Welcome to Beer & Money
Jan. 16, 2023

Episode 181 - 7 Financial Steps To Take For The New Year

Episode 181 - 7 Financial Steps To Take For The New Year

In this episode, Ryan and Alex discuss the 7 financial steps you should take in 2023. The beer of the day is Storm Surge Hazy IPA from Redhook Brewery in Ballard, WA. If you would like to learn more about this beer, please visit their website If you...


In this episode, Ryan and Alex discuss the 7 financial steps you should take in 2023.

The beer of the day is Storm Surge Hazy IPA from Redhook Brewery in Ballard, WA. If you would like to learn more about this beer, please visit their website https://redhook.com/beers/storm-surge-hazy-ipa

If you would like to learn more about Quantified Financial Partners, please visit our website www.beerandmoney.net

 

Transcript

1

00:00:02.250 --> 00:00:11.339

Ryan Burklo: Hello, everybody! Welcome back to beer and money. I'm. Ryan, Burklo and I'm. Alex. Cons and on today's episode. We're going to be talking about 7 financial steps

 

2

00:00:11.620 --> 00:00:13.800

Ryan Burklo: that you should be taking for the New Year.

 

3

00:00:14.070 --> 00:00:22.590

Alex Collins, ChFC, CFP: Yeah, you guys are probably listening to this and the my end of January beginning of February. We're recording this at the beginning of January.

 

4

00:00:22.960 --> 00:00:24.720

Alex Collins, ChFC, CFP: but it's it's just kind of

 

5

00:00:24.740 --> 00:00:31.130

Alex Collins, ChFC, CFP: good basic advice to start off the year. And and it's it's something that we think about every year.

 

6

00:00:31.580 --> 00:00:34.669

Alex Collins, ChFC, CFP: And we're we're choosing to do a podcast about it this year.

 

7

00:00:35.320 --> 00:00:48.450

Alex Collins, ChFC, CFP: Yeah. So before we dive into that, though, Alex. What are we drinking today? Today? We are drinking red hooks. Storm surge hazy. Ipa go figure we're drinking a hazy Ipa. That's that's so unlike us.

 

8

00:00:50.020 --> 00:00:59.959

Ryan Burklo: Yeah, so. And it's back to back Red Hook weeks for us. We we happen to go to Red Hook, and then we bought several of the beers, and so we we kept going with with the beer there at Red Hook.

 

9

00:01:01.270 --> 00:01:05.390

Ryan Burklo: And how call content comes in at 6.8, I you at 32,

 

10

00:01:05.560 --> 00:01:18.540

Ryan Burklo: you know I've I've never had this one. it's definitely a lighter hazy. Ipa, I've definitely had some heavier ipas out there, but it's a solid, drinkable beer. Actually, if I were to rate it out of 10 i'd probably give it an 8.

 

11

00:01:19.140 --> 00:01:35.959

Alex Collins, ChFC, CFP: Sure I light is the optimal word here for this beer. what attracted me to this one was was the watched a bunch of crack and hockey over the over the holiday break, and and this has a an octopus on the the can

 

12

00:01:36.040 --> 00:01:54.240

Alex Collins, ChFC, CFP: and so like that's 1 one of the things that attracted me to it. I never had this beer before. To me this is the it falls flat because it's 2 lights too weak. I'll. I'll give it a 5. Normally, I really like Red Hook red hooks, a great brewery. You should check it out this is not my favorite beer of theirs.

 

13

00:01:54.740 --> 00:01:57.379

Ryan Burklo: Yeah, so i'm gonna say, go cracking

 

14

00:01:57.970 --> 00:01:58.929

Ryan Burklo: and

 

15

00:01:59.370 --> 00:02:01.719

Ryan Burklo: check out redo brewery, their salad brewery

 

16

00:02:01.850 --> 00:02:03.669

Alex Collins, ChFC, CFP: absolutely red hooks! Good stuff.

 

17

00:02:04.400 --> 00:02:06.539

Alex Collins, ChFC, CFP: This is not my favorite offering for them.

 

18

00:02:06.840 --> 00:02:23.320

Ryan Burklo: So let's dive into Today's topic. Right? So it's interesting. I was talking to a perspective client rep for the break, and you know it. The the recession 2,023 type commentary was already coming out. I'm not. I think we heard recession all year in 2,022 it felt like.

 

19

00:02:23.500 --> 00:02:26.279

Ryan Burklo: and then it, you know it's continuing into 2,023,

 

20

00:02:26.560 --> 00:02:32.929

Ryan Burklo: and everyone's gotten, you know, their New Year's resolutions or their you know the may be getting nervous about their finances

 

21

00:02:33.020 --> 00:02:36.589

Ryan Burklo: and the client that was talking to me, You said, hey! What are?

 

22

00:02:36.970 --> 00:02:38.420

Ryan Burklo: What are some steps?

 

23

00:02:38.690 --> 00:02:48.599

Ryan Burklo: Our prospective client? What are some steps that we should be looking at in our financial lives to make sure that we are to just set up in either direction right. Whether or not the recession happens or not. 150.

 

24

00:02:49.110 --> 00:02:54.869

Ryan Burklo: And I said, Well, let's let's talk about that right. And so there's 7 steps that came out of that conversation.

 

25

00:02:55.030 --> 00:03:00.230

Ryan Burklo: and these are the standard 7 steps we would always talk about. By the way, this isn't something I made up on the fly.

 

26

00:03:00.340 --> 00:03:07.049

Ryan Burklo: How you how much goes into each step is what makes it personal in terms of the personal financial planning aspect.

 

27

00:03:07.400 --> 00:03:19.939

Ryan Burklo: But when we get into it here, step step, one is being organized. Are you organized, and that's so difficult nowadays. When you think about all of the different logins we have to all of the different institutions.

 

28

00:03:20.340 --> 00:03:28.690

Alex Collins, ChFC, CFP: Yeah, it. We we really have to have some sort of system or some sort of methodology for pulling it all together and being able to see it in one location.

