This is Ideas by Mike™ (Ep. 10)

Welcome to Ideas by Mike, the podcast with Mike Milligan, where you will find one-of-a-kind financial planning advice for your one-of-a-kind life. With over 22 years of experience as a certified financial planner, Mike shares experiences and advice on crafting simple, easy-to-understand financial plans based on your values and priorities. He believes that taking a personalized approach is the best way to prepare for the future and give meaning to your finances. So follow along as Mike, and from time to time his guests, explore different strategies and tools that could help you secure your financial future in retirement. Now on to the show.

Welcome to Ideas by Mike, the podcast where we dive deep into the world of finance, Guided by industry experts. I'm your host, Wendy, and today we are taking a bit of a recap on the episode. We're going to go back and explain Mike's story. Now, he's not just a financial planner but a true financial coach with over 25 years of experience in the industry. Mike Milligan, who is a CFP, has made a name for himself as a dedicated coach for finance professionals, helping them navigate The ever-changing landscape of the insurance system and beyond.

Well, thank you, Wendy. That was a mouthful. I mean, I feel like we could just end it right there and go because—

All right. Thank you for coming.

Thanks for coming, guys. I am excited to share this journey, though. We've done that over the first 9 episodes of this podcast, but I really look forward to just kind of summarizing those and diving deep into how we can make an impact in someone else's life.

So, as a recap, let's start from the beginning. Your journey into the world of finance began early, didn't it?

It did. My journey started around the dining room table when I was 11 years old. My grandmother, who didn't have a bank account, would help me— would ask me to help her count her money. See, she became an entrepreneur late in life when my grandfather unexpectedly could no longer work, and she had to find a way to pay the bills. And so she, she was a great cook, by the way, just an absolutely phenomenal cook, well known in the little town where we grew up. So she started the business selling collard sandwiches, which is just simply 2 pieces of fried cornbread with that great stinky vegetable collards mix between the 2. It was unique and delicious. And I mean, just absolutely something sought out. She sold them to local workmen that had worked with my, with my pa, and later at festivals in our hometown of Laurinburg, North Carolina.

So that was really smart. That was a way to, you know, turn to what you're good at and make a business out of it. So she was your first client?

She was. I mean, not only was she an amazing client, but we basically joined this entrepreneurial world together. I mean, it was, it was innovative, right? I mean, if you think about it, right, innovation comes out of desperation sometimes. And she mixed a couple of things that taught me, like, I mean, it was a, it was a lesson in business school, right? from a lady who had a 3rd grade education, but somebody that was, you know, truly my hero because she took this amazing work ethic that she had and she took love that people had for her and she blended it together and was able to create something that brought me along, that gave me an early lesson in what business is like. So, yeah, looking back, I would say she was my first client. Because from those early days, I learned the, I learned the importance of managing money with purpose. I think that's where my entrepreneurial, my entrepreneurial spirit also came from and where my understanding of finances took root. So my philosophy of financial planning really began with her business and has moved and has moved and evolved into a modern financial planning firm. With a strong focus on making a meaningful impact.

So, from counting pennies at your grandmother's table to becoming a certified financial planner with over 25 years of experience, how did that early experience shape your professional philosophy?

So, it instilled in me the importance of counting every dime and every nickel and every quarter, and then just making sure they had a purpose. See, my grandmother taught me some tricks, right? I'll tell one quick story about my grandmother. is a couple of things that my grandmother didn't have was an abundance of money, but she was resourceful. And so when people would pay her, she would want to shine up the money to make it look as presentable as possible. Right. Because she didn't have a lot to go. So we used to take— do you know what Texas Pete hot sauce is, Wendy? Have you?

No. I have a feeling it's hot sauce, though.

It's hot sauce, right? It's a brand called Texas Pete. But if you have a— if you have a penny, right, that has like some wear and tear on it, And if you put Texas peat on it, it shines it up like a brand new penny.

Wow. Okay.

And so like that importance of not only counting every dime, counting every quarter, but it was also the presentation of that money back when you recirculate it. That was important to my grandmother. Right. And so, yes, right. I got this unique purpose from her. You know, it's— but it's not just about making money. It's about giving the money purpose, whether it's to provide for a comfortable retirement, secure your children's future, or give back to the community. See, purpose-driven, one-of-a-kind financial planning, and then how you present it back out like a shiny penny is the cornerstone of my approach.

After the early lessons, how did you transition into the world of professional finance?

