Top Ten Common Financial Planning Myths

10. My spouse looks after our finances. This stuff is not my department.
• A lot of marital stress has to do with money.
• Our family lives are so busy that we never schedule time to talk about money.
• Both must be involved, both must be committed to goals (ie. Paying off car, saving for a new house, going on a vacation,etc.).
• When both parties are on the same page, a lot of the friction about money disappears.

9. Who has the time to go see a Financial Advisor – between shift work and the family, we just can’t seem to make time to deal with all of this stuff.
• 1 hour to dig up financial records and take an inventory of what you have, what you owe, and what you earn.
• 1 hour of time with your Financial Advisor to discuss your goals.
• 2 hours with your Financial Advisor to discuss your options.
• 4-6 hours per year ongoing maintenance.
• This investment of 10 hours per year maximum could shave thousands of dollars and years off your mortgage, give you a better retirement income, etc. This is better than double time and a half at work!!

8. I don’t understand anything about investing. The last time I tried to learn about it, I just got frustrated. All financial advisors sound like they are speaking Greek to me.
• It all comes down to communication.
• You need to feel comfortable with the advisor you are going to deal with. They say that you should meet with at least 3 Financial Advisors.
• Do not hesitate to get further clarification on anything.

7. I’m in debt, and my finances are a wreck. I’m too embarrassed to let anyone see what a mess my finances are in.
• This is where seeing a Financial Advisor really pays off. There is nothing that we have not seen before.
• Often there are many more solutions than you realize.
• If we cannot help, we often know where you can go to get the help that you need.
• The amount of stress that can be relieved by getting your finances in order is indescribable.

6. I’m not close to retiring yet. I will see a financial advisor when I get closer to retirement age.
• We meet with many people who often comment that “I should have seen you years ago”.
• Many small changes now, can have tremendous positive effects down the road.
• Although it is never too late to meet with a Financial Advisor, the earlier you start the bigger the rewards.

5. If I see a financial advisor, they will tell me that I need to save some huge amount of money every month. I would then have to rearrange my budget, and the fun things would have to go.
• The whole purpose of seeing a Financial Advisor, and putting a plan together, is to find balance – to balance between having a great lifestyle now and being able to afford a great lifestyle later.
• A plan that is put into place that finds you too constricted will never work.
• Almost all the time I see someone, I set up a plan, they have the same, if not more, money each month for the fun stuff. And the best thing is that they can spend their money guilt free – knowing that everything has been taken care of.

4. If I invest with an Investment Dealer, I could lose it all. I would rather deal with the bank where it is safe.
• Your cash and securities are protected, within defined limits, through the Canadian Investor Protection Fund (CIPF). For more details visit the website at www.cipf.ca.

3. I don’t have enough money to see a Financial Advisor. Advisors are for people with lots of money.
• Advisors are for everyone. There may be advisors who have established account minimums – just ask beforehand. Almost all individuals who have a lot of money have it because they have asked for advice over the years. You don’t have to do it alone.

2. Going to see a Financial Advisor costs too much money. They are going to charge me an arm and a leg. How hard can it be – I’m going to look after my finances by myself.
• I can only speak for myself, we do not charge an hourly rate for our time. We meet with individuals, discuss our services, and if you feel comfortable with our approach, then we take it to the next level.
• If someone had need for more complex financial planning, then we gather a lot more information from you, discuss what are your most pressing financial concerns. We then take this information, provide recommendations that would be beneficial given YOUR financial situation and YOUR goals. If our recommendations make sense to you, we simply ask that you ok us to implement the plan for you.
• It’s like building a house. You consult a few architects in town, and then have the one that you fell most comfortable with draw up some house designs. If you want some revisions, you send the architect back to the drawing board. Once a final set of drawings is agreed upon, you can then ask the architect to be your builder, and start framing up the house. A good builder can access all house products so that you can have the best possible house for the most reasonable cost.

1. If I go to see a Financial Advisor, they are just going to try to sell me something.
• The best advertising, in my opinion, is word of mouth. I meet with people one on one, tell them my approach, what I believe in and what services I provide. If I do a great job, you will hopefully advertise to your friends and family with me. It really wouldn’t be in my best interest to “force” you to buy something. That wouldn’t be very effective advertising.
• If you meet with an advisor and you are feeling pressured, you are perfectly within your right to walk out the door.
• Most Financial Advisors are professional and intend to be in this business for a long time. In a community the size of Timmins, it would be professional suicide to run their practice with anything other than complete integrity.