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