Mr. Gilles Sinclair, F.Pl., president of the Institut québécois de planification financière (IQPF)
Q - Is financial planning expensive?
The cost depends on the type of financial planner chosen. There are salaried financial planners who are paid by the financial institution that employs them. Others charge a fee for their services; the fee varies according to the scope of the financial plan. Some financial planners are also certified in other areas, which allows them to sell financial products; thus they receive a commission on the income generated by the products purchased. Finally, some financial planners combine both salary and commissions, according to the criteria mentioned above. Ask!
Q - What should I expect from a financial planner?
On the basis of the client's goals, needs and assets, the financial planner prepares an integrated strategy covering the following 7 areas: legal aspects, estate planning, insurance and risk management, finance, taxation, investments and retirement planning. At the first meeting, the financial planner and the client together determine the scope of the financial plan and how the planner will be compensated. The financial planner gathers the data and clarifies the client's goals. The planner is then able to analyse the client's situation and prepare a report. Follow-up is also very important; an annual update is recommended, since the strategy used will evolve according to the client's age and the events in his or her life.
Q - How do I find a financial planner I can trust?
Anyone using the title of Financial Planner in Québec must have a diploma from the Institut québécois de planification financière, which attests that the financial planner is qualified and meets basic requirements. In addition, the financial planner must participate in continuing education courses each year. You should also confirm that the financial planner has a valid certificate from the Autorité des marchés financiers. Financial planners who are also members of a professional order, such as accountants or notaries, are subject to the code of ethics of their profession. Before choosing a financial planner, I recommend that people consult the directory of members on the IQPF Web site and talk to their friends and colleagues. It is worth shopping around to find a financial planner with whom you are comfortable.
Q - What is the role of the Institut québécois de planification financière (IQPF)?
The role of the IQPF is to grant financial planning diplomas. We are the only organization in Québec authorized to do so. We accredit the courses taken by our members to ensure their quality and establish rules concerning continuing education. The IQPF is also the only organization exclusively dedicated to financial planning.
Q - Speaking as a financial planner, what are the 3 most important pieces of advice you would give your best friend?
The first and most important piece of advice is to always choose a financial planner with the required qualifications, thus someone with a diploma from the IQPF. Second piece of advice: take the financial plan seriously and carry out the tasks necessary to implement the plan in all 7 areas mentioned above. It takes discipline! Finally, with regard to retirement planning, I would say that you need to start thinking about retirement as soon as you begin your first job; in short, start immediately and keep at it. But it all starts with a good plan...
To go further