 

29

00:03:29.940 --> 00:03:36.609

Alex Collins, ChFC, CFP: Good news, bad news. There's been a proliferation of these types of software that's out there.

 

30

00:03:36.870 --> 00:03:52.119

Alex Collins, ChFC, CFP: The one that we tend to use is is a proprietary software that we have access to called living balance sheet which is designed to keep everything in one place. and truly be a comprehensive view of your finances, and and do so it in a very

 

31

00:03:53.350 --> 00:03:54.800

Alex Collins, ChFC, CFP: visual manner.

 

32

00:03:54.840 --> 00:04:06.969

Alex Collins, ChFC, CFP: a lot of these things have a tends to be being number heavy, which, if you're an analytic like me is great. But for the average person really just kind of is a whole bunch of noise and numbers on a page that don't mean anything.

 

33

00:04:07.080 --> 00:04:19.730

Alex Collins, ChFC, CFP: so find something that works for you. If you're interested, we can certainly go ahead and show you what living balance sheet looks like, and you know that's part of our offering to to clients is to help them stay organized.

 

34

00:04:20.140 --> 00:04:24.499

Ryan Burklo: Yeah, I think the key here is, find the tool that you're actually going to use consistently

 

35

00:04:27.640 --> 00:04:29.720

Ryan Burklo: right like it doesn't really matter

 

36

00:04:30.390 --> 00:04:33.310

Ryan Burklo: the tool. As long as you're actually using it.

 

37

00:04:33.510 --> 00:04:35.319

Alex Collins, ChFC, CFP: It matters a little bit.

 

38

00:04:36.130 --> 00:04:41.809

Alex Collins, ChFC, CFP: It matters only to the fact that this is the one that you actually will use.

 

39

00:04:42.060 --> 00:04:45.920

Alex Collins, ChFC, CFP: The the tool has to be effective. But yeah, if you don't, use it. It doesn't matter.

 

40

00:04:46.090 --> 00:05:00.269

Ryan Burklo: But you know, I think this is just key. Right? How are you looking at how you look financially when there's all these different different institutions that you're logging into. How do you know what you really look like? And that's what this type of tool can show you? And

 

41

00:05:00.560 --> 00:05:12.239

Ryan Burklo: just if you can take that 30,000 foot view. Look, you can start to Point Point. Oh, I didn't realize that I had x amount of dollars there, or x amount of debt there, or what have you

 

42

00:05:13.710 --> 00:05:25.619

Ryan Burklo: which then takes us to step? Number 2, you know, for those of you who've been listening to us for a period of time here. You know that, like our number, one thing here is like cash flow the income that's coming in the door.

 

43

00:05:25.940 --> 00:05:34.470

Ryan Burklo: That's your most valued, most valuable financial resource. If that stops coming in the door, how does lifestyle? How does anything work out for you?

 

44

00:05:35.030 --> 00:05:41.669

Alex Collins, ChFC, CFP: It? The answer is not well or not for very long. Yes, this is incredibly boring.

 

45

00:05:42.190 --> 00:05:49.170

Alex Collins, ChFC, CFP: but it's critical, and it's important that we address worst threats. First, because if your income stops.

 

46

00:05:49.200 --> 00:05:54.400

Alex Collins, ChFC, CFP: Life is going to become unfun unless we have addressed this at proactively ahead of time.

 

47

00:05:54.650 --> 00:05:58.350

Ryan Burklo: So step number 2 is optimizing your income protection

 

48

00:05:58.420 --> 00:05:59.110

Ryan Burklo: right?

 

49

00:05:59.490 --> 00:06:13.369

Ryan Burklo: And we mean optimize, not just like check to see if you've got some of it protected.

 

50

00:06:13.440 --> 00:06:15.660

Ryan Burklo: You know how you know death.

 

51

00:06:15.780 --> 00:06:17.960

Ryan Burklo: you know sickness.

 

52

00:06:18.330 --> 00:06:24.650

Ryan Burklo: planning, documents, lawsuits. Those are the key areas to really look at, because if those areas hit you.

 

53

00:06:25.350 --> 00:06:28.169

Ryan Burklo: it's very difficult to come back, if you can, at all.

 

54

00:06:29.000 --> 00:06:30.319

Alex Collins, ChFC, CFP: Yeah, absolutely.

 

55

00:06:30.420 --> 00:06:47.399

Ryan Burklo: and so make sure you double check your auto insurance, home insurance, health insurance, disability, insurance, life insurance, andbal insurance. Have someone to talk to you about those that those areas that also know. By the way, what your financial balance sheet looks like, because those policies are protecting just that.

 

56

00:06:48.210 --> 00:06:53.670

Ryan Burklo: Yeah. And the reason I started to smile. There is. I used to be in the auto and home insurance arena.

 

57

00:06:54.210 --> 00:06:57.359

Ryan Burklo: and I didn't know any of my clients

 

58

00:06:57.430 --> 00:07:02.989

Ryan Burklo: what they actually look like financially on their balance sheet. I didn't know most of the time what their network was.

 

59

00:07:03.900 --> 00:07:18.049

Alex Collins, ChFC, CFP: which makes it hard to properly protect and have conversations around what liability limits we should have, and things of that nature, and it it simply becomes a check. The box thing of like, hey? Here are 3 options which one do you want?

 

60

00:07:19.060 --> 00:07:22.360

Ryan Burklo: Which then takes us to to step Number 3 here, and

 

61

00:07:22.540 --> 00:07:25.859

Ryan Burklo: you know I I almost maybe this could be Step number one.

 

62

00:07:26.840 --> 00:07:33.069

Ryan Burklo: It depends on how what and what order, and how you look at this. But step number 3 is review with your spouse.

 

63

00:07:34.410 --> 00:07:37.280

Ryan Burklo: your spending habit slash values.

 

64

00:07:38.690 --> 00:07:47.159

Alex Collins, ChFC, CFP: Yeah, this is critical. Go look at your expenses and see where you're spending money like actually, my wife and I just did this last week.

 

65

00:07:47.580 --> 00:07:49.140

Ryan Burklo: and we had a subscription

 

66

00:07:49.650 --> 00:07:51.409

Ryan Burklo: that we're paying for that.

