Financial Planners Explained: Do you Need a Financial Adviser?

Summary

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Episode Overview

Title: Financial Planners Explained: Do you Need a Financial Adviser?
Hosts: Jen Smith & Jill Sirianni
Podcast: Frugal Friends Podcast
Airdate: November 18, 2025

In this episode, Jen and Jill demystify the often confusing world of financial advisors. With their signature humor and candor, they address whether frugal spenders—or anyone at all—truly need a financial planner. They share personal stories, break down jargon, reveal industry red flags, outline who actually benefits from hiring an advisor, explain how to vet one properly, and clarify which credentials matter. The hosts also candidly discuss their own journeys toward becoming Certified Financial Planners (CFPs) and why they're making that leap.

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Main Discussion Points & Insights

1. Personal Experiences with Financial Advisors

• Jen’s skepticism: Jen opens with her negative first experience, equating financial advisors to scams due to high-pressure sales tactics and a lack of transparency.

  “My first experience with a financial advisor was a stereotypical negative one... it felt very salesy and I got the weird vibe from it.” —Jen (02:12)

• DIY approach: Both hosts explain how learning from personal finance media gave them confidence to self-manage, delaying (or bypassing) the need for an advisor.
• Jill’s more recent experience: Jill highlights seeking outside input only after a major financial event (selling a house), and notes the value of trustworthy advisors for big transitions.

2. Who and What Is a Financial Advisor? (05:49-07:36)

• Definition: A “licensed professional” assisting with everything from budgeting to investing, insurance, taxes, college funding, and retirement strategies.
• Confusion in titles: The term “financial advisor” covers a wide range—insurance agents, brokers, managers, and certified financial planners (CFPs).

3. When Should You Consider a Financial Adviser? (07:46-12:23)

• Situations warranting professional advice:
  • Feeling anxious or uncertain despite consuming lots of financial content
  • Receiving a windfall (inheritance, large tax refund, home sale)
  • Needing coordinated guidance across multiple goals (debt, real estate, insurance, taxes, college, retirement)
  • Nearing retirement (within 5–10 years)
  • Higher income/tax complexity or significant investible assets ($100K+)
• Simple finances? You may not need ongoing help—one-time sessions with fee-only planners can suffice ($150–$300/session).

4. Common Pitfalls and Why Advisors Have a Bad Reputation (13:03–17:14)

• High, opaque fees:

  “You could potentially be paying your advisor over $100,000 to manage assets that they're not really doing much with.” —Jen (13:03)

• Multiple fee layers:
  • Assets under Management (AUM, typically ~1%)
  • Fund expense ratios (another ~1%)
  • Front-end and back-end load fees
  • 12b-1 marketing/distribution fees:

    “It is a marketing and distribution fee that advisors are legally able to charge you for the marketing of the fund to other people.” —Jen (16:10)
    (Example: $750/year on a $100K fund with a 0.75% 12b-1 fee)

• Suitability vs. fiduciary standard: Most advisors legally only need to offer “suitable” products, not necessarily the best for you, leading to potential conflicts of interest and pressure to push proprietary or commissioned products.

5. How to Find a Trustworthy Advisor (21:54–32:57)

• Fiduciary duty:

  “A fiduciary is legally required to act in your best interest, not just offer suitable products.” —Jen (22:47)

  • Always ask in writing: “Are you a fiduciary, and will you put it in writing?”
• Credentials matter:
  • CFP (Certified Financial Planner): broad knowledge, required fiduciary duty, ethics code
  • CPA (Certified Public Accountant): tax expertise
  • AFC (Accredited Financial Counselor): behavior/budget/debt
  • CFA (Chartered Financial Analyst): complex investment management
  • Avoid “coaches” without accredited credentials—self-proclaimed coaches may not offer objective, comprehensive advice or be bound to ethical standards.

    "Anybody can slap the word coach onto something. There's no reporting, accountability, or ongoing monitoring." —Jill (27:29)

• Fee structure:
  • Fee-only: Flat/hourly/asset-based paid only by the client; lowest conflict of interest.
  • Fee-based: Mix of commissions and client-paid fees; more potential for conflict.
  • Commission-only: Paid entirely by product sales (insurance, funds, etc.); highest conflict, often a red flag.

    “If they hesitate or can't give a clear answer in plain English, that is a red flag.” —Jen (33:28)

6. Where to Find Reputable Advisors (33:28–35:24)

• Resources:
  • National Association of Personal Financial Advisors (napfa.org)
  • XY Planning Network (xyplanningnetwork.com): Focus on Gen X/Y, flat-fee/subscription models, fiduciaries only.
• Treat it like therapy: Shop around, interview multiple advisors; prioritize comfort and clarity.

