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Mar 20, 2023reading time icon6 min

Why consult a financial advisor?

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Why consult a financial advisor?
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Managing your finances can be complex, especially if you are not an expert in the field. Fortunately, a financial advisor or planner can help.

The role of a financial advisor includes analyzing your financial situation and proposing savings and investment solutions tailored to your needs. They are an important ally in many situations, whether you are just starting your adult life or are on the verge of retirement.

Why should you consult this professional? We'll tell you more.

Five reasons to consult a financial advisor

There is every reason to consult a financial planner to advise and guide you through the various aspects of your finances. Here are a few:

1. More assets and better investments

It's a proven fact: a consumer who is accompanied by a financial professional accumulates far more assets when well advised. By using a trusted financial planner, you will have more money to carry out your projects and effectively reduce the amount of your debts.

Indeed, a financial security advisor can help you to invest in the right account (RESP, TFSA, RRSP, etc.) at the right time to get the maximum benefit. They will guide you through the most tax-efficient ways to invest your money. You'll get more money for every dollar you invest by making wise use of tax refunds, interest rates, grants, etc.

Do you have a partner? Your advisor can also help you consolidate your investments with those of your partner, always with the aim of obtaining worthwhile tax advantages.

Consulting a financial advisor is always a good idea

2. A fully personalized financial plan

Each individual has their own financial, personal and professional situation. Your financial advisor will therefore adapt to your circumstances in order to establish a credible and personalized plan that will enable you to achieve the goals you have set for yourself. They will also take into account your risk tolerance to offer solutions that match your situation.

These experts can help you establish a plan for different goals, such as:

  • Making a list of your financial priorities.
  • Reducing your debt;
  • Improving your savings habits;
  • Choosing the most advantageous financial products for you, among the thousands of products available;
  • Choosing the right type of investment based on your risk tolerance;
  • Saving money to buy a house;
  • Developing a financial plan prior to the arrival of a child;
  • Planning your retirement;
  • Succession planning;
  • Maintaining focus on your goals;
  • Reviewing your current financial plan to adapt it to your changing circumstances;
  • Etc.

In other words, whatever your short-, medium- or long-term goals, a financial planner will help you create a plan that suits your needs.

A financial advisor can help you establish a plan for different goals

3. Better risk assessment

Not all investments carry the same level of risk. A financial advisor knows this better than anyone. They will be able to explain what a risky investment is and will make sure to understand your investor profile so that they can advise you accordingly. They can also help you to:

  • Understand financial planning;
  • Answer your questions at every stage of the process.
  • Evaluate the risks of each investment;
  • Determine if your portfolio needs to be repositioned.

Your financial advisor can also help you to better predict and manage external risks, such as a job loss, disability, death, etc. They can also help you to create an emergency fund, which will be very useful in case of unforeseen events.

Financial markets are constantly on the move. Your financial advisor will keep a close eye on this for you and assess the impact of current trends on your investments and financial plan. In addition, the advice of a financial planner will allow you to avoid making any financial mistakes that can arise from a rash decision.

Indeed, the media and social networks can quickly influence our decisions. But just because a type of investment is suddenly very popular, it does not mean that it is necessarily a good fit for you. By discussing this with your financial advisor beforehand, you can get the facts straight and make a more informed decision.

A financial advisor analyse the market for you

5. Ongoing support

It is not enough to look after your financial portfolio just once. You have to put time and energy into it, be disciplined, and re-evaluate your strategy when your situation changes... Fortunately, your financial advisor will accompany you through the years to make your life easier and help you stay focused on your financial goals, whatever they may be.

How to choose your financial advisor?

Have you decided to discuss your finances with an advisor in your area? You need to find the right professional for you!

Depending on the type of advice you need, it is possible to find a financial advisor by different means, such as via:

  • Banks, caisses populaires and credit unions;
  • Insurance companies;
  • Mutual fund dealers;
  • Financial planning companies.

Moreover, do not hesitate to compare several professionals and ask questions. This will help you to identify which expert is best suited to your needs.

Finally, you can also check that the advisor you choose is a member of the Chambre de la sécurité financière (CSF) and that he or she is indeed authorized to practice in Quebec by the Autorité des marchés financiers (AMF). 

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