Episode 6: How to Start Taking Real Action in Retirement Planning

ABOUT THIS EPISODE

Welcome to the Build Your Life Podcast with Financial Expert John Browning.

When it comes to your Retirement Plan, when is it time to stop thinking about it and start doing it? On this episode, learn about leading a purposeful life and how to truly appraise your life--starting today!  Listen in and let's get going!

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you.

 

Welcome to the building your life podcastwith John Browning. Building your life is a relaxed and unedited conversation with financialexpert John Browning. Hey, John, welcome today. How are you doing? Doing great about yourself, you know, tremendous. It is a Glorious Dayand always exciting to talk with you for another episode and today, John, what I want to do is pick your brain a little bit about takingaction and cre how do you, how do you help people create a successfulplan of action, because I know that's work I've gotten stopped many times,not just in financial planning but in other areas, is we think we knowwhat we want to do, we set an objective, but we never getaround to actually doing anything. So what are some of the first steps,John, in creating a plan of action for your client? Well, wehave kind of a five step process and in some of those steps may seemobvious and simple, and really they are, but people just tend not to dothem unless they're purposeful about it and...

...and the whole idea of living lifeon purpose and and planning on purpose is something that I'm I'm a big proponentof. So really the first thing we start with is this idea that youhave to realize and get comfortable with the fact that a good plan starts withan honest appraisal of you by you and and an independent third party with yourbest interest in mind. And the reason you need that third party, thatindependent third party, preferably not your mother, brother, sister, any any ofthose folks that you love. We all love those guys right, likeany professional sports player will tell you, they got to where they are becauseof consistent coaching and consistent execution. We're unable to see, and this isthe reason I don't look at my own portfolio either. I mean, Ilook at it, but I have somebody else look at it as well.My partner looks at it. He's he's he'll kick me in the tail andsay, Hey, you're being emotional here.

You, you, you didn't adjustthis because you really like this thing and you need to need to trimthis position. And he keeps me in check because he's independent and he's justan independent third party and I'm my opic, you know. I only see what'sin front of my face. We don't right. That's that's just inand also the fact that I think we need to realize again and I mentionedthis before. Is that real life gets in the way of consistent execution ofa financial plan? Ye, is it? So the third party, I alwayssay that they have an uninvolved perspective. Going back to you don't want itto be your mom or your father in law there involved at some level. So having that third that advisor who's uninvolved, that I have a greatperspective right. And the other thing that I love about having an uninvolved thirdperspective, I said a coach of financial coach, let's say. There's aphrase that I learned a long time ago in dealing with business owners is andit works with financial advising. To we are imagine that you're standing inside ofan old empty coke bottle and you're looking out that coke bottle but you're tryingto read the label of the coke bottle.

That's really hard to do right,and so that third parties on the outside of the coke bottle, theycan read it just fine. And so in this situation it's really challenging forme to plan my own finances because of the emotions involved and I don't haveall the knowledge, whereas you can look at it and probably in a shorterperiod of time. Go Oh yeah, well, here are the three questionsI need to ask you, or here's the positions we need to be in, because you do it all the every day. So it's it's understanding thatit's not a weakness to have a financial advisor. In fact, it's agreat strength and it helps us take action, because we are all just naturally weprocrastinate, especially when it comes around planning our finances in our future.Right, that's right. Yeah, let's talk a little bit about how tohow can a client prepare before they come and meet with you? What wouldbe, well, being an ideal situation, and then maybe what's our more realisticsituation? Well, so the ideal situation is that they come to themeeting with with all of their financial documents...

...in here and and you you've gota list of those, because you're asking. I'm like, I don't know whatall that would mean, right, and it's yeah, we have alist of those we can send to them, and I love but when they askfor it, I try and send it anyway. But if they askfor it, then I know that they're they're serious about, you know,making a plan. But it's it's really sort of everything right. It's notjust your your investments, but it's also your liabilities, your you're checking countstatement, you know, that tells me you know what kind of Emergency Fundyou've got, the savings account, checking account, that type of thing.And also, like to you own a home, we want to we wantto get an idea of what that mortgage is, what the mortgage payment is. So you need to know what your cash flow is like, as wellas all your bills and in credit card statements, that type of thing.And then what you're of course, if you own that home, will what'sthat home worth? So we get an idea of what your net worth mightbe if we were to calculate it today...

...right, not what it's going tobe after we finish this financial plan, because we're going to get you toa better place, but all of all of those pieces of paper that maybeyou don't think about every day. Car Payments, all those things. It'shelpful to have and a lot of people get overwhelmed and I say just youdon't just bring it in and put it, just throw it in a box.Over over the next month or so, just as the mail comes in oras you print out the statements, or whatever. So email them tome, whatever you need to do to make it easy for you, becausewhen I look at it, it takes me right, roughly takes me aboutten minutes generally to go through that because I look at them all the time. Right. You know what you're looking for. I know what I'm lookingfor. I only need certain information. There's always TMI, as my thirteenyear old tells me, too much it too much information on those statements.But really only need a few key things. So it doesn't take me long togo through there and get a really solid picture of where we are now. Yeah, well, and that's really important, John, because people don'talways understand how it all plays together.