 

67

00:07:51.500 --> 00:07:53.220

Ryan Burklo: We didn't know what it was

 

68

00:07:53.570 --> 00:07:56.679

Ryan Burklo: like. How ridiculous is that?

 

69

00:07:56.720 --> 00:07:57.390

Alex Collins, ChFC, CFP: Yeah.

 

70

00:07:57.490 --> 00:08:03.960

Ryan Burklo: And while it wasn't a lot of money, which is probably why we didn't catch it. It was like 6, 99 a month, or something like that.

 

71

00:08:05.400 --> 00:08:10.640

Ryan Burklo: and clearly brought 0 value, because we didn't know what it was.

 

72

00:08:11.120 --> 00:08:15.929

Ryan Burklo: and that's a small piece like. Just look at your expenses. Understand what your values are.

 

73

00:08:16.120 --> 00:08:18.830

Ryan Burklo: and are your expenses matching those values.

 

74

00:08:19.120 --> 00:08:24.080

Alex Collins, ChFC, CFP: and that this isn't like, go hunt and find every single like

 

75

00:08:24.170 --> 00:08:30.989

Alex Collins, ChFC, CFP: nickel and dime, and plan down to the penny. This is like, hey? Just make sure that you're on top of it and review it because

 

76

00:08:31.140 --> 00:08:34.980

Alex Collins, ChFC, CFP: if it's one subscription for 7 bucks a month.

 

77

00:08:35.100 --> 00:08:36.320

Alex Collins, ChFC, CFP: not a big deal.

 

78

00:08:37.240 --> 00:08:42.650

Alex Collins, ChFC, CFP: If you take a look at it, and you're paying 250 bucks a month for cable, and you

 

79

00:08:42.679 --> 00:08:44.590

Alex Collins, ChFC, CFP: barely turn on your TV

 

80

00:08:45.190 --> 00:08:53.609

Alex Collins, ChFC, CFP: like, okay, that's a much bigger deal, and so much of it is just having the conversation around. Okay, what do we want to be spending money on?

 

81

00:08:53.810 --> 00:08:56.089

Alex Collins, ChFC, CFP: What are the things that we truly care about

 

82

00:08:56.960 --> 00:08:58.960

Alex Collins, ChFC, CFP: and do these things line up.

 

83

00:08:59.250 --> 00:09:10.990

Ryan Burklo: Yeah, like, what are the categories? Right? I I know my example is like pinpointing. It's kind of like that, you know, if you don't get Starbucks a day, that's you know, $5 a day. You know that that's small stuff. And in the grand scheme of things. It's really not that important.

 

84

00:09:12.570 --> 00:09:17.210

Ryan Burklo: But and I gave this example probably several times at this point.

 

85

00:09:17.400 --> 00:09:23.509

Ryan Burklo: you know. Several years ago my wife and I looked at our our expenses, and we looked at the dining out specific expense.

 

86

00:09:24.130 --> 00:09:25.790

Ryan Burklo: and we were spending

 

87

00:09:25.820 --> 00:09:29.129

Ryan Burklo: thousands of dollars a month on dining out.

 

88

00:09:29.540 --> 00:09:36.329

Ryan Burklo: and both my wife and I had a conversation around like do we actually like? Is this something we really value when we both were kind of like

 

89

00:09:36.440 --> 00:09:44.700

Ryan Burklo: not really. We. We enjoy the occasional nice dining out like going to it. You know, John, how a steakhouse or something really nice like that. Occasionally

 

90

00:09:45.670 --> 00:10:00.519

Ryan Burklo: we don't enjoy going down to the sushi spot, or the burger spot, or right, or the red robin spot with the kids as often as we were. So we cut back on expenses, and it saved us like 6, 7, $800 a month.

 

91

00:10:01.410 --> 00:10:02.410

Alex Collins, ChFC, CFP: Yeah.

 

92

00:10:02.590 --> 00:10:12.139

Alex Collins, ChFC, CFP: Which then snowballs and allows you to do all of the other stuff that like if you're just living life and going through it going Well, I like.

 

93

00:10:12.420 --> 00:10:18.209

Alex Collins, ChFC, CFP: you know. My wife made the comment to me the other day of like. Oh, hey.

 

94

00:10:18.960 --> 00:10:21.010

Alex Collins, ChFC, CFP: where are our dollars going

 

95

00:10:21.480 --> 00:10:32.360

Alex Collins, ChFC, CFP: and like because we were having a conversation around like how things were going for the year and and things of that nature, and they were actually saving a lot more than we thought we were.

 

96

00:10:33.470 --> 00:10:37.880

Alex Collins, ChFC, CFP: But what winds up happening is like you just kind of go on autopilot.

 

97

00:10:38.100 --> 00:10:44.610

Alex Collins, ChFC, CFP: and when you're on autopilot these things pile up, and you don't think about it, and then you get to the end of the month, and you're like

 

98

00:10:44.720 --> 00:10:47.749

Alex Collins, ChFC, CFP: where the heck does all our money. Where did the money go? Right?

 

99

00:10:48.710 --> 00:10:51.440

Ryan Burklo: So if it doesn't fit, those values, cut it

 

100

00:10:52.510 --> 00:10:58.130

Ryan Burklo: right, and maybe you don't find the $800 a month dining out, bill that I was just talking about.

 

101

00:10:59.230 --> 00:11:02.259

Ryan Burklo: But maybe it adds up to 100 or a couple 100 bucks

 

102

00:11:03.460 --> 00:11:09.820

Ryan Burklo: right, even if it adds up to 50 bucks. It's still 50 bucks that you you knew you shouldn't like you didn't really care about

 

103

00:11:10.300 --> 00:11:15.960

Alex Collins, ChFC, CFP: one. I mean. Think about it from this standpoint. If it took you an hour hour and a half

 

104

00:11:16.050 --> 00:11:20.900

Alex Collins, ChFC, CFP: to dig through stuff, have the conversation, and you know that you're on the right path.

