October 17, 2024 • 31 mins
Hey Business on the Brink listeners we think you'll love this show from Financial expert Josh Jaliniski.
Step into the financial end zone with "The Financial Quarterback® Podcast with Josh Jalinski," your weekly playbook for help in mastering the financial game, protecting your wealth, and securing your retirement. Each episode dives into crucial topics like retirement planning, financial strategies, and estate planning, offering straightforward, actionable advice to shield your wealth from higher taxes and market risks.
In this episode:
Drawing from personal experiences and the failures of traditional financial planning, Jalinski emphasizes the importance of having a financial model that accounts for wealth eroding factors. He discusses the limitations of the arithmetic formula commonly used in financial planning and introduces the concept of holistic financial planning. With a focus on protection, savings, growth, cash flow, and debt management, Jalinski provides a game plan for building and protecting wealth.
Can't get enough of the Financial Quarterback? Click 'Subscribe' to ensure you never miss a play.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The following presentation by Wealth Quarterback LCWQL is intended for
general information purposes only. No portion of the presentation serves
as the receipt of, or as a substitute for personalized
investment advice from WQL or any other investment professional of
your choosing. Please see additional important disclosure at the end
of this presentation. A copy of wql's current written disclosure
brusu're dicussing our advisory services and fees is available upon
request or at www dot Jolynsky dot org.
Speaker 2 (00:21):
Hey, I'm Josh Jelinsky, the Financial Quarterback. Here, welcoming you
to the very first episode of our podcast. Today we're
diving into a new playbook for financial planning. We'll explore
why traditional financial planning often misses the mark, and how
a well rounded approach can help you tackle debt, save smartly,
and grow your wealth. We've got a lot to cover,
so let's kick things off and start giving you a
(00:43):
winning game plan. This is the Financial Quarterback Podcast. Oh Hi,
I'm Josh Julensky, a noted financial advisor during the week,
(01:05):
voted by Forbes the last three years one of the
top one hundred financial security professionals in the country. I've
been doing this since two thousand and five, so about
eighteen years in the financial service business. I've been on
the radio since two thousand and eight. I own an
SEC registered investment advisor. We manage hundreds of millions of
(01:30):
dollars and I'm here to help you grow, protect and
secure your wealth as we focus on holistic financial planning,
risk management, tax strategies, state planning, college planning, retirement planning,
how to give money to the people you love and
the causes you love. And a lot of people worried
(01:53):
about the economy, a lot of people worried about what's
going to happen in their iras. Four oh one K
is my four to one case going to become a
two toh one K. We will help. So one of
the things that really got me into financial planning. You
may not have known this. My dad nearly died when
he was forty, had a heart attack, had no disability insurance.
(02:13):
Then if there's somebody that I could learn from, it
was my father, but not by doing what he did.
So my parents got penniless from a series of disabilities.
My mom had to put food on the table, she
had to make two jobs. So my father was bedridden,
punctured his lung in a car accident. So he's sort
of like the biblical story of job had like a
(02:35):
horrible decade. Then his bank that he worked for, you know,
he was a banker, but it was like he was
an investment banker, made a lot of money. He was
a bank manager, and he had a pension back for
Jersey Shore savings and loan little savings loan. And then
they got bought by a bigger bank. And that bigger
bank said, hey, you know what, we had this thing
(02:57):
called a four oh one K, and you can take
your pension and you could make millions in the four
oh one K, and you can invest in van guard
and ness in cheap index funds. You know what. Everybody's
doing it, so why don't you bill So my dad
did that, lost all of his money in the two
thousand to two thousand and two crash after sort of
(03:19):
the happy nineties, which was like the wearing twenties. Now,
their finances being a mess did not impact them be
and good parents. The were great parents, did not impact
their faith the great faith. So we lost everything due
to following the financial planning wisdom of the day, which
(03:39):
by the way, still persists today. You still hear it
by term invest the difference, max out your four oh
one k buy index funce. He did a lot of
those things. He wasn't a dummy, but he didn't have
a financial model. So I don't know if you know my story.
I was a Master of Divinity student at Westminster Theological
(04:01):
Seminary and I had to learned Greek and Hebrew in
a summer. So I was recruited by a Wall Street
headhunter who would go to seminaries because he said, hey,
you know what, you love people, You want to be
a pastor or, you want to have some ministry mind,
and you're smart enough because you got accepted in to
this seminary. So basically, if you could learn Hebrew in
(04:21):
a summer, you could learn how to trade stocks, trade options,
all those things. So Pastor Bill, he's now a pastor,
which kind of funny, recruited me out of seminary into
a Wall Street firm. But it wasn't due to like
making money. Money Making money was not my objective. It
was really to be sort of a marketplace minister and
(04:43):
help people avoid what happened to my parents sorts. We
transitioned to this whole concept of building wealth, which is
really the whole purpose of episode one. How do you
build wealth in your financial journeys? I met with his
name's Hesterville Devlin. He went by Devlin back then. You
(05:05):
know Madonna, you know you got to meet this guy.
He's quite a character. And you know, Bono was going
by Bono. He wanted to be memorable, so he went
by Devlin and now he goes by pastor Bill. But
this one named fellow Pastor Bill introduced me to a model.
(05:27):
And this financial model is how you build wealth and
protect wealth. And then in nineteen sixty nine by a
good friend of mine, bobcast Alone, who was a mentor
of mine in the financial services industry. You know what,
he thought, all financial planning was sort of like them,
and to be frank, I did too. I didn't go
to when I was a kid. I people said, well,
(05:48):
how did you go from seminary to getting all your
financial licenses and then helping people their money? Was at
a big transition? No it wasn't, because when I was ten,
I was like Alex P. Keaton, the Michael J. Fox
character on Family Ties. I traded stock. At ten, I
enjoyed not only helping people, but I enjoyed the financial markets.
