You've Managed Your Own Money Successfully - Why Would You Need an Advisor Now?

You’ve managed your own money for years and done well. So why would you need a financial advisor now? It’s a fair question, and one more people are asking as access to tools and information continues to grow. But what once felt straightforward can quickly become more complex, with higher stakes and less room for error. Today, Taylor explores why the transition into retirement introduces a new set of challenges and where professional guidance can make a difference.  

Here’s what we discuss in today’s show:

🧗 Retirement Transition: Moving into retirement introduces new challenges

🧭 Advisor Role: Turning complexity into a clear plan

🧩 Complexity Grows: Taxes, healthcare, and income strategies all interact

📊 Professional Value: Experience can uncover missed opportunities

📞 Take Action: Exploring your options can provide clarity and confidence

Resources:

Website:  https://www.demarsfinancial.com/

Phone: (509) 536-9556

Schedule an introduction call with Taylor: https://bit.ly/demarspodcast

Check out Taylor's YouTube Channel: https://www.youtube.com/@TaylorMadeRetirement

Taylor's Newsletter: https://demars-financial-group.kit.com/827c64fe0e

Disclaimer: Since we don't know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Demars Financial Group, LLC or its members cannot be held liable for any use or misuse of this content. Advisory services offered through Demars Financial Group LLC, a Registered Investment Advisor. Demars Financial Group is not affiliated with LPL Financial.

Transcript

SPEAKER_02 0:00

We recently heard from a listener who has managed their own money for years and done quite well. So why might they need an advisor now that retirement is around the corner?

SPEAKER_00 0:11

Welcome to Taylor Made Retirement, where we explore what it takes to build a retirement that works for your money and your life with third generation certified financial planner Taylor DeMars.

SPEAKER_01 0:26

Hey everybody, welcome into the podcast. It's time for another edition of Taylor Made Retirement with Taylor DeMars, and we're going to talk about you know, you've done well as a DIYer, manage your own money successfully. Why do you need an advisor? And Taylor, this is a pretty common question that a lot of people, I think, more so lately in the last few years, because of the technology, probably a lot of the resources that are out there. But I think what people learn is as they make that transition from accumulation and in the growth phase to the preservation and distribution phase, they're like, oh, there's sure there's a lot more stuff going on, right?

SPEAKER_02 1:00

Yeah, yeah, it can be. I mean, it's pretty it's it can be intimidating for some, others they just they roll with the punches. But hopefully retirement is a once-in-a-lifetime transition, and and many people aren't looking to uh you know experiment on themselves for the first time. True.

SPEAKER_01 1:14

I mean, unless you're an athlete or yeah, unless you're an athlete or a rock star, you typically only retire once. They tend to come back out of retirement multiple times. That's true. Um, but yeah, so let's do the listener question, right? We'll set you up here and then we'll just talk through some things. Um okay, so the person says, I've managed my money myself over the years, and have to say I've done pretty well. Everyone tells me that I should have a financial advisor now that I'm about to retire, but I'm having trouble with the concept of turning it all over to somebody else since I've proven that I can do it. What's your argument or some points or counterpoints as to why I should have somebody else do this? And uh, and I got a whole arsenal, and I'm sure you do too. So I'll let you let you get started. Um, but like I said in the tee up, right? Accumulation and distribution are totally different.

SPEAKER_02 1:58

They can be, yeah. And uh and I it's a question I hear all the time, which is a fair one. You know, I hear a lot of people who are very financially astute, and they may even see, say, investing as their hobby, something they like tinkering with and investing and such. Right. And many people compare, you know, the pre-retirement phase as the climb up the mountain, right? People are saying, I'm I'm I'm stacking my dollars and getting ready for that, that peak and that transition. And I think there's a cruel irony of a of a relation to how this is akin to sometimes climbing Mount Everest. You know, there's it's the the highest peak in the world, it's less than around 6,000 people who have ever climbed it or summited it, I should say. And sadly, there are more people that die on the descent than those that go up. 56% die on the way back down, right? Versus only 15% on the way up. And when I first heard this, it uh it piqued my interest because why could this be? But I think there are some parallels between coming down from the mountain of both the physical Mount Everest and retirement planning. And so it's a different game. You know, you're coming down from the mountain and and and you have to take different techniques and different uh means of getting down. And on the way up, it's I don't want to oversimplify it, but it's largely saving diligently, living within your means, letting compound interest do its work, and not touching the darn stock, you know, your darn portfolio when the market's having a uh a tizzy and letting it continue to grow and compound. And then when you start talking about how to unwind the portfolio from uh your portfolio to a paycheck, along with all the other decisions that come up with retirement, I think that's where the complexity starts to uh trip people up.

