Latest / Money In Motion with Klaas Financial / Trust isn't Regulated

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Trust isn't Regulated · Money In Motion with Klaas Financial

0:00
Speaker 1: It's a prime time to pick up phone, give us call,
0:02
Speaker 1: gets you on the air with our retirement planning professionals
0:04
Speaker 1: from Class Financial. The telephone number to join us six
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Speaker 1: oh eight three two one thirteen ten. That's six zero
0:11
Speaker 1: eight three two one thirteen ten. Loved you have us
0:14
Speaker 1: Have you on the air with our retirement planning professionals
0:17
Speaker 1: from Class Financial join this week by CJ.
0:19
Speaker 2: Closs and Eric Schwartz.
0:20
Speaker 1: If you've got anything retirement related, they'd love to chat
0:23
Speaker 1: with You'd love to get you on the air again.
0:24
Speaker 1: Number to get on the air six so eight three
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Speaker 1: two one thirteen ten. That's six oh eight three two
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Speaker 1: one thirteen ten. You can learned all about Class Financial.
0:31
Speaker 1: They've got a fantastic website. It is Cossfinancial dot com.
0:35
Speaker 1: That's spelled class klaas Financial dot com. And their telephone
0:41
Speaker 1: number six so eight four four two five six three seven.
0:44
Speaker 1: No charge for that initial get to know you appointment
0:46
Speaker 1: det c Loss Financial. It will be complimentary to you
0:49
Speaker 1: again their number six oh eight four four two five
0:53
Speaker 1: six three seven. And I see we are having and
0:56
Speaker 1: I see what's going on there. Let me do this
0:58
Speaker 1: real quick for folks that don't know we do a little,
1:02
Speaker 1: do a little what would you call it? We were remote,
1:06
Speaker 1: so to say, of course, c Jen Eric are at
1:08
Speaker 1: the office. We'll bring in CJ real quick, c J.
1:10
Speaker 1: How you doing this morning.
1:12
Speaker 3: I'm doing great, Seawan. It's a beautiful day and I'm
1:14
Speaker 3: happy to be here.
1:15
Speaker 1: It's happy to have you along. And we'll get Eric
1:17
Speaker 1: connected here in just a moment. I can see what
1:20
Speaker 1: was going on there, and I think we should be
1:21
Speaker 1: good now.
1:22
Speaker 2: Erica, I am here, shot. How you doing.
1:26
Speaker 4: I am doing great now.
1:27
Speaker 1: It's great to have you, great to hear your voice,
1:29
Speaker 1: and we've got a fun fun as always topic important
1:32
Speaker 1: topic also this week to discuss we are going to
1:35
Speaker 1: be talking about trust and that's a big important word
1:38
Speaker 1: and trust isn't regulated. As the title of the program,
1:41
Speaker 1: and c Jen, Eric and I will get into that
1:43
Speaker 1: in just a moment. I mentioned the website colssfinancial dot com.
1:45
Speaker 1: Not only can you learn all about Class Financial and
1:47
Speaker 1: listen back to this in previous shows podcast.
1:50
Speaker 2: You can also.
1:52
Speaker 1: While you're there, schedule a complimentary chat right at class
1:54
Speaker 1: financial dot com or call the office six so eight
1:57
Speaker 1: four four two five six three seven. Another great feature
2:00
Speaker 1: the program is the Class Quiz question the week your
2:02
Speaker 1: chance to win a fantastic prize, and our friends from
2:04
Speaker 1: Class Financial have provided another one of those, a twenty
2:07
Speaker 1: five dollars gift card to Best Buy. I'll tell you
2:09
Speaker 1: a little bit later on in the program how you
2:11
Speaker 1: can win with the Class Quiz question the weekend. Before
2:13
Speaker 1: we get rolling on this week's topic and conversation, Eric,
2:16
Speaker 1: let's actually look back at last week's show and get
2:19
Speaker 1: the question and answer there as well.
2:22
Speaker 4: Absolutely so, last week Josh and I talked about rebalancing
2:27
Speaker 4: and strategies are keeping your investment risk under control? So
2:31
Speaker 4: our question was true or false? The main goal of
2:34
Speaker 4: rebalancing is to maximize returns in every type of market environment,
2:39
Speaker 4: and if you listen to last week's show, you would
2:41
Speaker 4: know the answer to that is false.
2:44
Speaker 1: That was a really, really good show as always, so
2:46
Speaker 1: you can listen back to it right online classfinancial dot com.
2:49
Speaker 1: That's Closs Klaasfinancial dot com.
