March 12, 2025

80: Should You Trust AI to Replace Your Financial Advisor?

80: Should You Trust AI to Replace Your Financial Advisor?
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Season 4

Financial planners and AI tools can coexist to provide better service, with each bringing different strengths to the financial planning process. In this episode Jess and Brandon discuss the rise of robo-advisors and how they compare (and don’t) to comprehensive financial planning.

In this episode we discuss: 

• How AI excels at portfolio management 
• How budgeting apps use AI to categorize transactions and provide spending insights
• How comprehensive financial planning differs from simple investment management
• How AI and humans can work together to enhance services
• Robo-advisor fees versus human advisors

Watch this episode in video form on YouTube

To apply to be a guest on the show

You can email us at: thesugardaddypodcast@gmail.com

Be sure to connect with us on socials @thesugardaddypodcast we are most active on Instagram

Learn more about Brandon and schedule a free 30-minute introductory call with him 

Please remember to subscribe, rate, and review.

Chapters

00:00 - Introduction to AI in Financial Planning

02:17 - What AI Can Do in Financial Planning

05:40 - Using AI for Portfolio Management

09:57 - Budgeting Tools and AI Applications

14:41 - Human Touch in Financial Planning

21:43 - Emotional Aspects of Money Management

31:19 - Ethical and Fiduciary Responsibilities

35:14 - AI and Human Planners Working Together

40:46 - Key Takeaways and Listener Challenge

Transcript
WEBVTT

00:00:00.381 --> 00:00:09.054
In today's episode we are going to discuss if AI will replace human financial planners like Brandon Hopefully not.

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We're going to talk about how AI is revolutionizing various industries, what AI can do in financial planning, what AI can't do and why human financial planners will still matter, and how AI and humans can work together to give the best experience.

00:00:27.103 --> 00:00:28.469
Stay tuned.

00:00:39.564 --> 00:00:41.359
Hey babe, what are we talking about today?

00:00:42.061 --> 00:00:58.810
Today we are venturing into my world a little bit and we are talking about AI, artificial intelligence, but not in the technology space that I'm in for work, but in your space and financial planning.

00:00:59.131 --> 00:01:01.146
Yeah, are they going to take over my job?

00:01:01.787 --> 00:01:09.046
Right, I think that you know it's so funny because people are like oh, ai is so new, ai is so new and AI is not new.

00:01:09.046 --> 00:01:10.609
So that's first and foremost.

00:01:10.609 --> 00:01:21.525
I know for many people it feels like it has come out, you know, in the last year or two, maybe three years, but it's actually been around for an extremely long time.

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But now it is more accessible to us, you know, and we're using it in like the chat, gpt, prep my meals for the week, write me a shopping list, plan this vacation, help me write this email, kind of way.

00:01:35.783 --> 00:01:38.049
But it's actually been around for quite some time.

00:01:38.049 --> 00:01:45.412
And so, you know, I think, with the rise of AI, people very much are like is AI going to take my job?

00:01:45.412 --> 00:01:56.555
And what I typically say is AI is not likely to take most people's jobs, but it could very well replace you if you're not willing to learn about it.

00:01:57.500 --> 00:02:10.770
Yeah, I definitely remember reading a lot of articles, you know, a few years ago, when the rise of robo-advisors started to come out and it was like you know, robo-advisors are going to take over the roles of financial advisors.

00:02:10.770 --> 00:02:13.304
They can do it for cheaper, they're smarter.

00:02:13.304 --> 00:02:38.069
All these things and I can honestly say, you know, a few years into this, hasn't affected me and it hasn't affected, you know, other colleagues that I have that are within the field, because I think that there has been a shift in regards to maybe what our primary focus and what our main offering may be, but as far as replacing us, overall, not at all.

00:02:38.069 --> 00:02:48.269
And personally I use AI within my practice to help become more efficient and help in certain aspects that obviously AI can do significantly better than any human.

00:02:48.590 --> 00:03:00.539
Yeah, one of my favorite uses for AI and I do this almost daily is recording all of my work calls, and then, you know, I get a transcript, I get next steps, I get follow-up items.

00:03:00.539 --> 00:03:11.848
I mean all of the stuff that you do in work that's very manual, you know, can, can be utilized with technology to make life easier.

00:03:11.848 --> 00:03:40.181
It's also great, you know, in those instances, hey, if I'm out and I need to revisit a call that I wasn't a part of or you know for you I know you've talked about you know recording, helping it summarize the call, getting the next steps, getting action items I mean those things are the manual tasks that are very labor-intensive, that take up a lot of time, and so AI has a lot of use cases for that.

00:03:40.181 --> 00:03:54.912
For that I don't know that I would have ever leaned towards a robo-advisor, but I think I've, of course, am biased because I know how much you do for not only our family but for your clients, and you're just not going to get that from a machine.

00:03:54.912 --> 00:03:55.792
You're just not.

00:03:56.872 --> 00:03:57.454
I also.

00:03:57.454 --> 00:03:58.854
You know, just like you.

00:03:58.854 --> 00:04:13.812
One of the things you said that I say that I do is I do record my meetings with clients and all my clients get a detailed recap meeting email with action items, and I use a program called Fathom in order to produce those.

00:04:13.812 --> 00:04:19.709
It makes my life significantly easier because before I was taking notes and then creating the email myself, as compared to now, it creates it for me.

00:04:19.709 --> 00:04:22.884
I maybe make a few adjustments in there and then I send it out.

00:04:22.884 --> 00:04:26.091
So cuts down on the timing that it takes for me to do these things.

00:04:26.091 --> 00:04:40.375
But I think people have a different idea of what a financial advisor a good financial advisor brings to the table in comparison to what a robo-advisor can do for you.

00:04:41.380 --> 00:04:46.269
Well, do we want to start with what AI can do in?

00:04:46.290 --> 00:04:47.411
financial planning yes.

00:04:47.913 --> 00:04:49.702
Because there are positives.

00:04:49.702 --> 00:04:52.529
This is not us knocking AI, because obviously we use it every day.

00:04:53.091 --> 00:05:18.250
So, when it comes to the investing aspect, as far as putting together a portfolio, I think AI can do a significantly better job, and a lot of advisors are using AI to put together portfolios Because, basically, when it comes to putting together a portfolio and analyzing, hey, how should we put this portfolio together based upon this person's goals, their risk tolerance and what they're looking to achieve, a lot of that is based upon historical performance.

00:05:18.250 --> 00:05:20.266
You may have heard the saying.

00:05:20.266 --> 00:05:29.000
Like you know, historical performance is not indicative of future performance, but that's all we have really to look at in order to maybe have an idea of what's going to happen in the future.

00:05:29.000 --> 00:05:39.091
And obviously, ai can do a significantly better and much faster job of analyzing historical performance than any human or any number of humans put together.

00:05:39.091 --> 00:05:43.242
So, from a portfolio management standpoint, you have AI.

00:05:43.242 --> 00:05:46.247
That's being incorporated into pretty much almost any platform for that.

00:05:46.788 --> 00:05:51.379
But aren't you also able to utilize that for your clients, oh?

00:05:51.439 --> 00:05:53.103
100% Right.

00:05:53.103 --> 00:06:09.754
So the thing that I think I have a better edge on when I'm using it, as compared to, maybe, a client using it by themselves, is that any technology that you're using, if you have a better understanding of the subject matter and what you're using that technology for, you are going to be able to use the technology better.

