Greg Pollock, president and CEO of Advocis, says in a recent op-ed that the current market has led to a diversification in the role of financial advisors.
Inflation leads to unplanned cost-of-living increases, which can push people to handle their money in ways they may regret later on.
Clients, says Pollock, may think it’s a smart short-term move to sell off investments, take money out of accounts that have penalties for earlier withdrawals, or make large gifts to family members, undermining the family’s financial security.
In such cases, he says, an advisor can help by being the voice of reason, helping them see through the tough times.
Advisors aren’t just seasonal resources, Pollock says: they can also impart more short-term advice and share resources on financial literacy tools, such as budgeting.
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Weathering inflation is tough, he says, but financial advisors have the tools to help clients get through these hard times.
“During times of uncertainty, a diversified portfolio is key,” Pollock says. “Through investment in sectors that have historically proven their ability to preserve value during inflationary periods, advisors can help guide their clients into safer waters.”
Such a strategy may require an overall shift and change to the client’s financial plans, he notes, but that’s where the advisors with specialized designations, such as Professional Financial Advisor and Chartered Life Underwriter, are key.
Educating Canadians about professional qualifications is important to establishing trustworthy and professional relationships between clients and advisors, Pollock says.