2:52
Speaker 2: You can also subscribe to the podcast there.
2:54
Speaker 1: Also talking this week has mentioned about why trust and
2:57
Speaker 1: trust isn't regulated, and as we talk about that stuff, CJ.
3:01
Speaker 1: That's an interesting title because you know, I think about
3:04
Speaker 1: financial services and I know heavily one of the most
3:08
Speaker 1: heavily regulated industries in the country. What do you mean
3:11
Speaker 1: when we say trust isn't regulated.
3:15
Speaker 5: Yeah, you're right, Sean.
3:16
Speaker 3: It's the reason why we chose the title because the
3:20
Speaker 3: financial industry has thousands of pages of regulations. Firms have
3:25
Speaker 3: compliance departments, regulators conduct examinations, advisors undergo ongoing training, and
3:31
Speaker 3: there are extensive rules that govern how we interact with
3:35
Speaker 3: the clients that we serve. Those regulations serve as an
3:38
Speaker 3: important or like an important base or important purpose, and
3:43
Speaker 3: they help create standards and they do protect consumers. But
3:47
Speaker 3: here's the key. Regulations can only establish minimum expectations. They
3:53
Speaker 3: can tell professionals what they must do or must not do,
3:57
Speaker 3: but they can't create integrity. They can't create to empathy
4:00
Speaker 3: or good judgment or genuine concern for clients. And many
4:04
Speaker 3: of the most important decisions that financial professionals like us
4:08
Speaker 3: make they occur in areas where no regulation can dictate
4:12
Speaker 3: exactly what should happen. And from our perspective, that's where
4:16
Speaker 3: trust enters the picture.
4:18
Speaker 2: Talking this morning with CJ.
4:20
Speaker 1: Claus at Eric Schwartz, our retirement planning professionals, If you've
4:22
Speaker 1: got a question, we got a line open just for
4:24
Speaker 1: you at six h eight three two one thirteen ten.
4:26
Speaker 1: That's six SOH eight three two one thirteen ten. Mentioned
4:29
Speaker 1: the website class financial dot com.
4:30
Speaker 2: Don't forget.
4:31
Speaker 1: You can also schedule a complimentary chat right from the
4:33
Speaker 1: website or call the office here in Madison sixt'h eight
4:36
Speaker 1: four four two five six three seven. Again no charge
4:39
Speaker 1: for that initial get to know you appoyment tech loss Financial.
4:42
Speaker 1: It will be complementary to you the number six so
4:44
Speaker 1: eight four four two five six three seven. So Eric,
4:47
Speaker 1: what CJS saying is there is a difference then between
4:50
Speaker 1: being compliant and being trustworthy.
4:54
Speaker 5: Absolutely.
4:54
Speaker 4: I would say compliance is is maybe the foundation or
4:58
Speaker 4: even the bare minimum here when we're working with clients
5:01
Speaker 4: in this industry. And if you think about it, you know,
5:04
Speaker 4: just as an example, if your doctor or your attorney,
5:07
Speaker 4: or your accountant or you know, financial advisor like us,
5:10
Speaker 4: only did the minimum that was required by law, you
5:13
Speaker 4: probably wouldn't feel very very confident. And you know, you
5:17
Speaker 4: could you could even look at this in the in
5:19
Speaker 4: the case of the doctor as someone who maybe knows
5:22
Speaker 4: knows all their stuff, but doesn't have a great bedside
5:25
Speaker 4: manner right and can't actually connect with people and gain
5:28
Speaker 4: their trust. People want a lot more than just technical compliance,
5:32
Speaker 4: you know. They want honesty, they want transparency, They want
5:35
Speaker 4: someone who will actually tell them what they need to hear,
5:38
Speaker 4: you know, not just what we want to hear. And
5:40
Speaker 4: they really want someone who will place their interests first,
5:44
Speaker 4: even when when nobody else is watching right. And that's
5:47
Speaker 4: really the difference we're talking about here. It's not about
5:50
Speaker 4: you know, the professional conduct that's being demonstrated when the
5:54
Speaker 4: regulator is in the room. It's it's really about what's
5:56
Speaker 4: what's happening when they're not.
5:58
Speaker 2: Really important distinction there. As we talked this morning with
6:00
Speaker 2: Eric Schwartz and CJ. Class.
6:01
Speaker 1: Of course, they come to us from class financial delph
6:04
Speaker 1: number six eight four four two five six three seven.
