Do You Need An Advisor

Financial Planning. Of course, you know what it is. Right? Your friends have a planner, but you never needed one. In fact, maybe you have not actually thought much about how a Financial Planner would help.

As a Certified Financial Planner, I will share with you the key reasons to deal with a financial planner.

What do we do? 

My job is to help you understand what you have, what you need, and navigate the many financial decisions to help you reach that destination. 

1)    We help you make the best decisions, when they come along, on any financial decision and to ensure that you take all the right steps to maximize the money you have. This means paying less tax, protecting what you have, and ensuring it lasts as long as you do.

2)    You know what you should do, but you don’t always do it. This pandemic has shown the true cracks in many people’. Many people are extremely well educated when it comes to money. Many feel they can make good decisions for themselves. However, these same people often need somebody to help keep them on track. You can know a lot but applying this knowledge can be tough when it is to do with your own finances.

3)    Having a sounding board to help keep the couple finances on track. With differences of opinion, an advisor can be worth the weight in gold! Helping you both to see the big picture and avoid getting caught in the challenges when there are different money habits. When do people choose to use an advisor? Usually when they have a big decision to make. Maybe it is having a baby, getting married, receiving an inheritance, or being terminated from your job. 

An advisor often understands your options, ensures that you are considering them for the long-term, and not just getting caught up in the emotional side of the issue at hand. 

We also help recognize that small steps can make a big difference in 10 to 20 years. Ensuring you save a small amount when you can, establishing good habits, and therefore enabling you to focus on living and automated good financial practices so there is less to plan later, because you took all those small steps along the way.

Is there a cost? Yes, you can hire a planner and pay a fee. It can be a separate relationship, where a review is done of your income, retirement, investment assessment and insurance and estate planning.

You can use a financial planner who is also involved with assisting with investment decisions. Ensure they are well versed in both or have a team with different complements. Some people believe this can be a conflict of interest, however, if you are paying planning and investment fees directly, then advisors are required to adhere to a standard code of ethics. 

An advisor gets to understand your good and bad habits. Many of us react to money in different ways. Life is complicated, and investment and planning keep getting more complicated. Why not have somebody in your corner? Keeping up with the constant changes to investments, markets, taxes, and the conflicting challenges between couples can be tough. You have a common goal, but often have a different approach to getting there. An advisor can often help manage a difficult conversation on these subjects, and help increase family communication about money, about planning, about the legacy that you want to leave. 

Last, and most important, we are accountable to you. By ensuring you do what is needed to meet your financial goals. We remind you, we meet regularly, we update you and ensure that we adjust the plan as needed. 

Over time, it has been proven through many reports that using an advisor increases your net worth. Why…because by doing things when you should, by having somebody help ensure you stay on track, save a little more, and keeping you motivated, you are far more likely to meet those goals and be able to survive, even thrive any sudden change of plans thrown at you.

Do you need an advisor? Well, I think most people do, but I am biased. Are you saving regularly? Do you know what you need to do each year to protect your assets, to reach your next financial goal, and to ensure you are able to stop working sometime? Do you have conflict with money in your family? If any of these are priorities for you, then you will likely benefit from using one.

And of course, get an advisor now, before the next big crisis. That way, you are already better positioned to manage it, and have a relationship established. This will ease the stress of that next big decision, no matter what it is. One of the best resources for finding an advisor is the CFP website, FPCanada.ca.

Find one in your area that provides services that are a complement to your needs. Good luck meeting your financial goals.

Janine Purves, CFP?, CPCA, CCS a Senior Financial Advisor with Assante Capital Management Ltd., works with individuals and business owners in wealth creation and management. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Insurance products and services are provided through Assante Estate and Insurance Services Inc. For future questions about this article, or a complimentary copy of “Retirement Stress Test” contact Janine at (905)707-5222 x22 or e-mail [email protected].