 

105

00:11:21.140 --> 00:11:30.099

Alex Collins, ChFC, CFP: and then all the things that that money is valuable. Oh, that's a massively valuable If you spend the hour and a half and you find 50 bucks.

 

106

00:11:30.830 --> 00:11:33.910

Alex Collins, ChFC, CFP: That's not like you're not paying yourself.

 

107

00:11:34.240 --> 00:11:36.770

Alex Collins, ChFC, CFP: Would that be 33 bucks an hour or whatever

 

108

00:11:37.270 --> 00:11:38.959

Alex Collins, ChFC, CFP: like it's not that

 

109

00:11:39.220 --> 00:11:41.360

Alex Collins, ChFC, CFP: because you're paying yourself

 

110

00:11:41.910 --> 00:11:44.490

Alex Collins, ChFC, CFP: 33 bucks an hour

 

111

00:11:44.780 --> 00:11:52.409

Alex Collins, ChFC, CFP: now for not for work, that you're not doing, moving forward and so the value there is tremendous.

 

112

00:11:52.480 --> 00:11:59.120

Alex Collins, ChFC, CFP: and, like I'd encourage you to think about like, okay, how long is it really going to take me to sit down and go through my finances

 

113

00:12:00.130 --> 00:12:03.339

Alex Collins, ChFC, CFP: and like, okay, if you find

 

114

00:12:03.720 --> 00:12:08.250

Alex Collins, ChFC, CFP: 50 bucks a month. The 100 bucks a month, whatever it winds up being is that worth it?

 

115

00:12:10.140 --> 00:12:11.110

Ryan Burklo: 100%

 

116

00:12:11.590 --> 00:12:12.330

Ryan Burklo: which

 

117

00:12:12.430 --> 00:12:19.309

Ryan Burklo: this transitions transition says transitions. If I could speak today transitions us to step number 4,

 

118

00:12:19.340 --> 00:12:24.480

Ryan Burklo: which is having some set of cash reserves, or some people will like to call it maybe an emergency fund

 

119

00:12:25.160 --> 00:12:25.800

Ryan Burklo: right?

 

120

00:12:26.110 --> 00:12:33.219

Ryan Burklo: This is critical. Make sure we have savings set aside, or, I apologize. Make sure you have savings set aside

 

121

00:12:35.050 --> 00:12:37.750

Ryan Burklo: and consider, adding more to it this year.

 

122

00:12:39.070 --> 00:12:44.059

Alex Collins, ChFC, CFP: It it amazes me how often we have the conversation with folks.

 

123

00:12:44.630 --> 00:12:45.780

Alex Collins, ChFC, CFP: and

 

124

00:12:46.140 --> 00:12:52.079

Alex Collins, ChFC, CFP: they're like like we asked the question like, hey, do you have an emergency reserve. And they're like, Yes, absolutely okay. Great. How much do you have?

 

125

00:12:52.530 --> 00:12:56.829

Alex Collins, ChFC, CFP: And in almost inevitably, it's less than one month's worth of income.

 

126

00:12:58.010 --> 00:13:07.639

Ryan Burklo: and that it doesn't matter the cache that's coming in the door right? The these are people making 7 figures. These are people making you know $7,500. It's one month.

 

127

00:13:08.010 --> 00:13:08.680

Alex Collins, ChFC, CFP: right?

 

128

00:13:08.790 --> 00:13:13.499

Alex Collins, ChFC, CFP: And we asked the question like, okay, cool. How long could you go without a paycheck before it'd be a problem?

 

129

00:13:14.560 --> 00:13:19.980

Alex Collins, ChFC, CFP: And almost immediately. You see this light bulb come off, come on over their head like

 

130

00:13:21.070 --> 00:13:23.969

Alex Collins, ChFC, CFP: Oh, that that number needs to be bigger.

 

131

00:13:24.220 --> 00:13:31.970

Alex Collins, ChFC, CFP: Yeah. And like every single person like we had a client that was talking today about how they're

 

132

00:13:32.890 --> 00:13:38.720

Alex Collins, ChFC, CFP: They were worried about the rate of return that they were getting on their emergency reserve type, money.

 

133

00:13:39.880 --> 00:13:43.109

Alex Collins, ChFC, CFP: and like we've done a couple of podcasts on this.

 

134

00:13:43.330 --> 00:13:50.609

Alex Collins, ChFC, CFP: It is not the rate of return that you get on your monthly reserve money. It is the fact that you have to have an emergency reserve.

 

135

00:13:50.850 --> 00:13:55.279

Alex Collins, ChFC, CFP: and you need to make make sure that you have liquid accessible assets.

 

136

00:13:55.950 --> 00:13:57.000

Alex Collins, ChFC, CFP: and

 

137

00:13:57.540 --> 00:14:01.770

Alex Collins, ChFC, CFP: we want to try and optimize whatever we're getting in terms of rate return.

 

138

00:14:01.940 --> 00:14:03.260

Alex Collins, ChFC, CFP: Given

 

139

00:14:03.330 --> 00:14:10.279

Alex Collins, ChFC, CFP: the style and the structure and the characteristics of that money, we want it to be safe. We want it to be liquid. We want it to grow

 

140

00:14:10.960 --> 00:14:11.590

like

 

141

00:14:12.490 --> 00:14:15.520

Alex Collins, ChFC, CFP: with those constraints. Yeah, we're not going to get a great rate of return.

 

142

00:14:16.030 --> 00:14:19.550

Alex Collins, ChFC, CFP: and it's not about rate of return. It's about missing out on opportunity.

 

143

00:14:21.030 --> 00:14:23.389

Alex Collins, ChFC, CFP: How many times have we heard?

 

144

00:14:23.470 --> 00:14:33.769

Ryan Burklo: You know, someone will say, Well, if I only had money during the 8 crash, or if I only had money to invest in that business, or to buy that company stock, or you know, if I only.

 

145

00:14:34.980 --> 00:14:43.509

Ryan Burklo: and then we'll on the that's on one side of the mouth, and then on the other side of the mouth. They're saying, Well, I don't want to sit on that much savings because I want to raider. I want to get rate of return

 

146

00:14:44.250 --> 00:14:46.500

Ryan Burklo: right. And really what they're saying is.

