In this episode we chat about the benefits of taking a team approach to handling your finances and investment portfolio. We talk about working with the other respective members of a clients’ team, as well as how we take work collectively amongst our firm to provide the best care and service for those we represent.


Speaker 1 [00:00:04] All right. Welcome to Peace of Mind Radio podcast I am Brian Ramsey, that is Eric Douglas and that is Chris Vaughn. And today’s topic’s pretty interesting. It’s one that actually Chris came up as what we like to do. As you guys know, if you’re been watching it any time, we typically like to take something that’s happening during a client meeting, right? So it’s kind of real life scenarios. And we bring it up for discussion and we say, Hey, here’s an incident that happened. Chris had one last week you were doing first. I had another one this morning and you guys were giggling about it because I was like, Oh my gosh. And so you said, What is it now? So this is what’s happening and you were like, let’s do a show on it. So I had a really good one a couple three weeks ago, too, that we can throw out there if we want to. 

Speaker 1 [00:00:43] Yeah, yeah, yeah. So anyway, those are the two for this week and then one next week. So we’re shooting back to back today. Anyway, Chris, will you open up and explain what it is that happened in your client meeting? And and then we’ll just kind of round robin how we how we want to approach it. 

Speaker 2 [00:00:57] OK, so without going into why this is important, what happened the other day was actually it was not in a meeting. It was my personal CPA who also has quite a few of my clients called me up. Venting is very frustrated, and he said he just had a client come in to do their taxes course. This time of year. They’re getting ready to do the you have to file if you had an extension, right mid-October for personal, for personal business business in September, correct? So he said, you know, he was so frustrated because he had this client come in and their advisor, who is a highly credentialed advisor that’s important, gave them a piece of advice. There was $75000 left on the house and the suggestion the adviser had given was pay that off by taking the $75000 out of your IRA. Right now, if you’ve been paying attention to these podcast, anything about this, everything that’s in your IRA is subject to income tax. So then the adviser said, take the 75000 out, pay that off. And the reason that he wanted to do that is because they’d only be $2000 in taxes. And the explanation was that of the seventy five thousand sixty five of it was not subject to tax. Only 10000 was. And of that, 10000, roughly 15 percent federal, five percent state of Kentucky, that’s 20 percent in total, so $2000. So the problem with that is and we did get another CPA actually walked in and we were talking about this. Theoretically, that’s possible, but it’s an extremely unusual situation where you’ve got a nondeductible IRA. And in this case, I confirmed that it was not so the advice that was given would have cost huge tax implications. In addition to that, Eric and I were talking about it. The interest rate that they’re getting on their mortgage is considerably lower than even fairly low risk investments. So there were two major problems that came up. 

Speaker 3 [00:03:01] You’re definitely taking more of a tax hit to pay off a really low interest rate on a mortgage loan. It just so without even questioning the decision was we absolutely are. The decision itself really wasn’t grounded in solid financial advice, to be perfectly clear. But but even aside from that, I think where we’re trying to go here with this is the decision was made by one person with their team bingo people, right? And there’s the problem. Exactly. So I’ll let you take it from there and you can continue your point. 

Speaker 2 [00:03:31] So the the main point that I had to this whole thing was OK. Once again, this was a highly credentialed and most likely experienced advisor. But if they were consulting with other advisors as part of their team, whether those other advisors were working with the same client or not is irrelevant if they were consulting with the CPAs and in certain other situations. And I got another story. If we have time, I’ll throw out there. This would have been caught in advance as part of working with a team as there’s multiple heads going in and they’re seeing things that you may not have noticed that could be a big deal to the client. So in this case, another advisor, or if the CPA was part of the advice up front, they would have caught this and said, No, that’s not the case. This is not a capital gain situation. It’s an income tax situation that does not make sense, and it’s not in the client’s best interest to do this. 

Speaker 1 [00:04:22] All right. Let’s start off one quick thing that I forgot to do in the beginning phone number if you’re listening on podcast and you 

Speaker 3 [00:04:30] bring it back to us, right? Yes. 

