Tanya Wilson, a Kelowna-based financial advisor with Raymond James Ltd., says clients are less likely to make emotional mistakes when they can see the long-term plan, and know they’ve planned for all contingencies.

When planning for your future, DIY isn’t always the best idea

What’s the value of good advice?

When it comes to your investments, it could be worth your retirement.

Over the years, various “do-it-yourself” firms have suggested people can retire significantly wealthier if they remove the cost of their advisor. Based on two hypothetical investment portfolios with the same rates of return, it considers the difference in growth, with one paying an advisor – typically about 1 per cent – and one not.

Here’s why that argument doesn’t hold up.

What’s omitted from this analysis is the considerable value advisor offers the client.

“We take time to really know our clients – their unique goals, circumstances and personality. We spend a lot of time on financial planning, tax and estate planning, and behavioural coaching – sometimes being a sounding board and other times a voice of reason to clients and their families,” says Tanya Wilson, a Kelowna-based financial advisor with Raymond James.

“We also strategize with clients’ accountants and lawyers, help business owners build succession plans for retirement and conduct family meetings where my clients’ executors and beneficiaries can learn more about their duties and realities.”

The real value of qualified advice

“When markets are going well, low-cost options sounds great. But what happens when markets turn downward and volatility comes into the picture?” Wilson asks.

In late March, with COVID news drastically affecting markets, many DIY investors faced crashing investing websites and long call centre waits. “People desperate about their life savings were scared, with no one to talk to, and were desperate for that human advice. Decisions made during times of fear can seriously impact long-term financial success.”

Independent studies from sources like Morningstar and Vanguard have quantified the value of investment advice at between 1.5 and 3 per cent per year, delivered through strategies including asset allocation, rebalancing, behavioural coaching, tax and estate planning and financial planning. In markets like what we’ve seen in 2020, the value is estimated at closer to 5 per cent.

“With so much news and information coming at investors, I help clients navigate this and concentrate on what’s important,” Wilson says. “My clients have enjoyed considerable peace of mind through this market correction knowing my team is here. I’m very proud of and how well my clients have dealt with one of the scariest market crashes we’ve seen in our lifetimes.”

RELATED READING: Why emotions and investing don’t mix

For Wilson, an investment strategy is based on a personalized financial plan – a roadmap for our behaviour.

“My clients are less likely to make emotional mistakes when they can see the long-term plan, and know we’ve planned for all contingencies. This financial plan helps my clients avoid being lured off course.”

Professional advice can also help tilt a portfolio to become more tactical based on market events. Adding more exposure at certain times in the market cycle and removing exposure at other times can help increase chances of success.

Finally, Wilson and her team also work hard to help clients minimize the taxes they pay. “No different than working with an accountant, the direct tax savings are often significant and more than offset the cost of that advice,” Wilson says.

“All in all, I believe the biggest risk to an investor’s long term financial well-being is the threat of outliving their money. A financial coach to help stay on track and reduce this threat is well worth the small cost of that advice.”

To learn more about planning for your financial future, fill out the raymondjames.ca/tanyawilson/contact-us.aspx or call 250-869-2447.

RELATED READING: Why a comprehensive financial plan is vital in volatile times

Tanya Wilson is a financial advisor with Raymond James Ltd. Information provided is not a solicitation and although obtained from sources considered reliable, is not guaranteed. The view and opinions contained in the article are those of the author, not Raymond James Ltd. Raymond James Ltd. member of Canadian Investor Protection Fund.

Financial planning

Just Posted

Kelowna West MLA elect Ben Stewart addresses a small gathering of campaign supporters at the West Kelowna Yacht Club, shortly after hearing of his riding victory on Oct. 24, 2020. (Photo - Phil McLachlan)
Despite NDP majority, Kelowna remains Liberal stronghold

As several ridings in the Lower Mainland fell to the BC NDP, the BC Liberals retained three Kelowna seats

McCleave is eight years old.
AlleyCats pet of the week

Meet McCleave and Nyx

Renee Merrifield speaking to media on her front doorstep after winning the Kelowna-Mission riding for the BC Liberal Party. (Michael Rodriguez - Capital News)
Renee Merrifield retains BC Liberal Party’s seat in Kelowna-Mission

Renee Merrifield will take over former BC Liberal Steve Thomson’s seat, which he held for the past 11 years

(Norm Letnick)
BC Liberals’ Norm Letnick keeps Kelowna-Lake Country seat

Letnick acknowledged there could still be changes when mail-in ballots are counted

Kelowna West MLA elect Ben Stewart addresses a small gathering of campaign supporters at the West Kelowna Yacht Club, shortly after hearing of his riding victory. (Photo - Phil McLachlan)
BC Liberal Ben Stewart re-elected as MLA in Kelowna West

Stewart said he did not expect the NDP government to win a majority

NDP Leader John Horgan celebrates his election win in the British Columbia provincial election in downtown Vancouver, B.C., Saturday, Oct. 24, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan celebrates projected majority NDP government, but no deadline for $1,000 deposit

Premier-elect says majority government will allow him to tackle issues across all of B.C.

(Google Maps)
Collision closes Highway 97A in North Okanagan

The highway has been closed since early this morning

FILE – Prime Minister Justin Trudeau greets Premier John Horgan during a press conference at the BC Transit corporate office following an announcement about new investments to improve transit for citizens in the province while in Victoria on Thursday, July 18, 2019. THE CANADIAN PRESS/Chad Hipolito
Trudeau congratulates Horgan on NDP’s election victory in British Columbia

Final count won’t be available for three weeks due to the record number of 525,000 ballots cast by mail

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Provincial Green Party leader Sonia Furstenau speaks at Provincial Green Party headquarters at the Delta Victoria Ocean Pointe in Victoria. (Arnold Lim / Black Press)
VIDEO: Furstenau leads BC Greens to win first riding outside of Vancouver Island

Sonia Furstenau became leader of BC Greens one week before snap election was called

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

NDP Leader John Horgan elbow bumps NDP candidate Coquitlam-Burke Mountain candidate Fin Donnelly following a seniors round table in Coquitlam, B.C., Tuesday, October 20, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan, NDP head for majority in B.C. election results

Record number of mail-in ballots may shift results

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

Most Read