More Knowledge, More Wealth - Ep. 165: Propriety Funds and Budgeting
More KnowledgeMore Wealth Nov 26[00:00:00]gabe:Good afternoon. This is Gabriel Shahin, certified financialplanner and your host, more Knowledge, more Wealth here on every weekend,talking about all important topics of personal finance. Our goal is to give youthe knowledge you need to increase. Your wealth now to the listener. You canalways reach out to myself or any one of our colleagues here at Falcon WealthPlanning.[00:00:16]Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like theBird, or visit ourwebsite@falconwealthplanning.com.That's falcon wp.com fora short. Now I'm a principal of Falcon Health Planning. We are a. Only not feebased, but a fee only financial planning firm that manages money as well. Butwe specialize in all aspects of personal finance, really to help with youroverallnet worth increase.[00:00:46]This can go over your cash flows, investments, estate planning,taxes, where you are today, how retirement looks like, folks, you name it.Anything that involves a dollar sign we can help with. We are offering a freefinancial assessment. If you want to take advantage to help relate this show toyour specific situation, give us a call.[00:01:02]We got offices all over, we can help nationwide folks. Our phonenumber is (855) 963-2526. That's eight 50. 96 Falcon like the Bird would loveto help you out. Now, today, there's a lot going on, so we are gonna talk about,especially with the Thanksgiving around, so happy Thanksgiving to you guys.And so we are gonna talk about proprietary funds, we're gonna talk about thefees.[00:01:29]With that, we're gonna talk about this season, tis the season. We'regonna talk about budgeting and some really cool gift ideas to help keep you ontrack because there are multiple studies out there that show. Where you wannastart off the new year, financially strong and independent and take a choke holdof it where people actually go into debt.[00:01:46]The majority people go into debt just to purchase gifts for the lovedones. And I swear if the loved ones knew that they wouldn't want youto do it.And so I want to be able to help you guys with that towards the back end of the
show. But I first wanna start off with some proprietary funds and out therefolks, there are some financial advisors, investment firms that are.[00:02:08]that areoffering you mutual funds. They're saying they're chargingyou 1%, but some of these funds that they have, ETFs, mutual funds, whateverthe case is, they're having their own proprietary funds. Some of 'em are hidden,if you will. I'll give you the most popular one. Like Wadell and Reed has theirIV shares have their strategic funds, and so you don't really know that they ownthese funds, so they're able to get their 1% fee and a 1% fee on top of that.[00:02:34]So you have to be really careful. This industry is tru. Tricky, and thisis why I always recommend to get a second opinion of how you are invested formultiple reasons. Number one, like I'm talking about right now, the cost.Number two, the diversification. Number three, the actual risk factor of whatyou're investing in, and especially in a recessionary period or loomingrecessionary period like now, and looking at a higher interest rate environment.[00:02:59]You can't just do what you've been doing histor. You have to take alook at how you were invested and how this can affect not just where you aretoday, but in the future. Because as rates are continuing to increase, this willhave significant effects of your return. And who are you going to for thisinformation?[00:03:20]I mean, even if you are reading a Barons Magazine or FinancialAdvisor or Planning Magazine or Investment News or whatever it may be,where are you getting these? Data and information needed for your specificsituation. Who are you bouncing ideas off of? Is it your spouse? Isit familymembers? Is it a coworker?[00:03:41]And are you di divesting any information to them? Are you, are yougiving them information about yourself so they can actually give you aneducated answer? Because yes, you're reading something, but that's aone waystreet. Sure. You may be reading an investment news magazine. Thatinvestment News magazine knows nothing about you.[00:04:02]So it's important just like in your jobs where things are crosscheckedand to understand your right and wrong decisionsthat you are making. Ifnothing else, get patented back, but there are people making incorrect decisions.I had somebody that was so excited to put their money into a 401k, but it was allin.
