For professional advisors like Baker Tilly Toronto, staying current in this business landscape is critical. And for insurance intermediaries, the key to thriving in this environment is to partner with experts like Baker Tilly Toronto that offer specialized expertise and strategic guidance.
Steven Frye, Baker Tilly Toronto
An ever-changing business landscape
“With the massive transfer of wealth currently going from one generation to the next, there’s a lot of consolidation going on,” explains Steven Frye, partner, audit, valuations and corporate finance at Baker Tilly Toronto, a leading independent audit, tax and advisory firm. “And private equity groups have driven the value of insurance brokerages up to a level that I didn’t even think was possible 20 years ago.”
While the rise of brokerage valuations is a good thing for owner-operated businesses, it also creates new complexities, such as increased competition, succession planning complications and the need for strategic planning to maximize value during transitions.
Technological advancements and the increasing use of artificial intelligence (AI) add further layers of market disruption. “AI is changing the way the insurance industry operates,” says Frye. “Twenty-five years ago, this was all just a concept.”
These disruptors threaten insurance providers’ stability and growth trajectory. Fortunately, Baker Tilly Toronto specializes in the insurance industry, providing personalized, specialty support through its team’s in-depth knowledge of financial, regulatory, compliance, technological, operational, benchmarking and bookkeeping issues related to the market.
“We stay current with what the issues are. A key to being a trusted advisor is to really understand where the client is at the moment.”
Steven Frye
Introducing Baker Tilly
Frye is a founding member of Baker Tilly Toronto, part of the Baker Tilly cooperative. He brings over 25 years of expertise in the valuation of insurance brokerages and consulting for companies in the financial services, manufacturing and technology-based industries. Frye’s experience in a broad range of specialty services (acquisitions and divestures, corporate finance, litigation support, regulatory matters and operations consulting) exemplifies Baker Tilly Toronto’s unique ability to address its clients’ needs successfully.
The firm’s well-trained teams work across a variety of disciplines to align their skills with client requirements, ensuring exceptional outcomes. In addition to providing assurance, valuation and corporate finance services to the insurance industry, Baker Tilly Toronto also helps clients with planning, operations and profitability.
“We stay current with what the issues are,” says Frye. “A key to being a trusted advisor is to really understand where the client is at the moment.” Baker Tilly Toronto offers strategic expertise to keep insurance providers competitive in the disrupted market. From succession planning to corporate finance, the firm works with insurance providers to ensure their businesses are well-positioned for the future.
It also ditched U.S. expansion efforts after selling its U.S. book of business to Betterment in 2021, and sold its Wealthsimple for Advisors to Purpose Advisor Solutions as it focused in on Canadian consumers.
The company’s valuation is also down from its peak. Power Corp., which across several divisions together held a 55.1% undiluted equity interest as of June 30, said the fair value of its holding was $1.5 billion. That’s down from $2.1 billion in 2021.
But the company has still managed a steep climb in assets from growth across the board, whether it’s wealth management, trading and brokerage or its banking business, said Katchen.
It comes as Wealthsimple increasingly positions itself as a full-suite alternative to the big banks, including boosting its banking services last year, that has helped lead to a $20 billion boost to the bank’s net deposits.
“We’ve been pretty excited about a more complete product offering,” said Katchen.
Product expansion to include mortgages, credit and insurance
Wealthsimple, which also offers tax services after buying Simpletax in 2019, launched a mortgage offering earlier this year and plans more credit products ahead along with an expansion into insurance, he said.
It’s all part of the company’s effort to rival the big banks, by having more than a trillion dollars in assets under administration.
While Katchen had originally said he’d want to reach that goal within the first 15 years, he’s now aiming for a slightly less ambitious timeline of within 20 years of co-founding Wealthsimple.
The basic investing rules still apply—so do your own research
Marques warned trading, whether whole or fractional, isn’t for everyone—especially those who can’t make time to research a company before buying.
“Although it makes (trading) easier to do so fractionally with a smaller budget, that takes a lot of research,” Marques said.
“In many cases for your average Canadians who may not have the time or the interest or the expertise in researching companies or taking this kind of a gamble on just one company, it’s still more appropriate to work with managed portfolios,” she suggested.
The basics of investing still apply to fractional investing, Boisvert said, such as keeping in mind your time horizon and risk tolerance.
