Unhealthy and healthy Expectations if you work with an Advisor Part 2 of 2
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Unhealthy and healthy Expectations if you work with an Advisor Part 2 of 2
Thanks for joining us on Intelligent Investing with Glenn Leest! Your go-to source for navigating the complex world of finance and becoming an intelligent investor. We appreciate your trust in us and your commitment to your own financial future.
Connect with Us:
Glenn Leest
Senior Investment Advisor
WT Wealth Management
Office Phone: (928) 225-2474 Office
Email: intelligentinvesting@wtwealthmanagement.com
Website: https://www.wtwealthmanagement.com/team/glenn-leest
Instagram: https://www.instagram.com/intelligentinvestingwithglenn/
Facebook: https://www.facebook.com/GlennLeestIntelligentInvesting/
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**Don't forget to subscribe, rate, and review our podcast on your favorite platform.
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Stay informed and make those smart financial choices.
Until next time, this is Intelligent Investing with Glenn Leest, helping you make your money work for you.
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The following is paid programming brought to you by WT Wealth Management. Nothing we discuss should be considered as investment advice. This conversation is for informational purposes only. Please do your own research and speak to an investment advisor or financial planner before making any investment decisions.
All right. Welcome back to another episode of Intelligent Investing with Leest. And don't forget, you can always catch up on past episodes by looking up intelligent investing on your favorite podcast provider. We got a, uh, second part of a two-part series. Yep. You always like the multi-part. You have some that are like four, five.
There's just so much talk's, just so much and yeah, we, we, we, we can do these. Uh, we could probably turn this into three parts, but I, I try to. Oh, easily. Yeah, easily. So anyway, um, we've been talking about unhealthy versus healthy expectations when you work with an advisor. Mm-hmm. , like I said, part two. Uh, if you want to talk with Leest, 9 2 8 2 2 5 24 74.
Also email intelligent investing, WT wealth management.com. But let's, uh, let's pick up where we, from, where we were last week, um, discussing unhealthy expectations of with your advisor and, and how to help you be happier. and more successful, uh, investor going forward. Mm-hmm, uh, number one for the, well, last week we talked about communications and their expectations.
When like, you know, you, you should be able to answer your phone twenty-four seven, answer every question. Yeah. Um, we, we went through all that and that's not a realistic expectation for No, no, no. Anybody in any field at all. The only person that should be able to get ahold of you 24 7 is like your spouse or your immediate family, like, you know, other than that, it's like, hmm.
There's a lot of people out there listening probably. They're like, I need a, like a separate burner phone just for those instant contacts. Oh, it's not a bad idea. Its why people have like the work phone and the personal, they're walking around with two. Yeah. Oh, that's that one. Let me answer that one. Um, but okay, let's, let's, uh, this is number one for this week, really, number 11 in the whole.
Yeah, because we went over 10 last week. My advisor or any advisors out there to get me or to rip me off, that's starting off in a bad kind of dark spot, half empty position. And a lot of these, almost, and I'll say it this way, all of these have come from real world experience of emotions I've worked with are seen or interacted with.
I could feel that making the list. Yeah. Some of them, you're like, is this for real? You're like, yes, this is for real. This is things I've run into. And so. The notion that your advisor's just out there to, you know, make a ton of money off you to pull one over, you know, it's all about them. I think it's really un unhealthy.
I'm a fiduciary. My number one job is to help clients reach their goals, to put their interest first, and that's what I do. And so, to come into a relationship thinking the opposite, makes it hard for me to, you know, have any kind of professional. Relationship. I've heard this from one of my, uh, mentors at my church, pastor Land Merrill.
He says, uh, trust is not earned. Trust is given. Mm-hmm. until you give me a reason not to trust you, I will give you trust. And so, I think that's, um, a better way of doing it in life, uh, is to, because we must trust people. Uh, you know what, if you're on the airplane right? You must trust that the pilot's going to fly the plane.
And say, okay, a pilot, you must earn my trust first and then I'll let you fly. There's a lot of things in line for you. Can I see a video of your last landing? Yeah. We must give trust otherwise, I mean, even look at like turning on your electricity, turning on your lights, I mean, you're trusting the aps, you know, is going to provide that service and then the electrician that, you know, trusting that they wired the house correctly.
And so, yeah, I think with an advisor, I think you should start off with the place of I'm going to give them trust and if they give me reasons not to trust them, then yeah. Distrust is earned. Um, trust is given. So, I think that's unfortunately just something I've seen with individuals over the years. And, and some of it's, frankly, all its fear based.
You know, I saw one individual that had one bad experience in like 1950 investing and they never invested ever again in their life. Mm-hmm. , it was like, Well, I think this story was, oh, I invested $10,000 and my, you know, investment went down to $7,000. I sold out and I never got back in. And, uh, so now I'm never going to invest ever again.
It's all just a, a fix. It's rigged, it's out to get me. And it's like, nah, that's not true. Yeah. How is that money under the mattress work? Yeah. And it's not a fun way to live. Like if you're living in constant fear of what could go wrong, think about what could go right so much. Uh, mess we have to be cognizant of what's happening around us, but it.
Easier way to live when you, you know, don't always think the worst of people. Yeah. But, and, and if you look at it though, Leest, people are in business for a long, you've been doing this for a long time. you, you, you, you look up here and you say, well, they've been doing this for a long time. If you are that there's, there's always people out their mm-hmm.
that do bad. Yeah. And that can rip people off that. Usually comes out in not too long of a period. Yeah. Especially if it's a smaller community. Yeah. Yeah. You're not going to be able to stay in business for 10 years by, um, ripping everyone off, ripping everyone off. I mean, word gets around you. I've heard it said that you, uh, if you do a great job, you know, uh, a client maybe tells one or two people if you do a fantastic job, but if they have a negative experience, they'll tell 10.
Yeah. So, yeah, I think that's a, a safe assumption to say, okay, if someone's been doing this a while, it's because they're helping people. If they've got a lot of people that they're helping, it's because they're doing right by them. Yeah. You know, you don't run a successful business by just, you know, always doing the wrong thing for people and ripping them off.