6:07
Speaker 1: No charge for that initial gets to know you appointment
6:08
Speaker 1: dechlass Financially it will be complementary to you. Again they're
6:11
Speaker 1: number six, So eight four four two five six three
6:13
Speaker 1: seven and CJ. Let's kind of game this out. Let's
6:15
Speaker 1: play it out in the real world. I get an
6:17
Speaker 1: example of where this distinction becomes important.
6:21
Speaker 3: Yeah, absolutely so, one example that we wanted to bring
6:24
Speaker 3: forth because because you're right, we can talk about this
6:26
Speaker 3: and go, well, that sounds great. I understand that you
6:28
Speaker 3: need to be trustworthy, and you know regulation is a
6:30
Speaker 3: minimum standard. Good good good, But how does this play
6:33
Speaker 3: out in a client meeting or you know, if if
6:36
Speaker 3: somebody was working with our firm, what does it look like.
6:38
Speaker 3: So one of these examples is in the area of communication.
6:42
Speaker 3: There's certainly regulatory requirements regarding disclosure and communication with clients,
6:47
Speaker 3: but regulations don't dictate how much effort a professional should
6:51
Speaker 3: invest in helping someone truly understand their decision. For example,
6:56
Speaker 3: a financial advisor could technically provide all that required disclosure
7:00
Speaker 3: regarding an investment recommendation, right Like here be an example,
7:04
Speaker 3: Hey client, there's some or prospect, right, this investment has risk.
7:09
Speaker 3: Here's the investment policy statement. But now that you've got that,
7:15
Speaker 3: I think this is going to be the best thing
7:16
Speaker 3: ever for you. Right, It's like, oh, I mean, I guess,
7:20
Speaker 3: I guess you've done what's required. But did the client
7:24
Speaker 3: really understand, Like did you ask them any questions? Did
7:27
Speaker 3: you just kind of tell them or supply them with
7:29
Speaker 3: what they needed to try to read and understand the
7:31
Speaker 3: risks on their own. So just because you re supply
7:35
Speaker 3: the required paperwork doesn't mean that the client understands the risk,
7:39
Speaker 3: the trade offs, or the im imp implications of their decisions.
7:43
Speaker 3: In our opinion, a trusted professional goes a lot further.
7:47
Speaker 3: They slow down. They kind of ask questions like this,
7:50
Speaker 3: did you understand that? Because we often see people who
7:54
Speaker 3: will enter the risk of this, say all equity portfolio
7:58
Speaker 3: or eighty percent equity portfolio, and then the mart it
8:00
Speaker 3: turns down and then suddenly they realized they didn't have that.
8:03
Speaker 3: So we'll say, hey, by the way, a twenty percent
8:06
Speaker 3: decline in your portfolio will be two hundred thousand dollars.
8:09
Speaker 5: How would you feel about that? Right? And it's like, whoa.
8:12
Speaker 3: That is maybe beyond what the regulation requires, but it
8:15
Speaker 3: puts in in a term that the client really understands, right,
8:19
Speaker 3: Like I would not feel good about that at all.
8:21
Speaker 3: It's like, okay, that's what I was trying to understand. Now,
8:25
Speaker 3: some of this gets down to compensation. We're not going
8:27
Speaker 3: to dig into this today, but we've talked about this on.
8:29
Speaker 5: The show before.
8:31
Speaker 3: Listen, if you're compensated like we are, which is a
8:33
Speaker 3: little bit along the way, and we do better when
8:36
Speaker 3: a client does better, we're not really interested in selling
8:40
Speaker 3: them something because they'll just not purchase it a year later, right,
8:45
Speaker 3: So we'll get paid a little bit and then they'll leave.
8:47
Speaker 5: For us.
8:47
Speaker 3: It's about like, hey, we get paid a little bit
8:49
Speaker 3: along the way. We do well over long arcs of
8:52
Speaker 3: time as long as people stick with us. And therefore
8:55
Speaker 3: we want them to fully understand the risks associated with things,
9:01
Speaker 3: because if they don't, they will just bail. It'll hurt them,
9:04
Speaker 3: it'll hurt us, and it won't be won't be good.
9:07
Speaker 3: So we think that extra effort isn't necessarily regulated or
9:13
Speaker 3: required by regulators, but it's often what creates the confidence
9:17
Speaker 3: and trust that people need.
9:18
Speaker 2: That's an amazing perspective. I don't know that a lot
9:20
Speaker 2: of folks is.
9:20
Speaker 1: You know, as we've talked over the years, kind of
9:22
Speaker 1: thought about it that way, about some of that mutual
9:24
Speaker 1: beneficial law of benefits of that long term relationship. And
9:28
Speaker 1: it's a great day, by the way, as we talk
9:30
Speaker 1: we see j and Eric about about trust not being
9:33
Speaker 1: regulated and why professional conduct matters long after the rules end.
