Wadera regularly cites research data from firms like Vanguard which shows that people who work with advisors tend to be wealthier and more confident in their retirement. That people who work with an advisor are better able to navigate the complexities of investing in Canada. He also tells the story of his own family’s struggles and how an advisor helped them at a very hard time.
Wadera’s father passed away suddenly at age 52. His mother was left a widow at age 46 with no work experience in Canada. His father had some disability insurance and some life insurance, but an immigrant widow and sudden single parent was left to navigate the complexities of Canadian insurance, tax, and inheritance regulation.
There was no professional on hand to help them navigate. Wadera became an advisor to provide that help, so that other Canadians wouldn’t be in the same situation his family was in.
His work now hinges on financial plans, a key element of the modern advisory value proposition. He describes iA Private Wealth as a planning firm that does investment management, risk management, and tax strategies. Planning is at the core of their value proposition and he sees the whole advisory business moving in the direction of better and more comprehensive plans.
The beauty of a plan is that it prepares for different market environments. Where DIY investing feels like a timing game. Bull markets spark some confidence, but give some investors pause about buying more, fearing they’re buying near the top. Bear markets erode confidence, and even those saying ‘buy the dip’ end up paralysed by a fear that things can go lower. An advisor with a financial plan can demonstrate that even when markets hit highs, they tend to exceed those highs within three to five years. They can also show how any investment fits into the wider plan, creating a sense of confidence and comfort.