Unveiling the Path to Financial Triumph: Empowering Dreams, Giving Hope

 

Let’s call them Brandon and Laura. We met when they were three months away from their wedding day. Brandon had been extremely motivated to organize the household finances. Laura wasn’t as nerdy as Brandon when it came to the budget, but they communicated well and were on the same page. They were debt-free. They’d made a few missteps along the way. Just 32 years old, Brandon was embarrassed when we first met because he had liquidated a 401(k) to help pay off his last bit of credit card and student loan debt. 

“But what the hell? At least we were able to do the debt-free scream on the Dave Ramsey Show,” Brandon said. 

Finally, that private school tuition and medical bill would be out of their lives forever. They paid some IRS penalties for an early withdrawal, but soon they had enough saved up for a $30,000 wedding: one where their best friend could sing, where his grandmother could slow dance with him, and where they’d say “I do.” 

I’ve never met another couple more on the same page as Brandon and Laura. To this day, they’re still the easiest people to work with. There’s something to be said about knowing what you want in life. And they always know. Everyone has that friend who takes an hour to decide between Pizza Hut and Dominos. Brandon knew before you even asked. When Brandon and Laura first came to me, their goals were detailed and organized. They wanted to sell their home and buy a bigger property in two years. Can we do it? Should we do it? Should we wait and save up enough to pay cash for a home or have a mortgage? They also wanted to put away as much as they could for retirement in tax-free investments, but also get tax write-offs when necessary. 

After the wedding, Brandon called me one night and asked about the impact of selling his rental home out of state. We spoke of his bachelor party, the wedding and honeymoon, and of their big news. Laura was pregnant. “We haven’t told anyone yet, but I wanted you to know that we need to make some adjustments to the finances for a few months. We’re just praying for a healthy baby and we want to save up in case there’s any complications.”  

We reduced their monthly contributions and once again began saving for the next big life event. Two months later, I was lying in bed watching a ‘Friends’ re-run when Brandon’s email buzzes my phone.

Hey Bob,
We’re going to have to stop our contributions entirely for a few months due to the fact that Laura had a miscarriage. We’ll let you know when we’re going to be ready to start back up again. Brandon. 

In recent years, we had productive planning meetings for their finances and we had even gone to a couple concerts together. The annual fee I was charging them to manage their assets wasn’t a focus. What we had built was a friendship. 

 I’m saddened, but honored, to have shared that moment with them. Days later, during our review appointment, Laura and Brandon showed me photos from one of their friend’s baby shower. Within days, Brandon’s grandmother – who he had danced with at the wedding – passed away unexpectedly. The bouquet I sent to their doorstep couldn’t make up for the hardships they were going through.  

Having watched Laura and Brandon experience the loss of their child, I gained so much more perspective in knowing my impact in their lives. Aside from their parents and closest relatives, no one else knew the secret they shared with me. Laura’s seven-month pregnant friend might not have beamed so bright in those pictures, had she known what her best friend was going through at her baby shower. 

If there’s a lesson Brandon and Laura can teach us, it’s that no matter how planned or structured your life is, there’s always going to be a curveball. But when you’ve planned well, when you’ve communicated, when you’ve talked through your goals, no setback is permanent. 

Brandon and Laura have continued to make great decisions and were able to upgrade their house as planned. Their systematic approach to their finances is a characteristic I’ve found to be common among those who follow the wisdom of Dave Ramsey, who I have built many of my financial philosophies around. 

If you think Brandon and Laura are a bit strange when it comes to their financial habits, you’re right. The average 32-year-old in America isn’t paying cash for a wedding or communicating openly about big, medium and small purchases. We’re a consumer society that has evolved to focus more on ‘I want’ and ‘I need’ instead of paying attention to our basic responsibilities as mothers, fathers and financial stewards. 

A father’s funeral shouldn’t be financed by a collection plate of generous donations. A child’s education doesn’t magically get paid for overnight. A retirement isn’t just a vacation that you arrive at. In life and in your finances, being successful takes work and it takes a series of great decisions. It takes wisdom. It takes planning. 

Everyone’s goals are different and no two plans are going to be identical. But if I were to encompass the number one goal that every financial success story shares, it’s the goal to figure out, “Can I do what I want to do and when can I do it?” 

