Figuring out how to achieve financial goals is a challenge for most Canadian families. A professional planner helps to navigate the options and build a plan for the future.iStockPhoto / Getty Images
Working with a professional financial planner – an expert who provides the “human touch” – is more relevant and important than ever for Canadians dealing with increasingly complex lives and financial decisions.
The big-picture trends that have transformed the Canadian economic and social landscapes in recent years translate to real-life stresses and struggles for individuals and their families. The trends include burgeoning consumer debt, longer life expectancies, more people delaying retirement and the emergence of baby boomers as the “sandwich generation.”
The boomers, whose sheer size has influenced societal trends for decades, are playing a key role in influencing the growing demand for professional financial planners, says Cary List, president and CEO of FP Canada, a national professional body dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning.
“The parents of boomers are getting well into their nineties, which is creating a significant financial and life burden that ties into financial planning in significant ways,” says Mr. List. “The ‘sandwich’ in this equation is the fact that more boomers also have adult children living with them or otherwise depending on them financially to some degree.”
The children of baby boomers, the millennials, are also facing challenges, he says. “Their lives are far more complex than previous generations. They are more likely to be members of the gig economy, with no fixed employer or company pension plan, and they also have different values related to money.
“Financial planners recognize they need to be equipped to deal with the needs of consumers at all stages of life.”
Consumers are facing not only conflicting priorities and tough money decisions, but are also trying to deal with overwhelming amounts of information.
“For the older consumer in particular, the increasing variety and growing complexity of financial products can be very confusing,” says Jocelyne Houle-LeSarge, president and CEO of Institut québécois de planification financière (IQPF) – a partner of FP Canada.
More of the routine calculations will be done by a computer program, so the financial planner will have more time to be a true guide to their clients ...
— Jocelyne Houle-LeSarge, president and CEO of Institut québécois de planification financière (IQPF) – a partner of FP Canada
The emergence of “fintech,” digital planning tools powered by artificial intelligence, adds to the complexities, says Ms. Houle-LeSarge.
“These digital tools don’t replace human beings; in fact, the human aspect of the relationship is more important than ever,” she says. “More of the routine calculations will be done by a computer program, so the financial planner will have more time to be a true guide to their clients, to accompany them on their journey and to really listen to their concerns. A computer won’t listen to you.”
Although media and advertising tend to place disproportionate emphasis on investments, getting on track towards financial wellness requires much more than a well-managed investment account. A professional financial planner examines a client’s entire financial picture and provides guidance on not only investments, but also all of the other critically important pieces of the financial puzzle that are typically ignored by automated investment platforms, such as taxes, insurance, debt, retirement planning and estate planning.
The value of working with a professional financial planner also extends far beyond their technical knowledge and skills. Planners add value to their clients’ lives by helping them navigate complex and often sensitive financial decisions, says Ted Rechtshaffen, Certified Financial Planner and president and CEO of TriDelta Financial.
“People’s finances are a very emotional topic, and professional planners know how to handle multiple sensitive topics,” he says.
A planner also takes the time to get to know their clients, developing an understanding of their aspirations for the future and the things that are most important to them. For many Canadians, Mr. Rechtshaffen says, the biggest concern is, “Am I going to be okay financially or am I in trouble?” A financial planner understands the importance of attaining peace of mind, and helps their clients build a plan that lets them live life more confidently.
“The answers can’t be found on a spreadsheet – it takes a human being who is a true partner,” he says.
The financial planning profession is continuing to advance and evolve to meet the needs of Canadians as they struggle to navigate an increasingly complex maze of financial decision-making.
New courses are being offered through the FP Canada Institute, as well as through IQPF, to help professional financial planners develop the skills to provide holistic planning, recognize the human dynamic in planning, and serve clients according to the highest standards of ethics.
“We have worked to more thoroughly focus on the human skills required of financial planners,” says Mr. List. “These are areas such as relationship management, good communication, and psychology and behavioural economics – all backed by the latest research.”
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Produced by Randall Anthony Communications. The Globe’s Editorial Department was not involved in its creation.