Do 401k Plans No Longer Make Sense for Savers?!

do 401ks no longer makes sense for your financial assets so uh i gotta offer you an apology brian and i don't normally do that and when i do do it i often do it behind closed doors because i don't want anyone to ever it means there's a button coming no there's no butt uh we had a client a client friend of the money guy show sent us this article he says like hey just don't make sure you guys saw this and were aware of it and you're like oh man we gotta do a show on this and i was like ryan no no one no one's going to buy into this thing that's just so it's just so out there no one is going to give this any credit and then you started just sending me article after article after article of people responding this and seeing how much traction it was getting you're right we should weigh in we should answer this is this legit is this something people need to know about and it's one we balance we're trying to figure out is this a full show is this a q a intro and we kind of landed on the q a intro and i got to tell you this one upset me and and bo you can go ahead and bring up the headline because and and here's what cracked me up 401ks plans no longer make much sense for savers well i don't know why that much much that much no longer push the needle over a little bit further but to me this is bad look at me content creation because and by the way you brought up that there is very likely a conflict well based upon what his author's background um the fact that 401k assets probably don't allow his product there so that might have played into it but i don't like this because a lot of people who are starting out you don't even know what to believe what not to believe and you see something like this and you very likely could get disheartened you could feel like hey this system's stacked against me why even bother if everything's working against me and i always want to pause and say remember guys 80 of millionaires are first generation now and here's how is that even possible and this is something whenever you get the the green with envy and you think man they must have got it from their parents they must have got it from their grandparents remember this stat 70 of wealth evaporates in the second generation 90 of wealth is gone by the third generation so that's why you have to have this cleansing cycle it happens naturally don't let somebody tell you you cannot do this i come from humble beginnings bo comes from humble beginnings you can do it don't let some person writing a look at me type headline to get clicks derail you from making smart financial decisions so what this author did is he went through and he started trying to put out some reasons why the 401k is not attractive why it's not something that makes sense and so we thought what we would do is let's just respond to some of the points that he makes let's give you sort of our opinion on some of the things he says make them less attractive so the first thing i'm going to i'm just going to go through a few of these things really quickly the first is i felt like he used higher tax rates for 1980 and then he used the lowest possible rates for now sure for he used 2018 um because that was the first year of but of of the tax legislation but here's the thing that i think is is interesting about this he used the 43 marginal rate but he had to take some liberties with that because he assumed incomes kind of in today's dollars back then and look 1980 my parents bought their first house in 19 well they bought their second house in 1978 the house i was raised in was 1978. they paid 60 000 for it i want you to take that i didn't that was not a misstatement 60 000. this is a nice house for a whole room for human beings yeah you know you see the same thing about warren buffett you know people always talk about he he bought his first house for like 60 or 70 you have to realize 1980 was a long time ago so when you see somebody who's making 30 40 000 you're like well that's not a ton of in 1980 terms that was a lot of money so to even get in the tax bracket he was using he was taking some liberties but then he used 28 capital gains that is the tippity top of the capital gains back in 1980 he used zero for today realized that i mean you can have a 23.8 capital gains rate today if you make enough money and he to use zero and here's the part i i don't like about what he did with the tax rates as soon as an individual makes more than 40 000 a year thousand dollars as a couple all of his assumptions blow out the way immediately so now look if you will be low income now in your low income potentially in retirement he might have some points but i don't think that's the money guy audience and i don't know if you're building wealth that's not even the median when we've talked about what the medium income is in the country right now it it is not where he had it so i felt like it was kind of a glass half empty pessimistic look at things to kind of make his point and then bo talk about fees because he just assumed there's all this innovation that's occurred with your after tax your traditional savings accounts but 401ks they've just kind of been stuck in old fuddy-duddy land and not making any changes yeah we have a little unique perspective here because not only do we have a family wealth management firm where we help individuals and families with their financial planning we also offer investment advice to a number of 401k plans out there so i feel like you and i are intimately familiar not only with 401k plans but how they've changed over the past two decades sure if you just look at the last two decades and in his article what he found was he said the average 401k fees were one and a half percent and we said that i don't know where he got that i think he just pulled it out so