9:37
Speaker 1: Is a great day to start that conversation at co
9:39
Speaker 1: Loss Financial again we talk about that get to know
9:41
Speaker 1: you appointment at Loss Financial being free. It's a really
9:43
Speaker 1: ad time to talk about these type of things. Of course, again,
9:45
Speaker 1: book it right online at class financial dot com. That's
9:48
Speaker 1: cost k l aas Financial dot com. Or of course
9:51
Speaker 1: you can always pick up phone game a call six
9:53
Speaker 1: so eight four four two five six three seven again
9:56
Speaker 1: no charge for that initial gets to know your appointment
9:57
Speaker 1: at Loss Financial. It will be complimentary reach you so
10:00
Speaker 1: eric as CJ explains that it makes a lot of sense.
10:03
Speaker 1: And sometimes though consumers assume regulators are essentially screening out
10:08
Speaker 1: all the bad actors.
10:10
Speaker 2: Is that a fair assumption?
10:13
Speaker 4: Wouldn't that be nicean if we could just we could
10:15
Speaker 4: just count on that and we don't have to worry
10:16
Speaker 4: about it anymore gosh y? Unfortunately, No, that's that's not
10:22
Speaker 4: entirely true. You know, regulation can reduce risk, but we
10:25
Speaker 4: can't fully eliminate it, unfortunately. And that's not just true
10:29
Speaker 4: in financial services. I mean, that's that's any profession, right,
10:32
Speaker 4: and regulators can establish rules, they can investigate misconduct and
10:37
Speaker 4: impose consequences when necessary, and those are really important safeguards
10:40
Speaker 4: to have for sure, But consumers still need to exercise
10:44
Speaker 4: judgment about.
10:45
Speaker 5: Who they work with.
10:46
Speaker 4: And you know, That's why it's important to be an
10:49
Speaker 4: educated consumer, and it's important to ask questions like, you know,
10:53
Speaker 4: how does this professional make decisions? How do they get paid?
10:56
Speaker 4: CJ just just talked about that. How transparent are they
11:00
Speaker 4: when discussing the actual risks of the product or service
11:05
Speaker 4: they're talking about? How do they actually respond to when
11:07
Speaker 4: mistakes occur? This is a great one. You know, if
11:11
Speaker 4: if someone is trying to trying to quickly you know,
11:16
Speaker 4: acquire let's take financial services for for example, quickly try
11:19
Speaker 4: to acquire a bunch of clients and and you know,
11:22
Speaker 4: get paid quickly and then not worry about what's happening afterward,
11:27
Speaker 4: they're going to probably be pretty pretty defensive when they
11:30
Speaker 4: when they make mistakes, for example, These answers to these
11:34
Speaker 4: questions are often going to tell you far more about
11:36
Speaker 4: about a person's professionalism than you know, the credential hanging
11:40
Speaker 4: on the wall, or the or the tests that they
11:42
Speaker 4: had to pass from from the regulators. Trust ultimately is
11:46
Speaker 4: going to come from observing consistent behavior over time. C
11:49
Speaker 4: J just referenced, you know, building long term relationships with
11:53
Speaker 4: clients and in other words, here trust is not going
11:56
Speaker 4: to be built through a single interaction. It's built through
11:59
Speaker 4: one hundreds of small decisions that are going to consistently
12:03
Speaker 4: demonstrate professionalism and integrity again over a long period of time.
12:08
Speaker 2: Really well. Put us talk this morning with Eric Schwartz
12:11
Speaker 2: and CJ. Coloss.
12:11
Speaker 1: They are our retirement planning professionals from Class Financial. Today
12:15
Speaker 1: is a great day to start that conversation. They make
12:17
Speaker 1: it real easy if you head on over to class
12:18
Speaker 1: financial dot com, get schedule that complementary chat right from
12:22
Speaker 1: the website that's Coloss Financial dot com k l aas
12:25
Speaker 1: Financial dot com. Not only can you schedule that complementary conversation,
12:29
Speaker 1: you can know the team at Coss financially. You can
12:31
Speaker 1: learn about their separate divisions how they can help you
12:33
Speaker 1: or if you're an employer when it comes to when
12:36
Speaker 1: it comes to this stuff again, you can learn all
12:37
Speaker 1: about it online them online class financial dot com. Also,
12:40
Speaker 1: you can pick up phone give a call six oh
12:42
Speaker 1: eight four four two five six three seven no charge
12:45
Speaker 1: for that initial gets no you appointment at Coss Financial.
