Ed Dressel  0:09  
Welcome again to another podcast, of Grow RetireReady Clients. It's Ed Dressel here, and I'm excited to have an interview with Nancy Zhang with State Pension Advisory out of Sacramento, California. Nancy, it's a delight to have you here today.

Nancy Zhang  0:23 
Thank you, Ed for inviting me. I am honored.

Ed Dressel  0:26 
Why don't you tell our audience a little bit about your business and what you do?

Nancy Zhang  0:30 
So my business, as you can tell from the name, is State Pension Advisory. Basically, we focus on helping people who have state pensions, especially focus on universities across different states, and to help those employees and faculties who are in the university and working hard, and we will take care of their retirement planning, and then we review their pension and answer their questions, offer all their benefit details. Those are the main focus in our business.

Ed Dressel  1:00 
So how big is your company? And tell a little bit of the history of how you got where you're at today.

Nancy Zhang  1:05 
So our company just restructured this year, so we're actually expanding. So primarily right now we're focusing on a few states, and I am located in California, Sacramento, and then we have business in Arizona. We have business in Florida and Texas. Those are the major states that we're focusing on. But in the future, our goal is to have an office in all 50 states and focus on our niche, which is the state pension.

Ed Dressel  1:34 
Why do you choose financial advising?

Nancy Zhang  1:37 
 I just think it is critical in people's lives. And then there's something that I talk a lot: the thing that costs financial hardships is not really because people do not have enough money. What I found the most, it's the ignorance. So a lot of people I know actually make a lot of money. However, if you take a look at their financial picture, they're not doing great. They're not doing great because they do not make a lot of money. That's not true. It's the ignorance. They do not pay attention to their financial planning. And I was one of them years ago. Okay, so I was one of them. I started business when I was early 20s, and I made myself a self-made millionaire at an early age. But there are always good news and bad news when you taste the success at the early stage of your life. So when I was too young, when I had ignorance and when I was arrogant, when I had no clue about business finance and I failed. I made a lot and I lost a lot, that's how I learned my lesson. And then I just believe that if you want to do anything, not just being successful in business, if you want to be successful in life, you have to take care of your finance first. That is called being responsible to your people, to your family.

Ed Dressel  2:57 
What's the favorite part of your job?

Nancy Zhang  2:59 
Just being able to bring the people the information, the knowledge that they need to know, and then to help people understand what they need to pay attention to when it comes down to their financial planning, their retirement planning. And then especially to bring the security and the peace to people's retirement. I think that really brings a lot of joy and peace to me and to my life, and brings, I would say, the highest meaning to my life and to my career.

Ed Dressel  3:32 
What obstacles do you find in working with state pension systems and engaging employees and individuals?

Nancy Zhang  3:39 
I would say that's the skepticism. When it comes down to financial planning, retirement planning, people are always going to be skeptical, especially those people I--I just I realized that those people who have the least knowledge in finance, in pension and they turn to be the most skeptical ones. I don't know why, but I just realized that they have their own insecurity because they don't know much. That's why they become the most skeptical. Versus some people, they're very savvy with finances, with investment, and then when you talk to them, they're actually always open minded. They want to hear more. They want to learn. They know that there is always something they don't know, and they want to get to know that. They want to know if that's going to benefit their long term retirement planning or financial planning. So those are the obstacles that I face the most. But what I do is just to clear the concerns and making sure that I have a good heart and I have your best interest, and I'm here to bring value. I'm not here to take your money or doing anything. I'm here to bring value first.

Ed Dressel  4:46 
Is there a process you use as you face somebody that's a skeptic to overcome their skepticism?

Nancy Zhang  4:52 
Yes, that's your software. Ed, I could not appreciate more. I cannot do my business without your software. I'm literally doing my business, doing my appointment every single day, every single appointment with your software. How comprehensive, you know, the information that we're able to provide to our clients by using your software. And I'm not talking just to, you know, make a commercial. I'm talking this coming out of the bottom of my heart--how much I appreciate using the TRAK-Online.

