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Ep 39: Money Beyond Numbers: Financial Advisor Chirho Garcia on Building Wealth That Protects What Matters Most
36 Plays4 months ago
What if the biggest financial mistake you're making isn't about your investments, budget, or debt? Today's guest discovered this truth when his family faced a crisis that changed everything, and now he's helping high-earning moms build wealth that actually protects what matters most.
Laura sits down with Chirho Garcia, an independent financial advisor with Elevated Retirement Group, who brings a refreshingly human approach to financial planning. Inspired by personal family experiences of crisis and resilience, Chirho saw early that true financial guidance isn't about money itself—it's about protecting what you value most.
In this conversation, you'll discover:
• Why "controlling the gold" is the key to making your own rules
• The biggest money mistakes entrepreneurs make (hint: it's the DIY approach)
• How to get your financial house in order when you're making six figures
• Why your business shouldn't be your retirement plan
• The difference between looking wealthy and acting wealthy
• Practical first steps for working with financial professionals
• How to teach your children about money and legacy
Chirho's philosophy centers on helping clients "live out the best values of your life and create memories with the people you love"—because money isn't the goal, it's the tool to live fully, love freely, and create a legacy with purpose.
Whether you're a mompreneur struggling to balance business growth with personal financial planning, or you're ready to move beyond the overwhelm and build true financial confidence, this episode offers both inspiration and actionable guidance.
Connect with Chirho Garcia:
Email: chirho@elevatedcapadv.com
Phone: 951-330-4900
Complimentary strategy sessions available
Connect with Laura:
Website: lauracaroffino.com
If this episode resonated with you, please share it with another mom who needs to hear this message. Until next time, keep leading, keep growing, and keep believing in what's possible.
Disclaimer: This podcast/video has been prepared for educational and marketing purposes only. The information in this video is general in nature, does not constitute personalized investment advice, and does not provide a complete analysis of the subjects discussed. All investments involve risk, and different types of investments involve varying degrees of risk. There can be no assurance that any specific investment strategy will be profitable or suitable to you. Additionally, although information presented in this video is believed to be factual and up to date, we do not guarantee its accuracy.
You should consult an attorney or tax professional regarding your specific legal or tax situation and should consult a professional adviser before implementing any of the strategies mentioned in this video.
Investment Advisory Services are offered through Elevated Capital Advisors, LLC, an SEC Registered Investment Adviser affiliated with Elevated Retirement Group, LLC. Registration as an investment adviser does not constitute an endorsement of Elevated Capital Advisors, LLC by securities regulators, nor does it indicate that the firm has attained a particular level of skill or ability.
Insurance advice and products may be offered by a third-party insurance producer, which may be affiliated with Elevated Retirement Group, LLC and Elevated Capital Advisors, LLC.
Mommas Who lead are not clients of Elevated Capital Advisers. They have not received any cash compensation for their assistance in preparing and hosting this podcast, or for providing any endorsement contained in this podcast.
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Transcript
The Biggest Financial Mistake
00:00:00
Speaker
What if I told you the biggest financial mistake you're making isn't about your investments, your budget, or even your debt. It's about not protecting the one thing that makes all your dreams possible.
Learning Financial Protection from Crisis
00:00:11
Speaker
Today's guest discovered this truth when his family faced a crisis that changed everything. And now he's helping high-earning moms like us build wealth that actually protects what matters most.
Welcome to Mamas Who Lead
00:00:23
Speaker
Welcome to Mamas Who Lead, the podcast for faith-driven moms, mompreneurs, and women leaders who know they're made for more. I'm Laura Garofino, and if you're building a business, leading with confidence, and creating lasting impact, you found your people. And today, we're diving deep into something that keeps so many us up at night, and that is not just building wealth, but building it the right way, the way that aligns with our values, protects our families, and creates the legacy we actually want to
Cairo Garcia's Story and Motivation
00:00:51
Speaker
leave. So I'm here with Cairo Garcia. He's an independent financial advisor with Elevated Retirement Group. And here is what I love about Cairo's story.
00:01:00
Speaker
He didn't get into finance for the money. He got into it because of a family crisis that showed him what really matters. So Cairo, i have to start here. First, welcome to Mama Sue Lead. I'm so glad you're here. you for having me.
00:01:16
Speaker
Yes, yes. i um I have to start here. Can you tell us about that moment when everything kind of clicked for you about what financial planning really means? So kind of going back, right? ah two Two real incidents, really, right?
Family Crisis and Financial Lessons
00:01:35
Speaker
ah The first incident was still a really young boy, my mother had a fatal accident and actually in Chicago where her and her best friend were in a taxi and a drunk driver hit them.
00:01:50
Speaker
And my one of my mom's best friend passed away. So they were in the hospital for about, she well, she was in the hospital for about three, maybe four months in Chicago before she came back to work. So I was still young, so I wasn't really understanding the whole financial consequences at that time.
00:02:12
Speaker
Right. ah few years after that, my older brother was electrocuted with 69,000 volts of electricity. Oh my goodness. though i so what happened is when that incident happened, it really changed our family dramatically. Right.
00:02:34
Speaker
I I'm the second child. So I have to kind of step up as the the bigger brother at that time. And my older brother was living in the hospital, right? And 80% of his body was burned.
00:02:47
Speaker
And looking at the financial consequences, my mother did everything that he can. My dad did everything that they can. They tapped their money into their savings account, their investment accounts. And luckily with insurance, they're able to pay for bills, insurance, family, and having the right guidance.