00:06:09.754 --> 00:06:25.817
So think about it this way If you were in high school and you were in math class, all right, and you have a math test and you have a calculator, you have a calculator that can help you do all the calculations, but you have no idea which equation you need in order to solve the problem.

00:06:25.817 --> 00:06:31.009
It doesn't matter if you have the calculator there, you don't know what equation applies to the problem that you're trying to solve.

00:06:31.901 --> 00:06:33.687
So you don't even know what to like chemistry class.

00:06:34.401 --> 00:06:35.692
So you don't even know which calculator.

00:06:35.692 --> 00:06:38.589
You don't even know which information you need to put into the calculator.

00:06:38.589 --> 00:06:44.749
Even though you have the tool that can provide you with the answers, you don't know what to put into it in order to get out the answer that you need.

00:06:45.230 --> 00:06:47.213
Yeah, that's a really good call out.

00:06:47.213 --> 00:06:48.194
Even you know.

00:06:48.194 --> 00:06:55.983
Again, I think most people listening probably have tinkered once or twice with chat, gpt.

00:06:55.983 --> 00:06:56.586
But it's all about the prompt.

00:06:56.586 --> 00:06:59.312
If you put in a garbage prompt, guess what Garbage in, garbage out.

00:06:59.312 --> 00:07:05.132
So it's the same concept of you have to know how to utilize the tool, you have to know how to prompt the engine.

00:07:05.132 --> 00:07:09.190
You have to understand that it's training and learning from you.

00:07:09.190 --> 00:07:16.814
If you are not utilizing it correctly, then it's not being trained correctly and you're never going to get the best possible outcome.

00:07:17.500 --> 00:07:22.952
That even goes back to conversations we've had about using LegalZoom to create a will.

00:07:22.952 --> 00:07:28.826
The issue that you run into there is that it's based upon the information that you put in.

00:07:28.826 --> 00:07:33.028
Now, you might be putting information in and you might be putting the wrong information.

00:07:33.028 --> 00:07:36.362
However, it's actually giving you the correct information for what you put in.

00:07:40.473 --> 00:07:44.622
Have you been listening to our podcast and wondering how am I really doing with my money?

00:07:44.622 --> 00:07:47.348
Am I doing the right things with my investments?

00:07:47.348 --> 00:07:50.052
Am I on track to reach my financial goals?

00:07:50.052 --> 00:07:51.814
What could I be doing better?

00:07:51.814 --> 00:08:07.043
If you answered yes to any of these questions, then it's time for you to reach out to Brandon to schedule your free yes, I said free 30-minute introduction conversation to see how his services could help make you the more confident moneymaker we know you could be.

00:08:07.043 --> 00:08:08.766
What are you waiting for?

00:08:08.766 --> 00:08:16.274
It's literally free and at the very least, you'll walk away feeling more empowered and confident about your financial future.

00:08:16.274 --> 00:08:17.939
Link is in our show notes.

00:08:17.939 --> 00:08:19.464
Go, schedule your call today.

00:08:22.716 --> 00:08:40.210
Yeah, but now that we are going through that pre-nup, post-nup process right for legal Zoom, et cetera, et cetera we've had those conversations of, like cheap can be expensive, right, You're going to Staples buying the DIY kit out of the box, You're printing it offline.

00:08:40.210 --> 00:08:50.562
Even the other night we were watching Love is Blind and she had printed off the prenup papers and put them down and said you know, here you go, which clearly that was not a collaborative process.

00:08:50.562 --> 00:08:53.618
But again, what are you putting in and what are you going to get out?

00:08:53.618 --> 00:08:59.903
So you think you're doing the right thing, but who knows what you actually are getting in, that legally kind of binding contract.

00:08:59.903 --> 00:09:01.426
It's certainly not the best it could be.

00:09:02.128 --> 00:09:05.976
I think another thing that AI does a really great job is there's tons of different budgeting apps.

00:09:05.976 --> 00:09:08.283
So essentially what a lot of these apps are?

00:09:08.283 --> 00:09:09.284
Account aggregators.

00:09:09.284 --> 00:09:11.881
You put in information for the different accounts you have.

00:09:11.922 --> 00:09:24.083
You know your bank account, credit card, whatever savings account, whatever it may be, and it's able to pull in all the information from the transactions, categorize them and give you some insights to your spending habits.

00:09:24.083 --> 00:09:37.342
I think obviously AI is great for that, because the only other way to track that is manually and that's looking at your statements at the end of each month and maybe putting into a spreadsheet and doing all that hard work, which obviously some people love doing it, and that's you know.

00:09:37.342 --> 00:09:42.716
If spreadsheets are your jam, be my guest, not my jam.

00:09:42.716 --> 00:09:43.779
I much rather work smarter, not harder.

00:09:44.081 --> 00:09:45.807
Well, and everybody's living on their phone.

00:09:45.807 --> 00:09:55.259
So the reality is is most of us would probably want to check our budgets and our spending on our phone, because it's our little pocket computer and so it's right there.

00:09:55.259 --> 00:10:06.676
Do you have any favorites now that mint is gone favorites.

00:10:06.696 --> 00:10:08.583
Now that mint is gone um, mint became I want to say became monarch money?

00:10:08.604 --> 00:10:08.884
no, it became.

00:10:08.884 --> 00:10:10.311
I think it became monarch people are raving about monarch.

00:10:10.351 --> 00:10:10.833
I don't think it's free.

00:10:10.854 --> 00:10:13.019
It's not free but people love the interface.

00:10:13.019 --> 00:10:13.961
They love that it's.

00:10:13.961 --> 00:10:21.206
It's really great kind of right out of the box, but you can also customize it for your needs and the u UI UX is fantastic.

00:10:21.206 --> 00:10:22.576
I've heard nothing but good things.

00:10:22.836 --> 00:10:29.684
Yeah, I haven't used it personally since it became monarch money, since I have planning software that I can use for that that I already pay for.

00:10:30.971 --> 00:10:33.399
We're not trying to have multiple subscriptions for the same thing.

00:10:33.919 --> 00:10:43.337
But even in those scenarios like so, for example with the account aggregation and categorizing of transactions, Sometimes AI doesn't get the categorization correct.

00:10:43.557 --> 00:10:43.818
Right.

00:10:44.100 --> 00:10:45.904
And you have to go back in and do it manually.

00:10:45.904 --> 00:10:51.206
But the nice thing is that it learns and it recognizes, when the new transaction comes in, where it should go.

00:10:51.206 --> 00:10:59.884
But there is still some human aspect to checking to make sure that things are done correctly and not just simply relying that the AI technology is at 100 percent.

00:11:00.424 --> 00:11:00.625
Right.

00:11:00.625 --> 00:11:12.422
Even we've had to do that in your planning software RightCapital where, I don't know, maybe like CVS was shopping and we know that it's pharmacy benefits because we're not shopping at CVS type thing.

00:11:12.422 --> 00:11:17.341
So you have to put a little bit of work in to get it to where you want it to be.

00:11:17.341 --> 00:11:20.350
But then it will work for you and it will learn and as you train it it will get better.

00:11:20.350 --> 00:11:22.736
And it will learn and as you train it it will get better.

00:11:23.538 --> 00:11:31.105
And one other way that people are using it, which really I wouldn't say is applicable to most of the population, is algorithmic investing.

