Ivan Arturo, a certified financial planner (CFP) with IAB & Associates Financial Solutions Inc., says financial hardship growing up taught him about the importance of money and financial planning. "My parents were school teachers, which wasn’t a high-paying job in Colombia, so they had to find other ways to earn money," he says.KRISTA FOGEL/Supplied
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.
Ivan Arturo, a certified financial planner (CFP) with IAB & Associates Financial Solutions Inc. at Sun Life Financial Investment Services (Canada) Inc. in Richmond Hill, Ont., talks about growing up in Colombia, his decision to study and stay in Canada, and the small spending indulgence he’s sometimes guilty of:
Describe your first money lesson.
Growing up in Colombia, my parents provided me with a modest monthly allowance and told me I would have to spread it out over four weeks. If I were to spend it on one or two weekends, I wouldn’t get more until the next month. That taught me about budgeting and how to spend and manage my money carefully. I was very responsible with my money as a result.
How did you become interested in finance?
Watching my family go through different financial hardships as a kid gave me a sense early on in life of how important money and financial planning are. My parents were school teachers, which wasn’t a high-paying job in Colombia, so they had to find other ways to earn money. For instance, my mom also ran a clothing store business with three stores in Bogota. I used to help her with the business.
I went to Canada to get a degree in business administration at York University in Toronto. The idea was I might go back to Colombia to help my mother run the business. But, in the end, I saw the opportunities here and realized I wanted to work in banking and do different things. My mom was heartbroken at first, but now my parents spend a few months a year here visiting me.
Did you work in finance immediately after graduation?
My first full-time job was working in customer service in the telecommunications industry. One day I called a branch manager at Sun Life, trying to sell them a new high-speed internet and telephone package. After making the sale, the branch manager said, ‘I like how you communicate, the research you did and the recommendations you made.’ She thought I’d make a good financial advisor and suggested I apply at Sun Life. I took her up on the idea, got an interview and eventually got the job. I’ve been at Sun Life for 16 years now and run my own financial planning practice.
What are some of the qualities that make a good advisor?
You need to be good with people – empathetic and a good communicator – to understand their financial needs and concerns. You need to ask good questions and try to go deeper. Whenever I meet with a new client, I start by getting to know them and their family and businesses, if they have one. I ask about their family dynamics, their relationship with money and their financial objectives. I also try to determine if the client is a good fit for my practice. Not every client is a good match, and it’s important advisors understand that. Also, I believe the more education you have and the more tools available to you as an advisor, the more value you can bring to clients.
What’s the hardest piece of money advice for you to follow?
I teach clients about budgeting, cash flow and watching for unnecessary spending, but I’m also guilty of it occasionally. For example, I often go out for coffee at work instead of using the machine in my office. It doesn’t seem like much, a few dollars here and there, but that little bit of spending can add up to a lot over time.
What are you best at when it comes to your own finances?
Paying myself first. There’s a rule of thumb in financial planning that 20 per cent of your income should go toward savings and investments first, while 80 per cent goes toward expenses. That’s something my wife and I do that I also recommend to my clients. It helps people succeed financially and achieve that financial freedom later in life.
What do you worry about when it comes to money?
I sometimes worry about things I can’t control, like the direction of interest rates or how geopolitical situations can impact my clients’ portfolios. But I guess the only way to control these things is to ensure my clients are educated and that we have the right strategies to withstand the volatility that will inevitably come along.
What advice do you have for someone interested in becoming an advisor?
Education is key. At a minimum, you should obtain the certified financial planner designation. It will set you apart from many people in the industry. Also, try to keep up with a macroeconomic picture and how it can impact your clients’ portfolios. Last but not least, build strong relationships with your clients. If you do that, more business will follow.
This interview has been edited and condensed.