For instance, if you have a goal to put a down payment on a home in the next year, the investor shouldn’t be putting that money into equities that can be volatile in the short-term, she explained.
Instead, rely on tried-and-true investment concepts like diversification, which is also easier to achieve with fractional units, she said. Fractional shares also make it more accessible to purchase stocks at various price points, especially when the purchases are spread across months.
It’s important to not put all of your eggs in one basket, and have no more than 5% of a portfolio in any one holding, Boisvert added.
“When we’re talking about buying units of shares, keep in mind to avoid FOMO (fear of missing out),” Boisvert warned.
Homes built on a hill on Mar W street above Tiburon, California. (Photo by Smith … [+] Collection/Gado/Getty Images).
Getty Images
Whether you own a residential or commercial property, when it’s time to sell, it’s important that your broker utilizes all the tools available to maximize exposure. The level of marketing involved with a property sale will play a key role in the final outcome. In the previous article of this real estate series for brokers, we looked at positioning a place in its best light. Now we’ll move to the next step, which addresses the question: How can your broker get your property out to the widest audience?
Maximizing exposure when selling is a component I learned early on in my career as an investment sales broker, under the guidance of my mentors Paul Massey and Robert Knakal of Massey Knakal in New York City. Over the years I’ve observed how taking extra measures when marketing a property can help generate the most interest and maximize the acquisition price.
In the following sections, we’ll break down ways for your broker to spread the word and find the best buyers for a residential or commercial property.
Posting on Multiple Listing Services
Beginning with the basics, there are various channels that can be used to share information about the property. If you’re selling a residential property, you’ll want your broker to place your home on the local or regional multiple listing services. There are also services at a national level such as Zillow and Trulia, and StreetEasy can be used for properties in the New York City metro area. For commercial properties, sites that will help market a property include CoStar, LoopNet, and Crexi. Be sure your broker adds relevant data which will be helpful for buyers, such as dimensions and amenities that make a place stand out.
Taking it a step further, if your broker has a social media following, they can post details about a property with their audience. I’ve found that sharing videos on channels such as LinkedIn and Instagram often generate interest, and sometimes they grab attention more readily than pictures alone. Buyers frequently tune into a professional video that gives them a visual display of the property and its surroundings. Email lists and broker websites are additional ways to share information in a public way with interested buyers. These work best when e-newsletters include engaging content, and online sites are set up to accommodate mobile browsers.
Reaching Out Directly to Investors
While online communication may help to spread the word, the follow up conversations are what will help the sales process move forward. If a broker has sold other properties in the area, they can make the most of their connections. They might pick up the phone and make calls to buyers who missed out on the last deal and are still interested in purchasing a property.
In today’s digital world, sending out postcards or direct mailings can sometimes help set apart a property and catch the attention of investors. They might take the time to read through a piece of paper, especially if it has professional pictures and relevant details listed. Your broker can include contact information and follow up with a phone call if it seems like the property could be a good fit for the recipient.
Connecting with Others Near and Far
Brokers who are active in organizations will have additional resources when marketing a property. In today’s connected world, it’s very important to have an international reach. Even if a firm is global, that doesn’t necessarily mean that a broker is able to tap into its branches around the world. Make sure your broker has evidence that they can reach an international audience. Given current market conditions, we’ve seen an increase in foreign buyers in some areas. These players may be simply waiting to receive information about an asset that fits their buying criteria.
A Successful Track Record
If your broker has sold a number of properties, they can provide details about past transactions. They may also include a list of references or testimonials for each. For brokers who have built a brand, they can show you what that all includes, and how frequently they share information with their investor base.
To truly maximize the exposure of a property, it’s essential to have a broker lay the marketing foundation and then look for ways to go above and beyond. I’ve seen, time and again, how these extra measures can lead to higher prices and a strong track record. For brokers, these strategies can help both the buyers and sellers, and the brokerage business too. In the next article, we’ll look at the steps needed to properly negotiate the sales process. When this is carried out well, the end game can be a success for everyone involved.
ONTARIO, CA: Houses line the street in the Inland Empire, the area east of Los Angeles, in … [+] Riverside and San Bernardino Counties (Photo by David McNew/Getty Images)
Getty Images
If you’re selling a residential or commercial property, getting a top-notch broker’s opinion of value can work in your favor. You’ll want to work with someone who is aware of what has sold in the past in the market, along with the current environment. It will be helpful if the broker has access to additional insight and data, which will make them stand out from others in the region, and ultimately increase your chances of a successful transaction.
