Keys to Wealth Management and Investing with a Canadian CFP
John Woodfield, Senior Wealth Advisor, Portfolio Manager, B.Comm, CFP®, CIM®, FMA, FCSI®
Summary of Key Points
Wealth management involves managing your finances, including investments and other services, whether investing in Canada or the United States.
A certified financial planner (CFP) is the most recognized designation for financial planning, including tax planning and retirement planning.
Portfolio managers can build client-specific portfolios using stocks, bonds, and other investments; regular investment advisors do not have the same ability.
Portfolio managers are fiduciaries with a legal obligation to act in clients’ best interests.
Dual-licensed advisors are licensed in Canada and the United States, allowing clients to manage Canadian and US investments with a single advisor.
Video Script
In this video we’re going to walk through what you need to know about Wealth Management and Investing in the US and Canada. You’ll also learn some tricks and traps that will help save you time and strengthen your financial future.
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I’ve been a CFP for 25 years and am also a Portfolio Manager. I have seen a lot of confusion over what titles mean and how it affects what an advisor can do for a client.
The main thing you need to understand whether you are investing in Canada or the US are the different designations of the people who you entrust with your money.
1) Wealth Management
First, wealth management is a term used for clients looking for comprehensive management of their finances.
2) CFP
Next, when looking for financial planning, a CFP is the most recognized and relevant designation. It is a group of professionals who have demonstrated knowledge, skills, ethics and experience to look at a clients’ entire financial planning picture. They can advise on estate planning, financial planning, taxes, and retirement.
3) Portfolio Manager vs Financial Advisor
Also, when investing, it is important to understand the difference between a Portfolio Manager and a financial advisor. They may appear similar. The main difference is that a portfolio manager has the discretion to build and maintain an investment account according to your individual needs. They can make decisions as needed.
Financial advisors are sometimes limited to selling mutual funds which can have high management fees. Also, Portfolio Managers are fiduciaries which means they have a legal obligation to put their clients needs first.
4) Dual-Licensed Advisors
Finally, most financial advisors in Canada and the US are not dual-licensed. If you are a dual citizen or green card holder living in Canada, you should work with a dual licensed advisor who understands the additional complexities. Problems arise when a cross-border investor uses Canadian investment tools such as mutual funds and ETFs. A dual-licensed advisor can help you avoid these issues.
Are you considering making a move across the border?
Your first step is to determine what is most important to you when you are considering a financial advisor. Decide what designations are important to you before you begin seeking a wealth management team.