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Personal Finance · Life and How to Live It with Dr Rocco

0:00
SPEAKER_02: Do you sometimes feel like life is passing you by?
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SPEAKER_02: How would you like to get more out of life?
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SPEAKER_02: We explore all things life on this podcast.
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SPEAKER_02: Welcome to the Life and How to Live It podcast with Dr.
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SPEAKER_02: Rocco.
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SPEAKER_01: Live it how to live it.
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SPEAKER_01: Oh yeah.
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SPEAKER_01: Dream Create Connect just live it.
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SPEAKER_02: Welcome to another episode of the Life and How to Live It podcast with me, Dr.
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SPEAKER_02: Rocco.
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SPEAKER_02: In today's episode, we will be discussing the extremely important topic of personal finance.
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SPEAKER_02: I am joined today by a fantastic guest, Michelle R.
0:46
SPEAKER_02: Martin.
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SPEAKER_02: I have personally known Michelle for close to 10 years.
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SPEAKER_02: She is the founder, CEO, and principal wealth advisor of Riverstone Private Wealth Advisors in Rhinebeck, New York.
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SPEAKER_02: At age 19, she was a single mother on welfare.
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SPEAKER_02: Today, with 25 years advising clients, she guides high net worth families through retirement, inherited wealth, tax, and estate planning.
1:14
SPEAKER_02: Michelle, welcome to the show.
1:16
SPEAKER_00: Thank you, Rocco.
1:17
SPEAKER_00: Thank you for having me.
1:18
SPEAKER_00: It's a pleasure to be here.
1:20
SPEAKER_00: Uh, love your show, listen to it often.
1:22
SPEAKER_00: So all good.
1:24
SPEAKER_02: Yeah, thank you so much for being here.
1:26
SPEAKER_02: I'm I'm so happy you're here to help people better understand this sometimes very intimidating topic.
1:33
SPEAKER_02: First, first of all, I'm curious, you know, how did you get started in finance?
1:38
SPEAKER_00: Yeah, yeah, that's a great question.
1:40
SPEAKER_00: And I think the best way to explain that is to talk first about um my early years, my origin story, if you will, um, because it explains why I do what I do today.
1:52
SPEAKER_00: So when I was 19, at age 19, um I was junior in college in Washington State, and I discovered that I was pregnant.
2:02
SPEAKER_00: And uh I come from a middle class family, but uh here I was pregnant.
2:08
SPEAKER_00: I had to uh stop going to school, dropped out of school, and I was trying to figure out how I was going to make life work.
2:16
SPEAKER_00: And I was very poor and broke living in a uh a converted one-car garage.
2:24
SPEAKER_00: It was converted into a studio apartment.
2:27
SPEAKER_00: And my bed, I remember my bed was a pullout couch, and I had a lot of bills.
2:32
SPEAKER_00: In those days, uh, you know, as soon as you turned 18, you could get an American Express.
2:36
SPEAKER_00: I mean, I remember, you know, it's I had all these credit card bills, and I knew I had to get uh in a better place financially.
2:43
SPEAKER_00: So I pinned every bill as they came in.
2:47
SPEAKER_00: I had a corkboard on the wall and I would pin these bills to this corkboard, and I manually kept track as I'm trying to pin pay down these bills, and I tracked each payment by hand.
2:58
SPEAKER_00: I was a waitress.
2:59
SPEAKER_00: I waited tables at a uh a bistro down the street, and I was on my feet seven, eight, nine months pregnant, still working 10-hour days, waitressing.
3:11
SPEAKER_00: And the math kept failing.
3:13
SPEAKER_00: I kept realizing I just wasn't going to make it financially.
3:16
SPEAKER_00: And so I walked into a social services office and Rocco, I actually had to apply for welfare and food stamps and WIC, the uh women, infants, and children uh program.
3:28
SPEAKER_00: And I remember feeling shame, not shame.
3:32
SPEAKER_00: It was more shame that I needed help.
3:36
SPEAKER_00: And most succinctly, I remember the smell of the room uh of the office that I went to to sign up for these benefits.
3:44
SPEAKER_00: But I just kept in my mind that my daughter deserved uh a better life and a better start.
3:50
SPEAKER_00: And so I went on welfare at age 19.
3:53
SPEAKER_00: And I was far from my family.
3:55
SPEAKER_00: I was in, like I said, I was in Washington State, and my stepmother lived in Washington, DC.
4:01
SPEAKER_00: And it was at that point, right around that time, that she reached out to me and she reached out to pull me out.
4:10
SPEAKER_00: She was a C-suite executive in healthcare and a woman I looked up to, and she moved me across the country, gave me a place to land, and taught me how to think about money and how to budget and how to plan.
4:25
SPEAKER_00: And she showed me the greatest form of security a person can have is financial knowledge.
4:33
SPEAKER_00: And so I went back to school, finished my degree, and entered this industry nearly 30 years ago with one vow, and that vow was to pay her gift forward.