00:11:31.105 --> 00:11:39.144
So that's going to be like some of the people that are doing the trading day trading and they're looking at you know times to buy, sell stuff of that nature.

00:11:39.144 --> 00:11:48.602
Now, obviously, that doesn't necessarily apply to most people, but it analyzes patterns and it does a much better job of analyzing patterns than you know, a single individual could do.

00:11:48.602 --> 00:11:52.298
And that's another way that AI is definitely being used and can be beneficial.

00:11:52.659 --> 00:11:52.880
Yeah.

00:11:52.880 --> 00:11:59.519
Are there any other ways that you feel like AI has a benefit in the financial planning world?

00:12:00.942 --> 00:12:18.063
Honestly, I mean other than maybe some of the back office stuff, when it comes to paperwork being done and stuff of that nature, yeah, those jobs could potentially be downsides, because I don't think they're going to be eliminated only because you do have to have somebody to manage, obviously, the technology itself to make sure things are still done correctly.

00:12:18.063 --> 00:12:22.125
But I definitely see from that standpoint like transactional standpoint.

00:12:22.125 --> 00:12:33.347
But the main thing you know from a client facing interaction that I would have, I would say it's more or less the investing aspects of the portfolio management, stuff like that.

00:12:33.794 --> 00:12:33.955
Yeah.

00:12:34.716 --> 00:12:40.702
So if we're thinking AI robo advisors right, everybody online is like, you can do it yourself.

00:12:40.702 --> 00:13:01.558
You don't need to pay somebody and like yes again, if you want to spend hours and hours and weeks and weeks and months and months learning proper financial planning, all the rules, the tax implications, you know, and then, on top of that, you know the checkups, we have an entire episode on DIYing your finances and all the things you're going to have to consider.

00:13:01.558 --> 00:13:06.428
But most people again, this is not where you spend your time, so you will miss things.

00:13:06.428 --> 00:13:14.559
So, talking about the robo-advisor, you know, is the robo-advisor going to ask you to update your beneficiaries after you go through the divorce?

00:13:14.559 --> 00:13:24.961
Is the robo-advisor going to tell you to up your life insurance now that you have kids or you bought a bigger house or you got a new job and you're making $200,000 more?

00:13:24.961 --> 00:13:35.206
Is the robo-advisor going to help you really make the most out of the comprehensive portfolio and all of the life stuff?

00:13:35.206 --> 00:13:39.140
I feel like the life stuff is what's so important that you don't want to miss out on.

00:13:39.400 --> 00:13:48.681
Yeah, I mean there is a draw to the Betterments Wellfronts, schwab, intelligent Portfolios and the main draw to that for most people, in all honesty, comes down to cost.

00:13:48.681 --> 00:13:50.116
That's.

00:13:50.116 --> 00:14:01.966
The reality of it is that I think people are trying to find the least expensive solution, and I completely understand wanting to make sure that you're not overpaying and being cost conscious.

00:14:01.966 --> 00:14:07.885
However, cheap isn't always the best option.

00:14:08.106 --> 00:14:09.168
Cheap can be expensive.

00:14:10.135 --> 00:14:21.649
And, at the end of the day, that's what this is, and the thing is, too, is that I think it's also there is full financial planning and investment management are not the same.

00:14:21.649 --> 00:14:27.587
Now, investment management can be part of financial planning, but investment management is not full financial planning.

00:14:28.716 --> 00:14:29.660
Can you expand on that?

00:14:29.802 --> 00:14:29.981
Yes.

00:14:29.981 --> 00:14:36.469
So with investment management, all someone is doing is saying, for example, like you have $100,000.

00:14:36.469 --> 00:14:38.739
You want to invest it in the market.

00:14:38.739 --> 00:14:47.927
It might ask you some questions around risk tolerance, which is a questionnaire that I give to people to just simply understand how they manage risk, how they react to risk.

00:14:47.927 --> 00:14:55.138
It's not the by all means indeterminate factor of how we're going to invest, but it's something that we can have a conversation about Now with a robo-advisor.

00:14:55.138 --> 00:14:57.065
It is, by all means, going to be the end result.

00:14:57.065 --> 00:15:09.145
So, for example, you might be someone that wants to be aggressive, but once you go through the risk questionnaire, you end up becoming conservative, and with most robo advisors, they're going to just automatically put you into a conservative as compared to working with me.

00:15:09.145 --> 00:15:11.220
Now we have a basis for a conversation.

00:15:11.220 --> 00:15:13.466
Why did you answer the questions this way?

00:15:13.466 --> 00:15:14.875
Did you understand the questions?

00:15:14.875 --> 00:15:20.844
And then maybe we might have a I have a conversation that leads you a better understanding of why we should be more aggressive.

00:15:20.844 --> 00:15:24.469
Thus we can now become, you know, invest in a more aggressive manner.

00:15:24.929 --> 00:15:30.657
As compared to a robo-advisor, it's really not going to have that back-to-back interaction and that explaining factor that comes along with it.

00:15:30.657 --> 00:15:46.865
Now, what it's going to do is simply, you know, taking that risk assessment how long do you approximately want to be invested in the market some aspect, because that's also going to be a determining factor of how aggressive you can be and then it puts together a portfolio for you, so it just simply manages the money that you gave it.

00:15:46.865 --> 00:15:54.149
So you hopped online, you had $100,000, you put it into the robo-advisor and they invest it for you.

00:15:54.149 --> 00:15:58.663
Now the one thing they're not going to do is make sure hey, do you have an emergency fund set up?

00:15:58.663 --> 00:16:01.227
Can you actually invest all this $100,000?

00:16:01.227 --> 00:16:07.100
Or would it be maybe better if you invested half of this $100,000 because you don't have an adequate emergency fund?

00:16:07.864 --> 00:16:10.898
Also, they didn't ask you questions about any other goals that you maybe want to achieve.

00:16:10.898 --> 00:16:13.770
Oh, by the way, you want to buy a house in the next two years.

00:16:13.770 --> 00:16:18.402
Maybe you don't invest the entire $100,000 so that you have a down payment for the home.

00:16:18.402 --> 00:16:20.645
It doesn't ask you all those questions.

00:16:20.645 --> 00:16:23.942
It's a very basic, straightforward kind of like.

00:16:23.942 --> 00:16:25.770
If you're going to be a DIYer, it helps out.

00:16:25.770 --> 00:16:33.240
Or if you're someone that's maybe just getting started in investing, it can help you out as far as doing that, but it's not full financial planning at all.

00:16:33.240 --> 00:16:35.304
It is strictly investment management.

00:16:35.304 --> 00:16:37.498
You give it the money, it manages it.

00:16:37.498 --> 00:16:38.961
It doesn't ask you any other questions.

00:16:39.903 --> 00:16:43.210
Yeah, and I know you're so big on goals and what you say.

00:16:43.210 --> 00:16:44.894
It drives me crazy.

00:16:44.894 --> 00:16:50.615
But I obviously understand why you say this all the time when people ask you questions and your response is it depends.

00:16:50.615 --> 00:16:51.337
It depends.

00:16:51.337 --> 00:16:55.145
And, like you said, should everybody max out their 401k?

00:16:55.145 --> 00:16:56.028
It depends.

00:16:56.028 --> 00:16:57.076
What are your goals?

00:16:57.076 --> 00:16:59.019
Are you going to need to be more liquid?

00:16:59.019 --> 00:16:59.320
Do you?