But if they have a mortgage andthey have, let's say, two car payments and they're paying a high interestrate on that, but they have, let'say, a Home Equity Line ofcredit that's at a lower rate or something like that, right, you couldlook at that and go, you know, want it might make more sense totake a loan over here on your house to pay off the cars,to save money. That frees up seventy five a month and let's pay thatoff and then let's put that thing you're the master of that chess game thatmost of us we don't even think about how a car payment affects the moneythat we could be investing. We always say, well, I don't haveenough money to invest. Not always the case when you have somebody like youwho can look at it and go, I understand all the pieces on theboard and how to maybe move them around. Is that? Is that something thatyou do as people bring these documents in? Is that part of theequation? No, absolutely. One client comes to mind right now where they'retrying to make a decision on his wife has lost her job and and she'sgot this for three P and you know kind of I've looked through that andI've kind of explained to them that for...

...three bees are and for one case, and there's also sorts of different retirement plans, but they're all fin phenomenalinvestments and I would encourage people to participate in those. Often you can getmatching contributions from your employers, but once you have moved away from that job, not just leaving it, there is sort of dangling in the wheel.But when, because because often you can, often they have fairly high fees buriedin there that you you never see and you'd never see unless you're somebodylike me and they get into that type of thing. I'm getting off topichere. Sorry about that, but that plays into it. And then wehave a bring in their again, their credit card statements and all of that, and debt management becomes a big part of what we do, but noteven debt management as much as it is really getting into the why the debtis there. Because dead, I say dead, is like a fire rightit can it can warm you, it can be very useful and, frankly, most of us need debt at some...

...point in our lives. You canalso get completely out of control and it can burn you and it can destroythings. So when we're talking about managing the debt aspect of somebody's financial plan, we're also looking at the psychology of that person and how they manage thatdebt and we do try and coach them and and work that whole debt payoffinto the financial plan. That's good and that's important that you dig into thatperson, because I've known some people that we've helped them, you know,through but it counseling things get out of debt, only to find out guesswhat, three months later they're back in debt and you're like, wait aminute, but that's a personality thing, right. So you have to understandthat as a financial advisor, and since you work for so many people,you can probably going back to what we talked about in the last episode,I think the snowflake theory. You need to know what that snowflake looks likeso you can best help them plan their future. And Debt and you know, car payments and things, is all part of life, but it allworks together and that's that's why it's so...

...important to talk with somebody like youwho gets it and who puts all the pieces together, so that we canjust bring all the all of our pieces and statements and say here, figureit out, and in a short period of time you can say, okay, here's what's going on, here's what I see. Let's talk about that. Where you wanting to go? Here's how we get there, right,and you just it's a step by step process that people walk with you through, and the cool thing about it it's step by step and that indicates thatthere's action involved, and that's really what we've been talking about in this episode. Is is how do you plan for action and take action, and it'sgot to be a relief when somebody says good, that means done. John'staking care of that. We're going to be in a great spot and we'llconnect with you, John in what a few months. I mean, howoften do you meet with your clients, as at an annual review or what? What do you typically do? We what we like to do is welike to meet quarterly with our clients. Some clients don't like that, sowe then move to semi annually and and there are a few clients that westruggle even to be any but if we...

...can't meet annually with the client,we're probably going apart ways even you know, hey, that's how we get paidand make a living. It is so important that sort of that laststage of the plan where you set up a system to communicate regularly, evenif the meeting is fifteen minutes long, to understand what's going on in thatclients life. Or if nothing's going on and everything's flowing along splendidly, that'sthat's fine, but we still need to know that and and know if theplan is still on track. Quarterly is good. If it gets to bea monthly thing. That's probably often the reason for that is is you startto you start to judge your investments based on too short a time period andand people can get emotional and get get concerned. And a semi annually itworks for for many of our clients and and that's a really good time periodas well. Just look at about every six months. It really depends onthe client and again it goes back to...

...the idea of the snowflake theory andthe idea that we're all different and we have different situations. And it alsogoes back to the idea that when I hear that financial advisors, or callthem the robot advisors or whatever, put people into a quote unquote model portfolio, put all their clients as one size fits all. Right, just reallydisagree with that theory. One size doesn't fit all. Here all extremely differentand enaging each individual client as they are, portfolio as it should be man isfor them, is very important and that's why that regular meeting schedule isalso important, because their lives change differently than my life does, certainly right, and differently than our other clients lives. Wow, that's going and with quarterlymeetings I can definitely see how you play into it. Of Hey,we get John, we just had another child. We think we need tobuy a minivan now, and you could play into that to go. Well, you can, but do you have...

...to buy a new one? Maybewe could buy you know, and just counsel and wisdom that you bring tothe table that really helps people impact their lives as they're building their portfolio.So just really want to encourage people to reach out to you, John.You know he does his his website, or just pick up the phone andcall him. He'll and actually answer the phone and talk with you too,and make sure you ask for a copy of his book. It's a phenomenalbook how to build a life and not just a portfolio. So, JohnBrowning, thank you, as always, a pleasure talking with you. Appreciatethe the insides and the wisdom and the time that you give us today.Thank you, always a pleasure. So thanks for listening to the building yourlife podcast with John Browning. Be Sure to subscribe to this podcast so eachnew episode will be sent to you automatically when it is released. Have aterrific day,.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (101)