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Money Mindset - Part III
66 Plays4 months ago
In this insightful episode of the Uncommon Wealth Podcast we delve into essential financial topics, focused on the mindset and realities guiding financial success. As we close our series on money mindset, we explore some commonly overlooked yet crucial aspects of financial planning, emphasizing the inherent costs involved and the psychological hurdles that many face.
The episode underscores two main points: "Nothing is Free" in the financial realm and the universally shared human flaw of seeking shortcuts and leaning towards fear-based thinking. Throughout the discussion, Arron and I shed light on the hidden costs of seemingly free financial services, the importance of recognizing these, and leveraging our advice for truly beneficial financial planning. We also explore the intrinsic human tendency towards fear-driven decisions and how maintaining a balanced, informed perspective is key to navigating the financial landscape effectively.
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Transcript
Introduction to the Uncommon Wealth Podcast
00:00:00
Speaker
Everyone dreams of living an uncommon life. And the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast. We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
Meet Your Hosts: Philip Ramsey and Aaron Kramer
00:00:27
Speaker
Hello and welcome everybody to another episode of the Uncommon Wealth Podcast, where I'm your host, Philip Ramsey, and I'm with the one and only Aaron Kramer. Holy cow. Oh my gosh. It's in studio, which you know it's our favorite. Yeah. We like to do that. It's been a little while. It has. It has.
Money Mindset Series Overview
00:00:45
Speaker
We've been talking about this whole money mindset. Yeah. This whole thing. And we this is our last one. I feel like it's been good for me just to kind of walk through all the different topics. I love this. This is a good reminder. It is. Okay. Um, for those who are just tuned in because you haven't tuned in before, welcome. This is a fun show. I like it. Yeah. We try to give you tips, trips and ideas, or we interview people that are living an uncommon life. So, uh, entertaining way and entertaining. Well, is it?
00:01:13
Speaker
I don't know. It is to us. It is to us. Hopefully it is to you. I don't know. If not, then I'm sorry. So let's jump into this. It probably won't be a long, long podcast because we only really have two topics, but the second topic we're going to talk about has like really detailed. Yeah. Like sub kind of. A little bit more depth. That's right. All right.
00:01:35
Speaker
Let's just
The Financial World: Truths and Misconceptions
00:01:36
Speaker
talk about the first one. Nothing's free. Nothing's free in the financial world. And if you think it is, you're going to be sorely mistaken. ye That being said, I do feel like there are people that try to give a lot of value and they don't necessarily need to get paid, but at the end of the day, nothing's free, right? Nothing's free. probably they've got that wisdom by spending a lot of money. And if you want that wisdom out of them, it's probably going to be the most beneficial for you to pay money. yeah um So there's other advisors out there that don't charge for financial plan, for example. ye And what they're trying to do is then sell you probably a product-tized
00:02:17
Speaker
investment, maybe it's life insurance, maybe it's an annuity, but it's probably going to be like an upfront sale for them. So you just got to be very leery. um We are kind of opposite where we try to do customized financial plans, but you have to pay for it. And then at the end of that, you guys can take all that wisdom and knowledge and you can go somewhere else. ah But I would just say a good rule of thought and it does have to be financial. We talked about that, but It's just nothing's free. Nothing's free. And I think that's one of those things you gotta to like make sure you don't get tricked on this, because there's a lot of people out there. I think there's a lot of people out there that call themselves financial advisors or financial planners. yep And really, they're just insurance salesmen.
Commissions and Hidden Fees in Insurance
00:02:54
Speaker
Yes. um And they'll give you this i big spiel about an insurance policy and how there's no fees or anything in it. Yes, there is. That's why, like for instance, we just, I'm not gonna say products, but like
00:03:09
Speaker
They're all, no, there's no fees ongoing. No, there is. That's why they had they're locking it up. yep And that advisor or slash insurance agent got a huge fat commission. yep They had to pay that advisor a commission for you to do that. And so now you can't touch it. for five, eight, whatever the 10, 12 years. So there is fees in there. There's apps. um And then also every insurance policy has to have a death benefit yep towards it. So then those again have fees. That's true.
401k Plans and Transparency Issues
00:03:40
Speaker
So nothing is free. Here's another thing too, that I think a lot of people like just not think about is like my formal case free.
