How Financial Advisors Help Newcomers to Canada

Moving to a new country is an exciting and, at times, overwhelming experience. You have made the journey for many reasons — advancing your career, seeking a safe community to raise your family or an opportunity for a better education for your children — and you’re excited to build your life in Canada.  

Whatever your goals may be, we know achieving those goals in a new country requires financial investment and education. The good news is there is a diverse array of financial advisors who can help you navigate Canada’s financial landscape and achieve financial success in Canada.  

This article will help you understand what a financial advisor is, how they can help you achieve your financial goals and what questions to ask before selecting the right advisor for your financial needs. 

What is a financial advisor?

In short, a financial advisor is a professional who helps clients manage their money and guides them in achieving their specific financial goals. An advisor can be especially helpful to newcomers, helping you learn and navigate the intricacies of Canadian financial services for that crucial first year of building a life in a new country. Your advisor can assist you with budgeting, navigating tax structures, planning for retirement and investing. Wherever you are in your financial journey, you can find a professional advisor to help you manage your current finances and plan for your future.

Types of financial advisors

There are many types of financial advisors, so it’s important to find one that speaks to your unique financial situation. Here’s a breakdown of the types of financial advisors you’ll come across.

Financial advisors or planners

These professionals focus on comprehensive financial planning, including budgeting, saving, retirement planning and tax strategies. They look at your entire financial picture to help you create a plan that aligns with your goals. As a newcomer, utilizing a financial advisor or planner, is an excellent way to set yourself up for success at the very beginning of your time in Canada. 

Investment advisors / specialists / representatives

These advisors specialize in managing investment portfolios to help you build wealth over time. They are experienced investment managers with in-depth knowledge of strategies to help clients maximize their investments by advising on stocks, bonds or other holdings.

Insurance agents / advisors / brokers

These professionals focus on helping you choose the right insurance products, such as life, health and disability insurance. They help ensure you have the coverage to protect yourself and your family during expected and unexpected life events.

How can financial advisors help newcomers?

Financial advisors offer a variety of services, some of which are specific to newcomers. As you research services provided by financial advisors, here’s what to consider.

Understand Canadian finances

Navigating a new financial system can be daunting. A financial advisor can help you understand Canadian banking and investment products, credit systems, taxes, insurance and other financial vehicles so you can make informed decisions about how you are spending and earning. 

The tax structures in any developed country are complex, and that’s no different in Canada. A financial advisor can help you understand Canadian taxes, set up the right accounts to minimize your tax exposure and create a tax plan to maximize your earnings retention.

A financial advisor can also schedule regular financial check-ins with you, where they’ll better align your finances with specific life goals, offer advice on current financial challenges and evaluate your financial needs.

Set and quantify your financial goals for your life in Canada

The opportunity to live and work in Canada also comes with the opportunity to achieve your financial goals. Whether your goal is small, like setting up an emergency fund, or saving for a trip back home; medium, like providing regular financial support to family members back home, saving for a wedding or for your child’s education; or large, like buying a home or opening a business, your financial advisor can help bring that goal to life.

With a financial advisor, you will have a professional who partners with you, understands the opportunities in Canada and can assist you in quantifying these goals and building a clear, realistic and time-bound plan. 

Make a personalized financial plan to reach your goals

A good financial advisor will consider your income and existing financial commitments to create a personalized financial plan. For many newcomers, sending money back home is a significant part of their financial responsibilities in Canada. A financial advisor can help you organize your finances so that while you’re providing assistance to others, your primary financial goals remain at the forefront.

Get recommendations for relevant financial products

Financial advisors can recommend relevant products that suit your both financial needs and also your capacity for risk. They should explain each product in detail and answer your questions, ensuring you are comfortable with your investment choices. They can also recommend products to help you build your credit in Canada.

Questions you should ask your financial advisor

Choosing the right financial advisor is crucial in achieving your financial goals. Getting to know any prospective financial advisor, their qualifications, range of services and how they conduct business is important in making an informed choice. Here are essential questions to ask to ensure you find the right match for your needs.

What are your qualifications?

Get straight to the point. Ensure your advisor has the necessary credentials and experience to support you. Accredited advisors should have their Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) certification. This tells you that the professional has undertaken key courses, which qualify them to provide financial advice in Canada.

What products or services do you offer?

Understand the range of services and products the advisor provides so that you can determine if they meet your financial needs. Some financial advisors may specialize in a certain area, such as investment or estate planning, so be sure they offer services that you are interested in.

How do you get paid?

There are different ways financial advisors are paid. Some are paid based on a commission, a fee or a combination of the two. Understand how they are compensated to avoid hiring an advisor who may have a conflict of interest in their advice or the products they recommend.

How will you track my investment performance?

Ask how the advisor will monitor your investments and inform you about their performance. With various apps, anyone can see their budget or portfolio at the tap of a finger. However, regular updates and reviews from a professional are essential in staying on track and being an informed client.

How will you work with me?

It is essential to understand the advisor’s approach to working with clients. Will they meet with you regularly? Are they available to answer questions and give advice when needed?

How will you take into account my assets that aren’t managed by you?

Ensure the advisor considers your entire financial picture, including assets not under their management. This holistic approach ensures comprehensive financial planning.

Financial success in Canada

As you consider the important role a financial advisor can play in helping you achieve your goals, be sure to find someone who is experienced in helping newcomers understand and maximize every financial opportunity in Canada. You can schedule an appointment with an RBC Financial Advisor to learn more about our services and how we can assist you on your financial journey.

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