Episode #23: The 3 Levels of Financial Planning Services and Which One Is Right For You!

On This Episode You'll Discover:
 - How to figure out the type of financial person you are working with and if its the best for you or not.
 - The 3 levels of financial professionals and which level is right for you.
 - What the difference is between a TRANSACTIONAL Advisor and a HOLISTIC Advisor.
 
 Resources In Today's Episode:
 - Schedule Your Complimentary On The Money 5-Step Retirement Review by calling 1.800.245.0546
 - Check out our website: Group 10 Financial/
- Follow us on Facebook
- Follow us on Twitter
Disclaimer

Transcript

Speaker 1: 0:01

This is the on the money podcast with Jerry and Nick royer broadcasting nationwide. Jerry and nick are consumer advocates, authors and TV news contributors to NBC and ABC Stations. Their nationally syndicated radio show reaches coast to coast every week. Jerry and nick will show you how to make sure you live a confident retirement lifestyle with more simplicity at less worry. You are listening to the on the money podcast with Jerry and Nick Royer. Welcome to the on the money podcast with Jerry Nick Royer. I'm mark Elliott and I'm joined in the studio of course by Jerry and nick. They're registered financial consultants, TV news contributors, Radio Show cohost, and maybe most importantly the founders of group 10 financial over the past 52 years, they have created the on the money

Speaker 2: 0:49

five step retirement process, a financial system designed to help you successfully build a blueprint to get you to and through retirement, with a focus on maximizing your retirement income, investing for success. No matter what Washington or Wall Street throws at you, and even cutting your taxes. There are literally hundreds of thousands of people who call themselves financial advisors across the country, but you know, the term financial planner is a very broad term and I've heard people who do debt consolidation, you know, financial planners. I've heard people in the bank who just sell CDs, call themselves. I am a financial planner. I've heard people who help you buy and sell stocks, call themselves financial planners when in fact they are just salespeople. So the term financial planner really guys I think kind of gets confusing to those like me that don't work in the financial world and I'm certainly to a degree to our listeners as well. Maybe you can help clear that up and that's kind of what our strategy is it going to be about this segment, is to let you have a better understanding of what an actual financial planner is and the points of difference, if you will. So guys, I'll throw it back to you because this is an important topic. Well in what I'll do is we'll kind of bounce back and forth. So I want everybody to kind of imagine them. Jenna Pyramid, a pyramid with three different sections, and if you know a pyramid, the biggest section is going to be at the bottom and then the middle section is going to be smaller than that bottom section, and the top of that pyramid is the smallest section, so remember these three sections of this pyramid. That's what we're going to talk about, and the First Section of this pyramid is the first type of financial planner. They're effective, but they're what we call transactional, right? Transactional. So they had. Let's talk about that for a little bit. Basically what they do as a carry out transactions, think of a CD salesperson or somebody in the bank who just all they did send a cubicle is push to you cds. Then you have a stockbroker. What's a stock broker do? What's it say? Stock broker. He brokers stock. Okay, but, but generally they're not doing any planning. They're just helping you carry out buying 100 shares of this and 200 shares of that in an easy way to know if you've got a plan is if you've got money parked in the bank, you've got over and an insurance

Speaker 3: 3:00

company, you have some in this brokerage house or that brokerage house and you got your 401k and you get all these statements, but there's no coordination between them. You're probably working with a salesperson, not a planner, but puts all those pieces together in a plan that you can sit down and read and know exactly how it's all gonna work together. Then you got annuity salespeople that all they basically do is a push annuities. They tell you anything in the market that's a bad thing, that are transactional people that are not planners.

Speaker 2: 3:32

So that's kind of your base, right? You have these, uh, these people at the bottom of this pyramid, there's the most of them in this category, but they're more transactional. That's what they're kind of doing as we move up the pyramid. This is kind of what we call the enhanced section. The second section in the middle of that pyramid, that's what we call it, the enhanced. This is where they do some this. The planner that fits in this category does some sort of basic planning, fee based. They usually are. Yes. They might be fee only. Okay.