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Notable Quotes & Memorable Moments

• On anxiety and the unknown:

  “You don't know what you don't know ... If you are just anxious about what you don't know and you're consuming a lot of personal finance content, then this could be a good move for you.” —Jen (08:24)

• On compounded advisor fees:

  “Traditional advisors do typically charge a 1% of assets under management ... Once you get up to $500,000, you will pay $5,000 a year for your financial advisor, whether that advisor spends 10 hours or 100 hours on your account.” —Jen (13:03)

• On the 12b-1 fee:

  “It is a marketing and distribution fee ... they're going to market that on your dime.” —Jen (16:10)

• On finding a fiduciary:

  “Are you a fiduciary, and will you put it in writing? Because that's going to get them.” —Jen (23:30)

• On avoiding unqualified “coaches”:

  “Anybody can slap the word coach onto something. There's no reporting, accountability, or ongoing monitoring.” —Jill (27:29)

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Timestamps for Important Segments

| Timestamp | Segment/Topic | |-----------|------------------------------------------------| | 01:37 | Jen & Jill’s first experiences with advisors | | 05:49 | What is a financial advisor? Definitions | | 07:46 | When (and if) you need a financial advisor | | 10:00 | Retiring? When you really need a planner | | 13:03 | Why advisors get a bad rep (fees, sales tactics)| | 16:10 | The “12b-1” marketing fee—why it’s egregious | | 21:54 | Spotting a fiduciary—what to ask | | 24:50 | Credentials: What to look for, and why “coaches” aren’t enough | | 29:46 | What credentials mean (CFP, CPA, AFC, CFA, EA) | | 31:25 | The importance of fee structure | | 33:28 | Where to find good advisors | | 35:03 | “Finding your vibe”—interviewing for a good fit | | 41:20 | Lightning round: Jen & Jill becoming CFPs |

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Lightning Round: The Hosts’ CFP Journey (41:20–46:48)

• Both hosts reveal they’re actively pursuing Certified Financial Planner credentials.
• Motivations include wanting to deliver higher-quality, ethical advice, increased skepticism of “influencer” culture, and the need for ongoing, regulation-backed guidance in the changing financial landscape.

  “It’s going to become more and more important for you to get your financial education and information from credentialed individuals.” —Jen (42:04)

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Actionable Takeaways

• Only seek long-term or full-service advising if your finances are complex, you’ve had a major life event, or you’re nearing retirement.
• Prefer a fee-only fiduciary with verifiable credentials (CFP, CPA, etc.). Always get everything in writing.
• Use reputable databases (NAPFA, XY Planning Network) to find planners.
• If you only need basic, objective advice, a single session with a fee-only planner can be affordable and comprehensive.

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Tone & Style

• Friendly, candid, and relatable—Jen and Jill share personal stories and banter, making complex finance approachable.
• Direct language about industry pitfalls; not afraid to call out “shady” practices or hype.
• Value-driven; “frugality” doesn’t mean skipping professional help, but maximizing its return.
• Emphasis on empowerment and self-education, but with realism about when expert input makes sense.

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In Summary

This episode equips listeners with a clear-eyed understanding of the financial planning industry, its potential conflicts, and the rare but true value a good advisor offers. Jen and Jill break down “advisor” jargon, illustrate industry traps, and give actionable guidelines for finding truly beneficial financial help—while sharing their own evolution toward credentialed financial planners. If you’re overwhelmed, on the fence, or just unsure what’s best for your own frugal path, this episode clarifies both the when and the how of seeking professional financial guidance.

Transcript

[Jen]

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[Jill]

And live a richer life. Here are your hosts, Jen and Jill.

[Jen]

For a very long time, I thought financial advisors were a scam. Why would you pay someone for something you could do yourself? But after 10 years of studying finance, we have realized that the reality is somewhere in the middle.

[Jill]

If you've ever wondered whether hiring a financial advisor is worth it or if it's a trap, this episode is for you. We are going to be breaking down exactly what financial planners do, how to know if you need one, and how to find someone who actually works for you, even on a frugal budget.

[Jen]

Welcome frugal friends. My name is Jen. My name's Jill, and my first experience with a financial advisor was a stereotypical negative one. We had just finished paying off $78,000 of debt, and we were told, you can't start investing until you pay off all of your debt. And so we just assumed assumed that now that we're ready to start investing, we need to hire somebody to do it for us. And we went into that meeting and the guy had four options. For us, it was a free meeting. He had a guy with him and it just felt very salesy and I got the weird vibe from it. And so I went online, as millennials do, and I looked for Podcasts, I had only been. This was 2017, 2016, and I did not. I mean, I had only been studying finance for a year, so I didn't know that.

[Jill]

What prompted you to go to him?

[Jen]

Well, just because we were done paying off our debt and we were ready for the next thing. So that right there is how I got into personal finance. Podcasts, personal finance blogs, and personal finance media in general. It was from that, so it was a blessing. But that is where I learned that this guy was indeed selling me something. That he had some licenses, but his licenses did not require to work in my best interest. And that there were so many more options that were so much more affordable. And so that I took from that experience that financial advisors are a scam. I can do this myself. I spent years, like stacking Benjamins. Afford anything, choose fi. Oh my gosh, bigger pockets. Like, I was in podcasts, like every day, and I just learned everything I could about investing. And I was like, why would you pay someone to do something you could do yourself? And that's what I would say. And over the last 10 years of that, I guess it's been eight years since. Since that experience, I have learned a lot of instances where a financial advisor would be useful, but not that financial advisor, quote unquote, that I met with the first time I ever thought about investing.

