March 6, 2024 • 17 mins
Ever feel like the world of finance is wrapped in mystery and misconceptions? Fear not, because on our latest episode, the remarkable Chris McMorrow of MB Wealth joins us to debunk the biggest myths in financial planning. With wit and wisdom, Chris discusses the psychological barriers blocking us from fiscal fitness and how personalized advice is just what your bank account ordered. Picture a personal trainer for your finances—Chris brings that level of tailored support and guidance, making the daunting process of managing money seem as relatable as choosing a salad over a slice of pizza.
This episode isn't just about busting myths; it's a treasure trove of strategies for growing your wealth. We're laying out the blueprint to assemble your financial A-team, with Chris illustrating his role as the chief of staff to your personal economy's presidency. From tackling the complexities of real estate investment to the art of balancing student loans, we cover the financial journey across all stages of life. And because life loves a curveball, we underline the lifesaving importance of savings and insurance. So, if you're aiming to turn your financial goals into your financial reality, this is one conversation you can't afford to miss.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Okay, here we are.
Another episode on the best ofthe best.
Therese, who do you?
Speaker 2 (00:08):
have here.
So today I have MB Wealth, Ihave Chris McMorrow here and he
is gonna tell us all aboutfinancial strategies and
planning myths all the thingsthat you guys think when you
hear that he's gonna make it sothat it's something that you
feel you absolutely need to dowhich I know a lot of people do
but they get nervous and theydon't make the appointment or
(00:30):
they cancel.
Do you have people cancel allthe time?
Speaker 1 (00:33):
All the time not as much as 10 years ago, but it is
still prevalent.
A lot of people put theirfinancial well-being on the back
burner because life takes over.
Speaker 2 (00:43):
Well, it's funny because life does take over and
time goes by so fast.
You don't even realize when youstart talking about this that
we personally talked aboutfinancial planning for 15 years
and it feels like two or three,so it gets away from you if you
don't just sit down and do it.
Speaker 1 (01:02):
It is and we try to make it fun and it's not a trip
to the dentist.
We don't want that feeling thatit's, ah, I have to go get
drilled by the dentist today andyou're anxiously sitting in the
waiting room.
We try to keep it fun.
It's an experience.
We wanna make sure that weunderstand your goals short-term
, long-term and how do weachieve them, based on what
(01:24):
you're actually doing in yourcurrent day-to-day lives, right?
Speaker 2 (01:29):
So let's back up a second and just tell everybody a
little bit about what MD Wealthis when you started and kind of
what your main things that youdo there are.
Speaker 1 (01:37):
Sure.
So I've been in this businessfor two decades now and I came
up under a gentleman thatmentored me and really taught me
about the work ethic that'sinvolved in building a great
business and how to treatclients and prospects and really
understand how people makedecisions and why they make
(02:01):
decisions.
And money is 90% psychologicaland 10% math, and the ability to
get across to people on exactlywhat they wanna do and hold
them accountable for achievingtheir goals and setting savings
targets and retirementstrategies and things like that
is the utmost important to usand that's why I love this
(02:24):
business is because we're reallyhelping people get to where
they wanna be and hopefullyguiding them around some of the
pitfalls that are out there inthe media, in the paper, the
newspaper TikTok, these daysit's becoming more prevalent
that people are getting theirfinancial advice on social media
platforms and people take it onface value.
(02:44):
It's scary.
It is, it definitely is, and oneyou don't know these people's
backgrounds that are actuallydoing it.
And it's more than just seeingthe specific strategy versus
actually going through anddigging deep into your personal
life to see if this makes sense,because what makes sense for
(03:04):
some people doesn't make sensefor others.
Speaker 2 (03:06):
I think part of that, too, is almost like our
business.
It's a very relational business.
You need to get to know theperson that you're dealing with
and you need to get to know themas their advisor, to see what
they really want.
It's not just about coming inand having one meeting and all
of a sudden it's laid out therefor you.