Speaker 3: 3:59

Plan A and a hangar Manta or had out on a mantle or we're fee based, you know, and we are better than this person that works maybe on commission or if this person, no, you know, again, you have to look through, read through the nuts and bolts basically. Maybe they're a fee based planner. They put together a plan that you've got to take home, find out who's going to implement it for you. Do you want to somebody you can pick up the phone. I got to say, I designed your plan if you never implemented. It's like people that walk around with trust in these beautiful documents that they have prepared for him, for her trust and they never put the first dollar in the trust paid for and basically that attorney,

Speaker 2: 4:37

that attorney was just a transactional attorney. Here you go. They didn't help you. Carry it out. That's Kinda like getting picked up in a limousine with no limo driver. Right. Here you go. You're sitting in his limo. Who's going to drive me around? Oh, you know what? You're on your own. Well, I don't know how to drive a limo. I crashed into just about anything. So I mean, so you've got this middle section. This is this fee only planner and I've actually seen some fee only planners design a program and then say, Hey, my buddy across the hall can implement it for you. Well, let me see. Was there a conflict of interest maybe in the fact that the recommendations that you give me is the stuff that your buddy across the hall can get for you. So again, that's. You have these, these two sections, right? We've talked about the effect of the bottom level of this pyramid, which is the transactional advisor. The middle section is somebody who does some basic planning, their enhanced. They do a little bit more. The top of this pyramid is what we call the engaged section. This is the advisor who does total planning. Now let's talk about that. What is that top of that pyramid, the upper echelon

Speaker 3: 5:40

intersection? Well, that's the financial coach is providing solutions to your financial needs. They're first interviewed or first sit down with you is to ask what are your goals? What are your objectives? What's the purpose of the money you work so hard to earn. They listened to that, but to do that and to comply again, you've got safe money and you've got money, but may be at risk in these people are duly licensed, taken talk and educate you on both topics

Speaker 2: 6:09

because they have a broad range of investments available to then not beholden to any one person or another. It's what we call total wealth management. It's where they help you create the plan. They help you find the things that fit into that plan and they help you consistently monitored at plan and it's definitely like the first two levels all combined together and then some in the top of that pyramid and that's what we call total wealth management.

Speaker 3: 6:34

Yeah, and it's very important when picking a financial coach to pick one who has the most capabilities, know who you are working with and what their limitations are. I'm going to give you a number and just a moment for a complimentary visit with us. We can show you how total wealth management really looks like, what it works like. The peak of the pyramid can help you in retirement. Just give us a call for your complimentary strategy session at number 869. One three, three, seven, two. Again, that's 800, six nine, 1:33 72, or as Nick said, you can text the word easy, retire at 30 1:30 1:31 again, that's easy. Retire to 30 1:30 1:31.

Speaker 2: 7:26

Jerry royer is the founder and CEO of group 10 financial. Nick Royer is the youngest vice chairman of the International Association of Registered Financial Consultants. Now serving a second three year term. I'm mark Elliott. Glad you're with us today for on the money and we're talking now about the differences amongst financial planners and certainly group 10 financial falls into that. That top of the pyramid, that total wealth management, that engaged type of planning because it's about you and your hopes and dreams and you know, we see it all the time. You see it on tv, you hear it on radio, you see it in print ads. I hate annuities and you should too. Then you see, hey, you know, if you're going to be in the stock market, boy, there's a lot of risks there. I think maybe you should better go to the insurance world. Why are there so many conflicting messages out there when it comes to us and our retirement? Well, I mean basically if you peel back the onion, there's two different licenses. Uh, there's people who have insurance licenses and that allows them to do annuities and life insurance and fixed annuities and indexed annuities and things like that. And then you have a securities license, stocks, bonds, mutual funds, real estate investments, trusts, stuff like that. And so when you peel back the onion, what I find is a lot of people who say, well, hey, you shouldn't be in annuities at all. Uh, you should be all in the market. Wants because maybe they have only a securities license and they're only able to do that. If that was the case, yeah. I would only recommend that. Obviously if I'm. I was beholden to accompany it told me this is all I can offer. Then you might have an insurance person who may be offers annuities and they bad mouth. The broker's saying you shouldn't have any money in stocks, bonds, or mutual funds. You should put it all into an annuity and when you peel back the onion, you find out, well they're making that recommendation only because they have an insurance license. Think about it as a Ford dealership. If I went to a Ford dealership, what do you think? They're going to offer me a I would hope before. Yeah, but if you go to a like one of those multiplexes where there's a Ford and a Honda and a Toyota and it's all owned by the same person, they might say, hey, if you don't like this, I'll take you over to that because maybe you liked this one better than that one, and so there's different alternatives and so you've got to look for somebody who's duly licensed. That means that they have both licenses, securities and insurance, and then being duly licensed. They're not beholding to any one company and they can offer a much broader array of avenues and customize that plan just for you. You don't want to find out that you're working with a broker who can only offer stocks and then years down the road you've figured out, well, why do I just have stocks? Well, that's all he had the opportunity to offer, so you've got to be careful that there's probably people listening right now. The Go, you know this retirement stuff, it's a little more complicated than I thought. I'm looking at the next 20, 30 plus years of my life. I don't know who to find

Speaker 3: 10:03

to help me do this. How do I find the right person to help me in retirement and come up with a plan and a strategy for my situation? What are some of the questions that we should be asking? Well, let's do a quick lightning round. All right, well we'll throw out a few as many of these questions as we can. What questions should people be asking? How long have you worked in the financial service business? Two months. Yeah. That's not me saying that by the way. No, but, but again, so many times a person may be a teller at a bank and I'm not putting some of my best. There's a lot of turnover, but in that business they go from being a teller to now they're at a financial expert in this new branch and they just opened and maybe that they're doing the best that they can lift the two months experience that they have

Speaker 2: 10:47

in sometimes. Usually there's a lot of turnover in that too. They're there for five, six months and then they turn over and you go back into bank and they're not there anymore.

