Transcript
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Today's episode of the Sugar Data Podcast is a bit different than normal.
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This is actually a recording of a live podcast session that Jess and I did with Cisco Systems and their Connected Black Professionals Employee Resource Organization.
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Cbp's mission is to provide a safe space for members to express concern, network and celebrate each other, while promoting unity, equity, culture, professional development and endless opportunity for success and achievement.
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In this episode, we sat down with the members and we talked about it all professional development and endless opportunity for success and achievement.
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In this episode, we sat down with the members and we talked about it all, from saving and investing for the future to retirement planning and cryptocurrency.
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This episode is jam-packed with great questions and a high-level but comprehensive picture of proper financial planning.
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If you'd like us to speak to your company in a similar way, be sure to reach out so we can discuss the details and make it happen.
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Now let's get into it.
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Welcome to the Sugar Daddy podcast.
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I'm Jessica.
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And I'm Brandon.
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And we're the Norwoods, a married millennial couple here to help you build wealth so you can live the life you've always dreamed of.
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Brandon is an award-winning licensed financial planner with over 10 years of experience and millions of dollars managed for his clients all over the US.
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Don't worry, we leave all the intimidating finance mumbo jumbo at the door Stick with us as we demystify the realm of dollars.
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So it all makes sense.
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While giving you a glimpse into our relationship with money and each other, we are so glad you're here.
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Let's get started.
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Without further ado, I want to turn it over to Jessica and Brandon Norwood and, just to make sure everyone is aware, jessica is part of our Cisco family.
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For those that do not know, she does her podcast in her spare time, so that's not her full time job.
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That's something that she gets to enjoy doing with Brandon, and they get to share a lot of useful information with their podcast community and have agreed to share information with us here today.
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So I'm going to ask Jessica and Brandon to introduce themselves, tell us a little bit about why they got into doing a podcast and tell us a little bit about how they chose the very unique name of their podcast as they go ahead and get into their episode.
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So, with that said, I'm going to stop sharing and turn it over to Jessica and Brandon.
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Thanks so much, darren.
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Hey, cbp fam, really excited to be here with you and bring my husband along on this exciting day.
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I'm Jessica Norwood.
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I lead a global digital sales content strategy for global virtual sales and engineering.
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I am not the finance person, I'm just married to the finance person and last June we started a podcast and it's called the Sugar Daddy podcast.
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My mom hates the name, so I think we're on the right track and the reason we named it that the tagline is how to become one and how to ensure that you won't need one, and so it's a his and hers perspective.
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On finance, we talk about pretty much anything.
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No topic is unavailable to us and Brandon gives his professional perspective on topics perspective on topics and I question him the way most of you probably would question things that we hear on TikTok, on Instagram, on the news, and so all we do is kind of go back and forth, you know, to discuss all of these different topics.
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It's a lot of fun.
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Like Darren said, we do it after hours, we fit it in when we can, we ship the kids off to the grandparents on the weekends and record.
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But it's been a lot of fun because it's something that we can do together and it challenges us and it brings us together, and you'll hear, today, one of the biggest things about finances is talking about them, and so that's what we do a lot of in our home so we're going to get into that, but I will let Brandon do his introduction.
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I'll say my name is Brandon Norwood and I have been in finance for over 10 years now.
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I am a licensed financial planner and I own my own financial planning firm called Oak City Financial.
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And part of the reason that we know we decided to go ahead and do this podcast was is that I know by myself I would never do a podcast just with me because I don't think I'm entertaining enough.
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So she definitely brings the entertainment aspect, but really where it came from was me always wanted to talk about all these different things with her and she's always like put it on social media, put it on social media.
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And for me, the way that I see a lot of stuff revolving around finances on social media, it has pros and cons, but the one big con I see is that it's very small snippets and not the detailed stuff.
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And it's called personal finance for a reason, because you need to take into account everyone's individual personal circumstances, and so for me, this quick little social media post wasn't really how I want to talk about it and that's just like let's go ahead and do a podcast so it all came to me in a dream which I know that sounds super corny and fake, but it really did.
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Came to me in a dream.
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I woke up, put it in my phone and then literally forgot about it.
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And then we were on a road trip on our way to a friend's wedding in Tennessee and I was like, oh my gosh, I forgot to tell you that I had this dream and this is what it's about and this was the title.
