Taking Your Own Advice

Retirement is a topic that we talk about every day with our clients,?but how about with ourselves and our spouses? We help clients leverage and maximize their RRSPs and TFSAs, but have you done the same for yourself? Lastly, there’s good and bad debt that you ensure your clients know how to handle, but do you take your own advice?

Many advisors say they cannot afford to retire. Or they ask, why sell my book when I can get more by simply keeping it going? Although you can do that, is it fair to the clients that you’ve serviced for decades? Is it fair to your spouse to keep working every day into your golden years? What about the travel plans or cottage time you promised but never got around to?

My recommendation to advisors is to take your own advice.?Remember to pay yourself first and pay down your debt. I have maximized my RRSP and TFSA contributions,?and I have two advisors that I’m downsizing my business to. That’s my main priority – transitioning my business – for the benefit of the clients that I have so gratefully serviced all these years.

What happens to clients of advisors who don’t have a solid transition plan in place? Chances are they would walk down the street to their local financial institution with their mutual fund and seg fund statements, life and critical illness insurance and GMWB contracts and say “Help! My longtime advisor is no longer available.” What does that bank or credit union do? Hypothetically speaking, they would likely transfer all your carefully constructed investment plans to their proprietary products or ignore them altogether. This would leave your client worse off, with a disconnect between their investment and insurance plans.

Secure a future for yourself and your clients. I implore you to plan for your retirement, create a succession plan, and always take your own advice.