Financial Planning for a Life of Ease with Tammy Trenta Knowlton, Founder and CEO of Family Financial
About this episode:
Founder and CEO of Family Financial, Tammy Trenta Knowlton joins us on the She Built It™ Experience today. She shares her knowledge of finance, building wealth, and how she launched her company after 25 year experience helping families and business owners develop strategic financial and tax plans so they enjoy a life of ease, happiness, and abundance.
Topics Discussed:
Tammy’s advice on how to build wealth and achieve financial independence
Her knowledge on new technologies and opportunities in the financial industry
Her goals for helping other women to take leaps in their career and business
Tammy’s thoughts on leadership and how she empowers and inspires her team
How she finds and lives her joy
About Tammy:
Tammy works with accomplished individuals, families and business owners and families to develop strategic financial and tax plans. Her skill, insight, and 25 years of experience have shaped her service offering focused on navigating a full range of life events, such as retirement, divorce, death, and business sales/transitions
Tammy offers investment management, personal and business planning, tax planning and return preparation, bookkeeping, bill pay and estate planning.
About Family Financial:
Information overload is hindering people's ability to proactively manage their finances. We equip modern families and business owners with a forward thinking team that consolidates, streamlines, and creates innovative financial and tax solutions so that they enjoy a life of ease, happiness and abundance.
Resources:
Click here to read a raw, unedited transcript of this episode:
Thank you so much for joining us today, Tammy. She built it empowers you to experience a life and business that you crave. The question I'm always asked is how? Give us some tips for how you have built the career and life that you crave, how you've been able to do that and share with us what you do?
OK, well, I can start with what I do because that's the easiest part of the question. So I help accomplished families and business owners navigate all things financially in their life. So that includes investment management, financial planning, personal financial planning, business planning. We will do their tax return.
I'm sorry, can you say that sentence again and is there any way to silence? She'll have a day when the notification.
You've got to figure out how to do that. Oh, well,
Can you close out the email? Or will that close out your. No, it's funny because I had someone else have that same. Someone else had that same question like, how do I not turn off my sound but not hear the notification? Yeah. So you're saying who you are and what you do?
Yeah. So what me and what my firm does is help people with all things financially. And so what that includes is investment management, personal financial planning, business planning, strategic tax planning and preparing tax returns. We do bookkeeping, we do bill pay, you know, even advise on mortgages and lending and help package those so that, you know, clients have a more seamless process. That seems to be quite a pain point many times for a lot of clients that I have. And I just want to simplify their lives. That's the goal and help them be financially better off using us than without. How did I come into this? Well. I think. The smartest way to get to a point where you're ready to launch is by working for other people. And throughout that time, and for me, it's been over twenty five years, you learn. You pick up best practices, things that you would not do. And I think I got to a point in my career where. I didn't find that there was anything that existed that was in line with how I envisioned servicing clients. And I got to a point where I felt like I had enough confidence where I could do it on my own. I think what has held me back for so many years is that fear, and I think that such a common feeling that everyone shares when they're taking a leap. And so that took me a while to overcome. But once they did, it was really empowering.
Good for you, and I love that advice where if you don't see something that you know, you could create or make better, that you made the leap and just decided to do it.
Yeah, yeah. And I think, you know, for so many of us, at least, I know for me. You'll take things in take things in, maybe you're not aligned and then one day you just have a switch and that light switch, and once that switch happens, you just can't go back and all of a sudden you just take those little steps every day to get to the end goal. Because if you think about the end goal, it can sometimes feel very overwhelming. And so just taking it step by step and, you know, giving yourself a break and not trying to put so much pressure on yourself just by knowing that you're headed in the right direction.
That's great advice and you're a marathon runner. And I am too. And it's those little steps. It's really that daily training. Exactly. And I'm sure what you do has never been more important as we come out of COVID, as we go through COVID, as people buy and sell homes, as companies come up or are leaving the market as people are entering work or leaving work. Share with us a little bit about that landscape.