4:44
SPEAKER_02: Wow.
4:44
SPEAKER_02: Wow, I don't want to interrupt you, but wow.
4:47
SPEAKER_02: Okay.
4:48
SPEAKER_00: That's my yeah, it's my story.
4:50
SPEAKER_02: That's your story.
4:51
SPEAKER_02: So wow, there's so much there.
4:53
SPEAKER_02: But uh, first of all, it was great, you know, it's great that the sit the system was there to hold hold you up for a little while until until your stepmom came along.
5:04
SPEAKER_02: But obviously, kudos to you for you know for doing all of that.
5:09
SPEAKER_02: So, yeah, so so what what happens next after that?
5:13
SPEAKER_00: Yeah, well, yeah, that whole process was terrifying, but uh gradually things got better and better to the point now we fast forward.
5:20
SPEAKER_00: And today I lead Riverstone Wealth Advisors, um, as you mentioned, with offices in Rhinebeck, and we serve people nationally as well.
5:30
SPEAKER_00: But my focus has always been to pay that gift forward, the gift of financial knowledge, because I firmly believe that knowledge is power, financial knowledge is power.
5:42
SPEAKER_00: And um, we serve people in the biggest transitions, uh financial transitions of their lives from retirement, divorce, loss of a spouse, sale of a business, um, you know, those elicit the strongest emotions.
5:57
SPEAKER_00: And you need someone who can understand how to how to manage through those.
6:02
SPEAKER_00: And the the really wonderful, beautiful thing out of all of this is that baby that I was pregnant with at 19 is my daughter Renee.
6:11
SPEAKER_00: And she, the one I was so afraid to bring into the world, now works alongside me as wealth management coordinator in our firm.
6:19
SPEAKER_00: And she's a living, breathing reminder of why this firm exists.
6:23
SPEAKER_02: Wow.
6:24
SPEAKER_02: That's what a success story.
6:26
SPEAKER_02: Congratulations to you.
6:28
SPEAKER_02: Yeah.
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SPEAKER_00: A lot of help along the way.
6:31
SPEAKER_02: Yeah.
6:32
SPEAKER_02: So um, you know, Michelle, just uh shifting gears a little bit.
6:37
SPEAKER_02: I mean, you are a fiduciary, right?
6:40
SPEAKER_02: And I don't think everybody knows what what that is.
6:43
SPEAKER_02: What is a fiduciary?
6:45
SPEAKER_00: Yeah, yeah, that's an excellent question, Rocco.
6:47
SPEAKER_00: Um, you know, the term financial advisor gets thrown around a lot.
6:51
SPEAKER_00: I, you know, you see, this person's an advisor, that person's an advisor.
6:55
SPEAKER_00: Um, there are not a lot of, um, although it's getting better, there are not a lot of restrictions around who can use the term financial advisor.
7:04
SPEAKER_00: So, one one of the important aspects in delineating who someone wants to affiliate with and work with is whether or not someone is a fiduciary.
7:14
SPEAKER_00: And a fiduciary is a person who is required by law to put your interest, you as the client, your interests first, ahead of their own.
7:25
SPEAKER_00: Full stop.
7:26
SPEAKER_00: So if two options exist and one pays me more but serves you worse, I'm obligated to recommend the one that serves you best.
7:36
SPEAKER_00: And this is what surprises people.
7:39
SPEAKER_00: Not everyone, like I mentioned, giving financial advice, uh, carries the same obligation.
7:45
SPEAKER_00: Some advisors work under a lower standard called suitability.
7:49
SPEAKER_00: So there's fiduciary and then there's suitability.
7:52
SPEAKER_00: Suitability is where uh an advisor simply has the um obligation or typically will recommend only a suitable option for you.
8:04
SPEAKER_00: It just has to be something that's good for you, good enough.
8:08
SPEAKER_00: Um, not the best, but just good enough.
8:11
SPEAKER_00: And so that's really the difference.
8:13
SPEAKER_00: A fiduciary by law has to do what's in the client's best interest and your best interest 100% of the time, regardless of whether or not it makes me as an advisor more or less money.
8:25
SPEAKER_02: Yeah.
8:26
SPEAKER_02: So how would um a person find a fiduciary?
8:30
SPEAKER_00: Yeah.
8:31
SPEAKER_00: Well, first of all, uh the the first thing to do is to when you're working with an ad, if you already have an advisor, you speak to the advisor and you say three things.
8:40
SPEAKER_00: Are you a fiduciary?
8:42
SPEAKER_00: Are you a fiduciary all the time?
8:44
SPEAKER_00: And are you a fiduciary in writing?
8:47
SPEAKER_00: And that's really important because some people can be a fiduciary when they're working on one type of an account and only fall under the suitability umbrella when they're working on another type of an account.
9:00
SPEAKER_00: So that's the first step.