[00:04:21]We're in a recession here with a 30% discount and they wanted tostill, I'm proud of themselves putting it into cash. It's just true to misinformationand misguided. I see the same thing all the time with the brokerage account.People so excited to save 10 to $20,000. I've seen this, not a year, but a month,but it's sitting in cash doing nothing, and they have long term goals with.[00:04:43]This is an unfortunate part of people who are just come from acertain upbringing, background, knowledge level, where they feel they aredoing the right thing. They'renot spending frivolously, they're savings, but themechanism of saving is wrong. I have another group of individuals that put alltheir money in gold and silver.[00:05:02]Well, that doesn't pay dividends. I can argue. It costs money to storethe things,whether it's at a safe box or safe at home, not let alone the risk. Ifsomebody, God forbid, were to rob. . This is where it's important to run yourideas off somebody. By the way, folks, if you're just joining us here, arelistening to Gabriel Shahin, certified Financial Planner.[00:05:21]You're hosting more knowledge, more wealth here on everyweekend, talking about all important topics of personal finance, and today we'rejust talking about the simple aspects of understanding. Where your money isgoing.So I gave bunch of experience or examples of your money being in gold,silver, bitcoin, whatever it is, collecting cars, whatever it is.[00:05:38]But a lot of the time you seek a professional advisor and they are notfee only, they are either fee basedor a commission based advisor. And sadly,they still get to say they're a fiduciary. And some people say that and straightout lie to you. They're not giving you a form adv where it straight at, they tellthey show you nothing.[00:05:57]That shows. If they're getting a form adv, you know, there's actuallysome, uh, some, uh, truth to that. But some advs are for fee based advisorswhere there's a percentage of their business where they don't have to do what'sin your best interest. So they could take thathat off and start selling you junk,whatever it may be.[00:06:14]Commission based products. Un uh, traded, uh, REITs. It could besome annuities, insurance products. You don't know the difference cuz you gotsomebody look at you in the eye with all sincerity saying, I'm doing what's inyour best interest. And here's the worst part, they make the lie of the centuryand say, I'm even doing this for myself.
[00:06:33]Sometimes you should ask 'em, Hey, do you buy this for yourself?Yes I do. Show me, show meyour statement. Block out the dollar amount. It'sunfortunate guys, but this is the industry that we. because these commissionspay very high. Here at Falcon Wealth Planning, we're not allowed to getcommissions. That's why we chose this route.[00:06:50]Sure. We don't make as much as the other guys, but we are blessed.We have hundreds of people calling us on a monthly basis to work with us. Weare the Costco of financial planning. We don't make as much as the other guys,but guess what? We grow on. Thatis why we've been consistently rated one ofthe top firms in the country through RA Intel, through wealth management,through um, financial Advisor Magazine.[00:07:15]We just got on the Cover Advisor magazine. We are blessed with allthese accolades, city wire as well, LA Business Journey as well. My almamater, Arizona State University. I'm the first two time winner of the fastestgrowing entrepreneur of their. . And so these are the things that, it's justimportant to highlight is the consistency and the discipline to do what's right forour clients.[00:07:40]So be careful. If you're investing somewhere about the fees withinthe fees, ask 'em. You should almost trick 'em in a respectful way. Say, Hey,what fees am I paying? You should be a quick answer. Oh, you're paying me1%. Oh, you're paying me a a fee. Here's the dollar amount. Then you shouldask, is that all my fees?[00:07:59]Be like, okay, is there any fund fees? Fees within the fees? Theanswer is yes. Look at some of the symbols that you'reinvested in. If there's anytype of funds, there's a fee without a fee. See if there's any trading costs,associated commissions. That's very popular in the day of the wirehouses.Morgan Stanley, Merrill Lynch, Edward Jones, ubs, Wells Fargo Advisors, JPMorgan.[00:08:23]They get paid every time there's a buy and sell. . So what I'm tryingto tell you of course is that be leery. There are costs and fees within fees. This isthe time where if you're getting no value, why are you paying 1%? If there iszero value being offered to you, then why are you paying 10 times more thanyou probably should be?[00:08:45]I would just go with the, uh, robo advisor. They could charge you 10basis points. We had a client, we did something like that. We charged 'emquarter basis points. It's like, Hey, okay, don't reach out. 25 base points. Just,
