Jennifer Benson: If anyone hears anything from this podcast, it's that you do not have to be wealthy to have a plan. You do not have to be wealthy to get advice or to work with someone. So, start today.
Amelis Long: Welcome back to The Vault. I'm your host, Amelis Long. When you hear the words "financial plan," what comes to mind? A complicated spreadsheet, a meeting with a financial advisor, or maybe something you know you should have but haven't gotten around to creating yet?
October is Financial Planning Month, so today we're taking a practical look at what financial planning really means, where the average person should start, and how having a plan can help you make smarter decisions, even when life or the markets don't go to plan. I'm joined today by Jennifer Benson, Vice President of Financial Advisory Services. Jen, welcome to the podcast. Thanks for being here.
Jennifer Benson: So glad to be here, Amelis. Great to see you again.
Amelis Long: Good to see you too. So, before we get into the nitty-gritty, tell us — what is Financial Advisory Services? What does that really mean?
Jennifer Benson: That really means I get the privilege to lead all of our financial advisors across the bank. Those advisors are typically going to be in our branches. Today, we have 47 advisors across our eight-state network. I get the privilege of leading them and having them try to help as many people as possible.
Amelis Long: So, our customers are coming in and visiting with them to create these financial plans. What's a financial plan at the most basic?
Jennifer Benson: Yes, at the most basic, again we want to help people when we understand their entire picture, and really, a financial plan is the best way to accomplish that. It can be anything as simple as a very basic, maybe a young professional starting out, just really getting that foundation set in place — are they taking advantage of their company's match 401(k), cetera — to all the way to something really complex where maybe you need multiple experts at the table. It could be a business that's looking to transition and sell that business to the next generation or to a buyer, and anything in between. So, we have this as our foundation. It's how we work with our clients. Again, we just don't want to give random advice. We want that advice to be very well thought out and very centered around them as their individual situation. Everybody's different. Your goals are different than my goals. We really want to build that plan around the individual and what they're striving to achieve.
Amelis Long: Talk to us why that's so important.
Jennifer Benson: Doing very smart things early on can make such a difference in their success and just the confidence that they are going to have, knowing that they've got a plan. They know where they're going to. They know why they're making the decisions they're making. And it's really in order to give them that peace of mind and that confidence. At the end of the day, that's what we want people to walk away from — it's that feeling that they have that they know their family is going to be taken care of. They know they're going to have a point in time where they can retire when they want to and even thinking about their legacy and what they want their, you know, loved ones to remember about them.
Amelis Long: Yeah, and I think the other thing that I hear you saying is anyone can have one, right? It's not about wealth necessarily, it's more about goals.
Jennifer Benson: Absolutely. If anyone hears anything from this podcast, it's that you do not have to be wealthy to have a plan. You do not have to be wealthy to get advice or to work with someone. You shouldn't be scared. You shouldn't be nervous. You shouldn't feel intimidated to reach out and to, you know, start that process and get some help. Because just like, you know, just like going to the doctor — you want to be able to go to the experts that know what's going on in your health — you also want to think about your financial health and working with a financial advisor, working on a plan. It's also not about the products. It's not about, you know, the latest and greatest tool. That's all important, and we can talk all day about that, but at the end of the day, the plan is what encapsulates it all. It's what drives it. It's what makes those decisions make sense.
It's also very helpful when things maybe are not going your way and you've got all the stress of dealing with those really hard life situations, and to have a plan in place beforehand — to know how you're going to deal with this — a lot of that stress is just kind of taken off the table when it comes to the finances. There's a lot of stress dealing with those other things, and so to be able to know: I'm in a good spot. I'm going to be okay. I'm going to be able to pay my bills. I'm going to be able to take care of the people that I care about. That's what, you know, the plan gives you — that peace of mind and that confidence.
Amelis Long: Even if you're not sure what those goals are, or they change over time, that's the beauty of the plan — it can be updated. When stressful things happen, you have something to anchor yourself in.
Jennifer Benson: That's right.
Amelis Long: One of the misconceptions that maybe I've had, and I'm sure some of our viewers have had, is they hear "financial planning" and we think "budget" — which is day-to-day living. Right? But when I hear you talking about these long-term goals, tell us about the, I guess the benefit or importance of really differentiating between a budget and a financial plan.