Well, it's been an interesting two years, hasn't it? I think that at least where we are now. I think people are really craving connection more than ever. And I feel like perhaps we took it for granted two years ago. And I think that. There's also so much information coming at us, so much more than I've ever seen, and that can be so confusing and overwhelming for people. And I mean, even in my own experience, I just there's so many things I can explore and that and you really have to. I think there's a period of time where you avail yourself to all of it and then you sort of take it in and say, OK, what is my core? What are my core goals? What are my core strategies? And what's the best way to navigate that? And I think. I think clients crave simplicity, and they don't want to be the person who has to handle, you know, all 25 things financially in their life. Now some of them do, and then that's OK. But I think as you go through life and you know, I'm sure you can relate to this, but life just gets more complicated. And when it does, you just get to a point where you know you need help. And it's hard to find the right kind of help. I think it's hard to find someone who really gets you. And for me, I want to feel like if I meet somebody that they're a fit for me as well as, you know, as being a fit for them. But when you find that right fit, it's almost like a marriage where you've got to work at it and you know, you're always soliciting feedback. What can we do better? You know, and in our industry, you know, there's something called a fiduciary standard, and some people know about it. But I think for the most part, a lot of people don't. And what the fiduciary standard is is basically as an adviser, you have a legal obligation to put your client's interests first. And I like to consider myself a relentless advocate for clients that maybe represent, like less than five percent of the overall financial industry. And if you go to a major bank or a wire house or, you know, any of those bigger firms there, they don't they're not held to a fiduciary standard. They don't have that legal obligation. They're held to something called a suitability standard, meaning that if two options are equal and one puts more money in your pocket, it's OK to recommend that. And I've always been, you know, as a certified financial planner, a firm believer, if you just do right by your clients and you know, the success will come. But I think it's hard to really sort through, you know, the landscape of advisors and, you know, realize you know, what is wrong in our industry and what can we do to make a difference in people's lives and help them be better off than they were before without that conflict of interest?
It's so true, and I think finding the right fit is more important now than ever, because I think people have kind of lost patience with working with someone that's not a good fit for them.
I think you're absolutely right and you're so right about the amount of knowledge and information coming our way. I mean, one of my goals for this year is to simplify because, you know, you have to take in everything and then think, OK, these are the two or three things that I'm going to focus on that I think are the best fit for me and the right fit right and then move forward with those. But you're so right. There's never been a time where there's been just so much information and then experts coming at us. But to your point, you have to find the right expert. That seems right. And is it? And that is a right fit for you?
Yeah, exactly. I mean, there are a number of influencers that are on TikTok and Instagram that are self-proclaimed financial experts that don't even have a financial background. And I mean, these people are getting the ear you know of, you know what? I would say that the 20 to 40 year olds. And so I get all the time, Hey, this was on Tik Tok. Is this something we can do? And and, you know, sometimes there is a good nugget in there, but. You know, more often than not, it's it's a limited context, and I think what's really important is whoever you rely on for advice has some life experience, has been around and knows market cycles and knows the different options that are available and are just pigeonholed into one thing because that's the only thing that they can offer,
Especially in the financial industry.
Yeah, that is
What is one piece of advice that you can give us for how someone successfully grows and achieves wealth.
Well, I think the most important aspect of that is. Instilling a sense of financial literacy, and I think that that is something that we should be doing for, you know, our youth. When they get to a point where they're out of high school and about to go to college, nobody teaches that. And as a result, it's really easy to be on campus and see the credit card and think that that credit card is great until you maxed out your balance and you're at a six percent interest rate and that puts people behind the eight ball early on. Student loan debt is another thing that, you know, I just look at from a financial perspective, and I think the best question to ask is what? What, what are your goals? How do you want to get there? And you know, what is the downside of not making decisions? I don't think a lot of people are forward or future thinking, and I can say this from my own experience. When I was in my early 20s, I didn't want to for one K. I thought, What a terrible deal. You can't even touch this money until you're almost 60. Why do I need that right now? I need my money today and getting into the habit of just setting aside a little bit over time that can be so valuable. And there's the power of compounding growth that, you know, maybe the first 10 years, you don't even see it, but once you do, it takes on a life form of its own. And I wish that more. I wish that we did a better job as a nation to educate the younger people. I think that would make a huge impact that would make us less reliant on the, you know, government benefits. And it would empower young people, and I think it needs to start there.
I agree with you. Working and making money feels good, and I had a father who put the fear in me that if I didn't pay off my credit card every time something happened, I don't know what was going to happen. And at the time, I didn't understand it. But now I really am so grateful for it and I think about my twins being eight. You know, you start to think about how you can teach them these things? What apps are out there that will teach them? I mean, other than allowances and saving money and those kinds of things, it's like what kind of tools and technologies are available to start teaching our kids these things at a young age?