(06:10):
I'd love for learning about taxation stocks, which I still
have to this day. But I always felt that financial
planning was always based on hypothetical projections which may or
may not come true. You know what I'm saying, like, well,
you know it worked for that person, will it work
(06:32):
for me? And my number one tip for wealth building
of any age when in your twenty thirties, forties, fifties,
sixties is to get a financial model. So some would say,
you know, this show could be called an intro to
financial planning. I don't want to use that word planning
because sometimes it's been like parnish, you know, you think
(06:53):
of the boring lecturer, kind of like the ben Stein
character in The Wonder Years. And when I met with Bastorball,
he showed me about this model. And what was beautiful
about the model is it accounted for the wealth eroding
factors that destroyed my father's financial future. And by the way,
(07:14):
I've been following the principles behind this model for the
last twenty years, and the principles of the model made
me a millionaire by twenty seven. Helped me predict the
market crash of eight. I was like Chicken Little. I
(07:35):
was a twenty three year old warning people the sky
was falling. The sky was falling, and people said, then
it fell in eight, and I looked like a genius
and my business took off. So it wasn't until two
thousand and eight. So my business really blossomed in the
crash of eight because the model was teaching people you
lead with protection. So if you're a new person just
(07:59):
starting out, if you're an old person just listening, if
you're middle aged, if you're retired, if you've got a
lot of money, you don't got a lot of money,
get a financial model. So if somebody says, have a plan,
and there's a really heavy math equation that goes into this,
(08:20):
and I don't want to cause your eyes to glaze
over and to gloss over. The formula that most financial
planners follow is what one might call the arithmetic formula.
And by the way, this is what changed my life.
(08:41):
The phrase money is not math and math is not
money because I saw that my dad did the math.
It was no dummy. You may meet some of the
most intelligent people you know are engineer's accounts. Why aren't
they millionaires? Why aren't there worth five million dollars? Because
they followed the traditional financial planning formula, which we could
(09:06):
call TFB traditional planage planning. The TFP formula is wealth
equals the money you have times the rate of return
that you're given, time's time, and that is the approach
(09:27):
that ninety nine percent of financial planners fault some variation
on that theme, and that is why ninety nine percent
of people are not financially successful. Then you may say
I'm a financial planner. I mean the best thing for
my clients. I'm a smart guy. Am my CPA. I
don't care. We have CFA, CFP, CPAs all that work
(09:48):
for me. So I really respect the education. But they
are taught in the traditional mode of thinking. So in
other way, it's not so much that the arithmetic formula
is wrong that it doesn't account for wealth eroding factors.
So you could really get really crazy on here, but
(10:08):
I'll just be simple. Wealth equals money times rate times
time minus all these things that we call wealth eroding factors.
Disability affected my dad, right, market risk affects people, long
term care events, inflation, My wonderful new producer Josh Fisher,
(10:32):
young guy. You know, I don't know. You might be
like thirty whatever, thirty one, thirty one. I mean you
grew up. You didn't even know what inflation was until
like three four years ago. And to be honest, I mean,
I'm I'm I'm my forties. I didn't really I mean,
there was big inflation in the eighties when I was
a kid, but I didn't feel that. I just heard
(10:53):
about it. We've experienced true inflation. That's another wealth eroding factor.
But I remember, like ten years, twenty years, inflation wasn't
even like a thought like inflation planning was like two
percent in the financial planning calculators, even the good ones
(11:14):
that were more robust. So the arithmetic formula that undergirds
traditional financial planning, it's not that it's a farce. It's
just that it's misguided and it lacks accounting for the
wealth roding factors. And I would say ninety nine percent
of talking heads, I would say, you name a talking
head who you listen to for finance. They are generally
(11:38):
steering people astray, unknowingly because they're following the old formula.
So you're a good little boy and girl school, you go,
you do your budget right, you get out of debt,
you do the debt free screen. Now you're thirty one,
you have no debt if you're lucky enough, right, and
(12:00):
then you get disabled at thirty two. You'll lose everything
now because you didn't have disability insurance. That can destroy
people's lives more than almost anything. Hey, this is Josh Jelensky.
The Financial Quarterback will be back after these messages.
Speaker 3 (12:24):
Tune into the Financial Quarterback Josh Jolynsky of the Jolynsky
Advisory Group and learn how to protect your financial future
during these turbulent times. Looking to lower your taxes or
need help securing your financial future, then Josh and his
team are the people for you. They're experts and financial
economics with one mission in mind to protect you and
your investments. From their twenty seven point checklists to their
(12:47):
one of a kind financial Quarterback approach, they help you
achieve financial health and guide you through the hard times
of high inflation, looming recessions, and stock market meltdown. For
financial security, call them.
Speaker 2 (12:59):
Now eight eight eight nine eight eight.
Speaker 3 (13:02):
Five six seven four and get your free copy of
Josh's book, The Retirement Reality Check.
Speaker 2 (13:13):
Traditional Financial planning has various objectives. It is seeking to
meet a need or a goal. Right, so you want
to send your kids to college, you do a five
twenty nine. You want to retire, you have a four
to oh one K. Our plan does not seek to
(13:37):
have just these piecemeal meeting needs and goals. But we
want to have a comprehensive, holistic plan that maximizes someone's
maximum financial potential. And by the way, I would argue
that if you're just cobbling together a five twenty nine
(13:57):
and a four to one K and you don't have
a model, you're going to completely fail because you are
going to be this concoction of various products and you
wake up twenty years from now and go, why am
I broke well? Because you did what everybody else did.
So traditional financial planning TFP meets needs and goals. It's
(14:22):
based on the accumulation wealth formula that I call the
arithmetic formula. There are no cost recovery methods in the
financial modeling process. It's just save this here, save this here.
Some good principles, but generally it's not about cost recovery.
(14:44):
Costcovery is big relinquishing control to financial institutions. Traditional financial
planning is all about, you know what pay for your
kids college? With the five to twenty one, you've zero
control for eighteen years. So if you see, and I
got this from my dad in that if you talk
to somebody who's really smart but not financially successful, they
(15:07):
will be marred with regret. So I grew up my
whole life. My dad's really an amazing guy. So I
don't want you to think he was this loser, but
he thought he was at times financially and he was
a winner. All his kids love him, his wife love
(15:29):
you know. He was a winner as man, but just
financial things evaded him. And one of the things I
was learning was he would drive by the neighborhood and
he would see a development that when he was a
member of the rotary club that, okay, this guy who
was no smarter than him bought that property because he
(15:52):
used thirty grand to buy this place on the bay
that's now worth you know, millions of dollars. My dad said, oh,
I could have done that. Well, why didn't you do it?
