Recent Client Projects
So what does a financial advisor REALLY do?
Happy Wednesday my friends!
In last week’s letter, I included a Wall Street Journal article I’d really encourage you to read. Unfortunately, many of you let me know that it was behind a paywall despite my double-checking it before hitting send.
Sorry ‘bout that.
Oh well, live and learn. In addition to updating the link in last week’s letter, here it is again in a format you can definitely access and read:
And while I’m no multi-billion-dollar fund manager, I thought I’d share a little about my daily reality of being a financial advisor.
You may have seen these “what I do” memes floating around the internet:
And there’s not shortage of confusion and misconceptions around what real financial advisors do either.
Many people think of me simply as an investment guy.
And that’s absolutely an important part of the work I do for my clients.
But it’s only just a part…
Just in the last couple of weeks, I have:
Discussed with a client what to do with her 2022 bonus and long-term incentive pay… I suggested and she ultimately decided to recast her mortgage to both lower her balance and lower her monthly payments because reducing her mortgage debt is important to her. This will free up her monthly cash flow and give her the opportunity to redirect some of those funds into her long-term investment plan AND have more discretionary income while her children are young.
I had a conference call with a client and her divorce attorney to continue discussing her divorce settlement negotiations with her husband and the impact these different settlement proposal will have on her long-term lifestyle.
I’m working with a client to establish a securities-based line of credit to provide additional liquidity as he’s building a 2nd home. He doesn’t plan to use this line of credit, but we agreed that it’s smart to have it in place just in case.
I’ve had a couple of Zoom meetings with colleagues to discuss new technology that could help me better serve my clients. And I’ve had software demos with some of these technology vendors.
A client reached out and told me that the 20-year term life insurance policies on he and his wife are terminating in the next couple of months and he asked if they should replace them with new policies? I updated his financial plan showing the impact if he or his wife were to suddenly pass away today without any insurance, and sent him a short overview video walking through my conclusions. I also asked - and he confirmed - that he has disability insurance in place which is important while he continues to work.
I have a handful of clients who are retiring in the next 2-3 months, and am working with all of them to plan for this major life transition, answer their questions, and help them get comfortable with the switch from a lifetime of earning and saving to now using their accumulated savings and investments to support their lifestyle. We’re also discussing when to start Social Security benefits, how to make the best Medicare coverage decision, and more.
I’m working with a 3rd party insurance expert to help me evaluate a client’s large variable universal life insurance policy that he started as an additional savings vehicle through his employer. We’re exploring his options now that he’s retiring and he doesn’t really need the life insurance component attached to this pool of money.
And I’ve had conversations with some really nice people who were interested in learning more about working with me. Most of these people were referred to me by clients or other professionals, and some found me via my website. Or through these weekly letters! 😁
In addition to all the above - and only possible with the help and support of my team - there’s always a lot going on.
And you know what?
I absolutely love it.
It’s interesting work with nice people, and as I’ve written about before, money touches virtually every aspect of our lives. So there’s never a shortage of things to discuss, evaluate, and consider.
As I hope you’ll see from the examples above, it’s about much more than just investments.
And I like to think of myself as much more than just an “investment guy.”
In fact, investments are the least interesting part of my work.
For me, at least.
But wait, there’s more…
I’m also dealing with things like:
Required Minimum Distributions
Tax Planning
Charitable Giving Strategies
Retirement Income Planning and Adjustments
Estate Planning Reviews and Discussions
Long Term Care Insurance Quotes and Evaluations
College Planning for Children and Grandchildren
And the list goes on…
And I also enjoy finding time to write this weekly letter to you 😉
Let me also say that many people call themselves “financial advisors.”
And I truly believe - or want to believe - that most of them are genuinely concerned about the well-being of their clients and are giving advice and guidance on this basis.
Unfortunately, we all know that there are and always will be some bad actors out there.
I shudder to think about what goes through the minds of these charlatans on a day-to-day basis, though I have some suspicions…
A quick search of “financial advisor arrested” will give you a peek into some of the low-lifes that call themselves a financial advisor.
Right here in Atlanta, this guy seems to have disappeared back in 2020 and is still wanted by the FBI.
So be careful out there, whether you’re tackling financial and retirement planning yourself or working with an advisor.
And make sure your advisor is truly a professional and not just someone who thinks of you as their next sales opportunity… or worse.
Any questions, thoughts, or comments on any of the above?
Just hit reply and let me know what’s on your mind.
Links & things
A Different Kind of List
This recent Jonathan Clements article immediately resonated with me.
So much financial media and advice is about what you should do or what you should own, that I found his list of what he doesn’t own and why a refreshing take on things.
Give it a read and let me know what you think:
And with just a couple of exceptions, I agree with his conclusions and also don’t own most of what’s on this list.
Can you guess what I own that Mr. Clements does not?
Are You Leaving Money on the Table?
With the recent rise in interest rates, there are several options to earn more on your cash balances. But unsurprisingly many big banks have been slow to increase the interest they’re offering on checking, savings, and money market balances.
As this NPR article highlights, you can and perhaps should explore your options to see if you can get a little more money on your money:
Also, NPR needs to work on their editing as there’s an error in the article. Did you catch it?
For example, as I write this here are some available rates:
Ally Bank Savings: 3.40%
Capital One Savings: 3.40%
American Express Savings: 3.50%
StoneCastle FICA Savings: 4.16%
All of the above are FDIC insured, and StoneCastle can actually offer FDIC insurance up to a balance of $25 million per person.
As I wrote in this letter from a couple of years ago, I’m not really sure why most people continue to work with the big banks.
It’s your call, but you could be leaving some money on the table and dealing with big bank headaches you could likely avoid elsewhere.
Thank You!
I’m grateful to have you as a reader.
If you have any questions or an idea for a future newsletter, blog post, or YouTube video, I'd love your input.
Just hit reply - I read (and truly appreciate) every email you send.
Until next Wednesday,
Russ