00:03:06
Speaker
And then many years after that, I was talking to a, my parents, uh, financial advisor at the time. And they said some of the plans that they created were actually used to help pay for the medical expenses.
00:03:21
Speaker
So in the end, my brother is doing well. He's actually married with a child lives up in upstate New York. He is, uh, supervisor, I believe in one of the hospitals over there. And, uh, my parents are doing well. know So it was just like,
00:03:38
Speaker
a struggle, but financially it was tough. Me being young, not really understanding it. Both my parents were in the hospital all the time. So they have, so and not only do we have, or they have to go spend a lot of time with my brother, but they also, my mom and dad has to kind of switch, take shifts on seeing me and my younger brother and my little sister, right? Because we're still fairly young at that time, right? So it was it was really challenging, but not really knowing the financial impact of it. And then I asked them, how did you guys do it? It really is because of the insurance that they have, the planning that they have. It wasn't the best, but it actually helped them out a lot.
00:04:27
Speaker
Wow. That's about, that is so powerful. Now, how did they have, they had the insurance before? what i like what type of insurance I should say? They they have a cash value insurance. They have health insurance. They have savings accounts and investment accounts that they've used. they They've had. So that's what they have used, you know? Oh, well.
00:04:49
Speaker
And they used that back then? They used it back then. So it was actually a, and this is a time when we were still living in the Philippines, right? So my mother was able to use her health insurance or some insurance. It was kind of crazy. I don't know exactly what it was because there were better policies from what I hear back then compared to what it is now. But that that really helped out a lot.
00:05:15
Speaker
Whenever they were, you know, going through that and then so that that the insurance really helped you. And so what was it whenever you were like, okay, this is interesting. Maybe I should make this what I do for a living.
Becoming a Financial Advisor
00:05:28
Speaker
well It's interesting though, right? ah I feel like everybody that goes into our industry lands by accident, right? And so when I i was actually graduating high school, when I graduated high school, I really didn't know what I wanted to do.
00:05:47
Speaker
So what I did is we have a family friend who told me, Hey, why don't you go and work on wall street for little bit. So I interned in downtown wall street, trying to figure out like, if that's something that I wanted to do.
00:05:59
Speaker
And then what happened was after six months of doing that, I said, what if it doesn't work out? What am I going to do? So everybody's told me you should go to college and get an accounting degree.
00:06:11
Speaker
So I have an accounting degree. Right. But the problem is I did not enjoy the work. That wasn't my personality. And so when I left accounting, right, let me go back to the financial service.
00:06:28
Speaker
And I really dug down into it because regardless of what it is, um I was having fun. I wasn't making anything, but I was having fun talking to people, understanding retirements, understanding investments, understanding insurance, and really how it fits in the big picture plan.
00:06:48
Speaker
And to me, that was worth right Because when I'm having fun, I didn't i didn't feel like I'm working. I just talk to people and provide guidance, really.
00:07:00
Speaker
and that to me was fun. Right, right. Yeah, no, that is, that would be probably, um, you know, helping people and you're guiding them, um, in the directions that benefit them. We were just talking before this, before we got online into recording was about purpose. And so, um, it kind of sounds like you found your purpose.
00:07:22
Speaker
Yes. Yes. And that's something that it took me, uh, a while to really figure out because in this industry, I'm saying, wow, but you know, when this industry, when I talk to people, I would ask them, why do you want to join the industry?
00:07:41
Speaker
huh And oftentimes the response that I get is I want to make money. Well, we all want to make money. But what's the real purpose?
00:07:55
Speaker
Yes. Like I want to help people. Yes. We all want to help people, but you have to dig, dig deeper. dig deeper in there. It's really why you do it. You know, because we all want to help people, we all want to make money.
00:08:10
Speaker
But we have to do it in the right way. Right. And really think about that really take the time to see if this is something that you could do every day, every morning, right? Because it's not an easy industry. A lot of people are deceived. They met somebody that says, Hey, you're going to make X amount dollars, so you get excited, but not knowing the background work behind it, the dials, the rejections, the no's. It's not easy. It is not easy.
00:08:40
Speaker
But what what gets me up is because of the fact the vision that I have is really to create legacy, not just for me, but for the people I love, their family, to their children and children.
00:08:57
Speaker
Because I realized that what we do It's not really thought in school. Oftentimes it's thought in the school of hard k knocks and kind of learn, learn and learn and, and really seek out, we have to seek out information and the wonderful thing that we have with technology, we can get the information, but how do we implement it next? You know, when I look at planning, there's different types of financial professional, there's people that are focused on investments only. There's people that are focused on insurance only.
00:09:32
Speaker
And if you ask, which is the best, it's like, it's hard to say. What I look at is where's the balance? You know, you gotta have that balance life. And, and I just spoke to somebody earlier today about looking for, well, this person wants to retire, but she doesn't know how, but more importantly, um, she's just burnt out.
Early Retirement and Finding Meaning
00:09:59
Speaker
And so I found a solution for her where she can retire now, but more importantly, i was talking to her about what are going to do when you decide to retire?
00:10:10
Speaker
Are you going to sit at home, watch TV? Are you going to travel? are you going to do something meaningful? Because you can't sit around all day, right? understand that our first couple of years of retirement statistics said that would be our most expensive years because,
00:10:30
Speaker
the things that we're not able to do while we're working, we're able to do so like join a country club or do more travel. So those are all expensive, right? So we have to kind of factor that in when it comes to planning.