Well, see, I knew that I wanted to help others navigate their financial lives. So that was something my grandmother— it was a— it became a passion of mine. So I started working for major banks and small investment firms to learn the ropes. You know, everybody's got to cut their teeth somewhere. Over the years, I did earn my Certified Financial Planning Professional designation. I actually earned that in May of 2002. I also earned the Accredited Investment Fiduciary destination by going to a class in Myrtle Beach, South Carolina, which was an amazing place when I was 25 years old. You know, these credentials combined with like my real-world experience, they have enabled me to provide comprehensive financial planning services. Almost a decade ago, I decided though it was time to start my own firm. It was time to step out. And focused on truly personalized financial planning that was not being offered at the major firms.

So now, you're well known for being a trusted advisor, which is, you know, hard to come by. But beyond the technical skills, you emphasize a holistic approach to financial planning, connecting it with health. So, can you tell us more about that?

Well, absolutely. So, this equates back to my story, right? Everything that that I put into my business comes from my personal experience. I think I'm living a one-of-a-kind life, but I also think my clients are living a one-of-a-kind life also. You know, after, after a career in baseball, not only from playing and coaching, I had accumulated some weight. You probably thought I was getting ready to say accumulated some wealth there, but I—

I wasn't sure where you were going. I was like, you had me on the edge of my seat, Mike.

I accumulated some weight. Matter of fact, I had gained about 10 pounds per year from the time I started in the financial planning field in 2002 all the way up to 2019. And if you, if you, if you do that math, 10 pounds a year for 17 years, that's a lot of weight.

It is a lot of weight.

I was— I topped out at about 350 pounds. And, and I realized that I had to change. And so I had a doctor client. So Dr. I, and the only reason it's Dr. I is because he's originally from Kenya, and I cannot pronounce his last name.

Okay.

So he just said Dr. I. Dr. I was a client of mine, but he was also my doctor. And Dr. I said, Mike, you need to actually, you You need to plan your health like you plan my financial plan. He said, you are so detailed. He's like, Mike, but I could tell you right now, you will not be around for the end of my life if you don't start taking care of your life. And so I took some— that actually happened in 2018. He gave me 6 months. He said, Mike, if you don't make change, we're going to have to make some changes in your life. He's like, I'm gonna give you 6 months. I want you to come back with a plan for me about what your health is. And I want to see some results. And so I was 350 pounds at that checkout. When I came back 6 months later, I was like 328 pounds. But I had a, I had a written plan about how I was going to deal with my health. I, I became a vegetarian.

Right.

And I didn't come— and there's a lot of health benefits for being a vegetarian. But one of the reasons I became a vegetarian was it was pretty simple for me. There are not many fast food restaurants that offer vegetarian options. There's not many restaurants in general that you could go to that offer vegetarian options. I mean, our, our fast food industry has become, you know, much like the investment world has been about abundance, right? You know, as much as they can give you, right? from a portion size, calorie count size. You know, their job, right, is to sell you convenience. And that's often not from a healthy standpoint. So I became a vegetarian. I committed to working out 5 days a week, and that started with walking, you know, 10,000 steps a day, eventually to getting into the gym where now I go to Orangetheory Fitness, which is a high-intensity interval workout training. Here's the thing. is your health is really the only thing that's going to last. And so what I learned when I got a hold of— when I got a— when I got in touch with who I am from a wealth, health standpoint, is that it's the only thing that's going to allow me to be all in. Right. If I don't have my health, I can't travel like I want to, at least comfortably. I couldn't travel like I wanted to. I couldn't do the hikes. I couldn't do the cruises. You know, I couldn't go experience the world. My life was going to be cut short. And what I, and you know, what I've really learned is that the commitment to being all in is not just a business side, but it's also my life side. And so it just, that, that transformation didn't just change my body, it changed my mindset. I am all in on life and I'm all in on impacting others. And I realize that achieving success in any area of life requires a commitment to health.