I would say, you know, oh I didn't have the money.
Why didn't have the money? Oh I put in my
four one k put it in this I couldn't get it.
I had no control. He relinquished control of the financial institutions.
(16:16):
Now I work with financial institutions. They are a necessary evil.
But you gotta understand that some of the products that
are created, like before one K great for a tax deduction,
but it may be the impediment to ready use of
that money someday. So traditional planners planning, you relinquished control
(16:39):
of your money to other institutions. You defer taxes, you
four one K, defer, defer deferr You talk to your
account what they tell you. Defer your tax. Minimum protection
against risk insurance is kind of necessary evil. It's not
talked about as a real part of the wealth building process.
(16:59):
Try us things like that, you want to conserve your estate,
you don't necessarily enjoy it. You want to build this
pot of gold at the end of your working rainbow
because you might need it someday. Minimum flexibility, no verification
through economic principles. Well, what's it from our approach? Instead
(17:22):
of meeting needs and goals, we're seeking your maximum financial potential.
Instead of the accumulation of wealth formula based on arithmetic,
we're basing it on physics and geometry. Our formula if
you want it simply as wealth equals the velocity of money,
(17:44):
which is called MV. Two times are eight times time.
So how many uses can you get on a dollar?
So an example of that would be, let's say you
save two under grand for your kids. Just talk to somebody.
The other day, I saved two hundred and fifty grand
for my kids colleges, and it's all on a five
twenty nine. He's all proud. You know, he's going to save.
(18:06):
And I know when people want to hear what I'm saying,
and I know when they don't. I just didn't want to,
you know, upset the guy's apple cart. I was thinking,
oh sucker. He could have taken that two fifty that
was in the five to twenty nine. I'm a financial advisor.
I don't have a five to twenty nine for any
of my kids. He could take that two fifty. He
could buy a million dollar apartment complex that will help
(18:27):
pay for his kids college, getting more write offs, more
use to the money. He can buy that apartment complex
in a state that has in state tuition. He can
emancipate his kids when they turn eighteen. The kids can
then take over his landlords, they can invite their friends
to them pay rents. That's an example of loss of money.
(18:52):
Now you're taking that two fifty that was for college.
You're now acquiring an asset, you're getting rents, you're getting
lower tuition, and oh, by the way, you're also getting
appreciation in the real estate. Now it's easier said than done.
I get that. But the point is just having an
open mind to geometry. Financial geometry instead of financial math
(19:15):
will make you smarter. It will have you look for
new opportunities with your wealth. Cost recovery methods one of
the biggest things we talk about. People have wealth and
they lose it to maybe they're paying six grand and
extra counting fees they don't need. That's cost recovery method.
So as soon as you get money, you're going to
(19:38):
see all these people want your money. Oh, here's ten
grand for this, here's I'm always paying these people. But
somebody to help you with getting into shape. You pay
a financial planner like you would pay somebody to help
you with getting into shape. And because that financial planner
has a rare skill set. That's the other thing. It's
(20:01):
not about beating the market. That's why you don't pick
a financial planning. It's about learning these principles that are
going to help you for the rest of your life,
that are going to help you no matter where you're at.
But the number one thing with financial planning, I don't
care how old you are, is understand TFP traditional financial
planning versus HFP. You might call it holistic financial planning
(20:22):
or financial modeling or macro economic financial modeling MFM, but
the whole idea is on the financial quarterback. We give
you that game plan to macro economically verify what you're
doing and not just trusting other people with your money.
So we do that by model. The model is five components.
(20:46):
Number one protection Full protection is critical for guarding against
unforeseen events that can strike you at any time and
derail you from your financial goals. So protection number one.
Number two Savings cash reserves are needed as a safety
(21:07):
net to provide additional protection or as a buffer and
save for designated purposes. Three Growth. This is where you'll
build long term wealth and income for future uses. For
cash low money coming in, money going out. For optimal
(21:28):
financial health, it is imperative that you understand your cash
flow and the circulation of various types of money that
will be both strategic and vital. And lastly, debt window.
Debt plays a unique role in your overall financial situation.
You want to eliminate bad debt. You may want to
keep or use good debt strategically, but debt should only
(21:52):
be used strategically and minimized or even eliminated over time.
And that, my friends, is the five biggest components of
the financial model. Welcome back to Extra Points, where we
(22:13):
tackle your financial questions, dive into current money manners, or
explore what's buzzing in the financial world, all based on
what you our listeners are curious about. Josh, what do
we have today?
Speaker 1 (22:28):
Tipping culture, How it's gotten out of hand. It's one
of the biggest topics people bring up.
Speaker 2 (22:31):
Okay, let's talk tipping. Back in the day, I was
cheap and I was taught that when you go to
a restaurant, you're supposed to tip eighteen percent. Fifteen percent
was this sort of standard. Then fifteen, game eighteen, then
eighteen me game twenty now and that's okay. So my
personal tipping role is if somebody does a really good job,
(22:54):
like they're the best, you could tip them twenty to
twenty five percent, standard service eighteen percent, substandard fifteen. But really,
out of respect to a waiter or waitress at a
dining establishment, you're supposed to tip because that's where their
funds come from. That's what I was taught, everybody was taught.
(23:15):
I think that's pretty reasonable. I don't know why you
now have to tip takeout people like they're doing nothing.
You now have to tip coffee people, like what's You're
already paying eight dollars for a coffee. That establishment should
pay its employees. You shouldn't have to rely on a tip.
(23:37):
So that's my reconciliation with the tip is I'm going
back to old school tipping standards. So what say you,
Josh Fisher?
Speaker 1 (23:47):
It makes me feel awkward. I feel like the addition
of the iPad with tipping has made me even less
one interact with people because I don't know about you,
but like you look at the iPad and it starts
at like eighteen to twenty percent, and this is for
like a coffee, and it's just like I'm getting a
cold brew, You're just pouring it into a cup.