00:10:45
Speaker
But like with kids, how do we create purpose with kids? And I think with education example, that's something that I'm teaching my daughters However, one's a little bit different than the other, but it's it's okay. Some people learn earlier. or Some people, they have to kind of experience it and see, oh, this is what my dad meant.
00:11:12
Speaker
So right it it is what it is. Everyone has a different learning curve. Some people learn it by seeing, by touching, and experience, you know. I love that. it's kind of it So you have your own little framework, um you know, getting clear, the clarity on your goals and values, um understanding your financial position for the most part and your options like different, you know, you were, you're just talking about investments or insurance um and then kind of like your peace of mind, building the systems that protect everything. yeah.
00:11:47
Speaker
I absolutely love that philosophy. And there was, there was also another thing you mentioned, and that was, um you know, you I guess you had mentioned, I think when, when in the prep work, when we're doing for this about money beyond numbers, can you kind of break that down and tell me what that actually means?
Money Beyond Numbers
00:12:10
Speaker
Money beyond numbers. ah Well, i don't So when I talk to people, right my message really is live out the best values of your life.
00:12:22
Speaker
oh Create memories with the people you love. And how this came upon to me is because I had ah many years ago, i was working with an LA client and i was as I was sitting down with them, I asked them, why do you have so much money?
00:12:43
Speaker
and these type of accounts. And their response was, I'm saving this just in case if I go to the doctor or to the hospital, I have money to pay them.
00:12:56
Speaker
ah Right. And then I looked at that and I kind of stepped step back and I asked them, why do you want to do that? Isn't, is that money for, do you save all of this money so you can give it to the doctor?
00:13:14
Speaker
Or to the hospital. okay But that's what insurance planning is for. Yes. Is to create that. So I said, why don't you go take some money to create this insurance plan and go travel the world?
00:13:31
Speaker
Because it's just you and your wife. Create memories with your family. Because... once you're gone, you're gone. So I asked, how long are you planning on being dead?
00:13:46
Speaker
right Right? Right. So it was just like, yeah. i'm not you're When you're gone, you're gone. and yeah And really looking back in there, right? We can give X amount of dollars to our beneficiaries, their family member. But if they don't have that purpose, they're going to squander it, right? But more importantly, they're going to want to create more.
00:14:12
Speaker
memories with us. Right. So, and that's kind of what I feel like I need to do more of that with my wife and kids. I want to do more and more and more of those really is because i don't know.
00:14:23
Speaker
I may not wake up tomorrow. Right. Me being in this industry, cause I've seen it. I, I kind of think a little bit different per se.
00:14:34
Speaker
And that's, that's why the insurance component and investment component are so critical in having that working together, not against each other.
00:14:46
Speaker
i hope that answers your question. no It does, it does. It's kind of, um it's, you know, i think, you know, you've talked about this maybe a little bit earlier or just um a little bit ago about money. it's ah It's a tool to live fully, freely and create a legacy with purpose. And so that is definitely not typical financial advisor language by any means. And I love that you broke that all down for us about why that is. Now, um I want to get a little bit more tactical here. So if
Business Moms and Financial Goals
00:15:18
Speaker
I'm a mom making six figures from my business, what are the first three things I should do differently with my money? And I know there's a lot of guru advice out there um and that kind of overwhelms us. But if you were, say, speaking to me and we've had many conversations, what would I do? What would you say for me to do? Well, I always say, right, if you have a business, right?
00:15:44
Speaker
First thing is you definitely need to talk to an accountant, a CPA, an attorney, and a financial advisor. And each professional should be working together and helping you accomplish your goals and really have that clear idea what those those goals are.
00:16:01
Speaker
and And because of the fact that everything that we do has to help you with your taxes and your overall business planning, right? Because any money we earn, we always have a partner.
00:16:13
Speaker
And who do we get tax advice from? Probably from our CPA that's going to help us minimize those taxes. And we have to work together in looking at different types of accounts to help you minimize that taxes and get some tax benefits for yourself. And the attorney will help us, how would you say, how create the type of account registration or set up a company? how how does it How do they have to do that to create that the most effective way for you?
00:16:44
Speaker
Now, every case is different. The needs are different, but those three professionals should always be working together. Yes, I agree with that. i learned that the hard way in the beginning. so just And it's funny that I was telling, I was having a conversation with a friend and they were asking me, what if you win this big Powerball?
00:17:12
Speaker
Mm-hmm. Wouldn't that be nice? It wouldn't be nice. But then again, said to myself, man, I think I'd be a very dangerous person. Yeah. Why?
00:17:24
Speaker
Because maybe I won't know how to deal with it. How would I act? How would I treat? How would my values change? Would I be the same? Would I be this type of person? So I said to my friend, the first thing I need to do is to protect me from myself.
00:17:42
Speaker
so how do i do that right so yeah i because i've had this discussion with my kids my my older kids it's true right so i said to my so i said to my uh my friend like i need you to help me meeting Even though I am in this financial service business, I may i will need another financial advisor to kind of slap me in the face once in a while to say, hey, reality check.
00:18:14
Speaker
This is what's going on. Obviously the CTA and the attorney to really protect me in everything that I do and still align with my values and my goals. And it's interesting that people that don't know how to handle it, their values change, their attitudes change, things change, you know?
