Financial Wise, 1/7

Financial Wise Radio
Sunday, January 7th

Financial Wise, for January 7.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Broadcasting from the top thirteen seven these studios you're listening tell financial wise with your host and Suzanne Blackburn. How did you choose any retirement financial planner. As a fiduciary Blackburn is required to work in your best interest helping you to own retirement in today's economy. So stay tuned as financial lies brings you an informative approach to your retirement each and every week. And now your host Suzanne Blackburn. Welcome to financial wise I'm Suzanne Blackburn I'm so glad you're with me this weekend. I wanna give you the secret sauce the day I'm a fiduciary. Independent financial planner owner of capstar financial. And what we do it kept star financial is we help people with retirement assets. And so many of you guys coming in right when you're about to retire and you really have absolutely. No clue. About how I'm paid. Howell what commissions look like what these look like how they asked me the right questions. And so I'm gonna give you. This secret sauce today because I want you to be informed. On how to choose. The right professional for you there are so many. Really just bad people out there that are not. Focused on retirement. Their focus on the accumulation of assets the hot dot in the market. Buy and hold. Relative to the market let's go for and that's great. If here's thirty. But you know what so many feel they listen and they show right now are within ten years of retiring. If you're not you can turn a bit of the volume down a little bit but I'll tell you fury and if you're within ten years of retiring. I want you don't pay attention. Because so many give you information that you will not hear on any other program. So number one. Yet in my phone numbers 5122159030. Keep got any questions. About this topic and my offered in days I'm going to send you by email. Number one way is a funny template professionals get paid and number two. Questions to ask a financial planner. Questions to ask a financial planner. A send that to the first five callers at 5122159. The right financial planner. Now when you're looking for a financial planner retirement it's a very different person than the accumulation face here it is folks number one. When you're looking for someone with a background. In retirement they better know how to time Sosa security. They better know how to help you with Social Security your pensions. Your appeal of in come in retirement you are replacing a paycheck. When you leave work you're gonna replace a paycheck and it's not growth at all cost. The other thing that needs to happen is a very structured approach so that you have a house bill basically a financial houses. A BS says that you concede how that appeal of income happens over thirty years in retirement. We're not gonna go back and recreate. That asset class you're gonna have to. Preserve that money. For the rest of your life. So do you hit the wrong financial guy or girl you might lose assets in the market and then guess what you're right back to work. And if if you wanna make sure that you don't lose it in the market and you've got to talk to somebody that is a fiduciary. Summoned to tell you the difference. A fiduciary is an investment advisor. They offer the best advice taking into account the needs of the individual client. They're generally paid a fee quarterly. Calculated as a percentage of the assets under advisement. They do not make one single recommendation. Until they have looked at every thing you have the and they've done a very thorough discovery. Of what's going on which you. Okay this part of this radio show I cannot stresses how important. It's like go to a doctor and you walk in the door they immediately start prescribing medicine. That never happens because that's not what they do you have to go through an exam blood work blood pressure. Take your temp mr. temperature find an amateur way which I hate that part. All those things have to happen before they die no issue. Well guess what if you're gonna go see a financial planner with the retirement. Emphasis they need to be a fiduciary. They need to treat you like the patient and doctor relationship there consultative. Because the difference is if you're sitting down with someone and they will immediately go into trying to sell you offer products for sale. Range and companies and mutual funds and everything is commission may start insurance products annuities. Let me tell you something folks you're gonna get sold something that does that work is a comprehensive plan they don't even know who you are. I I cannot stress how important this portion has many insurance professionals that only have an insurance license. They're selling selling selling. You want something someone that's gonna act as a consultant. To you they offered the best advice. And they put their license on the line. That is the number one you need to ask that question are you fiduciary that's the first question you ask if they're not a fiduciary. Get out of there. A man and it's just that simple the second question you need to ask is how old do you get paid. Now do you want this I guess at what I'm offering today is questions to ask the financial professional so if you or interest is and knowing. How to ask the right questions. I've got a list of questions on gave you to the first five callers that call me at 512. 