The value of financial advice

Why working with a financial advisor makes sense – now more than ever

With the growing popularity of robo advisors in recent years, you may wonder if working with a financial advisor is still worthwhile. After all, especially for younger investors, robo advisors offer an affordable, hands-off investment approach, with lower account minimums.

While robo advisors can be a useful service, they take a one-size-fits-all approach. And while that may work for many investors, it doesn’t work for all.

As you get older and your portfolio becomes more complex, the holistic advice that only a financial advisor can provide is invaluable in helping you reach your financial goals.

Adding value with financial advice

Here are 6 specific ways in which working with a Richardson Wealth Advisor can add value by helping to minimize your financial stress and maximize your net worth.

1. Holistic financial planning.

A holistic plan goes far beyond just the numbers; it’s a goal-driven approach that covers every aspect of your financial life. Your advisor starts with identifying your key financial objectives – saving for a downpayment, funding your children’s education, or planning for retirement, for example. They’ll also consider your values, goals and experiences with money, balancing your needs with potential risks and what’s happening in the markets so you can grow and protect your savings.

2. The right product advice.

Once your financial plan is in place, you’ll need to decide how to invest your money. Consider your investment objectives, your time horizon and how much risk you can accept. Your advisor will work with you to find the right products to invest in, balancing what life stage you’re in with how the markets are doing. 

3. A solid retirement plan.

The key question to answer is ‘when’. Your advisor will help you figure that out, and create a plan to get there. We’ll match your sources of income with estimated expenses, allowing us to circle milestone dates, so you stay on track. 

4. Leaving a legacy.

You want the wealth you leave behind to go to the people and causes you love. An advisor will help ensure you transfer your wealth and legacy efficiently, considering tax implications and maximizing your gifts to heirs. Backed by our team of tax and estate specialists, we can also help you develop a detailed estate plan – that can include determining the best approach for your will and choosing an executor – which you can take to your legal professionals.  

5. Minimizing tax.

Minimizing your tax liability is a crucial part of an overall wealth plan. After all, taxes can have a significant impact on return. With help from our tax and estate experts, we’ll design a tax structure that allows you to keep more of what you earn and maximize your investment growth.

6. Targeted advice for business owners.

As a business owner, you have unique financial challenges. We’ll help find the ideal structure for your business, develop wealth and succession plans, manage cash flows, and credit proof your wealth. Our team of professionals will create a wealth plan that looks at your entire financial picture and provides simplicity – so you can focus on what you do best.

Money and stress

In challenging times and during volatile markets, collaborating with a financial advisor makes even more sense. A 2022 survey ^[1] indicated that the pandemic increased financial stress for 58% of Canadians, yet that percentage is lower among those who work with a financial professional.

When times are tough, an advisor’s historical perspective and unbiased guidance can help you avoid making emotional decisions that may not be in your best interest. And, by creating a long-term strategy aligned with your goals, risk tolerance and time horizon, your advisor can help you minimize loss during a market downturn.

Make sure your prospective advisor is the right fit

One of the best ways to find an advisor is through referrals from friends, family or colleagues, but you should still do your own research and find the best fit for your unique situation.

• What are your qualifications?
  An advisor must be registered with a securities regulator – you can confirm credentials through the Canadian Investment Regulatory Organization (CIRO) or the Canadian Securities Administrators (CRA).
• How much experience do you have?
  Ask your advisor about their industry experience and qualifications and take note of whether they are backed by an established firm which can give you access to valuable tools, technology and support.
• What products/services do you offer?
  Ask your advisor about the range of services, products, and advice they are qualified to offer, and whether they have access to partners who can provide additional advice in areas like tax and estate planning, or insurance.
• What is your investment philosophy?
  Your advisor’s interests should be aligned with yours when it comes to decisions about how your money is invested. Ask them to explain the principles or strategies they use to guide their decision-making process, and the types of clients they work with. 
• What costs will I incur?
  Your advisor must provide full visibility into their compensation, your costs, and a clear understanding of the value of the advice and services that you can expect to receive from them.
• How will we work together?
  Do you want a hands-on approach, or someone who makes the decisions for you? Do you prefer to meet frequently or only as needed? Your advisor should support the way you’d like to approach managing your portfolio.

Ready to create a financial plan that fits your goals – and evolves as you do?

With our advisors, you’ll get a unique strategy tailored to you, built in your best interest. We’re not part of a huge institution with separate agendas and products to sell. Our advisors only have one goal: to help you create, protect and pass on your wealth.

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Wealth strategies that matter.

Explore wealth strategies that our advisors are putting into practice everyday.

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^[1] 2022 Financial Stress Index Survey Results (fpcanada.ca)

^[2] OMNI Report: FPSC Cross Country Checkup Oct 4 2018

^[3] 2020RP-04.pdf (cirano.qc.ca)

^[4] FP Canada 2022 Financial Stress Index