Use these guidelines to get a great broker’s opinion of value.
1. Find Someone Who Uses the Right Sales Comps
A broker who is aware of comparable properties in the area will be able to add a layer of context for an opinion of value. It’s important that your broker focus on the right sales comps and data. They should be calculating the price per square foot of similar assets, which will make it easier to see how a property might perform in the market. For multifamily properties, the price per unit typically provides further insight. Your broker should be checking the cap rate and type of tenancy, along with a review of the conditions of the property. They might even speak with the broker involved in past comparable transactions to learn why a property sold for a certain price.
2. Look for a Broker Who Knows Current Sales
While sales comps provide insight that can be applied toward an opinion of value, they also tend to serve as a rearview mirror. They reflect what happened in the market several months or more in the past. The data they provide could be a year old and might not accurately portray recent trends.
For this reason, it’s essential for both residential and commercial brokers to have a grasp of current sales. In fluctuating markets with rising interest rates, the more recent the data, the better. If your broker knows what was signed in the past week, they’ll be able to apply those details to the property you’re currently preparing to sell.
3. Get a Broker Who Understands the Marketplace
In addition to macro trends, a great broker will be aware of the pulse of the submarket. This could include looking at job data to see if employment rates are increasing, how population demographics are changing, and what amenities residents are interested in.
Knowledge of the potential of a place can help to add depth to an opinion of value. For commercial properties, details on an income approach could be added to the estimate. The information might list what you, as an investor, could look for in a property that is delivered vacant. For instance, is there a premium? Would someone pay to use it? If there are opportunities for development, this could be outlined as well. Taxes will need to be addressed too.
4. Work with a Broker Who Has a Solid Track Record
After breaking into a market, each sale can help to establish a broker’s credibility. A long list of successful transactions and referrals will add relevance to an opinion of value. As I mentioned in an earlier article, I offer to show others my entire sales list and let them contact any owner from it.
Getting an in-depth and accurate broker’s value of opinion can help you differentiate yourself from other sellers in the space. It gives you the chance to leverage data about current market conditions, along with additional insight that can be used later in the deal. Of course, there’s more to the equation when selling than a broker’s opinion of value, and we’ll cover these additional topics in future articles. The best brokers will have a tangible marketing plan for the property, be able to show the place in the best light and be ready to be involved in the negotiation process.
It might seem obvious that you’d want to work with a broker who has high standards when you’re selling your home or commercial property. Certainly, there are various requirements that salespeople must have to operate in the market. However, it can be important to check for signs that the broker will act ethically throughout the sales process.
Keep in mind that it’s essential to find someone who will take a long-term view of the relationship. A credible broker will act with your best interests over their own. They’ll be a fiduciary and make sure to do right by you, even if it’s to their detriment. As I mentioned in my previous article, it’s really important to have a professional put themselves in your shoes and be client centric.
Follow these guidelines to learn more about a broker’s standards and evaluate if they align with yours.
Check for Real Estate Credentials
It’s common for brokers to have state licenses, and many also obtain higher levels of certification. In commercial real estate, this could include distinctions such as CCIM, which stands for Certified Commercial Investment Member and indicates they are a recognized expert in the real estate industry. They might also have obtained additional coursework from their local real estate board. They may have higher learning, such as continuing education, professional studies, or a master’s degree.
Review the Commissions Landscape
If a broker is representing your property for sale, they’ll be receiving offers which could come directly to them or be from another broker. If the bid comes straight to the broker, they could make a full commission on the deal; however, if the offer is from another broker, they might have to split the fee. This means that a direct offer could yield double the commission for a broker compared to a split commission with a co-broker involved.
You’ll want to watch and listen to make sure your broker handles these situations wisely. If they are pushing to work with a direct buyer, it could potentially be a sign that they are hoping to get a full commission and avoid splitting a fee 50/50 with another broker. Observe conversations to see what statements they are making and which questions they are asking. You’ll want to be working with someone who is looking to get the best offer for your property, regardless of how the commission will be impacted in the end.