2159. B 30 am not gonna go through every question on the show in honor of time but when we get back I'm gonna go into. The ways that a financial professional. Gets paid. Larry talked about the fiduciary standard vs the suitability standard now how will give the brokerage world. Props for is that they dude dude suitability they need to know what's your risk tolerances. So that'll be the question they ask what it you know how do you handle risk but that's pretty not tip guys that fit then you get sold some stuff. So if you wanna make sure that you have a comprehensive. Plan from this from start to finish. From the first five years or retired to the next ten years or retirement twenty years and beyond. You need to talk to someone that specializes. In retirement. That has all licenses. Not just to brokerage license are not just an insurance license. And they can do all of that I personally held a broker's license I holed a insurance producers license animal mortgage professional. Because I recognize that one of the main assets that you have is one of your top debts is your home. That is a big conversation. And because I'm license I can do that so if you want that list like I said you need to call me. 5122159030. And it's the questions to ask. Before. You hire your financial professional. And remember some few our financial life. And the rest of view. Are otherwise I'm season like I. This is your retirement minute with Suzanne Blackburn composed of financial wise radio helping you to own retirement. Did you know that many financial professionals using cookie cutter approach with your retirement think about it you can be fifty or sixty single or married. Planning on working hard not healthy or not we'll guess what. You get the same plan will not cast our financial we understand that every one is unique and we're going to help you for your dreams like travel hobbies spending time with grandkids will also planned for the unexpected things like storms that hit you. Rising costs of health care so go into retirement with your own personalized roadmap it's what you deserve and I journey that we would like to take with you call capstar financial for your retirement road map today at 5122159030. Or go to capstar financial dot com that's 5122159030. Investment advisory services offered by global financial private capital LLC. Welcome back to a financial lies with euros Suzanne Blackburn. Welcome back to financial wise I'm Suzanne Blackburn I may fiduciary. Independent financial planner. And I'm talking to you right now I'm out ways. To hire a financial professional. I just went through a fiduciary standard vs a suitability standard. And if things are share with you I am a fiduciary and also an independent. Financial planner so why is that important vs working with the big box brokerage house. They do have fiduciary said the big bucks brokerage house but could they beholden to. Who's the boss in the relationship. Are you the Boston the relationship I would think not. Because if they are attached to a farm. The firm. Tells them what to sell what to offer and how to build your portfolio. They're telling you. What they will offer you instead of working collaborative glee which you. Of all carriers all asset classes you need to ask them are they independent. Are are they captive. Are they beholden to the firm or are you do you get to be. The boss. In an independent world you're the boss folks you get to call all the shots and that's what you want. The other thing is you want transparency. Of fees. Transparency. Of fees could not be more important in retirement right now many delisting have. Large swirling case and you know what the fees are you know basically what they're charging you. But let me tell you what you don't know. You have no idea the transaction costs. You don't know if they have twelve B one fees or not you have absolutely no idea what the market impact costs are you I don't even know what I'm talking about. And I'll tell you right now you have no idea. If all those mutual funds you own it they're all doing exactly identically the same thing as the other ones. What I find when you walk in my office and I do a Morningstar report on everything you have before it ever make a recommendation. Is I look. You own Google ten times because you don't ten mutual funds you own apple ten times young Microsoft ten times you own ConocoPhillips and times. How diversified is that. I mean really. Not really diversified. Soak in the fiduciary world. You wanna make sure number one that there are offering best advice to you that they are going to be the best advice. Meaning that they're gonna do know everything about you as a collaborative relationship just like a doctor and a patient. Okay the second thing is you wanna make sure that you are the boss they're not beholden to the firm. It's always a good idea to go to an independent. Financial planner rather than a big bucks brokerage house in you know financial planner. Because that way they're not going to sell used their proprietary product garbage. They're gonna be illegal into the open market and find the best. Available free meal. That's what best practices mean. Today the third thing is you want transparency. Of every single thing you have if it's a mutual fund Elena exactly what's inside that sucker. If it's not if it's a separately managed to catch you can literally see a cap on apple wants and Microsoft wants how many times you need to pay a manager to own it. Ten times is that really a fifth chance. I don't think so. But that's what I see when people walk in my office. So that. Those are questions you want to ask your eyes are now what the offer is today. Is I wanna send the first five callers questions to ask your park your financial professional BP or you hire him or her. So he'll call me right now we will send you this it's of insulin valuable is the