It's really what are your hopes, what are your dreams?
What is your future plans?
How much money do you make now?
What are you planning on makingin the future?
(03:28):
How do you set yourself up sothat you can keep that same
lifestyle?
Because I think that's whatpeople forget.
They get used to the lifestylethey have when they're earning
and then, when they stop earning, they don't have enough money
coming in to support it, andthen their lifestyle has to
change, which is not a funconversation, right?
Speaker 1 (03:45):
It's not, and we see it all too often that people
that start saving in their late20s, early 30s, that are making
60,000, 80,000 a year, they keepthat same saving strategy even
when they're making six figuresmore than that.
They have bonuses coming in.
So it's part of our process iswe have to have regular review
(04:07):
meetings and just at leastcheck-ins to make sure that
we're still on point and makingsure we're meeting our goals.
Because it's very easy to spendmoney.
We equate spending money aseating out every night.
It's easy to suspend, just likeit is.
It's easy to go to the pizzashop which hey listen, I like
pizza a lot and I could probablygo on a Me too, exactly but we
(04:34):
don't want the dieting of yourfinancial world to inhibit you
from actually exploring whatpossibilities there are based on
what you're doing.
Speaker 2 (04:43):
It's about.
You just said it.
It's like financial health.
Look at people.
They're going to get healthy.
They have a schedule.
They go to the gym so many daysa week.
This is the same thing.
It's a plan on how you're goingto save, and maybe that plan
includes not going out to dinnerfive nights a week, maybe it's
going out two nights a week, orwhatever it is that's important
(05:04):
to you to reach that financialgoal.
But you have to have the goal.
Speaker 1 (05:08):
Correct.
And the joke we say in theoffice is there's 8,000 workout
machines out there, there's1,000 gyms within a 30 mile
radius, but we still have anobesity problem in this country.
You have to walk into the gymand actually stick to a program.
Speaker 2 (05:22):
Yeah, having that little piece of paper saying
your member doesn't really domuch.
Speaker 1 (05:26):
I've had a Planet Fitness membership for 25 years
and I can't take the last time Iwalked into it, so I'm guilty
of it too, but we try to keep itlight and fun.
We don't want to put the personwe're sitting across from in an
uncomfortable situation.
(05:47):
We want to understand whatthey're doing and how do we get
them to what they're trying todo and hold them accountable.
Speaker 2 (05:55):
Yeah, so I think some people get to the point where
they're thinking, oh, it's toolate.
No, I got into a certain age.
Now I'm going to be retiringsoon.
There's no point, is that thecase?
Speaker 1 (06:06):
It is because a lot of people are doing things that
they were told to do.
Think about somebody you knowthat's been in corporate America
for 30 years and when you gethired you see your HR person.
They say here's a 401K, whatpercentage do you want to put
into it?
The company matches X andthat's it.
Some people.
No planning or occasionalplanning is a strategy.
(06:28):
It might not be the mosteffective strategy, but it is
there.
But I always equate it to ifyou were going to get on the
expressway and there was a 20mile backup, wouldn't you want
to know that before you got onto the highway?
Speaker 2 (06:42):
Yes.
Speaker 1 (06:43):
We're trying to divert you around the potential
construction hazard, theaccident that people may be
unwillingly and blindly goinginto.
And, having the insight of theknowledge that has been injected
in my brain for the past 20years, a lot of people don't
understand how some of thesestrategies can be detrimental.
(07:04):
From 62 to 92.
Speaker 2 (07:07):
Well, I think too, you don't understand how easy it
is to build wealth.
It doesn't take a lot if youstart early enough, right?
So obviously, if you'relistening and you're my age
group, sometimes I think, ohgosh, it's too late.
But it's not.
I can still make great strategymoves that will help me for my
future, when I'm older andretired, and maybe I need care
(07:29):
or who knows what is going tohappen in later life.
But if you're young and you'relistening to this, it's never
too early to start.
