I discovered my first gig in February 2020, just weeks before the COVID-19 pandemic hit Canada and the world. I used to be lucky – the job gave me the chance to flex my entrepreneurial muscles at an organization that needed exactly that.
One of my earliest memories of my interactions was a monthly ritual: A colleague opened a letter from his financial institution and sighed with either relief or quiet frustration. It was the settlement of his Registered Retirement Savings Plan (RRSP). He was just just a few years away from retirement and was open in regards to the ups and downs of his investments depending on how the market performed that month.
What struck me most was not the wins or losses, but the best way he was disconnected from the method. At some point he had outsourced his financial future to an advisor. He had taken his foot off the gas and hoped that faith and time would carry him into retirement.
Another conversation that I remember clearly took place over lunch with a friend. I recently mentioned that I learned in regards to the advantages of maximizing my RRSP. She laughed, not out of humor, but in disbelief. She was in her 50s and said nobody – not her accountant or her financial advisor – had ever pointed her in that direction. It was only after asking around and realizing how lots of her classmates were doing their best that she modified direction.
These two moments, amongst other things, shaped a deeper belief that I hold today: You cannot hand over in your financial future. Not to a system and never to knowledgeable advisor, regardless of how experienced or well-meaning they’re.
Demand more out of your advisor
To be clear: I value financial advisors and hire one. But unlike many Canadians, I do not see them as a proxy. They’re partners and which means I’m still driving. I check the markets daily – to not make each day decisions, but to orient myself. It’s just like looking within the mirrors while driving and provides me perspective and allows me to soundly check my position on this planet.
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There are times once I completely withdraw. I’ve made it a habit to take a seat out the marketplace for 60 days yearly – not permanently, not emotionally, but strategically. I forgo my daughter’s and spouse’s TFSAs, RRSPs, and even RESPs when the noise is simply too much and the levers are too many. I do it because I’ve learned that sleepless nights are costlier than short-term gains may very well be value. And I had to coach every recent advisor the bank assigned to me to grasp this. Our first meeting at all times features a conversation about my need for rest and the worth I place on an excellent night’s sleep.
A script guide isn’t any help
These stories form the backdrop to a recurring frustration: all too often, it seems like financial advice is scripted. Many advisors depend on language templates shared in training manuals or repeated in investment podcasts. They apply it broadly. It seems like they’re running on autopilot. The intention could also be good, however the result’s discouraging.
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Instead of taking the time to grasp the nuances of an individual’s circumstances, many counselors depend on well-worn phrases. That’s why I began keeping an inventory of probably the most common and frustrating things financial advisors say. Here are five that I wish got here with a conversation reasonably than a script.
Five clichés I wish counselors would not use
Here are five common expressions that advisors often use and that usually replace conversations reasonably than enhance them.
1. “Time in the market is better than timing the market.”
That’s good advice. But it’s enough to listen to it once.
Customers who need to actively take part in their financial future are usually not necessarily attempting to beat the system. But the moment they ask deeper questions or express caution, the counselor’s default position is to reel them back in with that phrase. It can feel like a warning, not a dialogue. This often interrupts the conversation.
2. “Let’s Look at your starting point.”
No, let’s not. Starting points are useful for tracking growth, not for rationalizing losses.
Preserving capital just isn’t at all times the goal. When I opened my RRSP I had lower than $500 in it. Years later, I built up a meaningful emergency fund with my contributions. So when the market crashes, it isn’t helpful to listen to, “Well, you’re still further along than you were when you started.” That’s like telling a marathon runner who’s been training for years that a half marathon continues to be higher than sitting on the starting line.
3. “Ultimately, it’s your decision.”
Of course it’s – but when this phrase is used in its place, it often comes across as an excuse reasonably than an indication of respect.
Sometimes customers make decisions based on emotional realities or external constraints that do not fit the chart. If you trust your advisor, they need to guide you thru discomfort and never back away from the conversation when things get complicated.
