Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 15 out of 100 top ETF Power Users by RIA channel (2023), was [...]

Alan Clopine

Alan Clopine is the Executive Chairman of Pure Financial Advisors, LLC (Pure). He has been an executive leader of the Company for over a decade, including CFO, CEO, and Chairman. Alan joined the firm in 2008, about one year after it was established. In his tenure at Pure, the firm has grown from approximately $50 [...]


Andi Last brings over 30 years of broadcasting, media, and marketing experience to Pure Financial Advisors. She is the producer of the Your Money, Your Wealth® podcast, radio show, and TV show and manages the firm's YouTube channels. Prior to joining Pure, Andi was Media Operations Manager for a San Diego-based financial services firm with [...]

Published On
June 13, 2023

How does bonus accelerated depreciation work when it comes to commercial real estate? Is real estate a good source of retirement income, and can it take the place of safe assets like bonds in your investment portfolio? 

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Show Notes

  • (00:43) Bonus Accelerated Depreciation on Commercial Real Estate Purchase (Papa Joe, Naples, FL)
  • (07:04) Is Real Estate a Good Investment for Retirement Income? (Doctor Jerry, Waco, TX – from episode 426)
  • (13:00) Is Real Estate a Substitute for Bonds in a Diversified Investment Portfolio? (Don, VA – from episode 416)
  • (17:08) Can I Move Investments In-Kind From Inherited Trust to Brokerage Account? (George, KS)
  • (24:15) Tips for Taking the CFP Exam and Building a Career as a Financial Advisor (Craig, St. Clairsville, OH)

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How does bonus accelerated depreciation work when it comes to commercial real estate? Is real estate a good source of retirement income, and can it take the place of safe assets like bonds in your investment portfolio? That’s today on Your Money, Your Wealth® podcast 433. Plus, can investments be transferred in-kind from an inherited trust to a brokerage account? And what tips do the fellas have for acing the CFP exam and launching a career as a financial advisor? If you’ve got money questions, visit YourMoneyYourwealth.com and click Ask Joe and Al On Air to send them in as an email or a voice message. I’m producer Andi Last, and here are the hosts of Your Money, Your Wealth®, Joe Anderson, CFP® and Big Al Clopine, CPA.

Bonus Accelerated Depreciation on Commercial Real Estate Purchase (Papa Joe, Naples, FL)

Joe: “Hi, YMYW team. This is Papa Joe from Naples, Florida. Typing this email while drinking a Modelo. And my one-year-old snoodle puppy is sitting on my lap.”

Al: Nice.

Joe: “My question is regarding bonus accelerated depreciation as it relates to purchasing a commercial real estate property. I want to purchase a $3,000,000 car wash or gas station strictly as a landlord, not as an owner/operator via 1031 exchange this year and then perform a cost seg study. Depreciate 80% of the capital improvements, including the equipment which the IRS allows in 2023. Is this 80% bonus depreciation-“

Al: If-

Joe: “-If this 80% bonus depreciation is $1,200,000, can I use this amount over many tax years to offset any proceeds from the following? Rental income from this property and other properties. Dividend from traded REITs. K1 reported income from real estate syndicated deals and partnerships. K1 income from non-real estate businesses and/or is there any other types of income that can offset? I know there will be depreciation recapture when the property is sold. But if I sell the property in the future via another 1031 exchange, will the depreciation recapture continue to be deferred? Thanks for the great show as it helped me in figuring out that I can retire and how to set up a solo 401(k) and mega door back Roth. All the best.” Oh, he’s learned a lot from us, but Papa Joe. Papa Joe is killing it in Naples.

Al: Well, I got a few things to go over here. Few misconceptions. We gotta break a couple of these terms.  We just slow the roll here.

Al: We do.

Joe: Papa Joe.

Al: Yeah. So, so maybe the- to translate- So Papa Joe wants to buy a business that is part business, part real estate, $3,000,000. It’s a,-it’s a carwash or gas station. So that’s what he’s buying and he’s trying to buy it on a 1031 exchange. Which means he already has another property that he wants to sell. And if you do a 1031 exchange and you follow the rules, then you can actually defer your gain from the property you sold into the new property. So that’s what he’s trying to do.