And if you're my age and you'redoing well and you're
successful and you have somemoney, you can start taking care
of your kids, your grandkids.
There's ways and strategiesthat you can help shore up your
legacy, and I think a lot ofpeople forget about that.
Speaker 1 (07:53):
Correct and in this general area, people want to
leave some sort of legacy andsome people that are getting up
in the years have been retiredfor some time now.
They're concerned about thecost of a nursing home.
Are they properly planned thatway?
What if a nursing home takesall of my assets and I leave my
(08:14):
children, grandchildren?
Speaker 2 (08:16):
Nothing Right.
Speaker 1 (08:18):
And you know so it's we break it down that you know
in your 20s, mid-20s you'reclimbing the mountain.
You're always climbing themountain until you're getting to
the point where you retire.
Then you have to come back downthe mountain because everything
you've accumulated you have toconvert into a source of income.
And then it's once you'reslowly grappling down the
(08:41):
mountain.
It's how do we make sure thatyou have your generational
wealth in place, if that'simportant to you, that it goes
properly to the next generation,with paying the least amount of
taxes possible or at leastunderstanding how the taxes work
when it goes from onegeneration to the next?
Speaker 2 (08:59):
Yeah, I think that's the other thing.
I think a lot of people haveaccountants and they feel like
that's enough, and it's reallynot, because there are so many
strategies that you can takeadvantage of.
You know, especially whenyou're starting to transition
that wealth out, there's a lotof tax penalties if you don't do
it right.
So talking to someone who hasthat background a financial
planner or advisor is reallywhat you need to be doing.
Speaker 1 (09:21):
Correct and you know we have a great group of people
that you know we're notattorneys, we don't draw up
legal papers, we don't, you know, do things of that
recommendations on estateplanning but we will put you in
touch with the proper personthat has done this for us plenty
of times in the past and youknow that's, that's a thing.
(09:42):
We're looking at our clients.
They are the president of theirpersonal economy and how do we
build a cabinet around themwhere you know we're the chief
of staff and to res, you mightbe the minister of defense on
the real estate side mortgageprofessionals right?
(10:03):
We need to build a good teamthat's working for the common
goal of the client and that ismissed so much in this world of
information, the internet,things like that that people
don't have that personal touchanymore and we're trying to
bring that back.
Speaker 2 (10:18):
Yeah, I mean it's.
You're right.
You should have an advisor forevery aspect of your life
instead of trying to be your ownadvisor, because you know how
that works.
It doesn't work out always thatwell.
Sometimes you get lucky andmight hit the lottery, or
whatever the case may be, butyou need to have people in your
corner.
Now, obviously, we're a realestate company and we've talked
some strategies on things thatsellers can do and buyers can do
(10:41):
, and people that own a homemight have some equity that
they're just letting sit therethat could actually be put to a
better purpose.
Do you have anything you wantto say about that?
Speaker 1 (10:48):
Yeah.
So you know every situation isunique and we run into a lot of
different scenarios.
So people that are downsizingto you know I'm retiring, I
don't need the huge singlefamily home anymore.
I'm downsizing to a rancher.
And do I put all this moneyhere?
Where can I get yield?
How is that going to reallybenefit me from an income
(11:11):
standpoint or supplementalincome standpoint?
And there's a lot of differentways to focus on that.
With younger people, as thehouses prices have appreciated
nicely in this area, we've beenable to help clean up some debt
(11:31):
by using some of the home equity.
Now we don't do that blindly.
We always have to have a backend.
Play that hey, we're not goingto do this unless we're going to
save X to recapture this moneyback into your plan.
Speaker 2 (11:44):
You're not going to go out and respend it.
Speaker 1 (11:46):
Correct.
We don't tell people to takemoney out of their house to go
buy a Ferrari.
That would be not prudent.
But there are a lot ofdifferent options out there and
more everybody we know thatcomes into the office.
They want a house at the shoreand they want an investment
property, and it's how do weutilize some of the assets you
(12:06):
already have on your boardproperly to obtain those things?
