You should see your advisor more often!
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With age, things usually change at a faster pace, and new challenges arise with regard to your financial situation. It is important to see your advisor more often for relevant updates in order to, eventually, change your action plan.
Because of your ever-changing situation and needs, your financial services advisor regularly confirms his data on your profile, especially at each milestone in your life: a wedding, the purchase of a home, the birth of a child,
a new job, a separation, long-term illness, starting a new business, beginning retirement, etc. They must pay special attention to developments regarding older clients, since their situation often changes more quickly. It is therefore not surprising that your advisor would suggest more frequent meetings.
New variables
Indeed, they must consider several new variables. Your investment time horizon being shorter now, for instance, entails a review of your portfolio distribution in order to, in particular, avoid losses in value that may compromise your revenue as a future retiree.
Planning asset disbursement, the need to easily access your funds or a generally lower tolerance to risk must also be addressed.
For example, your advisor may recommend more cautious investments, based on your risk tolerance.
Sudden changes
But that’s not all. Your needs may also take an unexpected turn: a change in your health condition or that of your spouse, the desire to help a child facing financial difficulty or planning a special project, the need to move quickly, meeting a significant other or, on the contrary, a late divorce, the sale of a second home, wanting to start working part-time again, etc.
Several other factors can also have an impact on the strategy implemented by your advisor, such as stock market volatility, legislative amendments to the Québec Pension Plan or the Old Age Security pension, or new tax rules.
These meetings are also an opportunity to check if it’s time to update certain arrangements, including your protection mandate or your will.
In short, keep in mind that your financial situation isn’t permanent, it’s ever-changing. The support of a certified professional is invaluable to avoid unpleasant surprises. Don’t miss out!
About the Investor Profile The investor profile is an essential component when learning about your situation. It helps your advisor, who is recommending an investment or insurance with an investment, to know more about your personal and financial situation, as well as your objectives, and to determine your investment time horizon and your tolerance to risk for each of those objectives. Your advisor will also take this opportunity to assess your financial literacy level. |
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