12:47
Speaker 1: It will be complementary to you again their number six
12:50
Speaker 1: oh eight four four two five six three seven will
12:52
Speaker 1: continue our conversation with CJ and Eric. Next as money
12:55
Speaker 1: in motion with Class Financial continues right here on thirteen
12:58
Speaker 1: ten Wuibi talking with our retirement planning professionals CJ. Closs
13:03
Speaker 1: and Eric Schwartz. Of course they come to us from
13:05
Speaker 1: Class Financial online, Class Financial dot com. That's Closs, k
13:10
Speaker 1: l A A S Financial dot com del pH number
13:12
Speaker 1: six so eight four four two five six three seven
13:16
Speaker 1: talking this week about why professional conduct matters long after
13:19
Speaker 1: the rules end. And and CJ just before the excuse me, Eric,
13:23
Speaker 1: just before the break you had, you started kind of
13:25
Speaker 1: talking about a little bit about about some of the
13:28
Speaker 1: circumstances and some of the some of the expectations as well.
13:32
Speaker 1: And it sounds like you're talking character and and is
13:36
Speaker 1: that an overstatement?
13:37
Speaker 2: Is as we kind of describe it that way.
13:42
Speaker 3: Yeah, it's a it's a good question, Sean. Sorry, I
13:45
Speaker 3: think just jumping in here quickly. Sorry, Eric, ahead, before
13:49
Speaker 3: we get to that, I want to mention so we
13:51
Speaker 3: would argue that's that professional conduct here really matters a lot.
13:58
Speaker 3: So when things are going well, almost everyone looks professional.
14:02
Speaker 3: The real test, in our opinion, comes when circumstances become difficult.
14:06
Speaker 5: So yes, character matters a lot.
14:10
Speaker 3: We're going to talk about that here in a moment.
14:12
Speaker 3: But you know Eric or yeah, Eric was talking about
14:14
Speaker 3: some questions we would say, you know, ask these questions,
14:18
Speaker 3: how does someone respond to that error that Eric reference.
14:22
Speaker 3: Do they become defensive, do they shift blame, do they
14:26
Speaker 3: avoid the conversation, or do they take ownership?
14:30
Speaker 5: So clients don't generally.
14:32
Speaker 3: Expect perfection, but they do expect accountability. So just just
14:37
Speaker 3: really pay attention as Eric was referencing earlier to how
14:39
Speaker 3: somebody reacts to these things.
14:41
Speaker 1: Really well put in and as we talked this morning
14:44
Speaker 1: with CJ and Eric, great day to learn about you
14:46
Speaker 1: can get to know both of them right online or
14:47
Speaker 1: even better in person Class Financial dot com. That's coss
14:50
Speaker 1: k l a a s Financial dot com. And yes,
14:53
Speaker 1: as CJ was mentioning there, it sounds like like we're
14:56
Speaker 1: talking character here. Would that be an overestimate or overstatement there, Eric.
15:04
Speaker 4: I don't think so.
15:05
Speaker 3: No.
15:05
Speaker 4: I think you know, it can seem I think at
15:08
Speaker 4: times when you're when you're talking about character, it can
15:11
Speaker 4: sound like, oh, well, yeah, that's great, but we need
15:13
Speaker 4: to make sure that we're actually enforcing these things, which
15:17
Speaker 4: is where regulation comes in. But again that is just
15:20
Speaker 4: the bare minimum. Right when when you're working with people,
15:23
Speaker 4: they want to feel comfortable, they want to have have
15:26
Speaker 4: confidence in what it is that you're you're doing. And
15:29
Speaker 4: you know, this is why while competence and knowledge and
15:32
Speaker 4: experience matter, character is a huge part of it, you know,
15:36
Speaker 4: and at cost, one of our core values is integrity.
15:39
Speaker 4: And integrity is not simply about you know, following the rules.
15:42
Speaker 4: It's about doing what's right, even when doing so maybe
15:46
Speaker 4: more difficult, you know, maybe less convenient or less profitable.
15:50
Speaker 4: And you know, I think we talk to clients about
15:53
Speaker 4: this a lot, right and and there are a cj
15:58
Speaker 4: of saying there are quicker ways to to you know,
16:01
Speaker 4: maybe earn more money upfront or whatever it might be
16:04
Speaker 4: in the financial services industry. But our view is that,
16:07
Speaker 4: you know, if you build really strong relationships over time,
16:11
Speaker 4: you are number one, going to have a great client relationship.
