Financial planning is a highly regulated profession. One common policy of the 3 licenses I hold is that I must only advise on topics that are covered by my licenses.
For example, I have a life insurance license. I therefore cannot advise on topics covered by an accident and sickness license, except in general terms. Before I successfully studied for the exempt market license, I could not advise on flow through shares, for example.
Some of my clients have alerted me to a disturbing trend. They have come to me to ask about ‘advice’ offered to them by their peers. “Is it true that RRSPs are bad?” “Do you have to take $2000/month out of your RRSPs when you retire?” They are correct to bring me those questions.
These statements are offered by non-licensed and therefore unqualified people. And many times these individuals have negative things to say but no solution as an alternative.
There is no lack of information on personal finances. The best question to ask is: How will I know what is relevant to my own personal situation? The opinions or ‘facts’ offered by the media and peers are generic generalizations. Some of the information may even be untrue.
Your best line of defence when unqualified people want to offer you advice, or you read articles in the media, is to say or think: I am glad I have an experienced, objective financial professional who can evaluate all the information, and together we can decide the relevant options for my future financial success.
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