secret sauce folks who really ends. And call my office at 5122159030. And I'll give that to you the first five callers need to call me okay. Now the last thing I was gonna talk about. What are the ways that financial professionals get paid. What how do we get paid in order to give you advice or sell you products. So let's talk about that. Many viewers are sitting on a bunch of mutual funds. So mutual funds are sold. In general as a commission based product. Many of you all have through the big bucks brokerage house a swat. And in San swath. Of mutual funds it could be three or four can be fifteen. In their effort to diversify. And I can tell you I will bet dollars to donuts that they're all doing exactly the same thing. But that's a commission based relationship the financial professionals may receive a commission for selling financial services. Such as insurance and real estate. Mutual funds. And the commissions. Are based on that then. They have what's called a shares in BCB shares some of them might they don't do anymore but a and C shares generally. A is the beginning may be that you pay a commission it could be up to 5% upfront. He give my 100000 dollars and you pay five grand and then you hold those assets. Now here's the bad news many of you all don't realize that you paid that 5% commission upfront. And then you also are paying internal fees to the mutual funds two broker as well or to the firm as well. They can all be peeled out in of the analysis. Through Morningstar it's ugly be prepared it's ugly. But I see that every day in my office. So then those advisors are receiving commissions for selling advice and they're also getting your feet as well. So that would be more fee based commission and fee okay. A fee based advisor is someone that it's getting aid as a percentage. Of assets under management. But then other things might have a feat like they're selling the REIT they might charge you 7% up front for that and collect 1% per year. So you need to know what you're paying for and how they're making money. A fee only advisor will charge you a flat hourly rate and it and it all of cart kind of a rate for his our services instead of taking. Compensation from commissions. Or investment transactions those are rare. But usually you'll pay a fee for that now. A lot of independent. Firms such as myself. Our fee based meaning that I'm going to charge 1%. Annually for assets under management and then I'm going to find. The best possible investments for you. Out on the open market and those open market assets might charge another forty basis points or fifty basis points or. Sixty or seventy so all in you might have one point 751. Point 85 of the one point 40. Those are the more traditional. Fee based transactional relationships that do not have a commission. Those are my favorite because. You know exactly. What you're paying for you know exactly what you're holding and you see the positions that are in there and how they are managed. In fact one of my favorite calls and I've just got through making was calling people with tax harvesting algae tax harvesting next next time that. Another shell but tax harvesting allow you to sell things that haven't done so well so you can get the tax write off. Has nothing to do which returns that has absolutely nothing to do with your appeal and then come. It just has to do with. Being able to sell long held assets that maybe haven't performed well over time so we can harvest the tax write offs. OK you can do that if there's not transparency. You can't do that inning mutual fund. So these are things that when you're working with the fiduciary independent advisor. You can sit down and really optimize. Wonderful portfolios. If you want to get this sheet of paper I've got it my hand is called questions to ask a financial professional the first five people. And we'll get that list it's 5122159. 512. 2159. Investor otherwise I'm season like. This is your retirement and with Suzanne Blackburn pose to financial wise radio helping you tell only time. Did you know that the storms we face in life can be the most damaging in retirement think about it when you still working in a major event hit its. Like medical home repairs or a stock market downturns you just go back to work to pay for it but when you're retired from the money you saved. He needs from last the rest of your life. And paper all the un for same storm's -- test or financial we believe in what we call shaking the trees to make sure your retirement plan can weather any storm let us help you find where the gaps may be in New York plant code have such financial today for your shake. They treat. Assessment at 5122159030. Or go to capstar financial dot com that's 5122159. LLC. Welcome back to financial lies with your host and Suzanne Blacksburg. Welcome back to financial wise and season Blackburn and theory 65 financial planner what does that mean you. It means that I'm gonna acting as your best. Today's show is all about how you choose. A retirement financial planner and a recap. This whole show in the segments and they stand with me. Because it's so important that you make good decisions. When you are retiring if you're within ten years or retiring it's time to start shopping. For that person that's going to help you. Many times you wanna ask your friends your family did they use but you also wanna do your own research I'm gonna help. Cut that whole research short by giving you the first five callers. A list of questions. That you wanna ask a financial professional when your hiring them. It's a list that we've can we put together. But we have. You know really honed in because these are things you need