Winnie Sun is the co-founder and managing director of Irvine, California-based Sun Group Wealth Partners. A member of the CNBC Financial Advisor Council, Sun is a regular media on-air contributor for a variety of local and national programs. She is the host of the digital TV show "LevelUp With Winnie Sun," the weekly personal finance #WinnieSun tweet chat and the "Yes Factor" podcast on the LinkedIn Podcast network.
Sun recently shared her thoughts on a number of savings and investment topics ahead of the CNBC Financial Advisor Summit on June 15.
The following interview has been edited for length and clarity.
CNBC: Given all that's happening right now – the interest rate environment, the macroeconomic climate, the debt ceiling debate, stubborn inflation, a possible recession – what is the most important advice you're giving clients this year?
Sun: The most important advice we are giving our clients right now is to stay aware of the current market environment but prepare for more challenges ahead. It's important to let our clients know that it is to their benefit to communicate with us when they are worried, even outside of a scheduled portfolio review. We want to talk through how our clients can stay in control and on course. We also don't shy away from tough discussions. Preparation for many involves adding more to secure and liquid investments while also continuing to contribute towards long-term financial goals through auto-saving structures and proactive measures. We are actively encouraging both.
CNBC: One of our themes this year is the psychology of financial advising. How do you help clients navigate big financial decisions that are also extremely emotional ones — loss of a loved one, loss of a job, or even something like inheriting a windfall?Â
Sun: This is such an important topic, and I'm grateful that it is being discussed. As financial advisors, it is crucial for us to not only hear but truly listen to cues of stress and emotions from our clients. While we may perceive a financial decision as clear and straightforward, our clients may still feel hesitant. There are underlying truths and emotions behind their reservations, and it presents an opportunity for us to ask questions humbly and gently in order to understand their concerns better.
I have personally experienced loss during the pandemic and have faced job insecurity in the past, but it doesn't mean that I fully comprehend the unique challenges and emotions that each client may be going through. The most important thing we can do is to listen and continue listening, until trust is established and the client feels ready to make decisions at their own pace. From my experience, most individuals simply want to be heard and appreciated, and we can serve as that supportive person when we engage in private conversations with them.
Join the virtual CNBC Financial Advisor Summit on June 15 where top advisors, investors, market experts, technologists, and economists will discuss the market risks ahead, potential buying opportunities and tools advisors can use to generate consistent returns while minimizing downside. Learn more and register today.
CNBC: If you had one piece of financial advice for young people just starting out in their careers, what would it be?
Sun: My one piece of advice for those who are just starting off in their careers is to find someone you can talk to and trust. Look for someone with whom you have a connection and who possesses more experience in the areas where you could benefit. I love meeting clients when they get their first job and we can talk about what a 401(k) is, what a Roth IRA can do, and more.
When it comes to your finances, seek out a financial advisor who will guide you as you embark on your journey and with whom you can grow as your wealth picture evolves. Starting on the path to financial independence is crucial, and the earlier you begin, the better.
CNBC:Â On the flip side of that, what advice would you give to those approaching the end of their careers who feel they don't have enough saved for retirement?
Sun: If you don't feel like you have saved up enough for retirement, you're definitely not alone. However, it's time to determine the extent of the shortfall. Instead of allowing stress and fear to consume you, take a proactive approach.
When we meet with a client interested in retiring, we start by calculating the retirement planning numbers. Once you have a clear understanding of your financial situation, you can make informed decisions regarding potential solutions. This might include considering a — temporary or not — side hustle to generate additional income; adjusting your retirement plans or timeline; or exploring alternative options such as downsizing to a more affordable home or location. With a well-defined game plan in place, you will experience reduced stress and gain a more realistic perspective of what retirement will be like for you.
CNBC: Looking into your crystal ball, what is something that gives you hope for the future? What gives you pause?
Sun: The young people of today give me tremendous hope for the future. When I talk to my own kids, I see their passion for life and their understanding of the importance of being responsible, good humans and of course, also the importance of planning and saving. They genuinely care about others and possess a strong moral compass. They demonstrate responsibility and kindness in their actions. Their characteristics and values fill me with incredible hope for a brighter tomorrow.
What gives me pause is the prevalence of numerous vocal individuals in the news and on social media who actively seek to divide rather than unite people. It seems that many have become less concerned about the well-being of others compared to just a decade ago.