 

147

00:14:46.890 --> 00:14:49.700

Ryan Burklo: I just don't want to save that money, because I i'm spending it.

 

148

00:14:49.910 --> 00:14:51.559

Alex Collins, ChFC, CFP: But that's what's really a current.

 

149

00:14:51.660 --> 00:14:52.600

Alex Collins, ChFC, CFP: Yes.

 

150

00:14:52.850 --> 00:15:06.579

Alex Collins, ChFC, CFP: a 100, and it like so much of this conversation comes back to how much of your money you want in the market. How much do you of your money do you want out of the market, and understanding the difference between the 2 and what those things do for you

 

151

00:15:06.990 --> 00:15:13.370

Alex Collins, ChFC, CFP: and they. We have done a couple of podcasts on in the money in the market versus out of the market. What that means.

 

152

00:15:13.440 --> 00:15:17.369

Alex Collins, ChFC, CFP: because we're not just talking about the stock market there we're talking about any

 

153

00:15:17.840 --> 00:15:19.370

Alex Collins, ChFC, CFP: any

 

154

00:15:19.700 --> 00:15:23.520

Alex Collins, ChFC, CFP: opinion based asset versus a promise based asset.

 

155

00:15:24.260 --> 00:15:36.790

Ryan Burklo: Yeah. So so cash reserves is not about rate of return. Make sure we've got cash in on the sideline. This allows, for you know the stereotypical peace of mind which, while it is stereotypical, it's also true.

 

156

00:15:37.460 --> 00:15:41.859

Ryan Burklo: What's funny to me is is as we bring on clients out. This this

 

157

00:15:41.880 --> 00:15:44.359

Ryan Burklo: it just came to my, to to my mind.

 

158

00:15:44.910 --> 00:15:46.739

Ryan Burklo: when this client came on board.

 

159

00:15:46.800 --> 00:15:50.729

Ryan Burklo: They were very much, you know. They had this the standard one month of savings

 

160

00:15:50.790 --> 00:15:58.970

Ryan Burklo: they gave the standard. I don't want to, you know. I don't want the way to return conversation right. I don't want too much money sitting my savings because I want to get a way to return.

 

161

00:15:59.070 --> 00:16:00.869

Ryan Burklo: But that that standard thing.

 

162

00:16:01.680 --> 00:16:07.169

Ryan Burklo: you know, through our process and through the coaching and through just engagement with them and getting to know them

 

163

00:16:07.310 --> 00:16:10.680

Ryan Burklo: Now they've got like 12 months sitting in cash.

 

164

00:16:11.180 --> 00:16:13.179

Ryan Burklo: 12 months of income sitting in cash.

 

165

00:16:13.640 --> 00:16:17.570

Ryan Burklo: and the person this was last year, said

 

166

00:16:18.450 --> 00:16:19.980

Ryan Burklo: Ryan. I can't tell you

 

167

00:16:20.340 --> 00:16:26.019

Ryan Burklo: how much less stress I have financially, because that much that money is sitting there.

 

168

00:16:27.390 --> 00:16:33.170

Ryan Burklo: and I made the joke to her, I said, that's funny, considering. Remember how much you add in there when you first met me.

 

169

00:16:33.350 --> 00:16:35.580

Ryan Burklo: and she goes. What do you mean? And I pulled up

 

170

00:16:35.810 --> 00:16:37.819

Ryan Burklo: right the initial intake

 

171

00:16:38.360 --> 00:16:41.379

Ryan Burklo: She was holy smokes. I didn't know that

 

172

00:16:42.890 --> 00:16:43.780

Alex Collins, ChFC, CFP: what you

 

173

00:16:43.990 --> 00:16:50.930

Alex Collins, ChFC, CFP: there is so like. I I had this experience, not with finance, but with like muscles.

 

174

00:16:51.110 --> 00:16:52.550

Alex Collins, ChFC, CFP: so like

 

175

00:16:52.720 --> 00:17:00.090

Alex Collins, ChFC, CFP: one of the gifts that I was, that that my family was given over the holidays was like one of those pneumatic like

 

176

00:17:01.850 --> 00:17:11.080

Alex Collins, ChFC, CFP: things, for after workout which is designed to like the the real terminology for those you listing.

 

177

00:17:11.880 --> 00:17:14.410

Alex Collins, ChFC, CFP: So I got one of those.

 

178

00:17:14.560 --> 00:17:18.900

Alex Collins, ChFC, CFP: and I was starting to use it, and like 1020 min into using it. I was like

 

179

00:17:19.400 --> 00:17:23.309

Alex Collins, ChFC, CFP: holy count. I did not realize I was carrying that much tension

 

180

00:17:23.730 --> 00:17:26.149

Alex Collins, ChFC, CFP: in my shoulders and upper back.

 

181

00:17:26.960 --> 00:17:29.489

Alex Collins, ChFC, CFP: which is then going to cause a cascade of like

 

182

00:17:29.550 --> 00:17:39.259

Alex Collins, ChFC, CFP: Well, that's gonna give me more tension headaches that's gonna like tighten up my low back. It's gonna restrict some of my movement in my arms. And, like all of these other cascade of effects that occur.

 

183

00:17:40.310 --> 00:17:48.109

Alex Collins, ChFC, CFP: there is way too many times when people do not realize the amount of tension that they are creating in their financial world

 

184

00:17:48.370 --> 00:17:50.479

Alex Collins, ChFC, CFP: simply by not having

 

185

00:17:50.800 --> 00:17:53.929

Alex Collins, ChFC, CFP: proper emergency, reserve and proper liquidity.

 

186

00:17:55.670 --> 00:17:59.770

Ryan Burklo: It's what you again it. We've said this before it's what you don't know. You don't know

 

187

00:17:59.820 --> 00:18:02.880

Ryan Burklo: you've You've just been living that way for so long

 

188

00:18:04.020 --> 00:18:06.760

Alex Collins, ChFC, CFP: it becomes normal, and you don't realize it.

