The Answer to Literally Every Personal Finance Question

“So what should someone like me be investing in?”
“What do you get your incorporated clients to do with their money?”
“Should I be putting my money into a TFSA, or a RRSP?”
“Do I even need life insurance?”

I’m sure you’ve discerned by now that there is one answer that every financial advisor should be giving to these questions - a resounding “it depends”. It’s a deeply unsatisfying answer to hear, and it’s possibly even more unsatisfying to give. But it’s correct.

We’ll do this jeopardy style. The answers are in the form of a question. And the list of questions is not even close to exhaustive.

What should someone like me be investing in?
Well, who are you? How old are you? What are your goals? Are your goals realistic? What’s your income? How long would it take for you to recoup investment losses? What sort of family do you come from? When will you need the money? What is the money for? Do you have other investments?

What do you get your incorporated clients to do with their money?
Same questions as above. But also, how much operating capital do you need? Do you have a corporate emergency fund? Do you also have a personal emergency fund? What is your personal tax bracket? Do you have a holding company? How many shareholders does your corp have? Are you even the sole decision maker?

Should I be putting my money into a TFSA, or a RRSP?
Same questions as above. What is your income? What is your tax bracket? Are you incorporated? Do you need the money soon? What is your expected income over the next five years? What is your expected income in retirement?

Do I even need life insurance?
How old are you? Do you have a spouse? Do you have children? Do you have major debts? Do you have a will? Do you have an estate plan? What is your expected tax bill at death?

I’m sure the algorithm would prefer if I gave snappier responses. Five things every 39 year old should be doing with their money. But guess what. Like it or not, you are unique. Think about it. How is your family different from others? How is your background different? Your job? Your income? So why on earth would you be seeking financial advice from the internet, from people who don’t know your goals, your situation, your quirks. When you hear from your friend who did a strategy that worked for them. It doesn’t mean that same strategy will work for you. It may even explicitly not work for you.

That can actually be a little scary to hear, but I think it can also be liberating! There is no random person on the internet who has the secret to MY personal finances. My friends don’t have the answer, my family might not have the answer… There are people who know a lot about their personal finances. They might even know a lot about the strategies they do. But the question they cannot answer (without a long conversation with you) is “is the thing I’m doing correct for YOU”.

I suppose this is where I get sales-y, and say “If you want to talk about your finances, reach out.” If I can promise you anything, it’s that we won’t talk about someone else’s finances.

NB: A financial advisor can help with retirement planning, managing irregular income, or saving for major life events.

See also: 50 things I do as a financial advisor

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This post was written by Tim Ziegler, Financial Advisor with Tim Ziegler Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this post comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.