Colton Cockerell is a financial advisor based in Friendswood, Texas, who has been in the industry for 15 years. Colton works with Next Financial Group, Inc.
His passion is working with people and assisting them in reaching their financial goals through fiduciary, prudent investment advisory services and strategies. Since joining the Sharer McKinley team, his role as an investment advisor is focused on the design and implementation of retirement plans for his trusted clients.
He also works closely with younger families advising on the importance of saving for college through tax-advantaged investments.
Your hosts: Colton Cockerell & Trisha Stetzel
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Colton Cockerell
Trisha Stetzel
More fun and interviews on our FB page!
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Colton Cockerell is a financial advisor based in Friendswood, Texas, who has been in the industry for 15 years. Colton works with Next Financial Group, Inc.
His passion is working with people and assisting them in reaching their financial goals through fiduciary, prudent investment advisory services and strategies. Since joining the Sharer McKinley team, his role as an investment advisor is focused on the design and implementation of retirement plans for his trusted clients.
He also works closely with younger families advising on the importance of saving for college through tax-advantaged investments.
Your hosts: Colton Cockerell & Trisha Stetzel
Click for more about your hosts:
Colton Cockerell
Trisha Stetzel
More fun and interviews on our FB page!
https://www.facebook.com/bridgethegapinterviews
Hello and welcome to a another exciting episode of Bridge the Gap where we're balancing life through health, wealth, business and relationships. Alright, hello everyone. My name is Colton, and welcome to another episode of Bridge the Gap where I am here as always with my co host, Miss Trisha Stetzal Trisha, how are you doing this lovely day?
Trisha Stetzel:Hey Colton. I'm Good. Hey, to all of our amazing listeners. As you might remember, we are really focused on financial wellness for the month of March, and we have a special guest today, so called and I am really looking forward to chatting with you today about an area that you happen to be an expert in. And I think we're gonna have a little bit of fun.
Colton Cockerell:Yeah, eight years, nine years now. So it's been a while. But before I start jumping into questions, I gotta give a shout out to our sponsor today. Share McKinley group, I am ready to be interrogated. Bring
Trisha Stetzel:it Okay, I hope you are because I've got some really hard questions for you. Why don't we open with this? What is what's the market outlook right now? Talk to us.
Colton Cockerell:Oh, yeah. So it's, that's actually a really good question right now. So it's beginning of March, march 2, right now I'm recording this I want to make sure I do is timestamp. It's very interesting. There's so many things that are going on and a lot of noise. Some of it actually was some of it was silence day, which was nice. Ukraine is a huge thing going on people are so they just don't know what to expect. Whenever there's like just uncertainty in the world markets, they just go out of control. Right, we saw, you know, a dip 10-12%. The Dow The Dow is actually it's kind of come back the past three days. But that aside, the other big thing was talking about interest rates. So Powell actually came out today. And he said that they aren't he actually gave a number, which, you know, you don't really hear, he said that interest rates are actually going to rise by only a quarter of a percent in March, people are expecting a whole lot higher. So what that did is that took some pressure off the stock market, because what happens whenever interest rates go up significantly, people are gonna start taking money out of the stock market, because they find safer places such as bonds, CDs, things like that, where they have a you know, it's a safer investment. Not as volatile as stocks are so so yeah, a lot of a lot of good news on that front. As far as Russia and Ukraine goes, Man, I don't think anybody think Vladimer Putin knows, like, what's going to happen next. So we're still going to have a lot of fluctuation. Again, you know, my thoughts and prayers definitely go out to the Ukrainians, and even the Russians, I feel horrible about the whole situation. So that's kind of where we're at. Now, we'll say if everything in Ukraine and Russia kind of gets under control, and once the midterms hit, you know, I think we might see some stability. Some economists are still thinking there might be more of a sell off in the stock market. However, and I'm not making a political statement here. You know, it looks like, again, from a lot of polls, that Republicans are going to take both the House and the Senate. Right, I'm not not saying it's a good thing. That's thing, it's a bad thing. But what that does is that brings some stability. And what I mean by that is there's really nothing that Biden can do when you have the Republican House and Senate, so really have a lame duck presidency. And really, there's really, there's nothing crazy that's going to happen in America. Now. Granted, there can be stuff happening outside so the market likes when things are somewhat predictable. They like that because the market can then do its thing people can invest confidently so you know, we'll see what happens but in the short term until you know really till January till actually the the electorate's go into office, I You just don't know what's what's crazy, and people are telling you two different things. So it's like, you don't know who to believe and who not to believe so. But yeah, but the positive side is interest rates look like they're going to slowly go up is going to be a big spike. So that is one one. Good, positive.