00:03:46
Speaker
Yeah, it's not. It's definitely not. like There is fees in there. You have your plan fee, your administration fee, you have your fund fees. you have like There's fees in there. And there and the DOL never got to the 401ks. It got to our stuff, like right advisors. But it never made it as far to get into like the 401ks. So it's kind of hard to like find a lot of fees. Oh, man. It's a pain in the butt. It really is. Whereas if you're working with an advisor, um Especially one that's a fiduciary, like we are. like you like well We have to show you. right like I know we go overboard in showing you like things that we don't have to, but we do. But like they don't have to show you a 401k. And if you request it, but you gotta know how to request it. right
00:04:29
Speaker
And it's kind of, it's lost the sauce, if you will. Yeah. It's way down there. Yup. And then I'm not going to show you the fun fees, like how much those are. You got to look those up yourself or have an advisor do it. So again, that's not free. They're good. No, I'm not downing for them. Okay. They're great tools. I just, You're just saying. Nothing's free. Here's another thing too, that if you're like, well, my financial advisors does a financial planning fee you and they don't have to work with me. And a lot of those will have like a, an asset center management that they'll have to. Minimum. Yeah. A minimum like, Oh, sorry. You have to have $250,000 for us to do a planning fee. And so it just never really sat well with Aaron and I have like, okay, you have to have such and such amount of money before we can work with you. That didn't work. So we just had to create a different business model. But also like we,
00:05:15
Speaker
don't charge our investment portfolio fee is much less than those people that include that in there. dude It's ridiculous how low it is. And my peers always are like, Philip, the amount of service that you give your clients, like you could almost double your price of assets under management. And I'm like, I just can't do it. Like that's just too common. No, well that looks like, again, I still stand behind this whole, if our clients win, we win.
The Value of Free Advice in Business
00:05:43
Speaker
Yes. Fees matter, fees are drag. It really does. Yeah. And that philosophy has paid off dividends. Yeah. In our practice, time and time again. Yep. So even if like we give our time away for free, let's say we take somebody to coffee or lunch or whatever, we have a Zoom meeting with them.
00:06:00
Speaker
At the end of the day, like there is value that we're giving. yeah And then we believe that because we're giving so much value, eventually they're going to come around. And I'm telling you nine times out of 10, they do because we really do want to give somebody enough track to be able to run on from the, run their own uncommon plan by themselves. Now, at the end of the day, they're kind of like, Oh, you're kind of fun to hang out with. Let's, let's run together, yeah which we appreciate. Yeah, and there's sometimes, it's rare, but like sometimes like I had my client, like or a prospect, great, great prospect. Met with them and showed them that, like man, you should be getting a lot more from your current advisor. So I started hunting, I gotta be in the hunt, was super privileged to do that. yeah At the end of the day, like our firm wasn't what what they were looking for, but like i mean like it was great. like Me and my wife went on a double date afterwards. They told me no. like I still loved them to death. like right They did something amazing for them. Right, and we weren't a chameleon.
00:06:52
Speaker
They just decide like oh, this is what we're looking out for over here a little bit better than what we're looking for instead of what you're awesome Yeah, like that's great. It's amazing. I'm so happy I got to be a part of it and to help them make that great move, right? and So I think that attitude too is helpful So we're not just trying it out there nickel and dime people but also to like there's a cost that we charge in order for really to engage Yeah, things we don't details that we've ever That's the other thing too, like I will tell you, from my own experience in Phillips, when you're selling something that's a commission-based product, you gotta think that that's done. ah You get that commission and you're done. yes So where's your next income paycheck coming from? You gotta go find it. You gotta go get some more people. Yeah, and I learned this early on in my life, or my career, and I was like, I can't do this. like I signed up to help these people. They signed up for me to help them. I wanna stop and be able to help them. So again, that planning fee is like, no, you've paid me and yeah I have money coming in to feed my family and put food on the table. like No, I'm here. Let's do this. It's not like, oh, here you go, bye. But also like when we're talking about nothing's free to change the subject a little bit, it's like,
00:07:57
Speaker
Also think about politics, like not like our government. like Nothing's free. like Think about where your taxes go. There's a ripple effect to everything. Yes, you're paying for it. you know So if you're listening to this podcast, you don't know it. Our politicians, we pay them in our taxes. So it's like nothing's free. Just know that.
