In this final episode of the podcast interview series with the Andrew Hallam, we get to hear, from the horses mouth, the type of financial advisor he would consider hiring if he ever needs any financial advice (not that he needs any when it comes to stocks investing).
Hint: It’s not the type of unit trust agents which you and I encounter every other week.
And, have you ever wondered how a real millionaire spend his money?
Another hint: It’s not on luxury cars or everything-designer-labels clothing.
This is a book which I have read and would really recommend it to you. It had received scores of accolades from various sources.
CF: Let’s say you ever need to hire a financial advisor, for any reason at all, what are the qualities, a Millionaire Teacher would actually consider?
Andrew Hallam: Well…I think…that I would actually look for somebody who I could pay by the hour for advice, rather than look for somebody who takes a portion of what I invest or takes a percentage of my assets each year. If somebody takes one percent of your asset every year, you are cutting your portfolio potential in half. At the end of the day, it’s literally a difference between, at age of 65, between you having 2 million ringgit or 4 million ringgit when that one percent fee compounds over time. So I think, I would be keen to pay…and there are people who do this. They are hard to find. They don’t come knocking on your door. But if you do the research, you could often find people who you pay right upfront or by the hour to actually give you financial advice.
Andrew Hallam: And too, there’s another thing I think about. I always wonder about this – this I get a kick out of it. You know when financial planner used to come to me, and I will be at work at the American school…some guy would come through and he would want to invest my money for me. He didn’t know me, so that was obviously the reason he came to me, just thought I was any typical guy who didn’t know how to invest. And I would say, – this is so telling…I would say this “Hey listen, that sounds great – you are really a good advisor right? You’re really good at financial advising yea?” He said “Yeah, I’m good at it – I have been doing this for such and such years…I got this kind of accreditation”.
Andrew Hallam: Tell you what, how about we do this – you bring me, 10 years worth of your personal investment statements and I’ll bring you ten years worth of mine. We will compare, and if yours has beaten mine – yea, I’ll invest my money with you.
CF: Oh, that’s funny.
Andrew Hallam: Hey, how many of these guys you think who came back?
CF: I think not…
Andrew Hallam: This many <gesturing zero with fingers via Skype >
[CF – I wished I captured Andrew’s hand gesture in a screenshot here 🙂 but anyway, it’s similar to this]
CF: Zilch? Zero?
Andrew Hallam: This many would come back – ZERO! <still with the zero gestures>
Andrew Hallam: If the person were a carpenter or a builder, and he said “Andrew, I wanna build you a house” – and I’d say “Okay, show me the houses you’ve built for yourself and for other people” Absolutely, they would show me. But the odd thing about financial planners or financial advisors is that …because people think it’s too rude to ask, nobody ask the most important question of all. Let me see how you are with your money?!
Andrew Hallam: Are you wasting money? Do you own a load of depreciating assets? Do you have a load of credit card debt? I’d love to do audit on these guys. Let’s see your credit rating. If they can’t do it for themselves, are they going to be able to do it for you?
CF: I mean, you got to talk the talk and walk the walk right? Obviously if you are not someone who walk the walk then…they approached the wrong guy, I would say.
Andrew Hallam: Ha ha
CF: Absolutely. So I stress this again – zero comes back to you – zero, none of them…
Andrew Hallam: None of them. I’ve probably done this a number of times. In fact, there was a period of time I would almost look for these guys …if I knew they were around, I put myself in their path…I would literally put myself in their pathway…just for the sheer entertainment of it all.
CF: That’s really funny, if it weren’t for the podcast I’ll be laughing my ass off now.
Andrew Hallam: <Laughs>.
CF: Andrew, it’s really a great pleasure talking to you. You are such an inspiration, you are very passionate in what you do and the wisdom in this short conversation is really really inspiring.
Andrew Hallam: Oh, thank you!
CF: Thank you so much for your time, but before that, let me ask you – is there a plan to you to come up with a sequel for your book – given the success of the first book?
Andrew Hallam: Well, the publisher actually wanted that. They contacted me today. In fact they contacted me fairly regularly and ask me that question. This book ends up becoming an international bestseller. It really surprised me. If I do a sequel, what I think I would like to do is – targeted for kids, specifically for kids. And actually have some fun with it. Actually writing in a voice that is even less academic than the voice I’ve written in for Millionaire Teacher. And really have a lot of fun with the language and the analogy. Something that I think a 14 years old or 13 years old can pick up – actually find it entertaining and learn from. So that would be the eventual goal, I think.
CF: I believe, it would be more entertaining than your first book, because your book is really entertaining.
Andrew Hallam: <Laughs>. I can do better. (in the second book). It would be a lot of fun.
CF: I personally looking forward to that…… Are you doing any travelling?
Andrew Hallam: We are heading to Sri Lanka in about a week and a half.
CF: Wow, great.
Andrew Hallam: We love to travel. My wife and I – we are lucky as school teachers because we get 13 weeks off a year. And so, that itself just gives us wonderful opportunity to travel and to see different parts of….we love South East Asia – love it!
CF: Andrew, perhaps I cramp in one more short question – what are the top 3 things you would happily spend on, nowadays?
Andrew Hallam: Definitely travel. My big weakness is massages. My wife and I have a woman who comes to our house every single week and she gives us fabulous massages. We have our own massage tables. My wife and I are just addicted to it. We absolutely love it. So, the travelling…the massages…and eating really good food. We just absolutely love that.
CF: So you love Singapore yea?
Andrew Hallam: Yea we do, we really enjoy Singapore.
CF: Any plan to come visit Penang?
Andrew Hallam: You know, I’ve never actually been there – but I do love Malaysia. You know what of my favourite places is Pulau Tioman. Sometimes we are going to get over to Penang ‘coz I hear it’s actually really cool.
CF: Oh yea, you should! Give me a shout and perhaps if you are coming to Penang, I am more than happy to show you around!
Andrew Hallam: Yea! Maybe I have a place to stay and don’t need to pay rent, right?
CF: Oh yes, like I read in your book – you look after people’s house during winter and you don’t have to pay rent right?
Andrew Hallam: The Millionaire Teacher right?
Andrew Hallam: You stay with, I stay with you – neither of us has to pay for a hotel right?
CF: Great idea, Andrew. Great idea!
CF: Andrew, it’s really a pleasure talking to you and have a safe trip to Sri Lanka.
Andrew Hallam: Thank you so much and good luck with your blogging. Great stuff – thanks so much and I enjoyed, actually, chatting with you.
CF: Thanks a lot, Andrew!
Andrew Hallam: [You are] welcome. Have a good night.
CF: You too, See ya!
Andrew Hallam: Bye-bye
I truly hope you enjoyed the whole series of this interview with the Millionaire Teacher.
If you miss the previous 4 episodes, check out the link below. And while you are at it, please subscribe to LCF on Personal Finance so I could send you future blog updates on similar topics :). It’s my aim to share with you, value-added content which we could all learn from in improving the many aspects of personal finance.