[Jill]

Yeah, I think because you've always been a few steps ahead of me in your understanding of finances, me knowing I don't actually have to go to somebody, I could learn how to do this on my own. And it's actually not that complicated. It doesn't have to be that complicated. Has caused me to never have sought out a financial advisor until recently. I mean, a lot of you know that I just recently sold my house. And so there was this influx of cash that I needed to decide, okay, what is the best route to take with this and just to be affirmed by somebody else. Thankfully, I've got a couple of friends who are financial advisors and do work in my best interest because they're friends of mine. But. But for that reason, I also know that there are really quality financial advisors out there. And realizing there are reasons that we might seek out a financial advisor, even as frugal people. So I'm excited to kind of lay the framework for when might you want to. And when can you do it on your own.

[Jen]

Yeah. And so that's hopefully what we are going to help you with today. So first, let's set the groundwork for. Because there are a lot of different people that fall under one term of financial advisor. So for us, we are defining a financial advisor as a licensed professional who helps people manage and make decisions about their money. They help with basics like saving debt, payoff, budgeting, but where they really shine is guiding decisions about investing, insurance, taxes, college funding, and retirement savings, especially retirement withdrawals. So, and so, like I said, this term can of a lot of people can fall under this term. And that was the guy that I saw first, he was a financial advisor. He had his, you know, different tests to be able to be considered a financial advisor to sell securities in the state of Florida.

[Jill]

And I think that's what can be so confusing is so many people can use this financial advisor designation, you know, anything from managers to insurance agents to certified financial planners. And so it's one of the reasons why we need to have the correct questions to ask. And actually, we just sent out in the friend letter today six questions to be asking of a financial advisor to make sure you're getting somebody who is going to work in your best interest and is best suited for the needs that you currently have. So if you're not subscribed to that, certainly check the description to get the. It's a free newsletter and if you're.

[Jen]

Listening, it's Frugal Friends podcast dot com. It's right there. Sign up. Because we send, you know, extra stuff like this all the time in our twice weekly newsletter.

[Jill]

So here's some of the circumstances in which we think you, you should consider a financial advisor. Let's say you've been listening to the Frugal Friends podcast for a while or maybe even other podcasts, but you're still feeling uncertain about your money. You're still having trouble connecting the dots between, okay, here's the money I make and how exactly do I budget and am I certain that I'm invested in the things that I should be investing in? It could be worth seeking out somebod just to do a holistic view of your finances to either affirm, yeah, you're on the right track or to say, here's some shifts that you could make based on the goals that you've described and what you're currently doing.

[Jen]

Yeah, ultimately you don't know what you don't know. And I think that is again, where financial advisors kind of shine. Because when I was a couple years into studying personal finance, there were a ton of things I didn't know, but I didn't know that. And there's still like, things that I don't know, but I don't know what I don't know. And so that is a big reason like whether you meet these qualifications or not. If you are just anxious about what you don't know and you're consuming a lot of personal finance content, then this could be a good move for you regardless. But things, specific things that could be good is like you came into some money like you sold your house or you won the lottery or you got insurance settlement, an inheritance. An inheritance.

[Jill]

Some windfall of some sort.

[Jen]

Some windfall of. Yeah. Some taxes back that is significant like more than you have ever gotten before. Or when you need like a coordinated long term plan for reaching multiple financial goals. So debt payoff, real estate, insurance, tax, college funding, retirement. You want to make sure that all those goals are cohesive. A financial planner or financial advisor can be really good for that. You just want to make sure that you're going to someone who can give you a holistic plan isn't just just for investments or just for insurance or taxes or whatever.

[Jill]

We also recommend seeking out a financial planner if you are close to retirement and I would say somewhere between five to 10 years so that you can maximize, optimize your income sources, understand how you're going to approach withdrawals from the investments that you have. Make sure that there's not any changes that need to be made to your current situation. So there are circumstances where we are going to say unless you feel really confident about what you're doing and how you're doing it, seek someone out. And it doesn't have to mean this long term relationship. It can just mean you are consulting them and you're paying them a fee for it.

[Jen]

Yeah, yeah. There's a lot of advisors where you can pay for a holistic plan or alternatively you can pay to ask them about one part of your finances. But ultimately if your finances are very simple, you've got steady job, manageable debt, simple savings goals, you may not need a full service advisor yet. You can hire fee only financial planner for one time hourly questions which is much less expensive. You can get that for you know, 150 to $300 for a session. So yeah.

[Jill]

That'S.

[Jen]

Yeah. Or if you're, I would say also if you're a higher income earner then definitely because taxes are going to be really important to you and you're going to want more than just an accountant. You're going to want somebody who knows about all the areas of finance to again make sure that's cohesive. Or if you have invest investable assets, at least of $100,000 but I would say closer to like 250, 300. That's when you, you should really consider like hiring someone to look at everything to make sure you're on the right track. But if you're in invested assets are less than 100,000. Everything's very simple. You probably don't need and I'm sure there are people in the comments that will come at me and disagree but I. It's. It's not cheap to find a good financial advisor. It they're worth their weight in gold but you have to weigh like the perfect scenario versus the realistic scenario and.

