Artwork for podcast Enjoy More 30s: Family Finance
Advisors Aren't Candy Bars | Series 4.8
Episode 830th August 2021 • Enjoy More 30s: Family Finance • Joseph P. Okaly
00:00:00 00:10:30

Share Episode

Shownotes

They may all call themselves advisors, but they are all almost certainly not the same!

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA / SIPC. TFS Securities, Inc. is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Transcripts

Voiceover Audio:

Welcome to the EnjoyMore30s Family Finance

Voiceover Audio:

podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families by hitting on the financial topics

Voiceover Audio:

that tend to weigh on us, stress us out, and distract our focus

Voiceover Audio:

from simply enjoying life.

Joseph Okaly:

Hello, and welcome once again to the EnjoyMore30s

Joseph Okaly:

Family Finance Podcast, where every week we're tackling some

Joseph Okaly:

of those main questions that young families face around

Joseph Okaly:

finances, so that you can remove that financial anxiety, take

Joseph Okaly:

great steps forward early in life, and just free yourself up

Joseph Okaly:

to spend more time making life enjoyable. Now we are already on

Joseph Okaly:

the eighth and final episode of this Your Major Money Misnomers

Joseph Okaly:

series and what we've been doing so far in this series is

Joseph Okaly:

focusing on some of those major misunderstandings, those

Joseph Okaly:

misconceptions, that I see most often being an advisor. Now, as

Joseph Okaly:

always, if you like what you're hearing, please make sure to

Joseph Okaly:

subscribe or follow us on Apple podcast wherever you listen.

Joseph Okaly:

Clicking that star, leaving a review, it honestly really,

Joseph Okaly:

really helps us reach other young families out there.

Joseph Okaly:

Now last week, if you remember, we discussed 'Don't Worry, We

Joseph Okaly:

Are All Emotional Investors', where we covered why emotions

Joseph Okaly:

tend to play such a big and frankly unwelcomed part in

Joseph Okaly:

investing and what you can do to try and not have that work to

Joseph Okaly:

your detriment. So check that out if you have not already.

Joseph Okaly:

Today though, our title is 'Advisors Aren't Candy Bars',

Joseph Okaly:

where we're going to discuss what you need to know about the

Joseph Okaly:

many different types of advisors out there and what you can do to

Joseph Okaly:

make sure that you find one that really is a good fit for you.

Joseph Okaly:

Now, everybody has a different favorite candy bar growing up

Joseph Okaly:

right? When I was a kid, my favorite candy bar by far were

Joseph Okaly:

Reese's Peanut Butter Cups. If you heard the last episode I

Joseph Okaly:

did, I'm not that much of a sweet tooth anymore, but at the

Joseph Okaly:

time, it was definitely my favorite. Now not exactly what

Joseph Okaly:

you're supposed to do, I know, but when you go to the movie

Joseph Okaly:

theater, if you're like me, you may happen to buy a Reese's

Joseph Okaly:

Peanut Butter Cup at the grocery store before you go to the movie

Joseph Okaly:

theater because it is much much cheaper than buying it there.

Joseph Okaly:

The one at the theater wasn't any better. It was exactly the

Joseph Okaly:

same tasting Reese's Peanut Butter Cup, but it was just

Joseph Okaly:

double the price. I'd rather have two! So I know listening

Joseph Okaly:

now many of you probably have done that same thing before. And

Joseph Okaly:

I honestly would probably have a little bit of a hard time

Joseph Okaly:

believing if you've never done this at any point in your life.

Joseph Okaly:

But you know, hey, maybe there there are some people out there

Joseph Okaly:

that follow the rules exactly when it comes to that.

Joseph Okaly:

The movie theater that we wanted to go to though that decision

Joseph Okaly:

was different. We had a bunch of different movie theaters that we

Joseph Okaly:

could choose from. They were all movie theaters, they all they

Joseph Okaly:

were all showing that same exact movie, but they weren't all the

Joseph Okaly:

same, like the Reese's Peanut Butter Cups. One was cheaper, I

Joseph Okaly:

think it was closer to our home. Another had really comfy seats.

Joseph Okaly:

Another one had those really big IMAX screens. And so what you

Joseph Okaly:

need to know is we come across many people believing advisors

Joseph Okaly:

are consistent, like a candy bar, like my Reese's Peanut

Joseph Okaly:

Butter Cup, when they actually can have a lot of variety like

Joseph Okaly:

the movie theaters.