Joe: So for instance, he bought a property for $100,000. It’s worth now $3,000,000.

Al: Yes.

Joe: Instead of paying the tax, he’s gonna roll all of that gain into this new property via 1031.

Al: Yeah. And so that’s a perfect example then. So in that particular case, you buy this $3,000,000 property, your depreciation doesn’t change. All you get is the $100,000 that you started with. The only time you get new depreciation on a something like this is if you put new money into it. So in other words, you sell a property for $2,000,000 that you bought for $100,000. We use your example there. So you’ve- you’ve got $1,900,000 of gain. You rolled into the new property, but you had to put another $1,000,000 in, whether it’s your own cash or you borrowed, it doesn’t matter. That’s considered putting money in. So you get to depreciate that extra $1,000,000. That was new money, right? Or new financing. So that- that’s what we’re talking about. Not the whole $3,000,000, we’re just talking about in this example, the $1,000,000. So that’s what you have to work with.

Joe: So he would get in that scenario, cuz his total basis would be $1,100,000. So would he get $1,100,000 of depreciation?

Al: Yeah. Yeah. And I mean, he is already depreciated, right? So it’s whatever’s left over-

Joe: – left over from the $100,000, which is probably zero.

Al: Yeah, we’ll call it zero, just to make the example easy. So the $1,000,000 that you get to depreciate now. Well first of all, you gotta split that between land and building. So part of its land, part of its building. Land by definition per the IRS doesn’t depreciate cuz it’s there. It stays there. Right? Absent a earthquake or hurricane. The cliff’s rolling into the ocean or something like that.

Andi: Then can you depreciate?

Al: Yeah. Yeah. Now you can depreciate your building. Now, commercial property you’d depreciate over 39 and a half years. So that $1,000,000, let’s just say 70% of it is building. So that 70% of that you divide by 39 and a half years. That’s how much you get to depreciate each year. That’s- that’s the calculation. Now, if you do a cost segregation study where you pay an engineering firm to come in and analyze what you really bought-

Joe:- pictures and-

Al: Yeah, you’ll do better because you bought carpeting. You bought in this- in this particular case, it’s a car wash or gas station. So you got pumps, you got all kinds of stuff.

Joe: Hoses.

Al: Hoses that-

Joe: Soap.

Al: Yeah. Lots of soap. Right. So- so the personal property, you get to depreciate over 5 years and land improvements over 15 years. Certain property like furniture over 7 years. So if you can segregate what you really bought, it’s not $700,000 of land. It’s maybe $550,000 of land and $150,000 of other stuff, then you can take extra depreciation on that part. So let’s call that part $150,000. Okay? Now to do the bonus depreciation, your depreciable life has to be below 20 years. So the 39.5% building out the window. So you’re left with $150,000. You could take 80% of that. So let’s call that $120,000. That’s what you get to depreciate, not $3,000,000 in my example. Yeah. Right. And then you can- then you can use that against profits from that business. And, but then you gotta look into, is this a passive business? Is this an active business? And the rules are completely different. If it’s passive, if you don’t, if you really have very little to do with it and it’s real estate oriented, you can only net it against other real estate income. If it’s active and you’d have to dive in to see exactly how much you’re doing and how much of this is a car wash versus real estate. Then you could take those losses against any other income, generally only in the year that you have the loss. But if you create so many losses that you can’t use ’em all in your current year, then you get a net operating loss carry forward that you can do for 20 years in the future.

Joe: Papa Joe. It’s Big Al for you. Hopefully that helped.

Is Real Estate a Good Investment for Retirement Income? (Doctor Jerry, Waco, TX)

Joe: We got “Gentlemen and Gentle lady. I have some questions about the role of real estate and retirement portfolio. My wife and I live in Waco, Texas and we recently got a new grandbaby in Kentucky. I’m a retired doctor. I like IPA beers and I drive a modest Toyota Corolla, silver, so it never looks dirty.” All right. That’s wise. He is a doctor. A couple more years of education than me.

Al: Yeah. He is way smarter than we are.

Joe: Way smarter. “We have done well to save, so I know we’re set for retirement. I’m not interested in- but I am interested in tax savings. Because I feel that I paid my fair share so far. I’m 67 years old. I have $3,000,000 in a traditional IRA and $8,500,000 in a-” (coughing) excuse me, doctor- brokerage account.

