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Downside of Financial Advising
40 Plays2 days ago
Phillip Ramsey explores the inherent challenges of financial advising on the Uncommon Wealth Podcast. He discusses the tension between helping clients achieve financial goals and the necessity of charging fees, which may seem counterintuitive to their financial progress. Ramsey emphasizes the importance of offering value and forging genuine relationships with clients, regardless of monetary gain. He reflects on Uncommon Wealth Partners' unique business model that focuses on personal growth and creativity over traditional asset management. Discover insightful perspectives on balancing financial goals with personal development.
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Transcript
Introduction to Uncommon Wealth Podcast
00:00:02
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.
00:00:14
Speaker
We're going to introduce you to people who are living uncommonly.
Tools and Strategies for an Uncommon Path
00:00:18
Speaker
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.
Financial Planning's Downsides
00:00:29
Speaker
Hello and welcome everybody to another episode of the Uncommon Wealth Podcast. where I'm your host, Philip Ramsey. And today i get to talk about the downside of financial planning. um du boom What do you mean?
00:00:41
Speaker
You love your job. I do. I really do. Here's the downside. This might not be that long, but it's going to be, it's truthful. So if you were to go to, let's say, uh,
00:00:53
Speaker
trainer and you were like hey i want to get ripped shredded and i want to lose weight he would be like i can do that for you i got the knowledge to exchange for finances great you're like here is my money cannot wait to have that beach bod i've always wanted you know what i'm saying And so you go, you
Financial Advising vs. Fitness Coaching
00:01:16
Speaker
give him him money. Here's maybe he says a monthly, give me my money monthly and I'll give you what you want and I will coach you and give you my knowledge. I'll transfer the knowledge that I have to you. Again, you have to do the hard work, but um but yeah, so there's a transfer of money and you get in return, hopefully that beach bod because you're a hard worker and you're disciplined. You get the beach bod you want.
00:01:37
Speaker
You gave him $50 month or $250 or $5,000. Doesn't matter what the And then you what you want.
00:01:44
Speaker
Okay, here's the problem about financial advising.
Paradox of Financial Advising
00:01:50
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You know, you know, I don't really love money. I love people and I love what they want to do with their life, which normally requires money.
00:02:00
Speaker
And in order for me to run a successful business, I need some of that money that you need to achieve your goals. You get what I'm getting at here is our usually when people come to me, they have financial goals.
00:02:15
Speaker
And in order for me to help you achieve your financial goals, I need your money, which takes away from your financial goals in my mind. Now, I know that there's accountability there. i think that we can get there faster. There's value there. Obviously, i've i love my company.
00:02:32
Speaker
But that, I think, is the inherent problem with financial advising. and i trust me, I believe in what we do. i know there's value there. And I...
00:02:44
Speaker
monetarily, we can show the value every time we do put a plan together of like, hey, this is where you're going. This is with our expertise where you're going to get now. And a lot of times it's way more than what we charge for a financial plan.
00:02:56
Speaker
And yet in the back of my head, I always think, but you could have done this faster if you didn't pay for me.
Offering Free Consultations
00:03:03
Speaker
Anyway, that seems like something I have to work out because at the end of the day they end up with more wealth than they ever thought with a mindset and accountability and somebody who's just kind of fun to hang out with at times to be able to help them achieve their financial goals. So But that honestly is something that I've had to wrestle with still to this day.
00:03:23
Speaker
And if you call and do do the 15 minute consultation, my number one objective in those 15 minute consultations is not to get you as a client.
00:03:34
Speaker
Think about that for a second. I try to give you as much knowledge and wisdom that I have and value. So you leave that conversation thinking, I don't know if I need Philip. I love the conversation. It was super valuable, but I think I can do it by myself.
00:03:50
Speaker
And then people, honestly, people go and do that. And two years later, they'll call me and like, hey, I got a couple couple more questions. And guess who answers them? Me. Because I truly want everybody in my, I guess, relationships or my friends and my acquaintances to like go do an uncommon thing because that's how valuable you are. You're amazing.
00:04:13
Speaker
and So if I can just encourage one person by 15 minutes, like that money well spent for me, and I get to encourage somebody. But honestly, it's been a really good business model because at the end of the day, when they do build all that wealth, guess who they're going to come back to? Hopefully me. um But if they go to somebody else, that's okay too. Like that's not the reason why I give them all that value. But um I just feel like it's it's it's a good...