And if there's ways to do thatwith the home equity and it
makes sense from a cash flowstandpoint, we definitely lay
that out so they understand howthat would look.
Speaker 2 (12:21):
Okay, do you have any suggestions?
One of the things we're findingis especially with these first
time home buyers or sometimesit's not even their first, but
they're graduating from collegeand they are loaded with student
debt which is making itdifficult for them to afford
really what they could if itwasn't for that debt.
Are there any strategies forthem?
(12:41):
Because the interest rates arehigher on these student loans?
Is there some kind of somethingthey could do with that?
Speaker 1 (12:46):
So, again, every situation is different.
From that standpoint, we wouldlook at options.
Does it make sense to do anincome-based repayment strategy?
Does it make sense to do anextended repayment strategy, to
look at from a debt to incomeratio, if we can get the payment
lower and hey, that means wecan get a little bit more house,
(13:07):
or when we're ready for that,because we always wanna have the
strategy in place that ifsomebody wants to pay their
student loan off in 10 years, 15years, even though we may
extend the loan out, we stillwanna be in the same position to
be able to pay it off in 15years, even though we extended
it out.
It's similar to again, I don'twanna speak out of class, but if
(13:29):
somebody wants a 15-yearmortgage, right, we might say do
the 30-year mortgage but nowmake the payment, or save on the
side that you can still pay thehouse off in 15 years, but, god
forbid, you lose your job ifsomebody gets sick you're not
(13:50):
stuck into that 15-year mortgagepayment.
And again, I'm not a mortgageadvisor.
But from the standpoint of cashflow we wanna have options
because things happen.
As part of our process, wewanna make sure that we're
showing up protection componentsand get sure you've got the
proper will in place in casesomething happens to you.
(14:10):
If you have a small family,Obviously health insurance and
life insurance is a big portionof that to really protect.
If you have a young family ornot so young family, in case
something happens to thebreadwinner or a spouse.
And then we go to savings Areyou saving enough money?
(14:30):
Do you have the proper amountof money in case you need four
tires on your car?
You don't have to put it on thevisa.
You've got the money set asideand it's already been planned
for.
Speaker 2 (14:41):
Yeah, that's where I think you come in and really
help, and that's why I think ifpeople would start thinking
about this when they're youngerand start coming up with a great
strategy.
First of all, their leverage isso much better just because the
products are less expensivethat they can get into.
That could give them theability to build wealth.
The older you get, the more youhave to put in to get the same
(15:04):
kind of result right, Correctand listen.
Speaker 1 (15:08):
If you are starting at 22 versus 42, you're gonna be
way ahead, starting early, andit's all about the habit.
If my mom and dad had told meto save 50% of any dollar I made
when I was six, that habitwould have stuck with me forever
(15:28):
.
So when we go through and ourmodel's very visual, we like to
use the whiteboard as we gothrough things and we go through
these simple examples to showpeople that here's what things
would look like and here are thepitfalls that you may be
walking into that you have noidea about.
But once you're in it, it maybe too late, Right, yeah, it's
(15:53):
hard.
Speaker 2 (15:53):
I think the hardest part is it is dealing with
people's, it's emotional, right,and it's scary, so I think,
getting past that.
So if you're listening to thisand you don't have someone who's
helping you and advising you,it doesn't cost anything to have
a meeting.
Speaker 1 (16:09):
No, we don't charge a fee.
We based on what we've seen inthe industry, that generally is
a misconception that hey, Idon't have enough money to go
sit with these people, or Idon't know what they're gonna
tell me.
Because if I'm looking at mycurrent situation, we'll say,
(16:30):
generally we find one thing thatit's worth sitting for 90
minutes.
There's no fee we wouldn'tcharge a fee and just to see
where you're at it's good.
And if what you have is good,we will tell you it's good and
keep doing it.
Speaker 2 (16:46):
Awesome.
