Ep. 058 — Annual CFP Roundtable 2017 | Kyle Mast and Danny Kenny

CFPs who practice financial independence aren't an oxymoron — they're your secret weapon. Kyle Mast and Danny Kenney are certified financial planners embedded in the FI community, and they're here to answer the questions you voted most urgent: when DIY fails, how to pay for advice without getting fleeced, and why even hardcore index fund enthusiasts miss blind spots a planner can catch in one conversation.

Introduction and Overview

00:00:00 - The episode kicks off with an introduction to the unique intersection of certified financial planning and the FI movement.

Panel Introduction

00:02:44 - Brad and Jonathan introduce Kyle Mast and Danny Kenney, both CFPs who are active members of the FI community.

Personal Stories from CFPs

00:03:04 - Kyle and Danny share their personal journeys into financial independence and how they apply FI principles in their professional practices.

Valuing Certified Financial Planners

00:06:57 - Discussion of the distinct value CFPs provide beyond investment management. The planning process itself — identifying blind spots, optimizing tax strategies, coordinating complex decisions — is where the real value lies, even for confident DIYers.

Key Insight: "Even a DIYer, you might not know what you're missing." A one-time consultation can reveal overlooked opportunities or risks.

Client Engagement and Dynamics

00:09:18 - CFPs often serve as mediators between spouses, helping couples align on financial goals and risk tolerance. This neutral third-party perspective can defuse tension and create shared understanding.

Questions from the Community

00:15:32 - The hosts begin addressing the top community-submitted questions, ranging from fee structures to finding the right planner.

Fees and Planning Models

00:16:49 - Explanation of different fee structures: hourly rates, flat retainers, asset-based fees, and one-time project fees. Fee models vary widely depending on the planner's business model and the complexity of your situation.

Finding a Competent CFP

00:23:01 - Recommendations for locating CFPs who understand FI principles and aren't incentivized to sell products. Resources like XY Planning Network are mentioned as starting points.

The Importance of Fiduciaries

00:25:30 - Explanation of fiduciary duty: a legal and ethical obligation to act in the client's best interest. Not all financial advisors are fiduciaries, and it's critical to confirm this before engaging.

Shifting Tax Strategies

00:31:25 - Discussion of recent tax law changes and strategies to consider, including the timing of conversions, capital gains harvesting, and bracket management.

Psychological Aspects of Investing

00:38:08 - Exploration of behavioral finance: how emotions, risk tolerance, and spousal communication impact investment decisions. A planner can help filter choices through a rational lens during market volatility.

The Value of Financial Retreats

01:11:12 - The planners advocate for annual "financial retreats" — dedicated time for families to review goals, reassess strategies, and ensure everyone is aligned.

Key Quotes

• "Even a DIYer, you might not know what you're missing." 00:06:57
• "The planning is where the true value is provided." 00:06:57
• "CFPs often mediate discussions between spouses." 00:09:18
• "Everyone should talk to a CFP at some point." 00:21:33

Related Resources

• XY Planning Network - A network for finding fee-only CFPs who work with clients on a retainer or hourly basis.
• Nerd's Eye View by Michael Kitces - A financial planning blog with deep technical insights.