Focusing on “relationships” was the strategy adopted by Francis Paquette, financial planner and specialist in responsible investment at Caisse d’entreprises solidaire Desjardins.
“The first role of the financial planner is to listen and then reassure by recommending certain financial strategies. In many cases, my clients’ financial plans were still working and very minor adjustments were required. People who are well supported in managing their finances and who have an established plan fare much better in difficult times. »
When returns turn red, reminds Mr. Paquette, it may also be wise to review your investor profile.
PHOTO SYLVIANE ROBINI, PROVIDED BY DESJARDINS
Francis Paquette, financial planner and specialist in responsible investment at Caisse d’ économique solidaire Desjardins
This is a perfect time to make sure investments are properly positioned. It’s one thing to say you’re willing to tolerate a 15% drop in your investments and another to actually experience it. If the profiles are not adequate, a plan can be established to gradually modify them.
Francis Paquette, financial planner at Caisse d’entreprises solidaire Desjardins
For the coming months, he says, financial planners can recommend to their clients who are more “tight” to redo their budget to better control expenses and then “work to optimize the allocation of their savings”.
Everyone tasted it
Regardless of age, everyone has suffered the repercussions of the significant decline in traditional assets, estimates William Laberge-Cloutier, financial planner, mortgage broker and partner at Ta Planif, in Estrie.
“The main fear of clients who are retired or approaching retirement was high inflation and the effects on their retirement plan. They had to adjust. For younger clients, we talk more about budget management. Even now, younger people have to do good budget planning because of inflation and high interest rates,” he says.
In these moments of instability, financial planners were called upon like never before, recognizes Mr. Laberge-Cloutier. Review of the retirement plan, the budget, implementation of management tools and meetings to help savers manage their emotions were part of the daily life of this financial planner from Granby.
PHOTO FARWEB2, TAKEN FROM FACEBOOK
William Laberge-Cloutier, financial planner, mortgage broker and partner at the Ta Planif firm, in Estrie
In my meetings with my clients, we even carried out disaster scenarios with, among other things, higher inflation, lower returns, while demonstrating to clients that their plan holds in the long term.
William Laberge-Cloutier, financial planner, mortgage broker and partner at Ta Planif firm
Moreover, he would like to point out, these additional scenarios are based on the projection hypothesis standards updated annually by the Quebec Institute of Financial Planning (IQPF).
Michaël Roy, financial planner and advisor at Gestion de Patrimoine Assante, in Saint-Hyacinthe, notes that it is mainly retirees who have suffered. “Their wallet took a beating,” he illustrates. It was a bad time to disburse. »
PHOTO KARENE-ISABELLE JEAN-BAPTISTE, LA PRESSE ARCHIVES
Michaël Roy, financial planner and advisor at Gestion de Patrimoine Assante
“Many of my younger clients haven’t even called me,” explains Mr. Roy. Some continued to contribute to their heritage. But for retirees, it’s been a bad year. Their portfolio was able to remain positive thanks to stocks. It was the bonds that dragged them down. Bonds that have lost this much value, you have to go back to 1994 to see that. »
His strategy when going through turbulence: avoid disbursements wherever possible and understand that the economy is cyclical. So the pendulum will swing back.
“Yes, returns of -10% and -15% are difficult, but when you respect your financial plan, you reduce your insecurity. No one among my clients has had a horror story in the last year. My clients felt supported. Support and financial education are the keys when things are not going well. »