Saving for retirement and managing your money can be frustrating. Many of us face a similar long-term problem when it comes to managing our wealth: we need to save enough of it in our working years to meet our uncertain retirement needs. Save too much and you sacrifice too much in your working years, save too little (or manage it poorly) and you risk running out of money before you pass away.
This seems like a simple proposition, but like many things in life, it’s not as simple as it first seems. Understanding financial jargon, making decisions under uncertainty, managing market risk and cycles, minimizing taxes, and doing it all in an efficient and cost-effective manner is not easy. While some possess the time, skills, knowledge, and desire to do it themselves, this approach is not for everyone and can have discouraging results when it’s applied by those lacking the skills to consistently execute it.
When seeking the services of a professional wealth advisor it can be difficult to find the right fit; it is important to understand that different educational and licensing requirements provide many different options for investors, and that financial firms are different. For example, if an advisor is licensed only with the Mutual Fund Dealers Association (MFDA), they are limited to talking about mutual funds, whereas if they are licensed with the Investment Industry Regulatory Organization of Canada (IIROC), they are licensed to offer you a much broader range of financial solutions.
One of the most important elements in choosing a wealth advisor is matching your approach and style of investing with that of your advisor. Understanding the kind of advisor you are working with and the firm they work for are critical when making this assessment. Asking the right questions up front can save you a lot time and energy later. If you don’t understand financial jargon, or know the right questions to ask, we recommend speaking with someone you trust that knows and can help.
Saving for retirement and managing your money does not have to be hard. If you feel that it is or you are getting frustrated by your results, it might be time to consider some professional assistance.
For more detail about MFDA licensing, please see www.mfda.ca/about/
For more detail about IRROC licensing, please see www.iiroc.ca/about/