[Jill]

Your own ability and acumen to understand these concepts. If it's just not clicking. Finding a good financial advisor really can help to save you time and stress, allow you to focus on the things that are more important to you. Prevent some of the costs costly mistakes that really can happen. Like me forgetting to actually invest the money that was sitting in my Roth ira. They could potentially help you to improve your returns, just give you peace of mind. But here's the thing. They can get a bad rap. There is a reason that sometimes we have this financial advisor. I don't know about you.

[Jen]

Yeah there so many of them are essentially glorified salespeople and there are a few reasons. There are a lot of reasons they get a bad rap but we'll just cover the two main ones. So the first one is fees and this is the reason that that initial sales guy tipped me off because he was he. They legally have to disclose all the fees to you. Right. And there were quite a bit. So many people have no idea how much they are paying to use their financial advice. They're free financial advisor who they pay like assets under management or like 1% of every contribution they make to their, you know, IRA or 401K or taxable brokerage goes to their financial advisor and they think they're just paying them, you know, to invest for them. One percent is not a lot if you're doing a hundred dollars right. But once you get to that like hundred thousand dollar mark, those dollars add up, they accumulate and they take away from the compoundable assets that you have overall. So doing the math, you could potentially be paying your advisor over $100,000 to manage assets that they're not really doing much with. So traditional advisors do typically charge 1% of assets under management and you will see that as a u M a lot of places and that can quietly add up. So once you get up to $500,000, you will pay $5,000 a year for your financial advisor and whether that advisor spends 10 hours or 100 hours on your account. And so they earn other commissions from selling things. So the guy that I saw at first, he only had four options, right? Because he was bound to only sell the funds from the company he worked for, whether they were going to be expensive to me or not. And so those investing in funds has another fee. They all have fees. So that was going to be another 1% off the top. And then there was a front end load fee for the effort it takes to make the automatic transaction. Right. So you've got front end load and sometimes you've got back end load. And it's not the back end load you want. Right.

[Jill]

To have it on the front end and the back end and not a good way. It's not a blessing.

[Jen]

We don't need that. It's not. These loads are not blessings. Oh, wow.

[Jill]

We need to move on. Yeah.

[Jen]

But okay, so there's also surrender charges and my favorite fee. Can you have the favorite fee?

[Jill]

This one is actually like very wild.

[Jen]

The 12B1 fee.

[Jill]

Tell us what it is.

[Jen]

Let me know in the comments if you feel as angered about this fee as I do. It is a marketing and distribution fee that advisors are legally able to to charge you for the marketing of the fund to other people. So the fund that they have you invested in, they want to sell that to other people. So they make front end loads and back end loads off more people and they are going to market that on your dime. They're not paying for that marketing. That's the 12B1 fee. So it's named after the SEC rule 12B1 that allows mutual fund advertising paid for by shareholders. So if you have a hundred thousand dollars invested in a fund with a 0.75% 12b1 fee, you are paying $750 per year just for that fund's marketing and distribution. So free financial advisors that take a, you know, a commission off of everything you invest are the most expensive advisors.

[Jill]

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[Jen]

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[Jill]

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[Jen]

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[Jill]

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[Jen]

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[Jill]

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[Jen]

Yeah.

[Jill]

So if you're going to them, because I don't understand what I don't understand, I'm. I'm putting my trust and reliance in you to help me understand these things and they're kind of being shady about it. That really sucks.

[Jen]

Yeah. And so the. The guy we saw was actually a friend of ours working for a company like this where that's why the dude.

[Jill]

In the room was there, like even down. Down his neck. Yeah.

[Jen]

So they only had these few proprietary options. They couldn't offer other options. This happens a lot with insurance, too. If you're going to an insurance company where they only offer one thing versus you could go to an insurance broker who has upwards of 15, 20 different options to shop for you, you know you're going to be getting the best deal. Or you can go to like a site like PolicyGenius where they will compare insurance rates. And so you always have to be comparing the fees, the rates. And somebody who is working in your best interest, you know that they are doing that for you. But somebody who you don't know is working in your best interest, you're not sure if they're just offering you something suitable. So how do you find somebody working in your best interest? It is actually very easy. It is getting easier by the year to figure that out.

[Jill]

Phew.

[Jen]

Right. Technology has done a lot of shady things for us, but it's also done a lot of good things. So thank you, Internet. So the number one thing that you can look for when you're looking for a good advisor is looking for a fiduciary. Fiduciary. Put that in there, see what happens. A fiduciary.

[Jill]

You just want a wand. Do you have a wand?

[Jen]

Oh, I want a wand. I want a wand. Just.

[Jill]

Now I remember that word. Fiduciary. Fiduciary. Your queen mothers. What's the word?

[Jen]

What's.

[Jill]

Who's the one in Cinderella?

[Jen]

I don't know.

[Jill]

Fairy godmother.

[Jen]

Say it with me. Fiduciary.

[Jill]

Fairy godmother.

[Jen]

Okay. And so a fiduciary is legally required to act in your best interest, not just offer suitable products. Legally needs to offer the best products in the ecosystem that they have access to for you. So in their knowledge base, in whatever they have access to. That's why it's good to go to somebody that has access to a lot of things. Right. They are working in your best interest and if they do not, they will lose the designation that they've worked so hard for.

[Jill]

How, how do you know if someone's a fiduciary? Ask them, are you a fiduciary?