Understanding Political and Government Costs
00:08:15
Speaker
It comes somewhere. Yeah, so just think about that, and also I like to do this little exercise, follow the money. Yeah, follow the money. I was a pharmaceutical rep for a while, and I was like, wait a second. like They're for-profit company. They're teaching us and pouring us to into us training for us to go out and then talk to doctors. Well, follow the money. like yeah Think about the advice they're giving us, because they want are you know they want us to drink the Kool-Aid. Yep. I'll just say that.
00:08:40
Speaker
And so, when we go out to talk to people, there might be a different perspective, and it just might not be the one that you were taught. So, that's interesting. um but ah that Follow the money, just follow the money. all right because there's always like We're in a very weird time in the world. and Nothing's free. So that's like, if you follow where the money is going, you'll see who's benefiting from it. And then you know, like the intentions behind it.
Flaws, AI Influence, and Self-Perception
00:09:06
Speaker
That's right. Okay. The next thing is that we're all flawed and I love this. I'll talk about this all day long. We all have like our own preconceived notions. We all have like our own beliefs that are right. And then the other scary thing about, we have a couple sub topics in this, but we'll just talk about we all are flawed. yeah So that's basically the overarching theme of this. um But we believe we're right. like I believe I'm right. And the other scary part about that specific thing is that when we're scrolling through our whatever you're scrolling through, the AIs or whatever, they know exact algorithms we'll say, they know exactly what we want to be reading and what we don't want to be reading. yeah Which further entrenches us to our own flawed thought. Yeah, right. For example,
00:09:50
Speaker
This is a dumb example, but let's say I think underwater basket weaving, I made that up by the way, is the best sport ever. Well, guess what I'm going to be reading more and more of, like how popular underwater basket weaving is becoming and how it's the newest thing. and yes And so you get further and further inside, like I'm right, I'm right. And like how damaging that can be for when I come out and, you know, live in the real world. yeah Like you haven't heard of underwater basket weaving, like everybody has heard this. What a dumb example. but You get it, we're flawed. We're so flawed. I mean, let the go ah keep going with that line, and I'll just make it more even heated and topic. like yeah ah And I'm going back into the politics thing, like me and my wife, like we kind of have a different view on things in the whole political world. Not extremely, we're pretty aligned in a lot of things, but there's we definitely keep, we teeter-tot ourselves out. Yeah, and that's good. And I remember this a couple of years ago or ah probably more than a couple of years ago, but we're sitting in bed and we're going through and we're arguing about something. I was like, no, I saw this video explaining this. She's like, no, I saw this. And we both pulled up our videos and like, wow, same topic. Different is like, oh my gosh, point different viewpoints.
00:11:01
Speaker
Clearly our algorithms were just feeding into our beliefs, and it was just like, wow. And both of us were like, we're spending too much time on our social media. like Because it was influencing our thought process. And we all want to be right. Nobody likes to be wrong. Nobody likes to be wrong. So we are so flawed to begin with. and if you're i mean I know it's such an easy thing to go with, but if you are a believer, yeah like we're told that we're flawed. Yeah, right. and don't like in I think the most dangerous part about this is, is like oh yeah, I'm flawed. It's like, hold on, like are you flawed? Then how much pride comes with it? Because like you can get overly prideful, like, no, I'm right. I'm smarter than you. it's like right Maybe. ah you right A lot of people are smarter than me. And I love hearing their insights on things, but it's like, but do you have the time to research something? Like, because that's what I do all day, you know, like for certain subjects, like topics, like, but it's like,
00:11:58
Speaker
I don't know, all you'll like
Broadening Financial Perspectives
00:12:00
Speaker
this and see it show you how flawed, like, so we're so flawed. My thing to counteract that is like, I have my goal, you know, to read 100 financial books. Oh yeah. You know, dyslexic error and reading 100 books, that's fun, it's a quick journey. But. Not easy books either. No, but like then, the fun thing that's come through that was, is like, is a lot of books are saying the same things, you know, investment books. But did they, on my journey, because I'm, I think about halfway, um You got to get other schools of thought. Oh, man. Yeah, you can't just stay one track on that deal. Yeah, you can't. There's not enough books like just on one investment philosophy or one money philosophy. You have to start learning other money philosophies like other people think. And you're like, oh, this is amazing. Because you get so like, oh, this is the way it is. you know And then they hear other schools of thought on something. You're like, oh, wow. So you really get to force yourself
00:12:51
Speaker
to hear somebody else's like school thought. But then, when I experienced it, I was like, no, this is the way you do it. And then you read a book and you're like, makes you question. Okay, so then here we go. The next thing, you led me right into the next thing. I think we have tendencies to believe anything. I know I do. Okay, so we're flawed. So like if I'm talking to somebody, I'm like, oh yeah, like I don't know if it's empathy or what. But I'm like, I get it. I get where you're coming from and I kind of think that's right. Yeah. we're we We have a tendency to believe whatever we're in front of and what we want to hear. That's right. That's right. And, and that I think is scary. Yes. That's how scammers get scammed. Yes. Um, so, okay. So we, we have a tendency to believe anything and we want like the silver bullet, right? Yes.
