Today’s an exciting one for me, we have financial advisor Barry Gordon here who also happens to be my husband. We will be talking about all things pension, investing and protection. We aim to answer a lot of questions that business owners have in today’s episode.
Alternative Formats
Watch full episode on Youtube: https://youtu.be/zufDGiLGs2w
Listen to the full episode on Podcast: https://podcasters.spotify.com/pod/show/many-hats-of-business/episodes/013-Financial-Advisor-Barry-Gordon-shares-the-power-of-financial-advice-e2o1f0q
Episode Timestamps:
00:00 – Introduction and welcome
02:29 – Barry’s business owner journey and challenges
05:44 – The rewards of helping people as a financial adviser
07:18 – Two key pieces of advice for business owners
10:44 – The importance of personal finance alongside business
14:37 – Navigating pensions and investments
19:02 – Discussing the value of financial advice and associated costs
22:53 – The key building blocks of protection and wealth creation
27:55 – The power of processes in business
30:24 – Barry’s parting message on consistency and getting started
32:19 – Book recommendations
Book Recommendations from a financial advisor
- The Psychology of Winning by Denis Waitley: This audiobook had a profound impact on Barry, helping him shift from a negative to optimistic mindset. It covered the power of self-talk, body language and attitude.
- How I Raised Myself From Failure to Success in Selling by Frank Bettger: Barry found this book fascinating for its insights on overcoming objections and career changes, even if a bit dated in its American insurance sales focus.
Financial Advisor Barry Gordon Shares the Power of Financial Advice
Welcome to this episode of Many Hats of Business, the podcast! As you can see, if you’re watching on YouTube, I am actually accompanied in real life today. The reason for that is an exciting one – I have brought my husband, Barry Gordon, onto the show. Barry is a chartered financial advisor and has been running his own business successfully for 31 years. Not only does he have that wealth of experience to share, but he also helps other business owners, so he’s seen many of their challenges too. I thought it would be really valuable to have him on to talk about his journey and insights.
We’ve been known to have regular ‘boring’ chats about financial advice
Now, you may have heard me say that Barry and I have really boring conversations because, as a business mentor and financial advisor respectively, we probably talk about tax more than most people do in a lifetime! But we thought we’d bring you in on our scintillating tax chats. So welcome to the show, Barry!
Barry’s Business Owner Journey
Barry shares that when he first started in financial services, his biggest challenge was understanding how to get clients. Even though there were files of historical clients, he had to learn that the key was simply talking to people and building relationships. As his business grew, the challenges evolved into managing the increasing workload and compliance requirements. This meant bringing in staff, which presented its own difficulties in terms of timing, affordability and finding the right people.
Barry reflects that all businesses struggle with staffing challenges. Even when you think you’ve seen it all, new issues crop up. It’s something his own clients grapple with frequently too. Government rule changes, like increases to minimum wage, also impact businesses significantly even if well-intentioned. Business owners are the ones who have to adapt and keep things working.
The Rewards of Helping People as a financial advisor
When asked what he most enjoys about being in business, Barry shares that he genuinely derives satisfaction from helping people, even if it sounds cliché. He believes in a “double win” – if he can help clients win, they’ll help him win, and together they’ll become wealthier and enjoy better lifestyles. His role is all about trying to make people wealthier.
Two Key Pieces of Advice from a financial advisor to business owners
Barry offers two key insights he wishes all business owners knew:
- We tend to overestimate what we can achieve in the short-term, like a year, but underestimate what’s possible over a decade. This leads to putting immense pressure on ourselves. Barry believes we need to avoid panicking about the short-term and just keep taking steps forward.
- Too many business owners constantly reinvest in their business without taking some of the profits and putting them to work elsewhere, like investments or pensions. You need to be constantly earning money and have multiple income streams working for you.
The Importance of Personal Finance
Tanya and Barry discuss how in their respective industries, people often focus on building up an income stream or “passive income.” But there can be a lot of ongoing work involved that isn’t always recognised as work, especially if done via social media.
