Focusing on “relationships” was the strategy adopted by Francis Paquette, financial planner and specialist in responsible investment at Caisse d’entreprises solidaire Desjardins.
“The first role of the financial planner is to listen and then reassure by recommending certain financial strategies. In many cases, my clients’ financial plans were still working and very minor adjustments were required. People who are well supported in managing their finances and who have an established plan fare much better in difficult times. »
When returns turn red, reminds Mr. Paquette, it may also be wise to review your investor profile.
For the coming months, he says, financial planners can recommend to their clients who are more “tight” to redo their budget to better control expenses and then “work to optimize the allocation of their savings”.
Regardless of age, everyone has suffered the repercussions of the significant decline in traditional assets, estimates William Laberge-Cloutier, financial planner, mortgage broker and partner at Ta Planif, in Estrie.
“The main fear of retired or near-retirement clients was high inflation and the effects on their retirement plan. They had to adjust. For younger clients, we talk more about budget management. Even now, younger people need to do good budget planning because of inflation and high interest rates,” he says.
In these moments of instability, financial planners have been called upon like never before, recognizes Mr. Laberge-Cloutier. Review of the retirement plan, the budget, implementation of management tools and meetings to help savers manage their emotions were part of the daily life of this financial planner from Granby.
Moreover, he would like to point out, these additional scenarios are based on the projection hypothesis standards updated annually by the Quebec Institute of Financial Planning (IQPF).
Michaël Roy, financial planner and advisor at Gestion de Patrimoine Assante, in Saint-Hyacinthe, notes that it is mainly retirees who have suffered. “Their wallet took a beating,” he illustrates. It was a bad time to disburse. »
“Many of my younger clients haven’t even called me,” says Roy. Some continued to contribute to their heritage. But for retirees, it was a bad year. Their portfolio was able to remain positive thanks to stocks. It was the bonds that dragged them down. Bonds that have lost this much value, you have to go back to 1994 to see that. »
His strategy when going through turbulence: avoid disbursements wherever possible and understand that the economy is cyclical. So the pendulum will swing back.
“Yes, returns of -10% and -15% are difficult, but when you stick to your financial plan, you reduce your insecurity. No one among my clients had a horror story last year. My clients felt supported. Support and financial education are the keys when things are not going well. »