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So the title of the Sugar Daddy podcast literally was in the dream, wrote it down, forgot about it, brought it back up and he was like, okay, let's do it.
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So it's been a lot of fun.
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We've got over 20 episodes, I think at this point hitting our one year in June.
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We've got amazing people lined up.
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We've been doing some really great interviews that we're really excited to share with our audience.
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Hopefully you will now be a part of that moving forward.
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But we put out episodes on the 1st and 15th of every month.
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Payday, so you should remember.
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So if you subscribe, those will drop directly into your queue.
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You can listen wherever you get your podcasts Apple, spotify, google, et cetera.
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So are you ready to get into it?
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Ok, all right, darren, did we miss anything?
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No, that was perfect.
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I love it, I love it.
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I'm excited already.
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We're going to share our screen and we're not going to bore you to death with slides, but we do have just a little bit of an agenda that we wanted to go through.
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So if somebody, darren, can you give us a thumbs up, if you can see it.
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Thumbs up.
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Awesome.
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So we're going to jump into our financial philosophy, because it really is the basis for how we operate, what we talk about, how Brandon coaches his clients and teaches his clients, and we'll just go from there, and we're happy to take any questions.
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Again, really nothing's off the table, so if you've got a burning question, we'd love to answer it today.
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All right, so let's get into your philosophy.
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Why don't you tell us about it?
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Well, the main principle of my philosophy is the education aspect.
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I really feel as though that people have anxiety around money for two main reasons, one being a lack of financial literacy.
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They simply don't understand and they don't know what to do Now.
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The second one is they don't have a plan in place.
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You know, for so long, financial advisors often just you know took care of number two.
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They put a plan in place for you.
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But I'm really big on wanting to educate my clients along the way, because that empowers you to be able to make a decision for yourself, because ultimately, at the end of the day, any type of plan that we're doing, it's going to affect your life.
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So you want to be able to understand exactly what it is and all the different topics and services we're talking about and, honestly, just in general, like you know, finances touch every single aspect of your life.
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Whether or not you realize it or not, every area of your life has some aspect attached to your finances.
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So being able to have a good foundation in the understanding of financial literacy and then also just continuous education, because they're always changing, so I'm really big on the education aspect.
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And most of us didn't have it growing up.
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We don't have it in school.
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Now we're.
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You know, we're hearing all these things.
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Okay, I should have a diversified portfolio.
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What does that even mean?
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I should be doing this, I should be doing that.
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The crypto bros are telling us one thing, right, and then, like, what do we even do?
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And so having that background of education and not just handing your finances away to somebody and saying, okay, go do something with it, is really important.
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And the thing is what you know prior to you know the time period.
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Now the accessing information is hard because you didn't have access to it.
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One of the amazing things about the Internet is that we have access to so much information, but one of the downsides of that is that you have an overabundance of information, so it's really hard for individuals to weed through all the noise to find out one what is true, what is false, but then also what is applicable to their specific situation.
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So that's why having a really good financial literacy education helps you weed through all that noise and find out specifically what it is that's going to work for you.
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Now, one of the biggest things I also realize that a lot of people honestly do not do is proper goal setting.
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Most people, when I sit down with them, they have very generic goals.
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Vague.
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Like I want to.
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You know you might ask me you know what is one of your goals?
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I want to save up a million dollars.
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What does that mean?
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I mean money.
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I would say that money is not a goal, it's a tool, and once you understand how to use it as a tool and use it properly, then the tool is used for you to live the life that you want to live.
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So I'm really big on making sure that we get granular with your goals, because if you have a very generic goal, it can be very hard to figure out what the specific steps are that you need to be most efficient with achieving that goal.
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So being able to and also I realize a lot of people actually don't talk about their goals out loud period with you know, their friends, family, spouses I have sat down with spouses who we start talking and you know those are coming up and neither one of them had known about the other person.
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So I think it's really big to dream as big as you can in all honesty, and so you know being able to have a proper goal setting strategy is, you know, an integral part of the financial planning aspect.
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Now, I was going to say too.
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One of the things that he talks about often is people going to work for 40 plus hours a week and then not knowing why.
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Right, why are you working?
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And it's not just, or it shouldn't be, just to pay your bills and to keep the lights on, right?
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What are, what are your grand visions for your life?
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What are you really ultimately trying to achieve?
