You might think you don’t have any money so what do you need a financial planner for? Kamron Nahavandi financial advisor who will actually help you make money. As an independent financial advisor located in Orange County, CA, Kamron Nahavandi’s focus is on providing clients with top-notch customer service in the areas of retirement planning, wealth management, estate planning, life insurance, and full-service financial planning. His mission is to offer products and services to investment clientele using the highest standards of ethics, and assisting individuals, families, and business owners in accumulating, preserving, and passing on their wealth beyond expectations.
I’m really excited about my guest, Mr. Kamron Nahavandi, who is my personal financial advisor. He is located in Orange County, California. He focuses on providing clients with topnotch customer service in the areas of retirement planning, wealth management, estate planning, life insurance and full service financial planning. His mission is to offer products and services to investment clientele using the highest standards of ethics and assisting individuals, families, and business owners, in accumulating, preserving and passing on their wealth beyond expectations.
Listen to the podcast here:
Understanding The Importance Of Having A Financial Advisor with Kamron Nahavandi
I’m so excited you’re here with me, Kamron. Thanks for coming.
Thank you for having me.
I have known Kamron Nahavandi for several years and we were introduced by my friend Aurora who was a massage therapist. She kept telling me about this great guy she knew who took care of financial stuff. I was like, “I don’t have any money. What do I need with a financial planner?” She’s like, “Don’t worry. He’ll help you make money.” I was like, “Okay.” I ended up meeting Kamron and I talked him into getting chiropractic care and then he talked me into letting him handle my finances and I can proudly say he’s helping me grow my money. Welcome.
Kamron, I wanted you on the podcast because my podcast is, Is Your Head On Straight and as I said in my introduction, for those of you that have been following my journey, Is Your Head On Straight has more implications than just like physically, literally through the work I do in Blair Chiropractic. I want people to have access to really good information to cover all aspects of their life and finances is a huge aspect of one person’s life. I wanted you to come on because you’re the guy I trust with the money. I guess I want to start back to the beginning of our relationship because I think I got you in to see me before you convinced me to see you. Can you tell me how you look at financial health and how do you monitor or test to see if somebody needs your services?
Similar to your industry, I do a complete checkup from head to toe. When someone comes to see me or if I go to see them, I’m looking at their overall financial situation, not just with investments, but really just how they’re doing in general financially. What their income is, what their expenses are? Do they have adequate savings? Do they have all the protections in place to protect themselves and their families? I really look at the spread and go from there.
When I first met with you, you sat down and did that and then you found that there was an insurance policy that was actually a better fit for me than the one that I had. It has this writer on there, so God forbid anything ever happened to me, I have this really neat policy where I have a little bit of an insurance. What is it called?
In your case it’s disability.
That’s right. In case I can’t work or I can’t use my body to do my job, I can use my life insurance and get paid some money every month to cover what I would have been making had I been working. I didn’t know about that. That was a really cool piece of information. You also helped us figure out our tax situation and you have a ton of resources. Can you give me an example of some of the people you work with to help make this whole picture look good?
I think of myself as the quarterback but then I have an excellent team that I rely on and that goes from insurance experts to estate planning attorney is to tax advisors, CPAs. Pretty much any challenge that I’m faced with, with a client, I know at least two or three experts in that field that I can turn to and get their second opinion so I can help the client.
Another thing that I liked that you did was you got out a piece of paper and you drew a diagram out and you explained really like complex financial understanding in a way that was really simple. I’m a pretty smart chick, but when it comes to all the different ways to diversify and understand this market and that market, you broke it down into an easy thing. Do you teach classes on this?
I have taught classes before. Nowadays the way that I do education for the financial industry is either I’m doing some seminar or webinar for a large group of people or of course when I do my one-on-one meetings, I’m all about education. I do usually just show up to an appointment with nothing else but a notepad and a pen. I just take a lot of good notes and then I just draw a bunch of pictures to help explain to that person how I can help them.
I think that’s awesome because you’re like the financial doctor because when I walk into a room with a patient, I don’t have anything except for my mind. A couple of tools after we get to the point where I feel like they do need an exam, but just being able to sit down and listen and talk to people and figure out what are you looking for, what are your needs? I want to know why you got into becoming a financial advisor. Tell me your story.