Jennifer Benson: Yes, that's a great question. I think they go together, but they are a little different, right? You have to have a good handle on what's going in and what's coming out, right, in order to accomplish those long-term goals. You have to know that you're in a good spot — you're paying all your bills and hopefully you have some leftover so you can think about your future and think about savings and investing. The beauty of that is really that the budget is the base, and then you're really building that financial plan on top of that. So, it's going to walk you through — you have some great tools and some great software that you're going to be able to go in an pick, you know, I want to do this. I want to go on this family trip. I want to be able to retire at this level. I want to maybe buy a house in another state, et cetera. The list goes on.
It really makes you stop and take a minute from the day-to-day of just paying the bills and going to work and living your life, to thinking about the future and dreaming about the future. And that to me is exciting, right? Taking that time. It should be a positive thing. It should be something that you look forward to. I mean I look at my financial plan once a year because I want to make sure that the decisions I'm making today is going to affect where I want to be in 20, 30, 40 years. And so, they're both very important. I think doing one without the other doesn't work, but I'm obviously a strong proponent of having a plan in place.
Amelis Long: So, Jen, if someone's listening to the podcast today and they're inspired to get going on a financial plan, where do they start?
Jennifer Benson: I think the important part is just taking that step to reach out. I feel working with an individual, working with somebody you can trust and building that relationship is key — it's simply having a conversation. This isn't supposed to be scary. This is supposed to be exciting. And, you don't have to have all the answers. You're not expected to. Don't be afraid that if someone's going to ask you something very technical or very specific — that's not at all what the experience should be. It's really just taking that first step. I think it's helpful if you kind of have an idea of what some of your spending — you mentioned budget before — you know, have an idea, have some of those numbers, but you do not need to prepare, you know, a book of information. Just really start having a conversation, then we will help gather that information and some of those detailed facts and figures as we walk you through the process.
Amelis Long: Okay. What about the person that's maybe a little anxious or nervous, thinking, "Should I have started this five, ten, or more years ago?" What would you say to them?
Jennifer Benson: Yeah. I think sometimes we put off things that we don't fully understand or maybe don't want to take the time to do. And the quote that keeps coming back in my brain is: the best day to plant a tree was 20 years ago, the second best day is today. So, start today. That's the one takeaway that I would love people to do. We've kind of seen it all, so nothing is going to scare us. Um and so, yeah, I would say, at the end of the day, just reach out and start having a conversation.
Amelis Long: And it really isn't always about retirement or legacy. It can be stuff that maybe is even short-term or medium-term planning, so.
Jennifer Benson: Absolutely. You know, and I think that changes and evolves as you grow in your life, right? You're going to be, you know, thinking about maybe buying your first home, maybe starting to think about college for the kids if they're young, because we all know that's not an easy bill to pay these days. And so that's the beauty of the plan because it will incorporate all of those situations. It can be extremely helpful as you just think about and prioritize those dollars, because we all know limited dollars and it's harder and harder to stretch those dollars.
Amelis Long: Yeah, I'm so glad you said that, because I think that's another piece — it's like, I only have so much to put towards my plan, so how do I make decisions on is it the car, or college, or retirement?
Jennifer Benson: Or paying off debt, et cetera?
Amelis Long: Yeah.
Jennifer Benson: I know, I think that's very valid. Every situation is a little different, so it's hard to just say every single time, do this, do that, do this. But that's why you need an individualized plan. Because we know dollars are limited. We know that it's not easy to do all of these things, but prioritizing and understanding — okay, I'm going to focus really hard here for the next couple of years, I'm going to be disciplined around that, and then I'm going to start thinking about the long term — and that's okay. And that just builds and builds and builds on the foundation of the plan.
Amelis Long: How do you go about working with your clients through those changes and life pivots or, like the market changes?
Jennifer Benson: Absolutely I does. And that's is normal, right? We know it's probably not just going to be continually up. There are going to be those downs. Having that plan to anchor to — to know, yep, we predicted this, or we modeled this, or we looked at this — we know that the plan can tolerate some of these maybe more negative things happening, and we're still okay. We're still on track. Or let's look at this, let's pull it off the shelf. You know, a financial plan is not something you do one time and just leave alone. It's something that is a breathing, living document that's something you need to be updating pretty frequently. And so, that's the beauty of it too — you know, maybe you got a raise at work, maybe it's something positive too. You know, thinking about that, how can you maybe extra-charge those goals? And maybe you can retire a year or two earlier if you maybe put some of that extra income toward those goals. And so, the point being is, you're not just going out in the dark without any kind of compass. Really that plan grounds you to that. It's going to shift, it's going to move — that's life — but you have a place to have a really strong foundation, and you have someone that's helping you along the way, giving you that advice and guidance.
