Empower Your Finance Team with Tech Sales Closing for Finance

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good morning how are you guys doing good how are you I'm doing great thank you how are how are the kids I don't know they're not golfing a lot so I see how the kids doing they're they're doing well they're doing well are they making their grades they are you know there's always room for improvement but they're doing they're doing well we're we're lucky to have two as good as they are so and John how how's how's the work going how's the real estate market it it seems to be improving a little bit there's there's at least more conversations okay um so I'm talking to a few more people that are interested in at least starting to look for that new house or they're interested in possibly putting theirs on the market or doing something so transactions haven't really started ticking up but at least the conversation's had so okay hopefully that'll be a good sign in the next few months well you know many of my clients uh invest in real estate so you know they're looking to buy and sell properties and you know any of them are looking for a real estate agent would it be all right if I were to recommend you with a group of others please I would love love it ad congratulations uh new manager at Swift Productions Swift is doing well glad you hear that great um so what's your new role I manage a group of uh it guys that work on the Productions okay awesome it's a herd and nerds all right I like that all right guys uh before we get started I I just want to point uh one thing out the the document that I prepared for you today is uh it's a very valuable document and from from a monetari standpoint and just the value that it's going to create for you and in your life but uh I want to point now because I don't want this document to just collect us you know in some computer desk drawer um the average firm charges around $3,000 for this document but for me and in my process to build your trust you know we're providing this free of charge are you excited about that that is that is great cuz I was getting ready to KCK if we were going to have to write a check for $3,000 he told us last time that he wouldn't give us any money and he' tell us ahead of time I'm try he's built my trust thank you um so last time we talked about a lot of different things we spread the cards out um might have been a new experience for you tell me a little bit about that it Le to several interesting conversations like I said we we figured out after 20 plus years of marriage we still disagree on some things and we had to talk about those more than we more than I think either one of us really anticipated we would but it uh it was good I think it was a good uh activity for us it got it got us to really think about those things we didn't disagree on the kitchen or anything travel golf money no some people think that that might be a little silly at first but it really helps us put together a plan that revolves around both of you not just a plan for ad not just a plan for Joe but a plan that brings both your goals together so this is the actual document there's 29 Pages here we're not going to focus on on all of them there's there's a few important Pages we're going to stick to those if you guys have any questions going through the document later later on this evening later on this week just give me a call and I'll address any concerns that you have does that sound fair good okay so what's the first thing you notice it's circular repeating it's a big wheel just looks like it just exactly keep rolling along this wheel essentially represents our process and the continuous process so as your goals change as things in your life change our plan is going to change this is going to be a living breathing document it's it's not just a a one and done that's good does that make sense yep all right so so we've already kind of gone through part of this we we've defined our major life goals we we've come up with the ideal and acceptable and then through through the cards we've prioritized them um we're going to move through the process through this meeting and then as we review and as goals change we're going to update the document so let's take a look at your net worth statement and the one thing that stood out to me right away is this number right here will you read that for me 71,000 that is your netork congratulations that puts you in the top 5% of the American population save that did you guys you have you heard of the 1% well you guys are the 5% and we're going to try to get you into the 1% okay protesters um take a look at these accounts is there anything that we might have forgot or is there anything that might might be inaccurate that's all active and really really what we're talking about and really what started this discussion Ed was your IRA okay but I noticed a few other accounts that I had some questions about tell me about this brokage account um what's a account we have Ed it's got some stocks in it how long have you how long have you had it with that like six seven years seven years okay how's the performance been um well we kind of kind of pick our own stock so uh sometimes we do good sometimes we don't do so well so what type of research are you using when you're uh making those stock picks you know newspaper online talk to the Ed guy you know so how's he been he's gu more mutual fund expert so okay well I think I might have some ideas on that account too well we'll touch basic a little bit later um Jo being in the in the real estate business I see that uh you guys sell a mortgage on your house um obviously you're aware of where rates are right now have