what we did is we went to the 401k fee analyzer it's a website you can go access and this is including fund expense ratios administration fees and service fees the average 401k in this country has expenses of about 45 basis points now obviously i will agree with him that not all 401ks are created equal some are better than others but if you've been paying attention the department of labor has been putting a lot of emphasis on 401k plans improving so one of the things we have to do is we have to make sure we have really good low cost options we have to have make sure we have really diversified options so if you're in a plan that has average fees of one and a half percent it's sort of a dinosaur it does need to be brought up today's times because that's not what most 401ks look like now go be an advocate i mean you'd be surprised if you wouldn't talk to your hr or whoever your bosses are explaining you might be able to build up enough grassroots support that you can make changes because then that leads to because fees was way off i felt like he just once again he assumed that you had to be have a really low income and then he assumed the worst on fees to make his scenario like i said this is bad click bait is what this was and then what about this one here's another big issue where is the raw huge change that's happening i mean think about it the majority of 401k plans now offer roth meaning tax-free savings opportunities nowhere was that mentioned in this piece absolutely and it's a huge benefit to 401k so i think 401ks have actually changed and improved a vast a vast amount since 1980 and i still think they're a tremendous vehicle to go about saving for the future well that leads to he talked about there's all kind of market pressures out there in the retail sector there's actually a lot of market pressure on the investment of retirement products as well it's like you said department of labor has really been coming down to making sure the sec has definitely been asking the questions to make sure you're using the best share classes and other things notifying what the fees are for the plan every year to all plan participants so there's there's a lot of there's a lot of competition that's naturally happening that was kind of excluding this article and then this is the last point i'll make is i felt like he diminished the moral hazard of making 401ks easy to access because he his part of his solution now like i said you you brought up a great point he might have a conflict of interest here is he's like we got to get the money out of the 401ks and allow in-service distributions so that people can then take this money every year and go put it into lower costs or better investments by what he perceived but i think that we've seen that sometimes you need these assets to have a moat around them to a degree think about that castle you want the drawbridge where there's a very limited way to get because this is money that you'll need for retirement and we've seen it now i don't think it's money guy listeners and viewers but i do think that there's a lot of people that are buying pickup trucks and cars and putting swimming pools in the backyard with 401k assets when they change jobs so if you and they the only reason they're doing is when they change jobs is because that's when they can get access think about if we could do this for employees who are active participants that could be dangerous so okay so those are the things that he got wrong let's talk a little bit about why we think 401ks are still valuable sure the first one get that free money that i still think that's the most exciting thing about 401ks is that most employers in this country will say hey if you just put a little bit in we will give you free money we've used this example a thousand times if we told every listener right now hey shoot us an email we'll send you a 20 bill every single listener would shoot us an email yet there are like 35 percent of 401k participants out there not going to get all of the free match that's available to them and that's the part that i think we talk about it it's either a 50 or 100 match and when you see those type of things and a lot of safe harbor planes are a hundred percent and they vest immediately guys that is a hundred percent rate of return on those assets fifty percent on the fifty cents on the dollar or a hundred percent for the dollar for dollar matches don't leave that behind that is super super valuable that's a hard rate of return to go out there and beat in an after tax account and that can even cover the poor fees even if you have an expensive 401k that can cover a lot of poor fees and i mentioned it previously on what we had wrong with the article but i want to pivot now to what's right about 401ks and there's a reason that the author left this out of his analysis roth 401ks create tax-free millionaire opportunities yeah so i think was it in is it chris hogan's book is that the one where he says that most millionaires attain millionaire status inside of their 401k that's exactly right how awesome would it be if that happened inside of a roth where your million dollars really was worth a million dollars tax free you owe the government nothing when you pull that money out and what i think is amazing is that we talk about this you guys you've seen us talk about 88 times over how you can take a dollar when you're 20 and it's going to turn into 88 by the time you are 65 years of age at 45 years of compounding growth what i think is interesting if you're doing the roth version of your 401k that 87 of the 88 dollars is actually growth that you'll never pay tax on and we even have a chart that kind of walks through so you don't have to because a lot of you are not 20 you're saying what about me because this is still good even for 40 45 year olds so