okay, just like the, uh, Wealthfront or Betterment. Okay, we manage yourmoney, but don't call us.[00:09:06]You can't even get ahold of people at those custodians or advisors.Heck, they're still in a pending lawsuit for when the market crashed in 2020.Nobody, they couldn't get anybody on the phone started back in 2018 as well.They have a fiduciary responsibility and they can't even communicate with you.So you have to be careful of value what you're paying versus the.[00:09:26]You are getting, this is a crucial part when deciding who to workwith. That's why people buy cars for certain prices. There is a car that's amillion dollars versus a car that's 15,000. The value offered, whether it'sintrinsic, which is perceived by you or the public is higher with a million dollarcar.[00:09:44]Now, frankly, I think that's absolutely crazy. Anybody spent thatmuch money on a car. But my point is people that drive a Ferrari, you know, forme to say, wow, that's expensive. I said that to someone who owned a Ferrari.They said, have you driven in a. Have you seen how it's made? Don't say it'sexpensive without test driving it yet again.[00:10:00]Maybe it's cuz I can't have one because I don't wanna sell a bunch ofassets to go buy one. Uh, but for other people, they value things differently. SoI've just learned not to judge. My point to you is be very disciplined in how youchoose your help, how you choose your advice, and where you seek your.[00:10:23]Unfortunately people, there is not a straight answer because thisindustry is tricky. So seek an unbiased third party. This is why we're offeringone to two meetings, one to two hours of our time at no cost to help answerthese questions that you may have, where you could share what you're doing,what you have, what your goals are, and we could tell you, this is good, this isbad, and this is.[00:10:48]And there's no charge for that. And like I said, we have people allthroughout, many time zones in theUS and we help people all across thecountry give us a call. We would love to help. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the Bird. Or visit ourwebsite@falconwealthplanning.com.[00:11:11]That's falcon wp.com for. We would loveto go over your situationand give you the answers that you may need, but what we're gonna do when wecome back is the first part of there is just controlling fees and costs and so on, is
I want to talk to you and give you tips, budgeting, ideas, cuz t this season to bejolly, to be happy to be with family.[00:11:30]To be thankful, but as we're leading up to the holidays, whether it'sChristmas, whether it's Hanukkah, whatever it may be, for you guys, it'simportant to discuss ways to not get yourself introuble. So we're gonna talkabout budgeting and ideas where you can go ahead and save money this holidayseason.[00:11:45]We'll be right back after a few words.[00:11:49]Welcome back folks. This is Gabriel Shahin, certified financialplanner, your host, more Knowledge, more Wealth here on every weekend,talking about all important topics of personal finance. And today we are gonnatalk about t this season to be happy, to be jolly, to be giving. I, I wanted to talkto you about things that you could doto save money cuz.[00:12:08]The reports come out every single year and it's well over 65% of thepeople in this season go into debt to buy gifts for their loved ones. And reallythe purpose of this season is to show being grateful is to show. To be thankful.It's really to be together. They don't want you going into debt. So let me giveyou some ideas of what you could do to help yourself save money throughoutthis season, throughout this time.[00:12:35]And so I wrote a list down, and I'm gonna go overit with you. Andwe all know about budgeting, right? That's the easy one. Yes. Do not spend overa thousand dollars, right? Easier said than done. Do not spend over $500 or ahundred dollars, whatever it may be. And that is a crucial part to start with.Some of us might be fortunate enough to get a holiday bonus.[00:12:55]Some of us maybe saved money throughout the year where afterThanksgiving, you now have this pot of money that you are going to use forgifts. Start there. If you have 300 bucks and youneed to buy gifts for yourfamily of five or seven, if you're including parents or whatever it may be, justdivide it by that, right?[00:13:13]If you can only spend $500 and you have five people you're buyingfor, only spend a hundred per person if you want to. Two people in particular,something nice. Then maybe you spend one 50 on two of 'em, and then theremaining $200 split amongst the three, whatever it is I tell you, you say, well,this whole five people sounds great, but I got.
