 Speaker 1: face in hiring a financial planner. It's either putting money 654 00:31:31,200 --> 00:31:34,520 Speaker 1: towards the service and therefore not towards your investments, which 655 00:31:34,560 --> 00:31:37,680 Speaker 1: will compound over time, or there's danger in putting money 656 00:31:37,720 --> 00:31:40,840 Speaker 1: with someone who has their own best interests in mind. 657 00:31:41,360 --> 00:31:44,200 Speaker 1: Is putting your money in things that are high fee, 658 00:31:44,600 --> 00:31:47,920 Speaker 1: high commission, and terrible for you. All right, Maddie, back 659 00:31:47,920 --> 00:31:50,680 Speaker 1: to the beer buddy. I mean, I'm just reminded of 660 00:31:50,680 --> 00:31:52,840 Speaker 1: how delicious this beer is and why I liked it 661 00:31:52,880 --> 00:31:54,920 Speaker 1: so much the very first time I had it. You know, 662 00:31:54,960 --> 00:31:59,800 Speaker 1: it's just so so solid, that clear golden ale. This 663 00:31:59,880 --> 00:32:01,160 Speaker 1: is like the kind of beer I want to have 664 00:32:01,200 --> 00:32:04,840 Speaker 1: when I'm like eating pizza, like a good pizza, you know, 665 00:32:04,960 --> 00:32:08,480 Speaker 1: like I would say, it's it's simple and elegant, like 666 00:32:08,600 --> 00:32:12,640 Speaker 1: your mom. I had to go there. Oh, I think 667 00:32:12,720 --> 00:32:14,600 Speaker 1: my mom is a lot more complicated than you realize. Man, 668 00:32:14,640 --> 00:32:19,080 Speaker 1: you need to get to know the real mama. Poor 669 00:32:19,120 --> 00:32:23,280 Speaker 1: not poor, but yeah, thanks again to al Gash for 670 00:32:23,280 --> 00:32:26,440 Speaker 1: sending this beer over. Absolutely delicious, really fun to revisit 671 00:32:26,480 --> 00:32:29,560 Speaker 1: something you haven't we haven't had in a really long time. Yeah. 672 00:32:29,600 --> 00:32:31,280 Speaker 1: And now that they're yeah, getting released in these and 673 00:32:31,320 --> 00:32:33,560 Speaker 1: twelve ounce bottles, this is something I'm gonna be way 674 00:32:33,600 --> 00:32:36,000 Speaker 1: more prone to just pick up sort of casually versus 675 00:32:36,040 --> 00:32:38,480 Speaker 1: going in and getting a huge bottle feeling like you 676 00:32:38,560 --> 00:32:40,600 Speaker 1: gotta go for it. So let's go ahead and do 677 00:32:40,640 --> 00:32:44,320 Speaker 1: a quickly recapsule. Do you need a financial advisor the 678 00:32:44,400 --> 00:32:49,000 Speaker 1: quick cancer No, Yeah, because ultimately retirement investing is simpler 679 00:32:49,040 --> 00:32:51,560 Speaker 1: than you think. And check out episode nine of our 680 00:32:51,600 --> 00:32:55,000 Speaker 1: podcast where we go through the basics of how to 681 00:32:55,160 --> 00:32:58,200 Speaker 1: intelligently invest your money and you another reason you want 682 00:32:58,200 --> 00:33:00,840 Speaker 1: to avoid going with the financial visor is because they 683 00:33:00,840 --> 00:33:04,080 Speaker 1: can be crazy expensive. They can take a huge chunk 684 00:33:04,160 --> 00:33:06,440 Speaker 1: out of your potential earnings and what could be going 685 00:33:06,840 --> 00:33:09,680 Speaker 1: back into your portfolio to reinvest where you would see 686 00:33:09,680 --> 00:33:12,200 Speaker 1: that compound growth year after year. Yeah, and that makes 687 00:33:12,200 --> 00:33:15,320 Speaker 1: such a huge difference over time. Like we mentioned briefly, 688 00:33:15,640 --> 00:33:18,480 