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So, if you walk away with anything today, I think it's think about your vision and your goals and your hopes and dreams, right, and make them big Really, make them audacious and get granular, because you're collecting a paycheck, but why?
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Right.
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You know, Now I'm also really big on the accessibility to quality financial information as well.
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You know, for so long our community did not have access to this information and I mean to say, through a certain sense, it's still limited in some aspects.
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So I do what I can to make this information known to as many people as possible and not just simply you know the, not just simply you know the information that I, you know, provide as a financial advisor, but also making sure that people know good resources to use as well to increase their financial literacy in all different areas.
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So the one way that you know you can start to level the playing field is to have that access to information.
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But then you also have to implement that information.
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So you know, you can be a student of, you know, financial literacy, but you also have the bigger part of not just you know, gaining all that information is starting to actually take action, and that's one of the biggest things I see.
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Unfortunately, people don't do.
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They'll read and read and read, but they don't at least take that first step.
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Yeah, all right, let's keep going.
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So we want to get into a couple of myths and we'll show you.
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You know the link to our podcast and all of that so you can listen in and you'll get an idea of us leaning into all of these myths.
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But one of our favorites is I don't need a financial advisor until I have a lot of money.
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And you had a really good analogy the other day and it was you don't go to your trainer when you have a six pack right.
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Once you've gotten the six pack and your muscles are bulging and your body fat's all low and you're, you know, lean, mean fighting machine, why are you now going to a trainer?
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That doesn't make sense, right.
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And so going to a financial planner in the early stages to help you build your wealth is really what you should be doing.
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There obviously is an aspect of you have to be able to pay for one.
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Yes, you do have to afford a financial planner.
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He does not work for free, to be clear, I love providing information for free.
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That's what the podcast is for.
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Yes, you do have to afford the financial planner.
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He does not work for free, to be clear, I love providing information for free.
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That's what the podcast is for, as far as actually you do have to be able to afford a financial advisor and there are a wide range in regards to how a financial advisor is charged and what they charge, so looking for someone that fits within your budget is also key.
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But, as Jeff said, my biggest thing is that I want to help you along the journey, because with my help, we can actually be much more efficient.
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So you know, unfortunately, you know when you're on your own, sometimes you're going to have to learn from trial and error, and then also you have the learning curve as far as being able to have the time to acquire all the different knowledge.
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And sometimes the learning curve comes with losing money if you're not getting help, which you don't want to do.
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We also have a great episode on how to choose a financial planner or advisor.
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We also talk about is it a financial advisor, financial planner, wealth manager all the different terms?
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Are they synonyms?
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We dig into all of that.
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But we also talk about red flags, and we'll get into this in just a little bit.
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But we know that there's a lot of fear around working with financial planners.
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I think we probably all have people in our families down the line that have said that you know they didn't have a good experience.
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They got screwed, they lost money, and so again, there's fear, there's shame, there's hesitancy, and so we break down the red flags when working with a financial planner, because they're not all created equal.
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Not everybody out there is working with your best interest in mind, and so it really is important to look for those, those flags, early and to do your due diligence, because not everybody out there is on our side and is doing good work.
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You mentioned, obviously you get paid off of all the different things that you do.
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You should always feel comfortable asking your financial advisor how they are getting paid.
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If you are putting a new life insurance policy in place, you should be able to say hey, how are you getting paid off of this?
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How much are you going to make off of this?
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If you're a financial planner or the person that you're working with is hesitant in answering that question, move on.
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They are not the person for you.
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There needs to be a lot of openness and transparency and trust in this process as you're growing your wealth and your knowledge base with your financial planner, and if you ever have a feeling of he's hiding something, she's hiding something.
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Something's not right.
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Go with your gut, move on and find somebody else, because nobody that you're working with with your money should ever be hesitant in telling you how they get paid.
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And, let's be honest, the financial services industry has not catered to people that look like us, and I would still argue that it does not cater to people that look like us.
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Now there are changes that are occurring.
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So you are starting to see, you know, more diversity within that field as far as you know, more females, more people of color, but we still have a long ways to go.
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And so, you know, starting to maybe break down some of those walls that we had before as far as access to it, but then also just some of that, um, hesitancy, as jessica stated, for, you know, not trusting, and that comes from a place of validity.
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You know there are things the financial services industry has done in the past, and even recently, that does not benefit people that look like us.
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So I always say to individuals, even people that I'm sitting down with, you know, potential prospects.
