Business Innovators Radio - Interview with Fred Cook, Partner & Wealth Advisor with CAVU Financial Discussing Choosing a Financial Coach

Episode Date: October 18, 2023

In the Financial Services Business for almost 40 years, Fred has spent his career in Banking, Insurance, Investments, Financial Planning, and Wealth Management. While most institutions look at these disciplines as competing, Fred has a deep understanding they all need to work together in his client’s financial lives.In order to have the independence needed, and the resources clients demand, he has aligned himself with CAVU Financial. What brought him to the team is their mission. Managing Partner, Blake Rawson, states the mission consists of “partnering with clients to create and deliver the best, objective, independent recommendations for their financial success”. This allows Fred to focus his talents and experience on providing holistic advice, within a “concierge-sized” practice.Throughout his career, Fred has developed a style that puts the client first. He listens to their concerns, goals, and hopes, as he attempts to understand where they are today and where they want to be tomorrow. This empathetic approach has allowed him to develop deep bonds with his clients and their families. Advice is then driven by a planning and service model that identifies issues, aligns recommendations, and delivers strategies tailored to each of his clients.Fred strives to be the first person clients call when life changes happen.In addition to his experience, Fred has a Bachelor of Science in Business Administration, Finance, and an MBA, both from the University of Akron.Over the years, Fred has taught University level courses at the University of Akron, was a speaker at many local organizations and radio on the topics of investments, the economy, and planning, and was the featured speaker at a large financial services firm on the topic of financial planning for individuals.Because of his loyal clients, Fred’s practice has grown over the years due to their enthusiastic introductions to friends, family, and associates.Fred is past Chair of The University of Akron, College of Business, Department of Finance, Advisory Board. He has also been involved with several charitable organizations such as the YMCA, Boy Scouts, Rotary, Hudson High School Music Association and others.A lifetime resident of Summit County, Fred and his wife, Arlene, live in Hudson, Ohio with their daughter, Allison. He enjoys his family, reading, and traveling.Learn More:https://www.cavufinancial.comSecurities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Partners, LTD and CAVU Financial LLC are separate entities from LPL Financial. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost. Investors should consider the tax consequences of moving positions more frequently.Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-fred-cook-partner-wealth-advisor-with-cavu-financial-discussing-choosing-a-financial-coach

Welcome to influential entrepreneurs, bringing you interviews with elite business leaders and experts, sharing tips and strategies for elevating your business to the next level. Here's your host, Mike Saunders. Hello and welcome to this episode of Influential Entrepreneurs. This is Mike Saunders, the authority positioning coach. Today we have back with us Fred Cook, who's a partner and wealth advisor with Cabu Financial, and we'll be talking about how to choose a financial coach. Fred, welcome back to the program. Hi, Mike, and thanks for having me again. You are welcome, and I know that a lot of times people feel like financial

choosing, well, even the best of the best of the best in business and sports need coaches to enhance and polish up what they do. So having a financial coach is a wonderful concept, but we want to dive into that. So get us started with what people should be thinking about when choosing a financial coach. Mike, that's great. Before we get started, however, I do want to keep our lawyers happy here, but this is really important. Our firm Cavoo Financial LLC offers securities through LPL Financial, which is a member of FINRA and SIPC. Our investment advice is offered through Stratus Wealth Partners Limited, which is a registered investment advisor. Stratus Wealth Partners Limited and Cavoo Financial LLC are actually separate entities. from LPL financial. Also, any comments I make here today are general and not intended to provide ERISA, tax, legal, or investment advice.

So that's where we are. And I guess to answer your question, I want to get into that a little bit, but I don't know, the past few times we've talked, we kind of want to get the, what's the problem up front? Like, why do we even need a financial coach? Yeah, yeah, that's a good point. Yeah, I'm going to kind of start with that and then we'll get into what they should be looking for. because this is all tied together. I think it's important.

