Financial Planning and Investment Management

Hi, this is Roy Jones with ManTalk Radio Podcast. Our mission is to break down the walls of race and denomination. Your chosen Truth Radio Broadcast will be starting in just a few seconds. Thank you. Welcome to Finishing Well, a certified financial planner, Hon Shile, and today's show, Financial Planning and Investment Management. It's sort of something we haven't talked much about before.

I think you're going to love it. As I was listening to the video that kind of is along these same lines, what appeared to me was the idea of authority. Like, you don't want somebody operating when they don't have the authority, especially with your money. But Jesus, you may know, spoke a lot on authority, and you might remember, one of the few people he ever marveled at their faith was this centurion that came and asked Jesus about his servant being healed. And if you read this in Matthew 8, 8 through 10, it says, The centurion answered and said, Lord, I am not worthy that thou shalt come under my roof, but speak the word, and my servant shall be healed. For I am a man under authority, and having soldiers under me, I say to this man, Go, and go, and the other one comes, and he comes, and to my servant do this, and he does it.

When Jesus heard this, he marveled and said to them that followed, Truly I say unto you, I have not found such great faith, no, not in Israel. And so the idea is that when you realize that people have authority over them, and you see things under authority, like you might even remember when we pray, in Ephesians 6, it says we battle not against flesh and blood, but against authorities and forces in high places. And those things are all going on, believe me, in the financial world.

And so I think when you hear this show, you're going to see, like, how cool is it, how this stuff works in the physical world, as well as when we pray in Jesus' name, boy, do we have authority. Hans? Yeah. So we have stayed away from talking about Brookstone Capital Management, and then the Investment Advisor representatives of Hans Schiel and Tom Griffith and Jamie Bell and Drew Simalo, and the custodians that house the money and the stocks and investments, like Charles Schwab or Fidelity, all of those organizations or all three of those entities are interrelated and they're how we do investments, Tom and I do. Now, I've stayed away from the word cardinal, because if you read in all our disclosures, at the end of every show, is that Brookstone Capital Management and the Investment Advisors are separate from Cardinal.

Cardinal is an insurance agency, and Brookstone Capital Management is a registered investment advisor, and they're separate. So we've just kind of avoided talking about investments, even though it's an integral part of how we help people. We've just avoided talking about them at length or really at all in our shows, in our radio shows, in our videos that we make, to the point where we have some customers coming to us and say, do you all do investments?

I mean, I'm assuming you do, because you're a certified financial planner, and the answer is yes. As soon as we start talking about them, there's so much disclosure and there's so much information that could potentially be misleading, misconstrued. There's disclosure requirements. We've just kind of left that alone and really talked more about some of the things that are all around investments.

Anyhow, I'm just kind of rambling about this. If I could jump in, and I love it personally, and you know this personally that most financial shows I could never listen to, honestly, but this one is so much more about stewardship, and so other ones are always about investing in this and that and the other, but there's so many issues when it comes to retirement about Social Security, Medicare, long-term care, and life insurance and all those things that we talk about constantly that are a gigantic part of this stage of life of finishing well. And so I've loved that we've always honed in on that, but we also knew that you did investments, and it's really nice for me to understand the authority behind that. Okay, so the Registered Investment Advisor, and the acronym for that is RIA, that has the authority over us, or we effectively come in under their authority, is Brookstone Capital Management. And Brookstone is like the traffic cop in the arrangement, where they tell the custodian, Charles Schwab or Fidelity, where to invest our client's money. They do all the trades through Charles Schwab and Fidelity.

I mean, you have to pick one of those two, but we can do them, either one, they're custodians. So Brookstone is not actually handling and touching or taking custody of your money. They're like the cop that's directing it all and making the investments.

They're also supervising Tom and I and Jamie and Drew. So the four of us are Investment Advisor representatives of Brookstone and under Brookstone. And sometimes we've established so much credibility with clients through the videos and the radio shows that they come in and then the investments are going to be part of what they want to do, and we send them all the disclosure stuff and they say, who is Brookstone? We don't know Brookstone, we know you. And they say, well, we haven't talked about them a lot because there's so much disclosure required, so I'm going to tell you exactly who Brookstone is. They're who we work through.