I almost didn’t have a choice actually. I grew up in the industry. My mother has been an advisor for about 25, 26 years now. I started working with her when I was twelve, I’m 38 now. I’ve been in the industry for quite a while. In 2007 I became a licensed advisor myself and have been helping clients since then. The second reason why I do it really is just because I really love it. I love helping people. I feel like people need that help now more than ever because there’s a lot information out there are also a lot of misinformation out there. I think people are very confused. They’re very frustrated and they need help and they need guidance and I feel like they’re not getting it as much as they should. I try to help them that way.
Why would somebody give misinformation, because they simply don’t know?
This has a loaded question. One thing I say to some of my clients when they are coming to me from having a bad experience with the previous advisor, and I don’t know that advisor, so I can’t really say for sure what the problem was. I’ll say either they didn’t know any better, they just didn’t have the right information to be able to help you or they just weren’t really good people and they wanted to do the wrong thing instead of the right thing. To me it’s not terribly important to figure out which one of those is the case because the end result is still the same. You still end up with something that you shouldn’t have ended up with. I just feel like there are a lot of advisors out there that they do mean well, but they’re just not doing things the right way. There may be some that don’t even mean well just like any other industry.
I relate to that because I do inherit a lot of people who have seen other chiropractors and I try to tell my patients it’s not that that chiropractor was doing anything bad per se, it’s just they didn’t have the same training. I happen to have this specific Blair technique that is a little bit more advanced and more specific and it’s what you need. Obviously, the people who you used to see are helping some people because if they weren’t, they wouldn’t be in business. I completely relate to that. You had mentioned just now that you said now more than ever, people need to have good information. What do you feel like the climate of financial health is now in 2018?
We’re in an interesting time right now because we have more options available to us than ever before. We have more information available to us than ever before. We have access to things we didn’t use to have before, and yet the dichotomy is we also have a lot of confusion, a lot of frustration, a lot of people who just don’t know where to even begin or how to start a or what direction to go. As a society, we’ve really shifted in the last 30 years if you think about 20, 30 years ago. You worked for a company for 30 years, you’re retired with a pension, social security took care of the difference and maybe you happen to save money on your own and you probably were working with a stock broker. If that stock broker lost all that money, it wasn’t too big of a deal because you still had your pension and your social security to live off of. Nowadays, pensions are going away like the dinosaur and a social security isn’t really cutting it anymore for people. The larger emphasis is what are you saving on your own and is that going to be enough to retire off of. Now, if that same stockbroker loses that money in the stock market, you’re in big trouble. That’s why I feel like people need guidance now more than they did ever before.
It’s one thing to be a little bit riskier when you say in your 30s because you potentially have the ability to work for another 30 years so you can be a little bit more aggressive when you’re younger, but from the experience that I’ve had always recommend having a diversified portfolio.
Whether you’re 30 or 70, whether you have $5,000 or $5 million, I treat everyone the same in that I want them to have some of their money in the safe or guaranteed section of the portfolio where they don’t have to worry about it. Some of their money and can be in the market, which is fine and then some of it can be an investment that are not even market-based. Even if the market crashes, it doesn’t really affect that part of the portfolio. I think everyone agrees you should have diversification, but not everyone agrees on what that actually means.
I liked the way you look at it because you have this pie chart and what are the different aspects of that pie char because I don’t remember everything? I know that one is risky, one is pretty even and then the other one is like, you tell it, you’re the veteran guy at this.
You remembered well. You are one of the smarter cookies I work with. There are three general categories in an investment portfolio that I create. The first one has the safe and the guaranteed stuff so you don’t have to worry about the market crashing. The second category is investments that are not tied to the market at all. We call those alternatives and those do what they do regardless of what’s going on in the stock market. You can rely on those. Even the portion of the portfolio that’s in the market as opposed to just having a buy-and-hold strategy, just roll the dice and hope for the best, we really watched the market and see what it’s doing and manage that part of the portfolio. When the market is doing well, we’re in it, we’re growing, we’re doing well. When it starts to go downwards, we pull the money out and we sit in cash and wait until it starts going up again.
Can you tell me where real estate falls into that pie?
As an investment? You could have real estate in that second category that I talked about, the alternatives. An extremely simple example would be if you owned a piece of rental property and you were renting it out for $2,000 a month and it was paid off you’re making $2,000 a month income off that property and that in theory is independent of what’s going on in the stock market. That would be considered an alternative.
How would you recommend to even get started? I was always under the impression because I didn’t have a big chunk of money and I was out of school and I had some student loan debt, I know I was just getting by and you were like, “It doesn’t matter.” I think you said earlier something about if you have $5,000 or $5 million, I look at you the same because you still have a need to want to protect what you have. Can you talk to the beginner investor or the beginner in getting their financial health in order and give some encouragement to that?