And it's so true. If you don't have your health, you really don't have anything. But congratulations to you. What an incredible feat. And I think it was so smart to go for the vegetarian stance based on the fact that you can't really eat much fast food. So—

And, you know, and that is like that one-of-a-kind financial plan, right? You have to come up with strategies with your money, right, and your life, right, that just that just puts some barriers, right? You know, the whole idea, you know, of limiting yourself gives you unlimited opportunities. And it's the same thing like with your money, like with the health, right? Not being able to go to McDonald's. And I love McDonald's, by the way. I absolutely love what they, you know, from a, from a company standpoint, the profitability, from an investment standpoint, I don't think they're great for my health. Right. But I think they're a good investment. Right. But, you know, just when you go— that whole idea that when you can achieve good health, it's really the same as achieving financial success. It just takes discipline and consistency and a focus on long-term goals. You know, from a practice standpoint, from a financial planning practice standpoint, I decided to integrate health assessments into the financial planning process. It's so important to me. I wanted to show— share with my clients a tool that will help them accurately predict their lifespan and their healthspan. And so, like, Ideas by Mike, the dynamic financial planning firm who believes that you should live a one-of-a-kind life, and we create one-of-a-kind plans for that, partnered with the one-of-a-kind company called Halo by Genevity, which is a partnership between 23andMe, amazing scientists from the pharmaceutical industry and really, really smart PhDs from the University of Chicago and other places to be able to put in that health assessment, that lifespan and healthspan into the financial plan so that we really could have one-of-a-kind plans. And then I went further in our, in our, in our financial planning practice by offering clients a health coach Uh, Stephen Gwynnup. Uh, she's actually— she actually calls herself the Wealth Coach. W-E-L-L-T-H. Wealth Coach. Um, she actually does quarterly webinars for our clients. And, you know, that approach allows us to look at our clients' lives holistically, ensuring they're not just financially secure, but they're also healthy and happy.

Wow, it really is like everything all in one, Mike. I'm so impressed. So, let's dive into your 5 critical areas of financial planning. We've got the tax planning, retirement income planning, investment planning, long-term care planning, and legacy planning. You've gone into great detail about these, but let's walk through each of these.

Okay. So, and the listeners, just bear with us here, right? Because this is, this is What makes us so unique, right? This, this process, these 5 elements Wendy just said, really make up the one-of-a-kind financial plan. We create, we focus, we laser focus on these areas for very specific reasons with very specific tools. So the first is tax planning. The, the reason we focus on tax planning is because it's the largest expense you'll ever have in your life. It's bigger than raising a child. It's bigger than paying for a mortgage. It's the largest expense you'll ever have in your life. You know, if you have— if you make $100,000 a year and you do that for 40 years, that means $4 million will pass through your hands over your life. But if that happens, the government is going to ask you to please give them— not please, they're going to demand that you give them between $800,000 and $1,000,000 of that. Right. The largest expense you'll ever have in your life. So the tool we use for tax planning is Holista Plan. Holista Plan will take your tax return and see if there's any inefficiencies. CPAs and tax preparers' jobs are primarily to take the information you give them Put it on a paper, right? It's called your tax return, and they're going to send that electronically, like electronically to the government, either with a check for extra tax you owe them, or they're going to give you a refund of the tax that you overpaid, right? That's what a refund is, is overpayment of your tax throughout the year. That's what preparers do. What we do is plan to try to reduce the tax burden you have. over your life. Because if it's the number one expense you're ever going to have, we want to try to reduce a little bit of that so you'll have more for your life, and then your family will have more in the future. That's where we start in the One of a Kind Financial Plan. But then we move on to retirement income planning. The number one fear that retirees have in their life is running out of money. You know, That, that's why a lot of people continue working into their 70s, or they keep part-time jobs, is because nobody has ever been able to say, listen, you're going to be okay. You've got guaranteed income from this pension or Social Security that is adjusted with cost of living adjustments. And this is your gap. This is the gap between your expenses and that guaranteed income.

Right.

And based off the assets you've saved, we can use those assets to generate checks. Retirement income is about making sure every month you have direct deposits hitting your account, right? Either from a pension, a Social Security, or your assets. And if it— and to make sure, or to ensure, they never stop. Throughout the rest of your life. That's what our forecasting tool does, is it literally takes all the guaranteed sources, your assets, and we project out to the future where you're going to be. And so once we have taxes and retirement income, the 2 biggest fears, right? Paying the most, the biggest expense you ever have, and taking the fear out. Then we go into more of the application, and we go next to investment planning. By the way, this is where all of the major firms start. How do I know that? Because I worked for the major firms. I, I, my experience, I know what the internal meetings of those major firms are because I was sitting in those meetings. You know, those meetings that could have been an email? I was in those meetings.

Okay. Right?