[Jen]

And it is such a buzzword. You specifically have to ask are you a fiduciary? And will you put it in writing? Because that's going to get them. They have to put it in writing that makes it legal. Because a lot of firms will say we have a fiduciary standard or they will just use the word because they know you're looking for it. Even if it's not like it's just an idea to them, it's not like a legal obligation. Yeah.

[Jill]

So often brokers, insurance agents, bankers are who are advisors, are not actually fiduciaries. People with certain designations though. So like your fee only planners, CFPs.

[Jen]

They are, they're almost always planners. Yes.

[Jill]

They have to sign a whole thing, understand an entire document of a code.

[Jen]

Of Ethics, a 60 page code of ethics document that actually Jill's friend memorized shout out to Dave Ball.

[Jill]

He is the most intelligent human I know.

[Jen]

What?

[Jill]

Yeah, what?

[Jen]

Wow. Okay. So that makes it a lot easier to find a fiduciary is that you're going to look for some specific designations like cfp, Certified financial planner.

[Jill]

I think that's what makes it, it really easy like you said now to find people that you can know that you trust. It's one of the things that I recommended. Even in the mental health world, when someone's like who should I go to see? Look for the licensing because you can know that they've had to pass a certain set of standards. You know, stay away from just the word mental health coach, but look for a licensed clinical social worker. Look for a licensed marriage and family therapist. Same thing here. Look for a certified financial planner that they're going to be, they're going to have a comprehensive financial planning understanding. So kind of knowing general knowledge on investing, taxes, retirement estate planning, insurances. So if that's the type of thing that you need advice on, kind of anything and everything, that's what you're going to want. A CPA is going to be more tax oriented financial planning. So if you are more focused on optimizing for taxes, kind of really needing to know what am I going to pay in taxes on this? What do we need to be worried about? With capital gains here, there, somewhere else. If you need deep tax, tax expertise, that's who you can go to. If you are more so needing assistance on budgeting or debt management than an afc. So that's an accredited financial counselor might be something that you'd want to look for. So great for some of that more behavioral, financial wellness perspective.

[Jen]

Financial coaching. There are so many financial coaches out there that do not have any designation. You cannot verify what they know about personal finance. Experience is great. Having done it is great. Like we paid off $78,000 of debt. You paid off 60 something. Why do we both always forget? I know, I gotta just like black out. Okay, so we have the experience, but it is a sliver of knowledge in the greater ecosystem of experience. And so education, testing that ensures that the person you're going to has studied experience outside of their own. So I'm not. There's no shade to money coaches or financial coaches, but don't you dare hire one that does not have some kind.

[Jill]

Of like credential and let them manage your finances.

[Jen]

Yeah, some kind of registered trademark credential. Not just some course, some guy getting rich off of selling courses to people, creating courses that created a certification.

[Jill]

And this, this is my hot take. I only want a coach to teach me how to play sports. In any other sector of life, I need credentials. That's just my stance. If you just slap. Because here's the thing, anybody can slap the word coach onto something. There's no reporting, there's no accountability, there's no ongoing monitoring. When you just put the word coach on something, they are not reportable to anybody. And that's worrisome.

[Jen]

For me, the craziest thing is even shady advisors have to take like a series seven, a series six, series 60, five, series 60. They have to take tests even if they're shady. So like they. You at least know more than these coaches that have nothing.

[Jill]

Yeah.

[Jen]

So take that.

[Jill]

I want there to be a board and you need to have to report to this board.

[Jen]

Yeah.

[Jill]

And that's that. When it comes to my mental health and my money.

[Jen]

Okay. I want there to be some kind of ethics committee that if you screw up, you're going to lose your credentials. And I think besides the cfp, the other hardest one that I've heard to get is the CFA Chartered Financial Analyst list and that is investment management. So like that is like if you've got a very complex investment portfolio, finding a CFA is for that. But otherwise a CFP is fine. A lot of these people will have inter like multiple designations. Like you can find a lot of CFPs with the EA designation. And that's, I can't remember, but that's, that's EA is enrolled agent by the irs. So they have a little bit more tax knowledge. So maybe you're a small business and you have some complex tax questions. Finding a CFP who's also either a CPA or an EA would be a good combo for you. So you can mix and match too. But every CFP is going to have some kind of tax knowledge. You can rest assure on that.

[Jill]

And all of these that we just listed off, cfp, cpa, afc, cfa, they all require education, they all have a code of ethics that they need to adhere to or their licensing and accreditation is revoked and require continuing education. So they need to be staying current and up on what's most relevant. And all of those things are just going to serve you better. So the third thing that we would recommend, you know, in finding a good financial planner is how they're paid. So yeah, they've got a fiduciary responsibility to you. Yes, they have their credentials, but even then there could be various fee structures that are more or less advantageous to you. So the model that, that we certainly love the most is the fee only. So that means that they are only charging you a flat rate hourly or they could be doing a percent of assets but no commissions. So this has the lowest conflict between the possibility of them working in your best interest or their own best interest. That it's very straightforward how you're paying them. I think, you know, there's a lot of opportunity here to just pay for consultation. They're not handing over all of your investments to them and they're not doing it for you. They may be advising you on how to, what to be investing in, telling you the, the different paths that you need to take, but that's it and that's where it ends. And so that I think that's my personal choice when it comes to financial planners.

