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April 29, 2020 3:15 pm
When planning matters when you walk into another nation on planning matters radio.
I am on founder and CEO of Rochon planning southern wake County in central North Carolina's resource for a common sense approach to planning for your financial teacher. Certainly a lot of craziness right now in the markets and turmoil in people's retirement accounts and progress. We are here to help and assist if you need any kind of perspective guidance opinion in review and analysis of your financial and retirement planning or retirement accounts pick up the phone. Feel free to be in touch. Give us a call we can talk over the phone we can set up a virtual meeting and review and we are here to help.
919-300-5886 that number again 919-300-5886 or you can go online rich on planning.com button right at the top of the website to request a time and you can schedule at your convenience for a virtual review 919-300-5886 or Rich on planning.com we are now privileged to be joined by a very special guest.
He is Frank Miceli of the Miceli group former US Army officer and three decade veteran of the financial services industry. Frank has been a coach and mentor to many financial advisors across the country and Frank really a pretty dramatic here recently but a real change in the atmosphere and the way that people look at financial advisors is going on. Don't you believe I absolutely believe that it's a mixed bag and not on one hand it always seen a massive market decline which is just basically evaporated trillions of dollars of wealth in a very very short period of time, but on the other hand, and I don't think people blame advisors for that absolutely know if anything what we've seen is people are saying.
My God, I really do need professional help.
I mean, this is not you know this is not a game. We are in a financial environment where amateurs get eaten alive and the only hope that people have of protecting themselves to get some sort of professional guidance and and to make sure that they are properly positioned know nobody nobody predicted this downturn, the covert virus note. Nobody predicted any of that front from you know a financial standpoint, certainly, but proper financial guidance would have mitigated and prevented a lot of hardship and I think the advisors are being looked at as all my God we need you. So, reside in the way of thinking in any environment or maybe more myopic and in this environment. What do you feel is the true value of a financial advisor in a relationship with a financial advisor.
Well you know the value of an advisor has always been a personal connection with the human being who can empathize and who can understand and you can listen to you, but that that value has been highlighted even more because so many people recently have turned to automated systems for managing your money. And like I say to our clients all the time. Everybody can be Columbus when the seas are calm okay and for the last 11 years we've had a historical market and people think that you know my gosh this is going to go on forever and we can just keep doing what were doing. We don't need an advisor to guide us when the storm comes Junior captain on the bridge of that ship okay and so consequently I think what would a value is for an advisor is a personal connection and somebody who stands on the bridge of the ship and first of all, looks out for danger because frankly any advisor worth their salt was probably guiding clients to say you know what this market doesn't go up forever. Let's protect ourselves to some degree take some chips off the table. Let's be a little more cautious, or at least let's be forward-looking, so did the value of a professional advisor, particularly over an algorithm or computer program sump guide is extraordinary and unprecedented and unequaled.
You cannot duplicate what a professional advisor can do as we are seeing with Robo advisors today than you think that RVs greater than, less than, equal to that relationship with a real person. Real advice from absolutely greater I mean Robo has failed you know algorithms respond on data bends and basically just trading data and then I want to get into the complexities of what's going on with the market trading process. But that's not human beings anymore. None of the volume on the New Yorker.
The NASDAQ is human beings trading okay all of that, I would say 95% of that volume is algorithms, trading and algorithms purely trade not on the underlying value but on the movements on the trade themselves so you don't have any wisdom in their you don't have anybody making value judgments all you have is computers reacting to trading data, which is why you see volatility like we've never even imagined in our lifetimes.
That's what's causing it. So yeah, I think right now with all this computer stuff.
It's proven that it doesn't work that it will only reverse that is proving it only works when things are calm and it's proven that it only works in a rising bull market. When the spaghetti hits the fan, you don't want algorithm in the corner. You want a human being.
Despite the fact that we see maybe the value of that real financial advisor. Now more than ever were in times like these.
The financial advisor profession seems to be in trouble. How do you reconcile those two things I think segments of the profession are in cyclical trouble in the sense that you note some of their many pieces to the financial advisory profession. As you know, there are many many people who call themselves financial advisors who come from very different backgrounds very different training. It's kind of a mixed bag out there. So I think I think it will always be some segments of the financial advisor population that does better than others, but one that's extremely popular right now and has been for a while and will probably accelerate the independent advisor. I think independent advisor.
I think the future of the industry is very much toward the independent practitioner somebody who doesn't have any master controller over them telling them what to do somebody who works purely for the benefit of their clients and and you know it's just a much much better model for most clients I would think in today you advisor working in their garage can do anything that an advisor working on Wall Street can do the technology has completely leveled the playing field so I think independents are doing very very well how is a good advisor currently or how are the good advisors of the future. Adapting to this environment. What are they doing the first thing you're doing is being in touch with your people are talking to their people are not hiding under the desk.
They're not, you know, bunkering data from search for the storm that are out there communicating their doing webinars the doing a lot of online stuff there in front of their clients – number one there holding hands and there communicating, which is the most important thing advisors can do.
The second thing you're doing is there. You know they're looking judiciously at the future and saying okay when the storm is over because every storm and some you know that we been around a long time and we've seen a lot of crazy things I've been in this business a long long time and I've seen storms that looked like it was the end of the world and it wasn't an average okay so the best advisors are looking forward and say how we come back. How do we take advantage of the future because the future is actually bright and it's very hard to say that and it's very hard to see that when you're in the middle of the storm which is where so you can't have take it on faith.