16:15
Speaker 4: And you know, at the financial piece of it will
16:18
Speaker 4: we'll figure itself out along the way, you know. And
16:20
Speaker 4: that's that's really what one of our main goals as
16:25
Speaker 4: when working with clients is really building those strong long
16:28
Speaker 4: term relationships. And the reality is that every professional is
16:32
Speaker 4: going to encounter situations where where multiple options are available.
16:35
Speaker 4: But the question always becomes you know what should I do,
16:39
Speaker 4: not simply what am I allowed to do?
16:41
Speaker 5: Right?
16:42
Speaker 4: So having that mindset of what is the right thing
16:45
Speaker 4: to do here, not you know what can I do
16:48
Speaker 4: in the situation, That's the mindset that makes the difference, really.
16:50
Speaker 1: Big difference there. As we talked this morning with Eric
16:52
Speaker 1: Swartz and CJ. Closs, our retirement planning professionals from Class Financial,
16:56
Speaker 1: a lot of great information in this week's program, don't
16:59
Speaker 1: forget you can all always listen back at Cossfinancial dot com.
17:02
Speaker 1: That's Coss klaasfinancial dot com. Also, while you're at the website,
17:07
Speaker 1: you can schedule a complementary conversation again right at Cossfinancial
17:10
Speaker 1: dot com or.
17:11
Speaker 2: Pick up phone.
17:12
Speaker 1: Give a call six oh eight four four two five
17:14
Speaker 1: six three seven, No charge for that initial get to
17:17
Speaker 1: know your appointment at Coss Financial. It will be complementary
17:19
Speaker 1: to you again their number six oh eight four four
17:22
Speaker 1: two five six three seven. We'll take it down the
17:24
Speaker 1: home stretch and we'll also do our Closs Quiz question week.
17:26
Speaker 1: We'll do all of that next as Money in Motion
17:29
Speaker 1: with Coss Financial continues right here on thirteen ten.
17:31
Speaker 2: Do w u Ibi.
17:36
Speaker 1: Talking with our retirement planning professional CJ Class and Eric
17:39
Speaker 1: Schwartz that website. I hope you had a chance to
17:41
Speaker 1: visit it. It's Cossfinancial dot com. If not, when you
17:44
Speaker 1: get into the office this morning and when you get
17:46
Speaker 1: back home, I know, sometimes run around, grab and coffee
17:48
Speaker 1: other things, make sure you head on over their class
17:50
Speaker 1: Financial dot com. A lot of great information of course
17:52
Speaker 1: how they can help you. Also, if you're an employer,
17:54
Speaker 1: you can learn also about the team at Coss Financial.
17:57
Speaker 1: Also great feature of the website is the opportunity to
17:59
Speaker 1: schedule dot com sation right online. It's complimentary at lossfinancial
18:02
Speaker 1: dot com. Or can give the call six O eight
18:04
Speaker 1: to four four two five six three seven no charge
18:07
Speaker 1: for the initial get to know you appointment tech loss Financial.
18:10
Speaker 1: It will be complimentary to you talking this week about
18:12
Speaker 1: why professional conduct matters long after the rules and and
18:17
Speaker 1: we've also got an opportunity to head on over to
18:19
Speaker 1: the listener question corner. We'll get to that in just
18:21
Speaker 1: a moment, But first and foremost, as we wrap up
18:24
Speaker 1: today's show, CJ, what practical advice would you give folks
18:28
Speaker 1: who are evaluating a financial advisor or other trusted professional.
18:32
Speaker 4: I'd be happy to maybe I'll even do a better
18:34
Speaker 4: job than TJ with us.
18:35
Speaker 2: That's a high bar, no, I think.
18:39
Speaker 4: I think I'd encourage listeners to kind of focus on
18:43
Speaker 4: three main questions when you're evaluating a professional. The first one,
18:46
Speaker 4: does this person communicate clearly and transparently? Now, this one,
18:50
Speaker 4: I think you could say, probably, you don't have to
18:53
Speaker 4: remember it, because if you're not communicated clearly or transparently
18:57
Speaker 4: with someone, you're probably not interested in working with them.