Al: Doctor, get over here right away.

Joe: Doctor, you are a saver. “I’ve heard real estate is a good- is good for retirement income because it produces steady income, but you also have to either manage the properties or pay someone else to do it. And there’s no guarantees.”

Al: Wow. You started thinking about doctoring.

Joe: I know.

Al: Here it comes.

Joe: Here it comes. “So are there significant tax savings opportunities if I buy an investment property in either Texas or Kentucky? Google says I can deduct R and M expenses-“

Al: – repair and maintenance-

Joe: “- and depreciation, among other things. But is it deductible against only rental income or possibly against my total income, namely eventually my really high RMDs. I’d rather not have the hassle of trying to rent it out to anyone. I’m gonna have-“ the heck-

Al: What the heck is-

Joe: What the heck is a bonus depreciation?

Al: Oh, that is a good question. “And finally, in terms of tax-“ so he’s just doing research.

Al: Yeah. He’s got all these buzz terms.

Joe: He’s got the doc, you know, he’s like R and M expenses. Depreciation.

Al: That’s right.

Joe: Bonus depreciation.

A: Yeah, that’s right.

Joe: “I also thought about holding the properties in a trust so they’re not included in my future estate tax.” Well, what kind- he is gonna do a irrevocable trust.

Al: Yeah, he’s just again- just buzz words. Yeah.

Joe: Come on, doc. Come on, let’s go. “I look forward to the show each week and I tell all my friends about it. You’ll be primetime in no time. Thanks.”

Andi: While you were choked up, you missed the part that he asked “What unique aspects does real estate investing have over other capital assets?”

Joe: Nothing.

Andi: There you go.

Al: It does. Well, let’s see. So Doc Jerry, so here’s what I would say, being a longtime rental property owner since the decade of the 1980s, how about that? And we’re close to the same age. I’m a little bit younger. But at any rate so yeah, rental properties are great because when you buy a rental property, not only do you to get income, but you get appreciation. So you can sort of double up and you don’t even have to use all your own money. You can borrow money from the bank. You make a cash flow, and you have appreciation. In some cases, you can make quite a bit of money if you pick the property right, and you manage it successfully and so forth. But it’s a lot of work. It’s like running a business. Now if you just buy one rental property, maybe it’s not that big a deal, but it’s still a lot of work. There’s a lot to learn here on being a landlord and getting tenants. I would highly recommend you get a property manager, even though they’re probably gonna charge you 8% to 10% of the rent. I think that’s wholly worthwhile. You do get to deduct your expenses against rental income. But there’s something called a passive loss rule, which states that if your income is over $100,000, then it starts phasing out your ability to take losses against other income. And once your income is over $150,000, you cannot take any current losses. That loss just keeps- it just- it’s a passive loss and it carries forward.

Joe: His RMD is probably gonna be over that limit.

Al: Probably way over. Plus, I don’t know, what kind of income you have on the other big pile of money you have in your brokerage account. But I’m guessing your income’s over $150,000, so you wouldn’t get any current tax deduction. You could only net it against rental income. And by the way, you can’t take any of these deductions if you’re not gonna rent it. That’s called a second home, right? That’s a personal asset. So if you wanna at least take any kind of deductions, you’re gonna have to rent it out. Hire a property manager. I will say this, if you go to Kentucky, you have a property in Kentucky, you might be able to write off at least a portion of your trip, when you go to visit your grandbaby, ‘cuz you got a property there. There’s a lot of complex rules there, but yeah it’s a great asset, but it’s probably a lot harder than you would think.

Joe: Yeah. Jerry’s not doing it. Guaranteed.

Al: I wouldn’t necessarily recommend it unless you’ve done it and are really into it.

Joe: All right. Thanks Doc.