So yeah, you're right. I think you just, um, mentioned as far as mentioning the negative. Uh, business. That's, that's, that's all. When you read a restaurant review or something, do you see a lot of positive? It's usually when someone has a bad experience. Uh huh. Yeah. Yeah. And something, you know, beyond the, you know, restaurant's control or the business's control and it's maybe one of their employees, you know, had a bad day.
Something went, you know, went awry. But, you know, I always take those with a grain of salt. Now if every single comment and there's 50 of them all say bad things, that's a different story. But if they. 20 great comments. And one, I mean, let's face it, there are people out there that are very unreasonable, especially with the internet.
Like they can just say and do whatever they want and, you know, there's no repercussions. Anonymously. Yeah. Anonymously, right. Keyboard warriors. Yep. Un uh, expectation number two, uh, here with Leest LEAs, if, if I leave working, uh, with my advisor in a way that is rude or unprofessional, uh, they should just deal with it.
Um, it's only business. Don't take it personally. So, yeah, it's just, it's, this isn't personal, but. Boom, um, don't take this personally, but the, the, there's two statements that are simultaneously true. Yes, it is business. Um, and yes, um, everything's personal, right? You know, everything that I do in this business is personal.
So if someone is saying, I don't want to work with you anymore because you're an idiot, and they say that it's like, Well, how do I not take that personally? I, I'm a human. Like, and, and whether they're right or wrong is, is beside the point. Like, you know, we all deserve to be, uh, treated with trust, uh, and I should say respect and um, and dignity.
And so if you have someone that is just going around just. Kind of burning bridges just to save a penny or so, especially in a small community that goes around, like people find out like, oh, that person, you know, yeah, they'll work with you. But a second that they could save a penny or two, they'll jump ship and just burn that bridge and they end up, uh, not doing as well as you think you might, uh, when you burn bridges a lot because relationships are important.
Mm-hmm, um, especially in a small town, like Word gets around. If you're a great person to work with and you're reasonable and you're fair, you know, people pick up on that. But if you've got them. The reputation for just being awful to work with. You may have a hard time successful, especially in Northern Arizona, you know, so, yeah.
So, I would say, you know, yes, it is business, but you know, it's, it's always personal. My mindset. There's a relationship to, yeah. Mm-hmm, uh, we, we touched on this quite a bit last week and on past episodes, all those episodes, you can look up intelligent investing, by the way, and your favorite podcast provider.
I, I want to see results and I want them now, from the first year. I, they, they don't have amazing returns. I'm gone kicking them to the curb. We talked about that last. Yeah. Um. and that is unfortunate expectation that we see. And it all depends on which year you start working together, right? If you work together in 2000, the year 2000 mm-hmm.
you know, you're going to say, oh my gosh, my, you know, advisor lost me X percentage, but everyone was down, you know, so that's not necessarily, last year was rough expectation. Last year was rough. I mean, I had some clients that started with me in 2022, and you know, when you look at the report at the end of the year, you.
You know, I've just lost you money so far, you know, for in just one year snapshot. But it, it is a healthy expectation to say, okay, well, I'm going to give it time. Investing is not a, you know, overnight, one year at a time. It's like, I'm going to stay for the long haul because in fact, my marketing material, one of the, the sheets that I print out talks about probability being positive.
Over certain periods of time in the stock market. So good example is said, you know, Leest, I'm going to give you a hundred dollars to invest in the markets. What are my chances of being positive after one day? Well, it's about 50 50, but if he said, what about six months? Well, now it's like 60% chance of being positive, 40% chance of not being positive.
But if you go out to two years, now you're like 85, 90%. And if you go out to three years, you're closer to in the mid-nineties. So sometimes it's having the right expectation of how long results take. And so, yeah, on year one, I'm. Been nice, uh, working with the people because it could be a year where we have a bad year in the market and they may, oh my gosh, I don't know what they're doing, and the market was down and I'm down.
They should have had a silver bullet somehow, you know, magic solution. Um, or it could be a year they start working and we get lucky, and the market just does incredibly well. Um, you know, was it back in the nineties, um, anyone could make money in the stock market. I mean, you could just throw a dart at the wall.
Late nineties were crazy and just everything was making money. So, but that doesn't last forever too. No. Yeah. That led to 2000, which wasn't a good year like you already said. Um, just this is general life, uh, instructions or, um, information. I guess we, we hit on this heavily last week. Uh, is service request, you know, you call up mm-hmm.
and you, the instantaneous culture that we live in. Yeah. I don't think it's a, it's a healthy culture connected all the time. Uh, 24. Um, there's a lot of people that think that you should never take more than 24 hours to get back to you, or that you should, I'm sorry, that you shouldn't be getting back to you instantaneously.
Yeah. And not within like a 24-hour period, you know, I guess around or something reasonable. The, it also looks at the size of the organization too. So, if it's like a multinational. Company and they've got a call center. Yeah. I would say it's a reasonable expectation that you can call and get ahold of anyone any point in time.
Like, like your power goes out. Yeah, yeah, yeah. That's a reasonable expectation. But if you're like, Hey, I'm working with this, you know, smaller group that's, you know, five to six people mm-hmm. , um, and, uh, say everyone's calling in at the same time and you're not able to get in right away and you leave a voicemail and they get back to you within 20 or four to 48 hours.
I feel like that is perfectly reasonable, especially if it's stuff that, it's not as time sensitive. So, if you're like, hey, I need to make an adjustment to my portfolio today. Sure. I guess that's more urgent. But even that, I even have a hard time thinking that one or two days in the market makes a substantial jet over time too.
So, I think that instantaneous culture is, has led us to, uh, frankly, instant gratification too. Mm-hmm, you know, we have a hard time with the delayed gratification. You're like, ah, I want my marshmallow now. I'm not going to wait an extra five minutes to get the extra marshmallow. Um, and so I think we're seeing a lot of that nowadays.
Even big organizations have challenges. I mean, recently we had power outages in Northern Arizona where about a quarter of the county was without power. Mm-hmm. Yeah. And I bet you if you had called the electric company APS at that time mm-hmm, they, they probably were like, nothing. Nothing. We we're trying, yeah.
It was big storms. Yeah. You know what, what are you going to do? All right, one more here. We're, we're with Leest Lease. Um, I think we all fight with this, the negative side of things. Everything is bad, especially if you. things going on in the world and the global situation. Mm-hmm, or even regionally, whatever that may be.