Yeah, I mean, I have, I mean, my son is about to turn five. And he I try to teach him, well, I think the first thing is teaching him about work ethic, you know, which I think is maybe easier for people, especially now with so many families that have remote jobs and they're working from home and your child is in your house and they see working and and why you need to work like this is the house we live in. This is the food we put on the table. And then it's not just this free situation, like there's effort and the skill that needs to go into it. But, you know, I think the allowance is great and teaches kids how to save. I have a nephew who wanted to start his own investment account, and he was 16 years old. And I said, you know, a great thing to do would be to just. Take a little bit and put it in digital currency and listen, if it goes to zero, it's not the end of the world, but you can afford the risk when you're that young. And so teaching them about making those decisions means it can also backfire. You know, I will say one of the challenges with having everything so accessible to the average person now is the risk that someone can go on Robinhood and trade their own stocks and borrow and lose all their money. And that wasn't really available 20 years ago. And so I think it's all the more important to do a job, do a better job of teaching people, you know, the ramifications of those types of decisions because it's not in my mind. Gambling is not what we do, right? It's looking at probabilities, finding a predictability of returns and helping people to meet the goals that are meaningful for them. And if you can do that and you can accomplish that and you can achieve financial independence, then if you want to take a little bit and speculate here and there, then that's OK. But don't compromise your financial independence if you're not 100 percent sure what you're doing. Pick a tiny bit that's not going to change your life for the worse.
And this is a little bit along the lines of what you just said. What is one mistake or pitfall that you have seen people do as it relates to managing their money and growing their wealth?
Well. There is something called the overconfidence bias. So I'm not sure there's a lot of behavioral terms in finance, and the overconfidence bias is something that we are all susceptible to. But oftentimes I'll meet with a client and they'll say, OK, you know, we really want to grow our wealth. Let's do the financial plan and I'll do the projections for them. And they look great. They just stay on track, and all of a sudden their dream home pops up. And so they really want this house. And OK, let me run the numbers. Let me see if this can work. How can we make this work for you? So I'm on their side like, I want them to have what they want, but I also want them to think through what's the worst thing that can happen? Like, reverse sell me on why you wouldn't do this. And as long as they're OK with the worst situation, then it's I feel like it's fine to move forward with, you know, pushing the envelope. But when the markets are good and they're making money and they're trading up into a bigger home with a bigger mortgage, you know, could someone lose their job at some point? Yes. Could the stock market crash it down by 50 percent at some point? Yes. How do you handle that? Are you prepared to mitigate all of those risks? And so, you know, I think my job is really just being a sounding board for them and helping them to achieve their goals. But like another example I'll give is I had a client who was just dead set on buying a cabin and they wanted to buy a cabin. They have this money set aside, and the cabin that they liked was going for three or four hundred thousand dollars over asking. And so, you know, for that person to put the down payment and have an 80 percent loan when it got so bad, I'm like, what is the worst that can happen here if we have a downturn in the real estate market and now we're in a second home? Right. So it's not this urban area, what happens? And, you know, I think that was enough to have him think about making that decision, and he ended up not moving forward with it. So, you know, you get caught up in all of the exuberance and excitement, and a lot of younger people haven't been through those tough economic times. They will happen again. And I think part of what I see my job is is keeping you safe, insulating you from that so that we can handle and withstand the downturn. I would say if we can do that, let's double down on the downturn and make more money on the way up. But, you know, every client is different. So it's really a very personal conversation that you have with clients. But if that was one theme, it is people feeling overconfident and not thinking about, you know, what is the worst thing that can happen with this major financial decision?
And you're right, sometimes we do need that voice of reason.
Yes, I think so. And it's not always what. People want to hear, and I will always say, listen, this is your money. I'm here for you. I'm just going to give you both sides. And at the end of the day, you know you'll make your own financial decision.
So really great advice. In your experience, what differences do you see in the way women and men view wealth? And is there any advice you can give on that?
Well, as much as it pains me to say this. Men are definitely bigger risk takers. The majority of the business owner clients that I have are men. And I think women are safer, they're more responsible. I think that, believe it or not, they're less emotional about it, they're like trying to make it big. So I do feel that women have an element of grounding, and maybe that's why it's taken me so long to launch. My company is definitely a practical thinker. I'm not a risk taker. And I think that that benefits women in a lot of ways. But you know, it can be limiting.
