Advocis: How should Canadians handle big-ticket summer purchases with savings from the pandemic? Ask their advisors.

Toronto, ON, June 21, 2021 (GLOBE NEWSWIRE) -- The combined effects of sizzling weather, falling COVID-19 case counts, steady progress in vaccinations and healthy savings from the pandemic have created a perfect storm for Canadians to look towards making big-ticket purchases for themselves and their families this summer ? and to seek the counsel of their financial advisors when doing so. 

"The first thing to discuss with a client is to find out what is truly motivating the need to spend," said Norris Walker, a financial advisor at Kabs & Associates Inc. in Clarington, ON. "Is this something they've always wanted to do and only put aside in the past because of finances, or have they become caught up in the euphoria of COVID restrictions beginning to lift?" Walker also added that it is important to keep the fundamentals in mind: How much enjoyment will clients get from it? Is this something that can appreciate? How will it affect their long- and short-term plans? 

Heidi Blondin, CFP®, EPC, a financial planner from Kingston, ON, agrees. "Clients are looking for things that will bring them joy over the last many months as we have been in and out of lockdown," she said. "My advice to them has been to not make emotional decisions based on current frustrations. We still need to look at the big picture and your long-term financial needs." 

Once carefully evaluated, however, big-ticket items can be responsibly purchased, and financial advisors are there to help. "If there is disposable income and savings beyond the rainy-day fund, and other financial planning components are in place, then I would have no reservations with clients making a big-ticket purchase," said Jeffrey Graham, CFP®, CLU® of First Oak Financial Inc. in Port Moody, B.C. "Your financial advisor understands what these purchases might mean to you after such a challenging time, so have the conversation with them to ensure that what you'd like to do is in alignment with the financial plan that you've built." 

All told, a poll of 100 Advocis members showed that investing in cottages and major home renovations were the most-frequently discussed topics between advisors and their clients, with approximately 20% of advisors responding that between 20% - 40% of their clients started conversations about big-ticket purchases in one form or another. 

"A professional financial advisor is always ready to assist you in moving forward with big financial decisions," said Greg Pollock, President and CEO of Advocis, The Financial Advisors Assocation of Canada. "After such a long and uncertain period, it would be expected that many individuals and families would be looking to purchase something that will help them bounce back from the stress of COVID-19 ? and working with their advisor can help to ensure that it won't result in even more stress down the road!" 

About Advocis  

Advocis, The Financial Advisors Association of Canada, is the largest voluntary professional membership association of financial advisors in Canada, representing more than 17,000 member-clients and 40 Chapters across the country. Advocis offers designations, continuing education opportunities, industry-leading publications and membership in a chapter network with comprehensive mentorship programs, study groups and practice development resources. For more information, visit http://advocis.ca.