Wealthy HOMES

Are you looking to gain more insight into the importance of financial advisors and when you should have one? Look no further than the latest episode of the Wealthy HOMES podcast! Tune in to discover why having a financial advisor is important and when it’s the right time to take the plunge. Get ready to learn more about financial planning and the value of having a professional in your corner. 

#WealthyHOMES #FinancialAdvisor #FinancialPlanning 

How much you make is a touchy subject. You don’t go around your workplace asking

The financial planning industry can be confusing and often misunderstood. All “financial advisors” are different in how they work, the services they provide, and even how they are compensated. I decided to pull the curtain back and explain the ins and outs of what the day in the life of a financial advisor actually looks like. 

To do this I put together a 3 part mini series. Over 3 episodes I will explain what we do, how we get compensated, and when it makes sense to have/hire an advisor. An inside look at the good, the bad, and the ugly of our industry. 

Part 1 covers what a financial advisor does. I only cover the tips of the iceberg, but I broke down the main categories: Insurance, Taxes, Estate Planning, Investments, Retirement Planning, and how it all comes together in Financial Planning. 

Your credit score can be a touchy subject. It doesn’t indicate if you’re wealthy, or if you have a high income. A credit score was developed by lenders to assess how risky someone is to lend money to. We all know someone that we wouldn’t lend money to. Whether they haven’t paid you back or you have seen how badly they handle money. Your credit score tells your financial story, or what I like to call your financial résumé. A great credit score doesn’t mean you’re wealthy or even on track to be wealthy, but having a good score can help you get there!

In this week's episode of the Wealthy HOMES podcast, we are joined by Marie Davis from Consumers Professional Credit Union. Marie helps me talk about your credit score, how it’s calculated, what it affects, how to build it, and ways to check your score and credit report. 

Get your score here-> https://www.annualcreditreport.com/index.action 

Be sure to follow CPCU!

Website: https://www.cpcu.co/

Facebook: https://www.facebook.com/CPCU1

Twitter: https://twitter.com/cpcu1

Youtube: https://www.youtube.com/user/CPCUcreditunion

“Estate Planning” is often associated with people who are older in age and people who have significant wealth. But, in reality it should be something on everyone’s radar, especially young families. Sandy Derby, from Preferred Financial Group, joins us in this episode to talk about estate planning and the order you should take when it comes to your estate plan. Where do you start? Start with these 7-Steps!

1. Establish a medical ID
   1. Every smartphone has the ability to link a medical contact in your phone. This could be your spouse or any loved ones that you want to be notified if something happened to you.

If something happened to you today, would your family be okay? If not, we need to talk. We can develop a plan and coordinate with an estate planning attorney if it makes sense for your situation. 

Michigan Power of Attorney Forms:

https://powerofattorney.com/michigan/

Medical Directive:

https://www.caringinfo.org/planning/advance-directives/by-state/michigan/

Michigan HIPPA Release Form:

https://www.michigan.gov/mdhhs/doing-business/providers/hipaa/authorization-to-disclose-protected-health-information

Have questions? Give us a call at 269-978-6000.

One of the greatest investors of all time has a great quote: “When the tide goes out, you find out who is swimming naked”-Warren Buffet. Well the tide has gone out and Silicon Valley Bank and some others are now naked. The question that a lot of people are wondering is: what happened and is my bank next? 

To fully understand what happened to SVB, you need to understand diversification, interest rate risk, accounting, and FDIC insurance. These all created the perfect storm which ended up being the downfall of SVB. 

Ever heard the term "Don't put your eggs in one basket?" Of course you have, who hasn't. But, SVB didn't get the memo. The majority of the SVB holders were tech companies, tech startups, or venture capitalists. This created the first major issue.

It's no surprise that inflation has been an issue and will likely continue to be an issue. The Fed has tried to step in to fight inflation. Not like any fight, but a Mike Tyson vs Marvis Frazier type fight. The Fed has come in swinging and swinging hard. The fastest rate hikes we have seen in history. This created the 2nd major issue.

Before and during Covid these tech companies were flush with cash. Who do they turn to? The bank closest to them (SVB). The bank does what they normally do when they get deposits, and buys U.S. treasuries (at record low interest rates). Fast forward to 2022-23 and these tech companies get hit the hardest in this economic downturn. So, they go to the bank to make big withdrawals.