That's why, you know, I try to empower people to make that leap if they're really ready. Yet, you know, because I completely understand not making the leap if you're still tentative, but you are right. There comes that moment where you know, and it's interesting that you say that women are not as emotional because in my experience, when I'm talking to a contractor or someone that I have called them out on their own a mistake and they don't want to admit the mistake. Oh, you're being emotional. So women at times can be, you know, it was said that we are emotional, but it's interesting that you say in your experience that you find them to be less emotional when it comes to that type of transaction
At times when the market is down. Women tend to feel nervous and they want that reassurance. But they're not making radical decisions. And so, you know, to your example about the contractor men, many men certainly don't like to be called out on their mistakes, and it's more of a projection of their insecurities by saying that you're emotional because that's just a I think that.
And that's been my experience, but it's a good thing because I think, am I the one that's being emotional here? If you're calling me emotional. So it's interesting that you bring that up as it relates to managing money and finances.
Yeah, I would love to see more women taking the career leap. And, you know, I meant now that I've been down this road. I know how it feels. You know, we're never going to do everything perfect, right? But you have to be OK with, you know, things that maybe you would have done differently because you never learn unless you encounter those challenges, make you better for it as long as you're open to learning and growing from it. But I can. I met with one of my girlfriends who I hadn't seen in a few years, and I just could tell that she's ready. Mm-Hmm. She's ready. And you know what is holding her back? And you can just tell. And so, you know, like I said, I would love to see more women. I would love to help more women empower themselves to take that career leap when they feel ready and to face their fear and think about it again. What's the worst that's going to happen? This doesn't work out. You go back to another job. If you're going to lose your life savings, and that's a different story, but let's navigate it so that you don't, you know, there's always a way. So, you know, I'm really interested in that and helping women to identify that when they're thinking of launching.
And that's why she built it to exist because we all crave something. And yet, most of the time, it's different. And I love that your focus is empowering women and men to make those leaps from a financial perspective.
Yes.
We're all constantly building and creating our teams, whether you have a five percent team or you oversee hundreds of people. How do you approach managing your team as it relates to growth and what aspect or trait of leadership do you think is the most important?
That's a great question. Leadership is probably the most important component of owning your business when you have employees. And I think inspiring them, making them feel like they're a contributor. Giving them ownership and empowering them to make decisions. You know, I don't like to be micromanaged. And so I think that there's an art form to hiring the right people. Are they aligned? Is this just a job for them or is it something they're passionate about because you can weed out candidates that are just there for the paycheck. And if that's the case, then they may not be the right fit. But once you have your team, you really need to. To to foster those relationships and invest in those relationships, especially now in today's job market, where, you know, if you're feeling underpaid and you're having to go into the office five days a week, well, there's a job next door that will allow you to be remote that isn't going to make you have, you know, a certain workweek and punching a time clock. So there's just too much competition right now to be a micromanager.
That's so true. I mean, the options now for four different ways to work and why shouldn't we wake up? I mean, you're right. No one's perfect. You know, and no days are going to be perfect. But why shouldn't we wake up and love majority of the things that we do? Yeah. You know the things that we're passionate about.
And another component of that is being humble. I think that a certain amount of humility as a leader really helps you connect to, you know, the people that you work with and have different skill sets. I mean, there's things that I'm not going to be great at, and so I want someone who's great at that and that allows us all to learn from each other. So, you know, having a team where you've got different skill sets and different strengths and weaknesses is really, I think, how you build. And it can't just be for financial reasons, it has to be part of a culture.
If you are a longtime listener, you know, I asked this question at the end of every show because I believe it's the joy in what we do that will carry us through. Magic happens when we focus on the part of ourselves and our business that brings us joy. What is one tip that you can leave with us today about how you find and live your joy?
The best way to answer that question, and I think it is regardless of whether it's in personal. My personal life or my business life is feeling like you make a difference and that could be feeling like I get through to my son on, you know, learning how to share and give and appreciate what he has to, you know, having a client hug me because I helped them so much and they were so glad that they met me. And I, you know, they're grateful for me. And that's when you feel like you're making a difference and you're on the right path.
You can find me on LinkedIn under Tammy Trenton Knowlton.