Joseph Okaly:

So you know when you think about it, an advisor in general is

Joseph Okaly:

just someone that's out there giving you advice. That's it.

Joseph Okaly:

But what they're licensed for and their approach, it greatly

Joseph Okaly:

influences what your experience with them may be. So for

Joseph Okaly:

starters, licensing initially dictates what they're even

Joseph Okaly:

allowed to discuss with you. So let's say that someone is only

Joseph Okaly:

licensed for you know insurance. That means they can only discuss

Joseph Okaly:

life insurance, maybe some fixed annuities with you. That's it,

Joseph Okaly:

they can't discuss investments because they're not licensed for

Joseph Okaly:

investments. Now, on the flip side, if they're only licensed

Joseph Okaly:

for investments, then they can't evaluate your insurance needs.

Joseph Okaly:

So the licensing is really important to know because it

Joseph Okaly:

dictates what they're allowed to discuss.

Joseph Okaly:

When it comes to investments, there are even different types

Joseph Okaly:

of licensing. So someone may only be licensed for licensed

Joseph Okaly:

for commission products, which would be you know, you put money

Joseph Okaly:

into it into an investment, the advisor gets a commission

Joseph Okaly:

upfront and that's it. While some advisors are also licensed

Joseph Okaly:

to use managed or fee based products as well. So it has an

Joseph Okaly:

ongoing management fee, because there's ongoing management on

Joseph Okaly:

the account with them. Maybe there's financial planning in

Joseph Okaly:

that as well. So there are different structures that they

Joseph Okaly:

could use. And we haven't even gotten to all the designations

Joseph Okaly:

yet. So you might see a CFP, CFA or honestly a million other

Joseph Okaly:

different designations out there. And so what you get to is

Joseph Okaly:

this combination of licensing and designations, that can also

Joseph Okaly:

dictate even whether that advisor has to act as a

Joseph Okaly:

fiduciary or not, which the word fiduciary is really just a fancy

Joseph Okaly:

way of saying legally having to put your interests ahead of

Joseph Okaly:

their own interests.

Joseph Okaly:

On top of that now is their actual approach, meaning what do

Joseph Okaly:

they focus on? For whom? Is their approach investment focus,

Joseph Okaly:

planning focused? Are they working with middle class

Joseph Okaly:

people, high net worth people, maybe individuals versus family,

Joseph Okaly:

young, old. And you can see there's a lot of possible

Joseph Okaly:

combinations that can quickly escalate. And the really, really

Joseph Okaly:

unfortunate part about this is that it can be really difficult

Joseph Okaly:

now, for you, the consumer, when you're searching to find an

Joseph Okaly:

advisor, and you want one that best fits for what you're

Joseph Okaly:

looking for, and to compare it with somebody else and what

Joseph Okaly:

they're offering and what that may cost, because everyone tends

Joseph Okaly:

to be under this general, you know, quote, unquote, we help

Joseph Okaly:

people with their finances blanket statement.

Joseph Okaly:

So what you can do to help get through this is to ask

Joseph Okaly:

questions, and by the more questions you ask, the more you

Joseph Okaly:

understand them, and what they do. And you can find out if any

Joseph Okaly:

particular advisor out there is a good fit for what you are

Joseph Okaly:

looking for. So I would strongly, strongly encourage you

Joseph Okaly:

to ask a lot of questions like, you know, what licensing they

Joseph Okaly:

have, what designations they have, why did they choose to get

Joseph Okaly:

those designations? What kind of people, you know, their firm

Joseph Okaly:

prefers to work with? How many clients do they have overall?

Joseph Okaly:

How much staff do they have? What do they focus on

Joseph Okaly:

investments, insurance, planning? How often do they

Joseph Okaly:

communicate with you? What should you expect from the

Joseph Okaly:

relationship? All of these questions are really great to

Joseph Okaly:

get a full understanding of who you're dealing with, and what

Joseph Okaly:

they're giving you and what they specialize in to see if they're

Joseph Okaly:

a great fit for what you're looking for.

Joseph Okaly:

And as an advisor, myself, I consider all of this fair game.