9:02
SPEAKER_00: There are various websites you can go to to find out if someone is a fiduciary, but I always like to go directly to the source.
9:08
SPEAKER_00: Have them produce in writing whether or not they are a fiduciary.
9:13
SPEAKER_00: And if they can't produce it in writing, well then there's your answer that should tell you that they're not a fiduciary.
9:18
SPEAKER_00: And and just to illustrate this point a little bit more, um, you know, fiduciary, I mean, Rocco is uh you would understand this.
9:27
SPEAKER_00: A fiduciary is like a doctor prescribing something that is going to heal you, and a suitability advisor is like a salesperson that's picking something off the shelf that they earn commission for, and it may not be the best thing for you.
9:44
SPEAKER_00: Both hand you something, but only one answers to you.
9:48
SPEAKER_02: Yeah.
9:48
SPEAKER_02: So I'm sure the listeners out there are now wondering, oh my goodness, is is my person a fiduciary?
9:57
SPEAKER_02: So if they're if they're you know, if they are not a fiduciary, you're saying there's website.
10:03
SPEAKER_02: Is there a particular website that you can uh direct people to?
10:07
SPEAKER_00: Is it national or there are national websites?
10:11
SPEAKER_00: Um the the name escapes me at the moment, but there are websites where you can look up um you know who is a fiduciary or not.
10:20
SPEAKER_00: We are typically advisors that are fee-only, are fiduciary, that don't accept commissions.
10:26
SPEAKER_00: So for example, Riverstone, um, I am an investment advisor representative with Commonwealth, Commonwealth Financial Network.
10:36
SPEAKER_00: And as an investment advisor representative, I owe you a fiduciary duty.
10:41
SPEAKER_00: So the law holds me to that standard that I described.
10:45
SPEAKER_00: Um, and so you know, anyone who is an IAR investment advisor representative will be a fiduciary, for example.
10:54
SPEAKER_02: Okay.
10:55
SPEAKER_02: All right.
10:55
SPEAKER_02: Well, that that's interesting.
10:57
SPEAKER_02: I'm not like years ago, I did not know that difference.
11:01
SPEAKER_02: And so, you know, I think that's important for people to know.
11:04
SPEAKER_02: I'm curious, Michelle.
11:06
SPEAKER_02: You know, what is a question that every client, you know, should ask their advisor, but they almost never do.
11:14
SPEAKER_00: A question every client should ask their advisor.
11:17
SPEAKER_00: Um, I think it's important to well, I'll wrap, I'll answer this a couple of different ways.
11:24
SPEAKER_00: A lot of advisors will focus strictly on investments.
11:30
SPEAKER_00: Okay.
11:31
SPEAKER_00: I think of this in a more holistic view.
11:35
SPEAKER_00: And uh I think of your financial, your finances in general as a large house.
11:42
SPEAKER_00: And the house has many rooms.
11:44
SPEAKER_00: And in one room you have tax planning, another room you have investments, in another room you have estate planning, another room you have insurance.
11:53
SPEAKER_00: Um, and uh I think it's important that every client ask their advisor if they are providing that holistic view of all the rooms in the house.
12:09
SPEAKER_00: Because it's really important to um to make certain that you're not just focusing on investments, uh, that you have it's important you have a plan in place.
12:20
SPEAKER_00: So if you're just focusing on investments and you don't have a plan, it's like you're, you know, you're going on a road trip.
12:28
SPEAKER_00: You're in a vehicle driving down the highway at 80 miles an hour, windows are down, the wind is blowing, the music's on, you have enough gas in the car, but you have no idea where you're going, and you have no idea what exit to get off of, but you're you're cruising, but you don't know where you're headed.
12:45
SPEAKER_00: Um, and an advisor uh really needs to encompass all areas, uh, all areas of of financial planning in a very holistic way.
12:57
SPEAKER_00: So I would ask your advisor that question.
13:00
SPEAKER_00: What are we doing besides investments?
13:02
SPEAKER_00: You know, what else should I be looking at?
13:04
SPEAKER_00: How do I plan?
13:06
SPEAKER_00: What are some of some uh some things for me personally that could derail my plan?
13:11
SPEAKER_00: What are some things I should be uh changing now to have a better outcome five or 10 years from now?
13:17
SPEAKER_00: Uh yeah.
13:18
SPEAKER_02: Yeah, I love I love that analogy.
13:21
SPEAKER_02: I love that, you know, it's like we don't want to be driving 80 miles an hour down the road and not knowing where we're going.
13:28
SPEAKER_02: Yeah.
13:28
SPEAKER_00: No, yeah, no, and a a good plan will will show you the path, absolutely.
13:34
SPEAKER_02: So, so speaking of making a plan, you know, um uh if so there's different plans for different people, of course, and for different people of different ages, you know.
13:44
SPEAKER_02: So I'm curious, say if you're like 30 years old, what's an idea of a plan for that person?
13:51
SPEAKER_00: Right, right.