Speaker 3: 10:54

Yeah. Or are you captive or are you independent? Captive simply means that if you work for a company, be at allstate or state farm, whatever, that's who you work for. They're the ones that pay your bills so you work for that company independent may be able to talk about allstate state farm and have all these things in their arsenal to be able to guide you

Speaker 2: 11:16

degree, right? Depending on who you're working with. They have a bigger array and instead of being beholden to any one company. Um, how about this one? What kind of license do you have? We talked about that earlier. You want to make sure that you're working with somebody who's duly licensed. Yeah. They can handle both sides. The insurance side, they can handle the security side. They can handle all that. How about this? Do you act as a fiduciary? That's another great question. Are you acting in my best interest or are you acting in your company's best interest? That's a very big question to ask, um, that most people don't know. They find out too late that that person made recommendations because that was the best for that company and not for the. So you've got to be careful about that.

Speaker 3: 11:54

Do you invest in your own professional knowledge? Two weeks ago we were in Chicago working with financial experts across the country as what works best for the consumer, taking into account the new tax laws and the changes neck just returned again with a, from a workshop basically working with individuals across the planet, what the do that works the best for the client so that they know they're getting the right answers to her.

Speaker 2: 12:23

We're always spending time on our education and, and people shouldn't expect any less. You don't want to have a financial person that you're working with using 19 sixties technology in a different year yourself. I mean you had to face time. Was it what I was saying with my granddaughter, your daughter for her sixth birthday because you were on a symposium out learning what you could do to help our clients. Yeah. So I mean that's. Technology is cool, so I used the technology while I was learning about new technology, right, so, but I mean there's a bunch of things. How about this last question I'll leave with this one. Do you build written financial plans and if the person looks back across the table at you and says, what's that? Or they kind of say, well, you don't really need one of those. That is a warning sign. You've got to be careful. Walk away.

Speaker 3: 13:12

Yeah. The people who we see who have the highest success in their retirement, our bows that are working with a total wealth management team rather than just working with a financial salesperson. We talk about this a lot on the show, but strategies that got you to retirement are probably not going to get you through retirement. Usually the strategies that you use to grow your wealth aren't the best to get you to a durable, dependable, reliable, tax efficient, consistent

Speaker 2: 13:41

retirement income. I'll be giving the number to call here in a minute, but if you give us a call, we will help you create a customized, simple to follow step by step financial blueprint. There is no obligation, there's no cost for this initial review if you have at least$200,000 saved for retirement. So first what we're going to do is a stress test on your portfolio to find out what red flags you have to find out how susceptible you are in a market downturn. We'll do a tax analysis to help make sure you aren't paying unnecessary taxes. We'll do a retirement income analysis to make sure that your money lasts as long as you do, but you have to give us a call at the number we'll give here in a minute or you can also text us easy. That's letter a and Z as in Zebra. Easy retire to 30 1:30 1:31 or you can give us a call as well. Eight hundred 69 one slash 33 slash 70 to get ahold of Jerry, nick and the team at group. 10 financial, no cost, no obligation, no pressure. It's just a visit. It's a sit down chat about your hopes and dreams for your retirement. It's all about you at group 10 financial 869 one slash 33 slash 72, so call now to take advantage of this and schedule your own complimentary on the money step retirement review. The number again is 806 nine, 1:33 72. This is not some cookie cutter approach. It's a truly customized roadmap to your retirement, but you've got to call now 806 nine, 1:33 72. And as Nicole said, and Jerry has said, you can also text the word easy. Retire and is the letter e n z easy. Retired to 30 1:30 1:31. That's easy. Retire 30 1:30 1:31.

Speaker 1: 15:19

So for Jerry and Nick Royer, I'm mark Elliott. Thanks for joining us again and we'll talk to you next time on the money podcast with Jerry and Nick Reuter. You've been listening to the on the money podcast with Jerry and nick royer every week. Download new episodes to discover the latest retirement strategies and tips for retiring well from Jerry and nick. To learn more about how to create a retirement blueprint to help you have total confidence in your retirement plan or visit them online@grouptenfinancial.com. That's group one. Zero financial.com.