Speaker 1: short term not that big of a deal. Long term 689 00:33:18,840 --> 00:33:22,160 Speaker 1: huge deal, one percent seems like nothing, but in reality 690 00:33:22,440 --> 00:33:24,239 Speaker 1: when when it plays out over the long term, one 691 00:33:24,320 --> 00:33:28,800 Speaker 1: percent is massive. And then ultimately financial advisors don't always 692 00:33:28,880 --> 00:33:30,920 Speaker 1: point you in the right direction, so it can be 693 00:33:30,960 --> 00:33:33,720 Speaker 1: even more costly than that percentage fee that you think 694 00:33:33,760 --> 00:33:36,200 Speaker 1: you're paying to them. They might be steering you into 695 00:33:36,280 --> 00:33:39,720 Speaker 1: funds that aren't right for you, or selling you financial 696 00:33:39,720 --> 00:33:44,320 Speaker 1: services that ultimately pad their own pockets and don't serve 697 00:33:44,360 --> 00:33:46,720 Speaker 1: you well, which is why if you are going to 698 00:33:46,840 --> 00:33:49,040 Speaker 1: go with a financial advisor, you need to make sure 699 00:33:49,080 --> 00:33:52,480 Speaker 1: to find out that they are a fiduciary, which means 700 00:33:52,520 --> 00:33:54,920 Speaker 1: that they have to and they are obligated to put 701 00:33:54,960 --> 00:33:58,280 Speaker 1: your financial interests ahead of their own. They have to 702 00:33:58,280 --> 00:34:01,320 Speaker 1: do what's best for you, Okay, Joe, So then you 703 00:34:01,360 --> 00:34:03,440 Speaker 1: know what's next. Like we've basically gone through all the 704 00:34:03,440 --> 00:34:06,680 Speaker 1: different reasons why you shouldn't have a financial advisor, we 705 00:34:06,760 --> 00:34:09,560 Speaker 1: just listed them. So instead a few things on what 706 00:34:09,640 --> 00:34:12,840 Speaker 1: you do need to do now, the first being invest more. 707 00:34:13,320 --> 00:34:15,040 Speaker 1: At the very least, you need to be getting a 708 00:34:15,120 --> 00:34:17,640 Speaker 1: match if you're offered a match three or four O 709 00:34:17,719 --> 00:34:20,600 Speaker 1: one k at work, but it's definitely worth looking at 710 00:34:20,680 --> 00:34:22,839 Speaker 1: to see how much you're investing, and what we're talking 711 00:34:22,840 --> 00:34:25,920 Speaker 1: about is basically your savings rate. How much of your 712 00:34:25,960 --> 00:34:29,720 Speaker 1: actual paycheck are you putting towards investments. Yea. So consider 713 00:34:29,800 --> 00:34:32,840 Speaker 1: opening a rath I array on top of that, or 714 00:34:32,960 --> 00:34:36,200 Speaker 1: at minimum up your savings rate in your four oh 715 00:34:36,200 --> 00:34:38,920 Speaker 1: one K through work one per cent every six months. 716 00:34:39,360 --> 00:34:41,920 Speaker 1: That will ensure that you're investing more. So, instead of 717 00:34:42,000 --> 00:34:45,560 Speaker 1: paying money to a financial advisor, just up the rate 718 00:34:45,600 --> 00:34:48,200 Speaker 1: at which you are investing your money, Yeah, Joel. The 719 00:34:48,239 --> 00:34:51,160 Speaker 1: other aspect of that is to invest make sure you're 720 00:34:51,160 --> 00:34:55,359 Speaker 1: investing in low cost, well diversified funds, and the best 721 00:34:55,400 --> 00:34:58,200 Speaker 1: way to get there is to consider opening a retirement 722 00:34:58,200 --> 00:35:01,520 Speaker 1: account with a company like Vanguard, which is our personal favorite, 723 00:35:01,920 --> 00:35:04,600 Speaker 1: or a company like