Feel the “Paying”: 2 keys to know you’re getting value from your financial person

Every decision you make is based on the value you receive. Take your morning: is the $1 for the coffee worth the warm drink and cascade of caffeine in your system?  Is there value in brushing your teeth for a minute to help ensure dental health and squash morning breath? Is driving 5 mph above the speed limit and risking a ticket worth getting to work 2 minutes earlier?

You make those decisions every day with hardly a thought. Other decisions don’t come as natural, such as deciding if your family should get help with their financial plan or investments.

Why is it a tough decision? Quick survey: do you know exactly how much you are paying or have paid to a financial services professional when you’ve engaged their services? You don’t, but hardly anyone does.

Why does nobody know? Because it’s a pain to figure out what you’re “paying”. But without knowing the cost, it’s impossible to determine the value of financial advice.  So you’ll either skip the advice entirely or simply find the guy (or gal) in the industry you can trust and say “take care of it and spare me the details”.  

It shouldn’t be this way. Many people hate on the financial services industry because it’s greedy and deceptive. The hate is often justified. But what’s the solution? According to recent Department of Labor rulings, the cure is government intervention, but such intervention will not come without its own costs. I have a better idea.

To improve perceptions of financial services, empower consumers. When a consumer is empowered with good information, they will flee from greedy and deceitful businesses. Consumers of financial advice need and deserve to know what they are paying. They should demand to know what they’re paying. So let’s shout it from a mountain, it’s time to FEEL THE PAYING so families can engage financial advice with confidence.

The challenge: the financial services industry would rather not share this information. So it’s no surprise the commissions, fees and expenses are buried deep within the products or services sold. And by buried deep, I mean many advisors themselves cannot quickly ascertain how much of your money is being paid in fees, commissions, or other expenses.

But take heart, you are not a hapless victim. To help you determine the value of financial advice for your family and feel the paying, you simply need 2 keys.


If you want to know the fees, commission, and expenses you are currently paying, your most powerful tool is to ask your advisor.

Be sure to watch the advisor’s reaction when you ask about expenses. Does he confidently look you in the eye and maintain calm composure? Does he give you a clear and understandable answer? He should, because as much as fees and expenses mean to a family’s long term financial well-being, the advisor should know the answer to the question and clearly communicate the information to you.

Be ready to ask the question about fees and expenses more than once. And if you still aren’t sure you are getting all the information, just sit silently as you consider the advisor’s answers. Silence is powerful tool you can use to get more useful information, or a commitment from the advisor they will work to get you better answers.

Still not confident you’re getting all the information you seek? Ask your advisor’s competitors. Call up a competing financial advisor, tell them exactly what you are doing, and ask them to help you figure out all of your fees and expenses.

Why would competing advisors help you for free? They see an opportunity for new business if they can show you they could provide more value than your current situation.

Still, these solutions still put you at the mercy of the information the advisors know or are willing to disclose. That’s why you need a second key…


Everyone has their own agenda as they publish information, so it’s vital to gather information from multiple sources, not just your advisor. Good news: never in history have you had access to more information from more sources than today.

But all that information may overwhelm you, so here’s a quick educational guide for understanding the primary fees you’re likely paying when it comes to financial advice and investing:

Product commission: This is a charge based on a percentage of the money put into a particular financial product, most or all of which goes to the salesperson recommending the product. An example is an annuity which normally carries a 7% commission. That’s $7,000 on a $100,000 investment.

The salesperson may say that the commission is not paid out of your investment and that you’ll still see your full $100,000 on your statement, but consider two questions: First, if the money doesn’t come from the investor’s investment, where does it come from? The company? But where do they get their money. See where I’m going here? It’s always the investor’s money that pays the commission, however indirectly.

Second, can the investor get the full $100,000 back out next month if something changes? The answer is inevitably, no. If you want your money back before a certain period of time, you’ll likely receive your initial investment minus 1-12%, depending on how long you’ve held the investment.

Many mutual funds also have commissions. The commission is called a sales charge, and the upfront sales charge can climb up to 5.75% on the initial investment. How much the charge is depends on which share class your money is invested in (A, B, C, R, and I are common share classes) and how much is invested.

