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Explaining The Climb Process

Welcome back to another episode! Today we will be discussing The CLIMB process, what it means, how it benefits you and why we love it. Thanks for tuning in. Questions about today's episode let us know.


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Full Transcript:

00;00;06;21 - 00;00;27;07

Garrett & Paul

Hello and welcome to your investment partners with Paul and Garrett, where we talk about all things financial, focusing on helping you plan, keep and grow for a successful future. If you're new to the podcast, welcome and if you're tuning in again, welcome back and thank you for listening. We're excited to have you with us today. We'll be covering our financial planning process, which we call the climb process.

00;00;27;12 - 00;00;48;05

Garrett & Paul

What is it and how it helps our clients achieve their financial goals? My name is Garrett Smith. We're excited to have you with us today. All right. Today, let's talk about our planning process. We call it the climb process kind of goes along with Ascend. Aspen Partners. We like that idea. Helps keep us organized and gives us a framework to think through each one of these steps.

00;00;48;05 - 00;01;09;28

Garrett & Paul

So they were just kind of walked through each one of these parts of it to dive into it a little deeper in each and each one of them. So CLIMB is an acronym that stands for Characterize, Leverage, Implement, Monitor and Benefit. So step one, any time we work with a new client or current client, it always starts here.

00;01;10;00 - 00;01;35;16

Garrett & Paul

It's kind of a circular effect, a cyclical effect. We go through each of these regularly. The first one being characterizing and clarify a person's goals and situations. Paul What do you how do you kind of kick off the the client process when you're when we're working with someone? Yeah, I think that the thing that's important for us as advisors to know is we have to just there's actually a rule.

00;01;35;16 - 00;01;54;07

Garrett & Paul

It's called know your customer. And the better we know our customers, the, the, you know, the better that we can see their situation clearly. And then we, you know, essentially we just put ourselves in our client's shoes and say, okay, if I'm this person and this is the situation, or what would I do? We've been doing this for a long time.

00;01;54;07 - 00;02;19;10

Garrett & Paul

We have a lot of experience and every situation is just a little bit different and have has unique, you know, things going on. And so that's why we just ask an awful lot of nosy questions about, you know, just really everything, even even people's health and longevity. And how long did your parents live and all those things kind of have a an impact on, you know, kind of putting together the investment plan, so to speak.

00;02;19;10 - 00;02;50;07

Garrett & Paul

So just lots and lots of nosey questions. And through that process, we can, I think, pretty well identify risk tolerance, you know, income needs when the income's going to be needed, attitudes, attitudes towards risk and and reward and loss and those kind of things. And it just that that's just probably the most important part of the process is just getting a really good understanding of what what a client's situation is.

00;02;50;23 - 00;03;14;22

Garrett & Paul

Yeah, I think it's a great way to, you know, you got to understand where somebody is and how they got to where they are. You know, we're all at different places in kind of our financial journey and wanting different outcomes and being able to understand how somebody got to where they are currently. Kind of shed some light on, you know, future expectations and goals they may have.

00;03;15;13 - 00;03;38;11

Garrett & Paul

It's easy to say, I want to take a lot of risk in the market, but if your past behavior has shown that that's difficult for you to do and you know you don't like the volatility, which is fine, then we've got to make other decisions. So I think sometimes a person's history and why we always ask those nosy questions reveals is some of their true preferences versus what they say.

00;03;38;18 - 00;04;08;09

Garrett & Paul

I think we're all that way. You know, we all want to say we're, you know, super risk takers or whatever it may be and want, you know, all the things right now. And I'm but the past behavior, I think, is a real indication is a good indication of what may happen again in the future. And so combining that with understand where a person wants to go to line up with their goals can make the path to get there so much better.

00;04;08;25 - 00;04;42;05

Garrett & Paul

And the only way to get there is a bunch of nosy questions that but I think we're all the same in that we we all want super high returns with no risk is kind of how we how we all land. So of course that's not available. So so I think as we work through the characterization clarification of of what somebody wants and I think kind of a little bit on that aspect of well, as is, we all want to, you know, say we want a lot of money with no risk and or those kind of things, but dialing down about, okay, what's the purpose of the money?