[Jen]

You can find fee only planners who will manage your assets for you. Again with an assets under management fee, but it's only paid by you. There's no 12B1 or front loads or backloads, none of that. But yeah, personally, again, we are confident that you can do your own investing if you have guidance. So unless you really don't want to be a part of your investing, I really think just like a flat fee you get, you pay a bigger fee up front for the holistic plan and then a lower fee annually to Reevaluate everything or reevaluate things when big life changes happen like a job loss or a baby or whatever. Fee only really is our best choice by far. You also have fee based and so you can find certified financial planners, CFPs that are both fee only and fee based. And the fee based will have a mix of commissions within them but they no longer can say their fee only if they take some commissions. They have to say they're fee based. And that's where things get a little murky. I think you see a lot of this from insurance people coming in and getting certified with their CFP and they retain from, you know, their life before some of those commissions. I think that's where you see it. But just be aware that fee only and fee based are different and we prefer fee only. Yeah.

[Jill]

That there could be possible conflicts. I mean still the fiduciary responsibility still bears weight on this.

[Jen]

Right. Whether they're fee based or only.

[Jill]

Right. So it is possible that they might recommend something that would be a great option for you and they're earning commissions but just recognize there could be some conflict there. And finally commission only could potentially be a way that they are paid and that is paid by product sales, whether that's insurance or funds that they recommend that you be investing in. And that's. There's high conflict. That's.

[Jen]

Yeah, that's the red flag. So you want to ask can you outline every way you're compensated and who pays you? And if they hesitate or can't give a clear answer in plain English that is a red flag that they are getting commissions from somewhere. It should be a very easy like I get paid by you and that's it. So there are places where you can find these, these you know, fiduciary CFPs really quality advisors online. The first one is the national association of personal financial advisors Napfa.org and then XY Planning Network. And so that specialize. They specialize in gen X and Y clients and flat fee or subscription models. Both flat fee and subscription are, are fee only. But these are where independent financial advisors will join these usually both of these organizations typically and just be on the resource. So you can go on the website and be like I'm looking for a financial advisor that maybe specializes in this or is located here. And then they'll come back with a list that you can interview and it's kind of like finding a therapist. The first one that you check out or you talk to on the phone may not feel like the right vibe. So you should Talk to several. You should talk to several and see which one gives you the best vibe.

[Jill]

Yeah, you don't want to feel talked down to. You don't want to feel pulled around. You don't want to feel conf. You don't want to feel more confused after leaving their office. Like it should be someone truly where you feel like they are working in your best interest. And that is clear both in word and deed. And. And it's possible with some of these resources to find that.

[Jen]

And again, frugalfriendspodcast.com, get on the friend letter. If you're already on the friend letter, you'll see it in your inbox. The six questions to ask to make sure the vibe is right.

[Jill]

You know what is always in my best interest?

[Jen]

Oh, fiduciary standard from day one, standing on business.

[Jill]

The bill of the week.

[Jen]

The bill of the week. That's right. It's time for the best minute of your entire week. Maybe a baby was born and his name is William.

[Jill]

Maybe you paid off your mortgage.

[Jen]

Maybe your car died and you're happy to not have to pay that bill anymore. Duck bills. Buffalo Bills. Bill Clinton. This is the bill of the week.

[Jill]

Hi, Jen and Jill. First time bill of the week submission.

[Jen]

So I'm excited about this one. I just bought a new bidet for $10 and it happened because I was able to get one $41 check from Rakuten. And as I purchased the bidet, I.

[Jill]

Checked the honey browser extension where I.

[Jen]

Saved myself an additional $15. So I'm staring at a bill for this bidet for $151 knowing that it.

[Jill]

Only actually cost me $10.

[Jen]

So thanks for all of your encouragement and sharing about extensions like Rakuten and Honey because I just got paid to.

[Jill]

Shop and then I only spent $10.

[Jen]

To buy something worth $150. So I am enjoying all of these new purchases. I wish that we made merch because Tonsillectomy Girl Summer would be a shirt that we would sell.

[Jill]

Yeah, that. That definitely. At least Mary would buy. I don't know if anybody else would.

[Jen]

But I love that. It would just be great to just wear without contacts for anybody. Tonsillectomy girl Summer. And how few people would talk to you. Like, if you just remember when I lost my voice and somebody from my past came up and talked to me, if I had been wearing a tonsillectomy.

[Jill]

Girl Summer shirt, they would have understood.

[Jen]

Yeah.

[Jill]

View her from afar.

[Jen]

View her from afar. Though I think we should be talking to each other more but in the off chance that you have lost your voice voice or your tonsils.

[Jill]

I love this though. What a good I mean yeah, I hope that you recover well and enjoy your have enjoyed your summer.

[Jen]

Summer's over but all your electrolytes Mary I am carb loading and electrolyte loading as we speak. Yeah my race on Sunday I think.

[Jill]

It is good to do a review and cancel these subscriptions right? Don't be pains for stuff you don't need. But remember if you have unused rewards, yeah there's probably plenty of these types of subscriptions where I got points I could cash in for something. Do that Absolutely. Leave nothing on the table.

