What Is Financial Advice And Why Is It Important?

MDRT Blog | Sep 8, 2020

An advisor’s value is in the advice!

The value of a financial advisor is not in selling products or selecting investments. Value is in “all we can do to help clients accomplish a goal not based on a portfolio,” said David M. Blanchett, CFA, CFP, head of retirement research – Morningstar Investment Management.

“Retirement income is incredibly complex; however, advisors can help clients create more income and think about these different risks,” Blanchett.

Financial advisor
Find hidden roadblocks to client goals

If you are nearing retirement and want to protect your assets or just starting a family and want to set aside funds for family protection from financial burdens, financial advice can help make sure client goals are met!

Financial advice refers to the management of a person’s wealth and assets through wise financial planning and investment solutions. The goal of a financial advisor is to protect and grow client assets. It is a fiduciary duty to always act in the best interest of the client, to accomplish client goals by developing sound, long term investment strategies.

A money manager can manage clients’ investment portfolios, with little focus on client needs and goals and all the variables that impact. An advisor uncovers the variables that may impact the forecast for clients’ retirement income needs.

Some variables
  • Annual spending needs?
  • What is the life expectancy?
  • How long will the retirement last?
  • When does the client stop working?
Solution based advice
  • Tax liabilities
  • Risk management
  • Return of the portfolio or asset
The importance of Financial Advice

Professional financial advice is important because it provides added oversight to financial investments when making financial decisions that can likely impact the rest of your life. Unwise decisions could potentially affect your financial situations for years, if not decades! A financial advisor takes each client’s goals as an individual through various simulations and does more than manage investments, ensuring wise decisions and sound investments.

Financial Advice vs Asset Management

The two terms might sound similar but are distinctly different. The former is based on fiduciary duty while the latter is primarily a function of maximizing the value of the assets under management. Financial advisors’ base recommendations on goals, fees and charges associated with the investments – not the priorities for asset managers.

As a licensed financial advisor it is my fiduciary duty to act in the best interests of my clients under all circumstances.

As a financial advisor at Desjardins I look forward to meeting you and understanding your goals and needs.

As a professional in the field of insurance and investments, my understanding of people's goals and aspirations has created a lasting bond over two decades. The key to their success has been my passion for excellence.

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