Episode 181 - 7 Financial Steps To Take For The New Year

Transcript

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Ryan Burklo: Hello, everybody! Welcome back to beer and money. I'm. Ryan, Burklo and I'm. Alex. Cons and on today's episode. We're going to be talking about 7 financial steps

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Ryan Burklo: that you should be taking for the New Year.

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Alex Collins, ChFC, CFP: Yeah, you guys are probably listening to this and the my end of January beginning of February. We're recording this at the beginning of January.

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Alex Collins, ChFC, CFP: but it's it's just kind of

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Alex Collins, ChFC, CFP: good basic advice to start off the year. And and it's it's something that we think about every year.

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Alex Collins, ChFC, CFP: And we're we're choosing to do a podcast about it this year.

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Alex Collins, ChFC, CFP: Yeah. So before we dive into that, though, Alex. What are we drinking today? Today? We are drinking red hooks. Storm surge hazy. Ipa go figure we're drinking a hazy Ipa. That's that's so unlike us.

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Ryan Burklo: Yeah, so. And it's back to back Red Hook weeks for us. We we happen to go to Red Hook, and then we bought several of the beers, and so we we kept going with with the beer there at Red Hook.

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Ryan Burklo: And how call content comes in at 6.8, I you at 32,

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Ryan Burklo: you know I've I've never had this one. it's definitely a lighter hazy. Ipa, I've definitely had some heavier ipas out there, but it's a solid, drinkable beer. Actually, if I were to rate it out of 10 i'd probably give it an 8.

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Alex Collins, ChFC, CFP: Sure I light is the optimal word here for this beer. what attracted me to this one was was the watched a bunch of crack and hockey over the over the holiday break, and and this has a an octopus on the the can

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Alex Collins, ChFC, CFP: and so like that's 1 one of the things that attracted me to it. I never had this beer before. To me this is the it falls flat because it's 2 lights too weak. I'll. I'll give it a 5. Normally, I really like Red Hook red hooks, a great brewery. You should check it out this is not my favorite beer of theirs.

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Ryan Burklo: Yeah, so i'm gonna say, go cracking

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Ryan Burklo: and

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Ryan Burklo: check out redo brewery, their salad brewery

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Alex Collins, ChFC, CFP: absolutely red hooks! Good stuff.

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Alex Collins, ChFC, CFP: This is not my favorite offering for them.

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Ryan Burklo: So let's dive into Today's topic. Right? So it's interesting. I was talking to a perspective client rep for the break, and you know it. The the recession 2,023 type commentary was already coming out. I'm not. I think we heard recession all year in 2,022 it felt like.

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Ryan Burklo: and then it, you know it's continuing into 2,023,

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Ryan Burklo: and everyone's gotten, you know, their New Year's resolutions or their you know the may be getting nervous about their finances

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Ryan Burklo: and the client that was talking to me, You said, hey! What are?

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Ryan Burklo: What are some steps?

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Ryan Burklo: Our prospective client? What are some steps that we should be looking at in our financial lives to make sure that we are to just set up in either direction right. Whether or not the recession happens or not. 150.

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Ryan Burklo: And I said, Well, let's let's talk about that right. And so there's 7 steps that came out of that conversation.

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Ryan Burklo: and these are the standard 7 steps we would always talk about. By the way, this isn't something I made up on the fly.

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Ryan Burklo: How you how much goes into each step is what makes it personal in terms of the personal financial planning aspect.

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Ryan Burklo: But when we get into it here, step step, one is being organized. Are you organized, and that's so difficult nowadays. When you think about all of the different logins we have to all of the different institutions.

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Alex Collins, ChFC, CFP: Yeah, it. We we really have to have some sort of system or some sort of methodology for pulling it all together and being able to see it in one location.

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Alex Collins, ChFC, CFP: Good news, bad news. There's been a proliferation of these types of software that's out there.