Check the Broker’s Interest in Purchasing
Some brokers sell properties, and also invest in real estate. I do this myself; however, it’s essential to follow certain guidelines to avoid a conflict of interest. If you’re working with a sales professional who offers to represent you to sell your home or building, and then shares that they would prefer to buy your property themselves, it could be a red flag. That’s because there is a possibility that they are not looking to get the highest price for your asset. In fact, they could be aiming to swoop in and buy the property for a lower amount.
When I act as an investor, I always buy properties represented by another broker. That way, I know the owner is working with an advisory team to get the best price. The broker has the chance to run a professional marketing campaign and look at offers from various buyers interested in the property.
As you carry out initial conversations with brokers, pay attention to their educational background and how they respond to your questions. During the sales process, be aware of the commissions landscape and look at the potential buyers that are approaching the property. If the broker asks to purchase your home or commercial space, it may be a sign to consider working with another sales professional. In the end, you’ll want to partner with a broker who has high standards and ethics, and who will act in a professional manner throughout the sales process.
SAN FRANCISCO – JANUARY 30: A for sale sign is seen on a single family home in Vallejo, … [+] California. (Photo by David Paul Morris/Getty Images)
Getty Images
Whether you’re selling your home or commercial property, the broker you work with during the process can make a significant difference. This is especially true in today’s market, which faces several factors including a shortage of homes and rising interest rates. It may be necessary to find the right buyer for your place, and that can take considerable time and effort.
In this series of articles, we’ll be looking at the various aspects to look for in a broker. This can be helpful to maximize both the exposure of a property and the sale’s outcome. To start, we’ll focus on how to select a broker who will really put themselves into your shoes. Check for these characteristics as you search for a professional who can help you sell one of your current assets—and potentially many more in the future.
Look Our for Your Best Real Estate Interests
When you speak to a broker, listen for signs that they are viewing the sale from your perspective. Ask yourself, “Is this broker simply seeking a quick sale to make a fast commission?” Or “Is the broker placing themselves in my situation to make the best decision?”
In a recent interview with Rod Santomassimo, a CRE broker growth coach and founder of The Santomassimo Group, on my podcast “The Insider’s Edge to Real Estate Investing,” Rod emphasized the value in qualifying brokers. One of the questions he likes to ask is, “When was the last time you advised an owner not to sell?” The answer helps reveal if the broker generally advises clients to jump into the market and make the sale, or if they tend to take a longer-term view. A sales professional who acts in the best interest of their clients might advise on the best time to sell or suggest making changes to the property before bringing it to market.
Trustworthy and Transparent
References play an important role when choosing a broker, as do personal recommendations. If someone you know and trust puts you in contact with a broker they respect, that could carry weight. You can also ask to see a list of references. Proceed with a bit of caution as you look through them, as they could be family and friends.
In addition to checking references, you might look through the broker’s track record of recent sales. Choose an address that’s similar to your property, and then pick up the phone and call the owner. Throughout my personal career, I’ve shared my entire sales list when asked for references. I tell others they can pick out any sale I’ve carried out and I’d be happy to make an introduction to the owner.
A Partner in the Process
Sometimes the negotiations for a sale can stretch out—it’s not uncommon for this step to last for six months in the commercial real estate market. The conversations during this timeframe can get tense, so you’ll want to make sure you have someone on your side who you can be with in the foxhole. Ask yourself, “Is the broker an active listener? Do they have their own agenda, or are they really just trying to understand my needs?”
Also observe the broker’s style. If they operate in a high-pressure way with you, urging you to sign on, they may work the same way with potential buyers, who might not be interested in that type of approach. Make sure the broker you choose has a communication style that is consistent with the way you like to operate.
An Experienced Player
You’ll want to draw on the expertise of a broker who truly understands the market and knows the right approach to take. There can be value in choosing a sales professional who has ample experience in the space and has been through ups and downs. Brokers with many years in the business will typically have a method they use to withstand market fluctuations. Look for someone who can read conditions and make wise decisions about going forward.
Selecting a broker to help you sell your home or commercial asset could be an involved process, and well worth your time in the end. By choosing a sales professional who is client-centric, you’ll have the assurance that they’ll help you find terms that suit your priorities and help you negotiate the right price. In the upcoming articles, we’ll take a closer look at what brokers do—and present ways to spot the sales professionals who can best present a property, expose it in the market, and ultimately, be ready and able to work with clients for the long-term.