Ed Dressel  5:25 
Well, let the audience know I didn't know the answer to that question, but I appreciate your kind words. What is it about TRAK that helps you overcome a skeptic who's sitting there going, "I don't really want to work with you. I don't believe you." What does it do to the conversation?

Nancy Zhang  5:39 
I think it's the detailed information. And then the detailed information is beyond just calculation. And the detailed information is something that they don't know. They thought they know, but then when you unfold all their benefit information through the TRAK-Online Software, and then when you break down all the benefits to them, it's like an eye opener to them, and they're like, "Wow. I didn't know this." And then the word I heard the most from my clients is helpful. "Nancy, this is very, very helpful." Wow. And some even say this is overwhelming. Wow. This is very informative. And I didn't know that there are so many information in my pension. And, "Thank you. I couldn't thank you enough. Nancy, I really appreciate your knowledge and your information."

Ed Dressel  6:29 
So tell me a fun story of somebody you've met with lately where you saw some real fun success.

Nancy Zhang  6:35 
Majority of my clients, I have great success with them, no matter if they have enough funds in their retirement, or they do not have their enough funds in the retirement. There are--we always have solutions. Yet what I love the most is the solution part that TRAK Software is able to provide, and then we show people where they're at, but we're not going to leave them where they're at. And as an advisor, our job is to provide solutions. And then software like TRAK does the job. And then TRAK would offer solutions. Then you would bring the question back to the client: "Which one do you think is the most realistic? Do you want to start saving today, or do you want to wait years later when you retire and then you're going to pay for a big bill?" And then I laugh about this with my clients all the time, and they're like, "Nancy, I do not want to pay for the bill!" And I mean, "Okay, then do you think you have the luck to get a lottery?" And they were like, "No way." I'm like, "Okay, so what's the most realistic way to plan for your retirement?" They're like, "Wow, I better start saving today." So it's it's the fun part, using the software, and also it's very engaging. You can bring--like I learned from you, Ed from your training videos, and then to ask questions, because at the end of the day, this is not our problem. So a lot of times, I think advisors--we become too concerned about their problems, their issues. Our job is actually to just to bring attention to them. We just need to address what is missing in their planning. But we do not have to concern too much. We do not have to provide solutions before they ask us, "Oh, is there any solution." So our job is just to show them where they're at and then ask, have they considered any solutions? And then take from there.

Ed Dressel  8:29 
 The 403(b) marketplace is constantly changing. What are some of the difficult issues you face, especially as you see growing your business?

Nancy Zhang  8:38 
The difficult situations, I think, are the people are not truly understanding what they really have. A lot of people, I spoke to some people, they're over there 70s. And then when I asked them, "Do you have a pension?" they were like, "Yes, I do." And what is the name, the tax code of your pension? They're like, "403(b)." So the thing is, they don't even understand 403(b) is not a pension. It's actually considered as a voluntary plan or supplemental plan. And I face this all the time, and scare me. And I literally spoke to a recent client yesterday, and she is over 60. She's reaching towards her retirement. She has over half million in her 403(b)--she has no clue she has that money. And I was like, you're contributing over $2,000 per month into your 403(b), your 457. Don't you want to know that you're balanced? And then, by the way, do you know that's a variable account? And she was like, "Where can I find that, Nancy?" And I was like, "Okay, well, you're in the UC system. So yours should be in the fidelity. Please, let's register your fidelity account. And then she registered with me, and then she just saw her balance yesterday after working 20 plus years. That shocked me and scared me, and I'm telling you, Ed, this is not a rare case. I face this all the time. People has no clue that 403(b) is not a pension, and 403(b) has potential risk, and the preferred 403(b) is not going to give them a lifetime income. And yeah, those are the questions and the challenges and also opportunities in this 403(b) market.

Ed Dressel  10:20 
Do you have a favorite success story?

Nancy Zhang  10:22  
I really do not have a favorite one. I would say, I see every success is my favorite success, because you can't really compare success. I would say, just to help clients understand their options, for them. To bring bring hopes to them, and then to really help the client to understand that there is opportunity, there is a better option than the 403(b) and that which can either offer them a good legacy or can offer them a lifetime income versus using the 403(b). So there is no favorite success, and every success, to me, is my favorite. Every success is a good success.