Speaker 2 (24:05):
Honestly, I think the prompt irritates most people in most cases,
consumers face more opportunities to tip for a wider range
of services than ever before. This trend is referred to
as tip creep, but recent survey show shoppers are experiencing
tip fatigue and starting to actually tip less. I agree
(24:29):
with that, while resenting tipping prompts even more. The terms
may be understating it. It's it's already gone. To Cornell
University professor Michael Linn, It's more than fatigue, it's irritation.
It's not tip creep, it's tip gallop. Two thirds of
(24:49):
Americans have a negative view about tipping, according to a
recent report by Bank Great, particularly when it comes to
contactless and digital payment prompts with predetermined options that range
from fifteen and thirty five percent for each transaction, and
thirty percent said tip and culture has gotten out of control.
(25:10):
It's like, why should I tip? Because Uber is not
paying their drivers enough. It's like Instacart. Instacart, you gotta tip,
then you gotta pay fees, then you gotta pay No. Instagart,
you just pay their drivers more. Ubers should pay their
drivers more. You have to go out of your way
not to tip, and that's what a lot of people resent.
Speaker 1 (25:33):
Yep.
Speaker 2 (25:34):
We've had the option of tipping for a long time
because of tip jars, but you kind of ignore it.
The technology is making it harder to say no, and
it's making it harder to tip a small amount. During
the pandemic, there was a ground swell of thankfulness. Now
(25:55):
a lot of people are saying that's enough. I agree
of those, like, if you really believe you want that
as a part of your cost of doing business, add
it to your food. Now. This is interesting. While tipping
at full service restaurants has held steady, tips at quick
service restaurants fell to a year a five year low
(26:20):
of sixteen percent. I guess sixteen percent of the people tip,
or the average tip is sixteen point seven. Because if
the average tip is six point seven, that's still pretty good.
Forget freaking takeout. You're like, do you do you tip
a takeout person? Are you supposed to? I don't think so.
I don't know. That's well. You would tip a pizza
(26:42):
delivery guy or lady, right.
Speaker 1 (26:46):
Yeah, but they're delivering to you, though you don't tip.
If they're making it and you're going to pick it up,
that's what the that's all the work.
Speaker 2 (26:55):
I would agree with that, but I've done that. But
let's say you get delivery. You can do because of
this dumb app, but two hundred dollars. So let's say
you buy delivery fifty dollars deliveredy house. What's your tip?
Ten bucks? You're lying because you just complain about tipping.
You're like, you're not seven bucks kind because you just
(27:18):
complained about you give them five bucks. Come on, But
that's the thing, though, I think now we might give
ten bucks tipping the pizza delivery guy. Twenty percent seems
I does it not? Yeah, but I think you're right.
Though it is creeped. It creeped from five bucks to ten.
And maybe you are doing six or seven, you're probably
(27:39):
doing five.
Speaker 1 (27:40):
Like you know, you were talking about instacrat. When people
use Postmates or they use uber eats, all these extra
fees are on. They think those are the tips, but
they're not the tips. If anything, it' scris over the drivers.
Speaker 2 (27:51):
But that's their fault. Like they should have a union
against Uber eats. Uber eats is horrible. Uber eats and
door dash. Really, I don't even know what the point is.
Because the food arrives cold, the coffee arrives cold, like
you ever get uber eat Starbucks. Nope, it's the worst.
(28:12):
You would think big company like that would find a
way to keep things hot. They have yet to find that.
One of the things PF Chang's moved to our town,
we didn't have a PF Changs. And one of the
reasons I like ordering PF Changs is they don't use DoorDash.
They usually use their drivers, So I will tip that
(28:33):
person because it's hot DoorDash, you know, if I have
to do DoorDash, I feel like with DoorDash, you're like
the tenth guy on the order. And I've tried to
hack it, like okay, if I tip more, am I
gonna get hot and fresher? And it doesn't really work
that way.
Speaker 1 (28:50):
I got another thing about tipping for you, though, that
I've noticed a lot lately going to restaurants. It's the
restaurants surcharge and a lot of the times it'll say
for health and wellness or healthcare surve charge, and it's
an optional charge, but you have to go out of
your way to tell the waiter I don't want this
on my bill.
Speaker 2 (29:09):
I mean, I wouldn't mind if they force a fifteen
if you're gonna do that, Just force a fifteen percent
tip or a timber.
Speaker 1 (29:16):
Some places due an eighteen percent, which I like, I
don't want to, you know, don't give you the option.
Just tell me what I got to tip.
Speaker 2 (29:22):
No, I don't like the force because if it's eighteen,
I don't give the twenty. Then I'm like, if you're
gonna do that, because mice, my standard is usually eighteen yeah,
and twenty if they're good, twenty five of they're real good,
you know, if they're like the best waiter you've ever
seen it, you know you're right. Though. I hate the
healthcare surve charge, so I guess that's trying to guilt you, Like,
(29:43):
do you not want this waiter to give healthcare to
his child? Yeah, that's really rude. I don't like that. Yep,
it's like guilt. I'd like this fee removed. Restaurants should
have like a SIG congestion complaint drawers so they know
you're happy or not happy. But it shouldn't be it
(30:06):
should be like blind so they don't like spit in
your food. So tipping cultures suction hey their listeners. Are
you up against the financial obstacle or of a burning
money question. Here's your shot and not get sacked. Get
your questions answered live on the Financial Quarterback podcast. Just
(30:28):
dial eight at eight nine at eight Josh and leave
us a message with your question, or write us an
email at info at Financial Quarterback dot us. I might
just answer your question live on the air. That's eight
at eight nine to eight five sixty seven four eighty
eight nine at eight Josh, or email us info at
Financial Quarterback dot us. Leave us some message and let
(30:51):
me help create your game winning financial plan.
Speaker 1 (30:59):
The previous presentation by Wealth Quarterback LLC WQL was intended
for general information purposes only. No portion of the presentation
serves as the receipt of, or as a substitute for
personalized investment advice from WQL or any other investment professional
of your choosing. Different types of investments involve varying degrees
of risk, and it should not be assumed that the
future performance of any specific investment or investment strategy, or
(31:20):
any non investment related or planning services discussion or content
will be profitable, be suitable for your portfolio or individual situation,
or prove successful. WQL is neither a law firm nor
accounting firm, and no portion of its services should be
construed as legal or accounting advice. No portion of the
video content should be construed by a client or prospective
client as a guarantee that he or she will experience
a certain level of results if WQL is engaged or
(31:43):
continues to be engaged to provide investment advisory services. A
copy of wql's current written disclosure brochure discussing our advisory
services and fees is available upon request or at www
dot Jalinsky dot org.