19:00
Speaker 4: But this can be a telltale sign of perhaps someone
19:04
Speaker 4: trying to hide something if they're not communicating transparently. The
19:09
Speaker 4: second one is do they appear committed to educating me
19:13
Speaker 4: rather than simply selling me something. If someone is taking
19:17
Speaker 4: the time to walk through and make sure you fully
19:20
Speaker 4: understand what it is you may be purchasing or signing
19:23
Speaker 4: up for, it's generally a good sign that they are
19:26
Speaker 4: interested in helping you find something that is the best
19:29
Speaker 4: option for you. And the third and final one here
19:32
Speaker 4: is have they earned my trust through consistent actions over time? Okay,
19:37
Speaker 4: so this one I think is obviously it's going to
19:39
Speaker 4: take more time because you need to actually evaluate it,
19:43
Speaker 4: you know, over time. But you know, is someone consistently
19:47
Speaker 4: showing up and providing you with the answers to your
19:50
Speaker 4: questions and the support that you need over time, because
19:54
Speaker 4: if they're doing that, they are generally committed to helping
19:59
Speaker 4: help you and making sure that you end up in
20:01
Speaker 4: a good spot. So the reason that those questions really matter, though,
20:04
Speaker 4: is trust is not granted by a license or a
20:07
Speaker 4: designation or a disclosure document, right, Like we said earlier,
20:10
Speaker 4: those are all the bare minimum. Trust is earned, and
20:14
Speaker 4: it's earned through competence, right, It's earned through accountability, and
20:17
Speaker 4: it's earned through professional conduct. At the end of the day,
20:20
Speaker 4: regulations are going to establish that bare minimum, which is important,
20:24
Speaker 4: but trust is built far far above that floor.
20:28
Speaker 5: And that bare minimum.
20:29
Speaker 1: Really well stated. And CJ, was there anything you wanted
20:31
Speaker 1: to add there as well?
20:34
Speaker 5: No, sorry about that.
20:35
Speaker 3: My MIC has given me some trouble today.
20:38
Speaker 1: As we always say, technology, it's amazing when it works,
20:41
Speaker 1: but oh my goodness, they started little little.
20:43
Speaker 2: Bugs here and there.
20:44
Speaker 1: And before we get to the money in motion listener
20:46
Speaker 1: question corner, Eric, I did want to give you kind
20:48
Speaker 1: of opportunity to kind of give everyone a little bottom
20:51
Speaker 1: line takeaway of this week's program.
20:55
Speaker 4: Yeah, I think if I were to have folks just say, hey,
20:58
Speaker 4: what did I learned today from from Money in Motion?
21:01
Speaker 4: I would say regulations matter, and compliance matter, professional standards matter.
21:05
Speaker 4: These are all important things. But something something that you'd
21:10
Speaker 4: be looking for beyond that, and something deeper, is trust.
21:13
Speaker 4: And that is going to come from integrity, transparency, accountability,
21:17
Speaker 4: and a genuine commitment to serving others. So just keep
21:21
Speaker 4: in mind the rules established that minimum standard for behavior,
21:25
Speaker 4: but trust requires a much much higher standard. And regulations
21:30
Speaker 4: can require us to comply and do and explain what
21:34
Speaker 4: we can and can't do, but only character can really
21:37
Speaker 4: earn that trust, especially over time.
21:40
Speaker 1: Well summarized this morning talking this week with Eric Schwartzen,
21:42
Speaker 1: CJ Loss of Costs Financial Online Cossfinancial dot com. One
21:46
Speaker 1: of the great things you can do with the website
21:47
Speaker 1: also is submit a question to be answered in the
21:49
Speaker 1: Money in Motion listener question corner. And as a matter
21:52
Speaker 1: of fact, we did get an email from David who
21:54
Speaker 1: wrote in he said, you recently did a show on
21:57
Speaker 1: a state planning where you talked about various important roles
22:00
Speaker 1: like executors, trustees, etc.
22:02
Speaker 2: However, I don't.
22:03
Speaker 1: Think you talked about the possibility of using a professional
22:06
Speaker 1: firm instead of a family member in some of these roles.
22:09
Speaker 2: Is that common?
22:10
Speaker 1: Do you ever ever suggest professionals instead of family members?
22:14
Speaker 1: And CJ I leave that one to you.
22:17
Speaker 3: Oh gosh, we love this question, David, and you're right.
22:20
Speaker 3: A couple of years or a couple of weeks ago,
22:22
Speaker 3: we did a show on a state planning So thank
22:24
Speaker 3: you for listening, listening carefully and submitting this question. But yes, yes,
22:29
Speaker 3: thank you for this question. The simple answer to your
22:31
Speaker 3: question is yes, we often suggest clients consider using professionals
22:36
Speaker 3: instead of family members to serve as a professional trustee,
22:41
Speaker 3: an executor.
22:42
Speaker 5: Or maybe even like a financial power of attorney.