Trisha Stetzel:Yeah, that's excellent. Well, and you know, all of that said, and even when we get to the the back end of our discussion today, you know, really thinking about having somebody like you in your corner, because you're looking at it constantly, right? And the individual who's got the money invested, really needs somebody looking out for their best interests. So I'd like to dive into the definition of fiduciary because you talk about that a lot. And before I met you, I had no idea. I know, y'all don't make fun of me. But I didn't even know there was such a thing. Right? So let's talk about that and why you should seek out someone who carries that tag, if you will, alongside of them.
Colton Cockerell:So I have a designation Certified Financial fiduciary. And this actually ties really well into the previous question you just asked. So with everything going on with the markets being the way that they are, you know, it's not just me it's not just the other advisors in the office, we have an economist we have, you know, we have a team looking at the market, right? We work with companies, and we have people that we hire to make sure that we're, you know, doing what's best for the client. It's important to so being a fiduciary, basically what that is, that means that I have to have my clients best interests in mind at all times. And I got to make sure that my interests are second to that, right. So the best example I like to give, you know, if there's an advisor showing two different mutual funds, right, hey, here's mutual fund a mutual fund and be you know, they, if they're not acting as a fiduciary, then they really just have to make sure they're doing what's suitable for you. And what that means is, I gotta take it to a risk tolerance, figure out what your time horizon is, based on that both of these mutual funds, hey, they're suitable for you, I can, I can tell you whichever one to choose. However, as fiduciary, on top of that, I also have to tell you how I get paid in each one, you know, which one I think is going to be in their best interest and why that is, you know, still give them an option. But really break everything down. I got to let them know how I get paid, how I'm compensated all of that stuff. So working with the fiduciary, you're going to know everything up front, because there's a legal obligation. I mean, with my designation, you know, we've always kind of done this even before I had the designation, but I mean, you you are liable to have I mean, how do you go to court and say, Hey, how's this in their best interest? You know, like, that's the very hard thing to fight. And that's why we got it, you know, we always always bet our clients, but also at the same time making sure that we're doing what's best by what we think is best for the client. Yeah,
Trisha Stetzel:absolutely. All right. So I bet there's quite a few people out there that wonder how does someone who's in your industry get compensated? How do you get paid.
Colton Cockerell:So a lot of a lot of the way that the market is going right now, the way that people are wanting to invest called fee based business and fee based planning, there's just basically a fee, right, you pay a fee for assets under management. So let's say that, you know, someone comes in with$500,000, they could charge one and a half percent. Now the cool thing with fee based planning in business and investing in why I like it, and why most advisors should do it is because literally, you're on the same side of the table with with your client, because the way that I make more money is for my clients to make more money. That's the way the fee based relationship works. So it really makes sense, because it's a win win, when you're sitting right next to the client. And they they understand that the other way that a lot of eyes get paid is what's called a commission base where they just push a product they push, they push a mutual fund and annuities, something like that, and they get paid a commission, you know, that's in commissions, up to five 5.75%. And again, at the end of the day, like when you're pushing commission products, you're always question in the back of your head was that really was that really best for me, especially if you push a commission product, you have an advisor who five years down the road, you're not getting the service, you were at the beginning, because they already got paid off of what you're doing. So like they're probably not necessarily going to be taken care of you like, again, a fee based relationship with so I think fee base is the way to go.