And you're like, everything is going to collapse. Everything is bad. But then sometimes if you step back and look at your life, you say live a pretty good life overall. In, in this world, most people, it's all about perspective. Yeah. Right. And so yes, in America you can, um, look at everything that's going wrong, or you can look at, Hey, what do I got going?
Well, My life. I've got food on the table, got, you know, clothes on my back, roof over my head, running water, you know, running water, you know, I've got access to healthcare, electricity most of the time. Um, and so I think that goes the same thing goes with investing too, or any kind of finance. You know, like again, fear is not a good place to make financial decisions based out of fear.
Um, because usually, inevitably those are when bad decisions are made. Um, you know, very wise people. I think as Dave Ramsey says, you don't want to make any big life choices when you're angry. Mm-hmm. Or fearful or under the influence, you know, of something that's just not, not good life advice. Yeah. And so, yeah, so, and I, I've, I've seen that before with different people I've worked with is, you know, they're very concerned about what's going on in the world.
But then I have another sheet in my marketing material that I put out that shows, okay, let's look at the last 15 years, uh, of the markets. And then on that, um, uh, graph of how the markets have done. It has all the different geopolitical events, the oh, you know, major world crisis events, all these different things.
And so, there's the, it's like scattered with all these events, but then you look at the graph and it's like, it just keeps chugging along. Right? And I think that goes to the core of what companies are trying to do. Every company is trying to make a profit and make more money each year, and. You know, excellent, good.
Or service to, to individuals. Yeah. And so that's their, their motive. So, it is a healthy expectation to say, over time, companies want to make more money, they're going to be worth more. That's the goal of, you know, starting any company. Um, even non-profits, they say the word non-profit, but they still must turn, you know, have, be positive cash flow.
Mm-hmm, uh, otherwise they're not going to be able to sustain themselves. Maybe it's subsidized That's different from the government. Yeah, definitely. Definitely. Yeah. But even the government should probably work like that too. You know, we need to, you know, stay in the, in the black. Not, we can only wish. Right.
We can only wish. Right. Yeah. I'd love to see that chart though, that, that the ending of the world has been postponed a few times. I think would be another subheading. Yeah. Alright. If, if you'd like to talk with Leest, uh, give him a call. 9 2 8 2 2 5 24 74. Uh, email Intelligent investing. At WT wealth management.com, uh, we've got more.
Don't go anywhere back in just a few minutes.
You're listening to Intelligent Investing with Leest LEAs. Give Leest a call right now at (928) 225-2474. That's 9 2 8 2 2 5 24 74. More intelligent investing with Leest when we come back.
Hi, welcome back. You're listening to Intelligent Investing with Leest LEAs going over unhealthy and healthy expectations if you work with an advisor. Finishing up our really top 20 list. Yeah. From some experiences over the years. Yeah. Uh, we've got five more here for you and if you want to talk with Leest, give him a call.
Nine two. 2 2 5 24 74. That's 9 2 8 2 2 5 24 74. All right, number six, the grass is greener on the other side, and this advisor I, I've been talking to is, is going to solve everything and it'll be perfect. The grass is greener. Everybody knows what that means. That, that, that argument, Uh huh, it's often not. True.
Yeah. And so, this has come from, again, real life, you know, experience where I'd been working with people for a while and then, you know, they met a friend of a friend that's in the industry, or someone knocked on their door and just sold them, you know? You know the world. We can. greatest thing since slice bread, we can make every, all your problems go away.
Mm-hmm. make you a ton of money, everything's going to be perfect, all that. And so, um, you know, a lot of times unfortunately in this industry, when people are trying to bring on clients or trying to, you know, make that relationship, when that connection happen, is sometimes they tend to maybe, uh, Exaggerate or over, you know, overinflate what they can do.
And so, yeah, I've seen that before where people are just thinking the grass is greener, you know, somewhere else. I mean, 2022, you could have easily done that and said, oh my gosh, this year was bad. I'm going to switch over this other advisor just to find out that , you get the same results. Mm-hmm. Um, and, and that is unfortunate.
And so usually what happens is. If you've seen someone jump ship every two years for the last four or five years, you know, that could be an indication that they, no matter what you do, they're not going to be happy. And I've had clients like that. I mean, you can get them fantastic returns, always, you know, get their phone calls, and respond back and just, you know, do the, give them just excellent, you know, white glove service and they're still not happy.
And so that's something I've had to realize too, is that some people, no matter what you do, you know, they're just not going to be satisfied. They're always trying to look for a greener yard. And, um, I always say, if you're. Not happy with your yard and you want it to be greener, we'll start water in your own yard.
You know, start there first. And I think even in relationships, people come into that issue of, uh, oh my gosh, I could, you know, leave my, this spouse and get in a, you know, different one. Oh yeah. And you'll somehow be better. You're like, yeah, you can have right into the same issues. Maybe they're Notre that problem after a while.
Yeah, yeah, exactly. So, um, and don't get me wrong, like we, we want to do a fantastic, amazing job for our clients and really go the extra mile, but at the end of the day, we just must have healthy expectations too. You know, unfortunately I've seen some clients, uh, you know, some, some neighbor of theirs or some person that they were talking to, you know, got them into like, you know, annuity product that could only go up and can never go down.
Mm-hmm. And it sounded like the greatest thing ever. Well, if it sounds too good to be true, it might be. And so, they went into that and, you know, years later they're realizing that they sacrificed a lot of upside potential to be in that product. Yeah. So, there's always a catch with everything, so.
Sure. I think having the expectation that this new person's going to solve everything, you know, maybe the problem was, you know, the, the, the client having just unhealthy expectations. Well, I think sometimes too, and this is number seven, it's why didn't you see this coming? Um, should, you should have sold like the day.
um, how could you not know this? You should have a crystal ball. And, and that's hard because there's been so many times, and you mentioned some of the pivotal points, Uh huh, 2008, 2000, et cetera, et cetera. Yeah. You know, why didn't you see that coming? Uh, what do they call them? R uh, Armchair quarterbacks. Yeah.