00;04;42;05 - 00;05;17;10

Garrett & Paul

What is it used for? You know, because oftentimes people might not need as much as they think they need. You know, when you when you run it, if the goal is to sell the house and travel the world in an RV, then, you know, that's that's very different and may take a different dollar amount. And so I think getting really specific about what the uses of the money are and and the goals that are driving towards that allow the planning to just get so much clearer and so much more direct that you can, you know, handle a future volatility in the market or personal situation because there's specific goals that you're looking to achieve.

00;05;17;22 - 00;05;41;24

Garrett & Paul

Well, I think along those lines, time horizons just super important for people to really think clearly about because a time horizon, I mean, you think of somebody who's 80 years old and, you know, let's just say they have a lot of money that say they have $1,000,000 in their 80 year old and they, you know, pull 20 or 30,000 a year out of their portfolio.

00;05;41;24 - 00;06;01;10

Garrett & Paul

And they just that's all they need. That's all they want. They don't really have any desire. We look at that money a little bit differently than than maybe you'd normally think when somebody is 80, you think, well, they should just, you know, not take any risk and just have it in cash and bonds and things like that. But we we look at it generationally.

00;06;01;10 - 00;06;24;22

Garrett & Paul

So these 80 year olds have, you know, 60 year olds and 50 year olds and maybe 45 year old kids and and, you know, if if that 80 year old is not going to use that money, then the time horizon all of a sudden expands significantly from just their life expectancy. And we always tell people long term money in the market is great.

00;06;24;25 - 00;06;57;15

Garrett & Paul

Short term money in the market is is terrible because we just don't know what's going to happen over the next, you know, two or three months or even a year. But over a period of three years, five years, ten years, it just seems to work out very, very favorably. Favorably at least historically. So, yeah, I think that's a great point of time horizon, even, you know, even when you start looking past your own life, there's other goals, legacies, you know, endowments that you're wanting to leave behind, that that changes that time horizon.

00;06;57;15 - 00;07;36;21

Garrett & Paul

And then going on to the second step, we call it leverage, because I think of it in Archimedes terms of give me a lever long enough and a fulcrum which to place it. Now move the world. I think there's leverage in the financial sense often gets things thought of as as debt or, or taking out a loan. But in this case, we look at it as as we take somebody situation goals and then we just play all the expertise and and leverage our experience as well as what we know about products that are in the market or things that are out there to be able to put those goals into place because, you know, somebody

00;07;36;21 - 00;07;58;14

Garrett & Paul

can have the same goal for a similar dollar amount on the outcome, but needing different volatility or risk preferences in between. And so finding the right tools and to put into place is kind of how I think of that leverage experience of how can we get to where they want to go on on a role that they'll be able to stick to on on a path that they can stick to?

00;07;59;13 - 00;08;28;04

Garrett & Paul

Yeah, I agree with that. And in addition to that, we have, you know, we just by a lot of research, we you know, we spend a lot of money on research from different sources. We have strategic partnerships that we've developed over the last 2030 years, and they have abundant resources. And so, you know, we just have a lot more available to us, you know, our partners in in our Ogden office, they have a lot of experience.

00;08;28;04 - 00;08;55;02

Garrett & Paul

We have an investment committee. We talk about the markets and things that are working and things that we need to be worried about constant Li And that all kind of folds into that. A part of the client process called leverage is just leveraging ever all the resources that are available to us to to kind of navigate financial markets and, and, and drill that down to people's personal situation for sure.

00;08;55;02 - 00;09;18;06

Garrett & Paul

And I think that goes back to, you know, it's not trying to find one product that fixes it for everybody. There's there's an array of things to use from, you know, publicly invested in the stock market to annuities, to insurance products. You know, there's there's just a laundry list of things to do. And, you know, we're not trying to get everybody to fall in the same bucket.

00;09;18;06 - 00;09;36;29

Garrett & Paul

It's it's what are your goals and and what are the tools and resources that we know are available that work and that we can pair those two together? Yeah, I agree with that. And then I think that's next step. Implementation is the most important one. It's easy to, you know, be pie in the sky and to have all these ideas and different things.

00;09;36;29 - 00;20;29;06

Garrett & Paul

But if you never actually put it into practice, it doesn't benefit your life. I think we've seen that numerous times where, you know, somebody says, Let me think.

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