The following presentation by Wealth Quarterback LCWQL is intended for
general information purposes only. No portion of the presentation serves
as the receipt of, or as a substitute for personalized
investment advice from WQL or any other investment professional of
your choosing. Please see additional important disclosure at the end
of this presentation. A copy of wql's current written disclosure
brusu're dicussing our advisory services and fees is available upon
request or at www dot Jolynsky dot org.
Speaker 2 (00:21):
Hey, I'm Josh Jelinsky, the Financial Quarterback. Here, welcoming you
to the very first episode of our podcast. Today we're
diving into a new playbook for financial planning. We'll explore
why traditional financial planning often misses the mark, and how
a well rounded approach can help you tackle debt, save smartly,
and grow your wealth. We've got a lot to cover,
so let's kick things off and start giving you a
(00:43):
winning game plan. This is the Financial Quarterback Podcast. Oh Hi,
I'm Josh Julensky, a noted financial advisor during the week,
(01:05):
voted by Forbes the last three years one of the
top one hundred financial security professionals in the country. I've
been doing this since two thousand and five, so about
eighteen years in the financial service business. I've been on
the radio since two thousand and eight. I own an
SEC registered investment advisor. We manage hundreds of millions of
(01:30):
dollars and I'm here to help you grow, protect and
secure your wealth as we focus on holistic financial planning,
risk management, tax strategies, state planning, college planning, retirement planning,
how to give money to the people you love and
the causes you love. And a lot of people worried
(01:53):
about the economy, a lot of people worried about what's
going to happen in their iras. Four oh one K
is my four to one case going to become a
two toh one K. We will help. So one of
the things that really got me into financial planning. You
may not have known this. My dad nearly died when
he was forty, had a heart attack, had no disability insurance.
(02:13):
Then if there's somebody that I could learn from, it
was my father, but not by doing what he did.
So my parents got penniless from a series of disabilities.
My mom had to put food on the table, she
had to make two jobs. So my father was bedridden,
punctured his lung in a car accident. So he's sort
of like the biblical story of job had like a
(02:35):
horrible decade. Then his bank that he worked for, you know,
he was a banker, but it was like he was
an investment banker, made a lot of money. He was
a bank manager, and he had a pension back for
Jersey Shore savings and loan little savings loan. And then
they got bought by a bigger bank. And that bigger
bank said, hey, you know what, we had this thing
(02:57):
called a four oh one K, and you can take
your pension and you could make millions in the four
oh one K, and you can invest in van guard
and ness in cheap index funds. You know what. Everybody's
doing it, so why don't you bill So my dad
did that, lost all of his money in the two
thousand to two thousand and two crash after sort of
(03:19):
the happy nineties, which was like the wearing twenties. Now,
their finances being a mess did not impact them be
and good parents. The were great parents, did not impact
their faith the great faith. So we lost everything due
to following the financial planning wisdom of the day, which
(03:39):
by the way, still persists today. You still hear it
by term invest the difference, max out your four oh
one k buy index funce. He did a lot of
those things. He wasn't a dummy, but he didn't have
a financial model. So I don't know if you know my story.
I was a Master of Divinity student at Westminster Theological
(04:01):
Seminary and I had to learned Greek and Hebrew in
a summer. So I was recruited by a Wall Street
headhunter who would go to seminaries because he said, hey,
you know what, you love people, You want to be
a pastor or, you want to have some ministry mind,
and you're smart enough because you got accepted in to
this seminary. So basically, if you could learn Hebrew in
(04:21):
a summer, you could learn how to trade stocks, trade options,
all those things. So Pastor Bill, he's now a pastor,
which kind of funny, recruited me out of seminary into
a Wall Street firm. But it wasn't due to like
making money. Money Making money was not my objective. It
was really to be sort of a marketplace minister and
(04:43):
help people avoid what happened to my parents sorts. We
transitioned to this whole concept of building wealth, which is
really the whole purpose of episode one. How do you
build wealth in your financial journeys? I met with his
name's Hesterville Devlin. He went by Devlin back then. You
(05:05):
know Madonna, you know you got to meet this guy.
He's quite a character. And you know, Bono was going
by Bono. He wanted to be memorable, so he went
by Devlin and now he goes by pastor Bill. But
this one named fellow Pastor Bill introduced me to a model.
(05:27):
And this financial model is how you build wealth and
protect wealth. And then in nineteen sixty nine by a
good friend of mine, bobcast Alone, who was a mentor
of mine in the financial services industry. You know what,
he thought, all financial planning was sort of like them,
and to be frank, I did too. I didn't go
to when I was a kid. I people said, well,
(05:48):
how did you go from seminary to getting all your
financial licenses and then helping people their money? Was at
a big transition? No it wasn't, because when I was ten,
I was like Alex P. Keaton, the Michael J. Fox
character on Family Ties. I traded stock. At ten, I
enjoyed not only helping people, but I enjoyed the financial markets.
(06:10):
I'd love for learning about taxation stocks, which I still
have to this day. But I always felt that financial
planning was always based on hypothetical projections which may or
may not come true. You know what I'm saying, like, well,
you know it worked for that person, will it work
(06:32):
for me? And my number one tip for wealth building
of any age when in your twenty thirties, forties, fifties,
sixties is to get a financial model. So some would say,
you know, this show could be called an intro to
financial planning. I don't want to use that word planning
because sometimes it's been like parnish, you know, you think
(06:53):
of the boring lecturer, kind of like the ben Stein
character in The Wonder Years. And when I met with Bastorball,
he showed me about this model. And what was beautiful
about the model is it accounted for the wealth eroding
factors that destroyed my father's financial future. And by the way,
(07:14):
I've been following the principles behind this model for the
last twenty years, and the principles of the model made
me a millionaire by twenty seven. Helped me predict the
market crash of eight. I was like Chicken Little. I
(07:35):
was a twenty three year old warning people the sky
was falling. The sky was falling, and people said, then
it fell in eight, and I looked like a genius
and my business took off. So it wasn't until two
thousand and eight. So my business really blossomed in the
crash of eight because the model was teaching people you
lead with protection. So if you're a new person just
(07:59):
starting out, if you're an old person just listening, if
you're middle aged, if you're retired, if you've got a
lot of money, you don't got a lot of money,
get a financial model. So if somebody says, have a plan,
and there's a really heavy math equation that goes into this,
(08:20):
and I don't want to cause your eyes to glaze
over and to gloss over. The formula that most financial
planners follow is what one might call the arithmetic formula.