Like Monday morning there, oh, well that quarterback should have done this, and you should have done that and should have done this. Well, hindsight's 2020, right? It's always easier after the fact to say what should have happened. But in the moment, this is what makes our industry so challenging, is that, you know, we have this mandate to grow client money, but also to protect at the same time, which is challenging because if you say, okay, we're convinced everything's going to go down, and so you get out of the market or make a change that way.
You know, you may save them on some downside, but say you, you know, the market starts coming back up and you're, you get in at a different time. You may get in a higher point than when you left. And so, you're like, okay, what, what good did that really do? And so, when people are saying, oh, you should have seen this coming, you know, my thought is, you know, why didn't you see it coming too?
Like if, if you're so smart, like yeah, we know stuff right on the wall, but anything can change in this industry. Mm-hmm. and change in the world and change in economics. I mean, one policy out of the White House could, you know, change a lot and how are we supposed to know that? So, yeah. Yeah. Or how are we supposed to know about Covid?
I mean, these are things that like, we just don't know. And so, I think it's unhealthy to, you know, do that hindsight 2020 when, you know, If you were in the same situation, you wouldn't have been able to guess any better. Well, number eight, I mean, you could become a just a day trader then. I mean, and that's, a lot of people did that, but I think it was kind of cool for a little bit and they had a big score maybe once, but then.
it's kind of like the person who never tells you about their losses at the casino. Oh, a hundred percent. And that's another unhealthy expectation I've, I've seen is that well, timing the markets easy. So, you know, look at my account over here, this Robinhood account, I've, you know, got way better performance than, than your, you know, steady Eddie core portfolio.
And so, yeah. You know, in any given time they may outperform, and they may get lucky, but what happens when they become unlucky and it's, you know, Dramatic downturn. Um, anyone that's been day trading for a while will tell you they wish they never started day trading. catches up. Yeah, it catches up. They wish they just would've put the money in the market or had some professionally manage it and be okay with the long-term growth.
And, uh, not everything happens overnight. I mean, yeah, you could in the market trade options and have a 40% return in one day, but you could also have a 50% downturn the next day. Oh. So, it goes both ways. So, whenever someone's like, oh, I can day trade and do better than your guys', you know, portfolios.
I'm like, okay, great. If you can do better and consistently do that, I'll give you my money to manage. But usually that's never the case. Yeah. You know, luck lucky. But then, yeah, they don't tell you about their losses. They don't tell you about the loss, which is really leads into number nine here. Anyone can do the type of work my advisor does.
It's not that hard. And you mentioned options. I tried that in the early two thousand. That was good for like a month. Mm-hmm. and then wound up losing some money. Yeah. that's a good, a good amount of money. Yeah. Or day trading. The, the, the penny stocks people did that for a while until it was, that was all the rage.
Remember that? Yeah. Yeah. Yeah. And that's always been a. Uh, something that we've battled with in our industry is, um, well, it's not that hard. I anyone can do it. You're like, well, look around you. There are how many people my age is doing this? Um, cause it's not easy. Not at all. I mean, in fact, the, uh, I think the stats are in, within the first three years, 90% of people that enter this industry brand new wash out and don't, are no longer in the industry.
Mm-hmm. So, there's a 90% failure rate for people getting in this industry, which is why you don't see, you know, a thousand advisors and Flagstaff. It's, it's hard, you know, it's hard work and it's not just about knowing all the information. You know, you also must have, you know, a lot of other talents and abilities to.
Too. So, um, yeah, it is a very tough industry for sure. And so, anyone that you know believes that they can do it better, I'm like, okay, great. I hope, I hope you can't. I hope you're right. I really, I really do. Um, but you know, hiring an advisor isn't right for everyone. I understand that. But I think if people are honest with themselves, um, and they.
You know, say they did start managing their own stuff. Um, yeah, I hope they do better, but I think they would realize if we were to compare, you know, years later, their performance versus ours, they would unfortunately have to concede that, you know, their portfolios may not have done as well. Yeah. And there's a lot of, um, work to get to that point.
Yeah. So maybe it happens occasionally, but yeah. Yeah, yeah. And that's number 10. I expect my advisor to help me reach my goals. I'm not willing. Our 10th and final really? Our, it's our 20th. Yeah. It's a two-part series there, but I'm not willing to make any changes, right? Yeah. Which is hard in life, right?
Uh, you don't make any changes. It's, um, that's like if you're a personal trainer and someone's like, hey, I really want to lose a hundred pounds, but I don't want to ever, I don't want to change my diet at all. Yeah. I want all Doritos. Yeah, you're like, that's not possible that you can't exercise your way out of a bad diet.
That's something I've learned over the years too; cause I've done competitive body building. If your diet is not great, there's no amount of exercise or cardio that's going to really outwork that. You really must be willing to make changes, and it goes the same with finances. If you're not willing to make any adjustments or changes, then you may not reach your goals.
And so, I think it's a healthy expectation to say. You know what, if I keep doing the same thing, I'm going to keep getting the same results. Now if I want different results, that means I’d probably must do something different. All right. What is the definition of insanity? It's doing the same thing repeatedly, thinking that you're going to get different results.
Mm-hmm. Um, so yeah, in our industry, I think a healthy expectation is okay. You know, if I'm on track, great. Keep doing the same thing. But if I need to play a little catch up, then I maybe need to make a couple adjustments and be okay with that. Um, but yeah, it's hard to help people that aren't willing to help themselves, if you will.
No, you never can. Yeah, exactly. So, no matter what it is, yeah. Lead the horse to water, but you can't force him to drink. Yeah. All right. Well, uh, folks, you can get in touch with Leest 9 2 8 2 2 5 24 74. Also emails a great way. Intelligent investing. Yep. At WT wealth management.com. And, uh, if you want to listen back to any of this, because like I said, this is a multi-part series.
Mm-hmm. once again, plus there's many others. We, we talked about many of the topics we talked about the last two weeks. In other podcasts look up intelligent investing with Leest Lease. And you know, I did want to make one plug, I just published an article, um, talking about is your cash working for you? So, with the interest rates going up, there's a lot more attractive stuff like in CDs that we can offer that I think you'll be quite surprised.
So, check out our website. Look for that article. Is your cash working for you? And I think. It'll be a great, uh, great read for you. Uh, give out this WT wealth management.com. Yep. Yep. Just go there. Yep. Yeah. And that's CDs we're out of, uh, style for a long time. Yeah. Yeah. And now coming back, you'd be pleasantly surprised what we could do now at the cd.