[00:13:32]50 peopleI gotta buy for and I only got a thousand dollars. Well, themath is simple folks. It's 20 bucks. So how can you do this and take control ofyour finances without going into debt? Well, let me start with an idea. And thisis an idea my family's done for the past two years, and so it what it is, it's an.[00:13:52]You guys know this. You've heard it before. You may not like it, butit's called an elephant exchange. And so what it is, and I think this is how itworks, everybody, they put their name and a little baseball hat and they pass itaround and you just choose one person. You get a gift for that person and youhave a limit, whether it's $20, whether it's $50 or a hundred dollars, and you ofhow much you're good spend on that individual.[00:14:13]Soif the limit is 50, you only buy for that one person. But what didyou do? You get to do this as a group when you come. For Christmas orwhatever the holiday, uh, and you come together and you can open up togetherbecause just the look and happiness on theface when you try to guess who got itfor them after they open it up.[00:14:31]It's just the fact that you guys are together. So this works for somefamilies, right? Other families say, uh, Uhuh, I want 10 gifts, and I'm willing tobuy 10 gifts. So I can get 10 gifts, obviously, for families that can, uh, go aheadand be tighter with their money and so on. This is a f. Option for them. So keepthat in mind.[00:14:50]That's something I recommend is for you to handle it that way. Sothat's the first partthat, uh, how you could do to save money. Uh, another part isfamilies sometimes say, you know, I don't need gifts. Obviously I would likegifts, but if we just buy gifts for the kids, so this of course makes sense if youhave kids, so you can go ahead.[00:15:09]Because a lot of these families in the thirties and forties, this is whenthey sometimes struggle the most. Uh, excuse me. And thirties and sometimesin their forties as well. Heck, sometimes in their fifties is a way just buy for thekids. And then you kind of set the precedent, Hey, after 18 years old, we gottafocus on the new little ones that come here.[00:15:27]So that sometimes also makes sense. So these are yet again, ideas tohelp you save on money. Uh, in, in add. Now, by the way, someof you mightsay, you know what? I come from a family that has a lot of money and I'm thepoorest one out of that family. Well, you know what? If you go a little light onthe gifts, you could say, listen, number one, what do you expect from me?
[00:15:48]You know, I don't have as much money as you. And number two,listen, you have more money anyway. You don't need my gift. It's the thoughtthat counts. So it might feel weird for you deep down inside, but after a while,make a joke. Have fun with it becauseI promise you, you already know this, butit's just the thought that counts.[00:16:08]So going back and looking at the holiday shopping, once you findout how much your budget is, when you go out and want to get your Aunt Sue anew a gift, and you have$20 to spend or $50 or whatever it is, I recommend.Using either a debit card to control that you don't go into debt. And this is acrazy idea.[00:16:29]I don't know how much I personally like this cuz I like gettingreward points and uh, tracking spending on my. My, uh, iPad, uh, on my apps,uh, and my credit card statements, but using a debit card could sometimes makesense for people as well. So you have cash and you have debit card as well. Um,and also there are some really cool sites out there, whether it's the Walmarts ofthe world, the Amazons of the world, the Best Buys of the world that tells yougifts under $25 you can get.[00:16:59]So the sooner you do it, the better as well. Because you normallydon't lose out an inventory. And the sooner you buy it, the sooner you canregain that money. And some people are in families where you know what thegifts are, it's money and it's cash. And you could use that money to also help,uh, pay down if you ended up spending more than you wanted.[00:17:19]But the goal is to be disciplined with it. If you had cash and youliterally put stacks aside, 50, a hundred dollars per individual. Well, if you haveany money left over, you can carry that over. Don't carry it over to another gift,but put it back in yourpocket. Folks, this is a crucial time of the year where youwanna make sure you stay disciplined.[00:17:39]It's so easy to be tempted with the eggnog and with the, uh, candycanes and all the suites and going out to all the light shows. It's very easy towant to be giving and loving cuz you have such good, warm feelings in yourstomach. Get it, but this is also the time to be disciplined. By the way, folks, ifyou're just joining us, you're listening to Gabriel Shahin, certified FinancialPlanner.[00:17:59]You're host of more knowledge, more wealth here on everyweekend, talking about all important topics of personal finance. And so we arediscussing right now the holiday season, how you should stay disciplined. So