Trisha Stetzel:Would you suggest that an individual when they're seeking out someone to work with they interview?
Colton Cockerell:Oh, I think that's, that's, that's absolutely important. And that's not that's not too uncommon. And that granted, if you if you get a referral, usually they're just gonna go off for you based on you know, what the refer said about you. But it definitely is important. And some questions you do need to ask an advisor. First, you need to understand their philosophy, how do they invest? And why do they invest, need to understand how long they've been in business, there's a great tool out there called broker check, it's put on by FINRA, who's a regulator of financial advisors past present, I guess, not future because that's not really possible. But with broker check, you type you type in the advisors name, and it'll show you how long they've been in business, all their certifications, what states their license in, most importantly, it'll show you disclosures and what that is, is any really negative things about them, whether it's a complaint, whether it's a bankruptcy, anything like that. So definitely start there when you're kind of starting the process of who should I work with and go that that route, because that really will give you kind of a head start and understand who these people are before you sit down in front of them. When you're sitting down? How do you get paid? And what's your investment philosophy? And, you know, is that's just I'm a guy of systems. Trisha says, you know, so really, what is the system but some people don't? Don't actually Well,
Trisha Stetzel:and, you know, I, I would think that this is also very personal to people, right? So it's about sharing values and having the same beliefs, right, the same type of belief systems otherwise, do we really get along I mean, if I'm gonna, you know, put my put my money or my eggs in a basket, right for someone to take care of for me, I think that I would want to have a good relationship with them. Cool. So I am I know you know this about me and some of our past listeners from seasons before but I'm half a century old this year and I get to be that two more days this week. And I think about retirement, right? So what, what numbers? Are you looking at? Like, how much do I really need to be able to retire?
Colton Cockerell:And that, you know, people ask that all the time, you know, people think, hey, I need a million dollars, right? Well, that might be way too much, or way too little. It really, and that's, that's, again, part of our system. And I think this is also crucial. When you're working with an advisor, you got to have a financial plan, you have to put one together, because that is going to tell you, what is the future outlook? How much money do I need to have, based on your goals? Based on your time, horizon is when you're gonna retire based on the assets that you have? I mean, I think you cannot, again, as a fiduciary here, I don't think you can do best by your client, unless you have a plan, because that is how you're actually going. That's what you're going to use to justify how you invest. So I'm a big financial plan guy, I think that is so crucial. So there's really no number all comes down to what are your spending habits gonna be? And what's the income that you have coming in? Do you need to make adjustments? Obviously, I mean, you got to know you just can't get to a million say it ready to retire doesn't work. Like it doesn't
Trisha Stetzel:work like that, like I don't understand. Well, and speaking my language, of course, right? You can't do anything without a plan. If you don't have a plan. How do you know when you've actually succeeded or get to that end result? So how do I know if I'm getting the most out of my Social Security? Oh, we're going oh, my Wait, I'm not. I know. So wait, I'm not that old yet. But I have friends that are. I have friends that are I'm asking for a friend.