And one of the main reasons we need a financial coach is because, quite frankly, life is complicated. We have so much information and knowledge at our fingertips. It is now on overload. How do you keep up with all the changes? Unless you deal with financial matters daily, it can be difficult and time consuming. Think about it, Mike. Why do orchestras have directors, football teams have coaches, and baseball teams have

managers. You know, your situation is unique. Who's going to put it all together for you? I'll give you just one example, a small area that most of us deal with on an annual basis, our medical benefits. Whether you're getting them from your company or Medicare or you purchase the insurance on your own, these plans change. And most of us really do not know much about the intricacies of medical insurance. What are the issues? What should we be thinking about? How much you need. Would you agree that making a wrong choice in this critical area could have a rather large impact on your livelihood? And Mike, this is just, yeah, and this is just one financial area we deal with. What about our 401K plans, our investments, our insurances, auto, home, life, disability,

your company's deferred compensation plan and stock plans, how about your debt? Just for fun, Google any financial question you may have and see how many results there are. It's just a usually in the millions, okay? Let's take it one step further. These decisions will be different for your set of circumstances, and they all have a lasting impact on your future financial wealth. I think that pretty much outlines the, you know, why. Yeah, why. That's a good point. You know, you mentioned a word that I want to drill in on, which is change, and then you, you mention, you know, football coaches and managers and things like that. So whether it's a sports team, I think that this analogy is really interesting because

because taxes and laws and investments and all these things, life is complicated and there's change. It's almost like if a football coach back in the 60s had their playbook and was still calling the same plays. Well, that would not work these days because defenses are more intricate and things need to change. Same way with finances. I'm certain that if we pulled up what financial advisors were telling their clients 10, 20, 30 years ago, things would have changed for now.

And you need someone that's on top of that. So I really like the explanation you gave on why we need a financial coach because life's complicated. There's changes. And you need someone on your side making sure that you're aware of all of these changes. So that's amazing. So we got the why. Now how? How does a financial coach help transform financial wealth?

Well, it's all about coordination, Mike. A good financial coach understands that each area of an individual's financial life is really not an island, but part of an intricate puzzle that works together in concert. Most coaches that I know are not experts in any one area, but rather really good at identifying issues. They understand what their client's situation, and then they call on the experts to solve a particular problem. Let's go back to Medicare. I really don't know much about Medicare. I find it all very confusing and I'm on it. Yet for my clients that are either approaching Medicare age or that are actually on Medicare, I reach out annually and bring a Medicare specialist to the table on their behalf.

So here's five steps that a competent coach does to help transform financial wealth. First, a financial coach works with you to create a personalized plan based on your income, your expenses, lifestyle, family structure, and financial goals. This plan serves as a roadmap for pursuing your financial objectives. Second, a financial coach helps you stick to your wealth plan and make sound financial decisions. Third, a financial coach educates you about financial concepts and tools that enables you to make informed decisions about your finances. We discussed this, Mike, in our last podcast when we talked about 401K plans.

Four, a financial coach helps you adopt better money habits and change negative beliefs about money. We all have them and they can get in the way of success. And then number five, a financial coach provides ongoing support. And this is the most important part. They'll hold you accountable to your financial plan. They'll help you stay on track even when faced with challenges, life changes, and ongoing changes to your various financial resources. There's that change word again, Mike. Yeah.

Yeah, that's a really good point. You know, what I find is a lot of the strategies or recommendations that you may recommend or guide your clients with aren't brand new earth shattering, never before heard or seen. It's just that you're listening to what they need and you're understanding the options available to them and you're suggesting this combination or that combination or this choice or option. And even though they might have Googled or have, you know, used a certain strategy in the past, they need someone that is from the outside looking in. I think that we all get too close to the forest to see the trees. And it's like, okay, yeah, that just makes sense. That resonates with me.