I'm taking it on faith that experience, but I would tell you the future is extremely bright for investors and I think the best advisors are looking forward saying okay what's our next move.
I would preserve your wealth and how we continue to grow different generations need to think about planning and how are they different in their need for the advice they receive is a great question. And right now if you take a good look demographically at the financial landscape from a client perspective. You have five generations of people who are investing their money in each one of those generations is very specific and somewhat different needs. If you take the senior population and you throwing the baby boomers the aging baby boomers.
There needs protection. Their need is some form of guaranteed protected income in retirement. Obviously they just took a hit in their portfolios. So the need for protection is even greater for the and many many tools out there that enable that that form of protection so that's that's number one. But as you move younger in the population of the Gen Xers. The millennial's, who are coming on very strong leader. These are two very large populations of people who need to grow and by the way, they realize very clearly that the government is knocking to protect them in retirement. I will need to get into that discussion for a very long discussion, but if you ask 100 Gen Xers to take care of your retirement and they laugh at you beside me and I'm the only person in therapy so security can be gone by the time I retire. So these people need growth.
They need intelligent growth they need growth that is somewhat sheltered and protected from these kinds of no volatile markets but their needs are significantly different than the senior population and the youngest people need you note personally need education they need to learn something about money than they need growth as well. So it's gonna be exciting, but you got generations that are going to live to be 100.
Think about the financial needs of an entire generation that lives to be 100 years old. That's a completely different model than we've ever seen in history is very exciting.
Frank, the media seems to portray financial advisors in a much different respects than you seem to value them. Yeah, well, me and certainly I've been one of in this business for decades now, so I have a respect for advisors that goes much deeper in the media.
You gotta take community with a grain of salt, but the media portrays advises the salespeople in those days are pretty much over. I will trigger completely over, but they're pretty much over the best advisors are not salespeople anymore.
We haven't been we have been salespeople for a long time were here to help people like I have a model I call it the financial lifeguard model.
My job is to swim out every day into a sea of confusion and disaster and to pull family to safety. That's my job. It's not about selling products anymore and and those advisors who are still sought stuck in a sales mentality. There are very few and and I don't think you can make it much longer, but the medium witness portrays financial advisors and he didn't know these movies like was a movie Wall Street many years ago. Wall Street will follow COI.it's so not bad anymore, at least for the bulk of no significant professional advisors. We don't do that stuff. Frankie talked about the value of a financial advisor that the need for a good one.
The fact that some may disappear as a consumer as an investor myself looking around.
How do we search for and and find a good one to connect with what should we be looking for very subjective and enforceable. You can look for credentials and I would I would look for that kind of educational background from an advisor who are they an expert in what they're telling me to do and that's important. But the best way to judge an advisor in my opinion, is by the questions they ask you in the way they listen to you okay and and discount. It's an interesting story because many many years ago – clients like to question how much money do you have enough asking to do it over here. That was the sales model.
Those days are gone now. The question process. The due diligence process be the careful vetting process is so much more powerful. It takes weeks, months in some cases before an advisor can make a legitimate recommendation to a client.
So I judge by the slowness of the movement and the smaller they moved, the better I'll probably because the more thoughtful they are in the deliberative process and understanding how much do they take into account your needs, how much, how deep do they dig in understanding you before making a recommendation. That's the most critical thing in my opinion he is a three decade veteran of the financial services industry a coach for many financial advisors and and for financial organizations across the country. Three-time best-selling author Frankie folks want more information if they want to connect to ask you a few questions. How can they be in touch anytime I my website is Miceli group.com. Then they can reach me Frank at Miceli group or they can call me him in Raleigh, North Carolina, and give you my office number. Is that okay absolutely sure is 919-329-2723 when Millie mentioned about the duration I presented to the that is my number legal dialer sells all that much I know. I think I've seen you speak.
I thought you were very good a lot of value a lot of inspirational messaging behind what you said great humor. Very funny presentation. He had a two day workshop condensed down to about three hours and I think you packed in all of the laughs. In that time so I certainly appreciated the time here on the program and sharing your wisdom and insight with us to a very valuable service and I think you're doing a wonderful job. So thank you for the opportunity will again it's Miceli group.com.
If you if you would like to connect to get more information. Again, three-time best-selling author Frank Miceli here with us. We certainly appreciate the times Frank will talk to you and soon got up about great interview. There certainly appreciate Frank Miceli joining us here on the program for another edition of Rich on planning planning matters radio once again. If you need any help or assistance, guidance, perspective, insight or review and evaluation of your financial and retirement planning work your retirement and investment accounts pick up the phone. Feel free to be in touch. Give us call 919-300-5886 919-300-5886 visit Rich on planning.com button right at the top there to schedule at your convenience. A virtual review or even just a phone conversation to get things started to try to make things easy for you are here to help. 919-300-5886 Rich on planning.com X against tuning into another edition planning matters radio says been planning matters radio the content of this radio show is provided for informational purposes only and is not a solicitation or recommendation of investment strategy purchasing investment tax or legal advice from a professional adviser and investment investment strategies mentioned involve risk, including the possible loss of principal by three services offered some capital management, registered investment is officially on the financial strength and claims paying ability to draw support from annuities may be taxable as ordinary income for the year to stay for visual should review contract for specific details of the product featuresof Texas extends only to investment advisory advice is not other activities such as heart product may result regarding