Doctor Jerry’s question originally aired in episode 426, and Don’s real estate question, coming up, is originally from episode 416, for those keeping score. Is real estate investing a pathway you should consider to boost your retirement income? First, go to the show notes and download 10 Tips for Real Estate Investors. Then, join Big Al Clopine, CPA for a free webinar on the topic on Wednesday, June 21st, at noon pacific, 3pm Eastern time. Find out what you need to know before you dive into buying rental properties, the pros, cons, and mistakes to avoid, the financials that determine what makes a good investment property, and how to minimize taxes through your real estate investments. Plus, get all your questions about creating retirement income through real estate investing answered live by Big Al. Just click the link in the description of today’s episode in your favorite podcast app to go to the show notes, download 10 tips for Real Estate Investors, and register for the Real Estate Income webinar, both free from Your Money, Your Wealth and Pure Financial Advisors.

Is Real Estate a Substitute for Bonds in a Diversified Investment Portfolio? (Don, VA)

Joe: Got Don from Virginia. “I am recently retired, sold a business in 2019 and another in 2022. I am semi-retired because I have a small real estate business that produces on average, $100,000 a year net revenue after taxes in the form of 11 single-family houses. We spend about a $125,000 a year, $25,000 of which is health insurance and costs. Just venting, that is not my question.” Okay. Didn’t sound like a question. “I had two questions, but I’m realizing now my second is dumb.”

Al: Oh, and there’s only one question here.

Joe: “First one. In addition to my rental properties, I have more money in real estate in form of QOZs.”

Al: Qualified Opportunity Zones.

Joe: QOZs. He’s fancy. “A Vanguard REIT index in my IRAs, my personal house, and a little in a private REIT. Overall, my asset allocation is approximately 46% equities, 46% real estate and 8% bonds. The equities are BRKB.” What’s that, Berkshire? “Some large cap individual stocks and broad market Vanguard ETFs. Obviously, I am low on bonds and high on real estate. But what would you all say about real estate? Is that an okay substitute for bonds? Reallocating would be a slow process.”

Al: Selling properties.

Joe: “Best dog in the world, 11-year-old, 3-legged mutt, Tacoma. No alcohol in a long time. Sadly.” Okay, Don from Virginia. Thanks for the question. So he’s got a ton of real estate. And he’s like, man, if I’m going to sell this real estate and reallocate it to bonds, that’s going to take me forever.

Al: Yeah, super expensive too, with taxes.

Joe: He’s got 11 single-family homes. So he has loaded up on real estate. He spends a $125,000 a year. The real estate is giving him a $100,000 a year. I have no idea how much money he has in the other portion of his portfolio.

Al: Doesn’t say that. I guess- so with what we know, I would say, well, first of all, I don’t think real estate is a great substitute for bonds because with bonds, you can sell and get cash the next day. Real estate you cannot.

Joe: It’s very illiquid.

Al: Illiquid. Now you do get similar income maybe. Maybe you get a little bit better income on real estate, depending upon where you’re located in the country, maybe. But maybe the income is somewhat similar, but the liquidity is not. So I don’t really think it’s a substitute for bonds. However, you know what? I don’t really know what your other assets are. And with 11 single-family homes, I’m hoping you’ve got a pretty good chunk of cash just for-

Joe: Maintenance?

Al: Well, for maintenance, for market crashes, for loss of tenants, for new vacancies. Blah, blah, blah, blah. I’ve lived all that. And it can be tricky. I think if you got plenty of cash for your rental properties and you’re basically almost covering expenses from the rentals, I wouldn’t worry too much about it, but we don’t really have enough information. I wouldn’t sell real estate to get bonds. If you feel like you want a little bit more safety and have a little bit more fixed income in bonds, you could sell some of your equities, maybe, but I don’t know. I mean, based upon what little we know about you, it seems like you got it pretty dialed in.

Joe: Yeah, I mean, he’s covering his fixed expenses.

Al: Yeah, that’s the main thing.

Joe: Right. And then do you have enough cushion? Do you have enough cash? Do you have enough reserves just in case something happened just as Al said?

Al: See here’s what can happen. So we have another Great Recession. Properties go down in value. People are losing their jobs. They can’t afford to pay the rent. So now you’re not getting a $100,000 a year. Now you’re getting $20,000 or zero or negative $10,000. Whatever the number is. And now at the same time, your stocks are down. But now you’ve got to pay your bills, right? So just be aware that’s what you have to think about here.

Joe: All right, great question, Don.