00:18:34
Speaker
And it's it's a very, very sensitive conversation. I remember couple of years ago,
00:18:46
Speaker
ah i met this attorney who actually, and he had a client there inside a bank. And apparently the son was homeless for about 13 years.
00:18:58
Speaker
He decided to be homeless. And all of a sudden, he came up with a lot of money. So his life changed overnight.
00:19:09
Speaker
And to him, every person to call him, he he doesn't want to talk to him because he's afraid of what he could do. So he needed to have his trusted attorney at all times. Apparently his family came from money, but he just kind of went a different path and he inherited quite a bit of money. And he needed to talk to a trusted person that would really guide him because it's so, he can be easily influenced to other things, and he's gonna go back to where he was.
00:19:44
Speaker
So I don't know. But that that was just interesting to me to see that. And, and I remember calling him and he was very upset and nasty with me. But I kind of understand why.
00:19:56
Speaker
Because there's so many people trying to call him trying to tell him this is what he needed to do. And I was still young. And at that time, and really trying to understand industry, but understanding the mindset of what is going on, and can he handle this? Is he ready to talk to people?
00:20:16
Speaker
Yeah. That's really good advice. getting Getting the protection. yeah you take yeah Not only from others, but also from yourself. From myself, too. yeah it's it's really It's really crazy ah of of how things are happening. And understanding really, how would you say this?
00:20:41
Speaker
ah Who we are, right? ah I mean, the trainings alone, it was just amazing getting involved in a lot of trainings and listening to other professionals talk about wealth and money and and and the society that we live in They prefer to look wealthy as opposed to act wealthy.
00:21:06
Speaker
And those are vastly different. People with real wealth act another way and people who want to look like they're wealthy act a different way. That's a different way. Yeah. And that's, and that's kind of the crazy part. It's just that, uh, I remember when I worked in Beverly Hills, one of the wealthiest clients that we have, um, drives a Toyota Camry and wears a members only jacket.
True Wealth vs. Appearances
00:21:31
Speaker
And I love the guy. because he gave me some great advice. He is a prisoner of war during World War II when he was young. I love that he gave me great advice and really understanding that you know you live beyond your means, help the community, help the people, and just you know stay true to your value.
00:21:54
Speaker
so And I've had great, I would say, mentors and the people that gave me wisdom. And I'm very forever grateful for that.
00:22:07
Speaker
Yes. You know what? Also, i've kind of um i've noticed also that
00:22:15
Speaker
particularly successful women I know are incredible at building their business, but when it comes to like their personal finances, they almost shrink if you will. And they kind of hand it off to someone else, like, um, you know, an assistant or something to that effect, or just really avoid it altogether. Do you have an idea of like what's happening there at all? Uh, maybe it's, I,
00:22:41
Speaker
There's a lot of things, right? Maybe that they're ashamed or they just don't know who to talk to because there's also that trust issue. Maybe they're not comfortable with the person that they're talking to because one when we give advice, right, we have to trust that that person, right? They may have been burned in the past where they were given wrong information. So I always suggest research, research, talk to people, talk to as many people as you want, right? But make sure that, you know, just formulate questions You listen to what they say and see which one's the best fit for you. And one thing with women, though, you guys have great, how would you say, intuitive skills, right? You know what I mean? Your gut feeling, I mean, it's hands-on. So I listened to my wife with her gut feeling. I was like, okay, she says it, that's it, you know? Yeah.
00:23:34
Speaker
It's good or bad sometimes, you know? just so it's yeah But yeah, we do have that really good intuition. So. Yes. And, but that's the thing is just having that conversation really it starts with a conversation.
00:23:49
Speaker
Don't commit right away. If you're not sure, because ah some people like we'll say, I'm only opening a small, so, so, and so retirement account. Yeah. But you know,
00:24:01
Speaker
Think about it, it's still part of your plan. It's still going affect you in the longterm. So have those conversations because when you start a business, right, business can grow, but business can go the other way too as well.
00:24:16
Speaker
And so always having conversations with great like-minded people, or more importantly, that one that can enhance you and ask questions, ask lots of questions.
00:24:28
Speaker
I'd rather have somebody ask lots of questions than just looking at his mouth and then not do anything, right? me What about, um and I know, you know i don't know, there's a lot of conflicting advice out there. um You know, there's the Dave Ramsey's, they say one thing, Robert Kiyosaki says another, you know, there's every financial guru has a different approach. approach
00:24:58
Speaker
How do we cut through that noise to figure out what will actually work for us? Well, so that's that's a very, very good question because Dave Ramsey, Robert Kiyosaki are really pillars in the financial service industry, right? They do provide great advice.
00:25:18
Speaker
Now, the question you should have to ask yourself is, does their advice fit my current situation? Right?
00:25:29
Speaker
So looking at the target markets as well, um they Dave Ramsey talks about, I guess, buy term and that's the difference, right?
00:25:41
Speaker
know And I really, let me take a step back. I would look look at it differently. that so let's take a look at I joined a class where they have this thing called the income game.
00:25:55
Speaker
Right. So if you're earning, let's just say. Fifty thousand dollars a year, the next person is earning. One hundred thousand dollars a year and next person earning two hundred thousand dollars a year.
00:26:09
Speaker
Should you all get the same advice? No. Right. So that's the key. So obviously, depending on the income and that your situation that you're in, your advice would be very, you very different than the next person.