so look at these numbers so if you are a 20 year old you want to be a millionaire you got to save 95 a month to do that well over the course of your career from age 20 to age 65 you will have put in 51 300 but your account's worth a million so 948 700 is just growth that's your army of dollars working for you if that's inside of raw think about how exciting that is it's amazing but it's not over even at 30. at 30 you can see that 89 of the million that you've accumulated is all from growth is all from your army of dollar bills working at 40 it goes to 77 percent at 50 still 55 of your million even if you wait until 50 to start can be comprised of your earnings and growth and then at 60 22 if you can save the thirteen thousand dollars a month required at age six to be a minor by sixty-five and then there are two other points i wanted to make about 401ks and why i think they're still super valuable there's this thing automated savings opportunity what's the biggest thing that creates success is creating the habit of saving now here here's the the sad thing guys the average savings rate in america according to 2018 2.4 of people's income now if you've been listening to us for any amount of time we think that at a minimum you should be saving 15 your real goal should be to save 25 of your gross income so if you're saving 2.4 that's where the average american is nowhere near where the money gas says you should so here's the thing that i think is sad about this is that i think a lot of people it's not an income issue i think a lot of is just nobody has ever developed the automatic behavior the habit of doing this so there's been this new development talking about developments within 401ks just like you have roth is a new development you know a decade or so ago you also have what's called quaka it's qualified automatic contribution arrangements we see this in a lot of the 401ks because they also you know make you it's an opt-in it's basically you have to opt out of being in the 401k versus opting in traditionally you had to sign up for the 401k when you see these quakka plans they're actually automatically enrolling employees as soon as you become eligible and then it actually increases over time and here's what we found vanguard did a study and they found out and this is their participation rates nearly doubled to 93 percent under automatic enrollment compared with 47 under voluntary enrollment so it's over twice almost twice as much right twice as many participants will actually do it if it just happens automatically then if they have to for they have to like opt in to doing it so i think that's amazing you think about nine out of ten people nine of your ten coworkers are actually now participating in the 401k this is because we've seen how bad the average american savings habits are 401ks are incredible just for the sheer fact it's going to create wealth you're going to wake up one day and you're going to be dragged across having assets because your employer set up these automatic enrollment and then think about creditor protection yep i mean these things there is a reason when you're under orissa law and that's what 401ks 403 b's those erisa law protected retirement plans do have more creditor protection don't take that lightly that's actually has a lot of value to it now this article what the author laid out was okay well instead of doing this you should do this and instead of doing that you should we just laid out well maybe there were some mistakes there but we don't ever want you to live in the world of well should i do this or should i do that we think there's actually a road map that if you follow some specific steps you can make sure that you are doing what you're supposed to be doing with every dollar and we call that the financial order of operations yeah if you'll just respect the foo the financial order of operations it fixes all these problems you don't have to just be this support actor in your financial life you actually get to be the star of the show you actually get to make it a lead role of making decisions and maximizing every dollar so why couldn't you if you understand the financial order of operations you could go get your employer match and then if you're just say you're in one of the few plans that doesn't have roth 401 captions you can still go open up a roth ira you can still go open up a health savings account if you have the right health insurance it allows you like i said to be the star lead in your own drama of life to make sure your financial life is not neglected absolutely so and this also helps you from falling prey to negligent headlines of that 401ks no longer makes sense for savers i worry that that author was worried more about uh getting clicks and spreading good financial information because i tell every single one of my friends when they're starting out when they get their first job or when we talk to college class or high school classes one of the very first things we say is hey look when you just start out if you've not done the roth ira thing yet and so you don't have any experience your 401k is a great place to start go sit in your enrollment meeting drink it in listen to the money guy show and get saving because your future self will not be upset that you started taking advantage of that because you're going to take just a little bit today for a great big beautiful tomorrow go do it guys it really is the adult marshmallow test make sure you're saving for the future and you will be successful all right so let's answer some questions you want to do that by the way you said that's at 12 minutes everyone everyone in our pre-show meeting knew there was no way you were receiving did you think how would you think the number was gonna be we had three slides we all knew that you give me a number it was going to