They agree it’s crucial for business owners to look at their bigger financial picture, including personal finance and life goals, not just their business. Tanya shares how when she and Barry first reviewed her pension, she struggled to articulate how much monthly income she wanted in retirement. But that initial conversation, even if the figures weren’t perfect, got the ball rolling. Small steps over time lead to huge growth in wealth.
Barry emphasises that even his most financially savvy clients, like investment fund managers, still need guidance on things like protection, wills, and powers of attorney. His role is to look holistically at a client’s current position, goals, and gaps in their plan.
Navigating Pensions and Investments
Tanya asks Barry to share his perspective on pensions and investments, as some people feel nervous about potential drops in value. Barry explains that in the past, upon retirement, pensions had to be converted into an annuity. This created risk if markets fell right before retirement.
However, rule changes have brought more flexibility in how pension benefits can be taken. Barry advises regularly reviewing pension investments and considering de-risking as retirement approaches. While market volatility can be unnerving, he stresses that over the long-term, staying invested has always yielded better results than leaving money in the bank.
The key is having a well-diversified portfolio across asset classes and geographies. This mitigates the impact of any one holding or market declining. Barry likens investing to owning stakes in hundreds of great companies that are working hard to grow. There will always be some losers, but the winners more than compensate.
The Value of Financial Advice
Tanya and Barry discuss the hesitancy some people feel about the cost of financial advice. Barry shares that in his experience, the cost of not getting proper advice is far higher in the long run. A good adviser will build a long-term relationship, understand your circumstances, and continually adapt your plan. Their expertise allows them to maximise allowances and keep you on track through life changes.
While advice does involve costs, Barry aims to be fair and factor in a client’s overall situation. He’s willing to be flexible to get the ball rolling, especially for client referrals, as he’s built his business on word-of-mouth. Ongoing fund management is also crucial to adapt to changing market conditions.
Key Financial Building Blocks
Barry outlines two key areas of financial planning:
- Protection: This includes life and critical illness cover. Barry stresses that our most valuable asset is ourselves and our ability to earn income. Many insure their house, car, phone, but not their own life. He’s seen first-hand the huge difference having proper cover makes during the worst of times. It’s not pleasant to think about, but brings immense peace of mind.
- Building wealth: This is done through pensions, investments, and using tax allowances. Pensions offer unmatched tax benefits, especially for limited company owners. Barry himself maximises his allowances each year. By viewing investments as owning stakes in great companies, it removes the fear factor. Downturns are inevitable, but markets have always recovered. Having a well-diversified portfolio and expert guidance makes riding out volatility much easier.
The Power of Processes
Tanya and Barry touch on the importance of processes in business. Barry credits his time at St. James’s Place (SJP) for instilling discipline around processes. He admits that previously, he was the “weakest link” in this regard. But over time, he’s seen the enormous benefits of defining roles, delegating effectively, and having regular team communication. It reduces stress and allows the business to function smoothly.
Parting Thoughts from financial advisor Barry Gordon
Barry’s key message is that consistent steps over time lead to incredible results. He’s seen clients go from modest salaries to million pound portfolios by staying the course. Wealth building is not about deprivation, but spending less than you earn and putting the rest to work.
He encourages listeners to find a financial advisor they can build a long-term relationship with and trust to guide them. Barry himself is passionate about working with younger people just starting out, to help them build good habits early.
While markets will always fluctuate, having a trusted financial advisor to provide perspective makes an enormous difference. The cost of advice is small compared to cost of lost opportunity. The goal is to get the ball rolling and adjust as you go. With some prudent planning, we can all look forward to a more prosperous future.
Tanya and Barry wrap up by stressing that while personal finance conversations might seem “boring”, they are truly life changing. Being intentional about your financial journey, both in business and personal life, is the surest path to success.
Book Recommendations from a financial advisor
- The Psychology of Winning by Denis Waitley: This audiobook had a profound impact on Barry, helping him shift from a negative to optimistic mindset. It covered the power of self-talk, body language and attitude.
- How I Raised Myself From Failure to Success in Selling by Frank Bettger: Barry found this book fascinating for its insights on overcoming objections and career changes, even if a bit dated in its American insurance sales focus.
If you enjoyed this podcast be sure to check out the other episodes available.