00:26:26
Speaker
Now, a Dave Ramsey method may work for them or may not, depending on the situation that they're in, right? So, but first it's just really what they need to do is really talk to a financial professional and just really have a clear picture of where they're at today. And if you understand where that clear picture where you're at today, which then what could what could that do is that it could help you visualize where you want to be.
00:26:56
Speaker
And then once you have that vision in place, then you kind of know which direction you want to go to. Do you need to put more in the savings? You need to more insurance. You need to do more investments or whatever it is that you need to do. Once you have that, then you have clarity.
00:27:17
Speaker
But I think we kind of have to go back instead of listening to what to do, we should look at where do we stand today? And what is our vision?
00:27:31
Speaker
Then we can put the things together. Yes, yes. um i appreciate about that balanced perspective because um i think there's a wisdom in different approaches. And you're right, one size doesn't fit all, especially for especially for women building non-traditional businesses. Yeah. So I don't know if you're able to share this or not, but we would, would love to hear, you know, um about some client transform transformations, obviously without breaking
Debt Relief and Cash Flow Solutions
00:28:03
Speaker
confidentiality. Can you tell us about someone who came to you feeling overwhelmed, scattered, and what their journey looked like and what changed for them?
00:28:12
Speaker
So I had a case. So if I can give you one, I had a case a couple of years ago. um this is during COVID. right. And oftentimes when faced with a problem, what they do is they just look at that one scenario that they're facing as opposed to looking at their big picture.
00:28:37
Speaker
So the issue with them is they have a lot of debts. All right. They have a lot of debts and they're looking for ways to minimize their expenses. And on top of that, they need a new car.
00:28:52
Speaker
And so what I did is I put together different professionals to talk to them about how to minimize that debt and get their life back. Because what's happening is that all of their monthly income is just going into their, know, they're just paying up. That's ah pretty much in the end, they're at zero.
00:29:14
Speaker
So I had them talk to different professionals, lender, and I can sell just to kind of see, okay, which strategy would make sense for them, right?
00:29:25
Speaker
So their interest rates on their debts at that time were about 25, 30%, right? The mortgage rates that they have was about, there was two.
00:29:41
Speaker
But what it does is that it's creating a lot of stress in their life. And so then and the only place that they have money on is in the value of their house is the equity.
00:29:55
Speaker
All of the rest of their money is tied into their retirement accounts. Right. obviously if they take money out of the retirement account, they have to take taxes and penalties.
00:30:08
Speaker
Right. And so they, what they did is they did a cash out refi to pay off all of that, that debts, right.
00:30:19
Speaker
Their monthly payment. went up, but every single month they're over a thousand dollars of positive cash flow. You know, that way they can put more money into a savings account. They can put more into the insurance. They can do more of the things that they needed to create that plan. and rates are eventually going to have to go down. Right.
00:30:41
Speaker
But they're going to have to refinance again when the rates come down to lower that monthly payment. But to give them that cash flow, it kind of puts a lot of relief in their life at that time, you know, because they eliminated all of that. So sometimes that might be the the best approach, right? Another scenario is trying to figure out how can we create income so that way they don't have to worry about creating their monthly, paying their monthly bills. So we created a strategy where we set aside x amount of dollars to make sure
00:31:17
Speaker
they get, they get to pay their monthly bills. Meaning this money is designed so that way all their monthly bills are paid for. They don't have to worry about it. It just is inflation.
00:31:28
Speaker
Then we set aside the other portion just to help them grow. So they have more money to spend and create more, and more memories for the people that they love, you know? So different strategies for different cases, but is that the right fit for everybody? no I would still suggest you guys talk to your financial professional and just see which one makes sense for you because every situation is different.
00:31:57
Speaker
Yes. Yes. And, and what I'm hearing is that it's not just numbers. It's, it's, it's a more about peace of mind and the ability to make decisions from a place of strength rather than fear.
00:32:11
Speaker
Correct. Yes. um I love, love, love, love that love that. Now, what if, what if, okay, let's say, let's say one of your, somebody comes to you and they're saying they're going file bankruptcy. How do you get them back on track after either they follow through with that or they don't do that? What would you suggest based on that scenario?
00:32:32
Speaker
i It's funny you mentioned that. I just had somebody to call me you regarding that. not Yeah. Oh, wow. Okay. The the conversation that we have is really, i said the same thing.
00:32:48
Speaker
Let's analyze what you have today. right Let's take a look at your big picture. All right. And so, because I can introduce you to a bankruptcy lawyer. I can introduce you to all of those things. Right. So we have to look at how everything impacts your financial life.
00:33:08
Speaker
And what I realized is a lot of us are married to our assets. We have this emotional attachment to assets. All right.
00:33:19
Speaker
So, but without income, can we maintain those assets? All right. Biggest, biggest question. Right. And so as I was talking to them, I just told them, let's first understand your situation.
00:33:39
Speaker
and let's give you options, right? You can talk to a bankruptcy attorney. You can go file chapter seven or chapter 13, which does affect your credit history for the next seven to 10 years, depending on your situation, right? Or let's understand your big picture of what you have.
00:33:58
Speaker
You may have to forego some of the assets and change your lifestyle. And realized that this person has that emotional attachment.
00:34:11
Speaker
And I said, well, as much as you'd like it, are you prepared to have that on your record for the next seven to 10 years, which makes it harder for you to borrow money to do the things that you want to do?