 

189

00:18:07.190 --> 00:18:13.909

Alex Collins, ChFC, CFP: And then, once you relieve that stress, you get the exact response that your client gave you of like

 

190

00:18:14.000 --> 00:18:23.220

Alex Collins, ChFC, CFP: this feels so amazing, and you feel taller, you feel more confident You get all these crazy things that occur right? 100%

 

191

00:18:24.180 --> 00:18:30.920

Ryan Burklo: which takes us to step Number 5 right? We've got the cash reserves. Step Number 5 is well. Make sure you continue to keep

 

192

00:18:31.090 --> 00:18:32.909

Ryan Burklo: your high interest debt

 

193

00:18:32.960 --> 00:18:33.930

Ryan Burklo: paid off.

 

194

00:18:35.070 --> 00:18:36.680

Ryan Burklo: This is not the time

 

195

00:18:37.710 --> 00:18:40.269

Ryan Burklo: to go. Spend $10,000 on a vacation

 

196

00:18:41.390 --> 00:18:44.129

Ryan Burklo: and pay it back in monthly installments

 

197

00:18:44.710 --> 00:18:46.260

Ryan Burklo: on a credit card. That is

 

198

00:18:46.560 --> 00:18:58.949

Ryan Burklo: right. Like how often do we hear? I hear it all the time like. Oh, I went on vacation, my family and I needed to vacation, and we were just going to pay off the credit card over a monthly installments. Why would you take the vacation? Oh, like 5 years ago

 

199

00:19:00.460 --> 00:19:01.260

Alex Collins, ChFC, CFP: out

 

200

00:19:01.550 --> 00:19:08.220

Ryan Burklo: right? So keep like Don't get high interest rate like you've got high interest rate rate debt.

 

201

00:19:08.260 --> 00:19:09.359

Ryan Burklo: Get it paid off.

 

202

00:19:10.280 --> 00:19:10.920

Alex Collins, ChFC, CFP: Yeah.

 

203

00:19:10.990 --> 00:19:13.550

Ryan Burklo: And if you don't have it, let's not go into it.

 

204

00:19:13.970 --> 00:19:17.529

Alex Collins, ChFC, CFP: Well, and this is incredibly.

 

205

00:19:18.070 --> 00:19:21.700

Alex Collins, ChFC, CFP: incredibly good timing to have some of these conversations like

 

206

00:19:21.730 --> 00:19:28.349

Ryan Burklo: given where interest rates are are and are going to seem to be going. That's that's part of it. But also

 

207

00:19:28.700 --> 00:19:33.309

Alex Collins, ChFC, CFP: the I know that you and your family do not have this issue.

 

208

00:19:33.360 --> 00:19:37.550

Alex Collins, ChFC, CFP: and that is very, very, very atypical for Americans.

 

209

00:19:38.850 --> 00:19:42.910

Alex Collins, ChFC, CFP: People spend way too much money at the holidays, giving gifts

 

210

00:19:44.250 --> 00:19:45.530

Alex Collins, ChFC, CFP: and it

 

211

00:19:45.590 --> 00:19:52.039

Alex Collins, ChFC, CFP: like, Really, if you think back the meaningful, the meaningful things that you receive. And like, if I think back on that

 

212

00:19:52.410 --> 00:19:54.920

Alex Collins, ChFC, CFP: the the last 2 3 weeks.

 

213

00:19:55.030 --> 00:19:57.010

Alex Collins, ChFC, CFP: the things that i'm grateful for

 

214

00:19:58.020 --> 00:20:03.150

Alex Collins, ChFC, CFP: have nothing to do with any of the stuff that I've been given.

 

215

00:20:03.380 --> 00:20:10.470

Alex Collins, ChFC, CFP: Is it cool? Yeah, absolutely. I am internally grateful for all the gifts and all of the the things that I have been given.

 

216

00:20:10.590 --> 00:20:22.039

Alex Collins, ChFC, CFP: However, it's the time spent with my father-in-law, who made the trek over the mountains to come visit with us, and we had a wonderful like 5, 6 days.

 

217

00:20:22.880 --> 00:20:28.399

Alex Collins, ChFC, CFP: and it it's it's the first time we'd seen him in quite a while because of the pandemic

 

218

00:20:28.850 --> 00:20:30.370

Alex Collins, ChFC, CFP: it was that

 

219

00:20:30.930 --> 00:20:32.060

Alex Collins, ChFC, CFP: not

 

220

00:20:32.700 --> 00:20:38.469

Alex Collins, ChFC, CFP: the the stuff that he brought with him like again. Don't get me wrong. This stuff was really cool.

 

221

00:20:38.560 --> 00:20:39.360

Alex Collins, ChFC, CFP: but it was

 

222

00:20:39.500 --> 00:20:46.029

Alex Collins, ChFC, CFP: getting to watch, crack, and hockey with them, getting to go tinker around in the garage and work on building some stuff.

 

223

00:20:46.230 --> 00:20:49.789

Alex Collins, ChFC, CFP: It's that type of stuff. It's. It's the

 

224

00:20:50.720 --> 00:20:59.070

Alex Collins, ChFC, CFP: it's the experiences that are meaningful. It's the people that are meaningful. It's the memories that are meaningful, not the stuff.

 

225

00:20:59.900 --> 00:21:01.950

Ryan Burklo: Yeah. And it's hard to do right.

 

226

00:21:03.040 --> 00:21:14.089

Ryan Burklo: It. It's hard not to want stuff even I. You know I've told you the deal about the car. There's still stuff that I actually go and buy like I got the new iphone 14 pro

 

227

00:21:14.170 --> 00:21:14.880

Ryan Burklo: right.

 

228

00:21:15.860 --> 00:21:32.910

Ryan Burklo: I'm funny, which is funny, because i'm not it. I don't like tech, but I buy a lot of it. and it'd be fair. It's actually brought down my verizon bill so technically didn't it actually lowered my monthly bill. But that's not the point point is I still would have bought it without it, right.