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Alex Collins, ChFC, CFP: The one that we tend to use is is a proprietary software that we have access to called living balance sheet which is designed to keep everything in one place. and truly be a comprehensive view of your finances, and and do so it in a very

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Alex Collins, ChFC, CFP: visual manner.

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Alex Collins, ChFC, CFP: a lot of these things have a tends to be being number heavy, which, if you're an analytic like me is great. But for the average person really just kind of is a whole bunch of noise and numbers on a page that don't mean anything.

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Alex Collins, ChFC, CFP: so find something that works for you. If you're interested, we can certainly go ahead and show you what living balance sheet looks like, and you know that's part of our offering to to clients is to help them stay organized.

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Ryan Burklo: Yeah, I think the key here is, find the tool that you're actually going to use consistently

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Ryan Burklo: right like it doesn't really matter

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Ryan Burklo: the tool. As long as you're actually using it.

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Alex Collins, ChFC, CFP: It matters a little bit.

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Alex Collins, ChFC, CFP: It matters only to the fact that this is the one that you actually will use.

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Alex Collins, ChFC, CFP: The the tool has to be effective. But yeah, if you don't, use it. It doesn't matter.

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Ryan Burklo: But you know, I think this is just key. Right? How are you looking at how you look financially when there's all these different different institutions that you're logging into. How do you know what you really look like? And that's what this type of tool can show you? And

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Ryan Burklo: just if you can take that 30,000 foot view. Look, you can start to Point Point. Oh, I didn't realize that I had x amount of dollars there, or x amount of debt there, or what have you

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Ryan Burklo: which then takes us to step? Number 2, you know, for those of you who've been listening to us for a period of time here. You know that, like our number, one thing here is like cash flow the income that's coming in the door.

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Ryan Burklo: That's your most valued, most valuable financial resource. If that stops coming in the door, how does lifestyle? How does anything work out for you?

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Alex Collins, ChFC, CFP: It? The answer is not well or not for very long. Yes, this is incredibly boring.

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Alex Collins, ChFC, CFP: but it's critical, and it's important that we address worst threats. First, because if your income stops.

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Alex Collins, ChFC, CFP: Life is going to become unfun unless we have addressed this at proactively ahead of time.

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Ryan Burklo: So step number 2 is optimizing your income protection

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Ryan Burklo: right?

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Ryan Burklo: And we mean optimize, not just like check to see if you've got some of it protected.

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Ryan Burklo: You know how you know death.

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Ryan Burklo: you know sickness.

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Ryan Burklo: planning, documents, lawsuits. Those are the key areas to really look at, because if those areas hit you.

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Ryan Burklo: it's very difficult to come back, if you can, at all.

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Alex Collins, ChFC, CFP: Yeah, absolutely.

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Ryan Burklo: and so make sure you double check your auto insurance, home insurance, health insurance, disability, insurance, life insurance, andbal insurance. Have someone to talk to you about those that those areas that also know. By the way, what your financial balance sheet looks like, because those policies are protecting just that.

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Ryan Burklo: Yeah. And the reason I started to smile. There is. I used to be in the auto and home insurance arena.

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Ryan Burklo: and I didn't know any of my clients

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Ryan Burklo: what they actually look like financially on their balance sheet. I didn't know most of the time what their network was.

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Alex Collins, ChFC, CFP: which makes it hard to properly protect and have conversations around what liability limits we should have, and things of that nature, and it it simply becomes a check. The box thing of like, hey? Here are 3 options which one do you want?

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Ryan Burklo: Which then takes us to to step Number 3 here, and

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Ryan Burklo: you know I I almost maybe this could be Step number one.

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Ryan Burklo: It depends on how what and what order, and how you look at this. But step number 3 is review with your spouse.

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Ryan Burklo: your spending habit slash values.

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Alex Collins, ChFC, CFP: Yeah, this is critical. Go look at your expenses and see where you're spending money like actually, my wife and I just did this last week.