It, in those meetings for investment management, right, were about how can we get more assets. They weren't there for like solving people's problems. They were there, how can we get more assets? They were trying to solve the problems of the big companies. So investment management to us is about how can we put your money in the right place to eliminate risk and reduce fees. And then the last 2 things are pretty simple and pretty self-explanatory. Long-term care, right, is nobody really wants to be a burden to family members at the end of their life when they can no longer take care of themselves. So the only person that can solve that problem is you. The only person who could take care of your older self is your younger self, and so that's when we start with long-term care planning as soon as possible. That's why we use Halo by Genevity, that tool to be able to bring in and see, okay, what can we do to solve the end-of-life healthcare issues, right? And then finally, it's legacy planning, which is, you know, once, you know, once I do expire, die, because 100% guarantee we're all going to die, how can I reduce the burden to my family to get my assets out of my name, which I'm no longer here, and to the others? And what we know from that is that somebody who doesn't take care of that is creating a major time problem for their family. They're not creating a money problem, they're creating a time problem. Because when you don't have a will, you don't have a trust, it adds between 500 and 1,000 hours of work to your family members. And so we've partnered with Snug, which is an estate doc preparation company around the, around this country, to provide that solution. So when you look at like those 5 elements, We created those, those elements to be one of a kind, right? It's a one of a kind financial planning process. It's proprietary to us. We're the only people in the country that have it. And the reason we created that is because you are living a one of a kind life.

So how do you ensure that each client's plan is personalized?

That's a great question. This, this past Saturday, Wendy, I was I'm— I was with a client, John and Kim, who live in Kentucky. They have 4 kids, 2 of which are at that transition period where they're going into adulthood. Life has become expensive for them. The cost of car insurance alone has quadrupled with their kids joining their car insurance because they're 16 and 17 years old. The cost of private school is just absolutely backbreaking. The financial stress they're under is so real, right? They are high earners and they've, they've created, they've created some wealth for themselves in retirement accounts, but they're paralyzed because they're experiencing the high costs that kids have at the end of that, of that raising process. Because 16, 17, 18-year-old kids are very expensive. Not only that, but they just have come through the highest inflation period that we've seen since the 1970s and early '80s. So just feeding these kids is very expensive. But I was able to— and by the way, they have an advisor who's not helping them do any of this because he works for one of these major firms that only focuses on investment management. Retaining assets and getting new money, right? I was able to put them through our initial planning and I could literally see the stress melting away from them. In 1 hour together, we were able to solve a credit card debt problem, right? They were moving money from 0% credit card to 0% credit card. And I was able just to help them get rid of that.

Right.

Not— and do it legally with some assets they have that were just not positioned correctly. I was able to show them that their retirement accounts will really only serve one of 3 purposes. It's going to be income in retirement. It's going to be play money for their retirement, or it's going to be an inheritance for their kids. So that's all really retirement money is. It's income, it's play money, or it's an inheritance. That's all it is, right? And when I showed them that, they just paused because they had never heard that before explained so simple. They were just saving to save, right? John and Kim now have a plan that's been updated with a will and a trust. They have an investment plan that has a purpose. They have retirement. They know what their retirement income is going to be at 65, which is 15 years from now. Based off our forecaster, and they have control over their taxes with the customization we provided from Holistic Planning. So you ask me, how do I do this? We just listen, right? We, we help clients realize they're living a one-of-a-kind life, and that one-of-a-kind life is going to have different goals and different concerns and different financial situations. That's why we listen. I first asked them to describe their current position, where they are in life, and then I asked them— and that includes things like, what are your assets? You know, where are you from? Right? Just that simple question about where are you from? Because that could tell me a lot about where they want to go in life. And then I ask them the all-important question: why is money important to you? Because if they— if we have to address that question before we can go any further to create a plan. And then I ask them, what do they want their— so we talk about their current position. I ask them, what do they want their desired position to be like in the future? Like, you're here now. Where do you want to be in the future? And that's about your goals, right? But then the last thing we talk about is what are your challenges? What are the challenges to get there? Right. So that weight loss issue that I had in the past, or that weight gain issue I had in the past, right? My current situation was I was fat, right? My desired position was I wanted to be healthy. My challenges were I had to lose 100 and 100, 100-plus pounds to be there. And so I took what Dr. I taught me. in what I've been doing about building financial plans. And I now put that in practice to my clients because now I see where they are, I see where they want to be, and I help them, I help them identify and solve the challenges facing them. That's how we get there.

So, that shows how the personal touch is so important. And now that you've talked about making an impact, what does that mean to you?