00:16:59.320 --> 00:17:03.187
Are you saving for that down payment on the home, whatever that might be?

00:17:03.889 --> 00:17:12.776
Like you said, the robo advisor for lack of a better word is not going to give you that human touch of conversation to really dig into what are your goals?

00:17:12.776 --> 00:17:14.278
What do you want your money to do for you?

00:17:14.278 --> 00:17:19.195
How do you envision your life into 5, 10, 20 years, etc.

00:17:19.195 --> 00:17:27.369
So I think those are the conversations that really I mean, you're great at them but really help people understand.

00:17:27.369 --> 00:17:30.000
Oh, these are why we're making the decisions we're making.

00:17:30.000 --> 00:17:45.422
When you were talking about, you know, plugging in your money, talking about your, maybe your retirement age, it reminded me of our 401k episode where we talked about the target date fund and like, yeah, maybe if you're auto-enrolled and you don't do anything, you'll be okay.

00:17:45.422 --> 00:17:55.420
But then we talked about my specific 401k, which is more aggressive than what the target date fund would have provided, because we know we're not touching that money.

00:17:55.420 --> 00:18:07.642
We know that this is a long-term play, so let's be as aggressive as possible, because I'm 20 years away from quote-unquote or 25 years away from quote-unquote retirement age, so let's maximize those years.

00:18:07.875 --> 00:18:14.009
I think so that with the robo-advisors they're also going to basically operate kind of on the rule of thumb rather than the nuance.

00:18:15.494 --> 00:18:16.916
And so much is nuanced right with people's situations.

00:18:16.916 --> 00:18:17.777
It's personal finance Right.

00:18:17.777 --> 00:18:18.778
With people's situation.

00:18:18.817 --> 00:18:19.778
It's personal finance.

00:18:19.979 --> 00:18:20.159
Yeah.

00:18:20.199 --> 00:18:25.983
So you know, rule of thumbs don't always work for everybody at a given time.

00:18:25.983 --> 00:18:32.128
So the biggest thing with it, too, is that you're going.

00:18:32.128 --> 00:18:35.672
You also don't get this aspect of, for example we were literally talking about the other day.

00:18:35.672 --> 00:18:41.467
There's a lot of rules in place that people can easily get confused.

00:18:41.467 --> 00:18:57.464
So, for example, one of the things that I don't see enough of on social media, I believe, is that with IRAs, individual retirement accounts if you just hopped on social media, you would think that everyone could take advantage of a traditional IRA and the sense of putting money away pre-tax.

00:18:57.464 --> 00:19:10.446
So when you put money into the IRA at the end of the year, when you file your taxes, you're letting them know that you put, say, $7,000 into an IRA and that lowers your taxable income for the year by $7,000 because it's going in pre-tax.

00:19:10.446 --> 00:19:14.076
So they think that they could just all take advantage of that pre-tax contribution.

00:19:14.455 --> 00:19:16.498
That's what the internet says, so it's got to be real.

00:19:16.837 --> 00:19:17.057
No.

00:19:17.057 --> 00:19:26.002
Once you exceed a certain income threshold, you cannot deduct that contribution in an IRA.

00:19:26.443 --> 00:19:32.468
So you can't just to be clear, because we had a long discussion about this you can put that $7,000 in the IRA.

00:19:32.468 --> 00:19:34.608
That is absolutely go put that away.

00:19:34.608 --> 00:19:37.329
If you have it, you know, let it sit there, let it grow.

00:19:37.329 --> 00:19:51.605
But what Brandon is saying is you, if you are high earner, you might not be able to get the tax benefit which is really why people want to put that money in the IRA.

00:19:51.625 --> 00:19:52.426
I mean there's other benefits to it.

00:19:52.426 --> 00:20:00.721
Because, um, I mean there are other benefits to it, but not in the same fashion as if you were able to take the deduction, because there was different ways that I would go.

00:20:00.721 --> 00:20:09.638
There's a different way that I use it for for clients that we don't need to get into here, but you would have the internet, would have, you think, then everyone can do that deduction and it's stuff like that.

00:20:09.638 --> 00:20:17.401
When it comes to the little specific rules or, like you know, with contributions to a Roth IRA, if you make a certain amount of money, you can't contribute directly to a Roth IRA.

00:20:17.401 --> 00:20:18.742
You have to do a different process.

00:20:18.742 --> 00:20:27.579
And it's those little rules where, like, if you don't know them, I don't know if AI is going to give that answer to you, because it's based upon what you put in and how you prompt it.

00:20:28.000 --> 00:20:39.462
Yeah, well, and I think, too, what you're kind of alluding to is it really is going back to like the goals of what you want your money to do for you, because money is a tool.

00:20:39.462 --> 00:20:56.980
So also, I think you have so many conversations about the emotional aspect right Of money, and you're you have these conversations all the time and you're always joking around saying like I should have gotten a psychology degree, because so we all have an emotional attachment to our money.

00:20:56.980 --> 00:21:08.415
We all want to do what's important to us with our money, and so I feel, like you, you do a lot of handholding and reassuring with your clients to let them know, hey, we've planned for this.

00:21:08.415 --> 00:21:13.651
Or you're, you're good, go, you know, get that nice closet install.

00:21:13.651 --> 00:21:15.939
Or go get that bathroom remodel.

00:21:15.939 --> 00:21:26.987
Or yeah, you can afford the second lake house, like I feel like you are constantly reminding people of like hey, we've done this work and now you're actually in a position to spend the money the way we've planned for it.

00:21:26.987 --> 00:21:28.730
Go, do that, it's okay.

00:21:29.336 --> 00:21:34.321
I mean, there's so many things in life that we know that we should do and it's not just within finance.

00:21:34.321 --> 00:21:35.820
For example, your health.

00:21:35.820 --> 00:21:39.196
You should need a bunch of unhealthy food, you should exercise.

00:21:39.196 --> 00:21:41.597
We all know these things, but why don't we do them?

00:21:42.578 --> 00:21:44.440
Because there's nobody holding us accountable.

00:21:44.440 --> 00:21:46.280
We don't have a partner.

00:21:46.280 --> 00:21:47.961
Buddy workout accomplice.

00:21:47.961 --> 00:21:49.522
We have to get over our head trash.

00:21:49.542 --> 00:21:51.423
We have to deal with, you know, maybe past traumas.

00:21:52.523 --> 00:21:52.845
So much.

00:21:52.924 --> 00:21:56.507
And understand a financial literacy like you know, a lacking of understanding of certain things.

00:21:56.507 --> 00:22:06.913
There's so many things that go into making a decision and then taking action, and it has nothing to do with the black and white numbers.

00:22:07.252 --> 00:22:14.946
Yeah, and you help move people along with that decision making, with the actions that need to be taken.

00:22:14.946 --> 00:22:19.439
I don't know that AI is going to build you a to-do list of what to do, and even if it does, it doesn't make you do it, right, right.

00:22:19.439 --> 00:22:20.760
And even if it does, it doesn't make you do it, right, right.

00:22:20.780 --> 00:22:28.550
So, like it's not, ai is not going to constantly call you and send you emails and remind you of your goals that you were, you know you want to accomplish and make sure that you get these things done.

00:22:28.550 --> 00:22:36.903
Yeah, Because if it was simple, as you knowing, you needed to know the information in order to do something AI doesn't need to help you.

00:22:36.903 --> 00:22:38.045
We had, you still have the internet.