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Ryan Burklo: and we had a subscription

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Ryan Burklo: that we're paying for that.

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Ryan Burklo: We didn't know what it was

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Ryan Burklo: like. How ridiculous is that?

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Alex Collins, ChFC, CFP: Yeah.

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Ryan Burklo: And while it wasn't a lot of money, which is probably why we didn't catch it. It was like 6, 99 a month, or something like that.

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Ryan Burklo: and clearly brought 0 value, because we didn't know what it was.

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Ryan Burklo: and that's a small piece like. Just look at your expenses. Understand what your values are.

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Ryan Burklo: and are your expenses matching those values.

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Alex Collins, ChFC, CFP: and that this isn't like, go hunt and find every single like

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Alex Collins, ChFC, CFP: nickel and dime, and plan down to the penny. This is like, hey? Just make sure that you're on top of it and review it because

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Alex Collins, ChFC, CFP: if it's one subscription for 7 bucks a month.

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Alex Collins, ChFC, CFP: not a big deal.

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Alex Collins, ChFC, CFP: If you take a look at it, and you're paying 250 bucks a month for cable, and you

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Alex Collins, ChFC, CFP: barely turn on your TV

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Alex Collins, ChFC, CFP: like, okay, that's a much bigger deal, and so much of it is just having the conversation around. Okay, what do we want to be spending money on?

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Alex Collins, ChFC, CFP: What are the things that we truly care about

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Alex Collins, ChFC, CFP: and do these things line up.

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Ryan Burklo: Yeah, like, what are the categories? Right? I I know my example is like pinpointing. It's kind of like that, you know, if you don't get Starbucks a day, that's you know, $5 a day. You know that that's small stuff. And in the grand scheme of things. It's really not that important.

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Ryan Burklo: But and I gave this example probably several times at this point.

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Ryan Burklo: you know. Several years ago my wife and I looked at our our expenses, and we looked at the dining out specific expense.

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Ryan Burklo: and we were spending

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Ryan Burklo: thousands of dollars a month on dining out.

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Ryan Burklo: and both my wife and I had a conversation around like do we actually like? Is this something we really value when we both were kind of like

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Ryan Burklo: not really. We. We enjoy the occasional nice dining out like going to it. You know, John, how a steakhouse or something really nice like that. Occasionally

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Ryan Burklo: we don't enjoy going down to the sushi spot, or the burger spot, or right, or the red robin spot with the kids as often as we were. So we cut back on expenses, and it saved us like 6, 7, $800 a month.

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Alex Collins, ChFC, CFP: Yeah.

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Alex Collins, ChFC, CFP: Which then snowballs and allows you to do all of the other stuff that like if you're just living life and going through it going Well, I like.

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Alex Collins, ChFC, CFP: you know. My wife made the comment to me the other day of like. Oh, hey.

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Alex Collins, ChFC, CFP: where are our dollars going

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Alex Collins, ChFC, CFP: and like because we were having a conversation around like how things were going for the year and and things of that nature, and they were actually saving a lot more than we thought we were.

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Alex Collins, ChFC, CFP: But what winds up happening is like you just kind of go on autopilot.

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Alex Collins, ChFC, CFP: and when you're on autopilot these things pile up, and you don't think about it, and then you get to the end of the month, and you're like

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Alex Collins, ChFC, CFP: where the heck does all our money. Where did the money go? Right?

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Ryan Burklo: So if it doesn't fit, those values, cut it

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Ryan Burklo: right, and maybe you don't find the $800 a month dining out, bill that I was just talking about.

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Ryan Burklo: But maybe it adds up to 100 or a couple 100 bucks

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Ryan Burklo: right, even if it adds up to 50 bucks. It's still 50 bucks that you you knew you shouldn't like you didn't really care about

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Alex Collins, ChFC, CFP: one. I mean. Think about it from this standpoint. If it took you an hour hour and a half

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Alex Collins, ChFC, CFP: to dig through stuff, have the conversation, and you know that you're on the right path.