00:34:28
Speaker
or you can just eliminate some of these assets, pay some of these cards and start over from scratch. Yeah. And so that's a conversation that debt that you and your husband have to actually talk about, make a decision. And then you need to talk to, to get legal advice, what are the ramifications or so, if you want to go on that approach or versus this approach. I always suggest to talk to a professional and see hey if if that's the right if that's the right move.
00:35:09
Speaker
i Yeah. know that's That's good. um All right. I have a couple of um rapid fire questions I wanted to ask you
Rapid Fire Financial Advice
00:35:18
Speaker
too. So I'm gonna ask you a question. and Give me whatever comes to your mind, your quick take on it. All right. So um I'm 35. I'm making 200 K for my business. There's no retirement savings. Where do I start?
00:35:32
Speaker
ah Talk to your CPA and financial advisor, right? Because If you are self-employed, there's different types of retirement accounts that you can take advantage of and looking at different ways to make sure that your income is protected.
00:35:48
Speaker
So that's the first step, right? Love that. Okay. Should i pay off my house or invest the extra money? um I always say it depends on the person, right? But I would suggest to talk to your financial advisor.
00:36:06
Speaker
and talk about, discuss the difference between what you call compounding versus amortization and do the math, look at the math, see what is the potential opportunity cost. You gotta put that money aside.
00:36:23
Speaker
What would have i grown to for X number of years versus paying off the property. you know So always talk to that financial profile and they'll give you the math. And then once you see the numbers,
00:36:36
Speaker
you decide if that's the direction that you want to do. That makes so much sense. That's good advice. um Especially if people are, you know, you're bringing in significant money. So um I also, how much life insurance do, does someone actually need?
00:36:59
Speaker
Everyone has a rule of thumb. So they said for every, The base, they say, is a million, but it's really depending on people. I look at it as based on human life economic value.
00:37:12
Speaker
And that's what I was taught. And really just looking at the base is really your annual income times how many more years you have to work, um adjusted for inflation and lifestyle. So it could be in the millions. Majority of us are underinsured because of the fact that a lot of people don't really understand how insurance works.
00:37:38
Speaker
And it's actually one of the most powerful tools in financial planning. And it's really a tool that people, if they take the time to understand it, it could really help them in so much ways that they could not even imagine.
00:37:53
Speaker
But in terms of life insurance, there was a rule made is for every, uh, how would you say this? It's something with 50,000, I believe, but i me personally, it's just human life, economic value. I always tell people, like get as much as you can until the insurance company tells you no.
00:38:13
Speaker
Yes, yes. As much as they'll give you. Take it. Yes, and they're not gonna give you, like it's not like you go to supermarket and say, hey, I wanna buy $100 million debt benefits.
00:38:28
Speaker
They're not gonna do that. They're gonna look at your, financials and things of that nature, your income, all those. So, um, yeah, get as much as you can until they say, nope, you can't have it. anymore and Yes. Yes. Okay. So what would you say my business income fluctuates wildly? How do I plan for that? It's a good question. Um, I would recommend first to buy that book called profits first oh by, uh, Michael Kowalski and, uh,
00:39:00
Speaker
That is ah one of the best books to read because it really teaches us how to position certain dollar amounts. Right. So where we will give us a new habit on paying ourself first, right?
00:39:14
Speaker
Because a lot of us, us business owners, we oftentimes take our business fluctuates a lot, but also we think that our business is our retirement account. It's our retirement plan. And so that's really,
00:39:27
Speaker
tough thing. It's not easy because of the fact that we're so dependent on that, that income. But if we create a habit of, let's just say, Hey, we set aside a certain percentage just for our savings for the future, a certain set percentage to pay for our taxes, then we don't have to worry about, Hey, Hey, we have this huge tax bill at the end of the year, or at least have some sort of, um, retirement stepped up, saved up. And really, and then that way we can also, um,
00:39:55
Speaker
control our expenses.
00:39:59
Speaker
Yeah, and that makes sense. Yeah. and I would like to say, you know, ah my big thing that's helped for me is tracking your subscriptions, because if you're not aware of how many subscriptions you have, even for business, like they're coming out and you're not, maybe you're not paying attention. You should be paying attention. Yes, I agree. I agree. No, you should be. And then we don't we all do that. I know I have some subscriptions that I I'm still paying, but I'm not using.
00:40:24
Speaker
and Yes. Yes. Yeah. And it happens. And I ask my kids, hey, are you guys using this? And they say, yes, they're using it. And then they use it once a month.
00:40:35
Speaker
and Yeah, that's not worth it. It's not worth it. It is. It's not worth it. But but yeah, so that's one of the profits first. Yeah, one of the good books to assess that. But really create a budget as well.
00:40:52
Speaker
and make it turn it into how would you say that a habit I would say so get to know know get to know your your numbers right but for business owners it's so easy for us to get swayed to spend because of the whole marketing and the things that we want to grow so we kind of go sometimes so we just kind of have that's why we need other people to protect ourselves right yeah Yes, yes. I've learned the hard way. yes yeah. But it has to it has to make it has to make sense. It has to make sense.
Entrepreneurial Financial Mistakes
00:41:29
Speaker
What would you say is the biggest money mistake you see entrepreneurs make? Oh.
00:41:37
Speaker
Let's see.
00:41:41
Speaker
The DIYs. Yeah, we all make that. Yeah. Yeah. we Some of us are still making that, all right? Because we enjoy doing it or so.
00:41:54
Speaker
ah But really, it's ah
00:42:00
Speaker
it's not having the right people in their team. Yeah. I would think so. um That's what good. Okay. yeah um If someone is listening to this and thinking, okay, I need to get my financial house in order, but I don't even know where to start. What's the first step they should take this week?
