When it comes to families, it's important to focus on understanding and gradual progress
Ask someone to compare branch advice with independent firms, and they’ll probably say that branches are generally more fast-paced. Aside from reported pressures to generate sales, advisors in banks have to deal with many accounts and provide lots of services. That makes it difficult to devote significant time to help clients — which is why David Maynard decided to switch gears.
“I started off in banking, and I’ve always been interested in the investment side of the business,” said Maynard, a financial advisor at Investia Financial Services. “I ended up on the financial-planning side because I like being able to help people take something that’s pretty complicated and simplify it, explain it to people, and help them get motivated with it.”
Like many professional planners, Maynard has multiple credentials under his belt. Aside from being a CFP, a CIM, and an accredited mutual fund advisor, he has taken multiple courses to become a certified cash flow specialist. That’s particularly important for his clients who generally come from the family market.
“Usually the challenge is managing their cash flow,” he said. “There are so many demands on their cash resources, and so many temptations that they can end up losing track of the goals that they want to get to. Cash management is one of the toughest things, but it’s key to succeeding with your plan.”
Because of the courses he’s passed, Maynard has a firm grasp of the thinking that most people base their spending decisions on. That helps him advise people in a patient and understanding way. “My education lets me work with the psychology behind how clients spend their money, as opposed to just saying ‘here’s your budget; stick with it,’” he said. “I also help people with tools and skills to be able to manage their money and say ‘nope, I don’t need that right now.’”
Aside from resisting the urge to just tell clients what budgets they should follow, Maynard believes advisors should not be too quick to provide advice. In his experience, it takes a couple of meetings for him to learn enough about their priorities, goals, desires, and situation before he can formulate a financial plan or a cash flow strategy. Taking the dynamics of a family or couple into account is also important. “I like to talk, but it’s more important to shut up and listen before you start talking,” he said.
One other thing that cannot be rushed is the implementation of the financial plan. Most plans require long-term thinking because they can only be accomplished over time. “You could just say ‘you should just do that — do it all now.’ Well, most people can’t,” Maynard said. “They don’t have the resources to do that, nor do they have the ability to wrap their head around it and do it. Take it incrementally, solve the most important things first, and keep going from there.”
Of course, long-term plans face one major risk: sudden disruptions. Drastic changes in a client’s lifestyle, movements in the markets, and regulatory changes can affect people’s saving and investment strategies.
“Right now, the taxation changes being proposed are something that I’m paying a lot of attention to,” he said, referring to plans floated by the federal government to restrict tax benefits currently enjoyed by Canadian private corporations. “I have to keep an eye on them to understand how they will be implemented and understand how they will affect my clients.”
Maynard said his business-owning clients have felt frustrated with the changes proposed, saying that it seems there’s a war being waged against small businesses in Canada. More recently, the federal government has announced plans to lower the small-business tax rate from 10.5% to 9% by 2019.
However things play out, Maynard believes that people generally can have more control over their financial future than they think. They just need to understand their situation clearly, which means advisors have to do two things.
“Listen to your clients,” Maynard said. “And speak in a language they understand.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Will new passive income rules be beneficial to businesses?
The road less travelled
“I started off in banking, and I’ve always been interested in the investment side of the business,” said Maynard, a financial advisor at Investia Financial Services. “I ended up on the financial-planning side because I like being able to help people take something that’s pretty complicated and simplify it, explain it to people, and help them get motivated with it.”
Like many professional planners, Maynard has multiple credentials under his belt. Aside from being a CFP, a CIM, and an accredited mutual fund advisor, he has taken multiple courses to become a certified cash flow specialist. That’s particularly important for his clients who generally come from the family market.
“Usually the challenge is managing their cash flow,” he said. “There are so many demands on their cash resources, and so many temptations that they can end up losing track of the goals that they want to get to. Cash management is one of the toughest things, but it’s key to succeeding with your plan.”
Because of the courses he’s passed, Maynard has a firm grasp of the thinking that most people base their spending decisions on. That helps him advise people in a patient and understanding way. “My education lets me work with the psychology behind how clients spend their money, as opposed to just saying ‘here’s your budget; stick with it,’” he said. “I also help people with tools and skills to be able to manage their money and say ‘nope, I don’t need that right now.’”
Aside from resisting the urge to just tell clients what budgets they should follow, Maynard believes advisors should not be too quick to provide advice. In his experience, it takes a couple of meetings for him to learn enough about their priorities, goals, desires, and situation before he can formulate a financial plan or a cash flow strategy. Taking the dynamics of a family or couple into account is also important. “I like to talk, but it’s more important to shut up and listen before you start talking,” he said.
One other thing that cannot be rushed is the implementation of the financial plan. Most plans require long-term thinking because they can only be accomplished over time. “You could just say ‘you should just do that — do it all now.’ Well, most people can’t,” Maynard said. “They don’t have the resources to do that, nor do they have the ability to wrap their head around it and do it. Take it incrementally, solve the most important things first, and keep going from there.”
Of course, long-term plans face one major risk: sudden disruptions. Drastic changes in a client’s lifestyle, movements in the markets, and regulatory changes can affect people’s saving and investment strategies.
“Right now, the taxation changes being proposed are something that I’m paying a lot of attention to,” he said, referring to plans floated by the federal government to restrict tax benefits currently enjoyed by Canadian private corporations. “I have to keep an eye on them to understand how they will be implemented and understand how they will affect my clients.”
Maynard said his business-owning clients have felt frustrated with the changes proposed, saying that it seems there’s a war being waged against small businesses in Canada. More recently, the federal government has announced plans to lower the small-business tax rate from 10.5% to 9% by 2019.
However things play out, Maynard believes that people generally can have more control over their financial future than they think. They just need to understand their situation clearly, which means advisors have to do two things.
“Listen to your clients,” Maynard said. “And speak in a language they understand.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Will new passive income rules be beneficial to businesses?
The road less travelled
