Tanya Wilson, a Surrey-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.

Tanya Wilson, a Surrey-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 an 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 Surrey-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 sound great. But what happens when markets turn downward and volatility comes into the picture?” Wilson asks.

In late March, with COVID-19 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 my clients navigate the noise 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 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 your 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 you 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 604-659-8258.

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. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. 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 planningInvesting

Just Posted

The COVID-19 test centre at Peace Arch Hospital is located on the building’s south side. (Tracy Holmes photo)
South Surrey woman calls for consistency in COVID-19 post-test messaging

‘Could we just get one thing straight?’ asks Deb Antifaev

Tom Jackson and bassist Kirby Barber in a trailer for "The Huron Carole," from video posted to youtube.com.
Tom Jackson’s ‘Huron Carole’ concert in White Rock goes virtual to feed hungry Canadians

Surrey broadcast date of Blue Frog-recorded show is Friday, Dec. 11, to benefit Surrey Food Bank

Fentanyl test strips are designed to work in seconds and give a person a negative or positive sign that fentanyl is present in a substance. It also works with other analogues such as carfentanil. (Photo: ASHLEY WADHWANI)
21 people died of overdoses in Surrey in October

Provincewide, more than five people died a day from overdoses

Surrey City Councillor Linda Annis and her dog Randi (foreground) bring toy donations to Saverio Lattanzio of Surrey Firefighters Association (holding toy) and fellow firefighters. (submitted photo: Pace Group)
Firefighters’ ‘Drive-by toy drive’ for Surrey Christmas Bureau, as SuperChefs cooks up kits

‘It’s been a particularly tough year for so many of our Surrey families’

File photo
Surrey RCMP investigating death threat against councillor Hundial

‘On Monday morning I received a threat on messenger that basically said to put a bullet in me,’ Councillor Jack Hundial told the Now-Leader

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

Barrels pictured outside Oliver winery, Quinta Ferreira, in May. (Phil McLachlan - Black Press Media)
B.C. Master of Wine reflects on industry’s teetering economic state

Pandemic, for some wine makers, has been a blessing in disguise. For others, not so much.

Most Read