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Alex Collins, ChFC, CFP: and then all the things that that money is valuable. Oh, that's a massively valuable If you spend the hour and a half and you find 50 bucks.

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Alex Collins, ChFC, CFP: That's not like you're not paying yourself.

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Alex Collins, ChFC, CFP: Would that be 33 bucks an hour or whatever

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Alex Collins, ChFC, CFP: like it's not that

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Alex Collins, ChFC, CFP: because you're paying yourself

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Alex Collins, ChFC, CFP: 33 bucks an hour

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Alex Collins, ChFC, CFP: now for not for work, that you're not doing, moving forward and so the value there is tremendous.

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Alex Collins, ChFC, CFP: and, like I'd encourage you to think about like, okay, how long is it really going to take me to sit down and go through my finances

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Alex Collins, ChFC, CFP: and like, okay, if you find

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Alex Collins, ChFC, CFP: 50 bucks a month. The 100 bucks a month, whatever it winds up being is that worth it?

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Ryan Burklo: 100%

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Ryan Burklo: which

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Ryan Burklo: this transitions transition says transitions. If I could speak today transitions us to step number 4,

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Ryan Burklo: which is having some set of cash reserves, or some people will like to call it maybe an emergency fund

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Ryan Burklo: right?

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Ryan Burklo: This is critical. Make sure we have savings set aside, or, I apologize. Make sure you have savings set aside

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Ryan Burklo: and consider, adding more to it this year.

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Alex Collins, ChFC, CFP: It it amazes me how often we have the conversation with folks.

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Alex Collins, ChFC, CFP: and

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Alex Collins, ChFC, CFP: they're like like we asked the question like, hey, do you have an emergency reserve. And they're like, Yes, absolutely okay. Great. How much do you have?

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Alex Collins, ChFC, CFP: And in almost inevitably, it's less than one month's worth of income.

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Ryan Burklo: and that it doesn't matter the cache that's coming in the door right? The these are people making 7 figures. These are people making you know $7,500. It's one month.

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Alex Collins, ChFC, CFP: right?

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Alex Collins, ChFC, CFP: And we asked the question like, okay, cool. How long could you go without a paycheck before it'd be a problem?

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Alex Collins, ChFC, CFP: And almost immediately. You see this light bulb come off, come on over their head like

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Alex Collins, ChFC, CFP: Oh, that that number needs to be bigger.

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Alex Collins, ChFC, CFP: Yeah. And like every single person like we had a client that was talking today about how they're

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Alex Collins, ChFC, CFP: They were worried about the rate of return that they were getting on their emergency reserve type, money.

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Alex Collins, ChFC, CFP: and like we've done a couple of podcasts on this.

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Alex Collins, ChFC, CFP: It is not the rate of return that you get on your monthly reserve money. It is the fact that you have to have an emergency reserve.

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Alex Collins, ChFC, CFP: and you need to make make sure that you have liquid accessible assets.

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Alex Collins, ChFC, CFP: and

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Alex Collins, ChFC, CFP: we want to try and optimize whatever we're getting in terms of rate return.

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Alex Collins, ChFC, CFP: Given

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Alex Collins, ChFC, CFP: the style and the structure and the characteristics of that money, we want it to be safe. We want it to be liquid. We want it to grow

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Alex Collins, ChFC, CFP: with those constraints. Yeah, we're not going to get a great rate of return.

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Alex Collins, ChFC, CFP: and it's not about rate of return. It's about missing out on opportunity.

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Alex Collins, ChFC, CFP: How many times have we heard?

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Ryan Burklo: You know, someone will say, Well, if I only had money during the 8 crash, or if I only had money to invest in that business, or to buy that company stock, or you know, if I only.

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Ryan Burklo: and then we'll on the that's on one side of the mouth, and then on the other side of the mouth. They're saying, Well, I don't want to sit on that much savings because I want to raider. I want to get rate of return

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Ryan Burklo: right. And really what they're saying is.