you guys refinanced in the past few years no we haven't we we've talked about it one of us is more prepared to do that than the other one so we're we're still trying to convince the other one we need to do that okay who's who's more prepared well being in real estate I understand what the rates are and how how they might move but you know someone's really conservative it's sort of like the stocks and the other things he's played with he he he doesn't move as quickly as i' want to on a few things so but we have talked about that we get a good quote so I'm I'm with Well Fargo advisers but then we we have the bank so we're a subsidiary of Wells Fargo the bank and Wells Fargo the bank actually hand about one in three mortgages in the entire country so a lot of experience guys that's not something that I specialize in but I can be a resource for you with that okay um again 5% congratulations guys ad have you ever taken a stress test yes why did you take that stress test um because it was for free and I want a good check on my heart all right well anything free I'm all I'm all about that too um we've stress test your goals so what this represents is the stress test for your goals we ran your life a thousand times and you got down on your knees and you proposed to Joan and she said yes 1,000 times and then we ran your goals through the simulation 1,000 times these numbers 50 75 90 and 100 they represent the percentage that we were able to achieve your goals so this blue area between 50 and 75 means that 50% of 50 to 75% of the time that we ran your goals you were able to achieve them this green area 75 to 90 means that you're able to achieve your goals 75 to 90% of the time and 90 to 100 would be 90 to 100% of the time so do you understand that yep knowing that where do you think you would want to fall blue green or red hey you want to get a or better we expect the kids to to bring home grades in that upper category so okay you guys are close ideally you actually want to be in the green area and uh let me explain that there's an analogy I like to use do you guys fly often you fly fly commercial y m okay how often how excuse me how early do you leave for your flight three hours 3 hours okay get coffee traffic let let's imagine leaving 3 hours before your flight to be this green area now what if you left only an hour before your flight well it's an hour and 15 minute drive what are the chances you're going to make that flight close to zero close to zero that is the blue Target now imagine showing up to the airport eight hours before your flight why would you not want to do that just be sitting in the airport all after lose some sleep There's an opportunity cost you're you're wasting time you could be using that time and doing more valuable things same thing with your money if we were saving two much for retirement we're sacrificing our lifestyle today so what I want to help you guys with is maximize our lifestyle today while still being able to achieve our goals in the future it's a it's a balance sounds does that make sense all right this is how your goals came through the stress test you guys told me that in retirement you'd like to live at least at the very minimum of $60,000 a year ideally 90,000 my recommendation to you is that you can confidently live off of $70,000 in retirement that's good $10,000 how how is that going to impact you going to St Andre go golf going to St Andrews are you going to bring J she can go shopping in London London okay travel decorations for the kitchen had you said that if you had to you would work till 68 I'm telling you that you can retire at 65 that's three more years no it's not it's six Strokes off my six Strokes okay Joan same thing 64 we're going to have you at 61 you guys are both going to be able to retire together that's great right um I know the kitchen was very important to you guys uh have you started any planning with that have you looked at any cabinets or anything not yet we you know we were thinking it might be seven eight years before we would be able to to Really remodel the way we way I would want to do it so well I'm going to tell you guys that you're going to be able to do that a little sooner Joe because yeah we're going to be able to remodel the kitchen at your ideal time and it's not you're not going to have $55,000 to do it you're going to have $10,000 to remodel your kitchen you guys mentioned you wanted a travel it's 40,000 right excuse me excuse me 40,000 thank you you know it's hard to read upside down Steve H it's tough but I'm working on it so you guys said 30,000 but we're going to go with 40,000 okay okay and then traveling is is where that 10,000 comes in you said at the bare minimum we'd want $5,000 a year to travel I'm going to say double that take an extra trip and that's every year that's every year gets us 12 St yes um you guys want to send your kids to school of course everyone wants to provide a better life for their children than they were provided for themselves uh and you're going to be able to do that at the bare minimum you wanted to at least have $9,000 roughly to send send the kids to school I'm to tell you that you can double that $117,000 and you know if the kids keep on making their grades hopefully there some scholarships and grants and hopefully they won't have to take out too much in student loans there's going to be a little cost to this you're going to have to save a little bit more but I think that I can help you guys find that money ed through your race and Joan if we're able to refinance that mortgage and and lower that monthly cost I think that we can use that extra money to put torture at iron R and it's not a cost to me it's