be at least 15. daniel who would you think at least 15. nobody thought i was going to do 12. no even though you said it we all looked at you we snickered and we all walked out saying okay well he's going to blow past that all right let's offer some questions hey one question you knew we were in trouble when i looked up and it was 10 minutes later i was like oh no one question came in and i just saw it hit the chat and i'm gonna just i'm gonna go with it really quick just uh i don't even know if the team has put it in the chat they said hey can you talk a little bit more about the uh the creditor protection that exists inside of 401ks now this is something that's been changing a little bit a little bit there's some legislation out there but traditionally if you housed assets inside of a 401k because it falls under the erisa section of the tax code it was protected from creditors and so there's i think i think it's you no i know it's you because you're the only person to hang out with uh there's a fantastic example that you used to give about one way that we've seen this in sort of popular culture with the 401k that's kind of easy to think about well i mean i've read it was all over the financial media back in the day when i don't know if you remember the the case with o.j simpson when he had a civil case brought against him he was he was of course not found guilty of um you know of of murdering his wife and i think ron goldman but then there was a civil case and he was found guilty on the civil front and people couldn't understand how was um o.j still able to have a house in florida and still play golf this is before he went to jail for for the breaking breaking in and so forth but i always told everybody guys he gets a pension from the from the nfl and then he has 401k assets and both of those things have some protection so yes they can come take assets but in florida which is a homestead state where you get some protections there he's living off of the 401k and pension assets and that's a perfect example i mean you can have a settlement against you but if you have the right type of structure in credit or protection you can you know have some some some boundaries there so if you're someone who who uh lives or works in a very litigious industry i'm thinking like a doctor or someone in the medical field it's kind of valuable to have assets inside of a 401k so when it comes to changing jobs or moving jobs or anything like that before you just you know sign the dotted line and roll it into an ira rollover there's some additional research you need to do in terms of should i leave it where it is should i move it to a new 401 k should leave it a rollover and that's a perfect segue to our next question uh i did this i set this one up so i'm so proud of myself i can tell you're proud of yourself this is from brad on youtube he says if you have a 401k from a previous employer is it better to roll it into an ira where you have more options or are there benefits to leave it as is or should you roll it into the new company 401k plan he actually just labeled all the options you have because there really are three options there you know i guess the option was it to cash out and take this there's a fourth option which i'm glad brad didn't use that one but actually brad it your question you're thinking about this right is that you do have three options stay put roll it out to an ra or roll it right into the brand new plan that you have and here's the thing you've got to do some homework i hate answering questions with questions but i do think you have to do homework and you first have to evaluate if you know you're in a world-class plan with your current employer um you know where it's low cost it's got all the the benefits we've talked about with you know roth options and so forth you like the investment choices you got good index funds you got but if you're smaller on the asset level good target index options then you can you say yeah hey i'm just going to keep it here now the thing you do have to be careful of if it's less than five thousand dollars they could they could just send you a check one day so be careful make sure it's big enough that you can't they can't kick you out because that is sometimes they will purge smaller accounts and you always have to be aware of that all right look i like it sometimes as you especially as you're getting close to actually leaving the workforce in retirement you might actually like having an ira hold your assets because you don't have to deal with going through the 401k portal dealing with hr dealing with your employer because they ultimately still kind of have some strings attached and you have more robust investment options inside of an ir there's definitely some benefits with going to an ira especially if you're in a bad 401k that is that is something you can definitely take into account i will tell you there is a caveat though as soon as you move into an ra rollover you do blow up some cool planning opportunities like the roth conversion strategies and other things like that so you have to take that into account now we're getting to a higher level of complexity um and then there's of course the new plan maybe you maybe you're in a cruddy 401k plan right now you got a brand new employer and the plan is good you're kind of excited about then yeah take advantage of um looking at all those options play into the fees play into how you're going to be able to fund it with roth or what's your savings opportunities and just make sure you like the investment selections the truth is you could change jobs 10 different times and have 10 different 401ks and every time you change what you ought to do could vary depending on the new plan and the old plan and your structure and your situation so you need to redo the research every