Yeah, I think that's somethingthat people need to keep in mind
.
You get paid, basically, byhelping people become successful
at saving money.
We're creating wealth, orwhatever it is, so there is
really no reason not to make anappointment to sit down and have
a conversation and startthinking about your future, and
I think that's what you all needto do.
(17:07):
So you need to get off thispodcast and make a phone call
the number's gonna be on yourscreen and get in there and talk
to these guys.
Speaker 1 (17:15):
Thanks, Therese.
Speaker 2 (17:15):
You're welcome, thanks.
Okay, here we are.
Another episode on the best ofthe best.
Therese, who do you?
Speaker 2 (00:08):
have here.
So today I have MB Wealth, Ihave Chris McMorrow here and he
is gonna tell us all aboutfinancial strategies and
planning myths all the thingsthat you guys think when you
hear that he's gonna make it sothat it's something that you
feel you absolutely need to dowhich I know a lot of people do
but they get nervous and theydon't make the appointment or
(00:30):
they cancel.
Do you have people cancel allthe time?
Speaker 1 (00:33):
All the time not as much as 10 years ago, but it is
still prevalent.
A lot of people put theirfinancial well-being on the back
burner because life takes over.
Speaker 2 (00:43):
Well, it's funny because life does take over and
time goes by so fast.
You don't even realize when youstart talking about this that
we personally talked aboutfinancial planning for 15 years
and it feels like two or three,so it gets away from you if you
don't just sit down and do it.
Speaker 1 (01:02):
It is and we try to make it fun and it's not a trip
to the dentist.
We don't want that feeling thatit's, ah, I have to go get
drilled by the dentist today andyou're anxiously sitting in the
waiting room.
We try to keep it fun.
It's an experience.
We wanna make sure that weunderstand your goals short-term
, long-term and how do weachieve them, based on what
(01:24):
you're actually doing in yourcurrent day-to-day lives, right?
Speaker 2 (01:29):
So let's back up a second and just tell everybody a
little bit about what MD Wealthis when you started and kind of
what your main things that youdo there are.
Speaker 1 (01:37):
Sure.
So I've been in this businessfor two decades now and I came
up under a gentleman thatmentored me and really taught me
about the work ethic that'sinvolved in building a great
business and how to treatclients and prospects and really
understand how people makedecisions and why they make
(02:01):
decisions.
And money is 90% psychologicaland 10% math, and the ability to
get across to people on exactlywhat they wanna do and hold
them accountable for achievingtheir goals and setting savings
targets and retirementstrategies and things like that
is the utmost important to usand that's why I love this
(02:24):
business is because we're reallyhelping people get to where
they wanna be and hopefullyguiding them around some of the
pitfalls that are out there inthe media, in the paper, the
newspaper TikTok, these daysit's becoming more prevalent
that people are getting theirfinancial advice on social media
platforms and people take it onface value.
(02:44):
It's scary.
It is, it definitely is, and oneyou don't know these people's
backgrounds that are actuallydoing it.
And it's more than just seeingthe specific strategy versus
actually going through anddigging deep into your personal
life to see if this makes sense,because what makes sense for
(03:04):
some people doesn't make sensefor others.
Speaker 2 (03:06):
I think part of that, too, is almost like our
business.
It's a very relational business.
You need to get to know theperson that you're dealing with
and you need to get to know themas their advisor, to see what
they really want.
It's not just about coming inand having one meeting and all
of a sudden it's laid out therefor you.
It's really what are your hopes, what are your dreams?
What is your future plans?
How much money do you make now?
What are you planning on makingin the future?
(03:28):
How do you set yourself up sothat you can keep that same
lifestyle?
Because I think that's whatpeople forget.
They get used to the lifestylethey have when they're earning
and then, when they stop earning, they don't have enough money
coming in to support it, andthen their lifestyle has to
change, which is not a funconversation, right?
