The role of the professional financial planner has evolved from its more investment-focused traditions into that of a trusted coach focused on financial and life goals. TD Wealth financial planners share insights on how they coach their clients on the common challenges they face when beginning their financial planning journey.
Shelley Smith, CFP, Senior Financial Planner, TD Wealth Financial Planning
When I first meet with a client, it’s important for them to understand that financial planning takes work. It starts with a detailed plan and a willingness to commit to that plan. However, it is important to remember that we don’t need to go from 0 to 60 overnight. Just like a personal trainer wouldn’t recommend an all-out cross-fit, muscle-strengthening routine on your first day at the gym, I wouldn’t expect someone to start implementing advanced planning techniques in the first week. As a financial planner, it is my job to work closely with my clients to determine reasonable and attainable goals and celebrate wins (big or small) on the path to achieving those financial goals. If you are meeting with a financial planner for the first time, have a serious heart-to-heart talk with yourself and understand what goals are most important to you.
Fred Zhou, CFP, Senior Financial Planner, TD Wealth Financial Planning
Complexity is the enemy of execution, and in my opinion, this is especially true when it comes to financial planning. Often, investors are told to “build a balanced portfolio with equities, fixed-income and ETFs,” but from my experience, a lot of people don’t even know what that means. If hearing investing jargon makes you scratch your head, you are not alone! For a lot of my clients, when they begin their financial planning journey, they simply don’t understand what they are investing in and, more importantly, why they are investing in one thing over another. As a financial planner, I believe we are educators first and foremost: it is our job to educate and teach our clients so they fully understand their portfolio; keep things simple and always focus on the why.
Nicolas Brazeau, F.Pl., Financial Planner, TD Wealth Financial Planning
In my experience, the biggest hurdle clients face when starting their financial planning journey is establishing clear, precise and goal-oriented objectives. It is important to know your investment horizon, as well as how you want to use your investments in the future (retirement, big purchases, down payment, etc.). Once you understand both your long-term and short-term financial goals, working with a financial planner can help you reach those goals by providing guidance on the best investment vehicle(s), like an RSP or TFSA, as well as the tax implications and benefits that each has. Having a financial goal also helps keep your plan on track and can help you avoid costly mistakes, like changing or selling your investments at the wrong time.
Produced by Randall Anthony Communications. The Globe’s Editorial Department was not involved in its creation.