Social Security

Have You Outgrown Your Advisor? (Rebroadcast)

This week, Angela discusses how to determine if you've outgrown your financial advisor. She shares anecdotes and insights to help listeners evaluate their current advisory relationships and understand the importance of holistic financial planning. The episode emphasizes the need for advisors who proactively work with other professionals and offer comprehensive solutions.
Key Takeaways 💡
Communication and holistic advice: An 88-year-old woman was nearly on the verge of running out of money because her advisor wasn't providing adequate communication or a comprehensive financial plan. The advisor was primarily focused on selling investments rather than offering holistic advice tailored to her specific needs, highlighting the importance of finding an advisor who understands your complete financial picture.
Outgrowing your advisor's expertise: An advisor's expertise may become insufficient as your financial situation evolves, even if they are well-intentioned. An advisor in the Form 400 group shared a story about his grandmother, who paid a substantial amount in taxes because her long-time advisor lacked the knowledge to minimize her tax burden, illustrating the need to reassess your advisor's capabilities periodically.
Finding the right advisor fit: Finding the right financial advisor is challenging, as different advisors have varying approaches and specializations. It's crucial to assess whether your current advisor's approach aligns with your needs and whether they can provide comprehensive guidance. The story of Hallie, the dog, and the yellow chair, illustrates how people tend to stick with things that no longer serve them.
Understanding advisor specializations: Different types of advisors, such as CPAs, bankers, insurance agents, and attorneys, have distinct areas of expertise. CPAs excel in taxes and accounting, bankers in banking products, insurance agents in insurance and annuities, and attorneys in law. It's important to recognize these specializations and seek advisors whose expertise aligns with your specific financial needs.
Captive vs. independent advisors: Captive advisors often have quotas to meet, which may influence their recommendations, while independent advisors may still have limitations based on their RIA or broker-dealer. It's important to understand whether an advisor is captive or independent and to consider the potential implications for their advice. Even amazing captive advisors may not be allowed to do a lot of things to help their clients.
Transparency of fees and commissions: Advisors can be paid through fees or commissions, and neither method is inherently bad. Fee-based advisors may be preferable for ongoing management, while commission-based advisors may be suitable for one-time transactions. It's essential to understand how your advisor is compensated to assess potential conflicts of interest and ensure their recommendations align with your best interests.
Proactive and holistic planning: A true advisor should proactively work with you and your other advisors to create a holistic life plan. This includes coordinating with insurance agents, accountants, and attorneys to address various aspects of your financial life, such as family support, charitable gifting, business succession, legacy planning, estate planning, liability issues, debt, tax issues, insurance, and investments.
Considering all available options: An effective advisor should make you aware of all available options, even if they don't have expertise in every area. Most advisors don't know everything, so it's important to seek help and advice from multiple sources when needed. If your advisor hasn't made you aware of the topics discussed in the podcast, you probably need to take a sit down and look at your situation.

Where Are You Getting Advice?

In this episode, Angela discusses the importance of seeking sound advice and avoiding common pitfalls. She shares humorous anecdotes of bad advice and emphasizes the need to be cautious about the voices influencing our decisions. Angela highlights the significance of having a trusted team of professionals to address various aspects of life planning, including business, finances, and legacy.
Key Takeaways 💡
It is important to be mindful of the sources of advice we receive and how they impact our decisions, not only in faith but also in relationships, raising children, business, and financial matters. There is a lot of advice available on every topic, but it's crucial to discern whether it's accurate and appropriate for your specific situation, especially with the rise of AI and readily available information on the internet.
Relying solely on a single professional, even a trusted one, can lead to gaps and overlaps in financial plans because they may not have a holistic view or the necessary expertise in all areas. It is important to ensure that the professional is equipped with the right tools and knowledge to provide comprehensive guidance, as even well-intentioned professionals can give bad advice if they lack expertise in a particular area.
Bad advice from even skilled professionals can stem from two main reasons: they may not know what they don't know, leading them to offer advice outside their expertise, or the right questions are not being asked, resulting in a limited or biased perspective. For instance, asking a banker how to pay for a business succession plan may lead to solutions involving banking products, while a broader approach might consider tax benefits, insurance, or alternative funding methods.
As financial situations grow more complex, individuals outgrow the need for a single professional and require a team of experts, with a quarterback to lead the charge and coordinate efforts. The role of a life planner is to help individuals define what it means for them to live life on purpose, understand their future goals, current situation, family dynamics, and feelings about risk and money, and then identify the right professionals to involve at the appropriate times.
When seeking advice for business, money, or legacy matters, it's beneficial to consult with a life planner first to help formulate the right questions and avoid costly mistakes down the road. Life planners can help identify holes in financial plans, determine which professionals need to be involved, and ultimately guide individuals towards living life on purpose.

Family Support Checklist (Rebroadcast)

As a life planning firm, it is our mission to help you take the essential steps needed to face each of life’s stages with confidence and clarity. We were asked if we could compile a list of the things that need to be addressed on every level when you find it necessary to assume physical, emotional, and financial responsibility for your parents.

Have You Outgrown Your Advisor?

I believe one of the hardest things to do is find the “right fit” advisor for you and your family. Because of this, I thought I might take a minute to educate you a little about our industry.

When to Start Planning (Rebroadcast)

Angela was honored to be a guest on the Real Wealth podcast with Jim Silbernagel to share the benefits and pitfalls that could occur when starting a financial strategy later in life. Please enjoy this gem from our archive.

The 8 Life Planning Issues

Over 35 years of working in various fields of Life Planning has shown us that most people don’t plan to fail –they just fail to plan. And one reason behind this procrastination is that they are overwhelmed by the complexity of the task and don’t know where to start. We feel it is very important for every family to seek help and take the time to focus on the questions that need to be addressed. I encourage you to be proactive as opposed to reactive and live your life on Purpose!

Preventative Financial Care

Over 35 years of working in various fields of Life Planning has shown me that most people don’t plan to fail –they just fail to plan. I encourage you to be proactive as opposed to reactive and live your life on Purpose!

Do You Cut and Paste Your Decisions About Money? (Rebroadcast)

Think of your 3 favorite restaurants. Now imagine the head chef from each made his/her very best dish for you. Sounds splendid, right? Now imagine if you took a big bowl and mixed these three dishes together with a wire whisk. How does that sound? Not so good, right? So why do we do that with our money? We cut and paste every strategy that sounds good and mix it all together. No matter how superb each strategy may be, when you mix the 3 they may not mesh well together at all.

Social Security and Tax Increases

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7% in 2023. You may also have to fork over some additional cash come tax time. It will be more important than ever before to work with your tax professional to know where you land.

When Should I Take My Social Security?

Social Security claiming strategies are much more complex than asking for your neighbor’s advice. Here are just some of the factors that could come into play with how to maximize not just your benefits, but your entire retirement.

The Griever’s To-Do List

If you love your family, you don't want to miss this week's episode. Planning is a gift. It is a gift of peace of mind and the ability to not just survive, but to thrive. Provide your family with the tools to take care of you and your wishes with confidence because you love them.

Spring Cleaning Your Financial House

Even though you think you have everything in order and in its place, your finances won’t stay stagnant. This means your financial house gets messy without you even knowing it. This week we take a look at some ways you can get a head start on your financial spring cleaning.