Financial Advisor

Considering Hiring a Financial Advisor to Help Manage Your Money? Here’s What You Need to Know

Are you feeling frustrated because of your financial problems? Are you finding yourself overwhelmed by debt? Do you think a Financial Advisor might be the right professional to help you budget your money? 

If so, you’ve probably done a little research and are overwhelmed by your options. 

In order to choose the right Financial Advisor for your needs, you must evaluate your financial circumstances and understand the types of services each offers.

What is a Financial Advisor?

A Financial Advisor is the general term used to describe anybody who helps you manage your money. This could include an employee at your bank, a stock broker, or an insurance agent. 

And if you’re looking specifically for budgeting help, you might have come across the term Financial Planner. 

Because (outside of Quebec), anyone across Canada can call themselves a Financial Advisor or Financial Planner, you should ensure that the one you select has a combination of education and experience. Look for a professional designation, such as Certified Financial Planner, Personal Financial Planner, or Registered FInancial Planner.

Also, before you see a Financial Advisor, find out about their cost, and how they are paid (through commission, a fee for service, or on a salary basis).

How can a Financial Advisor help me?

A Financial Advisor may be able to put you on course to a better financial future. 

They typically do this by:

  • Mapping out your cash flow.
  • Figuring out problem areas in your budget.
  • Creating a balanced budget that covers your needs and eliminates your wants.
  • Putting a debt reduction strategy into place that prioritizes (and where necessary, restructures) your debt.
  • Providing investment management advice.
  • Providing assistance with income tax preparation and estate planning.

What is a Licensed Insolvency Trustee?

Licensed Insolvency Trustees (LITs) are federally licensed and regulated professionals who provide financial advice and services to individuals and businesses with debt problems.

How can a Licensed Insolvency Trustee help me?

If your reasons for seeking professional financial help have to do more with overwhelming debt and less with investment advice, an LIT may be a better fit for you. 

Here are 10 great reasons to consult an LIT if you find yourself struggling with your debt.

1. An LIT can help you if you’re close to – or at the point of – insolvency.

LITs are the only professionals authorized by the federal government to help debtors file Consumer Proposals and Bankruptcies.

2. An LIT can help you with the full range of debt relief options.

LITs are like a one-stop shop when it comes to debt relief. They can help with everything from simple budgeting all the way to Bankruptcy. In fact, LITs are required by law to explain all debt relief options available to you.

3. LITs are Canada’s most highly educated and trained debt advisors.

In order to practice, LITs must be granted their license from the Office of the Superintendent of Bankruptcy (OSB). Licensing requires that LITs complete a demanding academic program and pass rigorous testing. On top of that, many LITs have an accounting designation and university degree. 

4. An LIT must adhere to strict ethical regulations.

The OSB not only licenses LITs, they oversee them to ensure that LITs abide by the rules put in place to protect debtors. In this way, you know that the LIT has your best financial interests at heart.

5. An LIT guides you through the debt elimination process.

If you file a Consumer Proposal or Bankruptcy, your LIT will deal with your creditors on your behalf and guide you through the process, from start to finish. 

6. If you file for insolvency, you get legal protection from your creditors. 

When your LIT files either a Consumer Proposal or Bankruptcy, an automatic stay takes immediate effect. This means that your unsecured creditors cannot continue or start any legal or other collection action against you. This puts a stop to all collection calls, wage garnishments, and lawsuits.

7. An LIT makes sure your rights are protected.

Your LIT will ensure the debt relief process is fair for both you and your creditors, and that everyone follows the rules.

8. An LIT will not require you to pay them upfront – or hit you with hidden fees.

An LIT’s fees are federally regulated when it comes to Bankruptcies and Consumer Proposals.

What’s more, those fees are tucked into your monthly insolvency payments, so you’re less likely to feel them. It’s your LIT’s job, in fact, to make sure that your Bankruptcy or Consumer Proposal payment is one that you can afford every month.

9. With an LIT, your first consultation is free.

At this initial consultation, your LIT will review your financial circumstances and provide you advice that is tailored to your situation. You will come out of that free session knowing every debt relief solution available to you, and how to proceed if and when you decide it’s time to face your debt.

10. LITs are easy to connect with.

You don’t need a referral to contact an LIT. All you need to do is pick up the phone and schedule your initial consultation. 

Financial Advisor vs. Licensed Insolvency Trustee: Which is right for me?

If you’re looking for assistance with money management, investment advice, or estate and retirement planning, your best bet is to find a certified Financial Advisor. However…

If your finances are out of control and you want to stop making decisions that lead you further into debt, you should consider consulting a Licensed Insolvency Trustee.

Are you ready to make better decisions about how to deal with your financial struggles?

Allan Marshall and Associates Inc. Can Help You

The seasoned Licensed Insolvency Trustees at Allan Marshall and Associates Inc. have the tools and expertise to guide you through different debt solutions. 

At your free initial consultation, we will review your financial circumstances and advise you of all debt relief options available to you. At the end of the consultation, you’ll have the information you need to make an informed choice on how you want to proceed.

Give us a call today to schedule your free consultation at 1 (888) 371-8900 or send us a message here.

About Author

Allan Marshall & Associates Inc.

Allan Marshall & Associates Inc. is a Licensed Insolvency Trustee firm found in Alberta & the Maritimes. We are licensed by the Federal Government of Canada to administer bankruptcies, Consumer Proposals, receiverships and other insolvency services. We have the knowledge and experience to assess your situation and offer the best advice for your particular need, whether you are a first time bankrupt or simply struggling to make ends meet.