Oh, I'm glad you brought that up. You know, things like that. Can I, can I make an example? This happened to me, okay? Here's what it's all about when it comes right down to it, when the rubber meets the road, right? It's all about our money and our finances, right? These things can be very emotional. And when you're trying to make a decision and you're emotionally involved, your coach, your advisor is not emotionally. He can look at everything or she can look at everything from like the top down, if you will, and not get involved. You said the forest and the trees. That's extremely important. I had a situation. I had been helping people. I was working at a bank. I've been helping. them people with mortgages for years, you know, what type they should get and what they should do and

where they should go and how they should get you, all that kind of stuff, making all those decisions, working with them on. And I knew, I knew it inside and out. It was a big part of my job. But then I needed to get a mortgage. Now all of a sudden, I literally sat up my desk and go, what do I need to do? Wow. Because those emotions about it are so, you know, they really distract you from making the right decisions. So having that external expert or external person who is making observations, you know, not forcing you to do a thing, but saying, have you considered or what, what about this? And I think that's a huge point is having that external person. And it just makes me think about money and how much does it cost? So if I have a financial coach that like

you're describing who's doing all these things, they're doing a lot of work. Doesn't that seem like it's going to be expensive to hire a financial coach? You know, Mike, I hear this all the time. You know, additionally, folks will say that they don't have a lot of money or their situation is simple, things like that. These comments I have found are really a smokescreen for, this seems like it's going to be expensive for me. Most people understand that no matter how financially quote a small, a person is,

they could probably use the help. So let's answer the question. Yes. it can be expensive to hire a financial coach. You are, in essence, paying for a professional. They're often trained, licensed, educated, and they have ongoing learning requirements, et cetera. This is no different than any other professionals you might hire,

whether they be attorneys, accountants, etc. Their knowledge and advice are valuable, and their time is limited. So I don't want to make little of this issue. I think we all know that the time saved, the avoidance of lost opportunities and the overall help you will get can make the cost worth it. I'd like to think that the football team that has a coach has a better chance of winning than the one that doesn't. But staying with our football analogy, here's the kicker.

It may not be as expensive as you think. Now, I don't want to address what others are charging and what their structure for charging is. I will, however, address our firm. We actually have two options for our clients. The first is a fee for service. We charge an upfront fee to put the plan together with our clients. This can be a time-consuming process for us. The client, however, doesn't have to spend a lot of time.

Remember, our goal is to streamline our clients' financial lives, not make them more complicated and time-consuming. I know, I know. What's the fee, Fred? Well, I'm not going to go there, but only to say we've never had a client say, that's too much. We make it reasonable. We believe so strongly, Mike, in the value of having a coach that we do not want price to be a roadblock. My partners and I have been doing this planning for a very long time, and here's what we know. If we help our clients over time, they will come to us for additional strategies.

They will refer us to their family and friends. They will become part of our practice helping us grow. That is worth more money than any fee we could charge. Now, after this upfront fee to get the plan started, we then charge a small annual fee if our clients want to continue to work with us. The second choice our clients have is to allow us to help them manage their investments. We charge a small percentage of the funds that we manage for them. We include our planning and coaching in that fee. In fact, while it's not required, we insist that they go through the planning process with us.

It makes us better at helping to manage their investments. Yeah, because going through that process then lays a really strong foundation and it makes sure that nothing is falling between the cracks and that you've got the full picture, I would suspect. That's all about the big picture. You know, we need to know people say, why you when we're doing the planning, why are you asking this and why you ask? Well, it may not be important, right? But we don't know until we ask the question and we know all of the details and all of the situations about that client. Then we're going to be a much better, better money manager than someone who doesn't. And I'm sure that there's been a time and we don't need to think of examples or give details.

But just hearing you say that makes me realize that I bet you there's a time that you've just having some small talk and chit chat. And a client has mentioned just something in passing. And then as you get into it, you're like, you know, you mentioned this. That means that now we should. And they didn't even think of anything of it. They were just talking. But yet you were keyed in on something. You're like, ooh, that's a really key point.

So I think that having that foundation and getting that story in place just really. sets the stage for some of the recommendations that you will make to them. So that's a that's a huge point. It's not wasting time. It's making sure that we have everything lined up the right way. Right. Right. Exactly. So a lot of those points that you were talking about like a financial coach will and make sure that they do this. How do you know who to hire? Because I would venture to say what do you do have to hire, I mean, interview or talk to 30 people. But when you're talking to people, how do you actually know the right one to hire based on what they're telling? You know, Mike, in our past few podcasts that you and I have had had here, I always want to

answer that question, you know, me, but enough self-promotion. Right. Okay. We're here today to help and educate our listeners. So here's what you should consider when engaging a financial advisor or a coach. folks often call themselves financial advisors, but in reality they are specialists. They're money managers, their insurance agents, their bankers. There are many great smart folks in that category.