00:42:25
Speaker
The first thing that they need to do is take a look at the list of their assets, right? Contact a financial professional and just kind of say, hey, can you help me see a clear picture of where I'm currently standing.
00:42:43
Speaker
and the reason why I say that is because oftentimes when I talk to people, they would come to me and say, Hey, this is what I have. What can you do for me? They show me one type of account or would more multiple accounts, but did the same type of account. Right.
00:43:02
Speaker
And the reason why That's important is because now you're going have a conversation with a professional to discuss what is the purpose of this funds? What's your goal? What is it that you want to get out of this? And does it align with you in the longterm?
00:43:18
Speaker
Does it affect your taxes today? Does it affect your taxes in the future? How is it going to affect not just on taxes, but the overall picture with you and your family? So there's more to it than just, Hey, I can get X amount of return on this strategy, right? Which,
00:43:35
Speaker
They can probably get it. But then again, that's only chasing returns. Right. Right. So, so what about the other side?
00:43:48
Speaker
What's, what's really important in protecting your wheelhouse? Hmm. Hmm.
00:43:57
Speaker
So you if they come to you and their entire, let's just say their entire financial house is a disaster and they have like 15 credit cards and maybe four or five bank accounts, can you help them fix it? Yeah, we can we can definitely have a conversation and take a look at it.
00:44:15
Speaker
And the process that we would go through really is the first thing is that we're going to have just really a conversation. i That's the first meeting. It's really just all about them.
00:44:26
Speaker
understanding who they are, what keeps them up at night, how do they feel about money and really what's important to them. oh and and And the reason why i asked that, it just, it just gave me a flashback.
00:44:39
Speaker
Right. I was talking to a couple and ah remember I was talking to this couple, they were having a great time having a conversation. both of them were sitting really tall high in their chair. As I was asking these questions of what's going on with their financial picture, I see both of them kind of slouching slowly until to the point that the wife was crying.
00:45:02
Speaker
oh Right? And so the one thing why i asked those questions because I wanted to make sure that husband and wife are on the same page.
00:45:15
Speaker
That's very important because oftentimes,
00:45:20
Speaker
A husband wants to go in one direction. The spouse wants to go in the other direction. But this planning for our retirement for our future is both person's journey. It's not one person's journey.
00:45:33
Speaker
So I have to make sure that they're both on this boat rowing in the same direction. So that's the first thing that I did is to make sure that their visions and goals are aligned.
00:45:46
Speaker
i So that way, when planning for the future, there's harmony in there. that is That is really, really good because I do know some people I've talked to, because we do kind of, so when when I'm working with some clients, we do go into money when it comes to budgeting and stuff like that. And there's things that sometimes they don't even speak and communicate with their spouse about the finances, but that also explains a lot. So if you get both of them into the room together and have that conversation, so much more can be accomplished. Yes.
00:46:16
Speaker
Together. yes And it was crazy because they were arguing in front of me. oh Then when I left, I got a phone call and he said, we need to take care of this right away. You know, so it's not always fun, but we have to have these conversations to bring those, you know, those tough conversations out because we're dealing with our lives, our family, right? And oh yeah it's worth fighting for.
00:46:44
Speaker
And so, Things go hard, right? But, you know, things are tough. But you know what? That's okay. You can, you know, you can recover.
00:46:55
Speaker
But we just have to change the approach, the mindset, and just really look at what's going on, right? Right, right. So we can be marriage counselors too at times. You're like, side job, didn't realize we were doing this. Yeah, yeah. But it it was the it was the best part. Yeah. I remember having somebody came up to me and he's she's like, I don't know how I'm going to retire.
00:47:20
Speaker
My husband thought that she they have everything, but apparently they don't. And she she's so high strung.
Retirement Planning and Asset Conversion
00:47:27
Speaker
And so I just told her, at least you have assets.
00:47:32
Speaker
They're based in California. So I really want you to start thinking about where and when are you looking to retire? Because California is very expensive. But if you go somewhere else, you know, things will be different.
00:47:48
Speaker
Right. And really understanding where her income sources are coming from. So after that conversation, all that rocks off her shoulder, just kind of like she took it off because there is a solution.
00:48:01
Speaker
but she's But she's just not seeing what that solution is because she's so focused on, I don't have enough. But she's gotten so far that she at least, so I told her at least you have an asset that you can convert to cash if you need it to.
00:48:18
Speaker
So now it's just how do we create and which professional can help you accomplish that? Go. okay so ah So not only are you're helping them with their finances, you're saving their marriage too. So yeah. You know, and then, you know, we start, we were talking about legacy before.
Teaching Kids About Finances
00:48:42
Speaker
How soon is too soon to start talking to your children about, you know, their financial planning and wealth building? Like, how would you go about that? i on it I wish that we learned it when we were in school.
00:48:57
Speaker
Yes. Sometimes schools don't do this. I have to learn it the hard way. I have to learn it the hard way. I spent everything because, you know, me being young and living in LA all by myself, you know, I was having a good time.
00:49:13
Speaker
And really, I have to learn it the hard way myself, right? So i i there are programs out there that can help you educate our kids about money and finances at such a young age. And what I realized is that when you look at families that have different income variations, they teach their kids at such a young age on how to manage their money. Well, some of them take it, some of them don't, right? But it's nice to have that guidance and education. Some financial institutions, when you go in there, they will actually provide materials for you. Some, they will actually go to school and give you basic tips on savings, things of that nature.
