What's up Mavericks? Kris Krohn here. And today we're talking about the first
steps in financial planning. And listen, as a member of my channel, if you're a
subscriber, you know that we're always jamming on that game of financial
freedom and real estate investment. Financial planning? Does that really
belong in the game of real estate investment? You're about to find out next.
Alright, welcome back guys. Kris here and I am joined by John Spring. Dude, so glad
to have you here man. -Good to see you. -For today's interview, I really want to get
to let the first step is in financial planning. But can you actually begin
actually what is financial planning in general anyway, John? -Well financial
planning is basically taking a scientific approach a 7 step process
to planning your wealth currently while you're working as you're growing and
saving, as you build a family. And then in retirement. And spending it down. -So, it's
a formula. It's not 6 steps? It's 7. -There's well... I add one of the major
steps is finding the planner. -Okay, so that actually would you say that's the
first step of financial planning? -Absolutely. So, there's a lot of people
out there... By the way, a lot of people around my channel like, "Do I need no
financial planner? I'm going to develop my own financial freedom on you invest in
real estate." And that's a big part of creating wealth. But let's just back up
for a second to help you understand a couple things that you may not
understand. First of all, are all financial planners created equal? Like
are can they all do all the exact same things? Or they do they vary from one
another? -No, they don't. Actually there's a lot of
people that can call themselves a financial planner that don't have the
credentials. They're not fiduciaries a fiduciary. Somebody you want to deal with.
Did you share you somebody that has to have the clients best interest above
their own either. -Okay. So by the way, I want to just back up for moment I want
to make sure I understand this. I've actually heard that only 5% of financial
planners are actually fiduciaries. Does that mean that they can act different
one from another? -I'm not sure about the 5% number but the majority are not
fiduciaries. -Okay. And what does that mean? Well, basically they can... A lot of them a
product driven but they don't have to disclose conflicts of interest. They may...
They don't disclose fully what their fees getting paid are or if they're
getting paid you know backdoor money. -Alright. I'm going to tell you guys right now.
At least I can speak for real estate investing is that whenever licensure is
in place and whenever there's compliance, like you got to follow the rules. The
rules are super important. And whenever there's a lack of transparency, you never
quite know if you're getting the deal that you actually want. So, I'm just going to
tell you from you know my knowledge base that finding someone who is a fiduciary
is super important because of fiduciary by law, they can actually only make money
on one that they're disclosing to you. And
that's important for you to know so you can understand all the agendas and
what's happening in the atmosphere. Make sure no one's double dipping but rather
that you get to be more in control of the financial choices that you're making.
That sound about right? -Absolutely. Fiduciaries, once again, I
can't say it enough. They have to act in the best interest of the client at all
times. They have to disclose conflicts of interest, they have to disclose the fees
and the money they're making on the plan they're doing with you. -I do want to ask
you. Being fiduciary and being able to you know, be that role then as an
official financial planner, what kind of things can you do to help someone
financially grow that they wouldn't be able to do otherwise? -Well, you know what?
It depends on the advice you're getting. I'm a certified financial planner. So, I
had to go through the rigorous certification process of a CFP. So, based
on that knowledge and having the experience you have to take classes you
have to take a real tough exam. -Yeah. -But after doing that you know the ins and
outs. You get the proper training. You may... If you're not dealing with a financial
planner, a certified financial planner, if you're not dealing with fiduciary, you
may not get somebody that experienced. -Well and at the end of the day, here's
what I can tell you is that a fiduciary, they're not allowed to actually get
kickbacks or be compensated in other ways from the different investments that
they're playing with. Which means they can't become partially something. You
know, there might be other people or other organizations or investments out
there that are offering kickbacks or things that say, "Hey, you should promote
this." But that doesn't mean that it's actually in the clients best interest.
Most people don't actually understand that. It's a big deal.
-Absolutely. A lot of a lot of advisors will come in they have a product that
they're looking to sell you. It's almost like going to a doctor and he's sitting
there with a prescription already waiting for you. -Yeah. -You don't do that.
You has to look at you see what's best for you, see what you require and then as
a fiduciary, we're required to find the best suited product at the best price.
And for me, that makes a huge difference in how I'm doing my personal planning. So
financially, I can get where I want to go. I can have that diversification. I
want because I'm not only in the game of real estate. I'm in alternative
investments and other things but I want all that upfront information and I don't
want anyone playing games behind my back. Which unfortunately is littered
throughout that entire industry. John, is there any last piece of advice that
you'd offer for them when it comes to just looking for the right kind of
certified financial planner that is also fiduciary? -I would
do it the same way you might you know get a nanny or anything like that.
You have to go through set appointments. And you basically interviewing the
person that's going to be in charge of a large portion of your life. Especially a
retirement. So do it with care. Do it with diligence. Make sure you sit down. Ask the
right questions. But but overall make sure they're a fiduciary and they're
acting in a fiduciary capacity for you. -Well, I guess what I'm hearing is. You
got to also like the person to make sure... You know, so that's also
important. So John, thanks again for being here. And guys for the rest of you, wish
you the best luck. Subscribe. See you on tomorrow's video.