Speaker 1 (03:45):
It's not, and we see it all too often that people
that start saving in their late20s, early 30s, that are making
60,000, 80,000 a year, they keepthat same saving strategy even
when they're making six figuresmore than that.
They have bonuses coming in.
So it's part of our process iswe have to have regular review
(04:07):
meetings and just at leastcheck-ins to make sure that
we're still on point and makingsure we're meeting our goals.
Because it's very easy to spendmoney.
We equate spending money aseating out every night.
It's easy to suspend, just likeit is.
It's easy to go to the pizzashop which hey listen, I like
pizza a lot and I could probablygo on a Me too, exactly but we
(04:34):
don't want the dieting of yourfinancial world to inhibit you
from actually exploring whatpossibilities there are based on
what you're doing.
Speaker 2 (04:43):
It's about.
You just said it.
It's like financial health.
Look at people.
They're going to get healthy.
They have a schedule.
They go to the gym so many daysa week.
This is the same thing.
It's a plan on how you're goingto save, and maybe that plan
includes not going out to dinnerfive nights a week, maybe it's
going out two nights a week, orwhatever it is that's important
(05:04):
to you to reach that financialgoal.
But you have to have the goal.
Speaker 1 (05:08):
Correct.
And the joke we say in theoffice is there's 8,000 workout
machines out there, there's1,000 gyms within a 30 mile
radius, but we still have anobesity problem in this country.
You have to walk into the gymand actually stick to a program.
Speaker 2 (05:22):
Yeah, having that little piece of paper saying
your member doesn't really domuch.
Speaker 1 (05:26):
I've had a Planet Fitness membership for 25 years
and I can't take the last time Iwalked into it, so I'm guilty
of it too, but we try to keep itlight and fun.
We don't want to put the personwe're sitting across from in an
uncomfortable situation.
(05:47):
We want to understand whatthey're doing and how do we get
them to what they're trying todo and hold them accountable.
Speaker 2 (05:55):
Yeah, so I think some people get to the point where
they're thinking, oh, it's toolate.
No, I got into a certain age.
Now I'm going to be retiringsoon.
There's no point, is that thecase?
Speaker 1 (06:06):
It is because a lot of people are doing things that
they were told to do.
Think about somebody you knowthat's been in corporate America
for 30 years and when you gethired you see your HR person.
They say here's a 401K, whatpercentage do you want to put
into it?
The company matches X andthat's it.
Some people.
No planning or occasionalplanning is a strategy.
(06:28):
It might not be the mosteffective strategy, but it is
there.
But I always equate it to ifyou were going to get on the
expressway and there was a 20mile backup, wouldn't you want
to know that before you got onto the highway?
Speaker 2 (06:42):
Yes.
Speaker 1 (06:43):
We're trying to divert you around the potential
construction hazard, theaccident that people may be
unwillingly and blindly goinginto.
And, having the insight of theknowledge that has been injected
in my brain for the past 20years, a lot of people don't
understand how some of thesestrategies can be detrimental.
(07:04):
From 62 to 92.
Speaker 2 (07:07):
Well, I think too, you don't understand how easy it
is to build wealth.
It doesn't take a lot if youstart early enough, right?
So obviously, if you'relistening and you're my age
group, sometimes I think, ohgosh, it's too late.
But it's not.
I can still make great strategymoves that will help me for my
future, when I'm older andretired, and maybe I need care
(07:29):
or who knows what is going tohappen in later life.
But if you're young and you'relistening to this, it's never
too early to start.
And if you're my age and you'redoing well and you're
successful and you have somemoney, you can start taking care
of your kids, your grandkids.
There's ways and strategiesthat you can help shore up your
legacy, and I think a lot ofpeople forget about that.
Speaker 1 (07:53):
Correct and in this general area, people want to
leave some sort of legacy andsome people that are getting up
in the years have been retiredfor some time now.
They're concerned about thecost of a nursing home.
Are they properly planned thatway?
What if a nursing home takesall of my assets and I leave my
(08:14):
children, grandchildren?
