Aging population, reconstituted families, new technologies: the world of today has nothing to do with that of the year 2000 or even 2010. Changes in society have a big impact on people’s needs in terms of of personal finance. Financial planners must therefore continually learn to remain relevant.
Posted at 8:00 a.m.
Aging at home or in a residence for the elderly with the costs of the different options and the tax measures offered: this is an example of a training topic that was particularly popular during the annual conference of the Institut québécois de la patrimoine financière ( IQPF) held in September.
“With the aging population, it is very important for financial planners to be able to help their clients assess their cost of living based on the choices they will make,” says Chantal Lamoureux, President and CEO of the IQPF.
She also notices that more than ever, people need to be accompanied.
PHOTO EDOUARD PLANTE-FRÉCHETTE, LA PRESSE ARCHIVES
Chantal Lamoureux, President and CEO of the Quebec Institute of Financial Planning
A lot of things have changed in the last few years, the markets have fluctuated a lot, inflation has increased greatly and people have to stay focused on their long-term goals, but they need advice, reassurance, therefore the approach of the financial planner must be very human.
Chantal Lamoureux, President and CEO of the Quebec Institute of Financial Planning
The personalized advice is also what distinguishes the financial planner from the robot. “Tools that use artificial intelligence are the allies of financial planners because they process data instantly and allow us to spend more time doing other analyzes and focusing on relationships,” explains for his part. Bernard Fortin, financial planner and chairman of the board of directors of the IQPF.
More specialization
To give relevant advice that really allows the financial planner to stand out, many specialize. For example, a reality that we saw less of a few years ago and which is currently experiencing a great boom is the transfer of businesses.
PHOTO PASCAL RATTHE, THE SUN
Bernard Fortin, Financial Planner and Chairman of the IQPF Board of Directors
“Since there is a large volume now, we also see a lot of more complex cases, so more and more financial planners are deciding to specialize in the field,” notes Bernard Fortin, who is also vice-president, marketing and management. assets, at the Professionals’ Financial.
The IQPF is in the process of creating a training program so that financial planners can better support their clientele of entrepreneurs in this important step. “The transfer of a business comes with a host of extremely important questions that the entrepreneur must ask himself, starting with how much his business is worth, to whom to sell it and also what he will do afterwards, explains Chantal Lamoureux. With his global vision, the financial planner has a big role to play and he can help his client find the right specialists at the right time. »
The demographic curve also means that many people are now moving to the disbursement stage of their investments, after years of accumulation. “It takes a lot of planning, especially since people are living longer than before,” she adds.
Estate planning is also an element of financial planning that has come into prominence recently.
We see a lot of people now who want to give in their lifetime to see their children benefit, so taxation becomes particularly important for them. For example, if they donate their cottage to their children, there will still be tax payable on the market value of this cottage.
Jean-Philippe Vézina, financial planner and tax specialist at Jean-Maurice Vézina
We must also consider that the nuclear family is no longer the norm as it was 50 years ago.
“In blended families, you have to think about the children of the first union in the succession, but also protect the new spouse,” adds Jean-Philippe Vézina, who is also a lecturer at Laval University in estate planning. “Many clients won’t raise these questions spontaneously, but it’s important to find the right tone to open the discussion with them and, if necessary, refer them to a notary. »
Consider the emotional component
Moreover, the notions of behavioral finance are taking more and more place in the practice of financial planners. “You have to understand that people have emotions and that they will influence their behavior,” explains Jean-Philippe Vézina. This sometimes leads them to make decisions that are not the fairest. »
The classic example is when markets go down and people want to withdraw their investments in panic. And on the contrary, when the markets are doing well, people have a return and want to invest more. However, unless there is a particular situation, it is the opposite that must be done to maximize its long-term return.
“Understanding how emotions influence our clients helps us guide them better,” adds Jean-Philippe Vézina.