Fear can be a barrier keeping people from seeking financial guidance, Mr. Mitz says, making it difficult for them to start the process of saving towards retirement.
“Many people put off seeking advice because they assume financial planning is complicated, or they feel embarrassed that they are behind,” Mr. Mitz says. They may feel unprepared because they haven’t taken the time to plan. “In fact, the moment someone says to us, ‘I haven’t done anything yet,’ is where we most love to get involved. It is where financial advisors can have the most meaningful impact.”
An Imperial Service advisor is an accountability partner, he says, and when clients are able to share planning responsibility with a trusted partner, it can make the tasks feel less daunting.
A big part of the process involves creating an action plan for clients, says Mr. Mitz. Having a plan in place creates structure to balance things like debt management, short-term savings needs, and long-term financial goals.
“It’s not just a financial plan,” he says. “[It’s] the steps and the corresponding timeline that are necessary to achieve your goals.”
That plan can change along with the client, Mr. Mitz says. At some points in a person’s life, the focus might be on paying down debt, while at other times, retirement savings should take centre stage. Unexpected challenges — such as a job loss or health issues — can change priorities and require adjustments to the plan.
For example, an advisor might help their client create a cash flow plan to adjust their spending habits or decrease debt payments by consolidating them into a lower-interest line of credit. In a client’s later life, it might be about maximizing registered retirement savings plans — RRSPs — and tax-free savings accounts — TFSAs — to reduce taxes and putting together an estate plan.
Each client is at a different place in their lives, he adds, “so we meet them where they’re at,” whether they are just getting started or need specialized expertise to meet more complex planning needs.
Mr. Mitz adds that consistent actions can make a big difference when saving for retirement. “Many people do not realize that even modest, regular contributions can grow significantly over time. The key is to start and stay consistent.”