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Ryan Burklo: I just don't want to save that money, because I i'm spending it.

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Alex Collins, ChFC, CFP: But that's what's really a current.

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Alex Collins, ChFC, CFP: Yes.

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Alex Collins, ChFC, CFP: a 100, and it like so much of this conversation comes back to how much of your money you want in the market. How much do you of your money do you want out of the market, and understanding the difference between the 2 and what those things do for you

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Alex Collins, ChFC, CFP: and they. We have done a couple of podcasts on in the money in the market versus out of the market. What that means.

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Alex Collins, ChFC, CFP: because we're not just talking about the stock market there we're talking about any

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Alex Collins, ChFC, CFP: any

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Alex Collins, ChFC, CFP: opinion based asset versus a promise based asset.

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Ryan Burklo: Yeah. So so cash reserves is not about rate of return. Make sure we've got cash in on the sideline. This allows, for you know the stereotypical peace of mind which, while it is stereotypical, it's also true.

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Ryan Burklo: What's funny to me is is as we bring on clients out. This this

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Ryan Burklo: it just came to my, to to my mind.

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Ryan Burklo: when this client came on board.

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Ryan Burklo: They were very much, you know. They had this the standard one month of savings

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Ryan Burklo: they gave the standard. I don't want to, you know. I don't want the way to return conversation right. I don't want too much money sitting my savings because I want to get a way to return.

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Ryan Burklo: But that that standard thing.

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Ryan Burklo: you know, through our process and through the coaching and through just engagement with them and getting to know them

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Ryan Burklo: Now they've got like 12 months sitting in cash.

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Ryan Burklo: 12 months of income sitting in cash.

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Ryan Burklo: and the person this was last year, said

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Ryan Burklo: Ryan. I can't tell you

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Ryan Burklo: how much less stress I have financially, because that much that money is sitting there.

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Ryan Burklo: and I made the joke to her, I said, that's funny, considering. Remember how much you add in there when you first met me.

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Ryan Burklo: and she goes. What do you mean? And I pulled up

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Ryan Burklo: right the initial intake

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Ryan Burklo: She was holy smokes. I didn't know that

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Alex Collins, ChFC, CFP: what you

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Alex Collins, ChFC, CFP: there is so like. I I had this experience, not with finance, but with like muscles.

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Alex Collins, ChFC, CFP: so like

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Alex Collins, ChFC, CFP: one of the gifts that I was, that that my family was given over the holidays was like one of those pneumatic like

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Alex Collins, ChFC, CFP: things, for after workout which is designed to like the the real terminology for those you listing.

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Alex Collins, ChFC, CFP: So I got one of those.

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Alex Collins, ChFC, CFP: and I was starting to use it, and like 1020 min into using it. I was like

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Alex Collins, ChFC, CFP: holy count. I did not realize I was carrying that much tension

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Alex Collins, ChFC, CFP: in my shoulders and upper back.

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Alex Collins, ChFC, CFP: which is then going to cause a cascade of like

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Alex Collins, ChFC, CFP: Well, that's gonna give me more tension headaches that's gonna like tighten up my low back. It's gonna restrict some of my movement in my arms. And, like all of these other cascade of effects that occur.

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Alex Collins, ChFC, CFP: there is way too many times when people do not realize the amount of tension that they are creating in their financial world

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Alex Collins, ChFC, CFP: simply by not having

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Alex Collins, ChFC, CFP: proper emergency, reserve and proper liquidity.

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Ryan Burklo: It's what you again it. We've said this before it's what you don't know. You don't know

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Ryan Burklo: you've You've just been living that way for so long

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Alex Collins, ChFC, CFP: it becomes normal, and you don't realize it.