13:52
SPEAKER_00: Yeah, I think regardless of the age, whether you're 30 or whether you're 50, um, the goal doesn't change.
14:00
SPEAKER_00: The goal should always be to know your money, trust your plan, and live your life.
14:07
SPEAKER_00: So the goal remains the same no matter what age the person is.
14:10
SPEAKER_00: However, you're you are correct, Rocco, that at age 30, there are certain things you want to focus on.
14:16
SPEAKER_00: Um, for example, you're just starting out, perhaps you've been working at a job, uh, your career job maybe for two, three, four years.
14:25
SPEAKER_00: The first thing you want to do, and I advise everyone to do, is to build up an emergency fund.
14:32
SPEAKER_00: Three to six months worth of your expenses in a savings account that you never touch.
14:39
SPEAKER_00: And this is not three to six months worth of income.
14:41
SPEAKER_00: This is three to three to six months worth of expenses.
14:45
SPEAKER_00: The second thing I say is uh your paycheck.
14:49
SPEAKER_00: If you have direct deposit, have your paycheck direct deposited into your savings account and then only pull out what you need to pull out to pay your bills into your checking account.
15:01
SPEAKER_00: And from your checking account, automate the paying of your bills.
15:06
SPEAKER_00: Okay.
15:07
SPEAKER_00: Um, a third idea is to set aside a couple hundred dollars, whatever it is for you, for incidentals like going out to eat or um going shopping or whatever, pull that from your savings count, that amount of money that you budgeted for, and put that in yet a third account.
15:26
SPEAKER_00: And so it's a way of structuring how your money's coming in and how you're controlling it.
15:32
SPEAKER_00: Okay.
15:33
SPEAKER_00: Um, control your money so it doesn't control you.
15:37
SPEAKER_00: And automate as much of your bill paying as you can.
15:40
SPEAKER_00: Set transfers up so that the bills are paid right after payday.
15:44
SPEAKER_00: The third thing I would say is for those individuals who have a retirement plan through work where they receive a match, a 3% match, let's say, make certain you're contributing at least 3%, at least enough to get the employer match.
16:00
SPEAKER_00: Because don't leave free money on the table.
16:03
SPEAKER_00: Right.
16:03
SPEAKER_00: So those are some things to think about.
16:05
SPEAKER_00: Uh buy term life insurance.
16:07
SPEAKER_00: When you're young at age 30, a term insurance is very inexpensive.
16:12
SPEAKER_00: And you can use term insurance to offset loss of income for a spouse if one or the other should pass away.
16:21
SPEAKER_00: Uh, you can use term insurance to pay off a mortgage if you own a house and you have a mortgage.
16:27
SPEAKER_00: So get a term life insurance policy in your 30s.
16:30
SPEAKER_00: It's going to cost you next to nothing.
16:33
SPEAKER_00: And then when it comes to investing, skip the stock picking.
16:36
SPEAKER_00: A lot of 30-year-olds, you know, they want to be an AI, they want to be um, you know, going for that next hot thing.
16:44
SPEAKER_00: And I and my view on that is a 30-year-old who's investing 15% in, let's say, a boring index fund, their performance is going to far outweigh someone who's saving 5% in the hot stock of the year.
16:59
SPEAKER_00: So those are some things for 30-year-olds to think about.
17:02
SPEAKER_00: Yeah.
17:03
SPEAKER_00: I think that's Yeah.
17:05
SPEAKER_02: Yeah.
17:05
SPEAKER_02: So um the index, so the index fund is what you recommend as an investment for them.
17:12
SPEAKER_02: Because I've always heard, and I'm sure we've always heard, that you know, if you're younger, you can afford to have more aggressive investments.
17:20
SPEAKER_02: And if you're young, if you're older, less so.
17:22
SPEAKER_02: So how does that play into this?
17:25
SPEAKER_00: Yes, generally speaking, that's correct.
17:27
SPEAKER_00: The younger you are, the greater the time horizon you have.
17:31
SPEAKER_00: So you because we know that the markets are cyclical, they rise and they fall, and they rise and they fall.
17:38
SPEAKER_00: And so you're going to experience, most likely, um, you know, your your money increasing in value, and then correct there's a correction and it drops, and then it increases the value.
17:49
SPEAKER_00: So you have more time to weather through those ups and downs in your younger years than you do in your older years, when now you've got to rely on this money to generate income and cash flow.
18:02
SPEAKER_00: Um, but there's nothing wrong with an index fund uh that um will give you more diversification and just slow and steady continuing to invest in an index fund that's appropriate for you and your goals, um, as opposed to uh a next, you know, a particular stock.
18:22
SPEAKER_02: Okay.
18:23
SPEAKER_02: So so how is this whole thing different for the 50-year-old?
18:28
SPEAKER_00: Good question.
18:29
SPEAKER_00: I'm glad you asked.
