by Deborah Reid, Financial Advisor, Raymond James Ltd. –
It may surprise you to hear that a person’s state of health has a great influence on how their money, investments and assets are managed.
During a recent conversation, we discussed the importance of truly understanding an investor’s personal, financial and health situation to ensure that all aspects of their life are considered. This takes time and requires a high level of trust between the investor and the financial advisor. Sharing your challenges can leave you feeling vulnerable; however, it is important that your professional understands your situation to make appropriate recommendations, determine the appropriate asset allocation, and set a realistic time horizon.
Knowing an investor’s age and health is the first step to determining how long the investor plans to invest, but age and health are not the only factors. For example, a wealthy investor may not require income or capital from their investments; therefore, the time-horizon would be that of their beneficiaries, not the investor. Often questions are asked about the investor’s family health history to obtain a better understanding of possible health challenges.
To understand the challenges of aging, I have completed studies that help while working with senior investors. Some simplistic adjustments such as ensuring there is sufficient manoeuvrability room for clients with limited mobility, providing chairs with solid arms for ease and comfort for clients with hip and knee challenges, ensuring there is sufficient lighting for those who are visually impaired, speaking clearly (but not loudly) and not turning away when speaking with a hearing-impaired client, can make a difference. These may seem insignificant, yet these basic adjustments to meet the needs of the individual demonstrate a higher level of client care.
One’s health also determines what strategies should be discussed with the investor. Of course, basic estate planning is a necessity when discussing financial goals. Unfortunately, the younger the investor, the less concerned they are about powers of attorney and wills; however, it is important that people of all ages take care of these necessities. When an advisor is aware of family complexities, referrals to other specialists may be required. Documents such as trusts, prenuptial agreements or co-habitation agreements may be warranted to protect the assets for children from previous marriages or relationships.
Full disclosure of the various aspects of one’s life is crucial in helping a financial advisor help you. Only then can your professional make appropriate recommendations, strategies and referrals to help you protect your wealth health!
Raymond James Ltd. Member Canadian Investor Protection Fund