Speaker 2 (08:16):
Nothing Right.
Speaker 1 (08:18):
And you know so it's we break it down that you know
in your 20s, mid-20s you'reclimbing the mountain.
You're always climbing themountain until you're getting to
the point where you retire.
Then you have to come back downthe mountain because everything
you've accumulated you have toconvert into a source of income.
And then it's once you'reslowly grappling down the
(08:41):
mountain.
It's how do we make sure thatyou have your generational
wealth in place, if that'simportant to you, that it goes
properly to the next generation,with paying the least amount of
taxes possible or at leastunderstanding how the taxes work
when it goes from onegeneration to the next?
Speaker 2 (08:59):
Yeah, I think that's the other thing.
I think a lot of people haveaccountants and they feel like
that's enough, and it's reallynot, because there are so many
strategies that you can takeadvantage of.
You know, especially whenyou're starting to transition
that wealth out, there's a lotof tax penalties if you don't do
it right.
So talking to someone who hasthat background a financial
planner or advisor is reallywhat you need to be doing.
Speaker 1 (09:21):
Correct and you know we have a great group of people
that you know we're notattorneys, we don't draw up
legal papers, we don't, you know, do things of that
recommendations on estateplanning but we will put you in
touch with the proper personthat has done this for us plenty
of times in the past and youknow that's, that's a thing.
(09:42):
We're looking at our clients.
They are the president of theirpersonal economy and how do we
build a cabinet around themwhere you know we're the chief
of staff and to res, you mightbe the minister of defense on
the real estate side mortgageprofessionals right?
(10:03):
We need to build a good teamthat's working for the common
goal of the client and that ismissed so much in this world of
information, the internet,things like that that people
don't have that personal touchanymore and we're trying to
bring that back.
Speaker 2 (10:18):
Yeah, I mean it's.
You're right.
You should have an advisor forevery aspect of your life
instead of trying to be your ownadvisor, because you know how
that works.
It doesn't work out always thatwell.
Sometimes you get lucky andmight hit the lottery, or
whatever the case may be, butyou need to have people in your
corner.
Now, obviously, we're a realestate company and we've talked
some strategies on things thatsellers can do and buyers can do
(10:41):
, and people that own a homemight have some equity that
they're just letting sit therethat could actually be put to a
better purpose.
Do you have anything you wantto say about that?
Speaker 1 (10:48):
Yeah.
So you know every situation isunique and we run into a lot of
different scenarios.
So people that are downsizingto you know I'm retiring, I
don't need the huge singlefamily home anymore.
I'm downsizing to a rancher.
And do I put all this moneyhere?
Where can I get yield?
How is that going to reallybenefit me from an income
(11:11):
standpoint or supplementalincome standpoint?
And there's a lot of differentways to focus on that.
With younger people, as thehouses prices have appreciated
nicely in this area, we've beenable to help clean up some debt
(11:31):
by using some of the home equity.
Now we don't do that blindly.
We always have to have a backend.
Play that hey, we're not goingto do this unless we're going to
save X to recapture this moneyback into your plan.
Speaker 2 (11:44):
You're not going to go out and respend it.
Speaker 1 (11:46):
Correct.
We don't tell people to takemoney out of their house to go
buy a Ferrari.
That would be not prudent.
But there are a lot ofdifferent options out there and
more everybody we know thatcomes into the office.
They want a house at the shoreand they want an investment
property, and it's how do weutilize some of the assets you
(12:06):
already have on your boardproperly to obtain those things?
And if there's ways to do thatwith the home equity and it
makes sense from a cash flowstandpoint, we definitely lay
that out so they understand howthat would look.
Speaker 2 (12:21):
Okay, do you have any suggestions?
One of the things we're findingis especially with these first
time home buyers or sometimesit's not even their first, but
they're graduating from collegeand they are loaded with student
debt which is making itdifficult for them to afford
really what they could if itwasn't for that debt.
Are there any strategies forthem?
