Aravind Sithamparapillai, an associate at Ironwood Wealth Management in Fonthill, Ont., worked as a bank teller before getting his MBA and eventually moving into wealth management.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.
Aravind Sithamparapillai, an associate at Ironwood Wealth Management in Fonthill, Ont., talks about using credit cards as a kid, his fear of failure and his foray into wealth management.
Describe your first money lesson.
Growing up, my dad would make me and my brothers read the newspaper and pick one article a week to talk about. Most of the time I would pick something in the entertainment section about movies or music, but one day I saw an article in the life section about students getting their first credit card. It said some students used credit cards like free money and would rack up huge debts they couldn’t pay. That seemed very scary to me. I remember thinking, ‘I never want to be in that position.’
Then, when I was 18, just before I was about to head off to university, my bank offered me a student credit card. When my dad asked about it, I reminded him about that newspaper story and said I didn’t want the temptation of a credit card. But my dad had a different take. He told me that having a credit card isn’t a bad idea if you pay the balance every month. He explained the benefits of building a good credit history.
Did you use that credit card responsibly?
I did, mostly. Once, I overspent on it and couldn’t make the payment, even though I had a part-time job at university. I ended up borrowing $500 from my dad to pay it off. He loaned me the money, but I hated the feeling of asking him for it.
What’s the biggest money mistake you’ve made?
I bought the Facebook initial public offering in May 2012 [before it was known as Metaverse Platforms Inc]. I remember there was a glitch on the Nasdaq on the first day, and trading was temporarily halted. I panicked and sold my shares later that day. I lost about $400. I should have just waited it out. In hindsight, $400 isn’t that much money, but it happened around the same time my wife and I were planning on getting married, and I had given her a hard time about having credit card debt. She wasn’t upset with me about losing the money on the stock, but I remember feeling very bad about it. Loss aversion is real. I’m glad I made that mistake back then when the stakes were lower. It started a long trajectory of studying, reading, and getting as much investment information as possible.
What’s the hardest money advice for you to follow?
Spending to improve my well-being. I have a fear of failure and potentially running out of money. My fear started when I was a kid after my dad lost his job. He later started his own successful business, but the memory of what that was like for him stuck with me. I also got let go from my first job stocking shelves at Indigo. I didn’t make it past the three-month probation period. And I failed a few classes as an undergraduate student at university. Even though I picked myself up, worked hard and turned things around, the shame still lingers. It’s what keeps me humble, regardless of my successes in my career to date.
What did you want to do before entering the financial services industry?
It’s the classic immigrant kid story: I thought I would be a doctor or scientist, but then I realized I didn’t want to spend my life in a lab. For a while there, I had no idea what I wanted to do, but then I took a course in personal finance and realized that I loved the idea of working with money and helping others understand it better, too. I worked as a bank teller and later got my MBA. I worked in corporate finance for a while until I realized I wanted a more people-facing career. I worked in sales and marketing in the pharmaceutical industry for a few years until entering the wealth management industry four years ago. I’m currently working on obtaining my certified financial planner certification.
This interview has been edited and condensed.
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