22:44
Speaker 3: And as a matter of fact, as we speak, our
22:47
Speaker 3: firm is currently working with multiple individuals within those various
22:51
Speaker 3: roles I just mentioned, and in our experience, the process
22:54
Speaker 3: is often smoother when we work alongside someone who performs
22:57
Speaker 3: these responsibilities professionally and regularly. Now, with that being said,
23:02
Speaker 3: certain roles like guardianship for minor children or beneficiaries of
23:06
Speaker 3: your state are usually best performed by loving family members.
23:10
Speaker 3: But you get the idea. So, David, again, thank you
23:13
Speaker 3: so much for the question. We probably should have brought
23:15
Speaker 3: that up a couple weeks ago on our show, but
23:17
Speaker 3: for those who are interested, you can go back a
23:19
Speaker 3: couple weeks ago. It was the estate Planning Cast of
23:23
Speaker 3: Characters I believe is what we called it, and it
23:25
Speaker 3: just got into all the different roles that people or
23:28
Speaker 3: professionals in this case need to play to carry out
23:32
Speaker 3: your estate plans, from trustees, do executors, to healthcare POAs,
23:35
Speaker 3: financial POAs, beneficiaries, guardians, and the list goes on. So
23:41
Speaker 3: love the question, David, and yeah, thanks for asking it, and.
23:44
Speaker 2: You two could be like David.
23:45
Speaker 1: If you've got a question, you can always emails at
23:48
Speaker 1: CLSs financials websites at and over there class financial dot com.
23:51
Speaker 1: You can also call in during the program. We love
23:53
Speaker 1: those live on air questions as well. But to submit
23:55
Speaker 1: a question, just head on over to classfinancial dot com.
23:57
Speaker 2: That's closs k l a as Financial. While you're there, you.
24:01
Speaker 1: Can of course listen back to this in previous shows
24:03
Speaker 1: podcasts and subscribe as well.
24:05
Speaker 2: Get to know the team at class Financial.
24:06
Speaker 1: You can also schedule a complementary conversation right at classfinancial
24:10
Speaker 1: dot com or pick up phone. Gave a call their
24:12
Speaker 1: telephone number six oh eight four four two five six
24:15
Speaker 1: three seven. You going to hold on to that telephone
24:17
Speaker 1: number now because it's time for the Class Quiz question
24:19
Speaker 1: of the week.
24:19
Speaker 2: It works like this.
24:20
Speaker 1: In just a moment, I'll ask you the class quiz
24:22
Speaker 1: question of the week. You'll then have thirty minutes from
24:23
Speaker 1: the end of today's program to call the Class Financial
24:26
Speaker 1: Office right here in Madison at six oh eight four
24:29
Speaker 1: four two five six three seven. If you are the
24:31
Speaker 1: first call the correct answer, you win this week's prize,
24:33
Speaker 1: which is a twenty five dollars gift card to best Buy.
24:37
Speaker 2: This week's Class quiz question of the week. Is this
24:39
Speaker 2: true or false? Regulation is designed to screen out all
24:43
Speaker 2: the bad actors and eliminate risk for investors. Is that
24:47
Speaker 2: true or is that false? Telephone number six O eight
24:49
Speaker 2: four four two five six three seven. First correct answer
24:52
Speaker 2: win that twenty five dollars gift card to best Vibe.
24:54
Speaker 1: Don't forget as well. That's Class Financials Office right here
24:56
Speaker 1: in Madison. No charge for that initial get to know
24:59
Speaker 1: your appointment Class Financial. It will be complimentary to you
25:02
Speaker 1: again their number six oh eight four four two five
25:04
Speaker 1: six three seven.
25:06
Speaker 2: CJ.
25:06
Speaker 1: Eric, It's always great talking with both of you. Great
25:08
Speaker 1: show this week. As always, and we'll do it all
25:10
Speaker 1: again real soon. Thanks Sean, Sean, take care, guys. News
25:14
Speaker 1: comes your way next right here at thirteen ten Wuibi.
25:17
Speaker 1: This is Money in Motion with Coss Financial Asset Advisors LLC,
25:21
Speaker 1: a registered investment advisor registered with the SEC. The contents
25:26
Speaker 1: of this show are for informational purposes only and should
25:29
Speaker 1: not be considered individual investment advice. Class Financial does not
25:32
Speaker 1: offer tax or legal advice. Any opinion offered during the
25:36
Speaker 1: course of this show is the opinion of that particular
25:39
Speaker 1: investment advisor representative, and not necessarily the opinion of Cost
25:43
Speaker 1: Financial