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Key takeaways:
A financial advisor can be key to helping reach your financial goals, whether you’re just starting out in your first job, have kids heading to university or college, or are eyeing retirement.
But for some people, setting short- and long-term goals can be overwhelming. An advisor can help ease that anxiety and work with you to create a financial plan that’s right for you.
For instance, your advisor can:
- Review your current financial situation
- Help you determine your short- and long-term goals and a strategy and timeline for achieving them
- Provide guidance on which financial products will work best for your goals
Since financial goals rarely stay the same over time, you should periodically review and update your plan with your advisor to reflect any changes in your life.
The value of advice
According to a recent Scotiabank national poll of Canadian investors:1
Nearly 7 in 10 Canadian investors are working with an advisor
What are Canadians working with a financial advisor saying about their advisor:
82%
Understands my specific needs and makes appropriate recommendations
78%
Keeps me on track to meet my goals
71%
Helps me avoid making mistakes when buying and selling investments
64%
Am better off financially than if I managed my money on my own
Here’s some guidance to help you take full advantage of having a financial advisor on your side.
Before you meet with a financial advisor, it’s best to have a clear understanding of your financial picture.
Doing a financial self-checkup first will also give you insight into how an advisor can best meet your unique needs. Here are a few key steps to get started.
Calculate your net worth
To determine your net worth, itemize your assets and liabilities. Knowing what you own versus what you owe is an important step in assessing your financial health and reaching your goals.
Establish a budget
Where does all your money go? While most of us have a pretty clear sense of our income, tracking spending and expenses can often be a daunting task.
To help you get started, you can use Scotia Smart Money by Advice+ or the Scotiabank Money Finder Calculator.
Scotia Smart Money by Advice+ can help you manage your budget. This free tool for Scotia clients2 gives you access to money management features in the Scotia app that can make it easy to track your bills, monitor spending and manage your cash flow. Plus, you'll get personally tailored advice to help you better manage your money.
The Scotiabank Money Finder Calculator can also help you determine if you have additional funds available to put toward your financial goals by comparing your income to your expenses.
Determine your financial goals
Are you saving for retirement, buying a first home or perhaps funding your child’s education? Knowing your short- and long-term goals is your first step toward figuring out how to achieve them. Don’t forget about your dreams for the future – whether that’s a cottage, travelling or whatever makes you happy.
Did you know?
Top 3 financial priorities for Canadians:1
51% Saving for long-term future (retirement)
15% Managing day-to-day cashflow and expenses
9% Saving for a major purchase
1. Prepare for each meeting
To make the most of your advisor meetings, it’s essential to do your homework beforehand. Take some time before each meeting to review your financial goals and make a list of items you’d like to discuss with your advisor. Remember to bring recent account statements, budget plans, relevant tax forms and any other paperwork related to your financial plan.
2. Don’t be afraid to ask questions
It’s important to understand the products your advisor recommends and how they may impact your financial plan. If you have concerns or questions about something, ask for clarification. Your Scotiabank advisor is always happy to explain why they’re suggesting a certain product
3. Become an informed investor
Your advisor will help guide you as you’re building up your savings and investments, but your ongoing participation makes all the difference. Learn about investment products and plans and take an active interest in your portfolio.
Your Scotiabank advisor will direct you to helpful resources to help build your knowledge base. For example, they may suggest you visit our investing essentials centre, which includes articles and short videos to help make sense of key investment concepts and strategies.
4. Stay involved
Make a habit of staying on top of your overall financial picture by regularly logging into your bank accounts, checking balances on loans and keeping an eye on investments. Organize account statements, tax slips and other related documents in a file, and take the time to review your statements when you receive them. Remember to contact your advisor if you have any concerns or questions.
5. Keep your advisor in the loop
It’s important to update your advisor about any changes to your personal or financial circumstances. Major life changes — like marriage, the birth of a child, divorce or the death of your spouse — can have a profound impact on your financial outlook. If they’re aware of these events, your advisor can adjust your financial plan as necessary.
The bottom line
Besides following the advice above, it’s important to be open and honest with your advisor. After all, they’re here to help you work toward your financial goals by providing you with the knowledge, support, and motivation you need to reach those goals — with confidence.