And by the way, this is what changed my life.
(08:41):
The phrase money is not math and math is not
money because I saw that my dad did the math.
It was no dummy. You may meet some of the
most intelligent people you know are engineer's accounts. Why aren't
they millionaires? Why aren't there worth five million dollars? Because
they followed the traditional financial planning formula, which we could
(09:06):
call TFB traditional planage planning. The TFP formula is wealth
equals the money you have times the rate of return
that you're given, time's time, and that is the approach
(09:27):
that ninety nine percent of financial planners fault some variation
on that theme, and that is why ninety nine percent
of people are not financially successful. Then you may say
I'm a financial planner. I mean the best thing for
my clients. I'm a smart guy. Am my CPA. I
don't care. We have CFA, CFP, CPAs all that work
(09:48):
for me. So I really respect the education. But they
are taught in the traditional mode of thinking. So in
other way, it's not so much that the arithmetic formula
is wrong that it doesn't account for wealth eroding factors.
So you could really get really crazy on here, but
(10:08):
I'll just be simple. Wealth equals money times rate times
time minus all these things that we call wealth eroding factors.
Disability affected my dad, right, market risk affects people, long
term care events, inflation, My wonderful new producer Josh Fisher,
(10:32):
young guy. You know, I don't know. You might be
like thirty whatever, thirty one, thirty one. I mean you
grew up. You didn't even know what inflation was until
like three four years ago. And to be honest, I mean,
I'm I'm I'm my forties. I didn't really I mean,
there was big inflation in the eighties when I was
a kid, but I didn't feel that. I just heard
(10:53):
about it. We've experienced true inflation. That's another wealth eroding factor.
But I remember, like ten years, twenty years, inflation wasn't
even like a thought like inflation planning was like two
percent in the financial planning calculators, even the good ones
(11:14):
that were more robust. So the arithmetic formula that undergirds
traditional financial planning, it's not that it's a farce. It's
just that it's misguided and it lacks accounting for the
wealth roding factors. And I would say ninety nine percent
of talking heads, I would say, you name a talking
head who you listen to for finance. They are generally
(11:38):
steering people astray, unknowingly because they're following the old formula.
So you're a good little boy and girl school, you go,
you do your budget right, you get out of debt,
you do the debt free screen. Now you're thirty one,
you have no debt if you're lucky enough, right, and
(12:00):
then you get disabled at thirty two. You'll lose everything
now because you didn't have disability insurance. That can destroy
people's lives more than almost anything. Hey, this is Josh Jelensky.
The Financial Quarterback will be back after these messages.
Speaker 3 (12:24):
Tune into the Financial Quarterback Josh Jolynsky of the Jolynsky
Advisory Group and learn how to protect your financial future
during these turbulent times. Looking to lower your taxes or
need help securing your financial future, then Josh and his
team are the people for you. They're experts and financial
economics with one mission in mind to protect you and
your investments. From their twenty seven point checklists to their
(12:47):
one of a kind financial Quarterback approach, they help you
achieve financial health and guide you through the hard times
of high inflation, looming recessions, and stock market meltdown. For
financial security, call them.
Speaker 2 (12:59):
Now eight eight eight nine eight eight.
Speaker 3 (13:02):
Five six seven four and get your free copy of
Josh's book, The Retirement Reality Check.
Speaker 2 (13:13):
Traditional Financial planning has various objectives. It is seeking to
meet a need or a goal. Right, so you want
to send your kids to college, you do a five
twenty nine. You want to retire, you have a four
to oh one K. Our plan does not seek to
(13:37):
have just these piecemeal meeting needs and goals. But we
want to have a comprehensive, holistic plan that maximizes someone's
maximum financial potential. And by the way, I would argue
that if you're just cobbling together a five twenty nine
(13:57):
and a four to one K and you don't have
a model, you're going to completely fail because you are
going to be this concoction of various products and you
wake up twenty years from now and go, why am
I broke well? Because you did what everybody else did.
So traditional financial planning TFP meets needs and goals. It's
(14:22):
based on the accumulation wealth formula that I call the
arithmetic formula. There are no cost recovery methods in the
financial modeling process. It's just save this here, save this here.
Some good principles, but generally it's not about cost recovery.
(14:44):
Costcovery is big relinquishing control to financial institutions. Traditional financial
planning is all about, you know what pay for your
kids college? With the five to twenty one, you've zero
control for eighteen years. So if you see, and I
got this from my dad in that if you talk
to somebody who's really smart but not financially successful, they
(15:07):
will be marred with regret. So I grew up my
whole life. My dad's really an amazing guy. So I
don't want you to think he was this loser, but
he thought he was at times financially and he was
a winner. All his kids love him, his wife love
(15:29):
you know. He was a winner as man, but just
financial things evaded him. And one of the things I
was learning was he would drive by the neighborhood and
he would see a development that when he was a
member of the rotary club that, okay, this guy who
was no smarter than him bought that property because he
(15:52):
used thirty grand to buy this place on the bay
that's now worth you know, millions of dollars. My dad said, oh,
I could have done that. Well, why didn't you do it?
I would say, you know, oh I didn't have the money.
Why didn't have the money? Oh I put in my
four one k put it in this I couldn't get it.
I had no control. He relinquished control of the financial institutions.
(16:16):
Now I work with financial institutions. They are a necessary evil.