They often do a fantastic job at their specialty. Now, while some do, most do not have a holistic perspective for their clients. Another thing is, are they independent? This potentially gives them the freedom to make sure that what they are doing aligns with what's best for the client, not the financial institution that they are tethered to. A good coach needs to wrap their arms around a client's goals and objectives, both now and in the future.

You might want to know how long have they been in the business, providing financial planning and coaching. In my opinion, it takes at least 10 years to really master anything. And if they've been in the business longer than that, you would be dealing with someone that has been through a lot with their clients. Sort of a been there, done that mentality. Another thing is, are they credentialed? The main designation is the CFP or certified financial planner. Do you know you can go to CFP.net? And if there have been any issues with that advisor, it will show up there.

Another certification is CIMA, which stands for certified investment management analyst. You can go to Investments and Wealth.org and check them out there with some of the same type of information provided. And while not focused on planning, if the advisor is security licensed, you can check them out in FINRA. This will provide you some insights to their background and character. Go to brokercheck.finra.org. Now, keep in mind that all these designations have ongoing continued education requirements. things do change. We've talked about this. And you want someone who's always up on the changes. How about their education? Do they have an MBA, a master's? You know, my partner has his degree in

engineering and he always likes to say everything to him is a giant math problem. If possible, talk to their clients. Yes, they will provide you with their happy clients, but you will be able to tell based on their response if the advisor is giving great advice and help or is just okay. How often do they talk? Is the advisor proactive? And finally, and I don't want to make this the reason, but definitely a deal breaker. Do you like the person? Hopefully, before you decide, you will have had ample opportunities to talk to and interact

with your potential advisor. I know there are a lot of nefarious people that come across as very likely. think of all the instances where people are financially devastated when they find out it's all been a scam. The bad person there had to be likable. But only after have you done your homework, use likability as the final decision point. You'll be working with this person for many years. I have clients that I've been advising for over 30 years. And that would not have happened if we didn't like each other.

That's a good point. You know, when you said that, it made me think of an old quote. One of my favorite authors is Bob Berg. He wrote a book called The Go Giver. And he's famous for saying, all things being equal, people want to do business with those that they know like and trust. And yeah, you might have some Brainiac that has all kinds of great numbers and that's wonderful. But if you don't like them, if it just doesn't resonate with you, that doesn't do much. So I think that that's a huge point is that likeability.

you know, and you could like someone, but then realize that they don't have the foundation and the credentials and all the other things. So it's got to be a good mix there, doesn't it? Yes, you've got to have all that other first. You've got to make sure it's going to be someone that can provide the kind of help you need. But, but, you know, in the end, these are long-term relationships. And, you know, I know, I know sometimes we don't make decisions about doctors, but just think about, I know. I thought, you know, I'm going to use a dentist as an example. If I don't like the dentist, I'm not going to keep going to them every six months, right?

He can be the best dentist in the world, but they've got to have some bedside manner, if you will. Yeah, 100%. Well, Fred, has been great reconnecting here and just learning about these things. If someone is interested in learning more and also reaching out and connecting with you, how can they do that? Well, Mike, all they have to do is go to our website, cavoofinancial.com. Kavu stands for sealing and visibility unlimited, Financial.com, and all they have to do is click on the email button and send us an email.

It's that easy. If they click on About, then our team, they can reach out directly to me as my email and phone number are listed there. And by the way, Mike, if your listeners do go to my website, they can avail themselves of several of our complementary e-books covering topics such as Social Security, the Secure Act, Tax Reform, or my favorite, retire happy. Love it.

Well, Fred, as always, it's been a great pleasure chatting with you again. Thank you so much for coming on and really appreciate your time. And Mike, thanks for having me. You've been listening to Influential Entrepreneurs with Mike Saunders. To learn more about the resources mentioned on today's show or listen to past episodes, visit www. influential entrepreneursradio.com.