time don't just blanket do the same thing every time that's great and then i want to add one other thing brad didn't say it but i do think it's so worthwhile in saying because people do change jobs now bo yeah don't take the easy road and cash it out because here's the thing guys you are trying to reach we talk about the abundance cycle we're trying to get you to a certain level so you can graduate with a level of success you know how that happens is by creating a critical mass you have to and look if you're changing jobs you need to be stacking those assets you don't need to be starting over every three to four years because you'll never reach the critical mass of them watching your army of dollar bills do all the heavy lifting so you're not working so hard with your brain your back your hands your money will do the work for you if you can just give it time let it nurture it and grow it so it can do that hard lifting for you love it um i'm gonna ask this one okay this one is a little uh oh gosh it's nerdy but it's kind of cool it's not cool nerdy because i i can't believe i just said that this is from barry and this is on facebook and barry said now is an employer allowed to have the match not vest 100 immediately why wouldn't they delay it to promote retention well what happens is a lot of employers do do that a lot of employers will offer some sort of matching contribution but in order for you to be vested there you have to work there a certain number of times so the question you may ask is well why would an employer ever opt to let the matching contribution be 100 invested it's because again 401ks have changed a lot over the years traditionally a k had to go through a number of tests at the end of the year to make sure that it was not disproportionately benefiting the high compensated members of the plan or the owners or the folks in power and that everyone had equal representation well what they said what the law changed to say was so long as you offer a minimum level of benefit which they called a safe harbor and you put in a certain level for the benefit of your employees then it's okay if the owners or the highly compensated folks want to match out and so forth and so on it allowed 401ks to get away from some of that annual testing well one of the things they said is if you want to be a safe harbor plan with the contributions that you put in the employees accounts they have to be 100 vested immediately so that's why not every employer will make you have to wait to vest in those contributions so if you think about it it makes sense i always think about what's the common sense and design of laws and legislation is they want to encourage employers hey if you treat your employees right go ahead and fund their retirement we'll give you a break on all this testing so you can actually save for your own retirement too so they put a little bit of a carrot there now i do want to throw one little caveat in there it's very likely especially if you work for a successful company you might have multiple investing things to consider your match if you're under a safe harbor plan could be a hundred percent invested immediately but the profit sharing might be on a completely different investment schedule over six years or so and there's a reason employers look we do this too our match is 100 vested but our profit sharing it does have a vesting schedule because guess what i want some golden handcuffs we want our folks to be here i love my employees and i want you to kind of have some encouragement to stay here we do that with multiple plans we stack the benefits so that you also are getting a great foundational level of savings that are 100 vested your contributions are always vested by the way the match at our plan at least is a hundred percent vested and then the profit sharing we want you to hang in there with us so you can become a long-term family member love it that's a great question uh this one the next question is from alden this is on youtube and this is something i think that gets misunderstood a lot so i'm glad he asked the question because well let's talk about okay my employer has a roth 401k option right at the back that's awesome however their match is put into a traditional 401k yeah we want to talk about let's talk about that a little bit would it be a bad idea to split that possible growth from one account from from one account to two like is it bad does it hurt me that it's in two separate buckets let's talk about for a moment why it's in two separate buckets and realistically why that doesn't have to affect the investment process at all i think this is a great question because we see this a lot and i'm surprised we haven't talked about it before but people will write us and say look i love that i get to do roth contributions but my my crummy boss they keep putting everything in traditional why are they not putting it in the roth so i get tax-free growth guys once again taking it back to the common sense of what the intent the design when the government and the legislature agreed to allow these type of products to exist these savings vehicles like the 401ks they said look we're going to let companies take a deduction for funding your retirement through these matches through these profit sharings so when they take a deduction the government says hey we'll give the company a deduction but somewhere someday somebody's got to pay a tax bill on that so that's why it goes in traditional whereas remember your roth you are making there's a catch to roth contributions you are agreeing that you will not take a tax deduction on the front end if you can just put the money in after tax but let it grow tax-free so all your interest all your dividends all your capital appreciation all that stuff's tax-free but you did not get a deduction on the front