Amelis Long: Yeah. Tell us about those great moments where financial planning is hopefully leading to really great outcomes. Tell us some good stories.
Jennifer Benson: There are so many, um and that's the best part of the job at the end of the day, right. Being able to look across the desk and seeing that person's reaction when you meet with them and they're very unsure about "have I done enough? Am I going to be okay to retire?" Maybe they have a spouse or someone in their family they need to take care of, and they don't know if they can do that because they're not maybe at retirement age. Being able to say, "We've run the numbers, we've done all these different scenarios and what-ifs, and you're going to be okay. You can prioritize your family now. You've worked so hard all these years. You're in a really good spot, and you can take the time that is well deserved." That look on their face is – gives me goosebumps every time. Like it's truly why we do what we do.
Amelis Long: Yeah. Such a powerful moment. And I know there are so many of those many moments in between — because it's not just those big "you can retire, you can go take care of your family" moments. These goals can be that dream vacation?
Jennifer Benson: That's right – a trip to Europe!
Amelis Long: Yeah!
Jennifer Bension: Yes, absolutely.
Amelis Long: So many great moments in between all those conversations.
Jennifer Benson: Yep, I'm in the height of my kids are all college age or going to be college age.
Amelis Long: Ah, I can empathize.
Jennifer Benson: Lot's of conversation around college planning and being able to, you know, meet their dreams and their goals with what we've done financially. I mean, that's a huge weight off my shoulders. It's been one thing that I don't have to stress about, and I know that we've saved appropriately and we're in a good spot that we can help our kids as they kind of start out their lives.
Amelis Long: What happens when they're working with you and things are kind of beyond that retirement, college, car planning?
Jennifer Benson: And so the beauty of working with someone at the bank is that we do offer that maybe next level of expertise that's needed when life is more complex. Maybe you do need a trust and an estate plan put in place — that's something we can help with. Maybe again, it's a business owner that's concerned about what's that next five to ten years look like for their business and their retirement too because that's a lot of people's assets are wrapped up in their business. And so, what does that look like for transition? You know, a lot of people care deeply about their communities and philanthropic causes, and we can help with charitable planning. So, there's, there's multiple layers on top of, you know, again, once we've done the basics and you're in a really good spot, it's fun to then take that to the next level to say, yeah I may have a way that I want to support the community when I'm gone. And that's, again, very powerful and very meaningful. And the beauty is that you have that plan as your foundation and you just continue to build on that.
Amelis Long: Yeah, what I keep hearing over and over again is really that the financial plan is such an empowerment tool — thinking about financial plans as financial health, like you've said so many times, and working with someone to get that right prescription to meet those goals and that long-term vision for your finances.
Jennifer Benson: Yes, it should not be, it should not be a negative. It's a positive. Again, I love to have tools that help me, you know, you try to control maybe some of the unpredictable. And so again, we can't guarantee anything — we never know what life's going to throw at us. But without that plan in place, without, again, I think of it as that foundation, and without that, I know I wouldn't have the confidence that I have, and the peace of mind, or be able to sleep at night. Without that, it could be scary. And with it, it's much more positive and much more of peace of mind.
Amelis Long: Yeah, just really eliminating stress. So, as we wrap up our conversation — if you were to take everything we talked about today and leave our viewers with a really powerful nugget of information, what's the takeaway?
Jennifer Benson: To me, it's take that action. Prioritize your life, your financial health. Don't wait for someone else to do it. Don't wait for outside forces to do it. Take control of your life. And it shouldn't be intimidating. We don't want it to be scary. We want this to be a very beneficial tool that's available to you, um that's fairly easy to do. It's not going to take 20 hours, right? It's very, very manageable. Um, and so just take time. Prioritize yourself and make it happen.
Amelis Long: Well, that is wonderful advice, and something we could all do a little better at is just taking care of ourselves, which includes our financial health and financial self.
Well, Jen, thank you so much for joining the podcast today. It was such a great time talking about financial planning, and I hope our viewers are as excited as you are about helping them reach their financial goals.
If you're ready to take a more comprehensive look at your financial picture, the FNBO Wealth team can help you understand your options and build a plan around you and what matters to you.
Visit fnbo.com/wealth to learn more and to connect with our team.
Thanks again, everyone. We'll see you next time on The Vault.
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