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I'm like, if you don't trust me, for whatever reason it may be, we're not a good fit, because it's not going to be beneficial to you and it's not going to be helpful for me to help you.
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So I always say number one is you know a lot of us know a lot of the same things.
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A lot if the financial advisor tells you that he knows something so much more than the other one, I walk away from that because we know a lot of the same things and we have a lot of access to the same information.
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It really boils down to do you personally want to provide with that person?
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Do you guys have a similar mindset and do you trust them?
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Yeah, and there's a lot of things that, as part of Brandon's planning, that he recommends you put in place right Life insurance, disability insurance.
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Some of those come with a check of your medical background and records.
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So, again, there needs to be a strong level of trust and transparency, because the reality is he's going to see a lot of things that maybe people that are even closest to you don't know, and so if you don't trust your financial advisor, you're probably not going to grow together and you're likely not going to grow your wealth, because there's going to be gaps and you want to make sure that you really are working with somebody that you trust, that you feel has your best interests at heart, that listens, you don't feel rushed.
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It's just like going to a doctor.
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I don't want to work with a doctor who's rushing me out of their office, is not listening, is not taking notes, is not recapping what we talked about the last time, right?
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So it's a very similar type of relationship.
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Hey Jessica and Brandon.
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Do you mind if I jump in and ask a question?
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Yeah, no.
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So Belindia Taylor asked how often should you talk to your financial advisor, or how often should that financial advisor speak to you?
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Is that something you all can answer live right now?
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Brandon has very strong opinions on this Okay, great question.
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It depends on where you're at in the relationship.
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So, for example, when I bring on a new client, the first four months or so, I'm normally meeting with them at least once every three weeks.
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Reason being is that we are going through an initial onboarding process, so we are, you know, meeting through their current situation and addressing a lot of things and a lot of different topics early on.
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So data gathering, getting a lot of paperwork.
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First four to five months I really have a structured meeting outline that I would like from a meeting consistency standpoint, reason being that I've got a lot to get through.
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But then I also don't want to throw too much at a client at one time because there are going to be action items that they need to complete in between meetings.
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But I also don't want too much time to elapse that we forget what we talked about previously.
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Now, once we've gotten through that initial, I consider it my core meetings process.
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Then I kind of leave it open to the individual.
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You know, what does that person need?
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I want to meet you where you're at, and so I have some clients.
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You know, once we get that process, they want, you know, we have a monthly meeting.
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After that I have other ones that feel a little bit more comfortable, and then maybe every other month, but at bare minimum, once we've gotten through all that, I want to meet with you at least bare minimum once a quarter.
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Personally, because I feel as though, like there's certain things, especially at the age that we're at I work with, you know, basically millennials, or elder millennials, and so a lot of things change on a regular basis.
00:19:54.249 --> 00:19:56.272
You know, if you think about you know your life.
00:19:56.272 --> 00:20:00.609
Five years ago, like five years ago, we didn't have kids, so now we have two kids.
00:20:00.609 --> 00:20:03.932
A lot of things have changed job changes.
00:20:03.932 --> 00:20:11.278
So I really think that you, I really think that an advisor should ask the clients what do you need?
00:20:11.278 --> 00:20:18.458
Because I am here to help you, not you necessarily just fitting into one standard mold how I want to do things.
00:20:19.204 --> 00:20:21.529
Yeah, we've also had to segue.
00:20:21.529 --> 00:20:23.954
We've had friends in the last couple of years.
00:20:23.954 --> 00:20:30.036
You know who will pick Brandon's brain and he'll say well, did you talk to your advisor about that?
00:20:30.036 --> 00:20:31.347
Oh well, I haven't talked to him.
00:20:31.347 --> 00:20:34.679
Well, we know just from our interactions.
00:20:34.679 --> 00:20:42.311
Your salary went up significantly and you now haven't done anything to your life insurance, you know, to boost that as well.
00:20:42.311 --> 00:20:45.967
You went from zero kids to two kids, or two kids to three kids.
00:20:45.967 --> 00:20:49.618
Right, you went from renting to, you know, being a homeowner.
00:20:49.618 --> 00:20:58.127
Those are big life events that your financial advisor needs to know about, because it likely will make a change to your planning.
00:20:58.188 --> 00:20:59.112
It's a two-way street.