 

229

00:21:34.310 --> 00:21:49.260

Ryan Burklo: and that's fine like it's fun to go do that. But just know, like you can't do it all the time, like if I went and bought every new tech piece that I wanted, or every new like sports memorabilia thing that I wanted. I'd have no money

 

230

00:21:49.570 --> 00:21:54.399

Alex Collins, ChFC, CFP: all right, quick, Tip, for anybody who has Verizon, by the way.

 

231

00:21:55.680 --> 00:22:03.079

Alex Collins, ChFC, CFP: go out and sign up for their automatic bill. Pay not via credit card, but via bank account. You'll save 50 bucks a month.

 

232

00:22:03.920 --> 00:22:08.180

Ryan Burklo: There you go, Alex, saving money with Verizon.

 

233

00:22:08.340 --> 00:22:14.149

Ryan Burklo: So let's not go into debt. Let's especially in high interest rate, Deb. So that's number 5,

 

234

00:22:14.380 --> 00:22:16.069

Ryan Burklo: and then step number 6.

 

235

00:22:16.140 --> 00:22:20.420

Ryan Burklo: Continue to invest. Continue to invest the way that you were investing

 

236

00:22:21.940 --> 00:22:26.490

Alex Collins, ChFC, CFP: so much of this one. Ryan comes down to how you define an investing.

 

237

00:22:28.300 --> 00:22:28.970

Ryan Burklo: Yeah.

 

238

00:22:29.150 --> 00:22:31.019

Ryan Burklo: So once you define it for them, then

 

239

00:22:31.670 --> 00:22:37.390

Alex Collins, ChFC, CFP: it investing is where you stick to a long-term plan and it is just that

 

240

00:22:37.580 --> 00:22:38.670

Alex Collins, ChFC, CFP: a plan

 

241

00:22:38.690 --> 00:22:40.249

Alex Collins, ChFC, CFP: and long-term.

 

242

00:22:40.580 --> 00:22:46.750

Alex Collins, ChFC, CFP: We really need to understand the definition of invest, and compare and contrast that with speculation

 

243

00:22:47.230 --> 00:22:50.920

Alex Collins, ChFC, CFP: like we the the fact that there may or may not be.

 

244

00:22:51.120 --> 00:22:52.229

Alex Collins, ChFC, CFP: A recession.

 

245

00:22:52.440 --> 00:22:56.000

Alex Collins, ChFC, CFP: should not enter into what we're going to do

 

246

00:22:56.820 --> 00:23:02.659

Alex Collins, ChFC, CFP: from an investment standpoint, because investments should be long term by nature.

 

247

00:23:03.100 --> 00:23:08.580

Alex Collins, ChFC, CFP: and a short-term recession should not affect that decision one way or the other.

 

248

00:23:08.730 --> 00:23:15.839

Alex Collins, ChFC, CFP: because we are 100% going to get the timing wrong. If we get the timing right. It is by luck, not by

 

249

00:23:16.080 --> 00:23:19.469

Alex Collins, ChFC, CFP: not by skill, not by not by intentionality.

 

250

00:23:20.160 --> 00:23:23.290

Ryan Burklo: What no one's been able to time it consistently

 

251

00:23:23.700 --> 00:23:31.950

Ryan Burklo: for a long period of time, because, as I say, jokingly and seriously, there'd be a statue of them on Wall Street. Not the bull.

 

252

00:23:33.060 --> 00:23:36.790

Ryan Burklo: Yeah, right. So continue to invest.

 

253

00:23:36.870 --> 00:23:42.389

Ryan Burklo: Make sure you have your investment philosophy. Make sure you're you're holding for the long-term plan.

 

254

00:23:42.750 --> 00:23:44.580

Ryan Burklo: and you're not speculating.

 

255

00:23:46.600 --> 00:23:53.000

Ryan Burklo: and then step number 7, and I think step. Number 7 is a key ingredient because we are all human.

 

256

00:23:53.400 --> 00:23:56.129

Ryan Burklo: Some would argue that maybe i'm not. But I am

 

257

00:23:59.630 --> 00:24:03.130

Ryan Burklo: but leverage someone that you trust

 

258

00:24:03.890 --> 00:24:04.960

Ryan Burklo: financially.

 

259

00:24:06.030 --> 00:24:11.319

Alex Collins, ChFC, CFP: Remember, I mean, use them as a mentor. Use them as a sounding board. Pick their brain

 

260

00:24:11.460 --> 00:24:13.130

Ryan Burklo: right? Someone that is

 

261

00:24:13.270 --> 00:24:17.159

Ryan Burklo: knowledgeable as well as will tell you that they don't know the answer.

 

262

00:24:18.700 --> 00:24:19.900

Alex Collins, ChFC, CFP: Yeah, I mean

 

263

00:24:20.160 --> 00:24:22.789

Alex Collins, ChFC, CFP: for you and I, or at least for me.

 

264

00:24:22.940 --> 00:24:29.759

Alex Collins, ChFC, CFP: You are a good part of that sounding board like You're one of the people that I trust that I Well, I've spent

 

265

00:24:30.170 --> 00:24:32.530

Alex Collins, ChFC, CFP: what 20 plus years of my life

 

266

00:24:32.850 --> 00:24:41.529

Alex Collins, ChFC, CFP: doing this, and have gone through an extensive amount of training, and spent inordinate amount of hours dealing with this stuff.

 

267

00:24:42.180 --> 00:24:46.809

Alex Collins, ChFC, CFP: I also know I don't know everything there is to know about finance, and never will.

 

268

00:24:46.870 --> 00:24:57.590

Alex Collins, ChFC, CFP: and I need experts and people to even just bounce ideas off of of like. Hey, what am I thinking about this correctly? Is there anything that i'm missing here.

 

269

00:24:57.770 --> 00:25:04.720

Alex Collins, ChFC, CFP: You've done that with me periodically. I thought it was funny. One of the things like one of the conversations of my wife and I had

 

270

00:25:04.840 --> 00:25:18.989

Alex Collins, ChFC, CFP: was like, oh, hey, what do we do in this circumstance? For this situation? My response was, oh, we'll call Ryan, and she goes. Yeah, that's great, but I don't want to just call Ryan. I need to know like more details. It's like, Yep, 100 you do, and at the same time call Ryan.

