309: [Michael Scarpati] Empowering Your Financial Journey: A Guide for the Sandwich Generation

aboutthatwallet
Sep 9
4 min read

Links:

https://www.instagram.com/retire.us/

https://www.linkedin.com/in/michael-a-scarpati/

https://www.retire.us

Blog:

In today’s fast-paced world, understanding personal finance is more crucial than ever, especially for those in the sandwich generation—individuals who are balancing their own financial needs while supporting aging parents and raising children. In our latest podcast episode, we had an enlightening conversation with financial expert Michael, who has over 15 years of experience in the industry. He shared invaluable insights on navigating the often-overwhelming landscape of retirement planning and financial advice.

Michael A. Scarpati is the co-founder and CEO of RetireUS, a fintech platform disrupting today’s financial planning with a better path to financial freedom. After spending a decade as an independent financial advisor, designing systems for high-net-worth individuals and corporate executives, Michael shifted his focus to making independent fiduciary financial guidance more accessible. In 2022, he co-founded RetireUS with the vision of blending technology with human relationships to make premium financial planning frictionless and affordable for anyone.

One of the key takeaways from our discussion was the importance of working with an independent fiduciary. Unlike traditional financial advisors, fiduciaries are legally obligated to act in your best interest. This distinction is critical in ensuring that the advice you receive aligns with your financial goals. Michael emphasized that many individuals remain unaware of the red flags in their financial planning, which can lead to significant issues down the line.

To address this, he introduced a free tool available on the Retired U.S. platform called the Financial Checkpoint. This tool helps individuals identify their financial blind spots and provides a clear assessment of their retirement planning, tax strategies, and overall financial health. The process is straightforward and takes only a few minutes, making it accessible for anyone looking to improve their financial literacy.

Michael also highlighted the importance of starting early, especially when it comes to saving for children’s education. Utilizing tools like 529 savings accounts can significantly enhance a child’s financial future. By starting early, parents can take advantage of compound interest, which can lead to substantial savings over time.

Another fascinating aspect of our conversation was Michael’s personal journey into the financial planning space. He shared a poignant story about a retired couple who believed they had a solid retirement plan in place, only to discover that their investments were poorly diversified. This experience ignited a passion in Michael to make financial planning more accessible and effective for everyone, leading to the creation of Retired U.S.

As we wrapped up our discussion, we touched upon the evolving landscape of financial technology and how it can facilitate better financial decision-making. Michael's commitment to leveraging technology to improve financial literacy and accessibility is commendable and highlights the future of financial planning.

If you’re looking to enhance your financial knowledge and take control of your retirement planning, this episode is a must-listen. Tune in now to discover how to turn your financial red flags into green flags with actionable insights and expert advice.

🗣️ Quotes from Michael Scarpati:

"An independent fiduciary, meaning independent. They're not tied to a specific financial institution. They work for you, they don't work for somebody else."

"The biggest asset that you have for your children is time."

"Wealth to me means optionality and freedom."

"Just because you have investments or a portfolio does not mean that you have a financial plan."

Glossary:

Term	Definition from Source Context
529 Savings Account	A savings account for college that allows funds to grow tax-free for higher education purposes.
Atomic Habits	A book by James Clear that Scarpati found impactful for its insights on understanding the power of habits and how they can either make or break a person.
Certified Financial Planner (CFP)	Considered the highest designation in the financial planning field. It is all-encompassing, covering taxes, legacy, and investments, and is ideal for those looking to build out frameworks and structure.
Chartered Retirement Planning Counselor (CRPC)	A professional designation with a specific focus on retirement planning, strategy, and building systems for retirement.
Diversification	The principle of spreading investments across various assets to reduce risk. The lack of diversification was a key red flag in the anecdote of the retired couple who had all their money in one mutual fund.
Fiduciary	A financial professional who is legally obligated, in the eyes of the law, to give advice that is in the client's best interest. Only a small subset (10-15%) of licensed professionals hold this standard.
Financial Checkpoint	A free tool available on the RetireUS platform that takes about four minutes to complete. It gives users an assessment on retirement pacing and tax planning and, most importantly, brings out financial red flags.
Financial Consciousness	A state of awareness about one's financial situation. The journey to achieve it involves moving from being "unconsciously incompetent" (not knowing what you don't know) to achieving financial literacy through education.
Green Flags	The desired outcome after addressing financial issues. Red flags are turned into green flags through a process of identification, education, and planning.
Independent Fiduciary	A financial professional who is not tied to a specific financial institution (independent) and is legally obligated to act in the client's best interest (fiduciary). They work for the client, not for somebody else.
Optionality	A key component of Michael Scarpati's definition of wealth. It represents freedom and the ability to choose and create the life one wants without financial roadblocks.
Red Flags	Financial blind spots or areas of concern that can cause long-term harm if not addressed. Examples include not calculating a retirement goal, having investments out of alignment, or having too much market or inflation risk.
RetireUS (retire.us)	A platform co-founded by Michael Scarpati that aims to make independent fiduciary financial planning more accessible. It connects the public with vetted professionals and provides tools like the Financial Checkpoint.
Sandwich Generation	The target audience of the podcast, described as individuals for whom the show aims to help build strong financial habits.
Tax Prioritization	A crucial and often overlooked aspect of financial planning. It involves making strategic decisions about where to save money, as the way the money is taxed will mathematically change the amount of retirement income one ultimately ends up with.
Wealth	Defined by Michael Scarpati as "optionality and freedom." He states it is not limited to finance and includes a level of peace with one's financial situation.