Can I Move Investments In-Kind From Inherited Trust to Brokerage Account? (George, KS)

Al: Wanna do George?

Joe: Yeah, let’s go to George. “Hello, Andi, Joe and Al. Thank you for sharing your knowledge about investing and planning for retirement. I feel like I’ve learned a lot by listening to you. I’m focused on saving for retirement, playing catch up after life put me back to zero 8 years ago. I’m now 60, single, have $200,000 in total investments, 60/40 split with $50,000 in brokerage, $50,000 in Roth, and $100,000 in my workplace Tax Advantage Retirement plan. I earn $55,000 a year and plan to work two to 5 more years. I save $20,000 a year.” He makes $55,000, Al.

Al: That’s- that’s a, that’s good. If you could do that.

Joe: That’s a pretty, pretty good savings right there.

Al: Maybe that’s- maybe that’s net pay. I don’t know how you do it after taxes.

Joe: Well, it’s all pre-tax. So, good for you. “I will have a school system pension of $2000 per month at retirement at 62, and it’ll grow a little if I work a little longer and I’ll take Social Security at 67, which is also about $2000 a month. I stand to inherit $450,000 soon, $60,000 in inherited IRA, and the rest is in a trust. I will add the inherited IRA to my custodian Fidelity and maintain a 60/40 allocation of US and international stocks with a small value tilt bond funds and a little real estate allotment.” This guy sounds like a CFP®.

Al: He does, yeah.

Joe: He’s got a little small value tilt. And a little REIT.

Al: Listens to our show maybe.

Joe: “My question though, it’s about the trust investments. Which are now a mix of mostly fixed income, 80%, a few individual stocks, and some expensive stock funds. I have no interest in staying with the bank investment arm where the trust monies are now handled. And as I understand it, through some internet researches or searches, I can move the investments in-kind to my Fidelity brokerage account. Does that sound right? My hope is to realign the mix to a 60/40 allocation after moving this inheritance to the brokerage account. That would mean selling all of-“

Andi: “- the extraneous-“

Joe: Thank you, “-expensive and repetitive funds the bank I bought for my deceased benefactor and buying a simple mix of index funds. Geez. Okay.

Al: Okay. Keeps going.

Joe: “Could you help me understand the inherited investments are handled on a step-up in basis and what I should expect for tax consequence. Also, about half of the fixed income portion is in municipal bonds and the other individual bonds with maturity dates in the years to come. I obviously am not in a tax bracket that justifies municipal bonds. And I have no interest in buying and selling individual bonds now or in the future, but rather will always use the core bond funds. Do I lose money if I sell them earlier than the maturity date and try to keep my portfolio simple? I know a likely response will be to find a fiduciary financial planner to help me out, and I likely will be giving your firm a call for a consultation as well as checking with some others.” Look at that.

Al: Yeah, he’s doing some research.

Joe: Don’t have to- well, he’s already given us a call. We’re going to answer his question and then-

Al: And then he’ll see how we do.

Joe: Exactly. We’ll probably blow this thing up.

Al: Probably.

Joe: Now I’m getting nervous. I got some business on the line here, Big Al.

Al: Here, lemme get Kleenex to dab your forehead.

Joe: “-calling and checking with some others when my nest egg grows substantially in a short time. But I enjoy handling my modest investments now and see continue to doing so as much as possible. Anyway, keep up the good work and look forward to hearing your response, George, in Kansas.” Okay.

Al: Okay. Well, first of all, let’s talk about when you inherit these assets. Yes, you can move them to your Fidelity brokerage account in-kind, that’s not a problem.

Joe: Easy peasy. Full step-up in basis.

Al: Yeah. Full step-up in basis means that whatever the value is when the individual passes away, becomes your new cost basis. So it doesn’t matter if the investments were bought for $50,000. Now they’re $100,000. Your cost basis is $100,000 because that’s what it would be worth or that’s what it was worth the date your parent or whoever this is-

Joe:- the benefactor.

Al: Benefactor. Thank you. I was searching for that word and it wasn’t coming. The date, the benefactor passed away. So when you sell ’em, like let’s say you sell ’em in the next week, there’s no tax consequence, right? Unless the stock goes up or down in that week. So yeah, that’s the good news about inheriting assets outside of a retirement account. You can sell those, you can rebalance and there’s no tax consequence at all.