And because one share class has a lower upfront sales charge than others, it doesn’t mean the salesperson is doing you a favor. If there’s a lower upfront sales charge, you’ll be charged higher exit fees (called contingent deferred sales charges or CDSC) or higher ongoing expenses which leads us to…

Mutual fund (and ETF) expenses: Mutual funds often have ongoing fees called 12b-1 fees. A large portion of this fee will go to the salesperson (or their company) who invested you into the fund. It’s also referred to as a distribution fee. To figure out how much it is, do an internet search for your fund and then find the expense ratio. The 12b-1 fee is normally included as a part of the expense ratio.

Expense ratios on mutual funds and exchange traded funds (ETFs) can range from next to zero all the way to 2%. Beside 12b-1 fees, the expenses a fund charges goes to the advisor(s) managing the fund and the company that provided administrative duties for the fund.

To get more information on these expenses, as well as sales charges on funds, do an internet search with the ticker symbol of your fund and “prospectus” (i.e. XYZ prospectus). Within the first few search results, you should see either a PDF link or a page containing a PDF link to your funds prospectus. Once you have the PDF prospectus, hit CTRL+F on your keyboard (or command + F) to do a document search, then type in any of the following to find what you’re looking for: 12-b, management fees, sales charge.  

Transaction fees: This is the cost of buying or selling a stock, bond, mutual fund, or ETF. Sometimes an investor can see this cost directly deducted from their account, and other times it’s absorbed by the fund or the brokerage company and added to the ongoing expenses.

Certain custodians will waive these fees if you buy certain funds, especially their own funds. They can do this because they’ll either make money by creating an incentive for people to buy their own funds, or in the case they’re offering another company’s funds, they’ll usually get a kick back (which is very tough information to uncover).

Advisory fee: The advisory fee is normally deducted from the investment account managed by the financial advisor. This fee ranges from 0.15% for highly automated advisors (like robo-advisors) to 2-3% for hedge fund managers. A 1% fee is usually thought of as average, however, the average is dropping thanks to competition.

Retirement plan expenses: Many of the expenses paid by your company’s retirement plan fall into the categories already listed, but they are worth listing separately because they are often paid by your employer. Sounds good for investors, right? Only if your company has made sure they are getting good value for the expense. If not, that is wasted money that could be added to your account through a higher employer contribution.

To determine the expenses on your company’s retirement plan, you may have to dig in the weeds of your plan’s documents, and even then you could come up short of having all the information. Your next place to turn would be your own company’s financial statements, which should list if they are paying a third party advisory firm and how much.

Flat fees (hourly or retainer): These fees are normally paid out-of-pocket (by check or deducted from your bank account) as opposed to being deducted from your accounts. These are the most transparent of all the fees listed.

There are also numerous books to help you avoid getting duped by high fees. One of my favorites is John Bogle’s The Little Book of Common Sense Investing. Tony Robbins wrote Money Master the Game which contains great information on financial fees, but be warned, he rambles and has some potential conflicts of interest with the advice he’s giving.

Two simple keys: communication and education. Those can completely alter the course of your family’s financial plan. Even if you met your advisor at church (or especially if you met your advisor at church), you have to be willing to drill him on commissions, fees and expenses. Don’t be afraid to ask, it could literally be a million dollar question. And educate yourself. You don’t have to become an expert, but basic understanding of the financial fees playing field will empower you and be worth your time. Avoid financial pain by knowing what you’re paying.

Do you know the six greatest words in the English language?

I love everything about these 6 words. They lay at the foundation of my life. And they have a lot to say about your life as well.

The best is yet to come

Those 6 words have 4 attributes which make it profound.

First, is what it means for the future.

Those words are the epitome of optimism. There’s only one alternative to optimism. And pessimism implies that life is mostly outside of your control, which is a defeated and false way to live life.

The second is what those words say about the past, or more appropriately, what they don’t say about the past.

There is no implication in that phrase of whether the past we’ve come from was incredible or terrible.

Some are thinking “the best better be coming because I’ve already been through hell and back” while others are worried they’ve already used up their good years as if it’s a finite resource.

But “the best is yet to come” puts those who’ve been through hell at the same starting line as those who have never felt better. In light of these words, our pasts matter not, there is only our future.

The third quality is the use of the word best.