00:22:38.045 --> 00:22:39.086
You can still look things up.

00:22:39.086 --> 00:22:40.147
You could have been already doing that.

00:22:40.147 --> 00:22:51.060
So if you're someone that has a hard time with actually completing stuff, it doesn't matter what AI does until they get to the point where AI can literally be a second version of

00:22:51.080 --> 00:22:51.161
you.

00:22:51.161 --> 00:22:51.422
That does it.

00:22:51.422 --> 00:22:52.163
Yeah, it doesn't matter.

00:22:52.163 --> 00:22:53.748
You know you're not.

00:22:53.748 --> 00:22:55.236
You have to take the action.

00:22:55.236 --> 00:22:59.082
And also, the thing is, too, is that we always talk about what the financial planning aspect is.

00:22:59.082 --> 00:23:02.426
It's not a one time thing, it's continuous.

00:23:02.426 --> 00:23:08.999
So you're going to keep continuing to revisit the plan, continuously, monitoring things in your life.

00:23:08.999 --> 00:23:12.457
What's changing, what has changed in my life that now is going to alter the plan.

00:23:12.457 --> 00:23:18.760
Like you know, if you're somebody that has, you know you're married, have two kids and that's all you planned on having.

00:23:18.760 --> 00:23:19.844
I have my plan in place.

00:23:19.844 --> 00:23:22.009
Oops, have two kids, that's all you planned on having.

00:23:22.009 --> 00:23:22.530
I have my plan in place.

00:23:22.530 --> 00:23:22.811
Da da, da da.

00:23:22.811 --> 00:23:23.554
Oops, I didn't get a vasectomy.

00:23:23.554 --> 00:23:25.920
Now we have a third kid and we have friends.

00:23:26.741 --> 00:23:27.964
We all know where babies come from.

00:23:27.984 --> 00:23:33.396
That has happened too, where they didn't necessarily plan to have three kids, but they're happy they have them, but it changes the plan.

00:23:33.396 --> 00:23:50.365
My point is is that you're going to always have to constantly change things and sometimes you might have had something changed in your life and you, by yourself as an individual, aren't going back to revisit a plan that was based upon different parameters, whereas as your advisor, I'm constantly following up with you hey, what's going on new in your life?

00:23:50.365 --> 00:23:53.644
And even giving some prompts sometimes, because sometimes people are like, oh no, nothing's new.

00:23:53.644 --> 00:23:55.777
Well, you know, job's still the same.

00:23:55.777 --> 00:23:58.221
You know, still making the same income, da, da, da, stuff like that.

00:23:58.260 --> 00:24:04.509
Oh no, I got a promotion and da, da, da, da, da, right the prompt memory is as far as like what has actually happened.

00:24:05.190 --> 00:24:06.010
Ai doesn't do that.

00:24:10.894 --> 00:24:19.289
Yeah, I think one of the other things you know talking about that emotional aspect of finance is I mean, you have clients where something will happen right In this climate.

00:24:19.289 --> 00:24:29.666
Something's constantly happening in the news and we can can't even keep up and we're just being flooded with like information, misinformation, and you're having to decipher like, oh my gosh, should I be panicking right now?

00:24:29.666 --> 00:24:31.638
So I feel like you also have that.

00:24:31.638 --> 00:24:47.739
You, you often say that you're kind of the stop, the stop sign between your clients and bad decisions, Whereas, like, if you're just kind of plugging things into a robo advisor, they're not going to say, hey, don't forget, this is a 20 year plan.

00:24:47.739 --> 00:24:55.288
We're not going to panic, we're not going to move money, You're not going to start storing it in a shoe box under your bed, Like it will be okay.

00:24:55.308 --> 00:24:57.777
I'm the wall between them and doing something stupid.

00:24:57.777 --> 00:25:04.576
Yeah, and at that I'm not saying my clients are stupid, because my clients are extremely brilliant people in so many different ways and way smarter than me in a lot of aspects.

00:25:05.178 --> 00:25:06.942
But even this.

00:25:07.002 --> 00:25:20.880
Yes even the smartest people that thoroughly understand the plan that we are working on, they have great financial literacy, they still are emotional human beings and you have an emotional attachment to your own money.

00:25:21.320 --> 00:25:40.680
So, even though you know hey, I know this information from a black and white standpoint, but this is what I'm feeling I have those conversations often with clients to be like to bring them back down, talk them off the ledge and also just reinstill confidence and the plan that we had put in place and we talked through.

00:25:40.680 --> 00:25:50.266
And often it's sometimes just me listening to what's going through their head, because I don't want to just simply say to someone don't worry about it, because that doesn't work.

00:25:50.266 --> 00:25:52.060
It doesn't work that way.

00:25:52.060 --> 00:26:18.622
I need to really listen to them and understand what it is that is worrying them and just have a conversation, human to human, human, to maybe help not maybe eliminate all their you know fear or emotions that are going on at that moment, but to lessen them and kind of bring them back to the logical side of thinking when it comes to certain things yeah, what about the like ethical fiduciary responsibilities?

00:26:18.762 --> 00:26:22.269
I mean, I feel like I'm sure you're signing your life away.

00:26:22.269 --> 00:26:27.655
You know you're going to click that like accept terms and conditions that nobody reads but we probably should.

00:26:27.655 --> 00:26:32.327
And then something goes wrong and you're like oh wait, I didn't mean to do that.

00:26:32.327 --> 00:26:44.598
And they're going to be like cool, bro, you did it and you clicked accept conditions, like what about that kind of stuff where people might make big mistakes that cost them a lot of money?

00:26:45.079 --> 00:26:53.526
Well, I can say from the fiduciary standpoint for example, a lot of these AI products are specific to the financial institution that you're working with.

00:26:53.526 --> 00:26:58.469
You know, and at the end of the day, that financial institution is trying to make money.

00:26:58.469 --> 00:27:07.949
So, even though they're trying to help you out, bottom line is that they're trying to make money, stay in business, make money, make their shareholders wealthy.

00:27:07.949 --> 00:27:15.528
So, ultimately, at the end of the day, some of the things that they may suggest, the things that they may do, aren't always necessarily putting you first.

00:27:15.528 --> 00:27:17.959
It's going to be putting the company first.

00:27:17.959 --> 00:27:27.025
Whereas I'm not beholden to a specific company, the only quote, unquote company I'm beholden to is my own company, and the basis of my own company is to do what's best for my clients.

00:27:27.555 --> 00:27:42.595
Well, and that's why you went independent to begin with because, that way, you can use whatever company you want for whatever products are needed, without having to feel like, oh, I can only you know prescribe you Fidelity products or only Schwab products or only whatever.

00:27:42.595 --> 00:27:49.189
Like now you can go anywhere and make sure that your clients are getting the best product, the best price, etc.

00:27:49.189 --> 00:27:54.688
I feel like that was one of your really big motivators in opening up your own planning firm.

00:27:55.315 --> 00:28:02.689
Yeah, because when you're utilizing just one company, then, like you said, like you're not maybe using a full tool belt.

00:28:02.689 --> 00:28:05.063
You only have a few select tools.

00:28:05.063 --> 00:28:12.628
When I switched to being independent, I could have an entire tool belt plus some toolbox tool shed everything.

00:28:13.494 --> 00:28:18.448
Well, I feel like, too, one of the things that comes up often is like life insurance right.