Joe: But we’re assuming that it is just a revocable living trust.

Al: Yeah. And it is. Because there was a side follow-up.

Joe: If it was irrevocable-

Al: That’s totally different.

Joe: Yeah, totally different.

Al: Yeah, you’re right. Good. Good point.

Joe: Yeah. So easy peasy, George. You get the assets because you are the beneficiary. And then whenever the successor trustee settles the estate, then that account will go into your name and then from there you can just do an ACAT transfer right into your Fidelity account.

Al: That investment scope right over and you can sell ’em there. As far as the inherited IRA, so you can obviously buy and sell assets in that as well, there’s no tax consequence, but you will pay taxes on that because all money coming outta IRAs is taxable. As ordinary income.

Joe: Yeah. On the distribution.

Al: On the distribution. Yep. Yep. And you’ve got a- there’s a 10-year period where that has to be distributed nowadays.

Joe: Alright. Hopefully that helps.

Let Joe and Big Al spitball on your financial situation: click the link in the description of today’s episode in your favorite podcast app to go to the show notes, then click Ask Joe & Al On Air. Tell the fellas the relevant details like your name, age(s), and location. The name can be whatever you like; the ages and location should be real for a more accurate spitball. Also – when do you (and your spouse, if you have one) want to retire? How much do you think you’ll need to spend annually in retirement? How much do you make and save now? How much do you already have saved, and in what types of accounts (401(k), Roth, brokerage, etc)? And provide any other details that are relevant to your question. Them to help Joe better visualize your situation, tell us where or how you listen to YMYW, what you drink, and anything else you want to share – because the show would not be a show without you. And if you’re among the 13% of listeners who aren’t following YMYW, you’ll know when Joe and Big Al answer your question if you just tap that follow or subscribe button in your favorite podcast app. 

Tips for Taking the CFP® Exam and Building a Career as a Financial Advisor (Craig, St. Clairsville, OH)

Joe: Hey, welcome back. Joe Anderson, Big Al, answering your money questions once again. St. Clairsville? Claireville?

Andi: Clairsville. I’ve never heard of that one.

Al: Clairsville. Yeah.

Joe: It’s in Ohio. Never been there.

Al: Yeah. Me either.

Joe: “Hello, Joe, Big Al. My name’s Craig, 22 years old. I’ve been listening to YMYW for the past 3 years as I worked long hours in a manual labor job during the summers home from college.” So he’d be listening to this garbage. What’s worse manual labor or listen to this god-awful show?

Al: Well, if you got a horrible job that doesn’t require a lot of brain work, you might as well just torture yourself.

Joe: Oh, geez. It’s like life can’t be any worse.

Al: Well see, the good point then, is it’s all up from there.

Joe: Yeah. Got it.

Al: Let me get this financial stuff outta the way. I’ll make a couple good decisions when I look at it.

Joe: Because I don’t wanna do this manual labor much longer. “I learned a lot of information from that. I wanted to thank you. I graduated college in the beginning of May and now plan to pursue a career in financial planning. As part of our school curriculum, I’ve already passed a CFP® registered education program, and I plan on studying for the next 6 months to take the exam in November. I was wondering, If you guys could spitball on tips for taking the CFP® exam and advice on building a successful career, for all your young listeners out there. Thanks a lot and love everything you guys do.” All right, well, congrats Craig.

Al: Yeah, and I think that’s a good field to go into. I really do.

Joe: It’s tough. This field is like it’s, it’s the best and it’s the worst, to be honest with you.

Al: To be successful, it takes a lot, doesn’t it?

Joe: Well, you just gotta be really careful because you got old school brokers, right? And then they’re gonna look for associates. And so there’s going to be plenty of jobs for the young CFP® grads to go there. And they’re going to be an associate advisor and they’ll be like, oh, you’ll be my succession plan. And then the young CFP® will work there and they’ll be like, okay, well here, it’s hard for me as a 22 year old to go out and get clients. And so if I work with a senior advisor or broker and work in their practice, I’m gonna be successful going that route. Most times that never happens because all of a sudden the younger associate advisor does all the work and the senior broker is still making a ton of cash. And he’s like, why on earth would I ever wanna give this up?