18:30
SPEAKER_00: So a 50-year-old, again, the goal is the same, right?
18:33
SPEAKER_00: We're just changing what we're doing.
18:35
SPEAKER_00: So at 50, now at 50, 50 is your window of opportunity to start planning for retirement.
18:44
SPEAKER_00: And I know some people say, oh, I'm only 50.
18:47
SPEAKER_00: But if you start planning for retirement at 50, assuming you're going to start work stop working at 60 or 65, you'll you'll know your numbers and you'll have 10 or 15 years to be able to fix any gaps in your plan, right?
19:02
SPEAKER_00: So start planning at 50 for retirement.
19:05
SPEAKER_00: Do run the math, do the numbers.
19:08
SPEAKER_00: Um, and in addition to that, the IRS is now allowing 50-year-olds to do catch-up contributions to their retirement plans or 401k plans in their IRAs.
19:20
SPEAKER_00: Take advantage of that.
19:22
SPEAKER_00: In your latter working years, throw as much money as you can, depending on your circumstances, into your retirement plans to get that tax-deferred growth.
19:34
SPEAKER_00: And the third thing I'd say is again, look at your whole plan.
19:39
SPEAKER_00: Look, just zoom out, look at your entire plan.
19:42
SPEAKER_00: Your old retirement accounts, maybe that are left over somewhere.
19:46
SPEAKER_00: You get a statement once a year.
19:48
SPEAKER_00: Um, you know, your spouse's accounts, the equity you might have in your house, all of the different types of insurances that you might have.
19:58
SPEAKER_00: Now's the time to revisit that term life insurance that we talked about at age 30, because that's probably running out.
20:04
SPEAKER_00: Take a look at life insurance.
20:06
SPEAKER_00: What do we do we need life insurance?
20:07
SPEAKER_00: What do we need it to cover?
20:09
SPEAKER_00: And um, think about your later years when you might need long-term care.
20:16
SPEAKER_00: And how do we, how can we possibly position life insurance to help offset the cost of long-term care should it be needed later in life?
20:25
SPEAKER_00: So, really getting that very wide, zoomed-out picture of your entire financial life and working with an advisor that helps you pull all of the pieces together, reconnecting ones that are broken, and setting you up with a retirement plan so that we can then project forward and say, okay, uh, you want to work until you're 65, and this is the amount of money you'll need.
20:53
SPEAKER_00: Where's the gap?
20:54
SPEAKER_00: You're 50 now, you want to stop working at 65.
20:56
SPEAKER_00: Where's the gap and how do we fill it?
20:58
SPEAKER_00: And then every year, every two years, revisit that plan.
21:03
SPEAKER_00: And one of other all the time important things, but I just want to bring this up, is do this, all of this, do this with your spouse.
21:12
SPEAKER_00: I am a firm believer in having both spouses attend meetings and both spouses being involved in the finances.
21:21
SPEAKER_00: Now, we all know usually one spouse is the billpayer and kind of knows what's going on a little bit more than the other one, but talk to each other, keep each other informed.
21:31
SPEAKER_00: So at 30, you're building habits, you're setting things up the right way, you're building those strong foundations, those habits, you're setting for some future goals, maybe buying a house, having a family.
21:44
SPEAKER_00: At 50, you're really honing in on building the plan all along the way, making sure that you're talking to your spouse.
21:53
SPEAKER_00: Um, if I could share just a quick story.
21:56
SPEAKER_00: Um, this happened in my own family.
21:58
SPEAKER_00: Um, my mother.
22:00
SPEAKER_00: And my stepfather were married for 35 years.
22:03
SPEAKER_00: And this is one of the reasons why it's so important to have uh husband and wife talking to each other about finances and being on the same page.
22:11
SPEAKER_00: Um, and my stepfather was the one who paid all the bills and managed all the money.
22:17
SPEAKER_00: And they come from a generation where they don't talk about money much.
22:21
SPEAKER_00: You know, they it was just you don't really talk about it.
22:24
SPEAKER_00: So I wasn't involved in their financial lives.
22:27
SPEAKER_00: I thought they were doing well.
22:28
SPEAKER_00: I wasn't concerned, you know.
22:30
SPEAKER_00: Um, well, about 10 years ago, my stepfather suddenly passed away from a massive heart attack.
22:38
SPEAKER_00: And my mother had no idea what was going on.
22:42
SPEAKER_00: She had no idea how to pay the bills, how to access his email, where anything was located.
22:48
SPEAKER_00: So in the middle of her grief, she had to try to figure this out.
22:51
SPEAKER_00: And she's a brilliant woman, but um, I had to go down to her house and help her unwind this.
22:58
SPEAKER_00: And so you don't want to put someone in that position.
23:00
SPEAKER_00: So definitely at age 50, again, make sure throughout all the years, but especially at age 50, that both spouses are in alignment and talking to each other.
23:10
SPEAKER_02: Yeah, very good, very good advice.