Joseph Okaly:

I can answer all of these questions so I think it's fair

Joseph Okaly:

to say I expect every other advisor out there to be able to

Joseph Okaly:

answer these questions. So for example, I'm licensed for all

Joseph Okaly:

securities. So all investments that means whether they're

Joseph Okaly:

commission or fee based, as well as life, health, disability,

Joseph Okaly:

long term care insurances. I'm also mortgage originator in New

Joseph Okaly:

Jersey. I have my CFP or Certified Financial Planner

Joseph Okaly:

designation, which I got specifically because we focus on

Joseph Okaly:

comprehensive, holistic planning for our clients at my firm. We

Joseph Okaly:

work overall at this firm with middle class families,

Joseph Okaly:

particularly younger families or those 10 years away from

Joseph Okaly:

retirement or more, so there's time for us to really help them.

Joseph Okaly:

We focus on planning, so arranging investments,

Joseph Okaly:

insurance, cash flow, all that good stuff to point in that same

Joseph Okaly:

direction, so that they can best achieve what would make you

Joseph Okaly:

happiest in your life, which equates to what your what your

Joseph Okaly:

goals are, right?

Joseph Okaly:

So who am I not a good fit for? That means I am not a good fit

Joseph Okaly:

for a lot of people out there. I'm not a good fit for, let's

Joseph Okaly:

say, a single super high net worth individual that just wants

Joseph Okaly:

help stock picking, or a company that is looking for life

Joseph Okaly:

insurance to help cover some of the important members of the

Joseph Okaly:

company. I'm not a good fit for either of those situations. But

Joseph Okaly:

I'm sure there is someone who is a perfect fit for those

Joseph Okaly:

situations out there.

Joseph Okaly:

I will freely admit, of course, I am biased that having an

Joseph Okaly:

advisor is a benefit to most people out there. Because you

Joseph Okaly:

know, hey, I'm an advisor. And if I didn't think that I should

Joseph Okaly:

probably have a different job. But it really, really, really

Joseph Okaly:

needs to be the right one and the right fit for you. You need

Joseph Okaly:

to be clear on who you're working with and if they're a

Joseph Okaly:

good fit for what you specifically are looking for.

Joseph Okaly:

And if you don't want an advisor, you know, hey, that's

Joseph Okaly:

fine too. But hopefully after today, you're at least walking

Joseph Okaly:

away from this episode having a better idea of how you know

Joseph Okaly:

every advisor out there is not the same. They're not all candy

Joseph Okaly:

bars. And if you ever wanted to, you could likely find one that

Joseph Okaly:

is a fit for exactly what you want and what you're wanting

Joseph Okaly:

help in doing.

Joseph Okaly:

Thanks very much for tuning in today. As always, if you're able

Joseph Okaly:

to implement what we're covering that is fantastic, less to worry

Joseph Okaly:

about, less anxiety, full time to just focus on making life as

Joseph Okaly:

enjoyable as possible. If you are wanting help with these

Joseph Okaly:

things, though, please do not hesitate. You have questions,

Joseph Okaly:

anything like that, want to clarify something, check out the

Joseph Okaly:

Ask Joe section on the show's website www.enjoymore30s.com.

Joseph Okaly:

That's www.enjoymore30s.com. And of course if you're enjoying the

Joseph Okaly:

show, subscribe, review us again on Apple podcasts, wherever you

Joseph Okaly:

listen. There are literally millions of young families out

Joseph Okaly:

there I'm trying to reach and help just like you. And just

Joseph Okaly:

like that we have another series down, Your Major Money

Joseph Okaly:

Misnomers. Can't believe that already puts another one in the

Joseph Okaly:

books. But next week, we will have a fantastic recap for you.

Joseph Okaly:

We're going to cover all eight of these major money misnomer

Joseph Okaly:

items so that you have what you need to help take action

Joseph Okaly:

anywhere you have not already. So until next week, thanks for

Joseph Okaly:

joining me today and I look forward to connecting with you

Joseph Okaly:

again soon.

Voiceover Audio:

The conversations on this show are

Voiceover Audio:

Joe's opinions and provided for general information purposes

Voiceover Audio:

only. They do not constitute accounting, legal, tax or other

Voiceover Audio:

professional advice for your specific situation. You should

Voiceover Audio:

always seek appropriate advice from a financial advisor,

Voiceover Audio:

accountant, lawyer or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

Voiceover Audio:

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

of TFS Securities, Inc., and TFS Advisory Services an SEC

Voiceover Audio:

registered Investment Advisor member FINRA/SIPC.

Links

Chapters

Video

More from YouTube