The Question That Is Rarely Asked

After speaking with many clients and potential clients over the years, a pattern emerges in the direction that the interview takes. There is often a sense of give and take with the client wanting to get certain questions answered in their mind, giving out small bits of information, but withholding the rest as if to keep control of the situation. Perhaps there is a sense that full and complete disclosure can be used against them since information is often thought of as power.

Alternatively, the client may realize that they need assistance in meeting their goals but do not want to truly admit it, or more importantly, do not want to make any changes to their financial habits, hoping that the financial advisor can figure out a way to help them get what they want without having to make any sacrifices in terms of cutting their spending or changing their current lifestyle.

Basically, the question that is rarely asked by clients is: “What do I need to do to be financially healthy, stable and successful in terms of meeting my goals in life?” In other words, what are the basic things that any successful member of our society needs to do to master the financial aspect of living?

There have been many books written on this subject, but the basics rarely change and are often resisted when brought up by an advisor.

The most basic rule is live on less than you make! The easiest way to become reasonably wealthy is to first save your way to financial success. There is no magic bullet, or shortcut. Once you have achieved a certain level of savings or assets, then managing and growing your money becomes more important than the savings habit.

Case in point, if you save $2,500 per year, this increases your assets a lot if added to $5,000 in savings, but does not increase them much if you have $250,000 in savings. As a rule of thumb, once your savings are equal to three times your annual income, then investment returns become more important than the rate of savings as a percentage of your income (but keep living on less than you make!).

Often clients think they can pick and choose what they can do. For example, they agree to save for an emergency and for a house, or RRSPs (retirement) but decide that they do not want to allocate cash flow to a solid risk management program. One client said he did not see what the return was for the money he was spending on his term life and critical illness programs. Then why did he spend money on car insurance and professional liability insurance and fire insurance for his office?

In short, saving money, allocating your cash flow properly and exercising diligence are the very basics that need to be put into place in order to get to the financial stability you want in life.

Call our office today for a full review of your financial affairs. Once everything is in order, you can focus on the more exciting things in life!



Do you have questions about your finances?



Contact our office today!

Copyright © 2016 AdvisorNet Communications Inc., under license from W.F.I. All rights reserved. This article is provided for informational purposes only and is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

What our clients are saying...

  • We valued receiving a detailed report and explanation of our finances. When working with a financial planner, we expect to have our questions answered with adequate detail and to have a plan developed to help grow our money. Our expectations were clearly met and we would be happy to recommend Anthony to anyone looking for a Financial Plan.

  • We valued the fact that you sat down with us, heard what we wanted to say, asked for clarification and offered suggestions, and then came up with a detailed and well-reasoned plan in a short period of time and communicated that back to us so that we knew what we needed to do moving forward. Thanks!

    Our expectations for a financial planner are several fold: (1) Does the planner communicate well, in that they both listen but also offer suggestions and ideas in a clear easy-to-understand way, (2) Are they able to meet their client at the same energy/level and meet their specific needs? In our case we needed a tax minimization strategy within a short turn around time. (3) Did the planner actually do their job, in that were they able to provide ideas and suggestions that helped address the client's asks?

    We came to see you because we realised that we hadn't looked at how to minimize the taxes related to my Father’s estate planning and my mother’s future financial planning, and you were able to tell us things that we didn't know about, and offered us solutions that helped us with our future financial planning.

    You definitely met our expectations! In some ways, you actually exceeded our expectations. We were hoping that you could respond quickly, and you came up with a detailed and well-reasoned plan faster than we expected!

    Our only area of improvement we could think of was, given that the plan was very detailed, if we had an explicitly spelled out action plan with a timeline for completion.

    We are very happy and would definitely recommend you to our family and friends and in fact have already done so!

  • Anthony made the process very clear and explained each step along the way. He was very honest and straight forward. My expectation from a financial planner is that they are honest and transparent. Anthony definitely met my expectations and I would be happy to recommend him to my family and friends.

  • When working with a financial planner our expectations are to maximize our investments and have a solid plan for retirement. We now have a greater awareness of our current portfolio and options to best protect our estate. We were provided with good information to use in order to make better investment and estate planning decisions. We would gladly recommend Anthony to our family and friends.

  • We value the personal service and detailed explanations we receive from Anthony on an ongoing basis. We feel comfortable recommending Anthony to our family and friends as he is someone who we can trust and has our best interests in mind. He has been great at helping us work towards a comfortable and manageable retirement.

  • The financial planning process we went through was clearly outlined and explained to me. I wanted to have a better understanding of my financial position and to know whether I could retire early or not.

    I am happy to recommend Anthony to my family and friends.