23:12
SPEAKER_02: Very, very good advice.
23:14
SPEAKER_02: Um so you mentioned earlier something about transitions.
23:18
SPEAKER_02: I'd like to hear a little bit more about that.
23:20
SPEAKER_02: Like what what you know, how are finances affected during these times of transition for people?
23:28
SPEAKER_00: Yeah, yeah.
23:30
SPEAKER_00: Yeah, transitions are hard.
23:32
SPEAKER_00: They're they're very, very hard.
23:34
SPEAKER_00: And um it's there's all kinds of transitions that you we can talk about, but the the overall idea is that um a transition can either set you forward 20 years or completely decimate what you're working on.
23:53
SPEAKER_00: And it it whenever you're going through a transition, it can take uh about 20 years of financial decisions and compress it into about 18 months.
24:02
SPEAKER_00: And so what do we mean by that?
24:04
SPEAKER_00: It can be transition can be retirement, divorce, loss of a spouse, sale of a business.
24:10
SPEAKER_00: In each one of those, a person faces the biggest money choices of their life at exactly the moment when their judgment is under the most stress, right?
24:19
SPEAKER_00: Um, and Rocco, you know, uh money is very emotional, it's very psychological.
24:26
SPEAKER_00: And especially during a transition.
24:28
SPEAKER_00: And any advisor who diminishes that truth hasn't earned the right to manage yours.
24:35
SPEAKER_00: And so, for example, uh grief makes people freeze, right?
24:40
SPEAKER_00: Uh fear makes people sell at the bottom.
24:44
SPEAKER_00: Anger during a divorce uh makes people fight for a house they will never afford to keep.
24:50
SPEAKER_00: And nearly half of Americans report that they have anxiety around money.
24:56
SPEAKER_00: So it's a very emotional thing.
24:58
SPEAKER_00: And when you're adding on top of that a transition, um, it it's just it can be very hard to navigate.
25:05
SPEAKER_00: And those are the moments that I trained for specifically, because one of my designations focuses on the financial side of divorce, and the other uh prepares a business owner for selling their business.
25:18
SPEAKER_00: And so different transitions, same job, slow the decisions down, protect the person first, the portfolio second.
25:27
SPEAKER_00: And my number one that I tell everyone going through a transition, any type of transition, for the first six months, do not make any decisions that are irreversible unless a deadline forces you to do so.
25:43
SPEAKER_00: And if you find yourself in that situation, talk to a professional, either an advisor, an accountant, talk to someone else and get an opinion.
25:51
SPEAKER_00: And then park the money somewhere safe.
25:54
SPEAKER_00: You sell your house or you sell your business, you retire, park the money somewhere safe and breathe.
26:00
SPEAKER_00: You don't have to make any decisions right now.
26:02
SPEAKER_00: And um, the right plan to come along, the right plan waits for you.
26:07
SPEAKER_00: The wrong one gets sold to you while you're going through this process.
26:12
SPEAKER_00: Um, and I know what it's like standing on the edge of a transition, like I stood there when I was 19 with my bills, you know, attacked to a corkboard uh with a baby coming.
26:23
SPEAKER_00: And so that's a that's a big uh that's a big reason we do what we do is to try to help clients navigate through those transitions in a way that is um empathetic and understanding.
26:36
SPEAKER_00: And we help uh, you know, try to figure out what needs what absolutely needs to be done right now and what can wait.
26:43
SPEAKER_00: And let's just slow down and breathe.
26:46
SPEAKER_02: Yeah, I bet I mean that is really when people need you the most, right?
26:50
SPEAKER_02: You know, when they're they they're just so, you know, you met you said it so well, all those emotions, you know, fear, anger, you know, it's like it they make you not think straight.
27:02
SPEAKER_02: Absolutely, and and the and there you are, the voice of reason with your experience, with your training, you know, helping people to slow down, you know, that decision does not need to be made today.
27:15
SPEAKER_02: And in fact, you're saying it can really wait, just as long as you park your money somewhere safe.
27:22
SPEAKER_02: Right, you know, look, look for an advisor to help you if you don't have one already.
27:27
SPEAKER_02: Yeah.
27:27
SPEAKER_01: Yeah, yeah, yeah, absolutely.
27:29
SPEAKER_02: Yeah.
27:30
SPEAKER_02: So, you know, you you talked about the emotional aspect of money, you know, and and I think that people also have a lot of like beliefs and myths around money, you know, that kind of thing.
27:45
SPEAKER_02: Are there any money beliefs that uh you just you just would wish you'd never heard of again from people?
27:54
SPEAKER_00: Yes.
27:55
SPEAKER_00: Um, yeah, I would say the one that bothers me the most uh is when I hear people say, well, I'm not I'm not wealthy enough to work with an advisor.
28:06
SPEAKER_00: Not true.
28:07
SPEAKER_00: Not true.
28:07
SPEAKER_00: There are advisors that work with um all types of clients in all types of situations.