Okay. And they're not interested really in promoting the name of themselves. They have almost 10 billion under management. So they've got quite a good size. They have about a thousand Investment Advisor representatives of which were four of them. So they're not so big that they're just this monster entity, but they're also big enough that they're managing quite a sizable amount of money.

And they're who we get our authority through. And then we are the IARs or the Investment Advisor representatives. And where your money is actually housed is at the custodian or your stocks and all the bookkeeping, all these statements are produced, all the transactions are going on. If you're going to get a check back for some of your money or you're going to get an income, that's going to come from Charles Schwab. And so that's a big part of their business is being custodians for RIAs or Registered Investment Advisors.

Now, you know, people say, well, that's a lot to keep track of. Well, there are some benefits to the customer of having the three different entities. I mean, we deal with the customers, so we deal with you. And then you're pretty much not going to deal with Brookstone. We're going to deal with Brookstone. We're going to deal with you. So we're the customer service, we're the investment advisor representatives.

We're going to get to know you and we're going to help together with you. We're going to decide where we're going to put your money, what you're going to invest in. And then we're going to pick that out of what Brookstone offers. And then Brookstone is going to actually make those trades and put that in effect.

And they're going to do it in your account at Charles Schwab. I mean, does that make sense to you, Robbie? Oh, absolutely. And I love the fact that both you guys, you and Brookstone are fiduciaries, right?

We are. And that's by law. And we, you know, what a fiduciary is, is we are required to put the interests of our clients ahead of our own interests. So when the client comes first, we come second. And when there's a conflict of interest, first of all, we're to avoid conflicts of interest wherever possible.

And when it's impossible to avoid, then we are to disclose the contract of interest to the customer. And the same is true with Brookstone. And Brookstone supervises us to make sure we're adhering to the fiduciary. And as well, Brookstone is supervised by the SEC, and they're upheld to be fiduciaries. So it's not all investment advisors or representatives are fiduciaries. Okay, that's something specific to this side of the business.

It's absolutely beautiful. And I also know this. It's kind of cool from my perspective that Brookstone themselves are monitoring your role as a fiduciary, and they want documentation that all this stuff has taken place. And so it really is just a lot of accountability. All this business through Brookstone and Charles Schwab or Fidelity that we do is highly scrutinized. I mean, and it's done under our personal names. So it's Hans Scheil that you're doing business with, not the name of my business. And it's Tom Griffith that you're doing business with, not under the name.

We have to do this personally. And we personally fall up under Brookstone, and Brookstone supervises just about every move we make. So if a client writes us a check, for instance, for a given amount of money, and we have an actual physical check, we are only allowed, first of all we have to document it, but we're only allowed to hold on to that check for a maximum of 24 hours.

And it's got to be in here and out of here, hopefully shorter than that. And it's got to be sent up to Brookstone, and then Brookstone is going to convey it to Charles Schwab. And I don't know exactly what their rules on it, because anything longer than that, we would actually be taking custody of your money. And that's not our job, neither is it Brookstone's, that's the job of Charles Schwab. Yeah, that's, again, that's surprising, but I didn't, you know, it's a neat concept. And the word I was searching for is accountability, right? There's all sorts of accountability that's built into the system, you know, the way that you guys have this set up with Brookstone and then Charles Schwab on the other end.

Well, yeah. We're going to go on to a break, but we want to remind you, first of all, that this show was brought to you by Cardinal Guide, cardinalguide.com, where there are seven worries tabs, which have all kinds of resources attached. This is the first worry, which has to do, golly, I'll get my act together here later. This is the fifth worry, which has to do with investments. And so you can go there and click on that tab and you're going to see a video right along the same lines about financial planning and investment management, as well as the show notes that describe all sorts of information on that and on all the things that we've done on investments. As well as, of course, the contact page for Hans and Tom and then Hans' book, The Complete Cardinal Guide to Planning for and Living in Retirement. So we've got so much more on this whole subject of financial planning and investment management coming up.

Stay tuned. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other.

Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. Welcome back to Finishing Well with certified financial planner, Hans Scheil. Today's show, we're talking about financial planning and investment management. And as we talked about earlier in the show, Hans, I've always loved that we, you know, on this show, you guys strategy is always much more about talking about the planning and and then, you know, not so much getting into the investment side of it. So this is the first time we've even really talked about this particular subject.

Sure. And just starting with financial planning is that we, you know, we have to charge for the services we provide. And so when we do a financial plan or we construct a financial plan for people, we charge a fee for that. And in many people, it's $1,000 that we charge in a flat fee. And that $1,000 buys people about a 15-page financial plan.

Could be as small as 10 pages of the basic plan that goes through Social Security, Medicare, long-term care, 401K, IRA, income and investment, estate planning and taxes. And so we're putting together the plan and a strategy to help you reach your goals. And then it's going to have probably 70 to 100 pages of appendices or appendix to that initial 10 to 15 pages. And the real value people get out of that is all the interactions that we do. And we do a lot of this by Zoom, putting numbers up on the screen and helping people reach their goal. Well, in order to just charge people a fee, and we can also charge people a fee of $150 an hour.

The brochure says $350, but we lower that substantially. And we can work for some clients where they just want to pay us by the hour. And they want to have us handle a specific area of their – and maybe they don't want to purchase anything from us or put any of their money under management.

They just simply want our advice. And so we have a way to accommodate that. And it's under and supervised by Brookstone Capital Management. So it is Tom or me charging a fee to provide services to you, and you actually pay the money for that to Brookstone.

And it's all supervised by them. So that's one way to do business with us. Another way is you just want to directly purchase some investments from us. You want us to take a sum of money that you have. A lot of times this is in your IRA or it's in your 401K, and you want to roll over your 401K to an IRA, and you want us to invest that for you.

And again, we do that personally, and we do it through Brookstone Capital Management. Does that make sense? Yeah. Yeah. And then again, you still have the third aspect to it of Charles Schwab is the way that Brookstone actually makes their part of the investment.

So there's a third angle to it, right? Yeah. And Brookstone is going to put together the strategies. They have set strategies at Brookstone where they have a number of their clients are put into this one strategy, and they're all invested essentially in the same mixture of stocks and bonds. And so it sounds a little bit like a mutual fund, but it's not.

It could be, but it's typically a basket of ETFs, Exchange Traded Funds, which is one of the more cost-effective ways to get diversification. So as soon as I get too deep into the things we're offering, I get into a bunch of disclosure. And really want to avoid that today is that Brookstone has a whole listing of strategies.

It's pretty lengthy. And we study those all the time, and then we pick from particular strategies, and then there's sub-strategies within that. And we're going to take people, depending upon the amount of risk that they want to take, and get them in the appropriate strategy. Right.

And so for the common person looking at the—for me, I guess, I'll just call myself—that I have no background on investment and that kind of thing. So what it sounds like to me is they're going to spread these things out in a way that they can say, okay, this can get a bigger return because it's more risky, and this could get a really safe return because it's this, but it'll be a little bit less. And so those are the kind of strategies you're talking about, right?

Well, yeah. And so the first thing we're going to do with any client, or one of the first things, is we're going to do a risk profile analysis. And we have various tools to do this. And many of you listening have been through these type of things where they ask you, like, when would you anticipate needing this money? Well, next year, five years from now, ten years from now, you know, and they're going to give you a choice of three different investments. And then of these three different investments, this is what could happen on the high end, this is what could happen on the low end. And they go through all three of them, and they have you pick one, which in one you could get a lot more, but you could lose a lot more.

And then the next one is you could make less, but you could certainly lose less. And so it forces you and your spouse, if we're doing this together, to come up with a score so that we can generally help you objectively assess your risk profile. And then we're going to talk to you in a subjective way, because we don't have to run totally with the numbers, but we want to get a sense of how risk tolerant you are. You know, because some people come into us and they just want to, they want to make all their earnings and they have a real high expectation. And with the particular part of their money, they're not, they have an understanding that they could lose it.

Okay, and then we're going to make an assessment of that as well. I mean, sometimes when people come in and they have too high of expectations, they want to invest too much risk, and they're wanting to take on too much risk the more than we think they can afford. We don't take them on as clients. I mean, because we're fiduciaries, if we don't feel good about it, we're going to tell them that, and we're just going to say that we don't think this is appropriate.