The definition gives us all we need to know: of the most excellent, effective, or desirable type or quality. There is no room here for decent, pretty good, or half-heartedness. The best trumps all.

The last profound attribute of this phrase is its certainty.

The best is coming, there is no might or maybe. If you believe it in the depth of your being, then it becomes your reality. If the best isn’t here yet, it means you simply have to hold on a bit longer, and it will soon arrive.

Granted, this will not be everyone’s reality. In fact, many will simply refuse to believe it. My heart breaks for them because I can see clearly what they’re missing out on. And it’s really good.

As for me and my family, the “best is yet to come” is our reality which makes it a truth in our lives, and that jazzes me up.

But this isn’t just me and my family. You and your family were also created for a purpose. I hope you see that. That purpose often gets lost in this dark chaotic world. Our adventure is cutting through the darkness to win back the purpose we were created for.

In the meantime, we don’t need to complicate it. It’s as simple as it’s ever been and it’s as simple as it ever will be. Repeat it to yourself hundreds, better yet, thousands of times:

The best is yet to come.

Why the Name Greater Than Financial? For Purpose

So many problems in the world, so many reasons to be pessimistic. No need for an exhaustive list, you’re familiar with the darkness, it’s all around us. And there you sit as a parent in the 21st Century wondering what kind of world you brought kids into, feeling helpless to truly make a difference and find prupose in this daily chaos.

That helpless feeling is one of the worst. You can identify the problems, but there’s nothing you can do. We think “it’s out of my control” or “how could I really make a difference?” And you’re right, the solutions to the world’s problems, our country’s problems, or even our local communities’ problems seem much bigger than you or me. However, we are not helpless.

We do have the power to change what needs to be changed, but the scope of the issues put us at a significant disadvantage. It means we must use every resource at our disposal to make our impact. We can’t afford more hapless attempts that merely bounce off the armor of the problems we face. It’s time to be strategic.

We may not be world leaders or even community leaders, but we do hold the keys to hope for our children’s and children’s children’s world. Which is exactly our advantage.

While there are countless forces beyond our control, we do have direct access to one of the most, if not the most, powerful forces in the universe: the lives and minds of our children. Walt Disney claimed, “Our greatest natural resource is the minds of our children.” And by who or what are those minds most influenced? Those they are closest to: their family. A family always has and always will be the bedrock of healthy societies. And he who holds the hearts and minds of a family holds the keys to the future.

So we find ourselves in possession of a power with unmeasurable potential, holding the keys to the future, and yet we’ve buried the keys in life’s junk drawer while we flip on the game or hop on Facebook. Our lack of motivation to lead our family doesn’t seem like a threat because it seems we are too insignificant to really make a difference. It’s time to start seeing that kind of thinking for what it really is: a lie. We have merely lacked engagement and failed to take advantage of the one thing we have the most influence over.

That is why I created Greater Than Financial. You see, every conversation about your resources (money) is really a conversation about what’s important to you. If we can make it simpler for you to use your resources to lay a healthy foundation for our families on which to flourish, our families will mature into productive engaging forces in our world. If enough families live with that kind of purpose we will see the positive repercussions move throughout our society.

How will Greater Than Financial be able to move families to live with such a purpose? First, eliminate the noise and distractions that paralyze us from moving our families to something greater. What would happen to your family if it became crystal clear what’s truly important to you? Why hasn’t that happened for you yet? Because in the hustle of life, you barely get time to slow down enough to eat and briefly talk together, let alone think about the bigger picture.

You need an intentional intervention, which is exactly what I plan to provide. If a family gets professional, expert help to first determine what’s truly important to them. The next step is to make a plan on how to most efficiently accomplish that purpose, clearing the path for achieving something significant. It’s a simple strategy, but with it, I think we have all we need to impact this world.

If I live to work an average length career, I’m not even out of the 1st quarter yet. So with most of the game ahead of me, I’ve realized something. If I spend my time simply helping people manage investments the potential impact will always be limited. But if I spend my time helping move families to train up their children and set the stage for world impact, that sounds like an adventure of a lifetime.

That’s why the name of this company is Greater Than Financial. I see the potential impact of the conversations I plan on having being far greater than only financial. I honestly see them as being eternal, which is the highest purpose I can imagine.