Jackie Porter of Carte Wealth Management uses her background in psychology to help people feel confident about their circumstances. 'There's so much fear and shame around money,' she says.iStockPhoto / Getty Images
In the Behind the Advice series, Globe Advisor asks advisors about their relationship with money from a young age, lessons learned over the years, and how their experiences influence the advice they give to clients. We’ve also launched a Behind the Advice podcast – find all the episodes here.
Jackie Porter, certified financial planner at Carte Wealth Management in Mississauga, talks about being raised by a single mom who passed away when she was 16, the job loss that led her to a career in financial services, and how her psychology degree helps her work with clients:
Describe your first money lesson.
I was raised by a single mom who drilled into me from a young age not to rely on a man for money. Unfortunately, my mom passed away when I was 16. My mother left me some cash in her estate that languished in a savings account for 10 years. Nobody called to tell me my options to try to grow that money. It just sat there. It wasn’t until I became an advisor that I realized what I could be doing with it. So, all those years, I lost the benefits of compounding that money and having it grow. I’ll never be able to make up that lost time.
How did your childhood experience influence money habits while you were growing up?
Anyone who loses a parent when they’re young knows that it makes you an adult really quickly. After my mom passed away, one of my best friends who was a couple of years older moved in with me. We shared the expenses for rent and food throughout my high school years. I then went to university and continued to live with roommates. I always had a few part-time jobs to survive. My mom’s extended family was in my life, and sometimes they’d bring me groceries. They tried to be there for me as much as possible, but they were immigrants with their own struggles.
The experience taught me there’s not always a Plan B in life. You need to make the most of the situation you are faced with, however challenging it may seem. It also forced me to have a very strong work ethic and cash in the bank as a backup. I didn’t realize at the time that’s what they called an emergency fund; I just knew that cash in my account was the financial fortress I could rely on in case something went wrong and I needed money. I had seen enough to know that things could go wrong when you least expect them to.
How did you get into the financial services industry?
In university, I thought I would be a journalist or a therapist. I stuck with psychology and, in my fourth year, we did a practicum in which you learned to listen to people as a therapist, but you couldn’t give advice. I loved it but realized that people kept telling me the same thing over and over again. I wanted to give them advice so badly, but I couldn’t. I realized that being a therapist wasn’t for me.
I worked in sales at a phone company, making really good money, until I was downsized. After that, my roommate from high school referred me to a financial planner who told me that the average person earns about $1-million throughout their working life. She also explained how little of that money they ended up keeping without proper advice. That really struck me. I thought, ‘I need to get into this career.’ I wanted to learn how to keep more of the money I earned. I had never heard of the principle of making my money work harder until then. It dawned on me that this was my opportunity to offer practical advice that could make a real impact on the lives of other people.
How has your psychology education helped your career?
I use psychology every single day in my practice. I thought I was running away from psychology when I left that career, but there is so much fear and shame around money, and I think using psychology helps people feel confident about their circumstances. It’s all about managing expectations.
What’s your biggest money mistake, and what did you learn from it?
I’m a pretty generous person. Before getting into this industry, I would be quick to lend money to people I grew up with who were in a financial jam. I wanted to help because I understand what struggle is like. Becoming a financial planner has taught me that it’s not always a lack of money that causes people to get into financial trouble. Sometimes, it’s having the wrong mindset. So, what I do now – which has taken a lot of practice – is tell people that I can’t lend them money but will advise them on how to get their debts in order or offer them a referral to get support. To me, the gift of financial literacy is more powerful than giving somebody money.
Is it easier to talk to clients when markets are down or up?
It’s more stressful to talk to people – especially potential new clients – when the market’s up because people tend to get overconfident. When the market’s down, even though sometimes that can be a challenging conversation, talking about where their net worth is at helps keep things focused. But if things are going well, and let’s say it’s a prospect I’m talking to, they’re like, ‘Oh, things look really great; what could go wrong?’ Well, as you know, life can change on a dime.
This interview has been edited and condensed.
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