SPEAKER_01 3:30

Yeah, I mean, and that's definitely an analogy that's been used many times, and it is a fact, it's factual. You go look it up, more people, you know, pass away on the way down. And so, you know, the stakes are higher, right? Maybe it's the exhaustion of coming back down, maybe, you know, who knows, right? I've obviously never climbed Everest, but you know, but the stakes are certainly higher in retirement. And I think what people also don't realize, Taylor, is that you know, pulling different levers at different times causes a cascading effect that, while yes, that kind of happens on the accumulation side, it definitely happens more on the preservation distribution side, especially from a taxation standpoint. You know, how you pull your income, where you pull it from, you know, really can affect the taxation issue. And, you know, and as sayings go, obviously, it's not what you make, it's what you keep. And we have to be really tax-diversified and tax efficient in retirement. And that maybe that's a piece that people are just missing on.

SPEAKER_02 4:20

Yeah, it's true. I mean, I too have never mount climbed Mount Everest.

SPEAKER_01 4:24

Um and I don't want to.

SPEAKER_02 4:25

I don't want to. Uh, you know, the more power to them. I did do a couple of hikes when I was in college. I went to college in Utah, and one of the highest peaks there was was 12,000 feet, doubled the height of which is Mount Everest. But right, right. When I think about that experience, I was much more scared coming down because of what you described. The stakes are higher, right? If I slip and fall on a rock or or misstep or something on the way up, I fall on my face, right? I or catch myself in my hands. Sure. Yeah. Like, yeah, you could tumble, there are cliff edges, right? And I'm not trying to fear monger here, but it seems similar in retirement where if you pull the trigger for Social Security, I mean, for better or worse, that's also a once-in-a-lifetime decision, and you lock yourself in. And so that that has severe consequences uh if you don't get it right. Not not being proactive about your tax bill, like you talked about, right? If you don't find ways to minimize your lifetime tax bill, you may not have a choice. And so you're stuck paying, you know, well six figures more than you could have otherwise. Yeah. Uh, not preparing your spouse, you know, for if that she's gonna survive you or he or she's gonna survive you. I mean, the list goes on, and and and so it's those more severe consequences in a more fragile phase of life that I think start to add up.

SPEAKER_01 5:33

Yeah, and like we were talking about, like the complexity of events, right? The Social Security timing you mentioned, Medicare, RMDs, right, tax efficiency, you know, um, all those kinds of things, right? Healthcare costs, right? Constantly blooming, Irma surcharges on Medicare. Like, I mean, it's just and how they all play together, it's a little bit more complex than people realize. And I've been talking with advisors like yourself, Taylor, for 10 years, and it it never ceases to amaze me. Every single one of them can share story after story of people saying, Yeah, I was doing pretty good, kind of like this person's question, right? But then I started learning more about what I needed to deal with in retirement. And I guess the big question a lot of them come back to is do I even want to max send that much, spend that much time doing it, or do I actually just want to be retired and let somebody else handle it?

SPEAKER_02 6:21

Yeah, that's a fair question. And and I don't want to be clear. I mean, I'm obviously biased that I see how I provide value for people navigating retirement, but I very well can see many people successfully navigating their own retirement plan on their own. And at their like you mentioned, there's there's a what a great day and age we live on where there's so many free resources that people can learn from and and digest and implement the their own plan. And it's almost to a fault, right? Where you can be overwhelmed by the amount of resources out there, for better or worse. But in any case, what do I do now?

SPEAKER_01 6:52

I've I've got 47 you know pieces of information and a lot of them conflict, right? That happens too. Yeah, exactly.

SPEAKER_02 6:58

So that that's where I feel our our value comes in is being able to just disseminate the chaos of competing opinions out there and find out, okay, what truly is tailored to your situation, hence the name of this podcast, I guess, Taylor. And then be able to figure out not only do that work for them, but make it our full-time job rather than their part-time job. Because inevitably people find that they maybe they maybe they enjoy doing the investing or tinkering around with, you know, sure learning about tax legislation code if that's what they like to read to put themselves to sleep. But at the end of the day, it's it's it's my role to be on top of that because it it may be their very first rodeo to navigate retirement. And how often have people navigated the things you just described? RMDs, herbas, you know, uh tax efficient withdrawal sequencing, et cetera. People can make a good stab at it, but I feel where I I get to add value to the table is seeing, well, I've I haven't retired myself. You've done this a lot. Hundreds of people helped hundreds of people get through this transition, and people who are decades ahead of where many of our clients are where they come now. So we see the advantages, we see the pitfalls, and that's why at the end of our retirement readiness roadmap, our our executive summary deliverable is yes, not only the assumptions and the actions of the plan, but two pages worth of the pitfalls that they may have missed and the opportunities that they have may have uh overlooked to make the most of the retirement plan without having to work a day longer or save a dollar more.

SPEAKER_01 8:23

Yeah, that's a great point. You know, and the the person's question really addressed the fear of turning it over. And I think that's the hang-up a lot of times for people, Taylor. It's it's like this is my hard-earned everything, and I gotta trust somebody else to not screw it up. And I get that. That's a that's a real tough human thing to deal with. But if you think about how many places we do that in life already, you know, and with so many other facets, granted, it's not your nest egg, but still, that's why there's a lot of sources out there. You can vet people. I mean, for the podcast, for example, or your YouTube channel, you know, lots of advisors have different ways to learn more about them and who they are and what they stand for and how they handle business. And maybe some of that stuff hopefully starts to help people kind of find some comfort. And I think that's also a great point in the in the complimentary reviews that everybody offers, right? You guys have the could we be a fit button on the website because it's like, hey, come in for a consultation, see if we're the right person. We may not be, right?