00:28:18.448 --> 00:28:26.371
So if you're, yeah, you can get life insurance through State Farm, but you're going to get State Farm life insurance right, so do you're yeah, you can get life insurance through State Farm, but you're?

00:28:26.411 --> 00:28:27.794
going to get State Farm life insurance right, so do they have.

00:28:27.794 --> 00:28:29.976
Well, you just made a face, well, the thing is all right.

00:28:29.976 --> 00:28:30.999
So I'm not saying if you have State.

00:28:31.019 --> 00:28:31.440
Farm life insurance.

00:28:31.579 --> 00:28:31.820
That's great.

00:28:31.820 --> 00:28:32.583
It's better than having nothing.

00:28:32.583 --> 00:28:35.769
I am of the mindset where you can't do everything great.

00:28:35.769 --> 00:28:38.780
Mm-hmm I don't think of life insurance in State Farm.

00:28:38.800 --> 00:28:39.702
Walmart has everything.

00:28:39.702 --> 00:28:41.586
Walmart doesn't do any like Walmart doesn't like.

00:28:41.626 --> 00:28:42.608
Walmart has everything.

00:28:42.608 --> 00:28:48.678
Walmart doesn't do everything?

00:28:48.678 --> 00:28:49.320
Great, they do everything.

00:28:49.320 --> 00:28:50.907
Okay, now, granted, obviously the company makes a ton of money.

00:28:50.928 --> 00:28:54.898
We're not gonna even go there, but but I think I would prefer do you think the best mechanics work at Walmart?

00:28:57.423 --> 00:29:04.566
I'm just saying like if I was right, if you have a brand new BMW, are you taking it to Walmart if mechanics get fixed?

00:29:04.846 --> 00:29:05.528
or auto tune.

00:29:05.836 --> 00:29:18.101
No, no, you're going to take it to the specialist and, like, for example, state Farm, does do certain types of insurance Well homeowners insurance, you know, boating insurance, stuff of that nature, that is their bread and butter.

00:29:18.101 --> 00:29:21.134
They were just like we sell all these other types of insurance.

00:29:30.338 --> 00:29:33.059
So why not offer life insurance?

00:29:33.059 --> 00:29:36.241
And life insurance is not their main product?

00:29:36.241 --> 00:29:42.424
Crossfitter, but you're super fit, but technically your BMI is, you know, making you morbidly obese.

00:29:42.424 --> 00:29:46.987
Or maybe you enjoy some cannabis every now and then, right Like.

00:29:46.987 --> 00:29:55.710
You know which companies to go to for those things, whereas you know maybe the state farms of the world are going to deny you.

00:29:55.710 --> 00:30:07.606
But you know who to reach out to for specific types of policies, to where people are going to have the best chance of getting properly insured at a right you know, at a good rate, etc.

00:30:07.606 --> 00:30:14.054
So again, that personalized, nuanced experience you're not going to get from a robo advisor.

00:30:14.054 --> 00:30:16.423
You're not going to get that from going to state farmcom.

00:30:16.423 --> 00:30:24.138
No offense to state farm, if you want to sponsor the podcast, let us know, but you know I mean it just is what it is.

00:30:24.138 --> 00:30:33.646
And so, again, just going back to that human touch, understanding goals, nuances, things that are specific to you, a robo-advisor is not going to do that very well.

00:30:34.067 --> 00:30:45.522
Also, the thing is with a robo-advisor, what they're really good at is logic, so they are often going to provide you the most logical answer to the question that you ask it.

00:30:45.522 --> 00:30:58.446
I know from personal experience within finance that sometimes the most logical answer is not the best answer to actually have in practice with somebody based upon their personal individuality, and you're married to me, so you know that sometimes logic is not the answer that I choose because it just is not going to me.

00:30:58.527 --> 00:31:03.684
So you know that sometimes logic is not the answer that I choose, because it just is not going to work.

00:31:03.986 --> 00:31:10.946
I always, you know, when I'm talking to clients, I always say, like you know, more than likely there's multiple ways to accomplish a given goal.

00:31:11.815 --> 00:31:20.784
Now, for me, if there's a mathematical aspect to it me personally, individually I'm going to choose the most logical mathematical way to go about something.

00:31:20.784 --> 00:31:31.945
So, for example, let's just say debt pay down, I'm always going to want to attack, say, the debt with the highest interest rate so that we end up paying less technically over the time period of paying off the debt.

00:31:31.945 --> 00:31:34.623
That doesn't always work for some people.

00:31:34.623 --> 00:31:47.087
Some people need those small wins where they're tackling the debt with the lowest balance but it might not have the highest interest rate, so technically over the time frame of paying, tackling the debt with the lowest balance but it might not have the highest interest rate, so technically over the timeframe of paying off the debt, they do pay a little bit more.

00:31:47.087 --> 00:31:57.596
But this is the way, from an emotional and behavioral standpoint, that would work for them to be on board with doing it and stay on the course, and AI is not going to necessarily give you that.

00:31:58.076 --> 00:32:05.817
Yeah, is there a way for AI and financial planning humans to work together?

00:32:05.958 --> 00:32:11.189
Oh yeah, I mean, I personally use AI on a regular basis within my practice.

00:32:11.189 --> 00:32:12.979
We kind of said it earlier.

00:32:12.979 --> 00:32:22.663
One of the ways that I use it is within my meetings and so that I don't have to actually take notes myself, because I used to take notes by hand back in the day which is distracting.

00:32:22.765 --> 00:32:29.115
It is and but it's the only way that I was at the time was the only way I could get the information and I didn't like it, but like it's what I had to do.

00:32:29.115 --> 00:32:43.318
Now I have fathom that I use as my meeting note taker and I could be fully engaged in the conversation and it's taking all the notes for me, and then it creates my follow-up email with the uh for the recap and the action items that need to be completed before our next meeting.

00:32:44.201 --> 00:33:15.597
If you want to sponsor the podcast, yes, does a great job of that and, once again, when it comes to analyzing portfolio construction for clients, 100% use chat, uh, gbt, gpt for that, all other types of AI, um, because the reality is is that, once I just said, you have to learn how to utilize the tool from a prompt standpoint for what you're trying to accomplish, and it's easier to do that when you have a firm understanding of the knowledge of the um subject matter that you're dealing in.

00:33:15.597 --> 00:33:25.207
You know, like someone who doesn't have the background that I have is not going to be able to hop on chat, gbt and recreate the same things that I do.

00:33:25.207 --> 00:33:36.346
You're just not, because you don't have the knowledge base of what the feed chat, gpt, and that knowledge base came from hours upon hours upon years upon years of understanding finances.

00:33:36.867 --> 00:33:40.585
Right, well, so you can use AI.

00:33:54.385 --> 00:33:55.086
Finish the sentence.

00:33:55.086 --> 00:34:16.987
You can use AI or robo planners if, say, you are a 25 year old, you have a W-2 income, you don't own a home, you don't have children, you're not married and you just have a little bit of money that you are looking to invest outside of your 401k plan, that you want to open up a traditional IRA and you qualify to contribute to a traditional IRA, but you need some help putting together a portfolio.

00:34:17.650 --> 00:34:20.661
Okay, one thing we didn't talk about are the fees.

00:34:20.661 --> 00:34:25.023
Obviously, you're not getting this for free, so is there a range of what you can kind of typically see.