Colton Cockerell:They like two days. So yeah, no, um, that's a good question. Social security, that's I'm glad you asked that. I'm really I think there's a lot of there's a lot of uneducation surrounding social security. I mean, how when to take it, survivor benefits, spousal benefits, you know, all these different things, there's, there's, I don't think people understand they just go ahead and start whenever they want. But honestly, if you look at all the mortality tables, people are living longer. So if it makes sense, you know, people retiring, you know, 60 to 65, usually about Medicare age. So why not wait till 70? Right, the husband, the parent, whoever has the higher security than wait till 70, then the spouse they claim at their full retirement age, because what people don't understand what Social Security is that? Yes, you get it, you both you and your spouse both get it, but once one of them passes away, typically, the breadwinner is going to pass away, because, again, usually the man of the house, not always, but usually the man, they are the ones that are the breadwinners, and they also are usually older. And also men's mortality rate is so much lower than women are higher than women that are going to pass away most likely before they're their spouse. So whenever you're looking at that, if you claim Social Security, if the if the the person that has the most security benefit claims early, well, whenever they pass away, that's what the spouse is going to receive. Whereas if you wait till 70, you get that benefit plus the step up three years past age 67 66, whenever your full retirement is, oh, my gosh, whenever you pass away, your spouse will be able to claim 100% of your benefit, they'll lose theirs. But your benefit most likely is higher. No, they will still have that benefit going forward. This is what's so crucial, again, about planning, because what people don't understand is that whenever a spouse passes away, what happens especially social security included, income goes down because you're losing a Social Security stream, right? But taxes go up because you're no longer a joint filer, you're now a single filer, people don't look at it that way. So there's a huge planning need there when it comes to social security. And really making sure that your spouse is taken care of once you are gone. And that's what we're passionate about. So yeah, so security, you got to do planning. You can't just say, hey, for travel needs done, I'm going to do it because people are living longer.
Trisha Stetzel:Alright, so I want to clarify one thing. I'm the breadwinner, and my husband wants to carry my bags. I'm just saying that's what he said. That's what he that's what he wants his retirement job to be. Hey, so bad. Bags.
Colton Cockerell:Yeah. You payment 70. And then he'll payments for time and age,
Trisha Stetzel:right? Yeah, exactly. Exactly. So I hear plan, plan, plan, you need a plan. You gotta have a plan. What? What about people who are out there that just they don't have they don't feel like they have enough money and savings to really approach someone in your industry and say, help me figure out a plan. What if I don't have any money in savings or anywhere else for that matter?
Colton Cockerell:No, of course. And and that's, you know, I'll kind of give you a roadmap. I just want to say when it comes to social security when it comes to retirement planning all that stuff. This is not I'm not giving anyone specific advice. This is just general information. So for example, if you're looking for a time if you don't have a lot of money build templates here. 20 25 You know, and you're you're wanting to invest. First things first, I do not think you should be investing, unless you have a adequate savings account, you gotta protect yourself with savings. So that's the number you got to figure out three, six months a year worth of savings. Once you get to that point, hey, do you have an Do you have an option for a Roth or a 401k? If you do well, hey, do you have a Do you have a Roth 401k option. If you do jump in that Roth 401k, put up to the match in that, you know, do that. And then the next step, look at opening up a Roth IRA, the difference, the reason why you want to put to the match in the Roth 401k, we're actually coming up on our time here, just Roth 401k Roth IRA, and then open up. At that point, if you want to talk to him advice for what's the next step is, but that's really the way to go. And if you don't have an option, your Roth 401k take just the traditional 401k, because you're getting 100% If you're putting up to the match, because they're gonna match exactly what you put in, why would you not do that no advisor can ever beat it. So that's my last minute, say,
Trisha Stetzel:like Todd, 9000 miles a minute. Thank you so much, Colton, for bringing your insight here today. And for us to talk about it.
Colton Cockerell:I'm looking forward to next week for sure. Because we're going to talk all about business. And it's gonna it's gonna be great. So make sure people tune in as we have a special guest. And we are going to just dive into the business world and give you some tips and tricks and just fun things to understand be looking out for the prelude as well on Friday because I will tell you all of our lineup, so we're looking forward to seeing everybody then.
Trisha Stetzel:Absolutely. So tune in next week for another exciting episode of Bridge the Gap.
Colton Cockerell:Thanks again for tuning into this week's podcast. Don't forget to subscribe and share this podcast with the most important people in your life. Colton Cockerell with Sharer McKinley Group, LLC is located at 820 South Friendswood Drive Suite 207 Friendswood, Texas 77546 phone number to 281-992-5698. Securities and investment advisory services offered through NEXT Financial Group, Inc. member FINRA/SIPC Sharer McKinley Group is not an affiliate of NEXT Financial Group, Inc.