28:14
SPEAKER_00: And uh, you know, you may be younger, you may be starting out in a career, you may not have a lot saved up and assets, uh, but you might have a decent income.
28:24
SPEAKER_00: Those are the formative, those are the years to really build that foundation.
28:29
SPEAKER_00: And I think it's crucial to engage with an advisor, to invest really you're investing in yourself to start out with a solid plan to get you on the right track to help you build those habits.
28:42
SPEAKER_00: So um I'd say that's a myth that I hear.
28:45
SPEAKER_00: Oh, I don't have enough money to work with you.
28:47
SPEAKER_00: I don't I can't work with an advisor.
28:49
SPEAKER_00: I'm not wealthy enough.
28:50
SPEAKER_00: There are advisors for uh all types of situations.
28:54
SPEAKER_00: Um, there are advisors that work with you know higher-end clients like we do, uh, high net worth clients, and there are advisors that work with individuals just getting started that uh that can help as well.
29:07
SPEAKER_00: And so I think that's that's something I'd like, I'd like to see everyone working with an advisor to get that expert advice because it's it's advice that uh, you know, done correctly, it sets up a stream of habits that really will put you in a good spot for years to come.
29:25
SPEAKER_02: Yeah, those those myths and beliefs, you know, like um there are a lot of people who who just believe that they are just they just don't uh they cannot understand money or they're not good with money, you know.
29:38
SPEAKER_01: Right.
29:38
SPEAKER_02: Uh I'll never understand investments.
29:41
SPEAKER_02: It's like, well, that's not really true.
29:44
SPEAKER_02: Right.
29:44
SPEAKER_00: Right.
29:45
SPEAKER_00: Yeah.
29:45
SPEAKER_00: Very yeah.
29:46
SPEAKER_00: And and a good advisor will meet you where you are.
29:50
SPEAKER_00: In other words, I've worked with clients where uh I can think of one in particular where she says, I don't understand this, I don't get this stuff, I hate this stuff.
29:58
SPEAKER_00: And it's like, that's okay.
29:59
SPEAKER_00: That's okay.
30:00
SPEAKER_00: Let us that's why you're working with us.
30:02
SPEAKER_00: Let us handle that stuff that you don't want to learn, right?
30:06
SPEAKER_00: And and let's work on on learning some other aspects.
30:09
SPEAKER_00: Um, but having a an advisor in your as a part of your team is really important, someone you can trust, because um, I mean, I couldn't do half the things that you do, wouldn't want to, you know, it just everyone's different.
30:23
SPEAKER_00: But uh yeah, taking control of your money, you know, those those types of steps people can do.
30:30
SPEAKER_00: But yeah, that is definitely a myth.
30:32
SPEAKER_02: Yeah, yeah.
30:34
SPEAKER_02: So Michelle, if if you could give people like three tips, you know, for the listeners out there, you know, something they can really just take away from this conversation, although there's been a lot already, frankly.
30:49
SPEAKER_02: Um what what might that be?
30:51
SPEAKER_02: Why what might those three tips be?
30:53
SPEAKER_00: Um, I think I just have to reiterate, um, you know, circle back to what I mentioned before.
30:59
SPEAKER_00: Um, the most important being that financial knowledge is power.
31:04
SPEAKER_00: And what I mean by that is control your own money.
31:07
SPEAKER_00: Don't let your money control you.
31:09
SPEAKER_00: Know where your money is going, what it's being spent on.
31:12
SPEAKER_00: You know, pull up uh your last month's, you know, spending and and analyze that, for example.
31:18
SPEAKER_00: And that sounds painful.
31:19
SPEAKER_00: People go, oh my gosh, I don't want to do that.
31:21
SPEAKER_02: Yeah, nobody wants to do that.
31:23
SPEAKER_00: Nobody wants to do that.
31:24
SPEAKER_02: They're afraid what they'll see.
31:26
SPEAKER_00: I know, I know, absolutely.
31:27
SPEAKER_02: All of their streaming subscriptions they didn't even know that they had and things like that.
31:33
SPEAKER_00: That's right.
31:34
SPEAKER_00: That's right.
31:35
SPEAKER_00: Absolutely.
31:36
SPEAKER_00: But um, but we uh we got to get control over it, otherwise it will control us.
31:41
SPEAKER_00: So if anyone ever wants to um continue making progress in building wealth and getting their financial house in order, uh, the first step is you got to know where your current money's going and you got to be able to control it.
31:54
SPEAKER_00: And the second thing I would say uh again is if you're married or you have a significant other or a partner that you share life with and share finances with, uh, make sure you're planning this together.
32:08
SPEAKER_00: Um, you know, it's really important, even if one person is the person paying the bills and primarily responsible, make sure that the other person understands what's going on and where the passwords are kept and what bills we have to pay.
32:21
SPEAKER_00: And who do I call if, God forbid, the other person is no longer living.