Some of those deleted emails were sought by subpoenas in at least a dozen regulatory investigations, but could no longer be retrieved, the SEC order against J.P. Morgan Securities LLC noted.
Others “could relate to potential future investigations, legal matters and regulatory inquiries,” the order said.
The emails, which were accidentally deleted in 2019, were from and to about 8,700 email boxes, which included those of up to 7,500 employees who had regular contact with Chase customers.
Many of the emails were “business records required to be retained pursuant” to federal securities law, the order said.
J.P. Morgan Securities consented to the SEC sanction, which also censured the firm.
The firm had submitted a settlement offer in anticipation of administrative proceedings related to the deletions, and the SEC accepted that offer.
The SEC also ordered the firm to “cease and desist from committing any future violations” of the securities law requiring broker-dealers to retain for at least three years the originals of all communications.
This is the third time the investment advisor has agreed to punishment for failing to preserve electronic records.
The firm in late 2021 agreed to pay $125 million in penalties for failing to preserve text messages and other electronic communications sent between January 2018 and November 2020.
In 2005, the firm paid $700,000 in penalties for not preserving electronic records from mid-1999 to mid-2002.
JPMorgan spokeswoman Patricia Wexler declined to comment on the latest sanction.
In its order Thursday, the SEC noted JPMorgan in 2016 began a project “to delete from its system older communications and documents no longer required to be retained.”
Those messages included old emails, instant messages and communications sent over the Bloomberg terminal service.
But there were “glitches” in the project, “with the identified documents not, in fact, being expunged,” the order said.
While troubleshooting that issue in June 2019, employees of the firm “executed deletion tasks on electronic communications from the first quarter of 2018,” the order said.
Those employees “erroneously” believed — based on claims by the firm’s archiving vendor — that all of those documents were coded in a way to prevent the permanent deletion of those records that were required by law to be kept for three years, the order said.
“In fact, however, the vendor did not apply the default retention settings in a particular email domain,” the order said.
“And those communications, including many required to be maintained pursuant to the broker-dealer recordkeeping rules, were permanently deleted.”
Those deletions were discovered in October 2019, when a JPMorgan team responsible for producing records related to legal cases detected that emails were missing from early 2018, the order said.
JPMorgan reported the deletions to the SEC in January 2020.
The order noted that, “In at least twelve civil securities-related regulatory investigations, eight of which were conducted by the [SEC] Commission staff, JPMorgan received subpoenas and document requests for communications which could not be retrieved or produced because they had been deleted permanently.”
And, the order added, “JPMorgan notified only one of the eight investigative teams at the Commission that its production in response to the subpoenas had been compromised by the 2019 deletion event.”
The order noted that because the deleted communications “are unrecoverable, it is unknown – and unknowable – how the lost records may have affected the regulatory investigations.”
In fact, a member of JPMorgan’s compliance department acknowledged in an internal email after the deletions came to light that “lost documents could relate to potential future investigations, legal matters and regulatory inquiries,” the order said.
Fidelity, one of the world’s largest financial services providers, has officially started opening retail bitcoin trading accounts.
The development comes after their announcement of a wait list previously this month. According to a report by The Block, certain users, presumably those on the wait list, received an email detailing the release, which stated that “The wait is over.”
Fidelity has been active in the bitcoin industry for some time — according to the company website, it began mining bitcoin in 2014. In addition, it launched a spot bitcoin ETF in Canada in December of 2021.
The financial services giant’s interest in bitcoin has not come without criticism, having been the subject of U.S. senators’ scrutiny for its offering of a 401k plan that allows users to allocate to bitcoin.
The same criticism has resurfaced again recently, from the same group of senators, who stated in their latest letter, “Fidelity Investments has opted to expand beyond traditional finance and delve into the highly unstable and increasingly risky digital asset market.”
Despite these warnings, Fidelity appears to be diving headfirst into bitcoin, as interest in bitcoin amongst the traditional finance community continues to grow. It should be noted, the move comes at a particularly interesting time, given recent developments surrounding the collapse of FTX and the heightened attention being paid to volatility in the industry.
With industry perception perched so precariously, the actions of behemoths like Fidelity will almost certainly have ramifications for the future of bitcoin regulation.
The Internet is flooded with stories of people using some type of so-called “passive income” scheme to get rich quick, whether they’re cashing in on easy YouTube ad dollars or investing in the latest meme stock. It’s hard not to get suckered into the promise of earning the big bucks without working a traditional day job.