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Alex Collins, ChFC, CFP: And then, once you relieve that stress, you get the exact response that your client gave you of like

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Alex Collins, ChFC, CFP: this feels so amazing, and you feel taller, you feel more confident You get all these crazy things that occur right? 100%

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Ryan Burklo: which takes us to step Number 5 right? We've got the cash reserves. Step Number 5 is well. Make sure you continue to keep

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Ryan Burklo: your high interest debt

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Ryan Burklo: paid off.

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Ryan Burklo: This is not the time

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Ryan Burklo: to go. Spend $10,000 on a vacation

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Ryan Burklo: and pay it back in monthly installments

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Ryan Burklo: on a credit card. That is

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Ryan Burklo: right. Like how often do we hear? I hear it all the time like. Oh, I went on vacation, my family and I needed to vacation, and we were just going to pay off the credit card over a monthly installments. Why would you take the vacation? Oh, like 5 years ago

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Alex Collins, ChFC, CFP: out

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Ryan Burklo: right? So keep like Don't get high interest rate like you've got high interest rate rate debt.

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Ryan Burklo: Get it paid off.

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Alex Collins, ChFC, CFP: Yeah.

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Ryan Burklo: And if you don't have it, let's not go into it.

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Alex Collins, ChFC, CFP: Well, and this is incredibly.

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Alex Collins, ChFC, CFP: incredibly good timing to have some of these conversations like

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Ryan Burklo: given where interest rates are are and are going to seem to be going. That's that's part of it. But also

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Alex Collins, ChFC, CFP: the I know that you and your family do not have this issue.

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Alex Collins, ChFC, CFP: and that is very, very, very atypical for Americans.

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Alex Collins, ChFC, CFP: People spend way too much money at the holidays, giving gifts

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Alex Collins, ChFC, CFP: and it

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Alex Collins, ChFC, CFP: like, Really, if you think back the meaningful, the meaningful things that you receive. And like, if I think back on that

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Alex Collins, ChFC, CFP: the the last 2 3 weeks.

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Alex Collins, ChFC, CFP: the things that i'm grateful for

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Alex Collins, ChFC, CFP: have nothing to do with any of the stuff that I've been given.

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Alex Collins, ChFC, CFP: Is it cool? Yeah, absolutely. I am internally grateful for all the gifts and all of the the things that I have been given.

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Alex Collins, ChFC, CFP: However, it's the time spent with my father-in-law, who made the trek over the mountains to come visit with us, and we had a wonderful like 5, 6 days.

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Alex Collins, ChFC, CFP: and it it's it's the first time we'd seen him in quite a while because of the pandemic

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Alex Collins, ChFC, CFP: it was that

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Alex Collins, ChFC, CFP: not

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Alex Collins, ChFC, CFP: the the stuff that he brought with him like again. Don't get me wrong. This stuff was really cool.

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Alex Collins, ChFC, CFP: but it was

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Alex Collins, ChFC, CFP: getting to watch, crack, and hockey with them, getting to go tinker around in the garage and work on building some stuff.

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Alex Collins, ChFC, CFP: It's that type of stuff. It's. It's the

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Alex Collins, ChFC, CFP: it's the experiences that are meaningful. It's the people that are meaningful. It's the memories that are meaningful, not the stuff.

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Ryan Burklo: Yeah. And it's hard to do right.

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Ryan Burklo: It. It's hard not to want stuff even I. You know I've told you the deal about the car. There's still stuff that I actually go and buy like I got the new iphone 14 pro

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Ryan Burklo: right.

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Ryan Burklo: I'm funny, which is funny, because i'm not it. I don't like tech, but I buy a lot of it. and it'd be fair. It's actually brought down my verizon bill so technically didn't it actually lowered my monthly bill. But that's not the point point is I still would have bought it without it, right.

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Ryan Burklo: and that's fine like it's fun to go do that. But just know, like you can't do it all the time, like if I went and bought every new tech piece that I wanted, or every new like sports memorabilia thing that I wanted. I'd have no money

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Alex Collins, ChFC, CFP: all right, quick, Tip, for anybody who has Verizon, by the way.

