Advisors work with clients to determine how much they can afford to borrow, the amount of their down payment, the best mortgage type (fixed or variable rate, term, principal) and how they can meet mortgage payments without increasing their mortgage payments. to sacrifice. lifestyle.
Knox warns homebuyers not to invest their money in stocks if they need it for a down payment soon. It’s tempting to try to earn returns rather than leaving your money in cash, but short-term market volatility can reduce your nest egg just when you need it. Instead, consider opening a high-interest savings account (HISA) or purchasing a guaranteed investment certificate (GIC).
Need investment advice
Many Canadians turn to financial advisors for help with their investment portfolios. These advisors have different payment models; some only charge for advice and others manage clients’ assets for a fee.
Knox is a pay-only consultant: clients pay for her time and expertise, and she receives no revenue from third parties. She helps clients assess the suitability of their portfolios based on their goals, risk tolerance and time horizon. Knox also offers general asset allocations and helps clients consider the tax implications of different asset allocations when using unregistered investment accounts.
Knox also works with investors to improve their behavioral trends. For example, she says, “If someone wants to make risky investments but has a high propensity to sell in the face of market volatility, that’s something we would talk about.”
Buying an investment property
If you want to become a real estate investor, an advisor can help you determine how an investment property fits into your overall financial plan. Is it used for capital appreciation? Do you plan to live on the rental income during your retirement?
By running the numbers for such scenarios, a consultant can help you figure out whether buying real estate is a wise investment — and how to manage the ongoing costs of owning income real estate.
Tips needed for paying off debts
Debt happens to most of us, and it can happen more than once in our lifetime. Managing debt can feel like a burden. Whether you have credit card debt, a student loan, a mortgage or car payments, a financial advisor can develop a debt repayment strategy. From generating a budget to cutting expenses, they will find ways to save money.
This post How financial advisors can help at different stages of life
was original published at “https://www.moneysense.ca/save/financial-planning/how-financial-advisors-can-help-life-stages/”