Video TranscriptsBack to Advisor Profile
Financial Services in 4 Quadrants - Jeff Gott
Jeff Gott: Hi. I'm Jeff Gott, with Petra Financial Advisors. Have you ever wondered why there are so many different types of advisors for...
Jeff Gott: Hi. I'm Jeff Gott, with Petra Financial Advisors. Have you ever wondered why there are so many different types of advisors for financial matters? I'm going to simplify the landscape for you with a four quadrant graph.
The top to bottom axis represents transparency, specifically fee transparency versus hidden costs. The left to right axis represents relationship from transactional to holistic. I will start in the top left quadrant, the domain of CPAs and attorneys.
With these advisors, you are charged a transparent fee and it tends to be a transactional relationship. You get your taxes filed or you get your will updated. Moving down the transparency access to the lower quadrants, fees get less transparent. It is difficult or impossible to know what you are paying these practitioners.
Have you ever had someone offer you a free financial plan? You know intuitively that doesn't add up because there is no free lunch. If you were to follow the money, you would find out that the planner is getting paid by you through third party commissions on the products your planner puts you in.
If your financial planner is being paid on the products he sells you, are those the best products for you or for your planner? It may feel like a conflict of interest. In the bottom right quadrant is insurance, which is an incredibly important financial planning tool.
Try to find out how much your insurance agent is being paid on the product you're selling you. It won't be easy. Bottom line regarding the bottom quadrants, there is low fee transparency among these commission based financial advisors such as brokers and those who sell insurance.
Moving to the top right quadrant is the realm of independent fee-only fiduciary advisor. Fiduciary simply means an advisor must work in the client's best interest. Unfortunately, only a small percentage of financial advisors are fiduciaries and fee-only fiduciary advisors never get paid by anyone other than the client they're serving.
Petra Financial serves our clients here at the intersection of full-fee transparency and holistic relationship. Speaking of relationship, as of 2018, more than half of Petra's current clients have been clients for more than 20 years. At Petra, we do two things really well.
We develop financial plans based on your goals and values, then invest your assets accordingly with your defined objectives in mind. Petra Financial advisors has been doing financial planning and investment management as fee-only fiduciaries for more than 30 years.
My colleagues Petra and I share a heartfelt conviction to serve our clients with excellence and transparency. There are a lot of choices when it comes to financial advisors. It can be confusing. At Petra, we operate at the intersection of high relationship in full transparency.
We have been independent fee-only fiduciaries for over three decades. It would be a privilege to serve you today. Call 719-636-9000 to set up a free consultation.
Stop Writing Checks - Jeff Gott
Jeff Gott: Hi. I'm Jeff Gott with Petra Financial Advisors. What are you investing in that will outlive you? I'm talking about legacy. I...
Jeff Gott: Hi. I'm Jeff Gott with Petra Financial Advisors. What are you investing in that will outlive you? I'm talking about legacy. I believe deep within each of us is the desire to live for something bigger than ourselves. At Petra our client engagement begins with a deep dive to understand our clients' passions and values. This is not a financial discussion. It is a discussion of the heart.
After we identify a client's goals and passions, we assess where they are today and develop a plan to get them where they want to be tomorrow. It is hard to focus on tomorrow's legacy if you don't believe you have enough today for yourself and your children. This can be depicted in this pyramid. The first level is, do we have enough resources for us?
If you were provided a financial plan like Petra creates that shows you the parameters you can live within that aligns your resources with your lifestyle, then that pressure is relieved. The next rung is, how much is enough for our children? Since the general default among families in the United States is to give one's heirs everything, at Petra we simply want to ask, "Is that best for your heirs?
"Will passing a windfall to your children truly help them, or might it extinguish the fire in their belly?" Once people are confident they have enough and have determined how much is enough for their heirs, there's often a third element of the pyramid -- what to do with the margin.
This margin is available to fuel your legacy whether you want to fund the grandkids' education or possibly invest in some charitable legacy. For those with a desire to leave a charitable legacy, the question becomes, "Is there a wiser way to fund my charitable interests?" The answer is almost always yes.
Most people fund charity by writing checks completely unaware that is the least tax-efficient way to support charity. This is where Petra has expertise. Almost everyone holds their wealth not in cash but in capital assets like securities, real estate, or business interest. At the same time, the most tax-efficient way to support charity is with those same types of capital assets.
According to Giving USA, approximately two percent of US gross domestic product is being donated annually. An estimated $250 billion of this giving is done every year by individuals writing checks to charity. Since most wealth is not held in cash, people are effectively selling capital assets to get the cash to write the checks to charity.
The bad news is this. Every time someone sells a capital asset for a gain to write a check to charity, they must include Uncle Sam unnecessarily in their charitable giving. We call this leakage. The good news is the solution is rather simple. At Petra we say, "Stop writing checks to charity. Instead, give to charity using capital assets before they're sold."
How significant an issue is this? We estimate this inefficiency represents $20 billion in annual leakage that would have gone to charity but instead goes to the government. At Petra we work with our clients to give wisely and not contribute unnecessarily to this $20 billion charitable-giving leakage.
If you are the kind of person who wants to live for something bigger than yourself, and wants to invest in your legacy wisely, know that you have a resource in Petra Financial Advisors that is able to guide you.
If you're interested in learning more, please call me today at 719-636-9000 to set up a free consultation.
Taking Care of Clients for Life - Jeff Gott
Jeff Gott: Hi. I'm Jeff Gott with Petra Financial Advisors. At Petra we are fee-only financial advisors. Meaning we never get paid commission selling...
Jeff Gott: Hi. I'm Jeff Gott with Petra Financial Advisors. At Petra we are fee-only financial advisors. Meaning we never get paid commission selling products. Our fees are transparent and the only payments we receive are from our clients.
Let me pose a question. What in your life is guaranteed? There are few guarantees in life. One certainty is that you will not live forever.
If you're married, less certain is whether you or your spouse will have the greater lifespan. Here are the facts. According to the 2010 US Census regarding those age 65 plus, nearly 40 percent of women were widows while less than 13 percent of men were widowers. Said in another way, at age 65, widows outnumbered widowers, 3:1.
For the married men out there, would you agree that one of your highest callings in the life is to prepare your family for the possibility of life without you? If so, what's keeping you from taking action to be sure your family is ready?
At Petra Financial, we prepare families, husbands and wives today for life's inevitabilities to come. In 2018 Petra reached a milestone. Over half of our clients have been clients for more than 20 years. We certainly serve our share of widows. One reason for that client longevity is that we diligently prepare clients for the what-ifs of life.
Another reason is that we actively engage both husband and wife. We seek to unlock the joy that comes with a financial blueprint that reflects the values and desires of your whole family not only the one who manages the finances.
Through a well-crafted financial plan that addresses the what-ifs of life, Petra is able to provide peace of mind to both partners if the what-ifs of life or creating [inaudible 2:02] for you or your spouse, let's talk. A financial plan custom tailored to your family's life situation can bring you peace of mind and allow you to enjoy life to the fullest.
At Petra, we help those that appoint a financial transition determine what they want and how to get there. Be a hero to your family and give Petra a call at 719-636-9000 to set up a free consultation.