Retirement planning is more than just opening an RSP or contributing to a pension plan through your employer. There are life changes, tax implications, short term goals, current cash flow, risk tolerance questions, and much more to consider. Establishing a strong relationship with a financial planner can help you focus, keep you on track, and ensure that someone is equally invested in helping you achieve your retirement goals.
Working with a planner should be thought of as a relationship, one where you are working together to help you achieve your financial goals. Both sides have roles and responsibilities that impact and drive the plan. You as the client need to provide clarity about what you expect from the relationship and what your expectations are for your retirement accounts. The advisor has an obligation to provide you with accurate advice and to keep up to date on current trends and changes that may impact your plan.
As with any relationship, the key to having a successful one is communication. Your planner should try to connect with you and get to know what drives you and your retirement goals, whether that is to travel, to take up a new hobby, or to spend more time with family and friends. Every individual’s retirement goals are different and an advisor that takes the time to understand what is important to you and personalizes your plan is a valuable asset to have.
I recently had a member in my office that was looking to make a major purchase, something that became available unexpectedly and the prospect of owning it was very special to them. This client was afraid how this would impact retirement if money was taken from various investments. Reviewing the plan and running the numbers for retirement was only a part of the conversation. Knowing the importance of this hobby and other lifestyle factors lead to a much fuller discussion with this client. They walked away with not only the options, but also an example of how having that strong relationship can benefit you and your goals.
It is also important that you as a consumer have the confidence in the professional abilities of your chosen planner. FSRA (Financial Services Regulatory Authority of Ontario) has recently introduced regulations that set up a framework for the minimum standards of education for financial professionals. You have the ability to look up your advisor and see what credentials they hold and know that they are actively supervised and held to a high standard within the industry. This can give you the peace of mind that you are working with a trusted professional and someone that is working with your best interests in mind.
There should be an effort from both sides to have clear and honest communication about expectations and your financial situation. It is also important that both sides keep each other up to date on aspects that can impact the plan. Whether that be a job change or a new baby; market downturn or regulatory changes—your plan is constantly changing and adapting as life changes around you.
The most important aspect of any client-planner relationship is trust—and you build that trust by establishing a strong relationship. Start with an introductory meeting, do not be afraid to ask questions, and start building that relationship. A customized financial plan, that changes with you, can help you see where you stand at every stage leading up to retirement. A trusted planner will be there for all those stages and help you sleep at night knowing you are on the way to reaching those retirement goals.
Isn’t it time we talked about your financial future?
Talk to one of our advisors today.
Note Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.
.