Speaker 1 [00:04:31] Yeah. So but Noah, I want to address one thing that you said, too. But first of all, if you’re listening to a podcast and you are not watching us on our YouTube channel or any other means, our phone number, if you want to get ahold of us, is five zero two two zero zero five two one zero. And you can hit any of our extensions. We’ll be happy to talk to you now. Let’s go back to let’s address one thing upfront, you said. Go ahead. And that is the reason that we are not solo practitioners and that we have put together this team. Is that we all have our own specialties, I don’t want to call it a specialty, we have areas of interest within the overall planning aspect that we have a passion for. We just have more experience. Yup, right. And so as an example, Chris is a lot more on his certification in long term care insurance, but he also has a lot more knowledge in that space than I do. And so I may work with a particular client and they come to me and say, Hey, I need long term care insurance. And while I know a little bit and I know enough to be able to give recommendations, I often go to Chris and go, Hey, Chris, here’s this situation. You know, kind of give me some feedback. So I think it’s important that everybody sort of understand that when you’re working with one adviser and there’s no one else there, while it can be OK, you can’t be a master of all knowledge. And so that’s what we’ve done as a team is sort of built ourselves around areas of expertize or well, areas, areas of expertize, or at least a passion for a particular subject matter. And so we often sort of rely on those folks, you know, because I would say when it comes to trust planning, I probably have had more experience and know more and have done more of those than anybody here. Sure. So when it comes to that kind of thing, these guys have a tendency to come to me and say, Hey, is what we’re working on. I got a question about it. And then we can all sort of get feedback around it. So. So I think that’s important. Number one is to not only have well, number one is to have you’re the advisor, have a team around them that they can then go to internally to get advice about different aspects around the financial planning process. Would you agree 

Speaker 3 [00:06:44] that? I totally agree 100 percent. 

Speaker 1 [00:06:46] Yeah. All right. So now let’s go to the external advisors, right? So let’s kind of round robin that you guys know my father, who had a CPA firm for four years and years and years and years. And so I know I had to ask him a lot of the clients that we worked with, almost nearly every one of them we would get together. I don’t see every year, but every couple of years, and we would just sit there and say, OK, are we doing everything we should be doing? Or, you know, what could we be doing? And I would often ask him, Hey, are you? Do you see that happen very often? Advisors, he’s like, No, Harley. I hardly ever get a phone call from advisor asking me for advice about a client that we share. 

Speaker 2 [00:07:24] And that’s a shame. Yeah. 

Speaker 1 [00:07:25] Now he is my dad, so I would call him a lot and he’s, you know, you get free tax advice. But but other than that, no, but I think it is important. You guys are. I’ve heard you guys do it. I know you do, because I’ve seen the clients and CPAs and everything in here. But you also know I do it. You know, we we purposely have a meeting on the calendar every year with a client to specifically have a conversation with their tax preparer. That’s right. And so we don’t do it every single year, but I’d say at least every other year, for sure. 

Speaker 3 [00:07:53] Well, especially if we’re talking about major decisions. And I was just such a meeting literally a few days ago. The last, you know, earlier this week, I was at a table with the clients power of attorney with the CPA, actually two CPAs. So this is the kind of client that that actually has a team of CPAs on his account as well. And also because they were actually changing estate planning attorneys. So the new estate planning attorneys to CPAs myself and a power of attorney, we were collectively making decisions on behalf of the client because anything that happens in one area of this client’s portfolio or really, I should say, in their kind of overall financial plan, it’s going to have an effect on everything else, right? So if one domino falls over here, it’s going to affect everything else, right? So he had sold a couple of businesses in the last year. So that’s why we needed to talk about some tax ramifications of selling those business and receiving that income and what kind of tax treatment that’s going to incur. At the same time, we have some issues with his portfolio that we need to get squared away. Well, if I make any major changes in his portfolio this year, that’s going to trigger some tax effects. So we need to kind of balance the two, right? These are the kinds of issues where if you have a team of people around you and that team is talking to each other and is involved in all aspects of your financial plan, that is really where you get holistic financial planning that really, really benefits you in the long run. Absolutely. 

