Happy Father’s Day…and More!

Happy Father’s Day, first and foremost.
Kids need their fathers. Never apologize for being a dad.

Here’s your ole buddy Josh working on an NHL puzzle with two of my tax credits this morning. Enjoy the simple things, my friends.

You may notice my arm in a sling… what’s that about? On Wednesday I had the pleasure of rotator cuff surgery. So that sling and I are going to become very well acquainted over the next 6 weeks. 6 LOOONNNGGG weeks.

As you can imagine, typing is a bit of a chore, so probably won’t be much in terms of emails to you. But given it’s been a week since I last touched your inbox, I figured I didn’t want you to forget me, thus I will share a couple links to videos I did recently that you might find informative.

This video on The #1 Question to Ask a Financial Advisor. I’ve stated it before, and I’ll repeat myself here, you should NOT be asking your prospective financial advisor many questions at all. He/she should be asking YOU the questions!

But there are a couple questions to ask, indeed. Start with this one. “How confident are you that the traditional 60/40 portfolio will provide similar returns as it historically has?”

The answer you receive to this will tell you EVERYTHING you need to know. If the answer is “yes”, you need to say “why?”. If the answer is “no”, you need to ask “why not?”

Again, the answer to this one question will save you a lot of heartache later.

And here’s a video on the Best Article EVER About Roth Conversions. It was written in 2007 and a lot has changed since then in regards to the tax code but the fundamentals of tax planning are still just as valid today as they were back then.

This was one of two articles that completely changed my financial planning career. The first was Ty Bernicke’s “Reality Retirement” in the 2005 Journal for Financial Planning where he showed that retirees spend LESS as they age.

This article, from Bob Keebler, introduced me to the concept of what I’ve since labelled the “Widow’s Tax Trap”. No one, at least that I was aware of, had ever approached tax planning in the way Keebler describes here. And just like that, I was a changed financial planner. I had been doing it wrong my first 10 years in the business.

If there were a Mount Rushmore of financial planning titans, Ty Bernicke and Bob Keebler would join John Bogle on there. Richard Thaler would be there. Nassim Nicholas Taleb, Benoit Mandelbrot, and others I’m forgetting here. But the issue is that financial planning is only as good as the financial planner’s ability to explain the concept to the regular person in order to get that person to act.

All your theories are meaningless if the person you’re preaching to doesn’t actually take action. This same concept applies to any field, religion, science, sports even. To get people to move in a direction you feel benefits them, you need to get them to buy in by being able to EXPLAIN it so they understand. Crazy, eh?

This article did exactly that for me and since 2007 I like to think I’ve been able to explain these concepts to the folks who engage me as their financial planner and thus my clients are better off for it.

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