All right. WT wealth management.com. Leest, have a good rest of your week, weekend. Yeah. And talk with you soon. Thanks, Jeff. Take care everyone. See you next week.
The following has been paid programming brought to you by WT Wealth Management. Nothing we've discussed should be considered as. Advice this conversation was for informational purposes only. Please do your own research and speak to an investment advisor, financial planner before making any investment decisions The following is paid programming brought to you by WT Wealth Management. Nothing we discuss should be considered as investment advice. This conversation is for informational purposes only. Please do your own research and speak to an investment advisor or financial planner before making any investment decisions.
All right. Welcome back to another episode of Intelligent Investing with Leest. And don't forget, you can always catch up on past episodes by looking up intelligent investing on your favorite podcast provider. We got a, uh, second part of a two-part series. Yep. You always like the multi-part. You have some that are like four, five.
There's just so much talk's, just so much and yeah, we, we, we, we can do these. Uh, we could probably turn this into three parts, but I, I try to. Oh, easily. Yeah, easily. So anyway, um, we've been talking about unhealthy versus healthy expectations when you work with an advisor. Mm-hmm, like I said, part two. Uh, if you want to talk with Leest, 9 2 8 2 2 5 24 74.
Also email intelligent investing, WT wealth management.com. But let's, uh, let's pick up where we, from, where we were last week, um, discussing unhealthy expectations of with your advisor and, and how to help you be happier. and more successful, uh, investor going forward. Mm-hmm, uh, number one for the, well, last week we talked about communications and their expectations.
When like, you know, you, you should be able to answer your phone twenty-four seven, answer every question. Yeah. Um, we, we went through all that and that's not a realistic expectation for No, no, no. Anybody in any field at all. The only person that should be able to get ahold of you 24 7 is like your spouse or your immediate family, like, you know, other than that, it's like, hmm.
There's a lot of people out there listening probably. They're like, I need a, like a separate burner phone just for those instant contacts. Oh, it's not a bad idea. Its why people have like the work phone and the personal, they're walking around with two. Yeah. Oh, that's that one. Let me answer that one. Um, but okay, let's, let's, uh, this is number one for this week, really, number 11 in the whole.
Yeah, because we went over 10 last week. My advisor or any advisors out there to get me or to rip me off, that's starting off in a bad kind of dark spot, half empty position. And a lot of these, almost, and I'll say it this way, all of these have come from real world experience of emotions I've worked with are seen or interacted with.
I could feel that making the list. Yeah. Some of them, you're like, is this for real? You're like, yes, this is for real. This is things I've run into. And so. The notion that your advisor's just out there to, you know, make a ton of money off you to pull one over, you know, it's all about them. I think it's really un unhealthy.
I'm a fiduciary. My number one job is to help clients reach their goals, to put their interest first, and that's what I do. And so, to come into a relationship thinking the opposite, makes it hard for me to, you know, have any kind of professional. Relationship. I've heard this from one of my, uh, mentors at my church, pastor Land Merrill.
He says, uh, trust is not earned. Trust is given. Mm-hmm. until you give me a reason not to trust you, I will give you trust. And so, I think that's, um, a better way of doing it in life, uh, is to, because we have to trust people. Uh, you know what, if you're on the airplane right? You have to trust that the pilot's going to fly the plane.
And say, okay, a pilot, you must earn my trust first and then I'll let you fly. There's a lot of things in line for you. Can I see a video of your last landing? Yeah. We must give trust otherwise, I mean, even look at like turning on your electricity, turning on your lights, I mean, you're trusting the aps, you know, is going to provide that service and then the electrician that, you know, trusting that they wired the house correctly.
And so, yeah, I think with an advisor, I think you should start off with the place of I'm going to give them trust and if they give me reasons not to trust them, then yeah. Distrust is earned. Um, trust is given. So, I think that's unfortunately just something I've seen with individuals over the years. And, and some of it's, frankly, all its fear based.
You know, I saw one individual that had one bad experience in like 1950 investing and they never invested ever again in their life. Mm-hmm, it was like, well, I think this story was, oh, I invested $10,000 and my, you know, investment went down to $7,000. I sold out and I never got back in. And, uh, so now I'm never going to invest ever again.
It's all just a, a fix. It's rigged, it's out to get me. And it's like, nah, that's not true. Yeah. How is that money under the mattress work? Yeah. And it's not a fun way to live. Like if you're living in constant fear of what could go wrong, think about what could go right so much. Uh, mess we must be cognizant of what's happening around us, but it.
Easier way to live when you, you know, don't always think the worst of people. Yeah. But, and, and if you look at it though, Leest, people are in business for a long, you've been doing this for a long time. you, you, you, you look up here and you say, well, they've been doing this for a long time. If you are that there's, there's always people out their mm-hmm.
that do bad. Yeah. And that can rip people off that. Usually comes out in not too long of a period. Yeah. Especially if it's a smaller community. Yeah. Yeah. You're not going to be able to stay in business for 10 years by, um, ripping everyone off, ripping everyone off. I mean, word gets around you. I've heard it said that you, uh, if you do a great job, you know, uh, a client maybe tells one or two people if you do a fantastic job, but if they have a negative experience, they'll tell 10.
Yeah. So, yeah, I think that's a, a safe assumption to say, okay, if someone's been doing this a while, it's because they're helping people. If they've got a lot of people that they're helping, it's because they're doing right by them. Yeah. You know, you don't run a successful business by just, you know, always doing the wrong thing for people and ripping them off.
So yeah, you're right. I think you just, um, mentioned as far as mentioning the negative. Uh, business. That's, that's, that's all. When you read a restaurant review or something, do you see a lot of positive? It's usually when someone has a bad experience. Uh huh. Yeah. Yeah. And something, you know, beyond the, you know, restaurant's control or the business's control and it's maybe one of their employees, you know, had a bad day.
Something went, you know, went awry. But, you know, I always take those with a grain of salt. Now if every single comment and there's 50 of them all say bad things, that's a different story. But if they. 20 great comments. And one, I mean, let's face it, there are people out there that are very unreasonable, especially with the internet.