just a cost to your lifestyle right now we're going to save a little bit more for the future does that sound fair based on your your raise and and refinancing the mortgage it should not affect your lifestyle at all y so here is where you guys ended up with with our recommended goals 81% confidence level if we're just looking at the ideal the bare minimum uh 99% of that time so there's definitely a major opportunity cost to that uh unfortunately with with all your ideal goals to Pie in the Sky retirement that's still going to be a flip of the coin so we're going to focus on these recommendations all right okay tell me tell me what you know about the S&P 500 or the Dow Jones the the indices that measure the economy just index 500 large cap companies and they report how they're doing it kind of gives indications of how the whole whole econom very insightful when you see that go up or down how does that make you feel no right now I invest in a couple of those companies so you know when it's going up chances are they're going up so it's pretty relative to you then this is going to be the Ed and Joan Index right here this dot this dot is going to measure how you guys are doing it's going to measure your accounts the performance it's going to go up and down as your value goes up and down this top line here represents that 90% threshold anything above here we're in the Red Zone anything below this this represents a 75% threshold anything below this we're in the Blue Zone we're back to the flip of the coin so we want the dot to float between these two lines and that's how we know that we're going to be on track do you have any do you have any questions about that no but how how often is it update well you're going to be able to log in on your Wells Fargo advisor's account and look at the ad do whenever you want to and it's also going to show up on your statements and for whatever reason if if you're losing sleep at night and you don't have a connection to the internet uh you can give me a call and I'll be able to update you on the that as well all right so anytime it moves above or below we need to either you might want to take a look at that and you want to be aware of where the dots at if we see a trend over time of the dot falling below the line then then we might have to reevaluate where we're at but if it if it's down for a month or or two months we don't want to make any knee-jerk reactions to the market um one of my jobs is going to be able to keep you guys on track financially but also emotionally because investors tend to make emotional decisions with their money I I want to help you guys take the emotion out of it that's great okay so this represents your your current allocation so if we don't make any changes there's a 56% chance that you're going to be able to reach those recommended goals again a flip of the coin if we Implement my recommendations we have an 81% chance of reaching our goals so this the long and short of it and how are we able to accomplish that how do you guys think we're able to account take more risk take a little bit more risk more importantly diversify out of this cash alternative out of those CDs they're earning pennies for you so we're going to increase your average return from 6.6% to 7.7% now to do this we have to take a little bit more risk see right here the downside risk is minus 5.5 we're going to increase that a little bit to downside of -6.1 what that means is On Any Given year there's a one in 20 chance that your account could be down 6.1 or more excuse me so how are we going to do that tell me what you know about mutual funds for a fund manager without and priz equities and you to pull them that way people can invest smaller amounts and get into the market do you have a mutual funds in your 401 Cas probably I I know there are a few in mine it's they're really sort of limited I mean some of them are sort of focused on International or an Emerging Market whatever that may be okay but it at least recently has been performing pretty good but then there's another one that's I think it's something something conservative and it really hadn't done anything very well so other than I look at them and we don't I in my our uh my 401k there's not a lot of options so I haven't really paid a tremendous amount of attention to well my my recommendation the vehicle that we're going to use to implement my recommendation is going to be a basket of mutual funds and that's going to give us a couple layers of Professional Management we're going to have the the actual fund managers who are managing the mutual funds we're going to have our team of analysts in St Louis telling us which mutual funds that were allowed to use which ones have been scrubbed and then we're going to have myself uh we're going to have we're going to have myself um excuse me analyzing your goals and then figuring out which funds are going to best suit your needs okay and the product that we're going to use to do this is called fund source and it's an advisory platform so the old way of doing business was pretty transactional based if if you want to buy mutual funds you would pay between a five and 6% commission to get into the fund with me there's going to be no cost to get in or out of the platform and we're going to rebalance on a quarterly basis uh traditionally every time you would rebalance you would have to pay a 5% fee to buy the new funds and then if sell the old funds um we're going to do that for you behind the scenes and there's going to be no commission to do that and that's that's going to that's going to lock in your gains we're going to continually be selling high and buying low and that's what you want to do um