SPEAKER_02 9:17

Right. Yeah, and and in a word, I think you're nailing on the head what my job is, which is not getting nerdy with the spreadsheets, not talking about the tax planning. It comes down to, in a word, in my opinion, just trust and being able to trust whether the person you're you're you're sharing your your sense of information with, trying to make key decisions around whether you trust that they have your best interests at heart. And you know, I think anybody, good or bad, can say the same thing about their trustworthiness. So that's yeah, you're that's my aim is to take the extra effort to do these podcasts with you and and to to make the YouTube videos, write a weekly newsletter, whatever I can to share my all of my cards. And if it resonates with people, great. If not, then hopefully they learned something that was worth their time.

SPEAKER_01 9:58

But well, and it's a collaboration too, right, Taylor. So I think that's the other thing I was thinking about with that, turning it over, right? You're not turning it over. You shouldn't be hiring an advisor thinking they're gonna care more about it than you do. It's your money. You need to care the most, clearly, right? But it is a collaborative effect, and you want to work with someone that you can work with, that you resonate with, that you, you know, it's like going to a doctor. You might go to a doctor and it's like, you know, I don't really, I don't like their demeanor. So they're a good doctor, but I want to find one that that I can talk to, that I can understand, and and that gets me. And I think that's the same thing in with our wealth as well as our health.

SPEAKER_02 10:31

That's true. Yeah. And I and I don't want to sound like I'm beating my own drum, but I I I feel so passionate, I feel so lucky to be in this job because it's an opportunity to make a true impact on people's lives and in ways that frankly I don't think they realize until they're in the middle of the process, because many people have, like our listeners' question, have always done it on their own. If people have worked with a professional, it's not like going to you know, different grocery stores where they're familiar with all different types. I mean, people generally only work with one or two in their life, and uh, and so we see that as well. We have lifelong relationships with our clients. So that's that's why we try and like you said, have a a simple chat and intro call to see if if we're fit, and and frankly, we turn away more people than than we take on because we have a limited capacity, but also, you know, we're not a fit for all people, and not all people are fit for us.

SPEAKER_01 11:16

So that's a great point because I mean you've got to be able to build a plan with the client that they understand and are on board with and can implement, right? And and vice versa, right? You and then you're feeling confident that they're gonna take that plan and you guys are gonna work together to you know to execute it and move your way through it. And if you're a DIYer and you've done a good job, you've earned that right to be confident, absolutely. But again, there's so many things that you don't know. Is retirement the right time to keep going it alone, right? I mean, what is it, Vanguard study, you know, that they do just every couple of years or whatever, Taylor? That's like, you know, the real value add is in the behavioral management that the advisors bring because people just aren't used to all the nuances that we discussed already.

SPEAKER_02 11:58

Yeah, yeah. Lots to unpack there, but uh, but I agree with what you're saying. I at the end of the day, uh, it's a matter of being able to find someone that's I think many people find us who are DIYers who have done the spreadsheets, who have, you know, have a bold in retirement planning software subscription, for example. Largely what they're coming for to us is is comfort and peace of mind to know, you know, I this is this is my first time piloting this ship. Am I am I overlooking something? And uh inevitably we find things that they hadn't already, but I've had many people tell me I would I would gladly go through the process, even if I discover nothing new, just to know that you know my spouse can't look at me and blame me for being the only one that's trying to figure this out.

SPEAKER_01 12:34

So well, there you go. There's that too, right? So, you know, that could be a good peace of mind as well. So look, you got questions, you need some help. Nothing wrong with being a DIYer, nothing wrong with that. I mean, we've done a lot of that in our lives now. We've kind of moved to that kind of um environment, I think, again, as a society. Uh maybe the way it was way, way, way, way back. You know, who knows? But there's certain areas where I think a lot of people still do feel like they need professionals in their corner. And if you've got some concerns, definitely reach out and talk with, you know, one or two or three advisors. Find the one that's right for you. You know, jump onto the calendar with Taylor and his team and see if they, you know, if you're a good fit. Go to demarsfinancial.com if you're not already working with them, or maybe share the podcast with somebody who might uh benefit from that conversation. Have them click on that could we be a fit button uh or link and get started today. Again, Damasfinancial.com. You can also subscribe to us on Apple or Spotify, uh, whatever platform you like using. This is Taylor Made Retirement. And don't forget, like I said, check out his YouTube channel as well. All that stuff there at the website. Taylor, thanks for hanging out and uh breaking it down, my friend.

SPEAKER_02 13:34

My pleasure. Thanks so much, Mark.

SPEAKER_01 13:36

Have a great week. We will talk to you next time here on Taylor Made Retirement with Taylor Demars, CFP certified financial planner and third generation financial planner. We'll catch you later.