Speaker 1 [00:09:13] Yeah. So Chris and Chris now share a client, a new client. Yeah, that came in. And what’s interesting is they have a a fairly decent sized net worth, had been a business owner at one point. Some other issues going on, but we got them all in the same room and said, All right, we’re going to hash out this particular issue that that was going on. We’ll go into that right now. But anyway, they had an issue and they they they wanted to basically get other opinions is really what they were looking to do. But we thought great opportunity to get an estate planning attorney and their CPA involved, and we literally called both of them and said, Hey, we need to sit down and be with this client. They’ve got these couple of issues they want to sort of talk through. Yeah, and I can’t. I mean, yes, I could give them yes, we could give them advice. But we needed their CPA there, and their CPA could never have given them the advice that holistic advice that we gave in the estate planning attorney, great state planning attorney, I’ve used him for years and years and years with clients could not by himself had had really given them the input that they wanted. You know, during that particular meeting. So we literally just called him and said, Hey, we’re all going to get together. And when we did ironically enough at the end of that meeting, the client who we were, actually we had a couple clients in there. But anyway, this one particular client said, that’s the first time I’ve ever met with my entire team. Wow. He had never done that before. You met? Yeah. He had never met with everybody together. He had had conversations with with other folks, but had never sat down with the entire team. And so, yeah, it just it makes a difference because what I found, especially with CPAs and you had you mentioned your CPA. One thing I did, I have an issue with love CPAs, right? I mean, my dad’s obviously one. But the problem I have is that they have a tendency to only look at the historical numbers. Yeah, right. So they’re they’re trained to take the data you give them look historically and say, What have you paid? You know what? What have you paid over the years? How are things looking different? But they never really look long term? Right? So while they may give you advice, they put money here or do this. What? They don’t look at it well. They look at the immediate impact of that particular decision, i.e. putting money in a 401k, right? Right? Yes, you need to max out your form. OK, well, hold on. I would say the three of us, the more often not, we’re telling people to not do that because if you look long term down the road, which is what we do, which CPA have a tendency to not do. We look at the long term ramifications of that decision. But you need to find out from the CPA how it impacts them today to be able to have to articulate that, well, here’s what your impact is today, but also you need to consider what you need to consider what happens 10, 15, 20 

Speaker 2 [00:12:09] years, but also when you’re when you’re having that meeting, when you’re working with that team and you, you talk about, OK, here’s what I want you to do, Mr. and Mrs. Client, because of what it’s going to look like 10 15 years down the road. Now, miss CPA. What does that? How does that impact us now? And you get all of the people on your team actually focused on what is in your best interest and working together, then you actually get the best possible results. 

Speaker 3 [00:12:37] Yeah, I mean, you’re taking a you’re going from a micro level view from a tax planning perspective and then adding a macro layer on top right. And that’s what I think you’re talking about. CPAs, they tend to look at things in a in a microwave, right? Kind of. I’m going to look at this year’s tax returns and focus on how best to save clients 

Speaker 2 [00:12:53] because most people hire the CPA and say, Get me the biggest possible return this year, which is which 

Speaker 3 [00:12:58] is absolutely there’s value in that. That’s fantastic to do. That’s very, very important. But when we’re looking at tax liability, we tend to look at it from a macro correct. We’re not so worried about saving you taxes this year. I’m worried about saving you taxes over oh, right, over the next couple of decades. And that’s a different strategy. And sometimes that involves taking a hit. Maybe, you know, this year, for example, we’ve got, you know, if you’re watching at home, by the way, you’re going to get a tax increase in twenty twenty six. Everybody is going to get a tax increase. Their current tax cuts expire, then if not before that, and that’s assuming they don’t expire before then. Absolutely. So, you know, all that to say is sometimes it makes sense to go ahead and, you know, take it 

Speaker 2 [00:13:36] back to take a day now in order to get a small or a small hit now in order to have a better situation. 

Speaker 3 [00:13:42] Absolutely. And so you’re going to save yourself a greater amount of taxes in the long run. But on a micro level, it’s not going to look so great sometimes. So, yeah, 

Speaker 1 [00:13:49] and here’s the other thing we had a we did a podcast on this not too long ago. Oh, and by the way, if you’re listen on podcast and and you think we’re pretty interesting when it comes to us, we don’t charge for anybody to come see us the first time come, you know, as they say, kick the tires and see what we’re all about and ask us whatever questions. You won’t be happy to do that. Our phone number five zero two two zero zero five two one zero. I’m sure Mr. Producer 

Speaker 2 [00:14:12] there, he’s got that. 