00:20:59.112 --> 00:21:06.616
The advisor obviously should be reaching out to his client at some point in time, but then it's also up to you, when you have these life changes, to especially reach out to them and let them know.
00:21:07.265 --> 00:21:13.685
I would say it's a red flag If you're the only one reaching out to your advisor and your advisor is never checking in with you.
00:21:13.685 --> 00:21:16.311
I would not think that that's good.
00:21:16.311 --> 00:21:19.818
I agree that's a great question, all right.
00:21:19.818 --> 00:21:25.335
So myth number two I'm young and single, so I don't need life insurance.
00:21:25.335 --> 00:21:26.617
Darren's laughing.
00:21:26.617 --> 00:21:27.086
I love that.
00:21:27.086 --> 00:21:27.789
He's like laughing.
00:21:28.964 --> 00:21:31.308
I feel, as though, that you know the black community.
00:21:31.308 --> 00:21:44.498
We have a strained relationship when it comes to more specific life insurance, and it comes from a place of validity, because there was a time period where, you know, black people were getting life insurance policies and then they were not.
00:21:44.498 --> 00:21:48.895
The company simply were choosing not to pay them out when the individual passed away.
00:21:48.895 --> 00:21:55.357
So it comes from a place of reality, but I can assure you that things have changed, so we need to get over that.
00:21:55.357 --> 00:22:00.156
You know, listening to our grandparents or you know talk about insurance, because things have changed.
00:22:00.156 --> 00:22:09.719
It's a completely different game and the reality is that, when it comes to life insurance, the younger you are, the more healthy you are, the less expensive it's going to be.
00:22:09.719 --> 00:22:13.295
Now I would say, from a mindset standpoint, that some people are, like you know, I'm single.
00:22:13.295 --> 00:22:15.248
Like you know, I don't have any real necessary needs for that.
00:22:15.548 --> 00:22:16.148
I don't have kids.
00:22:16.148 --> 00:22:17.330
I don't have kids, I don't have a house.
00:22:17.330 --> 00:22:18.313
What do I need life insurance for?
00:22:18.492 --> 00:22:20.536
But also there's a planning aspect.
00:22:20.536 --> 00:22:23.300
Do you plan on owning a house one day?
00:22:23.300 --> 00:22:28.384
Do you plan on having kids?
00:22:28.384 --> 00:22:39.342
The idea is that if you have any inclination that these things are going to occur in your life, go ahead and get a policy when you know it's going to be the least expensive and that you are the healthiest to be insured to get one, because a big part of getting a life insurance policy is are you insurable from a health standpoint?
00:22:39.785 --> 00:22:59.472
So there are a lot of things that can happen to you that are one maybe going to increase the amount that you would pay for life insurance and you'd be surprised that some of the things like you know if you have ADHD, you know if you see a therapist these things come up in the underwriting process and it could increase the price or possibly even make you uninsurable.
00:22:59.472 --> 00:23:09.219
So if you, for example, we've had parents of ours that have had bouts of cancer at a young age and they're in remission and they're healthy now but they're currently uninsurable.
00:23:09.219 --> 00:23:16.490
So I always say sooner the better, because you know you can put it in place, but then also not to get too much into the weeds Life insurance is.
00:23:16.490 --> 00:23:19.775
We normally think about it as something that you use if you die.
00:23:19.775 --> 00:23:28.791
If you don't use it, if you don't die, then you don't use it, and that's a misconception often, because the life insurance policies there's various kinds that can be used in other financial ways.
00:23:32.605 --> 00:23:34.272
And same thing for children, right?
00:23:34.272 --> 00:23:49.852
Like we have policies on our children they're three and a half and five, obviously, it's not so that it pays out should something tragic happen, it's so that they are insurable later in life, should something happen.
00:23:49.872 --> 00:24:04.757
So I have small whole life policies on each of our children and what a feature of that policy is is that it allows them to apply for more life insurance up to a certain amount once they're adults, without having to go through the medical underwriting part.
00:24:04.757 --> 00:24:14.090
So let's just say hypothetically, you know, god forbid something happened where they became uninsurable, where normally in that scenario they wouldn't be able to get another life insurance policy With the current policy they have.
00:24:14.090 --> 00:24:17.066
It has a feature on it that will still allow them to get the life insurance.
00:24:17.066 --> 00:24:19.631
So we have ensured their insurability in the future.