Ed Dressel  11:07 
What's the best way to help a client?

Nancy Zhang  11:09 
 Just to bring value to the client. And then, if you ask me, I think the most important thing is you have to always remind yourself that you have to have a good heart. You have to always have the best interest of your client instead of the commission. Because us as advisors, we work hard. We also get paid very well if you're a good advisor, and then you would never have to worry about running out of clients. And I just told you that I'm busy every day. I'm running on average five to six, sometimes seven, appointments back to back per day. I am busy every day. But I think the most important thing is you have to put your client's interest as your priority all the time. I'm a person of faith, and I do believe that you have to believe what you propose. And I would never sell anything to my client if I do not want to sell to my family, to myself. And then I always focus on the what's the best for the client. I check my commission at the end. Oftentimes I would say, "How can I design this plan, the best way for my client?" And then if my client agree to move forward. And then I'll check, "Okay, how much can I get paid?" And then I would do that at last, I don't check my commission at the beginning. I don't focus on my commission. That's actually the secret of why I have nonstop referrals coming from my clients, because they can tell. I think people can tell if you have a good heart or not.

Ed Dressel  12:48 
I think people will know if you're focused on your commission or if you're focused on helping them. There's a world of difference in how you approach the conversation. And they will appreciate and they'll gladly tell people about what an advisor that's focused on them as an individual, then, hey, well, this is a little bit better product, and people--somebody's going to see through that.

Nancy Zhang  13:09  
Yeah, 100% agree with you. And then that's what happens all the time. When people see the value you brought to the table, when people see that, you really open their eyes. When people see that, you really open the door to them. When people see that you bring the value, the security, the peace, to their retirement planning, to their financial situation, they appreciate you so much. And then by appreciating you, they refer people, their husband, their family, their children, even their grandkids to you, and that's how you don't even have to ask for referrals. They're just ask you, "Nancy, can--is my husband qualified to speak to you? Can I refer you to my coworkers? I I have a lot of referrals coming from everywhere, and I don't even know who they are. They would email me then saying some of the, you know, the university things, some of the university, the chief directors, and then the principals, and they reach out to me. They were like "Nancy, I heard so many good things about you from many coworkers. Do I have the honor to work with you? Can you consider doing a consultation with me?" So I don't have to chase my client, and I don't like chasing people. And I believe if you bring value to people, you don't have to chase them. They will chase you. You know, same with all the good products. People love Apple. People love Tesla. Why? You know, Tesla and Apple, they do not even have a salesperson in their showroom. They have customer service representatives in their showroom. Why? Because they don't need a salesperson. Their product sells itself. So I don't need to sell myself. If I just bring value to them and overwhelm them with my value, what's going to happen? They're going to bring referrals to me.

Ed Dressel  14:57 
What is it about TRAK that engages your client base. When you're walking through an illustration, what is it that makes them lean forward and go, "I'm so glad Nancy showed me that."

Nancy Zhang  15:08 
It's basically you're showing them the options, the details that they don't know about their pension. And also you're able to focus on their goals instead of selling your product. The most questions that I ask are, what is your retirement goals? What is your age goal? What is your income goal? And then, based on your goals--and I show them where they're at, and then to see if they're on track or not. If they're on track, that's great. And I would say, congratulations that you don't have any shortfall. That's a great news. You are saving a good amount. You're gonna you're gonna be okay. But let's take a look at your portfolio. Are they balanced? Are they where, where the risk is at? Are you at the higher risk now, or are you at the moderate risk, or are you at the lower risk? So I would talk about those things. So those things that TRAK would provide and TRAK gave people the general overview of where they're at, and also offer them the solutions. And also TRAK has the way to calculate based on people's retirement age goal and income goal, and also being able to factor the cost of living adjustment into the calculation. So this is awesome, and you have many, many ways to engage, to talk to your client instead of you just talking. So TRAK offers the opportunity to have multiple conversations with your client, to have a very engaging conversation during the appointment.

Ed Dressel  16:39 
What's the best way to help a client?