00:34:26.346 --> 00:34:34.766
I would say that I was seeing maybe anywhere from like 0.2 to 0.4% of the percentage of the.

00:34:34.766 --> 00:34:46.942
But I can kind of equate it to you have financial advisors who will do that in significantly more, for anywhere from 0.75 to 1.1%.

00:34:48.244 --> 00:34:57.483
Yeah, but even you know again, the internet will show you that paying somebody over 20 or 30 years 1% of your portfolio can cost you hundreds of thousands of dollars.

00:34:57.663 --> 00:35:14.860
So I would say this if you are able to 100%, completely replicate replicate replicate the advice, performance, everything that comes with an expert financial planner who has years of experience.

00:35:14.860 --> 00:35:18.603
If you can replicate that on your own, then yeah, obviously you shouldn't pay a financial advisor.

00:35:18.603 --> 00:35:19.250
You probably should just be one and do it yourself.

00:35:19.250 --> 00:35:19.721
Then yeah, obviously you shouldn't pay a financial advisor.

00:35:19.721 --> 00:35:22.597
You probably should just be one and do it yourself.

00:35:22.597 --> 00:35:29.108
But if you cannot do any of that, are you going to pay a financial advisor?

00:35:29.108 --> 00:35:33.940
Yes, but I can guarantee you that you're going to lose significantly more money by making errors.

00:35:34.516 --> 00:35:36.041
Oh, and time, time and money.

00:35:36.041 --> 00:35:37.364
Yes, time and money.

00:35:38.277 --> 00:35:53.818
Because it's not an apples to apples comparison, because the, you know, the statement that you just made is assuming that the person who is investing on their own, as the individual consumer, has all the knowledge and can do all the things that the financial planner does yeah, and that's not the case.

00:35:53.838 --> 00:35:58.518
Not the case, yeah like I said, if it is the case, then you are the point zero, zero, zero, zero.

00:35:58.518 --> 00:35:59.862
One percent of the population.

00:35:59.862 --> 00:36:05.824
That is not a financial planner that knows the information, but more than likely you work in some aspect of finance.

00:36:05.824 --> 00:36:15.101
Like I have yet to meet someone that has no connection to working currently in finance or previously worked in finance and is able to do these things.

00:36:15.101 --> 00:36:23.338
And even if you work in finance, you can work in completely different areas because you have people that are, you know, working like derivatives.

00:36:23.338 --> 00:36:40.516
You know which is a much more complicated financial product, but they don't work in personal finance and they also understand emotional bias still comes into it, even sometimes when you know exactly what you're supposed to do yeah, so you should work with a human financial planner if.

00:36:41.498 --> 00:36:50.346
If none of the things I just previously said apply to you, you have a family, you have a business, you have complex estate planning needs.

00:36:50.847 --> 00:36:53.849
You're preparing for retirement major life changes.

00:36:53.929 --> 00:36:58.759
Honestly, at the end of the day, if you're not a DIYer, Like a true good DIYer If you're not a true.

00:36:58.759 --> 00:37:00.945
Diyer that's going to consistently keep up with this.

00:37:00.945 --> 00:37:03.599
You have the time to do it, you enjoy doing it.

00:37:03.599 --> 00:37:07.228
Then you're probably going to get a little bit much, not probably.

00:37:07.228 --> 00:37:12.166
You are going to get much more bang for your buck working with a good financial planner.

00:37:12.166 --> 00:37:13.068
Now remember what I always say.

00:37:13.068 --> 00:37:16.197
I always say good because there's bad in every industry.

00:37:16.498 --> 00:37:16.759
Yeah.

00:37:17.398 --> 00:37:24.405
But if you find one that works well with you and your personality, then their you know, their fee is going to pay for itself 10 times over.

00:37:25.748 --> 00:37:38.206
I mean, I think, too, what you said earlier about that accountability, the handholding, the, actually the taking action part right, that's something we talked about early on in 2025 is like this is the year you should take action.

00:37:38.206 --> 00:37:45.264
I mean, we have friends who are financially very savvy, multimillionaires, etc.

00:37:45.264 --> 00:37:56.121
And they still, right, like they don't have wills, they don't have trust, they don't have things in place to protect their assets in the way that you would want to protect your assets.

00:37:56.121 --> 00:37:58.971
Again, it has nothing to do with how smart you are.

00:37:58.971 --> 00:37:59.693
Sometimes.

00:37:59.693 --> 00:38:04.766
It's just a matter of not prioritizing what you know you should be doing from a time perspective.

00:38:04.766 --> 00:38:09.884
If you work with the Brandons of the world, you know somebody that's a good financial planner.

00:38:09.884 --> 00:38:16.485
They are going to make sure that you get those things done, and that could be the difference between probate and losing generational wealth.

00:38:16.485 --> 00:38:18.632
I mean Probate and losing generational wealth.

00:38:20.074 --> 00:38:27.369
I mean and the thing is too is that you can make a small error in one given year and it just builds upon itself year after year.

00:38:27.369 --> 00:38:51.340
So, for example, going back to the example of talking about contributing to, say, a Roth IRA, and you actually make too much money to contribute to a Roth IRA, you have to take certain steps to either take that money, take that contribution back out, which also does come with a penalty, or you could what's called recharacterize it into a traditional IRA.

00:38:51.340 --> 00:38:57.480
Whatever it may be, if you don't do that, you are going to be penalized, and it's not a one-time penalty.

00:38:57.480 --> 00:39:07.349
Now, that contribution that's in there, that should not have been in there, and it's also growing, you are now going to be penalized on a daily basis, oh, daily daily until you fix it.

00:39:08.978 --> 00:39:11.023
That's just the irs rules and guidelines.

00:39:11.023 --> 00:39:20.139
With that that you were going to be punished like once it, once you pass the deadline for the standard time frame to correct it without any sort of penalty.

00:39:20.139 --> 00:39:25.088
Once you pass that deadline, that penalty is going to be assessed daily until you fix it.

00:39:25.329 --> 00:39:40.481
So if you don't know that that issue exists now, imagine you know 20 years now later yeah, I mean, you never know what you don't know like you know, say, you say you had, like I said you had that one year, but then next year, the year after that, you realize, oh, you know, I make too much, I can't do this again.

00:39:40.481 --> 00:39:44.481
You never fixed the first problem, wow, and now it's just compounding.

00:39:44.481 --> 00:40:01.536
So, like I said, there's small things like that that if you don't know that and you don't specifically put information like that into these AI tools, you're not going to get the answer out that you really need to make sure that you're doing the right thing, and that's where advisors come to play, and that's where advisors come to play Also too.

00:40:01.536 --> 00:40:07.119
For example, if you're working with me and I told you to do something and I was wrong, I have E&O insurance.

00:40:07.119 --> 00:40:07.561
You can sue me.

00:40:08.875 --> 00:40:19.121
So for example I'm just simply stating that if I told you to contribute to a Roth IRA and you don't make enough, you made too much money to contribute directly to a Roth IRA and you have that issue.

00:40:19.121 --> 00:40:27.288
You could turn around and sue me, so you have a fallback in regards to if that issue occurs With AI.

00:40:27.288 --> 00:40:28.188
You're just SOL.

00:40:36.655 --> 00:40:37.275
Yeah, you got got Got to fix it.

00:40:37.275 --> 00:40:39.340
So what would you say are the main takeaways between robo-advisors working with a human?

00:40:39.340 --> 00:40:41.646
Do you have any challenges for our listeners today?

