Isn't That Rich Podcast

In the world of personal finance, trust and relationships are paramount. John Forbes, a seasoned financial advisor with decades of experience, shares his unique approach to managing finances and building lasting relationships with clients. His philosophy is simple: mutual trust and understanding are key to successful financial planning.

John believes that 75% of his value lies in behavior management rather than just financial management. He emphasizes the importance of meeting with clients regularly and getting to know them personally. This relationship-building ensures that when market fluctuations occur, clients feel reassured and confident in their financial plans.

Forbes Financial Group, John's firm, goes beyond traditional financial advisory roles. They engage with clients through various social events, such as wine tastings and nature walks, fostering a community spirit. This approach helps clients feel more connected and comfortable, which is crucial during market downturns.

The Role of a Financial Advisor

John explains that there's never a wrong time to seek financial advice. Many people mistakenly believe they need a significant amount of money or have their life figured out before consulting a financial advisor. However, the foundational period, especially for younger individuals, is the best time to seek guidance on managing debt, saving for emergencies, and understanding investment basics.

A common misconception is that financial advisors only deal with investments. John clarifies that his role often involves helping clients manage debt, plan for future expenses, and establish solid financial foundations. He emphasizes the importance of understanding good and bad debt, having savings, and paying oneself first through retirement plans like 401(k)s or IRAs.

Overcoming Financial Misconceptions

A significant part of John's job is educating clients on the realities of financial planning. For instance, he highlights the inadequacy of relying solely on Social Security for retirement. The average income from Social Security is insufficient to maintain a comfortable lifestyle, making personal investments and savings crucial.

John also addresses the misconception that one needs to be wealthy to benefit from a financial advisor. Effective financial planning requires diligence and intentionality rather than a large amount of money. Starting small, being disciplined, and gradually increasing investments are practical steps towards financial stability.

The Importance of Personalized Financial Plans

John's approach to financial advising involves creating personalized plans based on clients' unique goals and circumstances. He emphasizes the importance of understanding clients' backgrounds, experiences with money, and financial aspirations. This understanding helps in tailoring advice that aligns with their specific needs.

One of John's key strategies is ensuring that clients have a solid financial foundation. This involves managing debt, setting aside emergency funds, and addressing short-term and intermediate goals before focusing on long-term retirement plans. By doing so, clients are better prepared for life's unexpected challenges and can make informed investment decisions.

Behavioral Management in Financial Planning

John often finds himself acting as a behavior manager, helping clients stay disciplined and focused on their long-term goals. He compares his role to that of a caddy for a professional golfer, providing guidance and maintaining focus rather than just carrying the bags. Similarly, a financial advisor helps clients navigate emotional and irrational reactions to market changes.

He advises clients to avoid making impulsive decisions based on short-term market fluctuations. Instead, he encourages them to stick to their financial plans and avoid getting swayed by sensationalized media reports. Consistent and disciplined investing, according to John, is the key to long-term financial success.

Building a Community through Financial Advisory

Forbes Financial Group's unique approach to client engagement includes organizing social events that foster community and trust. These events, ranging from wine tastings to nature walks, allow clients to build relationships with each other and with John. This community-building aspect is essential in creating a supportive and trusting environment for clients.

John's emphasis on building relational equity ensures that clients feel comfortable and reassured during market downturns. By knowing their financial advisor personally and trusting their advice, clients are more likely to stay the course and achieve their financial goals.

Embrace Change and Stay Disciplined

John leaves readers with two pieces of advice: embrace change and stay disciplined. He highlights the importance of stepping back from constant news consumption and focusing on positive activities that improve mental well-being. By reducing noise and distractions, individuals can make more rational and informed financial decisions.

John Forbes' approach to financial advising is centered on building trust, managing behavior, and fostering community. By focusing on personalized financial plans and maintaining discipline, clients can navigate the complexities of financial planning and achieve long-term success.