Aren't Advisors for Old People? | Series 1.7

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Welcome to the Enjoy More 30s: Family Finance

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podcast, the only podcast dedicated to making life more

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enjoyable for young families by hitting on the financial topics

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

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from simply enjoying life.

Joseph Okaly: 00:00:17

Hello, and welcome to the last of the first seven

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episodes here on the Enjoy More 30s: Family Finance podcast. So

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today's title is, "Aren't Advisors for Old People?" And

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what we're going to cover today is what you need to know about

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working with an advisor, and what you can do about actually

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finding the right one if so. Now in our office, if you hear

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ringtone go off during lunch, we pretty much just all look at the

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people that are over 50 in the office to see who's going to

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answer their phone. My phone has probably been on silent or

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vibrate for so long- I can honestly tell you, I have no

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idea what my ringtone would be if I happen to ever turn it on

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again. The thing is, we all still do have cell phones. And

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we all need cell phones. And we just may kind of need them a

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little bit differently based on what generation we come from.

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So what you need to know is when it comes to having an advisor,

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there are some kind of generational items that can be

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at play just like with the cell phone. Most advisors, and this

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is kind of a fact, most advisors are pretty old. There's really

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only been one generation of advisors. So your grandparents

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probably didn't even need an advisor because they had

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pensions, Social Security, and just frankly, a shorter life

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expectancy. The advisor profession is really only around

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30 years old at most. So it's still really, really new, and

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this can kind of shapes our mindset that advisors are for

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old people. The other fact that goes into this kind of mindset,

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and I'm going to take a quick second to jump up on my soapbox

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here, is that my industry as a whole is, in my opinion,

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terrible at providing advice to young families and young people

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in general. Advisors get paid more when there's more money

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involved. So who do they, you know, who do they chase? They

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chase people about to retire, or families that have established

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wealth. And that's just kind of how it is.

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So you turn on your TV, and you see commercials. And these

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commercials are predominantly with what kind of people? I

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generally see them with people that look like my parents- look

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like my parents meeting with advisors. And again, so they're

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subconsciously telling you that advisors equal for old people.

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So you're not really wrong at all for thinking that because

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that is quite literally what they're telling you- advisors

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are for old people. The ironic part of it, though, is that when

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you're young, getting proper advice is just exponentially

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more powerful. It's like training before you start

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running the race. Insurance is likely cheaper and much easier

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to get because when you're younger, there's a much better

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chance that you're going to be healthy, and investments have

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more time to do more. A theory of mine, that I've kind of

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developed over my 12 years so far in the industry, is that

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almost every middle class family in America could probably save

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$100 a month more if they really wanted to. If you look at your

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credit card bill, I would almost guarantee that it varies by more

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than $100 a month. And if that's true, that probably lends to the

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idea that $100 a month more is probably something that you'd be

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able to do. Again, if you really wanted to.

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Let's say that you went to an advisor at some point, and they

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were able to point this fact out to you. So you were able to save

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an extra $100 a month that you otherwise would not have done.

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If we assume a 7% annual return, that $100 a month, over 20

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years, you'd wind up with around $50,000. So not too bad. Now,

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let's say because we're all young here that we didn't do it

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for 20 years, we did it for 30 years. That $50,000 now would

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turn into $120,000. So almost two and a half times as much for

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that extra 10 years. That's the power of when we start young-

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it's exponential growth, the money gets to grow on itself.

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Now if we stretch that out over even further, let's say that you

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were smart enough to get this advice right after graduating

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college. You may be able to squeeze in 40 years worth. And

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now you're all the way up to $260,000. So time is money kind

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of takes on a whole new meaning. And this is just for $100

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example. Let's say that we doubled it to $200 a month- that

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wouldn't be crazy right? Now, instead of 260,000 over 40

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years, you're up over $500,000. It really doesn't take much to

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see how impactful time can be when we're dealing with

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investments and letting that money grow on itself. And a lot

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of times it's just starting off with the right mindset; just

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starting off with getting some of that proper advice when we're

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So what can you do? The first thing is kind of ask yourself if

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young.

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you may be assuming advisors are for old people. If I was not in

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this industry, and I just got my financial information from TV or

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wherever else, I would probably assume that that's true. Now,

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you obviously do not have to have an advisor. But really ask

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yourself, if this may be a preconceived kind of notion that

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you already have, or if you're making a conscious choice. The

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determining factor should not be age at all, is pretty much my

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point- it should be desire. If you don't want an advisor, you

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want to self manage, then that's great. That's your choice, and

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if I can help with this podcast at all, then that's just

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fantastic. But if you like the idea of having a professional

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guide you, helping to provide protection and direction and all

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that kind of stuff, then don't assume you have to wait until

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you're in your 50s.

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So a quick recap of the episode today. Ask yourself, do I think

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advisors are for old people? Am I subconsciously kind of

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thinking that? Is that something that's in my head as a

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preconceived notion. The second thing is kind of acknowledging

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the fact that if I start young and I make the proper decisions

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now, what a kind of growing exponential effect, in a

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positive way, that that could have for me. The last thing is

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asking yourself, do you want an advisor? And if so, when you

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would want to have one. You absolutely do not have to have

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an advisor. However, make it a conscious choice one way or the

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other, and don't get to a point where you're 55 years old, and

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you start thinking like, "oh, maybe I should have one of these

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things." So have some kind of a plan ahead of time. My firm has

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young clients that are scattered throughout the country. We're

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definitely not the only firm out there that does. So just because

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it's not something that is predominant, doesn't mean it's

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not something that you can't find if you take the time to

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kind of look at companies that are out there that can help and

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looking to help with young families.

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As always, thank you so much for joining today. Really had a

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great time with these first initial seven episodes in the

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"Your Money Mindset" series. As always, if you did enjoy this

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episode, please don't hesitate to review us on Apple podcasts

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or wherever you may be listening. There are literally

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millions of young American families out there I'm trying to

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reach and help just like you. Stay tuned, coming up soon there

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will be one last episode- a recap of this first initial

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"Your Money Mindset" series. Gonna hit on all of these major

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topics so you have everything in front of you here with your

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spouse and one episode. And you can take some time to really

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remove some of these items, again, that caused us you know,

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anxiety, and hold us back from really being able to just focus

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on enjoying life. Which again is the whole point of why we're

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here. Thanks very much and look forward to connecting with you

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again soon.

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The conversations on this show are

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Joe's opinions and provided for general information purposes

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

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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accountant, lawyer or other professional before acting upon

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any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

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of TFS securities Inc, and TFS advisory services and sec

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registered investment advisor member FINRA/SIPC.