Canadian financial planners are unsung heroes, helping families reach their goals and guiding them through the many financial products and investment choices available. But finding a good one can be challenging. “There’s a lot of ambiguity about who you should work with and what their qualifications are,” says Jason Heath, managing director at Objective Financial Partners. And that’s probably for good reason. There’s a lot of money to be made in selling advice, especially to those who don’t have the expertise or experience to manage their own finances.
In some provinces, anyone can call themselves a financial advisor or planner, and many don’t have any formal qualifications or licensing. But to earn the CFP (Certified Financial Planner) designation offered by FP Canada, financial planners must meet a set of requirements, including passing an exam and meeting education and work experience standards.
Canadian Financial Planners: Crafting Personalized Strategies for Financial Success
Certified financial planners are trained to deal with all aspects of their clients’ lives, from establishing savings and contribution plans to help them reach their retirement goals to working on ways to maximize government pension benefits like the Canada Pension Plan and Old Age Security. They’re also skilled at dealing with estate planning, ensuring the smooth transfer of assets to beneficiaries.
Some planners focus on specific product offerings, such as insurance or investments, which can lead to conflicts of interest when they’re compensated based on the products they sell. Others take a “fiduciary” approach, meaning they’re legally obligated to put their client’s interests ahead of their own.