[Jen]

Leave no reward unturned.

[Jill]

So true. Well if you all listening have a bill that you want to submit. If it has to do with tonsillectomy girl summer or a bill November or just you have something that you want to say to us and you're going to try to find some way to connect it to the word bill.

[Jen]

Please do.

[Jill]

We are here for it. Frugalfriendspodcast.com Bill also the link in the description I'm one of those people who really enjoys getting the best deal when I can stack coupons, discounts and rewards all at once. It's unbelievable. And that's basically what Rakuten does every time you shop over the holidays. It's my favorite hack for saving because you can stack cash back with the store's own sales. So if your favorite shop is offering 20% off and Rakuten has 15% cash back, you're getting savings on top of savings.

[Jen]

I've been using Rakuten for years now, especially during the holidays. I love that it works at places I'm already shopping, like Target, Petsmart, even Expedia. For travel, you just go to frugalfriendspodcast.com rakuten or use their app or browser extension and start earning cash back automatically.

[Jill]

And this time of year, stores are having their highest cash back rates. Plus those big deal reveals where one brand drops a huge cash back offer for just one day.

[Jen]

It's free to join, super easy to use, and you can even get a welcome bonus after qualifying purchases. So if you're already shopping, do it through Rakuten and keep more of your money this season. Go to frugalfriendspodcast.com Rakuten R A K U T E N It's time for Black Friday.

[Jill]

Dell Technologies biggest sale of the year. That's right, you'll find savings on select Dell PCs like the Dell 16 plus with Intel Core Ultra processors and with built in advanced AI features, it's the PC that helps you do more faster.

[Jen]

From smarter multitasking to extended battery life, these PCs get the busy work done so you can focus on what matters most to you. Plus earn Dell rewards and enjoy many other benefits like free shipping, expert support, price match guarantee and flexible financing options.

[Jill]

They also have the biggest deals and accessories that pair perfectly with your Dell PC, improving the way you work, play and connect. Whether you just started holiday shopping or you're finishing up, these PCs and accessories make perfect gifts for everyone on your list.

[Jen]

Shop [e-mail] deals and don't miss out. That's Dell.com deals.

[Jill]

And now it's time for the lightning.

[Jen]

Round and this one's for us, but it's also for you at home. So wait for it. Jill. Okay Jill, what do you think about becoming a certified financial planner?

[Jill]

Oh Jen, this is not the day to ask me that. I think it might not happen. Jen and I are both taking courses to become CFPs to be that very thing we tell you that you should be looking for certified financial planner fee only structure, fiduciary responsibility. We believe in it so much that we're like why don't we do it?

[Jen]

Yeah. And thinking that it's time even in our content creation like Frugal Friends isn't going anywhere. But AI has made influencers a dime a dozen and you cannot be sure if the person giving their experience is just just spouting regurgitated information that they do not know is wrong. Just like you know what I was experiencing in the early days of my writing. Like thankfully I had editors and I had oversight, but not everybody has that now. And so we think it's going to become more and more important for you to get your financial education and information from credentialed individuals. People who have taking classic classes, who are bound to a board of ethics and are taking continuing education and are bound to a fiduciary duty. We think that's going to become non negotiable in the future.

[Jill]

So it's what we're doing. I'm a little kicking and screaming and it feels like drinking from a fire hose.

[Jen]

We are in school. Like we started school, we're back in school because we have to take seven college classes and then sit for a six hour exam and verify with the CFP board that we have 6,000 hours of experience in the personal finance world, which we do after, you know, writing about it. Writing, publishing a book, doing this for eight years. Yeah. So. So it's a lot. And a background check.

[Jill]

Oh, I forgot about that.

[Jen]

That's at the end.

[Jill]

Dang.

[Jen]

They make you do the work, right? They do all the work and then they give you the background check.

[Jill]

Sneaky. Sneaky. Wow. Okay. How are you feeling about it? Or it's not how you're feeling. How do you.

[Jen]

What do you think about it?

[Jill]

What do you think about it?

[Jen]

Well, I am. I'm super passionate.

[Jill]

What are you thinking? What are you feeling? And how are you thinking about what you're feeling?

[Jen]

Feeling. I am excited to get to work with people in a deeper way. Frugal Friends allows us to offer education in a. In a wide way, in a wide area. But having relationships in, like, face to face relationships is becoming more and more important to me. And I am becoming more and more disillusioned with influencing and influencers in general. Not the people, but like the career.

[Jill]

Yeah.

[Jen]

And I'm really looking forward to offering this.

[Jill]

Yeah.

[Jen]

We make our money off of advertising. Right. Which feels kind of like we advertise and we speak for things that we really believe in, but it makes it limited. So this is also a way that we can ensure that we can do this. This for the long term and can turn down, Keep turning down those ads that don't align with us and still be able to turn our family so much. Yeah.

[Jill]

When people, they're constantly coming to us. What about this? What about this? What about this? We're just like, no, it's not like we're popular, but like, I mean, we're turning down a lot, though.

[Jen]

It's the products that you see everywhere on social media. Right. And you know what I'm talking about. And we're just like, no, like, not it.

[Jill]

We can't.

[Jen]

Yeah. So can't.

[Jill]

In good conscience. We're not special $30 cleaning products.