SVB now has to sell their treasuries to raise cash for their clients. Insert the 2nd major issue. Interest rates and bond prices work in an inverse relationship. When interest rates increase, the bond price goes down. SVB now has to sell these bonds at a lower price, which causes a loss. 

Now SVB depositors run into the biggest issue. Their deposits are over the FDIC limit. And that is how you get the perfect storm. Or, as Warren Buffet would say “they were caught swimming naked.” 

Links to FDIC and NCUA Coverage Calculators:

\https://edie.fdic.gov/calculator.html

https://mycreditunion.gov/insurance-estimator

Financial advisors are often looked at as the “Quarterback” of someone's financial life. We help create a game plan and then help our clients execute their plan to achieve their goals, whether that’s from a financial perspective, or their life goals. Our job as a quarterback can sometimes be as easy as “passing” a client to a CPA to help them with their complex tax situation, or “handing” them off to an estate planning attorney to create a will or trust for them. But, not often do financial advisors work with real estate agents.

I want to change that! So, I brought Gavin Homer from the Homer Group (EXP Realty) onto the Wealthy HOMES Podcast. Be a fly on the wall while Gavin and I talk about real estate, and how the Homer Group are specializing in new home builds. 

Have you wondered what the process is like to build a home?

How much would a new home be to build?

How do you get financing to build?

Where are some good spots to build in Southwest Michigan?

These are all answered in this podcast: https://wealthyhomes.podbean.com/

Interested in contacting Gavin? Check out his contact below!

https://linktr.ee/GavinHomer

One of the most common questions I get as an advisor is “What retirement account(s) should I contribute to?” 

Walking into a candy store as a kid with a couple dollars was overwhelming. So many options from candy bars to suckers, to gummy candy, to the candy only our parents ate, and even the gumbo jawbreaker. You know nobody made it to the center of those things! Candy can sound so simple, but it can mean something different for each person. Retirement accounts can be the same way. Some retirement accounts can sound the exact same but can be different based on the type of work your company is in. Very similar to flavors of candy, although they may look just like the other candy in the bag.

Most people have a workplace retirement plan and either have IRA’s or have heard they need them. In this episode, I go over the history of how people used to contribute to retirement, and also the progression of what accounts you should be contributing to.

• Do you  have a workplace retirement plan?

• If so, do you have a match?

• Or, is your income too high and need a different option?

These are all questions that I answer in this episode! As always, if you have any questions about this episode, please don’t hesitate to reach out. 

Does understanding retirement make your head spin just from saying “Roth IRA?” Retirement and investments can sometimes be about as clear as mud. That is where we come in!

 In this episode of the Wealthy HOMES podcast, Pat and James join us to talk about investments and retirement. We break down the differences of IRA’s, having a workplace retirement plan, and the different investments you will likely see inside of them.

 You can mainly find James at Marshall Community Credit Union, and Pat not only at MCCU, but also in our offices in Battle Creek and Portage. With over 50 years of experience on this podcast, you are in for an awesome episode!Have questions about what we covered in this episode? Reach out to MCCU and ask for James or Pat, or call our main office at 269-978-6000.

Check out MCCU's website below!

https://www.marshallcommunitycu.com/services/financial-planning.html

Investment and Advisory Services offered through Harbour Investments, Inc. Member SIPC.

What are odds that you have a podcast about financial planning and get to have your best friend on the show? Or even better yet, he works in financial services and provides a ton of value for the listeners of the Wealthy HOMES podcast. 

You can say we are lucky to have Kyle McGann from Supreme Lending on the show! We dive deep into mortgages and what you should do prior to getting a mortgage, the types of mortgages for beginners, mistakes to avoid when getting a mortgage, and then cap off the episode with Kyle’s experience investing in a rental property. 

Interested in talking with Kyle or asking him a question? Contact Kyle at 269-425-0559, or by email at [email protected]. NMLS# 2403698

Want to ask Connor a question, or give him an idea for a podcast? Send him a email at [email protected] or visit https://www.preferredfinancialgrouppfg.com/podcast and send him a message at the bottom of the page.