00:49:54
Speaker
there is an organization in florida it's called pem life that you can actually sign up i think it's like 100 or 150 dollars it's like like a three-month course where the kids can go in and really understand about finance and and money oh wow i did not know about that and i'm in i'm in florida so yes good to know yes yes yeah so i like those uh as you know i read a lot of books i you know i I enjoy reading things about, uh, uh, you know, finance money and, ah last book that I have, I'm still reading is, uh, Sohail Bloom's, uh, The Five Types of Wealth, oh which is actually about time, social, uh, where she says the five types of wealth is, uh, time, social, mental, physical, and financial. And it's interesting when you really look at that, it kind of relates to each other. Each one is connected to each other.
00:50:52
Speaker
Mm. and so yeah oh that's good um and if i'll have these if you guys didn't catch the names of the books i'll have them in the show notes too recommendations for you guys um but if so if our listeners want to work with you or learn more about your approach where should they go um They can reach out to me.
00:51:16
Speaker
i can You can email me at Cairo at elevated cap ADV or my our number 951-330-4900. We can have a conversation. We do offer a complimentary strategy session. And so just have a conversation. and That's where it starts.
00:51:35
Speaker
Good, good. And I'll have this in the show notes too for you. so if you're listening and you're not able to write that down, I've got it for you in the show notes. So before we wrap up, I want to ask you a one more question. What do you want the women listening to this to remember most? And if they forget everything else we talked about today, what's the one thing you want them to hold on So to me, I'm a father of two girls, right?
00:52:02
Speaker
And so this is what I tell my kids. all the time when they get older. Control the gold. Why I say that is because whoever has the gold makes the rules.
00:52:14
Speaker
move I that. Yes, and me being seeing that is because i've I've had family members where they're single parent. It's hard to raise a child on their own and really work full time. but They're able to get out of that and make their life so much better, right? And the reason why I say that is because our younger ones can make mistakes, but understand that life is not the end, right? But if you control the goal, you make the rules, then you understand where everything goes, right? So that's what I always tell my kids, right? Because women, based on on looking at my my kids, It's like, if something happens to my daughter, that means god forgive me she gets pregnant, right? That means she may miss out on school. She may miss out on opportunities and things. They have a lot more to lose.
00:53:08
Speaker
Right. So that's why. That's the way I tell my daughters, you know. Could be wrong. Could be, well, I don't know. But that's kind of like what I say is to always find a way to make sure that they're protected income, you know.
00:53:22
Speaker
ah Great, great, great tips. I appreciate it. And mamas, here's what I want you to take away from this conversation. you are not behind. You are not broken. You are absolutely capable of building the kind of wealth that aligns with your values and protects what matters most to you. So the question isn't whether you can do this, it's whether you're ready to start. And if you are, take those first steps that Cairo mentioned and do it this week. Your future self will thank you. And thank you so much, Cairo, for being here. Thank you for sharing your wisdom with us today. And thank you for listening to Mamas Who Lead. If this episode episode resonated with you, please share it with another mom who needs to hear this message too. Until next time keep leading, keep growing, and keep believing in what's possible.
00:54:12
Speaker
This podcast has been prepared for educational marketing purposes only. The information in this podcast and video is general in nature, does not constitute personalized investment advice, and does not provide a complete analysis of the subjects discussed. All investments involve risk and different types of investments involve varying degrees of risk. There can be no assurance that any specific investment strategy will be profitable or suitable to you. Additionally, although information presented in this video is believed to be factual and up to date, we do not guarantee its accuracy. You should consult an attorney or tax professional regarding your specific legal or tax situation. and should consult a professional advisor before implementing any of the strategies mentioned in this video. Investment advisories services are offered through Elevated Capital Advisors, LLC, an SEC registered investment advisor affiliated with Elevated Retirement Group, LLC. Registration as an investment advisor does not constitute an endorsement
00:55:16
Speaker
of Elevated Capital Advisors LLC by securities regulators, or does it indicate that the firm has attained a particular level of skill or ability? Insurance advice and products may be offered by a third-party insurance producer, which may be affiliated with Elevated Retirement LLC and Elevated Capital Advisors LLC.
00:55:39
Speaker
Mamasu Lead are not clients of Elevated Capital Advisors. They have not received any cash compensation for their assistance in preparing and hosting this podcast or for providing any endorsement contained in this podcast.
Empowering Women Leaders
00:55:55
Speaker
You've been listening to Mamas Who Lead with Laura Carafino. Thank you for joining us on this journey today. Each episode, each story, and every piece of advice we share is a step towards building a community of empowered, resilient, and inspiring Mama leaders, just like you.
00:56:13
Speaker
Remember leadership isn't just about the title or the workplace. It's about how we navigate our lives, uplift those around us and pave the way for future generations. As we close today's episode, I encourage you to carry forward the insights and inspiration you've gained, apply them to your life, share them with your tribe and continue to lead with heart and purpose.
00:56:35
Speaker
For more empowering stories, strategies, and support, make sure you subscribe to Mamas Who Lead on your favorite podcast platform. And don't forget to follow us on social media for behind the scenes content, community discussions, and much more. Until we meet again, keep embracing your unique journey of leadership and motherhood. You are capable, you are powerful, and you are exactly where you're meant to be.
00:57:00
Speaker
Lead on Mamas.