My clients hire me because I’m willing to make their day, and even if I have to, hurt their feelings. Your financial coach shouldn’t be there to tell you what you want to hear, or to try to put you to sleep with commentary on how the next election and some volatile third world country’s economy are going to affect your savings in the next few months. 

If you’re over the age of 50 and your average meeting with your investment counselor is spent reviewing statements and listening to a sales pitch, you’re doing it all wrong. My philosophies are simple. I believe that a financial coach needs to be independent and unbiased. If any of your investment or insurance policies share the same name as your financial coach’s organization, it’s time to evaluate if what you’re investing in is what makes the most sense for you. 

In every client relationship, I imagine that we’re both sitting on a chair. A one-legged chair is going to be less stable than a two, three or fourlegged chair.  

The first leg deals with education. Education is the willingness to know what it takes to do better. How do your investments work? How are you paying your advisor? If I took social security at 62 instead of 66, what’s the impact of that decision? Take the time to make your finances a priority. An honest and good-hearted financial coach will patiently educate you on your options and ensure that your understanding of their recommendations is more important than his or her paycheck. Too often, I find that those who have made mistakes along the way, often did so because they were pressured into making a decision that they really didn’t have enough information on. Find someone who has the heart of a teacher and who is willing to simplify what many others may convey as extremely complex. 

The second leg is all about comfort. Education leads to comfort. My clients need to be comfortable with me, comfortable with my assistant, with my recommendations, and with their own personal finances. No matter what their situation is, they have to be ready to take charge, because taking charge makes them feel more comfortable. It can start with being offered refreshments and sitting in a relaxed, yet professional setting. Comfort is also excitedly answering the phone when your advisor calls, rather than pressing ignore for months on end. If you’re dodging your advisor, are you really comfortable with that person navigating your financial future with you?  

The third leg is confidence. Confidence stems from feeling educated and comfortable. My clients need to know that I’m leading them to a destination they see approaching, but don’t know how to navigate. Like a GPS guiding you through a town you’ve never been, you have to trust that the device is going to get you to the destination you envision. Just like a GPS, your financial plan needs to be updated regularly as shortcuts and road closures pose a threat to you getting to your destination on time or early. Confidence in finance comes from knowing what your current situation dictates, and knowing that the steps you’re taking are going to lead to a better life for your family and a better financial future. 

The last leg that keeps the chair from teetering is value. You need to know how and how much your financial coach is compensated. If you’ve never had a conversation with your advisor about compensation, well you should. Give him or her a call, don’t wait. This is one of the first conversations I have with my prospective clients, because both client and advisor should have clear expectations for the relationship. How am I supposed to provide someone great value, if I don’t even know what they’re looking for, how much they’ve paid in the past, or how much service they need from me? Too often, advisors are selling and telling, rather than seeking to find the right fit. For example, some of my clients need to talk to me once a month for their planning needs. And they pay me accordingly. Others only need to hear from me every so often to feel fulfilled. When your expectations are on the table from the onset, it’s much easier to provide valuable service.  

I’m always up front when it comes to my compensation. Our relationship is a two-way street and it’s important for everyone involved to be confident, comfortable and educated about the fees involved in hiring a coach, so that you can truly evaluate the value of your financial professional. If you hired a personal trainer in hopes of getting chiseled abs and nice shoulder definition, you should expect that with your full effort and participation, that the coach should lead you to your dream body in a reasonable amount of time. You wouldn’t expect to see that dream body in weeks, just as you shouldn’t expect to see your finances turned around in an afternoon. A personal trainer will teach great habits and form that will lead to fitness over the long term. You should expect the same discipline from your financial coach. Does your retirement savings plan look sexy in the mirror? If not, get back to work. I, for one, know that a six pack is easier to get at a liquor store than it is at the gym.  

Just as the gym can seem tedious, we also have to realize that it may take three years to pay off a credit card or it may take five more years to get to that dream retirement. But where you’ll find the most value when it comes to financial advice, is working with someone who will not just open an account with you, but who will take the time to map out the destination and help provide navigation instructions along the way.  

