Choosing a Financial Advisor with Jason Cook

In Show 063 – Choosing a Financial Advisor with Jason Cook originally broadcast on Facebook Live on Wednesday 21 February 2018 we explore this interesting topic.

Download the worksheet here: 063 – Worksheet

Show Notes

Investing in property is a major decisions.  It can have huge implications for you and your business going forward.  A sound investment strategy can reap big benefits.  But if you don’t do it right it could cost you your livelihood.  That’s why we invited Jason Cook to join us for this edition of the show.  Jason works as a financial advisor with WB Financial in Queensland.  He is also the author of the book Bulletproof Business.  We’ve worked with Jason on a number of deals over the years and we are really excited to welcome him onto this edition of the show.

Jason first started working in the banking industry and eventually ended up lending to several high net-worth clients.  He decided to leave the lending industry because he wanted to develop longer term relationships with his clients.  He learned a lot from his years in the banking industry.  But Jason feels that the bank’s focus on selling as much as possible took away from the customer experience.

Jason says that everyone should be thinking about investing but only 50% of people do it at the right time.  He often gets a lot of clients in their 50’s who are starting too late.  A lot of people think that they don’t have enough money to invest but Jason says as long as you have an income you can invest.

“It’s not rocket science.” He says. “If you start early the power of compounding takes care of it for you.”

Jason feels strongly that people should invest with an end goal in mind.  Investing in property or shares is not the end goal.  It’s what those things will ultimately be able to provide in the future.  That might be the ability to take a lengthy vacation every year or to provide financial stability for retirement.  Not many people actually make that plan.  It’s all about what the investment can do for you.  Not what the thing actually is.

The process of starting at investment portfolio should begin before you ever meet with your advisor.  You need to understand your cash flow, your expenses and have a monthly budget worked out.  Car repairs, house renovations and the upcoming vacation all need to be priced out.

When you’re considering who you want to hire as your financial advisor Jason says you shouldn’t be afraid to ask what their fee is.  Finding out if they’re competent is important, of course.  But in the course of the meeting you need to find out how much that competence is going to cost you every month.

“I believe in auditioning financial advisors.” He says.  “Talk with three different professionals and decide which one you like.  Don’t take the first person you meet.”

When Jason meets a new client he likes to know what level of risk they are comfortable with.  Certain types of risk will achieve certain goals.  The outcome you want to achieve may require more or less risk.  More risk doesn’t mean the potential of losing all your money.  It’s all about volatility.  How big are the swings going to be?  A low risk portfolio will have lots of cash and bonds.  Those assets have very predictable values.  That’s less true with certain kinds of stocks that can swing dramatically over the course of a year.  A more aggressive investment strategy will perform better over time.  But the key here is the phrase over time.

If you’re trying to decide whether to invest in property or shares Jason says there is now simple advice.  He likes both of those assets.  If its possible he likes to ensure that his clients have both in their portfolios.  Each has different qualities.  The biggest difference is the upfront cost.  Property usually costs hundreds of thousands of dollars.  Stocks can cost as little as a few hundred dollars.  You can buy as much or as little stock as you want.  Property isn’t a liquid asset – it takes a while to sell.  Stocks can be sold instantly.  There are also differences in the tax costs for each.  There is one similarity, however.  If you look at Aussie stocks or Aussie property over time – they have both increased at an almost identical rate.

More about this Show

We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms.  Most importantly we want to help you to develop a plan to take your business successfully into the future.  There’s a startling statistic the underscores the importance of developing a solid plan.  The majority of business owners are just seven months away from losing everything.  A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly.   Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients.  We want to close that gap once and for all.  We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.

Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV.  We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with.  Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.