specifically a couple of funds we're going to look at are the Pim comp tinco total return fund uh this fund is managed by a gentleman named Bill gross and he's a think tank when it comes to fixed income the Federal Reserve actually uses him as a resource when they're deciding what to do with interest rates uh one of the other funds that I wanted to highlight was the American fund uh American Funds is one of the oldest mutual fund companies in its existence and they use a team approach so in that fund you're going to have several layers of manager in itself um now there there is a cost we we we mentioned there's no commissions to buy the funds but there there is a fee so the the fee that I charge is 1 a half% and that's what myself and Wells Fargo charge for Our advice um and then the funds themselves have a cost as well but because we are with Wells Fargo we're able to use institutional shares typically Ty Al you need between a million or $10 million minimum to get into these shares um we have billions of dollars on your assets and we're able to command lower fees from the mutual fund companies we're able to pass those savings on to you so all in it's going to be about 2.3 2.4% however you're not going to see that extra 1% that's going away from the mutual funds they're going to take that out behind the scenes but you will see the 1 and a half% fee that comes out if your account goes up my fee goes up if your account goes down my fee goes down most of my clients appreciate that because they realize that I have some skin in the game I'm doing my actions are are reflecting your interest because I want to get paid you guys want to get paid we're on the same page um now the other thing that we need to talk about is that brokerage account it's it's a significant asset that you have and um the performance of that account is really going to be tied to this plan um so I need to be updated constantly on that brokerage account because this plan is is worthless if we don't have the performance of that track and frankly I don't feel very comfortable with that brokerage account being held outside of Wells Fargo does that make sense to you guys you can think about it okay I would I would highly consider it and uh you know really the point I kind of want to hit home is is really this confidence level this 81% confidence level is is out the window if if we don't have that brokerage account over here because I'm not going to be able to see how it's doing and how it's going to affect your goals um so really the only question here is do you want to move that brokerage account now or do you just want to get started with with the IRA let's just get started let see let me see how updating it goes okay it's kind of hard to give it up all right I understand you know Everyone likes to pick their stocks um we we'll have our secretary come in and get the paperwork started Joan the other thing I wanted to talk about with you is is maybe um a referral a referral contact between yourself and myself um you know do you leave any gifts behind after you sell a house I usually do okay usually you know a bottle of wine or you know something it just it depends on how well I got to know the client do most of the people that you're working with have have children a lot of them do a lot of them do L one cool idea that I've heard that Wells Fargo has told us that we should look into is I want to help you Johan you're going to be my client I want to help you what if we set up uh a small College savings fund maybe 50 maybe $100 for the children of the parents that purchase your house I can set that up for you and um I think that would be a great great thing for you to do it not and then when when the people who you sell that house to tell their friends they would say hey not only did I buy my house from this person they found they found my dream home but they also helped me set up a college fund for my kids okay I like that how do you feel about what we've done today that's great pretty confident that we stick to the plan what is your favorite part about this whole this whole process at watching the dot watching the dot who do you know that also wants to watch the dot oh Frankie Frankie Frankie you think Frankie oh yeah he would I think he would he he likes to keep track of exactly what he's doing and how his Investments are he wants to tell us about them all the time okay what is uh uh do you know do you mind if I give Frankie a call I'll introduce you okay awesome I'd appreciate that Joan is there anyone that maybe you sold a house to recently that that might be interested in something like this well like I said it's been more conversation here the last several months and I haven't really been able to to close I've got one couple that we've I've shown a few homes to and and they've got um two kids so I I really like the idea and hopefully if that works out we'll we'll be in touch and 529 okay thank you I really get paid in two ways you know obviously I I earn a fee for the work that I do but the other way I get paid is through referrals so my clients help me build my business and I really appreciate that and the one promise that I'll make with any referrals that you give me is I will treat them the exact same way that I treated you guys so you can confidently know that they're going to go through the same experience that you have question I want to I want to make everybody special well thanks again for coming in I'm going to give you guys a call later on today we're going to stop an appointment just to review everything make sure everything's tra transferred prop excuse me transferred properly and uh we'll follow up every so often okay okay all right thank you