32:26
SPEAKER_00: And uh I have a client um that they have a, I love it.
32:32
SPEAKER_00: They have a monthly, uh, what do they call it?
32:35
SPEAKER_00: Well, I think it's just a monthly financial planning meeting, just the two of them.
32:39
SPEAKER_00: They sit down every month and they game it out on a whiteboard and they're making tremendous progress.
32:47
SPEAKER_00: Um, so don't be afraid to do that.
32:49
SPEAKER_00: And um, and the third would be work with an advisor, um, work with someone that will take the time to listen to you to get to know you as a person, um, because that's what matters.
33:01
SPEAKER_00: What why we're all doing this so that uh we can live the life we want to live and love.
33:09
SPEAKER_00: Um that's what this boils down to.
33:11
SPEAKER_00: And um work with someone who's gonna understand what you're what you're trying to achieve that you can trust that will guide you through this journey.
33:19
SPEAKER_00: And I would absolutely recommend working with a fiduciary.
33:23
SPEAKER_02: Yeah, yeah.
33:24
SPEAKER_02: I think that's been made pretty clear at this point.
33:27
SPEAKER_02: Yeah, I I I like what you just said about uh, you know, it's it's about living the life you want to live, which is why I have you on the Life and How to Live It podcast.
33:37
SPEAKER_02: Yes, you know, because I do think it's really important, you know, it's like one of those one of those aspects, you know, it's like health, you know, all the other things, well-being, you know, relationships.
33:51
SPEAKER_02: Money is one of those things.
33:52
SPEAKER_02: And and people have odd beliefs, as we've already said, that like money is bad, money is the root of all evil, money is this, money.
34:01
SPEAKER_02: But really, money is just the fuel that fuels your life and your dreams, you know?
34:07
SPEAKER_00: It's just yeah, it's just the tool.
34:09
SPEAKER_00: I I tell people it's just a tool.
34:11
SPEAKER_00: It that's it, that's it.
34:12
SPEAKER_00: The rest of it, whatever comes around it, you know, whatever comes around it is what's gonna, what's really gonna help you to live your best life.
34:21
SPEAKER_02: Yeah, yeah.
34:22
SPEAKER_02: So is there anything else that that we haven't touched on that you would like to to talk about today?
34:28
SPEAKER_00: No, I think we've we've covered a lot of really great topics.
34:31
SPEAKER_00: Um it's uh, you know, the the younger you are, you know, start early.
34:37
SPEAKER_00: That old adage, start early.
34:40
SPEAKER_00: Work with someone that can help you get set up straight, uh, you know, in a straight path.
34:45
SPEAKER_00: Don't be afraid to educate yourself and gain control over where your money is going.
34:51
SPEAKER_00: Um, I think those are all good points to remember.
34:55
SPEAKER_02: All right.
34:56
SPEAKER_02: Well, thank you so much for sharing your knowledge and and your story.
35:00
SPEAKER_02: What a story.
35:01
SPEAKER_01: My pleasure.
35:02
SPEAKER_01: Thank you.
35:03
SPEAKER_02: So before we close out the show today, um, you know, there's a question I ask all my guests.
35:09
SPEAKER_02: And that question is uh if you had the ability to put a message on a billboard, and that billboard was, you know, in a place where you knew thousands of people would drive by it every day, you know, what would your message be?
35:24
SPEAKER_00: Oh, what would my message be?
35:27
SPEAKER_00: Um, I would have to say uh know your money, trust your plan, and then live your life.
35:34
SPEAKER_02: Okay.
35:35
SPEAKER_02: Know your money.
35:36
SPEAKER_02: I'm writing it down.
35:39
SPEAKER_00: Know your money, trust your plan.
35:42
SPEAKER_02: And live your life.
35:44
SPEAKER_00: Yeah.
35:45
SPEAKER_02: And live your life.
35:46
SPEAKER_02: I love it.
35:48
SPEAKER_02: Well, Michelle Martin, thank you for being on the show.
35:52
SPEAKER_02: Uh I really appreciated this time with you today.
35:56
SPEAKER_00: Oh, my pleasure.
35:57
SPEAKER_00: Thank you for having me.
35:59
SPEAKER_02: Well, that's it for today's show.
36:00
SPEAKER_02: I hope you enjoyed spending a little time with me today.
36:03
SPEAKER_02: Until next time, so long.
36:05
SPEAKER_02: Thanks for listening to the Life and How to Live It podcast with Dr.
36:09
SPEAKER_02: Rocco.
36:10
SPEAKER_02: If you'd like to book a coaching session with me, simply visit the show notes and schedule a discovery call.
36:16
SPEAKER_02: And if today's episode encouraged you or added value to your life, please subscribe and leave a review.
36:23
SPEAKER_02: Remember, life is not a dress rehearsal.
36:27
SPEAKER_02: Until next time, so long.
36:29
SPEAKER_01: Just live it live.