00:13:38
Speaker
So it's kind of like where it falls into this. That's where flawed and then we have like this, we have one to circumvent or we want to like cut corners. Yeah. Because we want to try to get things quicker. Yep. That could be our society or it could just be how we're humanly. Oh yeah. We just want the easy path or so like, why can't we get there? Other people have gotten there. What's the trick of how they got there? That's right. That's right. And we see this a lot in our industry. Like somebody always wants like all this new thing. This is like all the rich are doing. Right. and it's Nothing. I saw this one lady, she was talking about cryptocurrency was on my social whatever. Yeah. And she was like, I guarantee you that I'll make you money. And I was like, Oh my goodness. Like instantly triggered since I'm licensed. Yes. Like she isn't licensed. Yeah.
00:14:24
Speaker
And like, what a bold move. right Like, bold. And she was like, I'm pulling in six figures, and you know, living the life. And I'm like, she's gotta be getting paid for all the people that sign up. And that's probably why she's making all this money. I'm not saying that she's not, I don't know. But there's no way I can guarantee anybody. make You can't guarantee anybody. I think it's so scary. Like, I talked to somebody ah about this one time, because they're trying to hit me up, which I think these crypto people, or what is it called, like crypto, I mean, no oh anyways, they heat up as an advisor. It's like, well, I'm licensed. Do you have to get any license to help people with curtains? Like, no. I'm like, yeah that's scary. Yeah, right. Like, you don't, I think that's probably the days coming when that is not going to be the case. Yeah. But everybody wants a silver bullet. like And the thing is, is like for everyone that's listening out there again, this is like, everybody knows this, but I want to say it.
00:15:15
Speaker
is if there was a silver bullet, like cryptocurrency, people that made all their money on crypto, yeahp guess what? If you've already heard about it, people making a ton of money on it, too it's it's too late, it's over. it's like um Just like if you got into like Apple at the very beginning, everyone that made a bunch of money on Apple, like again, it's over. ain' done it As soon as you hear about it, it's over. yeah yeah right So it's just interesting that I think that's our tendency is just to believe what's in front of us, believe I'm a believing person, I'll believe you. And so it's kind of nice to surround yourself with people that.
00:15:49
Speaker
One, have a different perspective, and then two, are not necessarily seeing what you're seeing. Am I seeing this right? And then they can be like, hmm, maybe, but, and then kind of give you that count. Yeah, but do that do your homework, do ask questions. I did learn, like, I know that you and I are like this, and this is fun, to go into this, like, believing everything, because you gotta get cynical in life a little bit. Mm-hmm. um Ask a lot of questions, and if there's certain people out there that'll be telling you this like silver bullet like to get you to do the same, great story. You start asking more and more questions, and they gotta keep answering harder and harder questions. They get frustrated and get mad. Yeah,
The Illusion of Quick Financial Solutions
00:16:23
Speaker
because you're not you're not agreeing with America. You're not agreeing with them or they're feeling threatened. It's like, but if it is a good idea, i yeah and you keep asking questions they don't know, you'll see their excitement go up even further. Because you're like, oh, I don't know. i don't Let me find out. That's a great question. I need to know. I've actually seen you use that tactic yeah to people that I've known.
00:16:41
Speaker
It's fascinating. and And they did. They did get very frustrated and flustered. Oh, that's good. That's good. I appreciate that little antidote. that's All right. Let's go to the next thing, which is kind of like we're flawed, but we are more attracted to thinking of fear mindset or like the market's going to go down. There is an attractiveness that like people are drawn to. Don't know what that is, although that we're flawed, but like we are we have a tendency to try to hear. I would say um Glenn Beck was one of those people. i When I was a pharmaceutical rep, Glenn Beck every time was like, the market's going to crash. The market's going to crash. And like it was there was something like it was interesting just to kind of get drawn into it. I wasn't even a market guy at that point.
