Good Financial Planning Let’s You Live Your Lifestyle with Michael Cave, Managing Director of Cave Financial

Transcript:

Alan Olsen

Michael, for the listeners here. Can you give us your background and how you got to the point you are today?

Michael Cave

Yeah, well, I guess like a lot of advisors, I got recruited into the industry. But I’ve always had a bit of a passion LM for financial affairs and money. My mum, dad were farmers, sheep and bee farmers. But my dad was a, an investor on the stock market. And my mum was very good with money and saving. And I guess I just had a bit of a passion for it and started in the industry and did pretty well from the get go, fortunately, and I’ve had a good team around me. But over time, we’ve grown our team. And we’re nationwide now around New Zealand. And we’re in three lines of business, Wealth Management, life insurance, as well as a home loan lending.

Alan Olsen

What inspired you to be that financial advisor, Michael?

Michael Cave

 Well, we started like a lot of advisors. I had no life insurance, no estate planning, and not much money to my back pocket. But I guess I just love working with the people. And then I found when Nisha and I’m talking around money that’s passionate about it. And I really just wanted people to do well with their money to reach their potential and make a difference in the lives and their communities. And I hate losing money. I hate people losing money and being ripped off. But also love people giving good advice. And I just found a niche that people probably the same right around the world. There’s not much financial literacy. And not a lot of people are getting financial advice out there families have never really taught them to be good with money or how to be good or use money correctly. But you know, it’s not taught in the school. So massive gap out there. So I found an opportunity and just fell in love with it.

Alan Olsen

Well, I want to pick up on that the mistakes people make what are some of the common mistakes people make when working with money?

Michael Cave

Yeah, I think a lot of people don’t take any risks, you know, they just leave it in the sort of shoebox or in the bank accounts earning nothing but then some people take too much risk, and they think they know all the answers. And I guess that’s the key is people aren’t getting advice, they don’t get a second opinion. They don’t have who somebody that can help them get advice. We recently I decided, hey, if I’m giving people advice and telling them to get advice, I should get advice, I reached out to an advisor and made a big difference in my life. And I guess the thing is a lot of New Zealanders, but a lot of people around the world like to just do it themselves DIY. And they think they know the answers. But there’s also a bit of bias, we all have blind spots. And as advisors, we can come in and give people an independent view. Or they can make an a stupid mistake or, or a good decision. But I think a lot of people take too much risk. Not enough. But also they just they just have a few blind spots. And sometimes we need to encourage them to to understand what the decisions are the choices.

Alan Olsen

What are your thoughts about investing in the current market?

Michael Cave

Well, yeah, it’s pretty interesting at the moment. I think sometimes, you know, a little bit of a correction as good otherwise we get a bit a few bubbles. We’ve seen those around the world. And, you know, I think you know, the thing of the tulips in Holland years ago, you know, people were paying lots and lots of money for these tulips and they woke up and realized they weren’t really worth anything. So I think, you know, a bit of winter in the stock markets can be good, you know, but a pruning and realignment, but I think there’s always going to be opportunity, the capital markets are always going to grow. And I think if people get the goals in the plans and their timelines, correct, there’s going to be a lot of opportunities out there. So I think, you know, stay in the market. It’s always growing, it’s always going to do well, yes, it’s going to go up and down. It’s always going to do that, but over the long time the markets are going to go up. So stay in the market and get some good advice.

Alan Olsen

So a person staying in the market. You know, they first of all they need to stomach volatility. What advice do you have for people as they look to the future or their strategic moves that they should be making?

Michael Cave

I think really double checking the goals. Check in on the needs if they need money tomorrow, maybe the market right Now is not what they need to be with a winning money needs to be. But I think if they’ve got a long term goal of retirement travel, renovating a home or whatever it is, I think what they need to do is stay in the market. And maybe keep contributing right now if they’ve got the capacity, and I think the tide out there, but if they have got capacity, if they can keep investing, there’s going to be some great opportunities, the markets are down, as we all know, in but they’re going to bounce back. But if they can’t stomach it, they get somebody to come in and counsel them give some wise advice and say, hey, it’s not that bad, it will bounce back, get some perspective, but a few got some money that you need to spend in the short term. Or maybe you need to put it back into the into the bank account.

Alan Olsen

So Michael, what would you be doing if you were not working in your current role?

Michael Cave

Oh, that’s a real good one. I’m more of a sports junkie, not as, and I love travelling, New Zealand’s a long way from the rest of the world. So we like to travel and explore and learn and different cultures, different foods. I guess the other one is, yes, sports, love, adrenaline sports, and so surfing, skiing, those sorts of things. So yeah,

Alan Olsen

So I’m going to shift gears and talk a little bit about life and legacies. And where do you currently find the most purpose in life?

