So, he’s reassessing clients’ risk tolerance and budgets, looking at whether they can handle increasing interest rates and inflation rates.
Erin Roy, a financial advisor with Edward Jones in Bayfield, Ontario, said her clients are also asking what’s going to happen. Given that no one can predict that, she said, “it’s an opportunity for us to reflect on our current planning and stress test our long-term plans using more rigorous assumptions, like higher inflation, to think about the complications of volatility and ensure that we’re setting ourselves up for success long-term with appropriate asset allocation.”
She suggested that advisors can also help their clients review their finances with their lifestyle choices to ensure their spending aligns with their priorities and values.
“Right now, it’s a time where we need to be thinking intentionally about how we are using our financial resources since there are certain trade-offs that families will make, and they need to be intentional about those trade-offs,” she said, noting that there is no one-size fits all as clients chose between vacations or topping up their tax-free savings accounts or renegotiating their mortgages.
At the same time, she noted some clients are receiving inheritances and others are getting retirement packages, which offer opportunities to review their financial plans.
