Tag Archives: fee-for-service financial coach

Money Coach Spotlight: Melanie Buffel

“We can’t solve problems by using the same kind of thinking we used when we created them.” –Albert Einstein
Melanie Buffel Money Coach in Vancouver BC

Melanie Buffel, BA Psych, MBA Candidate

Melanie Buffel changes the way her clients think about money.

“When I begin working with clients,” she says, “whether they are individuals, couples or entrepreneurs, they usually present me with foggy numbers: unclear expenses, numbers that are rounded up or imprecise. Then at one point on the journey they begin updating their spreadsheets, rebalancing their plan and speaking with a level of confidence that tells me they’ve had a paradigm shift. It’s wonderful to see them believe in their capacity to make sound financial decisions.”

Understanding what’s important to her clients is the foundation of Melanie’s approach. She recognizes that every person, couple or business owner has different needs and goals, and on an even deeper level; everyone has an emotional relationship with money that has been shaped by their childhood and life experiences.

Conflicting money personalities can cause tension within a relationship, says Melanie. “I help people clarify their priorities, and as an objective third party I can ask the hard questions without judgement.”

Melanie’s objective perspective can also help couples who enable each other with magical thinking solutions to their challenges. Judging or enabling is just two sides of the same coin; nothing changes.

Clients working with Melanie can expect change. “It’s so important that we clear the fog and determine priorities and goals, but that is just the beginning. The end game is integrating workable solutions into the reality of their lives.” Continue reading →

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Three reasons to stick with a defined benefit pension plan

Karin M byline photo

By Karin Mizgala, co-founder and CEO Women’s Financial Learning Centre and Money Coaches Canada

Retirement planning can raise a lot of questions and feel overwhelming to many Canadians, so I was very pleased when The Globe and Mail newspaper asked me to be one of the go-to experts for their Retirement Q&A section.

Here is my most recent contribution.

globe and mail

pensionQuestion from Derrick Alstein, Port Elgin, age 60:

I have a number of friends and a relative who are considering cashing in a defined benefit pension plan. I think an article on the pros and cons of a cash out strategy versus taking normal payments would be informative. Many people I know that have cashed out are taking advice from people that want to invest their money, have not done well and have had to go back to work.

Answer:

While the lump sum offered to people who consider cashing out their defined benefit pension can be very tempting, I rarely advise clients to withdraw from their pension and invest the proceeds with a financial adviser. Here’s why:

1. Ease of Management

With a defined benefit pension, your employer hires an investment company to manage the pension assets and is responsible to ensure that employees receive the monthly Feb 3 tweetpayment they are entitled to based on a formula that considers earnings history, years of service and age. You have no direct involvement in the management of the investments and there is no need for you to make any investment decisions before or after retirement. At retirement you receive a regular monthly payment from your employer for life. Simple. Most people who want to weigh the pros and cons of a lump sum withdrawal turn to their financial advisers for advice. Of the almost 100,000 financial advisers in Canada, 99% have a vested interest in directly or indirectly managing your investments. I’m not saying that it’s impossible for advisers to provide unbiased advice on whether to stay with the pension or not, but when the potential investment dollars are significant, let’s face it, it’s not easy to remain impartial. To avoid any potential conflicts of interest, it is best to consult an accountant, actuary or fee-for-service financial planner on pension decisions.

Read points 2 & 3 on the Globe and Mail website

 

 

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