This week, Angela discusses how to determine if you've outgrown your financial advisor. She shares anecdotes and insights to help listeners evaluate their current advisory relationships and understand the importance of holistic financial planning. The episode emphasizes the need for advisors who proactively work with other professionals and offer comprehensive solutions.

• Communication and holistic advice: An 88-year-old woman was nearly on the verge of running out of money because her advisor wasn't providing adequate communication or a comprehensive financial plan. The advisor was primarily focused on selling investments rather than offering holistic advice tailored to her specific needs, highlighting the importance of finding an advisor who understands your complete financial picture.
• Outgrowing your advisor's expertise: An advisor's expertise may become insufficient as your financial situation evolves, even if they are well-intentioned. An advisor in the Form 400 group shared a story about his grandmother, who paid a substantial amount in taxes because her long-time advisor lacked the knowledge to minimize her tax burden, illustrating the need to reassess your advisor's capabilities periodically.
• Finding the right advisor fit: Finding the right financial advisor is challenging, as different advisors have varying approaches and specializations. It's crucial to assess whether your current advisor's approach aligns with your needs and whether they can provide comprehensive guidance. The story of Hallie, the dog, and the yellow chair, illustrates how people tend to stick with things that no longer serve them.
• Understanding advisor specializations: Different types of advisors, such as CPAs, bankers, insurance agents, and attorneys, have distinct areas of expertise. CPAs excel in taxes and accounting, bankers in banking products, insurance agents in insurance and annuities, and attorneys in law. It's important to recognize these specializations and seek advisors whose expertise aligns with your specific financial needs.
• Captive vs. independent advisors: Captive advisors often have quotas to meet, which may influence their recommendations, while independent advisors may still have limitations based on their RIA or broker-dealer. It's important to understand whether an advisor is captive or independent and to consider the potential implications for their advice. Even amazing captive advisors may not be allowed to do a lot of things to help their clients.
• Transparency of fees and commissions: Advisors can be paid through fees or commissions, and neither method is inherently bad. Fee-based advisors may be preferable for ongoing management, while commission-based advisors may be suitable for one-time transactions. It's essential to understand how your advisor is compensated to assess potential conflicts of interest and ensure their recommendations align with your best interests.
• Proactive and holistic planning: A true advisor should proactively work with you and your other advisors to create a holistic life plan. This includes coordinating with insurance agents, accountants, and attorneys to address various aspects of your financial life, such as family support, charitable gifting, business succession, legacy planning, estate planning, liability issues, debt, tax issues, insurance, and investments.
• Considering all available options: An effective advisor should make you aware of all available options, even if they don't have expertise in every area. Most advisors don't know everything, so it's important to seek help and advice from multiple sources when needed. If your advisor hasn't made you aware of the topics discussed in the podcast, you probably need to take a sit down and look at your situation.

This week, Angela discusses common mistakes in retirement planning. She emphasizes the importance of humility and continuous learning, even after years of experience. The episode aims to provide listeners with insights to avoid pitfalls and plan effectively for a secure retirement.

• Begin with the end in mind: It's important to start with the end in mind when planning for retirement, similar to planning a vacation. People often spend more time planning vacations than their retirement. Envisioning a successful retirement and considering what needs to happen to achieve that success is crucial for effective life planning.
• Number one threat: Yourself: The biggest threat to retirement planning is often oneself, stemming from procrastination or overconfidence. Making assumptions without thorough planning is a common mistake. It's important to consider factors like potential healthcare costs, inflation, and the possibility of living longer than anticipated.
• Protect your retirement: Failing to protect your retirement is a significant mistake, as various risks can be devastating. These risks include living too long, dying too soon, becoming incapacitated, being sued, inflation, investment risks, and taxes. It's important to consider the impact of inflation, as the cost of living typically increases by about 4% each year, eroding the value of savings.
• Emotional investing risks: Emotional investing, driven by fear or greed, can be detrimental to retirement planning. Discipline is essential to avoid making rash decisions, especially during times of grief or emotional distress. Having someone to provide objective advice and prevent impulsive actions is crucial for maintaining a sound financial strategy.
• Avoid piecemealing a plan: Piecemealing a retirement plan together from various sources can lead to a disjointed and ineffective strategy. Seeking advice from multiple sources without a cohesive plan can result in conflicting recommendations. It's important to find a trusted advisor who can provide comprehensive guidance and tailor a plan to individual needs.

This week Angela and Aaron discuss investment strategies amidst market volatility and political noise. They emphasize the importance of understanding market cycles, the pitfalls of chasing trends, and the need for a disciplined investment approach. They advocate for aligning investment strategies with personal risk tolerance and long-term financial goals, rather than reacting to short-term market fluctuations or political events.

• Value Investing vs. Growth: Value investing, traditionally buying undervalued companies, has been historically successful, but growth investing has recently surged. Jumping between investment styles often leads to losses, as investors buy high after a run. Value stocks are less volatile during downturns, but patience is needed for their value to be recognized by the market.
• Understanding Market Dynamics: The market comprises companies whose products consumers use daily, influenced by supply and demand. A stock's price increases when people buy it and decreases when they sell it. A fundamentally strong value stock may not rise until others recognize its potential, requiring investors to be patient and not give up prematurely.
• Politics and Market Impact: Politics have minimal impact on the market despite the noise they generate. Company leaders focus on maximizing profits regardless of the political climate. Tax and regulation changes are quickly priced into stocks, and the market adjusts accordingly, so investors should not make emotional decisions based on political news.
• Emotional Investing Pitfalls: Investment decisions driven by fear or greed often lead to poor outcomes. Recognizing these emotions is crucial, as they can be detrimental to investment strategies. Successful investing involves buying when others are fearful and selling when others are greedy, contrary to typical emotional responses.
• Managing Emotions and Risk: Managing emotions is challenging, especially during market volatility. To keep emotions at bay, it is important to look at long-term charts to understand market cycles. It's important to remember that long-term financial goals should not be derailed by short-term market fluctuations.
• Secret Sauce: Risk and Discipline: The key to long-term investment success is understanding personal risk tolerance and aligning investments accordingly. Discipline, a well-thought-out investment plan, and professional guidance are essential to navigate market ups and downs. Having someone to provide support during both good and bad times is crucial for maintaining a steady course.