Well, I have seen and witnessed firsthand the assembly line processes that major wealth management firms, investment companies, and insurance companies put clients through. They have the same fee structure, the same investment portfolios, and they give the same advice. Financial advisors who are employed— and listen, I have some friends who are financial advisors at these major companies. They're there because they're comfortable. Right? They have a good life and they're comfortable. But but they I often challenge them. You know, are you really? Are you really doing what's best for your clients? And they're like, yeah, we are from an investment standpoint. But those that are employed by those companies are told what to offer their clients. They're told what fee the client has to pay. And and with that, it aligns to some future that's really not aligned to clients. And so. It's— they're not really making an impact. They're making an impact to the shareholders and the owners of that firm, not to the client. So to me, making an impact is more than just managing money. It's about making a positive difference in the lives of my clients, my— in my team, right? We did a whole podcast talking about my team. I want to make an impact in their lives. In, in what they're doing, how they're raising their kids, how they're going on vacation. And then the last thing to make an impact, I want to make an impact on our community, right? It's about helping people achieve their dreams, whether it's our clients or my, my teammates or the community people are out there making a difference in kids and their lives. I, I'm just passionate, right, about making an impact. Even so, Wendy, you know that I, I teach at Old Dominion University and I'm teaching the next generation of financial planners how to think outside of the box, how to make an impact, and that they are going to come into this industry where the sameness needs to be, needs to be removed, and that they are helping people with one-of-a-kind financial planning because everybody's living a one-of-a-kind life. And so, my goal is just to be a trusted advisor who cares and who makes a difference in people who are out there living right now.

That's great. Well, Mike, before we wrap up, what advice would you give to listeners who are just starting to think about their financial future?

Well, the first thing I would say is you are living a one-of-a-kind life. There is Nobody who sees the world like you sees it— see it. There's nobody who has experienced what you have experienced, and there's nobody with the same goals and aspirations that you have. You are truly special, and you are— and you have the ability to, even if you haven't started in the past, you could start now with that realization that you are living a one-of-a-kind life. It's never too early for those of you who are in your teens and 20s to start saving. And it's never too late for those of you guys who are late career to take control of your financial future. You have to set goals, right? You have to know where you are now and you have to know where you want to go. And then you have to find a partner that can help you find the challenges. In my health journey, that was Dr. I. He helped me see like where I needed to get to from a health standpoint. And he used, he used the number one tool that I could, that I will, that I help people with financially too, that they have to want to take control. For my health, Dr. I could not do it for me. I had to do it. The one-of-a-kind financial plan. Yes, I'll help design it for you. Yes, I'll help put some tools in place that help you, but you have to want it. You're living a one-of-a-kind life, and our one-of-a-kind financial planning process will help you realize that your money is more powerful when you are in charge of it than with big— than when big major companies are in charge of it.

Well, Mike, thank you so much for joining us today and sharing your insights. It's always a pleasure speaking with you.

Yeah, it was great talking to you again, Wendy. I, I hope our followers found our conversation insightful and helpful today.

Yeah, I'm sure they did. And for the listeners, if you want to learn more about Mike Milligan and his services, be sure to visit his website at www.ideasbymike.com. That's one word. Until next time, remember, financial freedom is possible with the right planning guidance. Stay tuned for more insights on Ideas by Mike. You've been listening to Ideas by Mike with your host Wendy. Don't forget to subscribe, rate, and review this podcast. We'll see you next time.

Thank you for tuning in to Ideas by Mike, the podcast, the show where ideas turn into money. If you enjoyed If you enjoyed today's episode, make sure to click the follow button to stay up to date on future releases. For additional information on becoming a part of the Ideas by Mike community, check out our website at ideasbymike.com. Don't forget to take a look at the show notes, and for more financial insights, subscribe to the Ideas by Mike YouTube channel or visit the website to find one of the upcoming webinars. Also, connect on Instagram or Facebook @ideasbymike. Ideas by Mike is an LLC headquartered in Virginia with offices in 42 cities. The company owns an insurance agency registered in all states directly or through affiliate companies. Mike is an investment advisor representative with JB Wealth Advisors. Any financial planning information shared on the show should not be construed as financial advice for you personally. For your one-page financial plan, please reach out to Ideas by Mike through the website. The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Ideas by Mike. The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investment advice. Any financial planning information shared on the show should not be construed as financial advice for you personally. For your one-page financial plan, please reach out to Ideas by Mike through the website.