 

271

00:25:20.710 --> 00:25:28.550

Ryan Burklo: Well, a I appreciate that. And be it's a solid point. You bring up right that these are why you want to have people in your life that you trust.

 

272

00:25:28.730 --> 00:25:34.110

Ryan Burklo: so that you can bounce those ideas off of one another because the fact of the matter is, you have biases.

 

273

00:25:34.860 --> 00:25:39.359

Ryan Burklo: I have biases, we all have biases, especially when it comes our own personal financial situation.

 

274

00:25:40.220 --> 00:25:42.629

Ryan Burklo: And even though you and I are in the industry

 

275

00:25:43.070 --> 00:25:45.299

Ryan Burklo: when it comes to our personal stuff.

 

276

00:25:45.670 --> 00:25:55.730

Ryan Burklo: We have that bias that sometimes we forget that we do, and you will call me out on it, and I hopefully, we'll call you out on it that brings that equilibrium back to the financial picture.

 

277

00:25:55.810 --> 00:26:01.949

Alex Collins, ChFC, CFP: One of the things that I think is important for to not gloss over in that conversation

 

278

00:26:03.320 --> 00:26:07.850

Alex Collins, ChFC, CFP: is Well, I have someone that I leverage. And I trust.

 

279

00:26:07.880 --> 00:26:10.799

Alex Collins, ChFC, CFP: Hmm, Ryan. How many times have you met with heather?

 

280

00:26:11.300 --> 00:26:12.880

Ryan Burklo: financially?

 

281

00:26:12.900 --> 00:26:13.560

Alex Collins, ChFC, CFP: Yeah.

 

282

00:26:13.730 --> 00:26:15.220

Ryan Burklo: never

 

283

00:26:15.440 --> 00:26:20.959

Alex Collins, ChFC, CFP: So like. And that is like I just realized as we're having this conversation.

 

284

00:26:21.950 --> 00:26:27.089

Alex Collins, ChFC, CFP: That's one of the components that needs to change, and that's why I got the answer that I did.

 

285

00:26:27.740 --> 00:26:28.820

Alex Collins, ChFC, CFP: was

 

286

00:26:28.860 --> 00:26:37.340

Alex Collins, ChFC, CFP: she doesn't know you like? I know you, she doesn't trust you financially, like I trust you financially, because she hasn't been in any of those conversations.

 

287

00:26:37.410 --> 00:26:46.360

Alex Collins, ChFC, CFP: and that is absolutely applicable to our clients is, Make sure that your spouse, your loved ones, the people that are going to be there

 

288

00:26:47.480 --> 00:26:50.600

Alex Collins, ChFC, CFP: for you if you're incapacitated.

 

289

00:26:50.650 --> 00:26:54.869

Alex Collins, ChFC, CFP: or are going to be there to pick up the pieces If you're no longer here.

 

290

00:26:55.710 --> 00:26:58.010

Alex Collins, ChFC, CFP: have these conversations

 

291

00:26:58.320 --> 00:27:00.130

Alex Collins, ChFC, CFP: inside of

 

292

00:27:00.220 --> 00:27:06.859

Alex Collins, ChFC, CFP: like that. They know who to go, and who to go to, and why to go to them, and what they can expect when they have those conversations.

 

293

00:27:07.250 --> 00:27:13.710

Ryan Burklo: and i'll take that a step further. It's not just about your spouse. It might be about. If you're older, you maybe your adult children.

 

294

00:27:14.380 --> 00:27:22.450

Ryan Burklo: or if you're younger, or maybe you're an adult, and you've got, you know, parents right also speaks in your parents like anyone that that you care about.

 

295

00:27:23.110 --> 00:27:25.999

Ryan Burklo: that might have any kind of say or

 

296

00:27:26.050 --> 00:27:29.970

Ryan Burklo: implication, or anything, when it comes to that, they should know what's going on.

 

297

00:27:30.420 --> 00:27:32.869

Alex Collins, ChFC, CFP: Absolutely make sure they brought into the picture.

 

298

00:27:33.150 --> 00:27:40.919

Ryan Burklo: So those are the 7 steps to take for the year 2,023, financially speaking, which takes us to the question of the day. Alex

 

299

00:27:41.510 --> 00:27:48.360

Alex Collins, ChFC, CFP: Our Our question today is, what steps are you currently taking financially and plan to take for this year?

 

300

00:27:49.170 --> 00:27:56.900

Ryan Burklo: So head over to beer and money net, and at the top of the pages a contact us, page, and there's a spot for you to answer either that question of the day.

 

301

00:27:57.270 --> 00:27:58.130

Ryan Burklo: or

 

302

00:27:58.810 --> 00:28:04.279

Ryan Burklo: if you have any further questions or ideas that came from this episode. That's a great way to reach us.

 

303

00:28:04.530 --> 00:28:10.269

Ryan Burklo: And lastly, it's a great way to reach us. If you have personal questions that you would like to us to talk to you personally about.

 

304

00:28:11.680 --> 00:28:15.260

Ryan Burklo: As always, we hope this episode was valuable for you and Mr. Collins.

 

305

00:28:15.340 --> 00:28:16.290

Alex Collins, ChFC, CFP: Yours.

This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.  Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Quantified Financial Partners and opinions stated are their own.  Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value. This material is intended for general public use. By providing this content, Park Avenue Securities LLC is not undertaking to provide investment advice or a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.

 

Ryan & Alex are Registered Representatives and Financial Advisors of Park Avenue Securities LLC (PAS). OSJ: 200 Market Street Ste. 1850, Portland OR 97201 Ph 503-221-1226. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representatives of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly-owned subsidiary of Guardian. Quantified Financial Partners is not an affiliate or subsidiary of PAS or Guardian. Ryan Burklo, AR Insurance License # 15319412, CA Insurance License # 0K24924, Alexander Collins AR Insurance License # 7264699, CA Insurance License # 0H24806. #2023-148987 Exp 01/2025