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Alex Collins, ChFC, CFP: go out and sign up for their automatic bill. Pay not via credit card, but via bank account. You'll save 50 bucks a month.

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Ryan Burklo: There you go, Alex, saving money with Verizon.

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Ryan Burklo: So let's not go into debt. Let's especially in high interest rate, Deb. So that's number 5,

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Ryan Burklo: and then step number 6.

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Ryan Burklo: Continue to invest. Continue to invest the way that you were investing

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Alex Collins, ChFC, CFP: so much of this one. Ryan comes down to how you define an investing.

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Ryan Burklo: Yeah.

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Ryan Burklo: So once you define it for them, then

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Alex Collins, ChFC, CFP: it investing is where you stick to a long-term plan and it is just that

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Alex Collins, ChFC, CFP: a plan

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Alex Collins, ChFC, CFP: and long-term.

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Alex Collins, ChFC, CFP: We really need to understand the definition of invest, and compare and contrast that with speculation

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Alex Collins, ChFC, CFP: like we the the fact that there may or may not be.

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Alex Collins, ChFC, CFP: A recession.

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Alex Collins, ChFC, CFP: should not enter into what we're going to do

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Alex Collins, ChFC, CFP: from an investment standpoint, because investments should be long term by nature.

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Alex Collins, ChFC, CFP: and a short-term recession should not affect that decision one way or the other.

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Alex Collins, ChFC, CFP: because we are 100% going to get the timing wrong. If we get the timing right. It is by luck, not by

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Alex Collins, ChFC, CFP: not by skill, not by not by intentionality.

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Ryan Burklo: What no one's been able to time it consistently

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Ryan Burklo: for a long period of time, because, as I say, jokingly and seriously, there'd be a statue of them on Wall Street. Not the bull.

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Ryan Burklo: Yeah, right. So continue to invest.

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Ryan Burklo: Make sure you have your investment philosophy. Make sure you're you're holding for the long-term plan.

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Ryan Burklo: and you're not speculating.

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Ryan Burklo: and then step number 7, and I think step. Number 7 is a key ingredient because we are all human.

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Ryan Burklo: Some would argue that maybe i'm not. But I am

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Ryan Burklo: but leverage someone that you trust

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Ryan Burklo: financially.

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Alex Collins, ChFC, CFP: Remember, I mean, use them as a mentor. Use them as a sounding board. Pick their brain

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Ryan Burklo: right? Someone that is

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Ryan Burklo: knowledgeable as well as will tell you that they don't know the answer.

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Alex Collins, ChFC, CFP: Yeah, I mean

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Alex Collins, ChFC, CFP: for you and I, or at least for me.

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Alex Collins, ChFC, CFP: You are a good part of that sounding board like You're one of the people that I trust that I Well, I've spent

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Alex Collins, ChFC, CFP: what 20 plus years of my life

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Alex Collins, ChFC, CFP: doing this, and have gone through an extensive amount of training, and spent inordinate amount of hours dealing with this stuff.

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Alex Collins, ChFC, CFP: I also know I don't know everything there is to know about finance, and never will.

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Alex Collins, ChFC, CFP: and I need experts and people to even just bounce ideas off of of like. Hey, what am I thinking about this correctly? Is there anything that i'm missing here.

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Alex Collins, ChFC, CFP: You've done that with me periodically. I thought it was funny. One of the things like one of the conversations of my wife and I had

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Alex Collins, ChFC, CFP: was like, oh, hey, what do we do in this circumstance? For this situation? My response was, oh, we'll call Ryan, and she goes. Yeah, that's great, but I don't want to just call Ryan. I need to know like more details. It's like, Yep, 100 you do, and at the same time call Ryan.

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Ryan Burklo: Well, a I appreciate that. And be it's a solid point. You bring up right that these are why you want to have people in your life that you trust.

