5 reasons why your family needs a financial advisor

If you think that the effect of your financial life remains within the confines of your bank account, think again.

A study[1] has recently proven that the perception of financial wellbeing (that is, feeling secure about the current state of your finances, and the future) can affect you equally as strongly as your job, your primary relationship, and your physical health. Despite this fact, very few of us take the time to create effective financial plans that will support us into the future, and fewer still take the time to initiate an ongoing relationship with a trusted advisor.

Though 54% of Canadians report having a financial plan, a third of them admit that said plan lives solely in their head[2]. This means that their idea of a financial plan is likely just a budget- which isn’t nearly as wide reaching as it needs to be to support long-term success. An effective financial plan should include:

– Investment planning
– Insurance and risk management
– Financial management
– Retirement planning
– Tax planning
– Estate planning
– Legal aspects

Here is where a financial advisor adds value. They can bring to life a financial plan that has depth and perspective, offering support that is unbiased, informed, and innovative.

Here are 5 big ways that a financial advisor can create positive change within your family:

1) Tailor-made solutions
Your financial advisor will first gain an understanding of your unique situation. They’ll take the time to sit down with you and ask about your financial history, your current circumstance, and your goals for the future. The strategies they provide will be developed as a direct result of your specific objectives.

2) Adding perspective
A financial advisor provides a third party perspective. Often, when we’re too close to the subject at hand, our ability to craft innovative strategies is impaired. Your financial advisor will bring new ideas to the table, based on their knowledge and expertise. If your family has been “getting stuck” on a challenge you’re experiencing, bringing in an additional perspective can help you break through the rut.

3) Neutral advice
Often in family business scenarios, we get caught up in our old experiences and allegiances. Rather than making the best decisions for the future, we choose sides based on political factors. A financial advisor is able to help your family navigate the decision making process without the weight of the past. They can provide a completely unbiased and neutral opinion, based on business factors alone.

4) Experience-based advice
A financial advisor will have experience dealing with the issues you’re facing. They have years of experience helping clients just like you to make smart financial decisions, and they use that experience-based knowledge to provide you with the best advice possible.

5) Harmonizing generational differences
In family businesses, one of the most common struggles is the difference in opinion between the generations. The younger generation may think the older doesn’t understand the current market expectations; the older generation may think the younger is too risk tolerant. A financial advisor can be a sounding board for the whole family. Since they are not on anyone’s “side”, they can approach conflicts outside of emotion, and discover opportunities for compromise and agreement.

Zeifmans: Your family financial advisor

The team at Zeifmans is uniquely equipped to provide your family with financial advice. Not only do we have professional financial experience, but given that we are a second-generation family business ourselves, we have a unique understanding of how to best support the family dynamic.

For 60 years, we’ve assisted our clients through all stages of the business life cycle, guiding them towards the decisions that create wealth to sustain a legacy. To learn more about our financial advisor services, read Planning Your Legacy: A guide to preserving and growing your wealth and contact the Zeifmans team today

[1] New York Times, “Why You Should Hire a Financial Planner, Even if You’re Not Rich,” https://www.nytimes.com/2018/04/20/smarter-living/why-you-should-hire-a-financial-planner.html

[2] Financial Post, “When it Comes to Your Financial Plan, Think Process, Not Product,” https://business.financialpost.com/personal-finance/retirement/when-it-comes-to-your-financial-plan-think-process-not-product


Q&A with Partner, Jennifer Chasson

Q&A with Partner, Jennifer Chasson

With over 25 years of experience and 100+ successful transactions under her belt, Partner, Jennifer Chasson, brings invaluable expertise to the table. Whether it’s guiding as an advisor, mentor underwriter, ...