But you gotta understand that some of the products that
are created, like before one K great for a tax deduction,
but it may be the impediment to ready use of
that money someday. So traditional planners planning, you relinquished control
(16:39):
of your money to other institutions. You defer taxes, you
four one K, defer, defer deferr You talk to your
account what they tell you. Defer your tax. Minimum protection
against risk insurance is kind of necessary evil. It's not
talked about as a real part of the wealth building process.
(16:59):
Try us things like that, you want to conserve your estate,
you don't necessarily enjoy it. You want to build this
pot of gold at the end of your working rainbow
because you might need it someday. Minimum flexibility, no verification
through economic principles. Well, what's it from our approach? Instead
(17:22):
of meeting needs and goals, we're seeking your maximum financial potential.
Instead of the accumulation of wealth formula based on arithmetic,
we're basing it on physics and geometry. Our formula if
you want it simply as wealth equals the velocity of money,
(17:44):
which is called MV. Two times are eight times time.
So how many uses can you get on a dollar?
So an example of that would be, let's say you
save two under grand for your kids. Just talk to somebody.
The other day, I saved two hundred and fifty grand
for my kids colleges, and it's all on a five
twenty nine. He's all proud. You know, he's going to save.
(18:06):
And I know when people want to hear what I'm saying,
and I know when they don't. I just didn't want to,
you know, upset the guy's apple cart. I was thinking,
oh sucker. He could have taken that two fifty that
was in the five to twenty nine. I'm a financial advisor.
I don't have a five to twenty nine for any
of my kids. He could take that two fifty. He
could buy a million dollar apartment complex that will help
(18:27):
pay for his kids college, getting more write offs, more
use to the money. He can buy that apartment complex
in a state that has in state tuition. He can
emancipate his kids when they turn eighteen. The kids can
then take over his landlords, they can invite their friends
to them pay rents. That's an example of loss of money.
(18:52):
Now you're taking that two fifty that was for college.
You're now acquiring an asset, you're getting rents, you're getting
lower tuition, and oh, by the way, you're also getting
appreciation in the real estate. Now it's easier said than done.
I get that. But the point is just having an
open mind to geometry. Financial geometry instead of financial math
(19:15):
will make you smarter. It will have you look for
new opportunities with your wealth. Cost recovery methods one of
the biggest things we talk about. People have wealth and
they lose it to maybe they're paying six grand and
extra counting fees they don't need. That's cost recovery method.
So as soon as you get money, you're going to
(19:38):
see all these people want your money. Oh, here's ten
grand for this, here's I'm always paying these people. But
somebody to help you with getting into shape. You pay
a financial planner like you would pay somebody to help
you with getting into shape. And because that financial planner
has a rare skill set. That's the other thing. It's
(20:01):
not about beating the market. That's why you don't pick
a financial planning. It's about learning these principles that are
going to help you for the rest of your life,
that are going to help you no matter where you're at.
But the number one thing with financial planning, I don't
care how old you are, is understand TFP traditional financial
planning versus HFP. You might call it holistic financial planning
(20:22):
or financial modeling or macro economic financial modeling MFM, but
the whole idea is on the financial quarterback. We give
you that game plan to macro economically verify what you're
doing and not just trusting other people with your money.
So we do that by model. The model is five components.
(20:46):
Number one protection Full protection is critical for guarding against
unforeseen events that can strike you at any time and
derail you from your financial goals. So protection number one.
Number two Savings cash reserves are needed as a safety
(21:07):
net to provide additional protection or as a buffer and
save for designated purposes. Three Growth. This is where you'll
build long term wealth and income for future uses. For
cash low money coming in, money going out. For optimal
(21:28):
financial health, it is imperative that you understand your cash
flow and the circulation of various types of money that
will be both strategic and vital. And lastly, debt window.
Debt plays a unique role in your overall financial situation.
You want to eliminate bad debt. You may want to
keep or use good debt strategically, but debt should only
(21:52):
be used strategically and minimized or even eliminated over time.
And that, my friends, is the five biggest components of
the financial model. Welcome back to Extra Points, where we
(22:13):
tackle your financial questions, dive into current money manners, or
explore what's buzzing in the financial world, all based on
what you our listeners are curious about. Josh, what do
we have today?
Speaker 1 (22:28):
Tipping culture, How it's gotten out of hand. It's one
of the biggest topics people bring up.
Speaker 2 (22:31):
Okay, let's talk tipping. Back in the day, I was
cheap and I was taught that when you go to
a restaurant, you're supposed to tip eighteen percent. Fifteen percent
was this sort of standard. Then fifteen, game eighteen, then
eighteen me game twenty now and that's okay. So my
personal tipping role is if somebody does a really good job,
(22:54):
like they're the best, you could tip them twenty to
twenty five percent, standard service eighteen percent, substandard fifteen. But really,
out of respect to a waiter or waitress at a
dining establishment, you're supposed to tip because that's where their
funds come from. That's what I was taught, everybody was taught.
(23:15):
I think that's pretty reasonable. I don't know why you
now have to tip takeout people like they're doing nothing.
You now have to tip coffee people, like what's You're
already paying eight dollars for a coffee. That establishment should
pay its employees. You shouldn't have to rely on a tip.
(23:37):
So that's my reconciliation with the tip is I'm going
back to old school tipping standards. So what say you,
Josh Fisher?
Speaker 1 (23:47):
It makes me feel awkward. I feel like the addition
of the iPad with tipping has made me even less
one interact with people because I don't know about you,
but like you look at the iPad and it starts
at like eighteen to twenty percent, and this is for
like a coffee, and it's just like I'm getting a
cold brew, You're just pouring it into a cup.
Speaker 2 (24:05):
Honestly, I think the prompt irritates most people in most cases,
consumers face more opportunities to tip for a wider range
of services than ever before. This trend is referred to
as tip creep, but recent survey show shoppers are experiencing
tip fatigue and starting to actually tip less. I agree
(24:29):
with that, while resenting tipping prompts even more. The terms
may be understating it. It's it's already gone. To Cornell
University professor Michael Linn, It's more than fatigue, it's irritation.
It's not tip creep, it's tip gallop. Two thirds of
(24:49):
Americans have a negative view about tipping, according to a
recent report by Bank Great, particularly when it comes to
contactless and digital payment prompts with predetermined options that range
from fifteen and thirty five percent for each transaction, and
thirty percent said tip and culture has gotten out of control.