to ask are you fiduciary. How do you get paid for services would licenses. Credentials and other certificates do you have. What types of services does YouTube offer do you work for the firmer. Or do you work for me. How do you get paid. In. Good products that are sold insurance products and brokerage products. Risk assets non risk assets Howell is that going to work with me pain you. How often do we meet. OK so I talked about really three or four things in the last two segments it's really he didn't listen Tony might wanna. Go back on the website thirteen 70 AM and and listen to those that I talk specifically about the difference between eighth the dish she airy. Financial planner. And then I just to broker or an insurance guy okay insurance girl on use and you know gender it's anybody just a person okay. The fiduciary standard. Is investment advisor they're gonna work collaborative Lee with few. They before they ever and this is such a key please hear me. They must work collaborative glee which you. And the first meeting needs to be nothing but discovery of you your family your assets which you have what your goals are. Have you thought about what you're gonna do in retirement have you planned. For estate planning long term care planning to market losses. Organizing everything. I mean no long discussions you need to spend at least an hour to an hour fifteen minutes just talking about you. With them if they don't give you that much time get out of there just don't even Stephanie. Because they're not operating as a fiduciary they're not gonna give you the best advice they've already got a cookie cutter approach. And what's gonna happen on the next appointment as a sales pitch so you need to be sure that they are not offering new products. Immediately. If you can it all go with an independent. Advisory firm that's why am independent. Because it's in your best interest to do that I don't have to offer you what someone else told me to sell you. Did you hear that. Really important information. When you meet with me I'm not gonna opry is something that somebody else told me to sell you. Everything will be completely disclosed. The fees the risk how it works you don't sign anything anti understand it. Wow news flash coming you guys understand your statements right now. No one how many of you guys are right now understand what's inside all your mutual funds. That would be no one up also. So what we do it capstar. Is we make sure that you really have knowledge. And and lots of education on. The products and the investment choices that you have. But they're gonna work for thirty years of retirement. If we have a major downturn you know what's gonna happen if they had if we have a long term care stay howling in appealing come differently. Say call my office at 5122159030. To get this list the first five colors. And it's questions to ask financial professionals it's 512. 2159030. The next thing I talked about. Was the wave that financial professionals can paint. Now there's an ugly little secret again here's some secrets cost you don't want change that I'll look up. Secret sauce guys here it is when you work when they big bucks brokerage firm you know who you are. You're working with that brokerage firm with the marble and big names you watch the ads on TV. They have what's called propriety Torre product lines. Proprietary product clients means that if you go to ABC. Mutual fund company you're gonna get ABC mutual funds. Now if they don't offer you those. And they offer you another company's. U wanna ask them right off the bat. Do you get revenue sharing. Revenue sharing you wanna write that down. Because what revenue sharing means is that person sitting in French units offering that company did they get an extra kick back. Little under the table deal. Because they used that particular funder that particular investment or that particular annuity. You need to know those things. And if they are a best practice person another words of their fiduciary they have to bylaw disclose those conflicts of interest because that's what it is guys. That's a conflict of interest. So again call my office 5122159830. Get the questions to ask. Your professional. Professionals your financial professionals and retirement. Now how we get paid isn't the only is it fee based. Or is it come mission only our commission based. If you're working with an insurance professional only just please get up and leave please please do yourself a favor because. You do not want to put your entire. Your entire forum in case or your entire. Retirement assets at all in annuities are what ever they're offering in the insurance world please. You need to have be. The diversification. Of lots of different things. And it's their insurance only they just simply don't have the background the credentials. They don't offer what you need and what you need in retirement here within ten years or retiring. Is retirement helps someone that's gonna help you with so security. Someone that's gonna help you with your pensions someone that's going to help you. Which account email withdraw from land what's the tax peel in here investments. Which account when is one of the most valuable things we do in our office why because I can help you lower your tax bill. I can also detect harvesting. Which no one really does how'd he get paid what your licenses and credentials for services deal. Where he worked for the firm you worked in fifteen. All those things must be acts and you get that from me if you call me. 5122159030. And remember. Some of the your financial life is an investor in the lives and in season. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --