What can a wealth management advisor do for you?

04 November 2024 by National Bank
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Wealth management advisors can help you gain an overview of your finances. They can advise you on your assets, liabilities and banking services to help you reach your financial goals, maximize your wealth and maintain your peace of mind. Here’s how these specialists can help you achieve your life goals.

What is wealth management?

With so many financial choices available to you, managing your assets effectively can be a challenge. Fortunately, wealth management advisors can make it easier. These specialists can help plan and optimize your assets – both throughout your life and even after your death. They provide non-judgmental support, regardless of your age, personal situation or budget: their only priority is to help you achieve financial independence and carry out the projects close to your heart.

What’s the role of a wealth management advisor?

These financial specialists are familiar with different types of investments, estate planning and relevant regulatory changes. This diversity of expertise enables them to draw up a 360° plan that reflects your personal values and investment risk tolerance.

What’s the difference between financial advice and wealth management?

Financial advice is about proposing investments in line with current market conditions. Wealth management, on the other hand, involves developing an overall, long-term vision. Wealth management advisors have extensive expertise and take all aspects of your finances into account to make the most of your assets. That said, both share the common aim of helping your assets grow.

What services do wealth management advisors offer?

  • Financial planning: Before making any recommendations, your advisor will draw up a financial balance sheet. They’ll analyze your budget, debts, savings, investments and life insurance coverage to develop a financial plan that takes all your goals into account.
    Your advisor will also determine the best short-, medium- and long-term tools for maximizing your tax benefits. For example, they may suggest that you contribute to an RRSP or FHSA to reduce your taxable income. They might also advise you to put money aside in a TFSA or RESP to finance your children’s or grandchildren’s post-secondary education.
  • Portfolio management: Your advisor will help you establish your financial goals over various time horizons and determine the amounts you need to set aside as well as the investment strategies you need to adopt to achieve them. You’ll be better equipped to carry out your plans and sustain a comfortable lifestyle after retirement.
  • Banking solutions: Your advisor will recommend personalized banking solutions to optimize your day-to-day transactions, whether it’s a savings account, a line of credit, a home equity line of credit, a credit card or other prestige products with specific advantages.
  • Insurance: Your insurance needs will vary at different stages of your life. During your working years, you may want the security of salary or critical illness insurance to maintain your income in the event of unforeseen circumstances. Your advisor can put together a comprehensive plan to protect all your assets.
  • Philanthropy: Philanthropy isn’t just for people with substantial financial resources or those approaching retirement. Interested in making a donation to an organization or cause that’s close to your heart? Your advisor can guide you through the process.
  • Estate planning: Your advisor can help you draw up an estate plan. They can also provide support during discussions with family members. This essential step will save your loved ones unnecessary hassle and unpleasant surprises when you’re no longer around.
Image representation of the benefits of a wealth management advisor.

What are the advantages of working with a wealth management advisor?

Personalized advice

Your needs are unique, so your wealth management advisor’s recommendations should be too. They can tailor their advice to your personal situation. For example, if you’re planning to buy a second home and/or travel during your working life or after retirement, they can include these projects in your financial planning and help make them a reality.

Multidisciplinary expertise

Your wealth management advisor has investment expertise, as well as a good understanding of every factor that can affect your financial situation. This valuable knowledge enables them to make informed recommendations adapted to your needs.

Optimized investment strategies

As you probably know, diversified investments are the key to achieving and maintaining good financial health. Your wealth management advisor can help you maximize your returns by diversifying and balancing your portfolio according to your risk profile. If you receive extra money, such as an annual bonus at work, they can find the best way to make it grow.

Risk anticipation and management

If you’re going through a difficult time, you shouldn’t have to worry about your financial situation on top of it. In drawing up your long-term financial plan, your advisor will consider the unexpected and ensure your assets are protected. For example, if you have to work part time or quit your job to look after a sick relative, this could have a significant impact on your finances. Your wealth management advisor will consider this possibility when making their recommendations.

Long-term support

Your advisor will support you throughout your life. They’ll adjust your financial strategies in line with your changing goals and circumstances, such as marriage, divorce or the birth of a child.

Greater financial resilience

The support of an advisor can help improve your confidence and financial well-being, especially in times of uncertainty. A study by the Financial Resilience Institute (external link) confirms that people who’ve entrusted their financial planning to a specialist feel less stressed about money and experience greater financial resilience.

Higher returns

If you rely on the expertise of your advisor, your investments could grow even more. According to a study by the Centre interuniversitaire de recherche en analyse des organisations (CIRANO), Canadians who followed the recommendations of financial specialists accumulated more assets after 15 years than those who didn’t seek advice.

How do you choose a wealth management advisor?

To ensure the person you entrust with managing your finances is competent and trustworthy, there are a number of things to keep in mind.

What should you look for?

  • Choose an advisor with recognized certification and solid experience in wealth management.
  • Make sure their expertise is tailored to your specific needs. For example, in wealth management and transfer, property investment, financial investments, etc.
  • Consider their ability to clearly explain their recommendations, avoiding financial jargon, so that you can fully understand the proposed strategies.
  • Make sure they propose a global strategy that includes your finances, the transfer of your assets, etc.
  • Research their reputation, whether by asking friends and family for recommendations, reading online reviews or asking for their current clients’ testimonials.

What questions should you ask them?

  • What are your qualifications? What is your work experience?
  • Are you affiliated with a financial institution?
  • How do you earn commission?
  • What is your approach to wealth management?
  • What are your specialities or areas of expertise?

Take the time to meet with a wealth management advisor from your financial institution or an independent firm. They can help you achieve your financial goals by proposing personalized strategies tailored to your needs. This long-term planning will help reduce your financial stress and strengthen your resilience.

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