Do you have the right coaching staff? - Episode 95

Have you ever wondered if there is a better option for managing your financial life? In today I talk through what I like to call a "multi-family office" model where you receive Wealth, Investement, Tax , Estate and Philantrophic giving at one table. Check out today's episode for more on how to get more than the traditional wall street model can offer.  

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JOSH KLOOZ, CFP®, MBA
WEALTH ADVISOR

Phone 281.719.0036
Text 281.699.8691
Fax 281.719.0156
jklooz@carsonwealth.com

1780 Hughes Landing | Suite 570
The Woodlands, TX 77380

Music by bensound.com

Transcript

Josh Klooz: 0:48

Hello and welcome again to the Wisdom of Wealth podcast. Thank you so much for joining me again today. Last week I asked the question what is a part of your investment policy statement and do you have one for starters, and then kind of gave some loose guidelines as to how to draw one up and then how to let that philosophy evolve over time. This week I want to ask two questions. First and foremost, I want to ask who's on your team and who's leading your team? Now I'll leave it a little bit broad, but with those two open-ended questions. But what I'm really trying to focus in on today is who's on your wealth management team, who's on your financial life team and who's leading that team.

Josh Klooz: 1:41

In today's society and in the culture that we were brought up in and what the marketplace has offered for the longest time is a very fragmented approach to serving clients. Often at the center of that team is the client and they're having to run to three, four, five, six different subject matter experts to kind of put together their life plan and their individual plan of attack for the way forward in life. Often this can work, especially if that's the only thing that that individual is doing and that they don't have any breakdowns in their health or communication or turnover of advisors and, like I said, while it can work, it's less than optimal. What ends up happening in more cases than not is the big brick that everyone seems to think that they need to put in place first. The cornerstone they need to put in place first is partnering with a wealth manager, and then they basically look at returns year to year with that wealth manager to make sure that wealth manager is doing a good job. Then they run over to their CPA and they hope that they get a good deal on their taxes and they hope that everything's in order. But it's really an autopsy of the investment decisions that were made for the year previous. And then, if they're really with it, if they're really on top of things, they'll go to their estate planning attorney once a year or once every few years and they'll check in with their estate planning attorney and make sure that no changes have happened that might adversely affect their financial plan and their goals. But outside of that, there are all sorts of other things that might come into play that should be considered, and so today I'd like to just gently offer a better way.

Josh Klooz: 3:48

I think that you pay really good money for a financial planner and a wealth advisor and a wealth manager to make sure that they understand what is important to you, why it's important to you and how to advocate for you in the marketplace. I think that if you're partnered with the right person or persons, that team quarterbacks the plan that you've put in place. They're coming to you constantly proactively with advice that is guided by the intent that you have laid out for them. So, at the center of that relationship, I think planning has to come first and foremost, and that planning comes from understanding what your hopes, your dreams, the future are, but also understanding the cash flow that it's going to take in order to make those dreams a reality, and also making sure that you are taking care of from a tax perspective and from a tax management perspective and from a state perspective. So, rather than forcing you, the client, to be at the center of this matrix, chasing down random pieces of information and trying to manage a group of advisors, we'd rather see a multifamily office approach where you place whoever you're partnered with at the center of that relationship and you become the general manager of your life's vision, of your life's portfolio, rather than having to become the CEO slash operator. So, in this different world that I envision, I envision a world where you have quarterly meetings with your planning team and that planning team is going forward and proactively reaching out to your CPAs, your attorneys, your bookkeepers and the people that are important to your world, and making sure that that information is proactively brought to you so that you can make timely decisions with the information that's given to you.

Josh Klooz: 5:51

More often than not, this type of engagement, this type of relationship, is just assumed by too many of my neighbors. It's just assumed that it's not possible. That just couldn't happen. Lastly, I'll leave you with this If your planning team, if your wealth advisor, has never asked for your tax return, I would submit to you that there's a lot to be desired in that relationship. It's just that you don't know it yet. Secondly, if they haven't asked for your estate plan, or even asked if you have one, I would submit to you politely again that there's a lot to be desired for that relationship.

Josh Klooz: 6:31

Those that know me well almost get sick and tired of me asking for this information, and I ask for it frankly, because it's the build. Those two documents are the building blocks of a lot of decisions that need to be made, not just from a portfolio perspective but from a planning perspective. People don't partner with me because they want to be comfortable all the time and they want padded on the back. They partner with me because they know that I'm going to make sure that they get have the right resources at the right time and then I'm going to make sure that they're set up for success. So, as uncomfortable as it may be to chase down your tax return or to make upfront tax plan decisions, or the one that probably is most the thorn in everyone's side, is making your wills and or your estate plan, your trust, work.

Josh Klooz: 7:23

It's not fun to think about your demise, but at the end of the day, it needs to happen, especially so that you're not placing your loved ones in a situation where they have to make decisions on your behalf after your demise, or in a place where they're just not emotionally ready to make those decisions. Why not plan ahead and make those decisions prior to and set a system and process in place that sets them up for success? I'll leave things here for now, but hopefully this has given you just a brief taste of what we like to call our multifamily office approach to wealth planning and wealth management and financial planning. If any of this has resonated with you, please feel free to reach out with questions, as I appreciate those and enjoy interacting with those and, as always, know that I'm wishing you and your family continue truth, beauty and goodness on the road ahead. Have a great day.