Page 11 - A Canuck's Guide to Financial Literacy 2020

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Step 5 – Working with Your Advisor

If the number of investment choices has you feeling overwhelmed or you’re not comfortable
managing your own investments, you could think about working with a Financial Advisor.
There are many reasons why investors choose to work with an advisor such as:

▪ No Knowledge
If you’re not comfortable choosing your own investments, then we suggest that
you might want to work with a financial advisor. Advisors can help you with your
investments, managing your spending and savings, managing debt or more
complex situations such as estate planning, insurance planning, and tax
planning.

▪ No Time
There are only 24 hours in a day and life is always busy. If you don’t have time
to actively monitor your investments, you might choose to have an financial
advisor do this for you.

▪ No Interest
Many investors would rather just have someone manage their investments for
them. They may have no interest or desire to monitor the portfolios day to day.

Choosing an Advisor

We recommend that you ask friends, family, co-workers and other professionals you trust
such as your accountant or lawyer for referrals. Make sure that you interview more than one
advisor as what may be good for your friend may not be good for you. It’s important that the
advisor you choose can help you achieve your goals and objectives. You can also contact
your local securities regulator to find out who is registered in your area. The Mutual Fund
Dealers Association of Canada (MFDA) and the Investment Industry Regulatory
Organization of Canada (IIROC) can give you a list of registered member firms. You can
also contact the Investment Counsel Association of Canada (ICAC), the Financial Planners
Standards Council (FPSC) or the Institut Québécois de planification financière (IQPF) for
additional information.

Things to Keep in Mind

During the interview process, pay attention to the advisor’s qualifications and experience
and make sure that the individual you are interviewing is registered with your local securities
regulator. A good advisor will be very interested in your financial situation and goals. They
should come up with a plan on how they’ll help you reach these goals. It’s important that the
plan is reviewed at least once a year.