(12:41):
Because the interest rates arehigher on these student loans?
Is there some kind of somethingthey could do with that?
Speaker 1 (12:46):
So, again, every situation is different.
From that standpoint, we wouldlook at options.
Does it make sense to do anincome-based repayment strategy?
Does it make sense to do anextended repayment strategy, to
look at from a debt to incomeratio, if we can get the payment
lower and hey, that means wecan get a little bit more house,
(13:07):
or when we're ready for that,because we always wanna have the
strategy in place that ifsomebody wants to pay their
student loan off in 10 years, 15years, even though we may
extend the loan out, we stillwanna be in the same position to
be able to pay it off in 15years, even though we extended
it out.
It's similar to again, I don'twanna speak out of class, but if
(13:29):
somebody wants a 15-yearmortgage, right, we might say do
the 30-year mortgage but nowmake the payment, or save on the
side that you can still pay thehouse off in 15 years, but, god
forbid, you lose your job ifsomebody gets sick you're not
(13:50):
stuck into that 15-year mortgagepayment.
And again, I'm not a mortgageadvisor.
But from the standpoint of cashflow we wanna have options
because things happen.
As part of our process, wewanna make sure that we're
showing up protection componentsand get sure you've got the
proper will in place in casesomething happens to you.
(14:10):
If you have a small family,Obviously health insurance and
life insurance is a big portionof that to really protect.
If you have a young family ornot so young family, in case
something happens to thebreadwinner or a spouse.
And then we go to savings Areyou saving enough money?
(14:30):
Do you have the proper amountof money in case you need four
tires on your car?
You don't have to put it on thevisa.
You've got the money set asideand it's already been planned
for.
Speaker 2 (14:41):
Yeah, that's where I think you come in and really
help, and that's why I think ifpeople would start thinking
about this when they're youngerand start coming up with a great
strategy.
First of all, their leverage isso much better just because the
products are less expensivethat they can get into.
That could give them theability to build wealth.
The older you get, the more youhave to put in to get the same
(15:04):
kind of result right, Correctand listen.
Speaker 1 (15:08):
If you are starting at 22 versus 42, you're gonna be
way ahead, starting early, andit's all about the habit.
If my mom and dad had told meto save 50% of any dollar I made
when I was six, that habitwould have stuck with me forever
(15:28):
.
So when we go through and ourmodel's very visual, we like to
use the whiteboard as we gothrough things and we go through
these simple examples to showpeople that here's what things
would look like and here are thepitfalls that you may be
walking into that you have noidea about.
But once you're in it, it maybe too late, Right, yeah, it's
(15:53):
hard.
Speaker 2 (15:53):
I think the hardest part is it is dealing with
people's, it's emotional, right,and it's scary, so I think,
getting past that.
So if you're listening to thisand you don't have someone who's
helping you and advising you,it doesn't cost anything to have
a meeting.
Speaker 1 (16:09):
No, we don't charge a fee.
We based on what we've seen inthe industry, that generally is
a misconception that hey, Idon't have enough money to go
sit with these people, or Idon't know what they're gonna
tell me.
Because if I'm looking at mycurrent situation, we'll say,
(16:30):
generally we find one thing thatit's worth sitting for 90
minutes.
There's no fee we wouldn'tcharge a fee and just to see
where you're at it's good.
And if what you have is good,we will tell you it's good and
keep doing it.
Speaker 2 (16:46):
Awesome.
Yeah, I think that's somethingthat people need to keep in mind
.
You get paid, basically, byhelping people become successful
at saving money.
We're creating wealth, orwhatever it is, so there is
really no reason not to make anappointment to sit down and have
a conversation and startthinking about your future, and
I think that's what you all needto do.
(17:07):
So you need to get off thispodcast and make a phone call
the number's gonna be on yourscreen and get in there and talk
to these guys.
Speaker 1 (17:15):
Thanks, Therese.
Speaker 2 (17:15):
You're welcome, thanks.
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