Like they can just say and do whatever they want and, you know, there's no repercussions. Anonymously. Yeah. Anonymously, right. Keyboard warriors. Yep. Un uh, expectation number two, uh, here with Leest, if, if I leave working, uh, with my advisor in a way that is rude or unprofessional, uh, they should just deal with it.
Um, it's only business. Don't take it personally. So, yeah, it's just, it's, this isn't personal, but. Boom, um, don't take this personally, but the, the, there's two statements that are simultaneously true. Yes, it is business. Um, and yes, um, everything's personal, right? You know, everything that I do in this business is personal.
So, if someone is saying, I don't want to work with you anymore because you're an idiot, and they say that it's like, well, how do I not take that personally? I, I'm a human. Like, and, and whether they're right or wrong is, is beside the point. Like, you know, we all deserve to be, uh, treated with trust, uh, and I should say respect and um, and dignity.
And so, if you have someone that is just going around just. Kind of burning bridges just to save a penny or so, especially in a small community that goes around, like people find out like, oh, that person, you know, yeah, they'll work with you. But a second that they could save a penny or two, they'll jump ship and just burn that bridge and they end up, uh, not doing as well as you think you might, uh, when you burn bridges a lot because relationships are important.
Mm-hmm, um, especially in a small town, like Word gets around. If you're a great person to work with and you're reasonable and you're fair, you know, people pick up on that. But if you've got them. The reputation for just being awful to work with. You may have a hard time successful, especially in Northern Arizona, you know, so, yeah.
So, I would say, you know, yes, it is business, but you know, it's, it's always personal. My mindset. There's a relationship to, yeah. Mm-hmm, uh, we, we touched on this quite a bit last week and on past episodes, all those episodes, you can look up intelligent investing, by the way, and your favorite podcast provider.
I, I want to see results and I want them now, from the first year. I, they, they don't have amazing returns. I'm gone kicking them to the curb. We talked about that last. Yeah. Um. and that is unfortunate expectation that we see. And it all depends on which year you start working together, right? If you work together in 2000, the year 2000 mm-hmm.
you know, you're going to say, oh my gosh, my, you know, advisor lost me X percentage, but everyone was down, you know, so that's not necessarily, last year was rough expectation. Last year was rough. I mean, I had some clients that started with me in 2022, and you know, when you look at the report at the end of the year, you.
You know, I've just lost you money so far, you know, for in just one year snapshot. But it, it is a healthy expectation to say, okay, well, I'm going to give it time. Investing is not a, you know, overnight, one year at a time. It's like, I'm going to stay for the long haul because in fact, my marketing material, one of the, the sheets that I print out talks about probability being positive.
Over certain periods of time in the stock market. So good example is say, you know, Leest, I'm going to give you a hundred dollars to invest in the markets. What are my chances of being positive after one day? Well, it's about 50 50, but if he said, what about six months? Well, now it's like 60% chance of being positive, 40% chance of not being positive.
But if you go out to two years, now you're like 85, 90%. And if you go out to three years, you're closer to in the mid-nineties. So sometimes it's having the right expectation of how long results take. And so, yeah, on year one, I'm. Been nice, uh, working with the people because it could be a year where we have a bad year in the market and they may, oh my gosh, I don't know what they're doing, and the market was down and I'm down.
They should have had a silver bullet somehow, you know, magic solution. Um, or it could be a year they start working and we get lucky, and the market just does incredibly well. Um, you know, was it back in the nineties, um, anyone could make money in the stock market. I mean, you could just throw a dart at the wall.
Late nineties were crazy and just everything was making money. So, but that doesn't last forever too. No. Yeah. That led to 2000, which wasn't a good year like you already said. Um, just this is general life, uh, instructions or, um, information. I guess we, we hit on this heavily last week. Uh, is service request, you know, you call up mm-hmm.
and you, the instantaneous culture that we live in. Yeah. I don't think it's a, it's a healthy culture connected all the time. Uh, 24. Um, there's a lot of people that think that you should never take more than 24 hours to get back to you, or that you should, I'm sorry, that you shouldn't be getting back to you instantaneously.
Yeah. And not within like a 24-hour period, you know, I guess around or something reasonable. The, it also looks at the size of the organization too. So, if it's like a multinational. Company and they've got a call center. Yeah. I would say it's a reasonable expectation that you can call and get ahold of anyone any point in time.
Like, like your power goes out. Yeah, yeah, yeah. That's a reasonable expectation. But if you're like, Hey, I'm working with this, you know, smaller group that's, you know, five to six people mm-hmm. , um, and, uh, say everyone's calling in at the same time and you're not able to get in right away and you leave a voicemail and they get back to you within 20 or four to 48 hours.
I feel like that is perfectly reasonable, especially if it's stuff that, it's not as time sensitive. So, if you're like, Hey, I need to make an adjustment to my portfolio today. Sure. I guess that's more urgent. But even that, I even have a hard time thinking that one or two days in the market makes a substantial jet over time too.
So, I think that instantaneous culture is, has led us to, uh, frankly, instant gratification too. Mm-hmm, you know, we have a hard time with the delayed gratification. You're like, ah, I want my marshmallow now. I'm not going to wait an extra five minutes to get the extra marshmallow. Um, and so I think we're seeing a lot of that nowadays.
Even big organizations have challenges. I mean, recently we had power outages in Northern Arizona where about a quarter of the county was without power. Mm-hmm. Yeah. And I bet you if you had called the electric company APS at that time mm-hmm, they, they probably were like, nothing. Nothing. We we're trying, yeah.
It was big storms. Yeah. You know what, what are you going to do? All right, one more here. We're, we're with Leest Lease. Um, I think we all fight with this, the negative side of things. Everything is bad, especially if you. things going on in the world and the global situation. Mm-hmm, or even regionally, whatever that may be.
And you're like, everything is going to collapse. Everything is bad. But then sometimes if you step back and look at your life, you say live a pretty good life overall. In, in this world, most people, it's all about perspective. Yeah. Right. And so yes, in America you can, um, look at everything that's going wrong, or you can look at, hey, what do I got going?
Well, My life. I've got food on the table, got, you know, clothes on my back, roof over my head, running water, you know, running water, you know, I've got access to healthcare, electricity most of the time. Um, and so I think that goes the same thing goes with investing too, or any kind of finance. You know, like again, fear is not a good place to make financial decisions based out of fear.