00:04:37
Speaker
ah Litmus test is like, I'm doing this for the right reasons. I'm not doing it for financially. And that's, i think, the downside of financial advising for me is there are times where I sit there and think you could achieve your goals faster if you don't pay me. And ah oftentimes I just don't get
Unique Business Model of Uncommon Wealth
00:04:56
Speaker
paid then. I feel like we guys got to get you where you're going, you know, and kind of not pay it forward, but do pro bono work. um Again, probably shouldn't be putting that on a podcast, but that is what happens.
00:05:07
Speaker
Okay, so with that becomes, I would say, just helping people understand that the business model that we have chosen for Uncommon Wealth Partners is very different than your other financial advisors.
00:05:25
Speaker
i don't know about I don't know if I can say a lot, but a lot, I think, um do this like assets under management model where you have to have over, you fill in the blanks, $250,000, $500,000 to work with us.
00:05:42
Speaker
um And we chose honestly not to do that because I feel like some of my like best clients are the people that don't really have assets under management, but they are creating something that is gonna be incredible.
00:05:55
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far exceeding anything that I'll be able to put in the market and grow or or lose or whatever, like anything I can invest for them, they're investing in themselves and it is going to produce a return far greater than anything that I
Encouragement of Independence and Self-Investment
00:06:09
Speaker
can do. And so to be able to encourage those people to go and create something is like my happy place. I love it.
00:06:17
Speaker
And I feel like it's a win-win. So when people say, oh, they're fiduciary, think that's more of a mindset than anything. And I'm telling you, with fiduciaries, there are times where we feel like, huh, I feel like you're better off not paying us than then if you were to pay us. I feel like you can get there faster. And if that's the case, every person just say, hey, let's...
00:06:39
Speaker
not work together right now. Let's work
Tension in Financial Advising
00:06:41
Speaker
together later. And so that's the downside of financial advising that I see it is that I take money in order for you to achieve your financial goals. And there's times where there's a tension there.
00:06:54
Speaker
Anyway, thought I would just kind of shoot a podcast about that. It gives you a little bit of a mindset where we're at as a company, where I'm at mentally.
Creating Value and Achieving Success
00:07:02
Speaker
It's just how we can help people to its fullest. Not because we want all your money, but we want people to enter in see how gifted and valued they are.
00:07:12
Speaker
And we call that the uncommon wealth path. um So if this is you and you're listening for the first time, you have no idea who we are. Holy cow. How did you find our podcast? I'd like to know that. ah The other is there's people out there that can really encourage you on the path you're going. We like to call ourselves uncommon wealth, but there's other advisors I'm sure that are doing it, but we have just made a staple and this is our company.
00:07:35
Speaker
So. Uh, thank you for being a client. If you're a client, if you're not a client, can't wait for you to be a client at some point and, go and create something because the amount of knowledge that you're going to find and you're going to learn is priceless.
00:07:52
Speaker
And I think it's going to be successful. I've only worked with two or three people that haven't had success as they defined it or that it's changed and they feel like what happened is way more valuable than what if would it happen the way that they had it mapped out.
00:08:08
Speaker
That's a huge statistic. But I do feel like when you step out, you put out your step out in faith, I guess, and put your big boy pants on is what i was going to say. I feel like you're
Risk Tolerance and Support for Ventures
00:08:19
Speaker
rewarded. You're rewarded either by just wisdom or monetarily, sometimes both, but it's always worth it.
00:08:26
Speaker
um The question then turns to what's your risk tolerance. And there's no way that I would tell somebody like, Hey, sell everything and go do something unless that's your w risk tolerance. If it is, then okay, I'll tell you the downside and the risks. But at the end of the day, like, dude, I'm in, I'm your huckleberry. Let's go.
Closing and Invitation to Connect
00:08:43
Speaker
How can I help? How can I jump in the trenches to then, if something doesn't go according to plan, we can adapt and overcome. Holy cow, this podcast got a lot longer than I thought it was going to be. ah Anyway, you've been listening to Uncommon Wealth Podcast. Please reach out to me. I'd love to hear from you. You can do that at phillip, P-H-I-L-L-I-P, at uncommonwealth.com.
00:09:06
Speaker
Until next time, thanks for listening.
00:09:12
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.