Have you ever Googled a financial question, only to be overwhelmed by thousands of articles and videos, each offering different answers? For simple questions like “What is a TFSA?” a quick search will provide the answer needed. The trouble begins when your questions involve your personal situation and are more complex than a simple definition. Take the question “Should I put money into my TFSA or my RRSP?” Wouldn’t it be nice if there was a simple answer google could provide to this? The hitch depends on who is asking, the answer may be different. Depending on the person, this may be the wrong question to ask entirely!

            Although there is no one true answer, online sources will gladly dole out definitional information for their readers. Often these sources will conclude with “you should consult an accountant or financial advisor about your specific situation.” Ironically, that one sentence is perhaps the only one worth reading in the entire article. Not because the average person cannot make their own decision, but because without the help of a professional their decision will inevitably be made in isolation to the question they are posing. Ideally, your questions would be answered in reference to all facets of their financial picture. In the TFSA vs. RRSP example, there is a right answer to the question, but it is highly dependent on your income, goals, retirement plans, and tax bracket. The typical source on the topic will outline the pros and cons of each account, but the decision to contribute to either account depends on so much more than the immediate pros and cons.

            Many financial decisions are reversible. If you contribute to the “wrong” account this year, you can adjust your strategy next year. But other decisions are one-time and irreversible, like when to retire, when to start your CPP or OAS, or which pension survivor option to select. Often it is impossible or incredibly difficult to go back on these decisions; the ramifications of your choice are considerable in the immediate term and only compound over the course of your life. There are numerous instances where the complexity of your financial position will dictate a specific course of action, but all the search results in the world will not address your particular circumstances.

            Cookie cutter advice can only provide a general understanding of the facts. Imagine you are making the decision to start taking CPP or OAS payments, you might be eligible now, and you could use this as a source of income today, but have you considered the tax impacts? How will taking CPP and OAS affect your flexibility in withdrawing from your other retirement savings? A generic answer about when it is possible to take CPP and OAS will not help you to optimize your own finances. Or perhaps you are a business owner, nonspecific advice would dictate that you pay yourself entirely in dividends for tax efficiency. As a result, you do not end up contributing to CPP. In isolation, these small immediate choices may seem straightforward, but when the overall financial circumstances have been ignored the result may be sub-optimal or completely wrong,

            This is where personalized advice makes all the difference. Our job, as wealth advisors, is to see the big picture. Asking the right questions, considering every angle, and helping you to weigh the long and short-term ramifications of each choice is what we do to help you realize the best path forward. We assist our clients in avoiding costly “onetime” mistakes and we are there to aid in the day-to-day recurring decisions that compound over time into true financial success. This ongoing relationship is what makes our clients successful in aligning with their evolving goals.

            What seems obvious in the present might prove costly in the long run. Cookie cutter advice is often short-sighted, focusing on the immediate benefits while ignoring the future consequences. Our team has years of experience with the kinds of decisions individuals face in their financial sphere and we know how the results play out. The benefits of collaborating with us, we will mutually evaluate current financial decisions and the impact on your future outcomes. Our advice can help you to make decisions that will stand the test of time.

            When it comes to critical decision making, two heads are better than one. Do not leave your financial future to chance or generic advice. Book a free, personalized consultation with us today, visit www.kozakfinancialgroup.ca or call 403-266-0158. Let us work together to secure your financial future.