Many times, these strategies focus on real estate. But most real estate investors will tell you that you can’t make money just putting in minimal effort as the Internet would have you believe. Just ask Tiffanie Vendryes.
Courtesy of Tiffanie Vendryes
Lured by the idea that she could generate income from buying up rental properties, in 2015, Vendryes, now 37, bought three units in Florida that housed up to seven tenants.
But Vendryes quickly learned the hard way that passive income isn’t all it’s cracked up to be sometimes. “I was blinded by how much income [I could earn], and I didn’t realize all of that would go into maintaining the property,” she says candidly.
Vendryes says she chose properties that were older, needed work, and were in low-income areas. Instead of sitting back and raking in the profits, she was overwhelmed dealing with late rent payments, evictions, and expensive repairs, including a leaky roof and replacing the hot water heater and air conditioning units. “I failed, and I lost money,” she admits.
But Vendryes says the experience, while harrowing, taught her important lessons that helped her build up her current net worth of approximately $565,000. Here’s how she bounced back.
Playing the real estate game in Florida
After graduating from Stevens Institute of Technology in 2006, Vendryes had about $25,000 in student loan debt, largely thanks to grants and scholarships. She landed a high-paying job in tech sales—earning between $70,000 and $130,000 over three years—and lived frugally, at times having up to three roommates. Slowly Vendryes was able to start building her wealth, and by the time she turned 25, she says she saved up about $100,000.
But then the 2008 financial crisis hit, and Vendryes was laid off, prompting her to move south and shake up her career. “I moved to Florida and got into education,” she says, adding the shift from tech sales to teaching meant taking a major pay cut from $100,000 to about $40,000.
Yet with her savings, Vendryes was able to buy a house in 2010 in Palm Beach county. Five years later, the value increased by more than 60%—jumping from $118,000 when Vendryes bought it to $190,000 when she sold it.
With part of the proceeds from her home sale, Vendryes got into the real estate game in a big way, buying three investment properties over the course of 2015 and into early 2016. But the luck didn’t hold.
The fixer-uppers were within her budget, but they came with a host of maintenance issues and quickly became money pits. Not to mention the people problems: Vendryes says she had tenants fighting with each other, calling the cops on each other, and calling her about their quarrels—and being a landlord became a massive time suck and an emotional drain.
“I decided that this probably wasn’t the best investment strategy for me,” Vendryes says. Within six months, she unloaded the properties, selling at least one at a loss.
Creating diverse income streams
Although Vendryes struggled to get it right in rental real estate, she never quit her day job in teaching. And having a full-time job helped her stay afloat when this other income stream wasn’t functioning.
That’s one of the biggest takeaways she says: have multiple gigs. Vendryes, now the mother of a two-year-old, got back into the rental property game in 2019, and she opened up her own real estate brokerage. But she also keeps her teaching job.
It turns out that buying the rental properties sparked Vendryes’ interest in being more than an owner. “When I was buying those three properties, I would sometimes feel bad asking my realtor too much or going to see too many things,” Vendryes says, adding she got her own license in 2016. That way, she could go look at all the properties she wanted to before making an offer—guilt free. Not only that, it had the added benefit of saving her money as both a buyer and a seller.
After taking some time to regroup, Vendryes bought a 2-bedroom condo in 2018 situated in a nicer neighborhood with the idea that she’d eventually rent it out. A year later, it started generating income. This time, with stable tenants and minimal drama, she earns about $6,000 in annual rental income. Plus, Vendryes doesn’t touch the majority of the income. Instead, it goes into an account so if there’s some maintenance problem with the condo, the cost isn’t coming out of her everyday budget. She currently has one rental property and a townhouse that she owns and lives in.
Last year, Vendryes also opened her own real estate brokerage, Grace Realty Group. She has one agent working for her. So far this year, they’ve sold $2 million in real estate, which Vendryes says translates into roughly $38,000 in commissions for her.
And thanks to tenure and picking up extra responsibilities, Vendryes has boosted her teaching salary to approximately $79,000 a year as she works as an interim assistant principal and remote high school math teacher.
The early setbacks aside, Vendryes says she really likes real estate and enjoys looking at homes and showing properties. “It’s important to do something that you like so that it doesn’t feel like you’re doing a lot of work,” she says, adding that while her teaching job is flexible, she still relies on her mom for babysitting in order to juggle the real estate business, her teaching, and the responsibilities of a landlord.
