Darren Coleman, senior portfolio manager with Coleman Wealth at Raymond James Ltd. in Oakville, Ont., wrote a book called Recalculating: Find Financial Success and Never Feel Lost Again, which compares managing investments to driving a car.Supplied
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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 clients.
Darren Coleman, senior portfolio manager with Coleman Wealth at Raymond James Ltd. in Oakville, Ont., talks about his first experience with a credit card, lessons learned from well-known mutual fund manager Larry Sarbit, and why advisors today need to be good team players.
Describe your first money lesson.
When I was a little boy, I would spend time with my great-grandmother while she played bingo, a game she took very seriously. It was back in the day when they would use a kernel of corn to mark the cards, and she would instruct me not to touch anything – or even to move – for fear the kernels would roll off the cards. I remember her surveying all her bingo cards with tremendous attention and precision. That ingrained in me the focus you need to have when managing something. I think about this when managing clients’ money; it’s not unlike granny overseeing all those bingo cards, ensuring nothing falls out of place.
What were some of your money influences growing up?
I grew up in Barrie, Ont., with single parents who divorced when my younger brother and I were little. My mom kept the house, and my dad had an apartment nearby. Finances were tight. Both were teachers who made a decent living, but it was in the 1970s when interest rates were high and the economy wasn’t great. It was a difficult financial environment. I didn’t see their financial struggles. They didn’t complain. But I did see them work hard to provide my brother and me with everything they could. It wasn’t a lavish lifestyle, but we were comfortable.
As a teenager, I started working part-time jobs in retail at stores that sold cameras and electronics. I learned how to interact with people and talk to them about different products, which I loved. I couldn’t believe I got paid to talk to people while learning about cameras and photography. So, the other thing I learned is that work can and should be fun.
What’s the biggest money mistake you’ve made?
In my final year of high school, some clown at a bank gave me a credit card. It was a huge mistake. I abused the heck out of that thing. I bought so much stuff – and then the bill came in. It was around $1,000. That’s a lot of money for a teenager, especially then. I think I was making about $6 an hour at the time. I learned early on about being on the wrong side of compound interest. I panicked. I didn’t know how I was going to pay for it. I got another job and eventually paid it off, but it was a lesson I’m glad I learned early on. It was deeply embarrassing.
Is there a person or event around money that greatly affected your life?
When I was 22, I was fortunate to meet well-known mutual fund manager Larry Sarbit. He was a disciple of Warren Buffett – a true value manager. He shared some core principles about investing – such as buying companies with wonderful businesses that have some ability to control their prices – which have been very helpful over the years. Also, investing isn’t about being mostly right; it’s about not being really wrong. Larry and I are still friends and we occasionally get together over Zoom (he lives in Winnipeg) to discuss investing.
What’s the hardest piece of money advice for you to follow?
For me, it’s budgeting because it’s zero fun. It’s like counting calories; nobody wants to do it.
What are you best at when it comes to your own finances?
I take my own advice and invest like my clients. It’s hard because, as advisors, we’re exposed to new and interesting investing ideas constantly. When you sit in front of your trading screen all day, you risk leaning into that. My philosophy is, if you work the table in Las Vegas, don’t play blackjack.
What do you worry about?
My dad died at age 60 and I miss him every day. And I’ve seen many clients die with a lot of money. These people weren’t able to do many of the things they saved money to do. That’s unfortunate. I worry about not enjoying life enough because you never know what’s coming. It’s about balancing living for today and saving for tomorrow.
What advice do you have for people looking to get into your industry?
When I came into the industry years ago, it was like the TV show Survivor: You needed to make it on your own. Today, it’s more about teamwork, which is great. I tell people to think about the kind of team member they want to be – their skill sets, such as planning or business development – and find a team that supports that. The benefit of teams is that you only need to play your position. Also, be mindful of how teams work and become a good team member.
This interview has been edited and condensed.
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