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  • Jenna Trollope

The Effect of an Advisor

People looking at financial reports

How many times have you given your friend some advice, and they ignored it and repeated their old patterns? Or maybe you have tried therapy but forgot to implement new techniques after you left the session.

Growth takes time, and we must be accountable to create change.

Is your financial advisor worth it?

Every advisor will have a variation of a fee-based approach or assets under management (AUM) fee structure. They will walk you through what they charge and the services they offer during a consultation where you can determine if the relationship will be a good fit. Every advisor will have strengths, and you should be comfortable sharing where you stand and where you hope to be so they can create a holistic plan.

The value of an advisor is in their ability to hold you accountable to your financial goals and keep you on track when emotions can get the better of you.

They say emotions can get the better of us, and when we are stressed or scared we can make rash decisions. For instance, many of us have heard the investment advice "buy low, sell high", but none of us can predict the market as well as we hope. When we see a trend in the market, we typically do the opposite of what we are told. When we see positive gains in our investments, we are inclined to invest even more and when the market has a downturn, we sell our investments out of fear. Neither behaviour will maintain positive returns in the long run, but it can be difficult to stick to your financial plan when emotions impact decisions.

If your finances stress you out, your mental and physical health could be suffering. A financial advisor can build confidence in your finances and help better manage

those stressors. Whether it be saving for retirement, creating an estate plan, or minimizing taxes, investors with an advisor are more confident than investors without. The older you get, the more complicated your life and financial situation. It can help to have someone in your corner to manage the big financial decisions in life when your emotions can get the better of you.

An advisor is an impartial third party to help you assess your goals as life changes and keep your finances on track.

They can break down how to increase your monthly cash flow and determine how to invest in registered accounts. They can help you identify opportunities to increase your income and mitigate tax. They can help mediate discussions about money with your family to ensure you are on the same page and working toward a shared future.

Take a look at the full advisor effect and how a good advisor can help you:

a chart showing the advisor effect


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