For us creative types the words “financial planning” can bring physical, mental & emotional reactions, none of which are pleasant – nausea, sweaty palms, panic, fear, an urge to run away. Meeting Hannah Raynes of Trilogy Financial changed all that for me. She has an arts background having studied theatre in collage, Hannah knows first-hand what it is tho be driven by a deep-seeded need to create and that males all the difference!
LA: What is your client list like and how do you begin working with a new client?
HANNAH: Working with Creatives is my passion & with my rather hippie-alternative lifestyle working with artists is a great fit. I have a wide array of artist I work with including actors, visual artists, designers, sculptors, painters, musicians. Most of my clients are self-employed or have a day job they don’t love and want to find a way to transition into something creative they love doing. With Creatives its more about relationship. I listen to what they want to accomplish & then help design a plan for where they want to go. We start with an initial 1-hour meeting going over questions about where they are now, what they want to accomplish, short & long-term goals. I gather financial info (tax returns, budget, debts) then I take that info & based on their desired outcome, I build a plan with options they can choose from to start saving. We meet a second time to consider their options & decide how to proceed with the best plan for them.
LA: How much do your services cost?
HANNAH: People think you need lots of money to meet with a professional and that’s not the case. The first meeting is free. Many clients start simply and have gotten more complex with their planning due to life changes such as a job transition, a new baby, buying a home, divorce, inheritance, health issues or starting a new business. What most artists struggle with are things like health insurance, setting up taxes correctly or being self-employed & having no HR Department they need benefits planning, so I help with that. Other clients have many things they want to accomplish so, if its appropriate, they decide to pay a retainer fee in return for which they get unlimited attention.
LA: Why is it important to work with a financial planner?
HANNAH: Artists often complain they don’t make enough money to save/invest but if they paid attention to how they spend their money they actually could save. I often talk about “The Latte Factor” – On average most people spend $10/day on eating out, coffee, snacks…frivolous stuff. So $10/day is $300/month or $3600/year. If you saved that for 20 years at a reasonable 8% rate of return, that $10/day becomes $164,743 from a $72,000 out-of-pocket over that same 20 years. Even if you only saved $50/month or $600/year for 10 years you’d have $8,691 – out of pocket $6000 – for 20 years; $27,457 and $12,000 out of pocket.
LA: WOW! I’m feeling really good about that $131/month I’m putting into the Universal Life investment I’ve got with you!
HANNAH: Knowing where to invest/save that money is critical because using your bank doesn’t do it. Let’s
use the earlier example of $3600 for 20 years. A traditional savings account at a bank pays 2% so you’d get $87,470 as opposed to the $164,743. PLUS the bank interest is taxed every year so the actual amount saved is much less because of the interest-income tax. CD’s are not any better and sometimes worse and they don’t keep up with inflation.
HANNAH: Inflation is how the average cost of goods increases in price from year to year. For instance, look at cost the cost of milk – 20 years ago a gallon of milk was around $1, now, for a gallon of organic milk $5.85. On average prices increase about 3.5%/year. I love educating clients on what’s available, no questions is too stupid. The important thing is, of financial options available, what options are right for the individual/couple I’m working with. Artists think they are not “numbers people” or they are afraid to tell someone the real situation and so they do nothing. I have seen it all, there’s nothing to be ashamed of. I’ve found everyone has the initial fear, then when we meet afterwords they feel so much better.
LA: I can testify to the truth of that!
HANNAH: The most rewarding part of my job is when people thank me for the help I’ve provided – or they say nobody has ever taught me this. It feels great to be taking advantage of all that I’ve learned in the arts and in the financial world and then use that to the benefit of my clients and my own family because my parents didn’t teach me either. Its really not that complicated. Most often its just starting with one thing and then building on that over time. Speaking of time, I’m young and I plan on being around when my clients are ready to retire.
If you’d like to explore saving/investing with Hannah Raynes (I highly recommend it!) she can be reached at:
303-300-3323 Ext 5188