0:00:00 - Speaker 1

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through registered representatives of Cambridge Investment Research Inc. A broker-dealer member, finra, sipc Advisory Services through Cambridge Investment Research Advisors Inc. A registered investment advisor Cambridge and Greenway Wealth Advisory are not affiliated.

0:00:20 - Speaker 2

It's time to dive into some insider secrets of investing and retirement planning To make your retirement as smart and as elegant as possible. This is Money Chic with Sherry Rash. Welcome into another edition of Money Chic, women and Retirement, with Sherry Rash and myself Talking about red flags how to spot some red flags when picking an advisor or shopping for a new financial professional. And we're going to get into that this week with Sherry here on the program. As always, if you've got some questions, need some help, reach out to Sherry at GreenwayWealthAdvisorycom. That's GreenwayWealthAdvisorycom. She's a financial advisor and money coach. What's going on, sherry? How you doing.

0:00:58 - Speaker 3

Doing alright. How are you?

0:00:59 - Speaker 2

Doing pretty good. I don't know about you, but like red flag to me. All sorts of light. We've got red flags in all sorts of places in life, like gas station sushi. That's a tongue twister, that's a red flag, right. I don't think I'd buy that, I'd stay far away from that, far, far away. I was mentioning that to somebody else the other day and it's like you've seen. I was like, yeah, you've never seen that before. I've seen that at gas stations and it terrifies me.

0:01:26 - Speaker 3

I will say gas station, though fried chicken is pretty good. Especially royal farms is big in my area and they were voted, I think, by like wine and food and wine, the best fried chicken, but it's a gas station, so that's awesome. Sushi, no fried chicken Probably.

0:01:50 - Speaker 2

I think the quality of the gas station may have something to do with it too, right yeah? You pull it and you look around, you're like mm-hmm. Kind of the same thing when you stop at gas stations. In the rest room we're evaluating. Nah, I'm going to keep going.

0:02:00 - Speaker 1

I'm not even going to go. Look right.

0:02:02 - Speaker 2

So anyway. So that's the idea with red flags Like some things, that should maybe send off a warning that this is a good idea, not a good idea. And it's a little harder sometimes when you're talking about the financial aspect, the financial realm. So hopefully it will give you some things to be aware of how to spot them. Maybe just look for differences, because maybe it's not a red flag, maybe it's just kind of a soccer term, maybe it's a yellow card, right when it's just a little bit more.

Let me get a little bit more information before I see if this is the right fit for me or not. So let's debate a couple of these things, talk about them. First one on my list is an advisor who works with people of all ages and all levels of wealth. I feel like this one's a little bit of a catch-22. Because when you're first starting out as a young advisor, you probably are trying to take as many clients on as you can so that you can kind of build your business up and just help people and whatnot. But at some point I think we get better the longer we've been doing this and we started to kind of focus in on our strengths, I suppose right. So I don't know, what do you think about this as a red flag or possible red flag?

0:03:01 - Speaker 3

It's a possible red flag. I think it's something to definitely be aware of. The all levels of wealth. Some advisors have minimums, which some clients look at as a pro or a con right, but an advisor who works with everybody To me the issue there is that they don't specialize. So what are you good at? Retirement income planning is very different than accumulation planning, right? If a 30-year-old is just looking to accumulate wealth, it's a very different strategy than a 63-year-old that's looking to retire in a couple of years. So could the advisor be good at both things? Absolutely, but I think it's more important to understand while I'm retiring, how do you work with clients that are retiring or I'm accumulating? How do you work with clients that are accumulating is important to look at, and advisors are definitely getting more zeroed in on who they work with. That way, they can become an expert in that specific field or that specific person.

0:04:09 - Speaker 2

Yeah, I think that's a good way to look at it, because I know that sometimes advisors work with Primarily they're doing retirees or pre-retirees, but then they wind up doing generational stuff where they're working with a couple that's a retiree, but now their kids are coming, but their kids may be in their 40s, right, and then their kids may be in their 20s and they're kind of helping them a little bit, but they don't necessarily work with everybody of all ages and all levels of wealth. It's just kind of a family in-house thing that started because of the actual retiree client.

So, again, it kind of depends on what it is you're looking for and making sure that it's the right fit for you, that they have the right speciality. If you will, you could use the simple old doctor thing. Right, we no longer see pediatricians when we're older. Right, we go to a cardiologist or whatever.

0:04:55 - Speaker 3

Make sure that they can continue serving you as you enter different phases of your life.