the first part is doing an exchange just amongst your family, where if you have afamily of 10, you only give.[00:18:16]Gift per person. You pick a name out of a hat and that person hasthat gift. Obviously everybody would have to agree to that, but it would saveyou time and it saves you money as well. Another thing is just get gifts for thekids. Sometimes that could make a lot of sense as well. Don't forget to spendbudgets and limits on it for the family members, whether it's $20, $10, $50, ahundred dollars, whatever it.[00:18:39]put alimit on there because then it really narrows the search versustrying to look around for cats. So if that's what they like, or unicorns, if that'swhat they like, or just any, uh, what did they call it? Gadgets and widgets andany electronical items, cuzsometimes those can go for hundreds of dollars.[00:18:57]And so just try to keep a budget in mind of a hundred dollars. Or,hey, if you really have a lot, you want to go $500 or even more, God bless you.But put a limit. Okay. That's very important to doand some people do that. Yes,credit cards is ideal for many reasons. You get payment protection. , uh, that'sprobably the first one.[00:19:16]Uh, you get reward points, you get additional, uh, warrantiesdepending on the credit card that you may have, uh, let alone additional pointsdepending on where you purchase, uh, which could be cash back and used fortravel as well. Uh, but, uh, if you can't do that, Um, then debit cards are reallygood just cuz it controls making sure you don't go in overdraft or just drawmoney and using cash.[00:19:38]Yet again, these could be fantastic options to control your situationfolks, and we're recommending that you do that because it's a really, such agreat time of the year, no matter what your holiday is. And it's really a time forfamily to come together. And yes, it's time to be thankful. For what we have.[00:19:53]And it is also times to have our spiritual values really restored tostart the new year. And so this is a moment where you wanna make sure thatyou don't have stress where you're truly happy. And I know some of us reallycare for health over any type of wealth, uh, but also it's sometimes healthy. Away of a healthy life is to reduce the stress, and we all know for consistentbasis, money has been the root of a multiple stresses throughout, not just thisyear, but always.
[00:20:23]It's one of the leading causes of divorce. It's one of the leadingcauses of many issues that happens in a family household, and really it's just alot easier. To enjoy life when you don't have to worry about money. And sothese are the comments that I'll make, uh, to you guys of ways you could savemoney.[00:20:39]And if you need help with this, if you want help with just things withyour finance in general, these are just one of arguably a thousand plus ideas thatwe have to make sure your overall net worth gets increased over time. Folks, wewould love to help our phone. Is 8 55 9 6 3 25 26. That's 8 55 96.[00:21:01]Falcon like the bird. We got offices all across and we can help younationwide. Our headquarters is here in Southern California. That's where I'mlocated out of. But we would love to help in all aspects because folks, you'veonly do this once, right? You only have this conversation with people once,maybe twice, whether it's a year, whether it's a lifetime.[00:21:20]We have this conversation on a daily basis. Our goal in general is toincrease the net worth. Of our clients, no matter any way you slice it. We havethe tools, we have the experience, we have the accreditations, and we have thesophistication behind doing this on a daily basis where we could tell you themistakes that you made.[00:21:41]I've said this for a very long time, and that is a, as we all know, asmart person learns from their mistakes and that makes sense and I commendyou for that, but a smarter. Learns from others' mistakes. Hence why as parentsand our parents tried to tell us over and over and over again, but sometimeswe're too stubborn or too much of a knowit all or truly just need our chipperown teeth to realize it.[00:22:03]This is why it's important to make sure and when, it's funny how yousay this, and I say this to families sometimes, like they ask for my opinion. .And you know, when I give my opinion, sometimes they just want me tovalidate their opinion. And so I'll say, you know what? The only way I'll do it isif you pay me.[00:22:19]Cuz I feel like if you pay somebody you appreciate the advice. Andthat is kind of the sad joke that I have because they'll go talk to somebody elseand get advice that has. Without even experiencing the industry versussometimes your own family. So the joke is pay your family. You may be able tolearn.
[00:22:35]So in your case, we are offering those one to two meetings one totwo hours of our time at no Costcos. Take advantage of that. We would love tohelp. Phone number's eight, five five and 9 6 3. 25, 26. That's 8 55 96 Falconlike the Bird. Folks, that was a fast, fast show. I want you to enjoy your holidayweekend.[00:22:55]Enjoy it with your family. Happy Thanksgiving to you all. Hopefullyyou guys had a great one, watched some good football, and really just enjoyedthe time. That's what this is all about. We worked very hard. This is our time toenjoy it with our loved ones. Folks, feel free to join us every single weekend aswe go overthis, whether it's on podcast, Spotify, you.[00:23:16]We really enjoy doing this show. Uh, you can always reach out tomyself or any one of our colleagues. Our phone number is (855) 963-2526.That's 8 5 5 96. Falcon like the bird. Join us. We could havea personalconfidential conversation to help relate this show to your specific situation.Folks, we want you to enjoy your weekend.[00:23:36]Have a great week and God bless.
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