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Ryan Burklo: so that you can bounce those ideas off of one another because the fact of the matter is, you have biases.

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Ryan Burklo: I have biases, we all have biases, especially when it comes our own personal financial situation.

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Ryan Burklo: And even though you and I are in the industry

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Ryan Burklo: when it comes to our personal stuff.

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Ryan Burklo: We have that bias that sometimes we forget that we do, and you will call me out on it, and I hopefully, we'll call you out on it that brings that equilibrium back to the financial picture.

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Alex Collins, ChFC, CFP: One of the things that I think is important for to not gloss over in that conversation

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Alex Collins, ChFC, CFP: is Well, I have someone that I leverage. And I trust.

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Alex Collins, ChFC, CFP: Hmm, Ryan. How many times have you met with heather?

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Ryan Burklo: financially?

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Alex Collins, ChFC, CFP: Yeah.

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Ryan Burklo: never

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Alex Collins, ChFC, CFP: So like. And that is like I just realized as we're having this conversation.

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Alex Collins, ChFC, CFP: That's one of the components that needs to change, and that's why I got the answer that I did.

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Alex Collins, ChFC, CFP: was

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Alex Collins, ChFC, CFP: she doesn't know you like? I know you, she doesn't trust you financially, like I trust you financially, because she hasn't been in any of those conversations.

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Alex Collins, ChFC, CFP: and that is absolutely applicable to our clients is, Make sure that your spouse, your loved ones, the people that are going to be there

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Alex Collins, ChFC, CFP: for you if you're incapacitated.

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Alex Collins, ChFC, CFP: or are going to be there to pick up the pieces If you're no longer here.

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Alex Collins, ChFC, CFP: have these conversations

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Alex Collins, ChFC, CFP: inside of

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Alex Collins, ChFC, CFP: like that. They know who to go, and who to go to, and why to go to them, and what they can expect when they have those conversations.

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Ryan Burklo: and i'll take that a step further. It's not just about your spouse. It might be about. If you're older, you maybe your adult children.

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Ryan Burklo: or if you're younger, or maybe you're an adult, and you've got, you know, parents right also speaks in your parents like anyone that that you care about.

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Ryan Burklo: that might have any kind of say or

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Ryan Burklo: implication, or anything, when it comes to that, they should know what's going on.

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Alex Collins, ChFC, CFP: Absolutely make sure they brought into the picture.

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Ryan Burklo: So those are the 7 steps to take for the year 2,023, financially speaking, which takes us to the question of the day. Alex

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Alex Collins, ChFC, CFP: Our Our question today is, what steps are you currently taking financially and plan to take for this year?

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Ryan Burklo: So head over to beer and money net, and at the top of the pages a contact us, page, and there's a spot for you to answer either that question of the day.

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Ryan Burklo: or

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Ryan Burklo: if you have any further questions or ideas that came from this episode. That's a great way to reach us.

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Ryan Burklo: And lastly, it's a great way to reach us. If you have personal questions that you would like to us to talk to you personally about.

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Ryan Burklo: As always, we hope this episode was valuable for you and Mr. Collins.

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Alex Collins, ChFC, CFP: Yours.

This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Quantified Financial Partners and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value. This material is intended for general public use. By providing this content, Park Avenue Securities LLC is not undertaking to provide investment advice or a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.

Ryan & Alex are Registered Representatives and Financial Advisors of Park Avenue Securities LLC (PAS). OSJ: 200 Market Street Ste. 1850, Portland OR 97201 Ph 503-221-1226. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representatives of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly-owned subsidiary of Guardian. Quantified Financial Partners is not an affiliate or subsidiary of PAS or Guardian. Ryan Burklo, AR Insurance License # 15319412, CA Insurance License # 0K24924, Alexander Collins AR Insurance License # 7264699, CA Insurance License # 0H24806. #2023-148987 Exp 01/2025

Episode 181 - 7 Financial Steps To Take For The New Year

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