Schwab or Fidelity, who also have 724 00:35:04,880 --> 00:35:09,120 Speaker 1: awesome low cost index funds. Yeah. Mat So, Ultimately, the 725 00:35:09,160 --> 00:35:11,640 Speaker 1: financial services industry wants to make you think that this 726 00:35:11,760 --> 00:35:14,359 Speaker 1: is rocket science and it's way more difficult than it is, 727 00:35:14,600 --> 00:35:17,520 Speaker 1: and that if you even want to retire someday, you 728 00:35:17,520 --> 00:35:19,799 Speaker 1: have to have a financial advisor on your side. And 729 00:35:19,840 --> 00:35:24,640 Speaker 1: we're here to say, no, that's crazy. You're smart, you 730 00:35:24,680 --> 00:35:27,560 Speaker 1: can figure out this investing thing. And certainly there are 731 00:35:27,600 --> 00:35:30,960 Speaker 1: a lot more things that financial advisors offer, and we'll 732 00:35:31,000 --> 00:35:34,120 Speaker 1: get into more of those in upcoming episodes, but specifically 733 00:35:34,160 --> 00:35:36,960 Speaker 1: in regards to investing, which is the main reason that 734 00:35:36,960 --> 00:35:39,719 Speaker 1: people seek out a financial advisor because they don't think 735 00:35:39,760 --> 00:35:42,160 Speaker 1: they know how to handle their investments. And so we're 736 00:35:42,200 --> 00:35:45,960 Speaker 1: saying no, no, no, no, scrap the financial advisor. You 737 00:35:46,000 --> 00:35:48,840 Speaker 1: don't need them, because investing for your retirement, which is 738 00:35:48,880 --> 00:35:51,680 Speaker 1: the main reason that people go seek a financial advisor 739 00:35:51,719 --> 00:35:55,319 Speaker 1: in the first place, is actually really simple. Yeah. Man, gosh, 740 00:35:55,360 --> 00:35:58,080 Speaker 1: there's just so much fear and that that every financial 741 00:35:58,080 --> 00:36:00,879 Speaker 1: planner kind of takes this approach right where they're like, oh, 742 00:36:01,120 --> 00:36:03,240 Speaker 1: you know, you need to be fearful of your future 743 00:36:03,280 --> 00:36:04,880 Speaker 1: and what the future is going to hold for you 744 00:36:04,960 --> 00:36:07,360 Speaker 1: and how that's going to affect your family. But it 745 00:36:07,440 --> 00:36:10,200 Speaker 1: seems like that's sort of that can be an underlying 746 00:36:10,280 --> 00:36:13,560 Speaker 1: sort of tone. Yeah, that's a tactic that gets used 747 00:36:14,280 --> 00:36:17,319 Speaker 1: to cause worry in your life, and we're here to 748 00:36:17,360 --> 00:36:19,839 Speaker 1: say no, no, no no, no, be confident. But I hope 749 00:36:19,960 --> 00:36:22,080 Speaker 1: at the end of this episode you feel empowered to 750 00:36:22,160 --> 00:36:25,640 Speaker 1: take on this responsibility yourself and hopefully you've realized that 751 00:36:25,680 --> 00:36:27,880 Speaker 1: it's actually a lot easier than you thought it was. 752 00:36:28,320 --> 00:36:30,960 Speaker 1: Thanks everyone for listening. Our home on the web is 753 00:36:31,040 --> 00:36:33,480 Speaker 1: how to Money dot Com. We'll have shown us up 754 00:36:33,520 --> 00:36:35,719 Speaker 1: there for this episode, and be sure to review and 755 00:36:35,760 --> 00:36:38,439 Speaker 1: subscribe to us if you could, on Apple Podcasts or 756 00:36:38,440 --> 00:36:41,320 Speaker 1: wherever it is that you get your podcasts. So until 757 00:36:41,440 --> 00:36:44,960 Speaker 1: next time, thanks for listening. Guys, best Friends Out, Best 758 00:36:44,960 --> 00:36:45,479 Speaker 1: Friends Out,