Um, because usually, inevitably those are when bad decisions are made. Um, you know, very wise people. I think as Dave Ramsey says, you don't want to make any big life choices when you're angry. Mm-hmm. Or fearful or under the influence, you know, of something that's just not, not good life advice. Yeah. And so, yeah, so, and I, I've, I've seen that before with different people I've worked with is, you know, they're very concerned about what's going on in the world.
But then I have another sheet in my marketing material that I put out that shows, okay, let's look at the last 15 years, uh, of the markets. And then on that, um, uh, graph of how the markets have done. It has all the different geopolitical events, the oh, you know, major world crisis events, all these different things.
And so, there's the, it's like scattered with all these events, but then you look at the graph and it's like, it just keeps chugging along. Right? And I think that goes to the core of what companies are trying to do. Every company is trying to make a profit and make more money each year, and. You know, excellent, good.
Or service to, to individuals. Yeah. And so that's their, their motive. So it is a healthy expectation to say, over time, companies want to make more money, they're going to be worth more. That's the goal of, you know, starting any company. Um, even non-profits, they say the word non-profit, but they still must turn, you know, have, be positive cash flow.
Mm-hmm. uh, otherwise they're not going to be able to sustain themselves. Maybe it's subsidized That's different from the government. Yeah, definitely. Definitely. Yeah. But even the government should probably work like that too. You know, we need to, you know, stay in the, in the black. Not, we can only wish. Right.
We can only wish. Right. Yeah. I'd love to see that chart though, that, that the ending of the world has been postponed a few times. I think would be another subheading. Yeah. Alright. If, if you'd like to talk with Leest, uh, give him a call. 9 2 8 2 2 5 24 74. Uh, email Intelligent investing. At WT wealth management.com, uh, we've got more.
Don't go anywhere back in just a few minutes.
You're listening to Intelligent Investing with Leest LEAs. Give Leest a call right now at (928) 225-2474. That's 9 2 8 2 2 5 24 74. More intelligent investing with Leest when we come back.
Hi, welcome back. You're listening to Intelligent Investing with Leest LEAs going over unhealthy and healthy expectations if you work with an advisor. Finishing up our really top 20 list. Yeah. From some experiences over the years. Yeah. Uh, we've got five more here for you and if you want to talk with Leest, give him a call.
Nine two. 2 2 5 24 74. That's 9 2 8 2 2 5 24 74. All right, number six, the grass is greener on the other side, and this advisor I, I've been talking to is, is going to solve everything and it'll be perfect. The grass is greener. Everybody knows what that means. That, that, that argument, Uh huh, it's often not. True.
Yeah. And so this has come from, again, real life, you know, experience where I'd been working with people for a while and then, you know, they met a friend of a friend that's in the industry, or someone knocked on their door and just sold them, you know? You know the world. We can. greatest thing since slice bread, we can make every, all your problems go away.
Mm-hmm. make you a ton of money, everything's going to be perfect, all that. And so, um, you know, a lot of times unfortunately in this industry, when people are trying to bring on clients or trying to, you know, make that relationship, when that connection happen, is sometimes they tend to maybe, uh, Exaggerate or over, you know, overinflate what they can do.
And so, yeah, I've seen that before where people are just thinking the grass is greener, you know, somewhere else. I mean, 2022, you could have easily done that and said, oh my gosh, this year was bad. I'm going to switch over this other advisor just to find out that , you get the same results. Mm-hmm. Um, and, and that is unfortunate.
And so usually what happens is. If you've seen someone jump ship every two years for the last four or five years, you know, that could be an indication that they, no matter what you do, they're not going to be happy. And I've had clients like that. I mean, you can get them fantastic returns, always, you know, get their phone calls, and respond back and just, you know, do the, give them just excellent, you know, white glove service and they're still not happy.
And so that's something I've had to realize too, is that some people, no matter what you do, you know, they're just not going to be satisfied. They're always trying to look for a greener yard. And, um, I always say, if you're. Not happy with your yard and you want it to be greener, we'll start water in your own yard.
You know, start there first. And I think even in relationships, people come into that issue of, uh, oh my gosh, I could, you know, leave my, this spouse and get in a, you know, different one. Oh yeah. And you'll somehow be better. You're like, yeah, you can have right into the same issues. Maybe they're Notre that problem after a while.
Yeah, yeah, exactly. So, um, and don't get me wrong, like we, we want to do a fantastic, amazing job for our clients and really go the extra mile, but at the end of the day, we just have to have healthy expectations too. You know, unfortunately I've seen some clients, uh, you know, some, some neighbor of theirs or some person that they were talking to, you know, got them into like, you know, annuity product that could only go up and can never go down.
Mm-hmm. And it sounded like the greatest thing ever. Well, if it sounds too good to be true, it might be. And so, they went into that and, you know, years later they're realizing that they sacrificed a lot of upside potential to be in that product. Yeah. So, there's always a catch with everything, so.
Sure. I think having the expectation that this new person's going to solve everything, you know, maybe the problem was, you know, the, the, the client having just unhealthy expectations. Well, I think sometimes too, and this is number seven, it's why didn't you see this coming? Um, should, you should have sold like the day.
um, how could you not know this? You should have a crystal ball. And, and that's hard because there's been so many times, and you mentioned some of the pivotal points, Uh huh, 2008, 2000, et cetera, et cetera. Yeah. You know, why didn't you see that coming? Uh, what do they call them? R uh, Armchair quarterbacks. Yeah.
Like Monday morning there, oh, well that quarterback should have done this, and you should have done that and should have done this. Well, hindsight's 2020, right? It's always easier after the fact to say what should have happened. But in the moment, this is what makes our industry so challenging, is that, you know, we have this mandate to grow client money, but also to protect at the same time, which is challenging because if you say, okay, we're convinced everything's going to go down, and so you get out of the market or make a change that way.
You know, you may save them on some downside, but say you, you know, the market starts coming back up and you're, you get in at a different time. You may get in a higher point than when you left. And so you're like, okay, what, what good did that really do? And so, when people are saying, oh, you should have seen this coming, you know, my thought is, you know, why didn't you see it coming too?