[Jen]

So, yeah, I am keeping up. I'm in the insurance class right now and I.

[Jill]

You are. You're whipping through it faster than I am.

[Jen]

I have no social life, so I sit in bed every night and I read the class. And you go out and do my bad and you're living life. Yeah. And that's your problem. I don't do anything, but I am very, very excited about it. And so it'll be either July or November of next year is when it will happen. But here's your turn in the lightning round. What do you think about it? What do you think? What do you.

[Jill]

What do you think about what?

[Jen]

About us becoming certified, doing it.

[Jill]

Yeah.

[Jen]

And let us know in the comments what you think and if it's mean, don't put in the comments. Just don't say it.

[Jill]

In general, send it to howtomoney.com if.

[Jen]

You don't like it. We're Joel and Matt. They don't even know that we tell this joke. Honestly.

[Jill]

They'Re about to find out. I think in the email Jill should not become a cfp. What?

[Jen]

Okay. Yeah, let us know. Wow. And thank you for listening. I hope this episode illuminated shed some light on this topic of financial planning in general and was a sweet one to break the news to you that this is something that we are interested in and passionate about. And if you enjoyed it, please subscribe to the YouTube channel. Hit the like button. Hit the subscribe button and slam that like button. Slam that subscribe button.

[Jill]

Pound it. Front load that thing.

[Jen]

And if you've read our book, Buy what yout Love without Going Broke.

[Jill]

We would so backload the reviews.

[Jen]

We would so love a review on Amazon. You don't have to have purchased it from there, but it is where most people go for their reviews. Like Kyle did left a Review on Amazon. 5 stars. I've been listening to the dynamic duo behind the Frugal Friends podcast for years now, cultivating good financial habits based on their approach of values based spending. So when they decided to release a book, I clearly did not hesitate to read this book. And boy is it a fantastic read. Reorienting yourself away from the values of what others define to be successful, successful life and to what makes you happy, fulfilled and successful is the bedrock of many chapters here. This is financial advice that isn't steeped in some arbitrary rules developed by a financial coach, but is guidance that forces you to look into your own values and assesses what matters to you. This book is a must read. It will change how you view money on your own terms.

[Jill]

Amazing. Thank you Kyle. If you feel similarly about our book, about our podcast, about our YouTube channel channel, you know what to do. Just do the thing. It's free. We're gonna love you for it. We are responding to all of your comments on YouTube as well. So.

[Jen]

So leave something unhinged like just. And those are my favorite ones.

[Jill]

They are fun. We do see you and we get it obviously because we're same. So if you leave something unhinged on a level that we're gonna get, we're gonna. We're gonna love it and respond.

[Jen]

We're gonna be unhinged back and so we'll see you in the Comments and.

[Jill]

We'Ll see you next time.

[Jen]

Frugal Friends is produced by Eric Sirianni. Okay, so you remember my $94 shampoo? Couldn't forget actually. I know.

[Jill]

Actually I do think about your expensive shampoo like pretty much every time I'm in the shower. Wow. No, Anytime I shampoo my hair, which is not every time I'm in the shower I'm like dang Jen, shampoo expensive.

[Jen]

Yeah, well I went back and it was 84o and Amazon does not have a price like match forgiveness or anything. So what I did was that I bought the shampoo, returned the $94 one cuz it's still in the return window. And when this $84 shampoo gets in today, I'm just gonna return it like it was the $94 one.

[Jill]

My mom played that game all the time. I don't know like exactly how ethical it is.

[Jen]

Well, you know what, they should just be offering price match.

[Jill]

I know. If it's within that return window, then.

[Jen]

Yes, it would be a lot better for the environment.

[Jill]

Did you consider reaching out to them and saying that? That.

[Jen]

No.

[Jill]

Cuz I feel like they probably would if you were to have like reached out and been like I'm within this window. Will you?

[Jen]

That's smart.

[Jill]

Spot me cuz now it's a lot of work on your end.

[Jen]

I know I'm just going to run it to the UPS store.

[Jill]

But yeah, that was my mom's classic. I think she kind of viewed it as a side hustle. Was just like finding things for less, returning the more expensive one like that. We were constantly returning stuff.

[Jen]

Wow my gosh. These girls that I was sitting next to talking about yesterday at the coffee shop, talking about all the things they were buying. One of them was justifying like everything but like, oh like I can just return it. Oh, they have a great return policy. Oh, buy it and just return it. And if you don't like it. Returning was her justification for literally two and a half hours of talking about things she had bought that she wanted to buy or that her friend with her should buy.

[Jill]

I mean, I love it as a last resort when I regret a purchase. Like I love that I can return it, but it is not my MO in making the purchases.

[Jen]

Right. I do not want to return stuff.

[Jill]

No, I hate returning stuff.

[Jen]

And this was a situation where I was like, okay, $10 is worth it for me to just drive up the street to the UPS store. Yeah, it's not out of my way. Oh yeah. So you can say that it's $84 shampoo now.

[Jill]

Well done this holiday, discover meaningful gifts for everyone on your list at K. Not sure where to start?

[Jen]

Our jewelry experts are here to help you find or create the perfect gift in store or online. Book your appointment today and unwrap Love this season only a K.