00:17:28
Speaker
but it was interesting to hear that. And then the more you heard it, the more you thought it was going to happen. It was like, it was a lot of years before the market pulled back. I'll say that. And so at what point does somebody who's like, stop talking about that. yeah No, they never do ye because we are attracted to this fear, fear which is It's fascinating
Fear's Role in Market Decisions
00:17:50
Speaker
to me. What is that? there's only like oh So the science behind this, this is fun, I thought this was so fascinating when I learned it, is you think about back when we were like cavemen, you know like going out and about like beyond like boundaries, it was like super dangerous, because you wouldn't come back, you'd die, right? How you might. So then your whole thing was to stay alive. So now, life is really safe. like The chances of you leaving your house, your cave, you know yeah and coming back are really good. yeah and so But then how long can you live without money?
00:18:20
Speaker
You have no money, you're not going very far. Everything costs money, remember, nothing's free. yeah So you get really protective of it, but for some reason, think about anything, you look at our news, everything everything's selling fear, because fear sells. ah but the So here's the fun part about this, is feel like, do you know what happens to your brain when like you're on a fear tactic? No, dopamine hits? No, your frontal lobe shuts down. oh So you can't like if you're overly fearful, you can't critically think and process through something. So actually, it takes more intelligence to be optimistic, hu to think through something, and to think it's going to be good. But like science shows and studies show, like if you have two guys super uber smart, like one's from MIT, one's from Harvard or whatever, and have like all these fancy juries, and one says,
00:19:16
Speaker
the market's gonna crash and has a good reason why the market's gonna crash. The other one has really good reasons, maybe even better reasons why the market's gonna keep doing well. And they both submit to Beyond the News, guy that says the market's gonna crash, he's on the news. Way more popular. Yep, they're gonna get way more hits, way more ratings, because people are gonna tune in and they're like, oh my gosh, I'm gonna lose all my money. Have to hear about it. Yeah. And then they're gonna believe anything. Yeah, they're gonna believe anything. They're like, oh my god, I gotta pull my money out. Wow.
Emotional Awareness in Investing
00:19:45
Speaker
It's, but it takes more intelligence to be optimistic because you got to stay cool, calm, and collected to think through the data and use your phone to load.
00:19:55
Speaker
Okay. Well, that's it. I don't know. That's fascinating. i love This whole little muddy little tidbits that we've done for the past, man, we've done it for a while. It's been at least for the beginning of the year. has i been really It's been really good for me just to know, like just talking more about these things that make people successful in investing or in running a business or yeah anything. I think all these are all tactics and and Small little I guess pearls that you can take and start thinking about like how is my money wired? When it is regard to either life or money. Yeah, so it's such a big deal I mean we lean on each other like we know these things like I've read a lot of books like I have the knowledge I'm human I'm flawed and I still need check-ins like I have the knowledge I feel like I have enough knowledge that you should be like oh you should be good. It's like yeah, I no, no. I'm emotional. I have emotions. Like I need check it. I need help. Right. I think we all do. You know, who's really good at this. I'll just totally just.
00:20:50
Speaker
edifier here is Ashley. Ashley Fox, aren't you? Oh my gosh. She is he's really good at this. Like she is never like, yeah, the market's gonna go up. We're moving on. You know, like let's go. Yeah, which is good. And yeah, she doesn't have a lot of client facing opportunities to like see the fear that people have, but she's just always really good. Resolute. Yeah. Like the market will go up. Yeah. She like, she is so good at staying in the path. it She is. No, don't pull out. It's fascinating. It's great to see people like do that and you're like, wow. you know She knows the numbers, she like knows what and she knows what she believes, and she just goes. It's good.
Conclusion: Key Messages and Reflections
00:21:26
Speaker
All right. Well, you've been listening to the Uncomable Wolf podcast. I've been your host, Phillip Ramsey. And I'm Aaron Cramblin. Until next time, just know your flaws and know that nothing's free. Nothing's free. Thanks for listening.
00:21:38
Speaker
That's all for this episode brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.