Nancy Zhang  16:41  
The best way is just to provide value. Always provide value and overwhelm them with your value. And then to make sure you address their concerns, and not just address their concerns, but beyond that, offer solutions to them. Which TRAK does the job. TRAK gives you the options, the solutions. You need to attach the solutions with the products that you can offer to your client.

Ed Dressel  17:09 
You talk about wanting to go all 50 states. How do you achieve that?

Nancy Zhang  17:12 
Just recruit the right advisor to my organization. And I'm not in this game for a short term. I'm in this game for long term. And I do love what I do, and I do want to work or being around with people who are like minded. They're focusing on helping people. And they do know there's a problem with retirement in this country. And there is a problem that needs solutions and thinking about this market, thinking about people in this market. So I want to work with people who do care about this market, and wanted to work together. So I do not want to recruit everybody, but I want to recruit, like-minded people, and then partner with me, and then we can open offices in 50 states.

Ed Dressel  18:02 
You're ambitious. That's awesome.

Nancy Zhang  18:05 
Well, I just love what I do, and I feel like this is a calling to me. I used to work in the university, so I understand what they care the most, and I do speak their language. That's why when I do appointment and I know how to talk to them. I have the confidence to talk to them because I know what they need and I know what they care the most. And that's why I believe this is my calling based on my experience, based on my current financial knowledge and my level. I think this is kind of like my calling to focus on this niche, to help people, if I can, to help people in all 50 states. But I know there are already some of the peers, they're in this space, and they're also working very hard, and I hope one day that we can all partner together, work together to just serve this and to bring so much value to this market.

Ed Dressel  18:59 
If an advisor was looking to partner with somebody, what do you bring to the table for an advisor that says I'd partner with you?

Nancy Zhang  19:06 
I bring, course, the support. And I would ask, what kind of support do they need? Why there are they looking for a partnership right now? And then I will see if my support can meet their need first. And then I have a technology partner who are building our software. We can use the software to help the client. The software is different from what you have. The software is basically calculating the traditional plans versus what we can offer. So we have those softwares to help client, to calculate those, and then software to help the advisor with their CRM. And also we have marketing support, and, of course, the mentorship program, and then long term partnership, and then the most important, the best compensation. So that's--I don't mind, like when it comes down to partnership--I don't mind sharing profit. It at all. I don't mind it at all. I think if we can bring value to each other, and we should share profit, that's how business works. But the most often times are the other person is not bringing enough value, and that's how you break partnership. And then for long term partnership, I think I just do the same as I do to my client--bring the value to my partners, and then provide support that they need, and then having a long term relationship. And now, of course, we have to share the same value. We have to be like-minded and then have good heart in this business, in this industry.

Ed Dressel  20:37 
How do you differentiate yourself with the other 403(b) advisors that are out there?

Nancy Zhang  20:42 
Like I said, I do not focus on money. I do not focus on my best interest. I focus mostly on my clients. I focus all on my clients' best interest. I focus on what's the best solution for them. I always put myself into their shoes. And I would say some of the clients, if I see they're really doing great, they're already having some of their portfolios in annuities, some of their portfolios in IUL. And I know that there is nothing else I can do. And they have investment. They have stocks, 403(b)s, and you name it. They have all kinds. They have a very balanced portfolio. I know there is, there's no way that I can provide more than I would just say, I'm still gonna provide what I have to provide. I'm still gonna give them a comprehensive pension review, and then I'm still gonna maintain the relationship. But I would let them go, because I know if I don't provide value, I don't want to chase people just for money. You know, making wrong assumptions or giving the wrong advice to the client, just for my commission. And I wouldn't do that.

Ed Dressel  21:49 
Nancy, it has been a delight to have you today. Thank you for taking the time to talk. I really appreciate what you're doing, and it best of luck as you move forward in getting advisors in all 50 states. I hope that goes well for you.

Nancy Zhang  22:02 
Thank you so much, Ed. And this is again, my pleasure being on your show, and I really enjoyed our conversation. Thank you for putting so much effort and attention into this market. Thank you for caring so much.