Al: Right. And then he’s 60, 70, 80, 85, so it may take a while.

Joe: Another route you can go- so you can work in the custodial channels, which I think is a good route. So you can go to Fidelity, you can go to Vanguard, you can go to Charles Schwab and be a financial consultant. I’m not sure of the full career track there. But you get a really good learning base. But there’s a lot of transactions that happen there in regards to how many clients that you have to serve and you’re really not doing deep dive, comprehensive financial planning, from what I hear, I’ve never worked there.

Al: Yeah. Me neither. But yeah, what we hear then is to make your salary, it’s basically based upon the activity. So it is like you’re on a treadmill, which never lets up.

Joe: Sure. Or you could go independent, but at 22, that’s tough.

Al: No, that’s tough. No, I think you gotta work for somebody to get your learning.

Joe: You go to the big brokerage house, you can go to the Merrill, the banks. And then you can get on a team there. That’s a tough gig too.

Al: That is tough. Even like, like credit unions, tough.

Joe: Oh yeah. It just sucks. Yeah, it’s, it’s terrible.

Al: So you’re not, you’re not-

Andi: Are you telling him not to get into this business?

Joe: No. You just gotta do your diligence. I think the RIA space is a really up and coming space. And so if you can look at a fee only fiduciary advisor, that they have dedicated financial planning teams that have a full career track, I think that’s the direction that you might wanna look into. In regards to the CFP®, what I did to pass mine, I just took practice tests 1000 times over because the questions are tricky as all get out.

Al: Yeah. You have to know what they’re asking. And I didn’t do CFP®, I did CPA. I took a review course that lasted like 4 months and it was, it was a godsend, it helped me pass the CPA exam.

Joe: Yeah. I just took practice exam after practice exam, and then all the answers if I wanted to make sure that A, B, C, D or whatever that, the multiple choice is, I knew which one was right and which one was wrong.

Al: Yeah. Right, right. They do try to trick you.

Joe: Oh, they’ll trick you because they’re like, oh, well two are so close. But good luck. Let us know if you pass. This is a great, great career, right? We help people constantly, help them avoid terrible financial mistakes. So I don’t wanna discourage anyone from going into this field, but you gotta be careful of who- because things sound pretty good on the surface and there’s a ton of recruiters out there that like to get the young CFP® grads to go in and, hey, call your friends and family. Get the list of 1000 people, start cold calling, cold knocking and things like that. For the people that are successful, it’s probably 2%  that can do that, because you get your teeth kicked in 95% of the time. Unfortunately, I’ve marbles in my mouth. So I was-

Al: Apparently that’s from those days.

Joe: Yeah. So it helped me. I had thick skin and kind of a dumb brain, so… alright, see you next week. The show is called Your Money, Your Wealth®.

Andi: Help new listeners find YMYW by leaving your honest reviews and ratings for Your Money, Your Wealth in Apple Podcasts, and any other podcast app that accepts them.

Your Money, Your Wealth® is presented by Pure Financial Advisors. Click the “Get An Assessment” button in the podcast show notes at YourMoneyYourWealth.com or call 888-994-6257 to schedule your free financial assessment, in person at one of our seven offices around the country or online, a time and date convenient for you, no matter where you are. Chances are, one of the experienced financial professionals at Pure will be able to identify strategies to help you create a more successful retirement.

Pure Financial Advisors is a registered investment advisor. This show does not intend to provide personalized investment advice through this broadcast and does not represent that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the broadcast in the process of making a full and informed investment decision.



Pure Financial Advisors is a registered investment advisor. This show does not intend to provide personalized investment advice through this broadcast and does not represent that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the broadcast in the process of making a full and informed investment decision.

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.

• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.

• Opinions expressed are not intended as investment advice or to predict future performance.

• Past performance does not guarantee future results.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

CFP® – The CERTIFIED FINANCIAL PLANNER™ certification is by the Certified Financial Planner Board of Standards, Inc. To attain the right to use the CFP® designation, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. Thirty hours of continuing education is required every two years to maintain the designation.

AIF® – Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation.

CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period.