I think we need to clarify the purpose of seeing a financial advisor because I do get those people that say I don’t have any money to invest so I shouldn’t talk to you. That’s like saying, “I’m not perfectly healthy so I’m not going to go see my chiropractor.” Usually, you go see a chiropractor because there’s something going on with your spine that you probably need some correcting or fixing. The same should be true in the financial world. If you feel like you’re not where you should be, “with your finances,” then that’s a reason to meet with a financial advisor. To the beginner, I would say don’t worry about being a black belt at your first day. Learn the basics like a white belt does and eventually you’ll get to the point where you’re a black belt. Those basics are really what’s the most important. Making sure you have adequate savings, making sure you have an emergency fund if something happens to you and you can’t work, making sure you have all the right insurances in place to protect you and your family, the proper estate planning, if you have children, if you have a spouse, if you have a mortgage. Those are all things that you want to make sure you are safe and protected before you even worry about investing and making 20% in the stock market.
That’s a really good foundation. I was really grateful that you drilled that into me in the beginning because I don’t know that I would even still feel like I’m above water and have these extended expendable dollars to invest. If you just get started, like you said, and I think I’ve been working with you probably for like six years now and we actually have stuff making money for us and we have a little bit of savings and I feel like our little portfolio is growing and it’s diversified and it’s good because I am 38 just like you and I hopefully have another 30 years to work and I understand that I’m not always going to be in this spot here where I’m paying off my student loans and where my kids are in school and actually still have to pay for daycare. Eventually those things are going to go away and I’m going to have a place to put the money that I’ve worked for, which is really neat. Can you tell me about a case study? For me, like I’ll tell a patient testimony where I had this person come in and they had this thing and then they got better because I gave them an adjustment. Do you have a really cool story to tell about somebody that you helped and they were really excited?
Definitely. All of them.
Yes, I am one.
I do have a person that I worked with who is in their seventies and they were referred to me by their CPA. When I met with them they had about $500,000 invested with another gentleman. When I looked at that portfolio, it was all extremely high-risk stuff. If we were going to have a market crash, she was looking at possibly losing half of that portfolio. She didn’t have any long-term care insurance. She didn’t have any income coming to her. She was working a part time job just to try and pay her bills. She told me her main priority is not to lose this money. I thought, if that’s your priority then you shouldn’t be in high risk investments. Also at your age, you should be retired and you should be enjoying yourself. You should spend more time with your kids and go hiking and do the things you love. Long story short, I was able to reallocate that portfolio in such a way that it started to provide her with more income than she was getting from her part time job. She was able to quit that job and spend more time with your kids. It also covered her, if she ever had a long-term care situation to come up and it was mostly in the guaranteed section of the portfolio. If the market crashed, she wouldn’t have to worry about losing it.
You let this lady have a retirement where she could do what she wanted to do, keep the money she already had and got it growing. That sounds awesome. Talk to me about the forecasting for long-term wealth development because like I’ve talked about with these beginning investors, what do they say about planting a tree? The best time to do it is now or twenty years ago. The same thing with being an investment person and taking care of your finances. Talk to me about like long-term projection. What do you advise for your people where they’ve got years ahead of them?
A few different things on that point. If you have a lot of time on your hands, if you’re in your 20s or 30s and you’re working, again, don’t worry too much about putting $50,000 into an investment in the first day. Even just saving $50 a month or $100 a month over the next 20 to 30 years will actually be a lot more money than you think. Start small and just have a consistent habit of saving money on the side. Long-term, people get very caught up in the market cycle. When the market’s going up they celebrate a little bit too much and when it’s going down they panic a little bit too much. You have to be able to zoom out and remember that for 100 years the market’s been going up. What it does is it takes dips downward every seven, eight, nine years or so and that’s just a normal market cycle. If you have 20, 30, 40 years, then don’t worry about those ups and downs because generally speaking, over time you’re going to have enough money in the future. Now, if you’re 60 or 65 and you’re looking to retire in the next year or two, then it does matter where we are in the market cycle and you do have less time to plan and prepare. You want to make sure that most of your money is on the safe side and not on the aggressive side.
