What's the buzz about having a financial advisor early on?

C&rsquo ;What's the buzz about having a financial advisor so soon?’ /></p>
<p> A financial adviser can help us climb certain levels more quickly. </p>
<p>At the beginning of a career, is it worth consulting a personal finance advisor to guide us in our investments? The answer is neither black nor white. It all depends on our wallet and the person to whom we entrust it.</p>
<p>For his part, Jean-Pierre Gueyie, professor at the School of Management Sciences at UQAM, is categorical: “I recommend that all people who do not have qualifications in finance have recourse to an advisor specializing in personal finance.” </p>
<p>Yes, the fees of such a professional can be high, for the management of your assets, but you can lose more (or pocket less ) without his invaluable advice, according to the professor. </p>
<p>“There are pennies to be collected whose importance is worth paying for the costs.” </p>
<h3> <strong>Never better served than by yourself</strong> </h3>
<p>Hubert Coté Lecoin, founder of the Freedom 45 personal finance podcast, doesn't see things the same way. His response is equally firm: “No, it’s not worth it.” </p>
<p>For him, the management fees are too high.  </p>
<p>“If we decide to invest, for example, $10,000 per year with an advisor, the fees After 20 to 30 years will mean tens and tens of thousands of lost dollars.” </p>
<p>To anyone with an investment portfolio of less than $100,000, Hubert Côté Lecoin suggests stand-alone investments. “In no situation would an advisor give you a better return on your investment than doing it yourself,” he believes. </p>
<p>Good to know: management rates are lower the more money you have. For example, those with capital of $500,000 pay a lower percentage in management fees on holdings than those investing less than $100,000. </p>
<p>To promote investments autonomous, Hubert draws a culinary analogy. People who take care of their own investments are like people who want to learn how to cook. It can be a bit long and complicated before you master the kitchen, but, in the end, you manage to make good meals without spending too much.  </p>
<p>Requiring the services of a counselor is like doing business with a ready-to-eat delivery service. Everything is already done for the client, but it is expensive.  </p>
<p>What Hubert recommends is rather passive investment in exchange-traded funds. “It’s the equivalent of the good old family dinner,” he explains. No need to know how to cook, no need to pay anything, you go to dinner, you sit down, you eat, you have fun.” </p>
<p>This way of investing works, without management fees, in just two or three clicks on any online brokerage platform, such as Questrade or Wealthsimple.  </p>
<p>Continuing with his gourmet analogy , Hubert explains that these platforms work like a grocery store where the baskets are already filled. These are forecast baskets filled with already diversified stocks. It's just a matter of grab one and go home to feast.  </p>
<p>For Hubert, self-directed investing has never been easier than in 2022; that's why he advises not to miss the opportunity. </p>
<p>“If you have someone else invest your first $1000, it’s the equivalent of ask someone to learn to walk for you: you will always be on all fours, ”he illustrates.</p>
<h3 id=< strong>Go further 

But in addition to financial advisors, a term that encompasses anyone who helps you manage your money (broker, insurance agent, employee of your financial institution), there are financial planners who go beyond portfolio management.  

Their work focuses more on the long term by helping clients achieve their life goals. They analyze the company's finances as a whole by considering, among other things, all the legal and tax aspects related to its objectives to be achieved.  

The objectives vary between buying a home, fund a child's education, become self-employed, or move in with a romantic partner. We usually consult a planner for important events in our lives. 

“Yes, it can cost money, but it is an investment that can bring us peace of mind says Chantal Lamoureux, President and CEO of the Institut québécois de planification financière (IQPF). 

Indeed, every service has a cost. Depending on the complexity of the financial situation, the rate – often hourly – will vary. 

You can also shop around for your planner by checking their profile on the AMF website financial markets to make sure of your skills and thus develop a bond of trust. 

The golden rule, according to the CEO of the IQPF, is to have recourse to it earlier late.

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