0:05:00 - Speaker 2

I would say there you go that's a good way to put it Good news advisors, the advisor that just hey, this is great, everything's good, everything's fantastic all the time, or don't worry about the market, it'll come back, kind of thing right? So the financial situation always has that kind of rosy outlook. Now, at first that might sound a little weird, because I mean, we like to get good news, but everybody's a little different. I'm the kind of person that hey, don't sugarcoat things, especially when it comes to, like, finance and health. Right, tell me what I need to be doing and give me the straight skinny, if you will, so that I can make those choices and I have that information in front of me versus kind of sugarcoating.

0:05:38 - Speaker 3

No one likes to be the bearer of bad news, Especially when that bad news is about your money or your finances or, like you said, your health. But you also have to be candid and real. I'd much rather have the conversation of you know that 65 year retirement you wanted. We're probably going to have to push it back a couple of years. I'd rather have that conversation a few years in advance and have them maybe be mad at me for a little bit, than versus 65. And then they're running out of money 10 years later right, so it's.

and it's kind of like I equate it to if you have an outfit on and it doesn't look good and everyone tells you it does, but it doesn't. I'd rather someone say, eh, that's not well, you go change. I'd rather hear the hard truth and maybe be upset for a minute, but then no, in the end I'm doing the best for myself, it's somewhere in the background, your husband shaking his head no, he's not touching that one with a 10 foot pole.

0:06:37 - Speaker 2

But yeah, but I agree with you Same thing. I changed my cardiologist we, as I just mentioned a second ago. Funny enough, because the first one I had was just a little too. His demeanor just didn't resonate with me and I didn't feel like I was getting the best information that you know that that pushed me forward into doing the things I needed to do. Right, the way he delivered it.

So it's a, and you can find that with an advisor, right, you could be working with someone who's they're financially they're doing a good job. Not essentially, they're not doing a good job for you, but something about the way they talk with you or the way they they share information just doesn't resonate. And it kind of rolls into my next one, which is maybe it's the technical jargon. Like every industry has technical jargon and they may not mean anything by it. Right, share, you use a lot of terms all day long that most of us are not used to hearing and so if you're working with an advisor who's maybe talking over your head and you don't let them know that and they don't bring it back down to a level where it resonates and makes sense with you, then maybe that's a red flag.

0:07:35 - Speaker 3

Right? Are they using the jargon to prove to you how smart they are? That's what I'm so is is or is it? Sometimes it is just second nature that you know. I say different acronyms and and phrases every single day and it's just. It rolls off my tongue and I don't think twice about it. I'm not trying to confuse my client when I'm talking to them. And also, if your advisor is talking to you at a higher level, are you comfortable enough to stop them and say can you explain to me what?

0:08:07 - Speaker 2

that means Right, right, yes.

0:08:09 - Speaker 3

And if you're not comfortable enough, that's probably, that's probably more of a red flag. Great point. I was just on the phone yesterday with a client that has a REIT and I kept saying REIT, reit, and to me I know exactly what that stands for. And she said can you remind me what that stands for? Thank you so much because it checks me, because I need that. That just checked me to say, shari, remember when you use acronyms and say what it stands for as well, just to make sure everyone's on the same page.

0:08:38 - Speaker 2

Yeah, I agree with you 100%. That was a great point on that, because you may not be doing that, but if they're, you know you got to find that line to where it makes sense, because if it's, if it is too complicated, then are you actually even going to implement it right, the strategy or the plan or whatever the case is. So, yeah, I think it's a great point there with that one.

And again a lot of times it may not be mean, right, you're just. You get into this rhythm and you're talking. You know, alpha beta, so on and so forth. Pe ratio, yada, yada, yada.

0:09:03 - Speaker 3

You should be able to go home and explain to a friend or your, your child what you talked about with your financial advisor that day. So you should be able to go home, put it in your own words, but have an understanding of what you discussed and what you're implementing.

0:09:20 - Speaker 2

Yeah, the rule of 11 was what an advisor told me once upon a time. Have you ever heard that one?

0:09:24 - Speaker 3

No.

0:09:25 - Speaker 2

If you can't explain it to an 11 year old, it's too complicated. I thought that was kind of interesting. I was like that's kind of good, yeah, cause there's some funny stuff out there. I got to ask it Do you ever use the, the financial term, dead cat bounce? No, it's a stock market thing, right? I was talking with an advisor the other day and he's like, well, this, this, this cycle, could be a dead cat bounce. And I'm like, come on, that's not real. And he's like, yeah, it really is.

0:09:49 - Speaker 3

That's like who uses it?

0:09:51 - Speaker 2

You know, so, yeah, so again, jargon exists and it's just a matter of dealing with you know, understanding how you're going to be able to understand it, process it, relate with it. Okay, the the advisor who maybe has that high level of certainty? I kind of touched on this one with the good news advisor, Sherry, but it's like you know it's, it's the phrase don't worry, the market comes back. That's the one that I think gets most people. Well, don't worry, the market always comes back, and that's true, it historically does. But what is your time horizon allowing for right? Like if you retired in 2012, the last 12 years have been fantastic for you, right, but if you retire? Or last 10 years, excuse me, but if you retired in, you know, 2007, you didn't have, you know, the next two years weren't so great, that's right.