end since the employer took the deduction on the front end it is going to be taxed as a traditional salary to for you know it's kind of as a tax deferred account that will be subject to required minimum distributions and other things like that so great question pay attention to why your employer is traditional even if you chose the the roth contributions but what you get to do is you can allocate the investments and some plans allow you to do different things inside the roth portion and different things inside the pre-tax portion if you want to get like really nuanced with your location but most of times that's not necessary most of the times you can build a pretty decent allocation without getting too sophisticated and it's not going to hurt you the fact that there are these two separate buckets that they're tracking yeah because when you actually ultimately roll the money out your your provider will allow you to split that's when you'll actually split the assets your roth will go to a roth ira or some other type of roth you know if you went to a new 401k or yeah you know what's what's actually still growing tax deferred in the traditional sense so that your your custodian and your your provider your tpa for whoever's doing all that calculation will do that for you love it all right let's this one's not 401k related but it's a good one this is from taylor on youtube uh can you open a health savings account on your own uh it doesn't have to come from an employer question mark given that you're in a high deductible plan so if i work with an employer and i'm in a high deductible plan and i talk to hr and i say hey i want to open up a health savings account and say oh we don't we don't do that am i stuck here there's a there's kind of an order of operation even with this is you first need to make sure and you need to ask is this an hsa eligible plan meaning that because it is by the way if you even if you go shop like the um affordable care exchange there's going to be you can search at least you used to could you know two or three years ago by hsa eligible plans because there's by the way you have to be careful with this because there are a lot of plans that will have very high deductibles you're like man it's got to be an hsa because that's a high deductible if i've got to pay that i need some type of other benefit and then you find out no it's not it's not hsa eligible because something is just off by 100 200 bucks not sure why they play those reindeer games but that's the first question is to say is this an hsa eligible plan and then the second question you have to ask is say does my employer have a provide preferred provider and usually they won't a lot of times they want you then to go out there and find a good hsa custodian and there's a lot of great options now i mean i didn't know if you want to add because i mean i personally what's funny is that i've done the hsa authority but then once i realized fidelity got really serious about this i actually have both because it was too much effort to try to get the money from hsa authority over to fidelity so i actually have the two accounts because remember i'm actually investing my annual contributions so that down the road i have a potential to have some tax-free earnings using that those healthcare expenses i was excited before before my wife and i made the decision for her to stay home with the kids she had a high deductible plan and we did the hsa but it was with like a local bank and it wasn't that great it was kind of expensive and it didn't have low cost investment options so i was really excited when she retired we got to even even though the hsa was started there we were able to go open up a new hsa at a different low-cost provider and access vanguard investment options and do that so yes you do have some freedom and flexibility there if your employer puts money into the hsa though you might be captive so don't walk away from free money trying to go pick your own it's a great question all right well okay one more this one is from youtube this is from ali ali ali i don't think it's a real name i don't know if it is hilarious actually do you think it's like the first middle last name or is that all their first name their mom and dad has a huge huge sense of humor all right my wife and i each max out 401k roth ira and brokerage slash savings it comes out to 35 of our income okay let's start there that's awesome but we are still scared to personally and financially work with a financial advisor any advice so let me throw this out there to start with we are financial advisors right that's what we do our opinion is not every single person out there needs a financial advisor now we do think that financial advisors can offer tons and tremendous value if you're in a financial situation that warrants that or perhaps you don't have enough time to put the energy and effort to your finances that you should or perhaps things have just gotten complicated and you don't know all the knobs to twist or levers to pull or maybe you're just busy right maybe maybe there's something like that going or maybe the numbers have gotten so big you can do it but you recognize that a small mistake with big numbers could be a big mistake those are generally the times we think that a financial advisor makes sense to step in but in the world we live with podcasts and articles and the money guy show and television and the money guy show and all the things out there that you can do like the money guy show there's a lot of free resources where self management is something that you can do so does that mean that you should be scared and you should never reach out to a financial advisor to start a conversation well i i think that i want to go in a little different direction now you know i'm the worst salesman in the world because