Value of using a Financial Advisor
The value of having a financial advisor is in the knowledge and advice they provide in all aspects of your financial life. For many people “Financial Advisor” is a confusing term, and all too often related only to investment advice.
A professionally accredited advisor, Certified Financial Planner (CFP), will, through a simple six (6) step program, help you develop a life-long financial plan. A Plan, that, in it’s simplest form, identifies your present situation, defines short, medium and long-term goals, and reports back to you on a consistent basis how you are doing in relation to those goals.
While the process itself can be described as relatively simple, life itself is not. The emotional and personal issues involved in making financial decisions can, and often are, the cause of being unable to fulfill your ultimate goals and expectations.
It’s when you have these issues before you that the role of the financial advisor is defined. In confidence, your advisor will help you determine all the possible solutions and their outcomes and without bias recommend one that best suits your needs.
Here are some examples of just a few of the issues that you can discuss with your Financial Advisor:
- Stock Portfolio vs. Mutual Funds.
- Should I set up a Corporation or operate as a Sole-Proprietor?
- Education Savings Plan or “in-trust for” accounts for my children?
- What should my Will say?
- Is it better to buy on credit or pay cash?
- Do I have my Personal Directives in the event of a medical emergency?
- What type of Life Insurance should I own - Term or Permanent?
- What is the difference between earning Interest, Dividends or Capital Gains on my investments?
- Am I paying too much Income Tax?
- Is it better to renew my mortgage for 1 year or for 5 years?
- Which would be more beneficial - - pay down my mortgage or contribute to my RRSP?
- How do I protect my cash flow in the event of an accident or sickness?
- How do I protect my Estate from Government taxes?
Ultimately, the value of your advisor is one of trust - by paying attention to and caring about who you are, and where you want to go in life. That trust is earned by consistently providing knowledgeable, objective advise. Our goal is to earn that trust.
John M. Fahie, CFP, CLU, CH.F.C.
Kent Wiebe, CFP, CLU, CH.F.C.