And so therefore we're not going to do it. So, I mean, it's just, there's a lot of back and forth that goes on in the beginning of getting people set with proper expectations, proper understanding and disclosure of risk. And when you invest money, you incur risk. And we just want to make sure the client understands that and that they're okay with it. And then we have strategies to mitigate risk as well. So we're going to want to get a clear assessment of that.

We're going to want to learn what people's goals are. We're going to look at their other assets, figure out what they can afford to lose. If they need to get income from the money, we're going to figure out how that's going to go on. And all of this stuff gets plugged in, and it's going to decide which basket of investments they're going to go with. Darrell Bock Yeah, I've always loved that one question I know you ask.

We've talked about it a lot of times on the show. You know, what's the money for? You know, I get the idea we're growing it and that God's going to multiply it and all that, but at the end of the day, you know, what's the money for? Oh yeah, and it's especially a great question for savers because people have that money and they don't want to pay any taxes on it. They got it in an IRA. And a lot of them, man, they're in their 60s and it's just like, what's it for?

Because they don't have really ever any intent. And where they're going to end up is, well, I'm going to give it to my kids. Okay, that's a good answer.

Now, at least we've come to terms with that. You don't ever see yourself spending this money. Well, not really, you know, and then I'm going to probe around with that a bit and then, well, unless I need long-term care, you know. Okay, well then that's another good answer. That money's for long-term care, and if you don't need long-term care, then it's going to go to the kids. So that's the kind of give and take we do with people because we got to know what it's for in order to invest it appropriately.

Oh yeah, and you know, it just makes perfect sense, but although, you know, it's one of the things of you being a goad, you know. Is you're there to help people like, you know, actually begin that planning process. Well, yeah, and we don't, you know, that's the reason I don't want to talk about investments on this show because everybody's going to call me up and say I want one of those.

Well, wait a minute. I mean, it just, there's different investments that are appropriate for different people. I mean, it's just, I can have ten customers come into my door and three or four of them, they don't want to mess with this stuff, period. They just got no business taking the money they have with the understanding they have and when they're going to need it, investing it in something that you'd lose money. So a couple, three people, we got to figure out who they are and then of the other seven that are going to do some investments with us, with some or all of their money. And then we got to figure out which investments are we going to put them in, okay? What direction are we going? And that's going to be different for all seven of them.

Oh, yeah. Well, again, we've run out of time before we ran out of show, but I hope you get the idea that wow, there's a lot of levels of authority when it comes to financial planning, especially if you go through Cardinal. And so I think that's absolutely beautiful, the way that God works through authority and we want to tell you that all this information, again, the show notes and all the information on Brookstones, all there at cardinalguide.com. So if you go to cardinalguide.com, you're going to see the seven worries tab and one of those worries is financial, excuse me, is investments. And so that investment number five is this worry number. If you click on that, you're going to see a video along this line with a board and show notes and all sorts of ways you can find out more about that if you have an interest, as well as lots of videos and shows on the whole idea of investments. And then you got Hans' Complete Cardinal Guide to Planning for and Living in Retirement, his book. It's also there at cardinalguide.com and the contact page where you can get up with Hans or Tom so they can begin the process with you of setting up a strategy and a plan that makes sense based on you, your family. It's never a cookie cutter approach. So thank you, Hans.

Thank you and God bless you. The opinions expressed by Hans Scheil and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such.

Any statements or opinions are subject to change without notice. Investments involve risk and unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation.

Finishing Whale is designed to provide accurate and authoritative information with regard to the subject covered. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other.

Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. We hope you enjoyed Finishing Whale, brought to you by CardinalGuide.com. Visit CardinalGuide.com for free downloads of this show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments and taxes, as well as Hans' best-selling book, The Complete Cardinal Guide to Planning for and Living in Retirement, and The Workbook. Once again, for dozens of free resources, past shows, or to get Hans' book, go to CardinalGuide.com. If you have a question, comment, or suggestion for future shows, click on The Finishing Whale Radio Show on the website and send us a word. Once again, that's CardinalGuide.com. CardinalGuide.com. This is the Truth Network.