What Canadian Financial Advisors Do—and How They Help Newcomers Thrive

The reality is that talking about money can be a powerful tool for improving your financial literacy and even your financial outcomes. That’s why around 1 in 3 Canadian residents turn to their bank or other financial institution for financial advice.

What is a financial advisor?

In Canada, ‘financial advisor’ is a general term for someone who helps you manage your money. Their job is to help you with financial information, including guiding you on which financial products are right for you. An important part of their role is to build a trusted relationship with you where you feel safe discussing financial topics and goals.  

You might find a financial advisor working in the following settings:  

1. At a bank or financial institution;  
2. At an investment brokerage or firm, or  
3. As an insurance agent.  

Difference between a financial advisor and financial planner 

The terms financial advisor and financial planner may be used quite broadly or a little more narrowly in Canada, depending on where you live. In some provinces, there aren’t restrictions or specific requirements for a person to be a financial planner or advisor. In other provinces, there are regulations that say who can use the financial advisor or financial planner titles.  

So, while the terms can mean different things in different provinces, generally speaking these are the types of things that a financial advisor may help you with:  

1. Day-to-day banking  
2. Savings accounts, including tax-advantaged savings accounts 
3. Managing debt 
4. Saving for and/or deciding when to buy a home 
5. Savings account options for your child’s education 
6. Budgeting for you and your family.  

On the other hand, a financial planner might help you with the following (more complex) financial information and tasks:  

1. Investment planning 
2. Retirement planning 
3. Cash flow optimization 
4. Business succession planning 
5. Estate planning 
6. Tax-efficient strategies 
7. Investment diversification strategies.  

What does a financial advisor do?  

There are many things that a financial advisor can do for you and help you with. Before digging into the specifics, we wanted to highlight two important parts of their role – listening to you and understanding your needs.  

Your advisor will most likely help you with general information about financial products and options. Their guidance can help you make better decisions about your finances. But, importantly, by building a relationship with you and understanding your goals and needs, your financial advisor can walk with you through your financial challenges and wins.  

When it comes to specifics, your financial advisor may help you with:  

1. Creating a budget, and strategies to stick with it. 
2. Deciding whether to combine your loans at a lower interest rate to help you pay it off faster.  
3. Planning how to pay for major purchases, like a wedding, vacation, home or car.  
4. Considering your specific needs for major milestones, like retirement or education planning.  
5. Reviewing government benefits you may be entitled to.  

What information do you need to share with your financial advisor? 

Your financial advisor will likely want some information about you, so that they can give you accurate information for your situation. Here’s what they may want to know:  

• Your age 
• Your status in Canada (temporary resident, permanent resident, etc.) 
• Your annual income and annual taxes 
• Your net worth (approximately) 
• Whether you have any children or dependents  
• Your approximate monthly expenses 
• How much you know about investing  
• Your money and investment goals 
• Timeline for those goals 
• Your risk tolerance.  

Your financial advisor may want to know more or less about you, depending on your personal profile.  

The important thing to remember here is that you should trust your financial advisor before passing on your personal information, especially if you’re sharing your Social Insurance Number (SIN) or copies of your documents. You can learn more about protecting yourself from impersonation scams in our dedicated article.  

Benefits of a financial plan in Canada 

Research from our partner, Scotiabank, revealed that 89% of those who have a financial plan are confident they will achieve their investment goals. That’s pretty compelling data to show that a financial plan can help you to take better control of your finances.  

• Keen to get started now? Book your no-obligations meeting with a Scotiabank advisor 

Other powerful benefits that you may access when you create a financial plan include:  

1. Getting a better sense of your situation, so you know and understand your spending and saving habits.  
2. Creating more realistic goals, plus a strategy and timeline for achieving them.   
3. Identifying opportunities for improvement, such as contributing to your TFSA or RRSP.  
4. Planning for unexpected risks or events, including creating important documents like a will and buying insurance to protect yourself from risks you can’t afford.  
5. Building in flexibility for major milestones, like having a child, changing careers or getting married. 

When do you need a financial advisor? It’s a myth that you need a certain level of income or savings before you can work with an advisor at your bank. The reality is that financial advisors work with people across various income levels, including people who have just landed their first job or who are just getting started in their career.  

Financial advisors help people who:  

• Have inconsistent paycheques, such as freelancers, self-employed workers, and gig workers.  
• Are just getting started with investing and need reliable information from a trusted source.  
• Received an inheritance and want to know what to do next.  
• Are planning a major life change (or just went through one), such as changing careers, having a child, or buying a home.  

There is no need to wait for the perfect time to work with a financial advisor. If you think you could benefit from an outside look at your finances, it may be a good time to get started.  

A quick note:- It can be a different story for financial planners. Sometimes, their services (which can be a bit more sophisticated) tend to be more appropriate for newcomers with some accumulated wealth, often around $100,000 of investable assets.   

Is seeing a financial advisor in Canada worth it? 

We would suggest yes, seeking help from a financial advisor can be worth it.  

Research shows that most people in Canada who seek financial advice receive it for free. Here’s a snippet from the Canadian government’s spotlight on Canadians’ use of financial advice:  

Almost three-quarters (72%) of those who sought financial advice chose a free option. The 3 most common types of free financial advice were: 

general financial planning for savings and investments (62%) 

retirement planning (31%) 

insurance (27%) 

Since there aren’t upfront costs for seeking guidance, it can be a great place to start – especially if you’re trying to stretch your budget further as a newcomer to Canada. 

If you’re wondering where people access free advisors – the answer is often through their bank.  

For instance, Scotiabank customers have free access to meet with an advisor, but they also offer a free meeting with an advisor to members of our community who are currently in Canada.  

Book your no-obligations meeting with a Scotiabank advisor 

Not in Canada just yet? You can sign up to hear more from Scotiabank to get a head start on your financial future in Canada.