0:10:41 - Speaker 3

Yeah, a little inside baseball. We don't know what's going to happen, but we can prepare and we, we can look at history to although it doesn't predict future returns, we, we can use past experience. So, and I think also, instead of having a high level of certainty about what's going to happen, being able to explain what's happening right now and why, or, if we think something's going to happen in the future, explaining why, so having facts and data to back up what you think, but obviously we can't predict the future, we can't predict the market. We just have our past experiences and research to give us confidence in, in our thoughts.

0:11:29 - Speaker 2

Yeah, and there is that historical data. But, as we've seen, this bull run that we have been on for the last 12 years, right From, from you know, 2010 to 2011, in that, in that vein, there has been abnormal right so you just never know.

So there's historical data and then of course you had the pandemic and you know all that kind of stuff. So it changes a lot of things. So preparing and strategy again is going to be the key because, you know, nobody's got the, the proverbial crystal ball there. All right, final one here, and that is the advisor who spends all their time talking. Now it's kind of funny that we're saying that while we're doing a podcast because we're spending all our time talking.

But I think people obviously that would be the nature, otherwise people are tuning in to silence, right? So was able to say God gave us two ears and one mouth so we can listen twice as much, right? So when you come in, or when someone's a new client or prospective client, right, they should be doing most of the talking because you're trying to get to know them Exactly.

0:12:24 - Speaker 3

I need to understand my client and then supplement a little bit about me and how I work with my clients. But it's very, very it's essential for my clients to speak more than I do because I then, when I do speak, it's tailored to them. I think it goes back to the technical jargon. Why are they telling you the jargon? Or why is an advisor talking more than you are? Again, is it to show off how much they know? Because if they're not getting to know you, it doesn't matter. So, absolutely, I try to keep quiet as much as I can, especially in initial meetings, so I can get to know my client.

0:13:07 - Speaker 2

Yeah, I mean like if, within the first meeting or two, if someone's pitching you an idea or a product, that's probably a red flag, right?

0:13:15 - Speaker 1

Right, yes, because you got to take that time to.

0:13:17 - Speaker 2

I mean, tell me about you, Like, let me learn, like, what's your goals? What are you after? Yes, you're gathering the data, right, you're also pulling in all their accounts and things of that nature, but is it too soon to recommend things that fast?

0:13:29 - Speaker 3

Probably, Because how can we make recommendations that are educated and suitable and appropriate if on the first meeting or on the second meeting, just from the initial conversations? So it definitely takes time before formal recommendations are made, because I need to understand you. I need to understand what makes you tick, what helps you, why you're losing sleep at night and what will make you feel confident and comfortable, what your money language is. All of that is so important and I think that oftentimes, if decisions are made quickly and without enough conversation, the client at the end can feel uncomfortable about it.

0:14:10 - Speaker 2

I think it's a great point. I like that money language. That's a good way of putting that. So there you go. Those are some possible or potential red flags to consider if you're shopping for a advisor or you're getting a second opinion, or whatever the case might be. And, as always, if you do need a second opinion, if you're not already working with Sherry and you need some help, reach out to her as well and you can use some of these tips that we just gave you when you're talking with Sherry as well. So, greenwaywealthadvisorycom that's GreenwayWealthAdvisorycom, to get yourself onto the calendar to learn more about Sherry and the things that she's got going on.

A lot of good tools, tips and resources. You can subscribe to the podcast on Apple, google, spotify, iheartstitcher. You can simply just search Money, chic, women in Retirement in the search box of any of those apps. If you already have one pre-installed, which you probably do, most phones come with them. Or again, you could just find it all at GreenwayWealthAdvisorycom that's GreenwayWealthAdvisorycom. Sherry, thanks for hanging out. As always, I will catch you in a couple of weeks. It'll be after the 4th of July, so I hope you have a fantastic holiday.

0:15:11 - Speaker 3

Thank you, you too. Happy birthday America.

0:15:13 - Speaker 2

That's right. I hope everybody enjoys. Be safe, be sane, don't get too hot or sunburned and have a great time and don't eat too many hamburgers and hot dogs and all that good stuff, and we'll be back with more Money. Chic Women in Retirement with Sherry Rash in July. We'll see you then.

0:15:32 - Speaker 1

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through registered representatives of Cambridge Investment Research Inc. A broker-dealer member, finra SIPC advisory services through Cambridge Investment Research Advisors Inc. A registered investment advisor Cambridge and Greenway Wealth Advisory are not affiliated.