(25:10):
It's like, why should I tip? Because Uber is not
paying their drivers enough. It's like Instacart. Instacart, you gotta tip,
then you gotta pay fees, then you gotta pay No. Instagart,
you just pay their drivers more. Ubers should pay their
drivers more. You have to go out of your way
not to tip, and that's what a lot of people resent.
Speaker 1 (25:33):
Yep.
Speaker 2 (25:34):
We've had the option of tipping for a long time
because of tip jars, but you kind of ignore it.
The technology is making it harder to say no, and
it's making it harder to tip a small amount. During
the pandemic, there was a ground swell of thankfulness. Now
(25:55):
a lot of people are saying that's enough. I agree
of those, like, if you really believe you want that
as a part of your cost of doing business, add
it to your food. Now. This is interesting. While tipping
at full service restaurants has held steady, tips at quick
service restaurants fell to a year a five year low
(26:20):
of sixteen percent. I guess sixteen percent of the people tip,
or the average tip is sixteen point seven. Because if
the average tip is six point seven, that's still pretty good.
Forget freaking takeout. You're like, do you do you tip
a takeout person? Are you supposed to? I don't think so.
I don't know. That's well. You would tip a pizza
(26:42):
delivery guy or lady, right.
Speaker 1 (26:46):
Yeah, but they're delivering to you, though you don't tip.
If they're making it and you're going to pick it up,
that's what the that's all the work.
Speaker 2 (26:55):
I would agree with that, but I've done that. But
let's say you get delivery. You can do because of
this dumb app, but two hundred dollars. So let's say
you buy delivery fifty dollars deliveredy house. What's your tip?
Ten bucks? You're lying because you just complain about tipping.
You're like, you're not seven bucks kind because you just
(27:18):
complained about you give them five bucks. Come on, But
that's the thing, though, I think now we might give
ten bucks tipping the pizza delivery guy. Twenty percent seems
I does it not? Yeah, but I think you're right.
Though it is creeped. It creeped from five bucks to ten.
And maybe you are doing six or seven, you're probably
(27:39):
doing five.
Speaker 1 (27:40):
Like you know, you were talking about instacrat. When people
use Postmates or they use uber eats, all these extra
fees are on. They think those are the tips, but
they're not the tips. If anything, it' scris over the drivers.
Speaker 2 (27:51):
But that's their fault. Like they should have a union
against Uber eats. Uber eats is horrible. Uber eats and
door dash. Really, I don't even know what the point is.
Because the food arrives cold, the coffee arrives cold, like
you ever get uber eat Starbucks. Nope, it's the worst.
(28:12):
You would think big company like that would find a
way to keep things hot. They have yet to find that.
One of the things PF Chang's moved to our town,
we didn't have a PF Changs. And one of the
reasons I like ordering PF Changs is they don't use DoorDash.
They usually use their drivers, So I will tip that
(28:33):
person because it's hot DoorDash, you know, if I have
to do DoorDash, I feel like with DoorDash, you're like
the tenth guy on the order. And I've tried to
hack it, like okay, if I tip more, am I
gonna get hot and fresher? And it doesn't really work
that way.
Speaker 1 (28:50):
I got another thing about tipping for you, though, that
I've noticed a lot lately going to restaurants. It's the
restaurants surcharge and a lot of the times it'll say
for health and wellness or healthcare surve charge, and it's
an optional charge, but you have to go out of
your way to tell the waiter I don't want this
on my bill.
Speaker 2 (29:09):
I mean, I wouldn't mind if they force a fifteen
if you're gonna do that, Just force a fifteen percent
tip or a timber.
Speaker 1 (29:16):
Some places due an eighteen percent, which I like, I
don't want to, you know, don't give you the option.
Just tell me what I got to tip.
Speaker 2 (29:22):
No, I don't like the force because if it's eighteen,
I don't give the twenty. Then I'm like, if you're
gonna do that, because mice, my standard is usually eighteen yeah,
and twenty if they're good, twenty five of they're real good,
you know, if they're like the best waiter you've ever
seen it, you know you're right. Though. I hate the
healthcare surve charge, so I guess that's trying to guilt you, Like,
(29:43):
do you not want this waiter to give healthcare to
his child? Yeah, that's really rude. I don't like that. Yep,
it's like guilt. I'd like this fee removed. Restaurants should
have like a SIG congestion complaint drawers so they know
you're happy or not happy. But it shouldn't be it
(30:06):
should be like blind so they don't like spit in
your food. So tipping cultures suction hey their listeners. Are
you up against the financial obstacle or of a burning
money question. Here's your shot and not get sacked. Get
your questions answered live on the Financial Quarterback podcast. Just
(30:28):
dial eight at eight nine at eight Josh and leave
us a message with your question, or write us an
email at info at Financial Quarterback dot us. I might
just answer your question live on the air. That's eight
at eight nine to eight five sixty seven four eighty
eight nine at eight Josh, or email us info at
Financial Quarterback dot us. Leave us some message and let
(30:51):
me help create your game winning financial plan.
Speaker 1 (30:59):
The previous presentation by Wealth Quarterback LLC WQL was intended
for general information purposes only. No portion of the presentation
serves as the receipt of, or as a substitute for
personalized investment advice from WQL or any other investment professional
of your choosing. Different types of investments involve varying degrees
of risk, and it should not be assumed that the
future performance of any specific investment or investment strategy, or
(31:20):
any non investment related or planning services discussion or content
will be profitable, be suitable for your portfolio or individual situation,
or prove successful. WQL is neither a law firm nor
accounting firm, and no portion of its services should be
construed as legal or accounting advice. No portion of the
video content should be construed by a client or prospective
client as a guarantee that he or she will experience
a certain level of results if WQL is engaged or
(31:43):
continues to be engaged to provide investment advisory services. A
copy of wql's current written disclosure brochure discussing our advisory
services and fees is available upon request or at www
dot Jalinsky dot org.
Business on the Brink News
Hosts And Creators
Jonathan Strickland
Ariel Kristen Kasten
Show Links
AboutPopular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
Crime Junkie
If you can never get enough true crime... Congratulations, you’ve found your people.