To learn more about how to find a credible financial planner, tune in to today’s podcast or read the complete transcription below. According to Jason, sometimes people with the best financial intentions and good financial positioning get themselves into trouble without realizing it. This is why it’s important to make informed decisions and to know that you are meeting with a neutral advisor. Instead, it might be wiser to file a consumer proposal, where you not only repay less than what you owe on your debts, but you also get to keep your investments. I think it can be short-sighted sometimes to look at an investment account like an RSP and say “Well, I might as well just pay it off. So you might need to pull out $100,000 to be left with $50,000. You have to pay tax on money that you pull out of your RSP. In order to pay off $50,000 of debt, it’s not as simple as pulling $50 000 out of your RSP. ![]() Jason believes it can be a very expensive decision: Be Cautious When Using Investments to Pay Down DebtĪ common question from indebted Canadians is whether they should use their RSPs to pay off their debt. ![]() There’s a lot of my competitors quite frankly out there who cater towards millennials and cater towards people that may not have otherwise been catered to before. I’ve seen more average people, more young people reaching out to people like myself and even the industry I think has felt a gap. You don’t need a minimum net worth to get advice. With a fee only, or fee for service financial planner you are paying per hour, much like you do a lawyer or an accountant. Often you need a minimum investment to participate. Jason says that big investment firms do often cater to high income households. Related: Bankruptcy advice should come from a Licensed Insolvency Trustee What Income Do You Need to Work With a Financial Planner?įee-for-service financial planners charge for their time. What’s more, ask if your financial planner has experience handling a situation like yours. Therefore, to make the most of your visit, get a sense of what you would like to learn about in advance. When you see a fee-only or advice-only financial planner, you are essentially paying for their time, as you would a lawyer, for example. Before visiting a Certified Financial Planner, take a look at your own finances and figure out the questions you want to ask. If you walk into a bank and you ask for financial advice and the only way that person gets compensated is selling TD Bank mutual funds, there’s a pretty good chance you’re going to get sold a TD mutual fund even though debt repayment may be a better option. If you don’t want to be sold a financial product, but just need an honest look at your financial picture, it may be in your best interest to avoid going to a bank for financial advice. It’s a big problem in this country and certainly in this province. ![]() There’s people who call themselves wealth planners and wealth advisors and all these crazy names that you really don’t know what they do.
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