Michael Cave

Yeah, I think it is about serving and helping others, Alan. That’s right. I enjoyed I wasn’t getting paid a lot. At the beginning, I was 100% on commission life insurance and just loved helping people and whether it was around their financial affairs, but their businesses, their families been appearing, that sort of thing. So yeah, I’ve always had a passion to help people reach their potential, you know, the diamonds in the rough. And I think a lot of people just need to, you know, that there’s always opportunities to grow and do more in the world. And I think if we can help people reach their potential make a difference in their will, then, you know, I’ve reached my goal. So that’s, that’s a passion of mine. And that’s what I want to try and do for now, but into the future as well.

Alan Olsen

So Michael, year, one thing about your business, so you’re really helping people as they plan for life. But let’s turn it back to you. You’re fast forwarding to the future, you’re on your deathbed. How would you want to be remembered after life?

Michael Cave

Yeah, I think that it’s a really good question, though. And it’s about people and family that mattered, that I put people first. And I’ve used my abilities to help others, you know, I don’t want to bury my talents, my abilities in the ground, I want to use them. And sometimes that’s pretty scary. But I think I really want to use those abilities to help make a difference. And, you know, we can’t take our wealth with us, it’s going to go to the next generation, or it’s going to go to the Text man or something like that. So you know, we’re going to use all our talents at the time, our energy networks, I love networking with people and yeah, just want to connect people and help them reach the potential here, let’s make the world a better place.

Alan Olsen

What type of projects right now you’re working on to build your legacy.

Michael Cave

You’re right now you would continue to build and grow our business adding more team members so we can reach more people. We’re looking to do some online programs, you know, financial literacy around the country, and hopefully, we can take that sort of overseas as well. Just to you know, educate people around the finances and what they can do this, you know, lifelong principles that work like compound interest, and all those sorts of things that we can educate people and get people out of poverty, but just to help them go to that next level and, and build wealth for the next generation. That’s, that’s where I’ve sort of hit, you know, my dad. He built wealth and worked out on the farm that we come from a family of bankers back in the 1800s. In the UK, there was a cave bank and a cave note. And yeah, I guess I want to build my legacy to make a difference, you know, outside of, you know, what I get paid for as well. So there’s that. And then we work on some boards, non for profit boards, helping kids, disadvantaged kids, people back into the workplace, and education and those sorts of things.

Alan Olsen

Or Michael, if a person wants to reach out to you for your service, financial services, how would they go ahead and contact you?

Michael Cave

They can go onto our website, https://cavefinancial.co.nz, and drop us an email or reach out, connect with us on LinkedIn. And we’re happy to chat and book an appointment online. Now we can meet online globally in record time it works no matter what time zone you’re in

Alan Olsen

Again, Michael, it’s been a pleasure having you here today on American Dreams, and we like to stay in touch with you. Thanks so much. I really appreciate the opportunity to keep up the great work.

Michael Cave on Alan Olsen's American Dreams Radio
Michael Cave

Michael Cave is the Managing Director and Senior Adviser of Cave Financial, which he established over 20 years ago and is based in Auckland, New Zealand.

Michael is committed to client care and as a financial planner, he’s the ‘go-to-guy’ for personal and business financial planning, home loan lending and risk management, and helps people create and protect their wealth and ultimately get the lifestyle they want.

A devoted husband and father of four, Michael enjoys the fun of family life, which includes coaching rugby, and being involved in his children’s many activities.

Alan Olsen on Alan Olsen's American Dreams Radio
Alan Olsen

Alan is managing partner at Greenstein, Rogoff, Olsen & Co., LLP, (GROCO) and is a respected leader in his field. He is also the radio show host to American Dreams. Alan’s CPA firm resides in the San Francisco Bay Area and serves some of the most influential Venture Capitalist in the world. GROCO’s affluent CPA core competency is advising High Net Worth individual clients in tax and financial strategies. Alan is a current member of the Stanford Institute for Economic Policy Research (S.I.E.P.R.) SIEPR’s goal is to improve long-term economic policy. Alan has more than 25 years of experience in public accounting and develops innovative financial strategies for business enterprises. Alan also serves on President Kim Clark’s BYU-Idaho Advancement council. (President Clark lead the Harvard Business School programs for 30 years prior to joining BYU-idaho. As a specialist in income tax, Alan frequently lectures and writes articles about tax issues for professional organizations and community groups. He also teaches accounting as a member of the adjunct faculty at Ohlone College.

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