I like how it’s tailor-made to every unique circumstance, every unique situation. I was just sitting here thinking that 2008 is when I moved to California. July will be a decade that I’ve been out here and I moved out here during the great recession and gas was over $5 a gallon. I moved here from the most affordable place in the country, Iowa to Orange County. I had absolutely no idea how I was going to work, but I had a plan and a purpose and a calling and God said, “Go.” I said, “Okay.” It’s been ten years and all I’ve seen is growth. I’ve made more money every year. I’ve had more success every year. If the market has a little dip every nine to ten years, aren’t we ready for a reckoning at this point? Is that what you’re seeing?
It’s again an interesting time right now because based on market cycle logistics, it seems like we should have had a correction by now and some argue that we just did a not too long ago in the last month or two, we saw a little bit of a correction. Maybe that’s the only correction we’re going to see for awhile. A lot of things are going on right now with our country politically and what’s happening is we have a lot of the fundamentals are still working in our favor. Because of tax reform, because of deregulation, you’re seeing increase in profits, you’re seeing increase in growth, you are seeing a decrease or at least maintaining of low unemployment. These are all fundamental factors that contribute to a market that will continue going up. I don’t know that we’re going to see a huge crash anytime soon. I’m optimistic that we’re going to continue to see steady growth for a little bit longer here. Now, that’s not to say that we won’t see a 7% to 15% correction in the next six months, twelve months, twenty months, we might.
You plan for that in your assessment and in your report or findings, you have the diversity happening with each of your clients in such a way that that 7% to 15% dip doesn’t really affect people that poorly.
I have to remind my clients that if the market goes down 7% to 15%, that doesn’t mean you went down that much. When we say “the market,” typically we’re talking about the S&P 500. As an advisor, I don’t take my client’s money and just throw it into the S&P 500 and hope for the best because they could do that without my help. When the market is down, whatever it is, 5% or 10%, oftentimes my clients are down significantly. Less than that, we’re not even down at all and they call me scratching their heads wondering why. That’s always a fun conversation.
I know that we did that. I don’t even know if we actually have anything in the stock market. I actually know we don’t because I’m not a risk taker like that. I work really for my money and right now I’m just not willing and you’re cool with that. You would like meet me where I am eventually we’ll get there, but I know that I emailed you because I had read some rapport and I was that girl. I was like, “Kamron, they said this and this and that.” Honestly, this is why I stay away from watching the news most of the time and you actually sent a blanket email to your entire population of clients because I think we probably had more than just me calling because it was a big thing that came out. We haven’t lost any money and in fact I think we’re doing pretty well. It’s like you said and so I’m really grateful for your even keel, easy, steady, calm presence in the face of what could potentially be a huge disaster.
The media, we have to remember is a for-profit industry and they don’t make a lot of money if they get on television and say, “Everyone, the market is doing okay now. Enjoy the rest of your day.” They make money when they get on TV and say, “The sky is falling. The sky is falling,” and everyone tunes in. We have to take a lot of what they say with a big grain of salt.
That’s good to know. Like I said, I stay away from it most of the time. I am so I’m happy that you were here to share some of the insight that you have. Hopefully my listeners have been enlightened in a way. If you have any questions, comments, concerns, you can reach out to me, but even better, how do they find you?
They can reach out to you if that’s easier for them. If they want to look at my information, I have a website which is www.KN-Advisor.com.
I know that you aren’t super keen on social media but you’re getting back to it. Eventually we’ll find you on Facebook and Twitter and Instagram and all that fun stuff, I’m sure.
I have a love-hate relationship with social media, but also my industry is so heavily regulated that it’s a challenge to have a lot of my business on social media because the regulators really hammered down on us about that.
I understand that a lot. I’m in Chiropractic, we can’t have sensational advertising even if the person that I adjusted no longer has cancer. I can’t say I cured cancer because I didn’t. I gave them an adjustment and everybody did with that what it did. I totally understand regulation. I am so grateful for the information. I’m so grateful for your leadership in my life and in my financial health. I appreciate your doctoring ability for our checkbook. It’s really good.
Kamron, I’m so glad you were here. Everyone, thanks so much for tuning in. I can’t wait to have you here our next episode. See you soon.
About Kamron Nahavandi
As an Independent Financial Advisor located in Orange County CA, my focus is on providing my clients with top-notch customer service in the areas of retirement planning, wealth management, estate planning, life insurance, and full-service financial planning.
My mission is to offer products and services to investment clientele using the highest standards of ethics, and assisting individuals, families, and business owners in accumulating, preserving, and passing on their wealth beyond expectations.