Like if, if you're so smart, like yeah, we know stuff right on the wall, but anything can change in this industry. Mm-hmm. and change in the world and change in economics. I mean, one policy out of the White House could, you know, change a lot and how are we supposed to know that? So, yeah. Yeah. Or how are we supposed to know about Covid?
I mean, these are things that like, we just don't know. And so, I think it's unhealthy to, you know, do that hindsight 2020 when, you know, If you were in the same situation, you wouldn't have been able to guess any better. Well, number eight, I mean, you could become a just a day trader then. I mean, and that's, a lot of people did that, but I think it was kind of cool for a little bit and they had a big score maybe once, but then.
it's kind of like the person who never tells you about their losses at the casino. Oh, a hundred percent. And that's another unhealthy expectation I've, I've seen is that well, timing the markets easy. So, you know, look at my account over here, this Robinhood account, I've, you know, got way better performance than, than your, you know, steady Eddie core portfolio.
And so, yeah. You know, in any given time they may outperform, and they may get lucky, but what happens when they become unlucky and it's, you know, Dramatic downturn. Um, anyone that's been day trading for a while will tell you they wish they never started day trading. catches up. Yeah, it catches up. They wish they just would've put the money in the market or had some professionally manage it and be okay with the long-term growth.
And, uh, not everything happens overnight. I mean, yeah, you could in the market trade options and have a 40% return in one day, but you could also have a 50% downturn the next day. Oh. So, it goes both ways. So, whenever someone's like, oh, I can day trade and do better than your guys', you know, portfolios.
I'm like, okay, great. If you can do better and consistently do that, I'll give you my money to manage. But usually that's never the case. Yeah. You know, luck lucky. But then, yeah, they don't tell you about their losses. They don't tell you about the loss, which is really leads into number nine here. Anyone can do the type of work my advisor does.
It's really not that hard, and you mentioned options. I tried that in the early two thousand. That was good for like a month. Mm-hmm. and then wound up losing some money. Yeah, that's a good, a good amount of money. Yeah. Or day trading. The, the, the penny stocks people did that for a while until it was, that was all the rage.
Remember that? Yeah. Yeah. Yeah. And that's always been a. Uh, something that we've battled with in our industry is, um, well, it's not that hard. I anyone can do it. You're like, well, look around you. There are how many people my age is actually doing this? Um, cause it's not easy. Not at all. I mean, in fact, the, uh, I think the stats are in, within the first three years, 90% of people that enter this industry brand new wash out and don't, are no longer in the industry.
Mm-hmm. So, there's a 90% failure rate for people getting in this industry, which is why you don't see, you know, a thousand advisors and Flagstaff. It's, it's hard, you know, it's hard work and it's not just about knowing all the information. You know, you also must have, you know, a lot of other talents and abilities to.
Too. So, um, yeah, it is a very tough industry for sure. And so, anyone that you know believes that they can do it better, I'm like, okay, great. I hope, I hope you can't. I hope you're right. I really, I really do. Um, but you know, hiring an advisor isn't right for everyone. I understand that. But I think if people are honest with themselves, um, and they.
You know, say they did start managing their own stuff. Um, yeah, I hope they do better, but I think they would realize if we were to compare, you know, years later, their performance versus ours, they would unfortunately have to concede that, you know, their portfolios may not have done as well. Yeah. And there's a lot of, um, work to get to that point.
Yeah. So maybe it happens once in a while, but yeah. Yeah, yeah. And that's number 10. I expect my advisor to help me reach my goals. I'm not willing. Our 10th and final really? Our, it's our 20th. Yeah. It's a two-part series there, but I'm not willing to make any changes., right? Yeah. Which is hard in life, right?
Uh, you don't make any changes. It's, um, that's like if you're a personal trainer and someone's like, hey, I really want to lose a hundred pounds, but I don't want to ever, I don't want to change my diet at all. Yeah. I want all Doritos. Yeah, you're like, that's not possible that you can't exercise your way out of a bad diet.
That's something I've learned over the years too; cause I've done competitive body building. If your diet is not great, there's no amount of exercise or cardio that's going to really outwork that. You really must be willing to make changes, and it goes the same with finances. If you're not willing to make any adjustments or changes, then you may not reach your goals.
And so I think it's a healthy expectation to say. You know what, if I keep doing the same thing, I'm going to keep getting the same results. Now if I want different results, that means I’d probably must do something different. All right. What is the definition of insanity? It's doing the same thing repeatedly, thinking that you're going to get different results.
Mm-hmm. Um, so yeah, in our industry, I think a healthy expectation is okay. You know, if I'm on track, great. Keep doing the same thing. But if I need to play a little catch up, then I maybe need to make a couple adjustments and be okay with that. Um, but yeah, it's hard to help people that aren't willing to help themselves, if you will.
No, you never can actually. Yeah, exactly. So, no matter what it is, yeah. Lead the horse to water, but you can't force him to drink. Yeah. All right. Well, uh, folks, you can get in touch with Leest 9 2 8 2 2 5 24 74. Also emails a great way. Intelligent investing. Yep. At WT wealth management.com. And, uh, if you want to listen back to any of this, because like I said, this is a multi-part series.
Mm-hmm. once again, plus there's many others. We, we talked about many of the topics we talked about the last two weeks. In other podcasts look up intelligent investing with Leest Lease. And you know, I did want to make one plug, I just published an article, um, talking about is your cash working for you? So, with the interest rates going up, there's a lot more attractive stuff like in CDs that we can offer that I think you'll be quite surprised.
So, check out our website. Look for that article. Is your cash working for you? And I think. It'll be a great, uh, great read for you. Uh, give out this WT wealth management.com. Yep. Yep. Just go there. Yep. Yeah. And that's CDs we're out of, uh, style for a long time. Yeah. Yeah. And now coming back, you'd be pleasantly surprised what we could do now at the cd.
All right. WT wealth management.com. Leest, have a good rest of your week, weekend. Yeah. And talk with you soon. Thanks, Jeff. Take care everyone. See you next week.
The following has been paid programming brought to you by WT Wealth Management. Nothing we've discussed should be considered as. Advice this conversation was for informational purposes only. Please do your own research and speak to an investment advisor, financial planner before making any investment decisions