you pick on me because i am not i'm the i'm the best worst salesman in the world i'll look at that but is um i think of clark howard okay you know if you're anybody who's from atlanta clark howard is a consumer advocate i still love me some clark coward i was down in atlanta for graduation and when i was driving thursday i happened to catch a show and it made me happy but clark i happen to know his um one of his cpas at one part in his life and he used to explain that when clark howard got his taxes done he'd want to sit next to his tax preparer and actually watch how all the sausage was made he didn't put everything and i remember talking to this cpa friend of mine and i was like clark would be a horrible financial planning client because he's just he's already he's a smart guy he's got a lot of stuff figured out i don't think that he would love the experience but i do think there's a lot of people out there who watch the show and listen to the show and then they realize hey yeah i'm a do it i'm kind of a do-it-yourselfer i've done so good on on i knew how much to save i knew where to put it to a certain degree but then one day you'll wake up and you have a million dollars you have two million dollars you go wholly count on the ceo of a seven figure financial organization and um just like probably like a a company when you wake up one day you realize hey i don't need to be doing the books anymore i don't need to be trying to balance this i don't need to be handling hr i need to outsource these things because my operation has gotten to the size that it can kind of support itself that's the part and it's all those things you mentioned bo is do you have enough hours a day do you have somebody when you're no longer here to make decisions for your loved ones that you know that the mindset still continues so it doesn't have to be i don't want who asked the question what's their name it's ali ali ali that's right ali ali ali i don't want anybody feel like we tricked them or dragged them into that experience i think it really is a personalized decision of where are you at with your comfort because yes i mean hiring a financial advisor costs money and that's why we do this whole abundance cycle where we just give it away because i i want everybody who comes to watch the money guy show come absorb this stuff here's a great thing about the money guy show is that there's zero catch i mean if we were actually giving away a bunch of poop nobody would ever graduate to this abundance cycle but that's why it's a self-proving type thing is if you'll come do exactly what we tell you to do we will teach you to become wealthy we will teach you to be successful and it will prove itself and that's why we have so many clients we've been doing this 14 and a half years so i started this show in 2006 and it just the tree create continues to create fruit because i think these concepts work you just have to ask yourself do you get to the point that you just want it off your plate or at least you want a co-pilot to help you make these decisions and that's where we kind of step in and if you're nervous and if you're uncomfortable do some research make sure you understand the different types of financial advisors out there what a financial advisor can do is the person you're talking to a commission based advisor are they a fee only advisor are they a fee based advisor and what fits your needs what's the thing that makes the most sense for you and then reach out and have a conversation and if your spidey senses start going off because you feel like you're getting the hard sales pitch or the things just aren't making sense and lining up just walk away that's okay it's okay to do that sort of investigation you don't have to get in a hurry no that's always what's funny is we've had so many people we started discussions and i mean my longest was 10 years yep you know every year he'd call i mean i i've told that story a number of times and i've had other people actually he's not the only one now i've had two that are 10 years or greater because one came to me with children that were in elementary school and then now they have kids that are out and i'm actually talking to their adult children holy cow man how did i get so old i know that's what i'm hearing right now how old you are no no i still feel young at heart but man when i tell stories like that i'm like gosh this show is almost old enough we're go it's gonna be sitting in the driver's seat i'm gonna be sitting over in the passenger seat saying be careful you know be when you're parking don't hit the curb you know this this show is almost old enough to drive so it's getting kind of crazy um well guys we love getting to spend time with you we love getting to hang out answer the questions for you if you haven't had a chance to go check out our new website go to aboundwealth.com we just redid it revised it got some new pictures up there got the team up there if you haven't had a chance to go to our money guy website we have a resource page that is for you we've got pdfs and templates and spreadsheets and ebooks and things that you can take to help you take your finances to the next level so if you've not gone to go check those out please please do that reach out to us let us know what you're thinking if you have a show idea or if you have content ideas let us know we'd love to hear from you that's outstanding well guys always a pleasure to do the q and a shows every tuesday 10 a.m so continue to reach out i guess i just repeated what you know just keep going just keep saying all the things that i said my god team out i blame that on the lack of food

Channel: The Money Guy Show

Views: 52,408

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Id: 3mqtOs8CZcE

Length: 38min 15sec (2295 seconds)

Published: Tue Aug 04 2020