Xin Lou, a wealth planner at Coast Capital Investment Management in Surrey, B.C.Supplied
In the Behind the Advice series, Globe Advisor asks advisers 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.
Xin Lou, a wealth planner at Coast Capital Investment Management in Surrey, B.C., talks about his dream of being a detective, a side gig as a crypto mining entrepreneur and the retail job that led to his first gig in financial services:
Describe your first money lesson.
I remember one of my first discussions about finances with my dad, who told me to read the book Rich Dad, Poor Dad. It debunks the myth that you need to earn a big income to be rich. It also discusses the difference between working for money and having your money work for you. I read the book when I was 13, but it wasn’t until I was in my early 20s that I understood the lessons in it. It was after I racked up a lot of student loans and credit card debt, and realized how that would hurt my ability to invest money later on. I made a lot of financial mistakes back then and learned those money lessons the hard way.
What did you want to be growing up?
As a kid growing up in Vancouver, I wanted to be a detective. I got the idea from watching a lot of TV and movies. I wanted to be a police officer and eventually a detective who solved crimes and made a difference that way. I was so set on this career path that I participated in the RCMP Youth Academy, the New Westminster Police Youth Academy and was in the Air Cadets. Later, I went to Simon Fraser University to study criminology.
However, after a couple of years there, I became disinterested in criminology and got a psychology degree instead. I didn’t even consider a career in finance back then. I just wanted to understand people and myself better. I’m an introvert who’s learned to be extroverted. It just happened to work out that this background helps me understand underlying motivations in clients’ decisions.
What did you do before getting into finance?
I worked in retail to help pay off my student loans and credit card debts. On the side, some friends and I became interested in Bitcoin after seeing the price skyrocket. It was 2013, long before Bitcoin and other cryptocurrencies became more mainstream. My friends and I were into building computers and decided to build and sell the chassis for the special computers used to mine scrypt-based currencies such as Litecoin and Bitcoin. Eventually, we realized the venture wouldn’t be enough to support three adults with a full salary, so we dissolved the company and moved on.
At that same time, I was working as an assistant manager at a suit store in downtown Vancouver when a manager at Royal Bank of Canada came in to buy his wedding suit. I was helping him out, and he said, ‘Hey, you have great customer service; I’d love to talk to you about a role at RBC.’ So, I applied. I felt lucky to land a job there when I did. That kicked off my career in financial services. I’ve been an adviser for about 10 years and a financial planner for about six of them – first at RBC, then at TD Wealth, and about the past three years at Coast Capital.
Do you have any regrets about not sticking with the crypto venture?
I have no regrets. Starting a business is very difficult and risky, especially in crypto. That said, it did help me fund a down payment for the home my family and I now live in. It was a great experience, and I learned a lot about cryptocurrency. I continue to follow it and own some Bitcoin, but I mostly have more traditional investments such as stocks and bonds through mutual funds and ETFs. I try to follow the KISS – keep it simple, stupid – rule for my and most clients’ portfolios.
Do you recommend crypto to clients today?
The crypto market is highly volatile, as most people know, so I try to keep it out of my professional conversations. Of course, some investors bring it up, saying things such as, ‘My friend is making a killing [in crypto], while others are taking losses. What should I do?’ My general advice is that if you really want to play with it, use a very small chunk of your overall investible assets and do it with the assumption that you’re going to lose that money. If you make money investing in crypto, that’s a bonus. Do it for fun, but don’t let it be part of your long-term retirement plan.
How do you convince investors who’ve lost money in the markets to get back in?
As humans, we usually want to avoid feeling pain. When it comes to the market, I find helping investors gain a perspective on how markets can fluctuate in the short term helps. I try to get them to focus on the long-term performance instead. If you can stick it out longer, you have a better chance of reaching your financial goals.
This interview has been edited and condensed.