All said, Vendryes calculates she’s on track to make about $123,000 this year. With her current home value (she bought a townhouse in 2021 that’s valued at over $400,000), retirement savings, and investments, she’s looking at a net worth north of $500,000. And she doesn’t have any outstanding debt.
But she’s the first to admit it’s been a lot of hard work. “My story has not been one of easy success. I got laid off from my first job. I went into education at less than 50% of what I was making before. I made poor choices in real estate,” she says, noting that through it all, she’s been able to accumulate wealth. “It’s through discipline and it’s hard work and it’s through learning from my mistakes.”
Perhaps the biggest lesson? It takes hustle. “It’s not really passive—everything takes work,” Vendryes says.
Market Advisory Group founding partner Danny Goolsby discusses important details prior to retiring
Press Release –
updated: Jan 30, 2018
WICHITA, Kan., January 30, 2018 (Newswire.com)
– If decisions about where and what to invest in are keeping you up at night, it’s no wonder: retiring today has gotten more complicated. Our great-grandparents retired with a pension and an amount from Social Security with the confidence that their income needs would be guaranteed. Any earnings their investments made were like icing on the cake.
Today, pensions have gone the way of the dinosaur, Social Security benefits are under threat and investors are left to figure out things on their own using the money in their retirement and brokerage accounts. Through no fault of their own, we’re seeing people make dire mistakes when it comes to the allocation of these resources. Given today’s longer life expectancies and the volatility of a global market, it’s even more important than ever before that you do the right thing at the right time with the money you’re relying on for retirement.
Here are the biggest mistakes we see investors making, along with a suggestion about what you can do instead to make sure that you don’t run out of money before you run out of life.
MISTAKE #1: Not Understanding What You Own
There are many different ways you can be charged commissions and fees inside of an investment but typically speaking, you pay those fees whether the account earns money or not. Too many investors keep their account statements sealed in a drawer because they’re either too afraid to look or they don’t understand what they’re looking at. Here’s the thing, though: just because you’re not looking at the bad news doesn’t mean it goes away.
High fees create an unnecessary drag on your returns and may prevent you from reaching your retirement goals. As fiduciaries, we’ve even seen some situations where, after adding up all the fees paid out over a period of years, there were more fees charged than what the consumer earned. Don’t keep your head in the sand. Get a second opinion. Ask a fiduciary professional to walk you through the fees you’re paying on the investments you own and find out if you have better options.
MISTAKE #2: Not Knowing How Much Risk You’re Exposed To
It’s been said that convincing investors to stay in the market is the horsepower that drives the market. The more investors, the more the market grows. It’s easy to make money in the market when the markets are going up, the question is, how much of that money will you get to keep?
There are several adages — such as buy and hold — that don’t necessarily apply to the investor who is at or near the time of retirement. If you are five or fewer years away from your full retirement age, for example, then you might be in what we call the retirement red zone. This is the time in your life when losing money matters the most; make a fumble now, and it could negatively affect the earning power of your portfolio over the long term. Instead of focusing on risk and growth, protect what you have before it’s gone.
MISTAKE #3: Not Having a Plan
A lot of people hear the term “protection” and instantly jump to the conclusion that they won’t earn any returns. This couldn’t be further from the truth. Having a plan in place is the process of coordinating the different aspects of a portfolio — including taxes, Social Security and Medicare decisions — along with your market investments to seek both growth and protection. This is how you can get a cohesive strategy with minimal fees and less risk for maximum returns.
If you’ve worked multiple decades to get your nest egg to where it’s at now, then you’ll want to take steps to ensure that what you need for retirement is protected. Protect first, grow second and build a plan around your goals. Do that and you’ll be able to achieve what we want for our all clients: peace of mind.
Are you paying too much in fees? Worried about your exposure to risk? Ready to get your retirement ducks in a row? Schedule your complimentary consultation by filling out this simple form and one of our advisors will be happy to get back to you. We take this step seriously, as it is crucial that you understand your current situation based on facts, not persuasion or sales pressure. We look forward to helping you avoid these mistakes so that you can enjoy the retirement you deserve.
Investment advisory services offered through Foundations Investment Advisors LLC, an SEC-registered investment adviser.