00:40:41.646 --> 00:40:42.534
What do you want them to do?

00:40:43.396 --> 00:40:49.175
First and foremost, I would say, understanding from a basic, high level view who you are as a person.

00:40:50.157 --> 00:40:51.320
You said that a lot of times.

00:40:51.320 --> 00:40:51.983
Who are you?

00:40:52.003 --> 00:41:05.244
Because everything the way that you go about doing certain things like, for example, from a financial planning standpoint it's based on understanding, first of all, who you are as a person, because that's the one thing that I'm trying to understand when I sit down with a client first who are you as a person?

00:41:05.244 --> 00:41:10.822
Because not the same different people need different things and they're going to react to things differently as well.

00:41:10.822 --> 00:41:12.536
So understand who you are as a person.

00:41:12.536 --> 00:41:13.760
Are you a diy?

00:41:13.760 --> 00:41:15.585
Are you not a diy?

00:41:15.585 --> 00:41:17.693
I would say 99 of the population.

00:41:17.693 --> 00:41:23.086
I honestly believe that there's a much smaller percent of the population that's DIY-er than what people believe.

00:41:23.367 --> 00:41:23.568
Yeah.

00:41:23.735 --> 00:41:26.764
When it comes to their finances, like truly being able to be a DIY-er.

00:41:27.335 --> 00:41:34.699
But even then, you've chatted with DIY-ers and there's always something that they miss and, honestly, it's basic.

00:41:35.195 --> 00:41:36.362
Often it's something basic.

00:41:36.362 --> 00:41:38.277
I'm like did you look at this?

00:41:38.277 --> 00:41:39.559
No, that's the first thing I feel like, did you?

00:41:39.599 --> 00:41:45.588
look at this, no, and that's the first thing I feel like I mean, have you met anybody where you're like, yeah, they're a true awesome DIYer.

00:41:45.829 --> 00:41:45.969
No.

00:41:47.434 --> 00:41:52.900
Cause I feel like all the conversations we've had, I mean outside of other financial advisors.

00:41:52.900 --> 00:41:55.284
No, no, no, Like normal people, no yeah.

00:41:55.565 --> 00:41:56.387
Cause you don't have time.

00:41:56.387 --> 00:41:58.090
Right, you don't have the time.

00:41:58.090 --> 00:42:01.498
Right, you don't have the time.

00:42:01.498 --> 00:42:01.759
It's just.

00:42:01.759 --> 00:42:06.898
The reality is that you know everyone that I've met that says they're diy, they have a lot of other things going on in their life and are they a diy because they're trying to save money?

00:42:06.898 --> 00:42:07.621
Oh always.

00:42:07.641 --> 00:42:17.396
That's the only reason people diy yeah that's the only reason people diy is they want to save money, which is, you know, I understand, because you know me, I'm a frugal person by nature as well.

00:42:17.396 --> 00:42:26.989
But I also realized that there's certain areas that make more sense to maybe not cut corners and just just for a buck Um, so are you a DIY or not?

00:42:26.989 --> 00:42:33.599
But then there, like I said, there's ways that you can use AI, but you need to know when to use it and when not to use it, you know.

00:42:33.599 --> 00:42:52.025
So, if you are just simply, if you really don't want to have a conversation about how to invest a certain amount of money, you just want a very simple, straightforward, vanilla way of investing it, a AI can help you out with that 100%, and it also can make some things a little bit easier.

00:42:52.025 --> 00:43:00.085
So, like, one of the things that, like I've used the Schwab portfolio investor with is like direct indexing.

00:43:00.085 --> 00:43:05.403
Now, that's going to go over a lot of people's heads, but that's just me stating that there are uses for it.

00:43:07.449 --> 00:43:22.161
I mean, if you're not budgeting or tracking your spending, maybe a good place to start with AI in finance would be to download one of the budgeting apps and try to get organized and really understand well what money is coming out, what money is coming in.

00:43:22.161 --> 00:43:25.925
You know, oh, you're double paying for this subscription, whatever it might be.

00:43:25.925 --> 00:43:29.494
You know, it's a good way to go ahead and aggregate that information.

00:43:30.056 --> 00:43:36.409
I think in certain aspects, it can be a learning tool to help you along the way to increase your financial literacy.

00:43:36.409 --> 00:43:43.949
So, for example, like if you're a beginner, hey, I'm a 25-year-old male.

00:43:43.949 --> 00:43:46.043
I make approximately this amount of money.

00:43:46.043 --> 00:43:49.483
I am new to investing.

00:43:49.483 --> 00:43:54.304
What are the top five books on investing you would recommend that I read?

00:43:55.867 --> 00:44:04.918
Love that, or podcasts you should listen to, or podcasts yes, it helps tailor the information in some aspects if you know what to put in now.

00:44:04.918 --> 00:44:30.978
Like I said once again, ai in of itself is something that you have to learn and understand how to use, to get better at it and actually fully utilize it, where I think majority of the population doesn't do that or doesn't even care to do it at this point in time yeah but also once again time all this comes back to time, like, if you have the time and you want to utilize your time this way, hey, more power to you.

00:44:31.378 --> 00:44:49.027
but I could tell you for me, for me personally, even though I do this for living myself we're hoping to get to a point, money-wise, where a lot of this stuff maybe I you know I'm overlooking it but handing it off to somebody else, because instead of me spending so much time doing it, I want to spend time with my family and my kids.

00:44:49.514 --> 00:44:51.576
Yeah, absolutely so.

00:44:51.576 --> 00:45:02.106
Challenge figure out how you can use AI in your life, if you have used a robo-advisor of some sort, and whether you had a great experience or not so great experience.

00:45:02.106 --> 00:45:03.481
You know, slide in our DMS.

00:45:03.481 --> 00:45:04.445
Shoot us an email.

00:45:04.586 --> 00:45:05.572
We'd love to hear all that stuff.

00:45:05.632 --> 00:45:07.237
Yeah, we would love to cause.

00:45:07.277 --> 00:45:08.139
It's just my opinions.

00:45:08.139 --> 00:45:10.244
That's like this isn't, you know, fact-based.

00:45:10.244 --> 00:45:12.978
So I'm always open to hearing other people's experiences.

00:45:13.239 --> 00:45:16.603
Yeah, and if it's been a good experience, you know, certainly let us know.

00:45:16.603 --> 00:45:19.909
If you have a Ooh, a horror story, maybe let us know.

00:45:20.972 --> 00:45:28.597
Or you know, if you already have a financial advisor, you know, let us know about how that experience far exceeded anything that AI could currently do for you.

00:45:29.219 --> 00:45:30.282
Yeah, that's a good call out too.

00:45:30.282 --> 00:45:44.539
So, all right, hopefully this conversation was informational, entertaining, informative all the things we are glad that you're listening informative all the things we are glad that you're listening.

00:45:44.539 --> 00:45:46.806
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00:45:46.806 --> 00:45:48.931
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00:46:09.400 --> 00:46:10.463
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00:46:10.463 --> 00:46:14.976
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00:46:14.976 --> 00:46:16.277
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00:46:16.277 --> 00:46:21.480
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00:46:21.500 --> 00:46:26.143
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00:46:45.456 --> 00:46:56.208
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00:46:56.976 --> 00:46:59.284
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00:46:59.284 --> 00:47:02.664
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00:47:02.664 --> 00:47:10.179
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