Ultimately, if we don’t have all four legs on the ground, our relationship needs work. 

THREE BASIC HABITS OF SUCCESSFUL FINANCIAL STEWARDS 

1. Goals:
   Success doesn’t happen by accident. Your future accomplishments need to be mapped out and they need to be measurable. Sit down and list out a few financial goals. T his starts a nd ends w ith communicating with your spouse and financial advisor. I often feel like a part-time couples’ therapist, because I’ve seen a handful of arguments when discussing goals. Work through it. It’s important to not just discuss these goals, but to have these conversations in front of and with your advisor. In order for your advisor to fully understand you and what you want to accomplish, they need to be privy to deep conversations you have as a couple. 
2. Motivation:
   Successful financial stewards are motivated by their goals and motivated to learn. Those who make fantastic decisions over a lifetime do so because they’re driven to understand what it takes to get themselves to the end goal. You need to make sure your financial goals are motivating and can move you. 
3. Sacrifice:
   Do I take the family to Europe or make that retirement account contribution? How about taking the family on a simpler vacation a little closer to home AND making the retirement contribution? In the future, your kids will appreciate not having to house you in their guest bedroom. They’ll appreciate your helping them pay for their wedding. They’ll appreciate you having all the time in the world to vacation with your grandkids (their kids) while you’re in your 60s. 

Sometimes sacrifices are beneficial in more than one way. Not only can you take your grandkids on vacation, but you’ve also taught your own kids how to behave like adults with their money. Sacrifice also works for you! Don’t forget to live along the way. Too often, folks tend to save for a day that they never see. Find balance in your planning and your advisor should help you make today, tomorrow, and thirty years from now a happy financial day. 

 

About Bob

Suthipong Robert Chitrathorn (Bob for short), came from humble beginnings. Born to parents Puttachart and Sakul Chitrathorn, Bob was raised in a mobile home park in Colton, CA. His parents migrated to Michigan from Bangkok, Thailand in 1974, before settling in Southern California. Over the years, Bob witnessed the different lifestyles that people lived and of the possibilities that lay ahead. 

To the Chitrathorns, life in America was a gift and they were proud. They worked hard to put food on the table and to put Bob and his younger sister, Crystal, through school. Bob was frugal as a child and would be happy having bread with nothing but cheese on it, but he was blessed nonetheless. He learned that perspective made all the difference in life. 

 In his mother’s words, “Education is money in the bank.” She still teaches nurses to this day, and with Sakul, a factory worker, both sacrificed to make a better life for Bob and Crystal. They paid for both kids to go through private grade school and high school.

Their dedication and sacrifice didn’t go to waste. Bob received a scholarship for his first year at La Sierra University, before transferring to Cal State San Bernardino. He received his B.S. in Finance, as well as a B.S. in Real Estate, while minoring in Business Administration. Despite the rigorous course load, Bob graduated magna cum laude and was named part of the Golden Key Honor Society.  

In 2004, Bob became a financial advisor, he wanted to help people make good financial decisions. E conomics and fi nance al ways ca me ea sy to Bo b. Wh en hi s professors at CSUSB had to miss class, Bob would be asked to teach his classmates and answer their questions. He was recruited by many different financial firms before settling at the firm he knew was best for him. It was a firm that cared more about clients than themselves. Here he learned the importance of planning, and would later end up becoming Vice President of Investments and then on to Senior Partner. 

With 19 years of industry experience, Bob has helped hundreds of clients reach their financial goals. Bob recently joined a newly established independent financial firm to help grow a new brand and to help shape the next generation of financial advisors. He holds the Series 6, Series 7, Series 63, Series 65 and life, health and long-term care insurance licenses. Bob has been married to the love of his life, Brittany, for three years. They live in their California home with their rescue dog, Mazy, a pool, putting green, and a Pittsburgh Steelers-themed bar that’s perfect for Sunday Night Football. 

If you’re looking for Bob at 6:30 or 7:00 p.m. on a weeknight, more often than not, he’s prepping for a case or still making phone calls to clients. His parents’ work habits weren’t lost on him, and he’s usually the one in the office at the end of the night setting the alarm and turning off the lights.  

You can connect with Bob at:
bob@simplifiedwealth.com