Speaker 1 [00:14:13] Mr. Producer is going to throw that up on the screen. He’s give me a thumbs up or it could be the middle finger. I’m not sure which one he gave me, but I’m going to take it as the thumbs up. But anyway, so the other the other thing that we’ve had a podcast on in the past, and it’s just important to reiterate. I had a client say this are no actually Mr. Producer. He’s Aaron, by the way, back behind there, you and I were on a call and a lady had called up and said I had questions about a special needs trust. And who was she getting her advice from her next door neighbor? Oh, remember 

Speaker 3 [00:14:43] that on a special needs trust? Yeah. 

Speaker 1 [00:14:46] And she was like, Oh, well, I was told this and I was like, No, none of that’s right. And she was like, Really? And I’m like, Yes, you know what’s not right? Because you’re getting advice from your neighbor, not from somebody that specializes in it? So anyway, I guess that’s the other point is just when you’re getting when you’re seeking to. Face when it comes to financial matters or really any matter, for that matter, does it make a difference, but especially financial matters that impact your life financially? Make sure that you’re going to see an expert, somebody that specializes in that things like Social Security. You know what? I think we were forgot who it was. We were talking and they were like, Oh, I just drove out through Social Security six to get the first opportunity. And you know, and yeah, yeah. And they were like, Oh, but it’s 78 years old, but I was brick even like, No, because if you’re still working and everything else, the you know, the break even is much, much longer than that. But anyway, people don’t. They just think, take some security to your, you know, your first opportunity, no matter what. And that’s again, not all, but that’s probably advice from their neighbor. Right? And what they’ve heard over the years. And you know, you got to look at it depending on your particular situation. So can I guess that can 

Speaker 3 [00:15:48] conventional wisdom that can be a very dangerous thing? 

Speaker 1 [00:15:51] Yeah, I guess that’s the point is and it really the point of the whole this whole program is really about, you know, seeking advice from professionals seeking the right advice from the right professional right, making sure if you got tax watching, you’re not going to your estate planning attorney asking a tax question, you need to go to your tax preparer, even though 

Speaker 2 [00:16:09] those people have knowledge of it. It’s like, sure, if you are, if you take a bad step off of a curb and you tear your knee up, you don’t go to a brain surgeon. Even though he’s a doctor. He’s not an orthopedic surgeon, which is the specialty that you need. Go to somebody who has expertize in that specific field. 

Speaker 1 [00:16:29] Great analogy. Yep, yep. No, that’s exactly right. So anyway, I think that’s about it for this week. Great topic, Chris. It’s important that we continue to talk about seeking advice from the right people, making sure that you surround yourself with the right team. Make sure you have a good estate planning attorney. Make sure you have good CPA. Make sure you have good financial advisor. By the way, if you don’t have any of those three, call us, come see us. We’ll be happy to wrap a team around you. We got we work with a slew of all the above do to make sure we match clients up with the right advisors. So anyway, phone number for us again. Five or two five zero two Oh sorry, there is no oh darling, a number. Sorry five zero two six zero zero five Well, you sound like me? No, my phone is professor when I was getting my MBA. If you ever said, Oh hey, would you like throw something in? Girl’s room is like, No, there’s no. Oh, and numbers. Yeah, he’s right. Five zero two two zero zero five two one zero. Anyway, so that’s it. Make sure you tune in next week. Believe the topic is what are we talking about? I don’t know. I got it written over there anyway. Doing next week? Well, it’s a surprise. We’ll figure 

Speaker 3 [00:17:38] out some 

Speaker 1 [00:17:38] before it’s surprised us. Oh, I know what it was. It’s making sure that you that you articulate or else you write down where all your stuff is going on so that you don’t drive your, you know, drive your beneficiaries and your executives crazy. Yeah. So anyway, that’s that’s an interesting topic because we’ve got a couple of scenarios we’re going to talk about in the next week. So anyway, thanks for tuning in this week. Thanks for watching. Every week, we put out information and have a great weekend. Let Eric sort of sound us off. 

Speaker 3 [00:18:09] If you’re watching on YouTube, we appreciate it. Make sure you click that subscribe link. Be the first to get notified whenever we drop any new content on our YouTube channel. If you’re listening on literally any podcast channel that you prefer. Make sure you leave us a like or a comment or review. We really appreciate it. That’s all that is what helps the show grow. So once again, thanks for listening. Thanks for watching. We appreciate it. 

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