[00:00:00] You know those conferences where you go and listen to some speakers, pick up a new idea or two, maybe exchange a few business cards here and there. You get slightly inspired and refreshed, and then you go back to work and get swept back up in the busyness of it all. Never getting around to applying what you learned.
[00:01:16] That's why I offer free monthly talent talks. For busy talent leaders like you, we spend time discussing essential topics in small breakout groups and facilitated large group discussions. We develop our networks and we pool our expertise. You walk away with not only ideas, but realistic steps for how you will apply your shiny new learning.
[00:01:38] Register [email protected] slash talent talks. See you. Are you taking full advantage of all your benefits or are you leaving money on the table? Today's episode is a bit of a departure for the show. Instead of focusing on talent management and hr, we're focusing on your financial fitness, both personally. And at work. My guest is Tracy Bissett. As Chief Financial fitness trainer of Bisit Financial Fitness, Inc.
[00:02:12] Tracy educates and empowers individuals, notably young adults and entrepreneurs to take control of and live their financial lives with confidence. She is also a former executive from TD Bank. She's a podcaster and a full-time professor. I've known Tracy for several years now and have always been impressed by her energy and forthright approach.
[00:02:33] She really knows her stuff. Listen in, you'll be happy you did.
[00:02:37] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Welcome back to Talent Management Truths. I'm your host, Lisa Mitchell, and today I'm joined by Tracy Bissett. Tracy is the Chief financial fitness officer at Bissett Financial Fitness. It's a pleasure to have you here today, Tracy. Thank you.
[00:02:57] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Thank you.
[00:02:58] so much, Lisa. I'm excited to be.
[00:03:00] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Well, so let's get started. You have a really unique and interesting path, and I would really appreciate it if you'd share with the listeners your journey a little bit.
[00:03:10] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. So I have loved money since I was a little kid. I was the kid who had the lemonade stand, the neighborhood, newspaper, garage, sales, everything to make money. And so it's been something I realized pretty early on. Money was a means to get things and to do things that you wanted. So I've been pretty practical about money my, my entire life.
[00:03:30] I always thought that I would have my own business at some point. I went on to business school once I graduated high school, got my MBA as well. And I am a CFA charter holder, which I finished when I was working in my career. But I got started at teeny bank right out of my mba and I thought, Oh, we're here a couple years and then I'll maybe go work for one of my.
[00:03:48] Because I was working in the commercial space, so helping companies get access to financing that they needed. Fast forward, I stayed there 16 years. I was doing all kinds of deals and transactions on the commercial side, helping customers get access to funds. Then I went on the adjudication side, so I actually.
[00:04:05] For many years approved loans for companies all across Canada, all different industries. Did that in Toronto and Calgary Alberta for, for quite a few years. And then kind of wrapped up with td. I was working in enterprise risk where we worked for the chief risk officer and supported them with risk initiatives and, and mandates throughout the organization and had the opportunity to interact with.
[00:04:25] The risk committee of the board, which was the senior executive of TD Bank, as well as the external directors of the organization on the risk committee. So
[00:04:33] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Wow,
[00:04:34] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: as does happen in financial services, my seat was taken away with one of those restructuring reviews and they eliminated a lot of associate vice president physicians.
[00:04:43] And so from there I decided to start my own business and I packaged up everything that I love to. so I love teaching and coaching and, and really package that all up together, all around.
[00:04:53] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah, you, you have such a, such a passion for educating and, and teaching others around this area cuz for a lot of people, you know, money. Fraught with emotion and stories and baggage and, and so I think you're doing some really important work here. So this deep experience at TD and, you know, helping clients access funds apply, approving loans, adjudicating and so on.
[00:05:15] So how does all of that experience play in, You said you kind of brought the stuff you really love the most. How does it play in that experience to you, what you do today?
[00:05:24] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Well, a couple things. So number one, when I was working for td, I realized pretty quickly that not everyone who worked in the organization knew about money and kind of how finances work. And so you assume that everyone. Than a bank knows that, but they don't. And I had designed some courses with human resources designed some that other people facilitated.
[00:05:41] I designed some that I facilitated and that was really rewarding for me because I was able to help younger, newer lenders learn how to, to do the things that I was doing and, and how to assess companies. And I really got a lot of joy out of. I just know that your life gets set up better when you've got a control of your financial situation.
[00:06:00] And so when I left, I thought, how can I package up some of the stuff I was doing in the organization? And I had volunteered throughout my career with various organizations helping advance. Financial literacy. So Junior Achievement Girl Guides of Canada. TD had a collaboration with them. I used to work with the Little Sparks and then some of the older girls as well, and just really rewarding.
[00:06:20] So I wanted to put all the pieces together and so now I support Young adults. And so I have a podcast, Young Money Podcast. It's targeted towards 20 to 30 ish an age group, but anybody who wants to learn can listen. And I've got lots of parents and grandparents who listen as well as I work predominantly one on one, but in a group as well with business owners.
[00:06:39] So typically sales are under $2 million and helping them understand their cash flow cycles, how to read their financial statements, and really how to make meaning of numbers and, and use them with the strategy they have in their.
[00:06:51] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Right. And you do that as a group, did you say? Or one.
[00:06:53] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: And both.
[00:06:54] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): been 1 0 1. Okay. Yeah. So you, so it's really interesting to see, you know, taking that, you got that taste of, of training, of education and pulling it in around your area of, of expertise and passion. And you, it's funny you mentioned junior achievement cuz I did that too.
[00:07:09] I volunteered for that and I loved it. So for listeners who, who don't know about junior achievement, some of you may do, but it's, they've got a variety of, of. Programs, but the one I had participated in was around working with grade eight students, and I was a previous grade eight teacher way back in the day, but I remember going in sweaty, sweaty, hot June with one of my colleagues.
[00:07:30] and we had a whole afternoon to help these kids kind of figure out like, what kind of lifestyle did they want? Where do they wanna live? What kind of car do they wanna have? What kind of closed budget? And they would do all that, and then we'd have them back then we had newspapers that were more readily available and they would go through and look at the job ads and the, the rental ads, right?
[00:07:49] To see, well, what would. Does the market actually pay? And what is actually demand in terms of cost of living? So it was fascinating for them to see how mismatch their expectations were with reality and really worthwhile, cuz that is not taught otherwise in the curriculum.
[00:08:06] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. And as well, I'm a professor at Centennial College, so I teach students courses that help them go on their road to becoming financial planners so that they can help people with their finances. So it's fine that we have a lot of newcomers to Canada in our program. So it's exposing them to Canada, the Canadian financial system, and, and really helping shape the way that they're gonna approach their client base and help people in the.
[00:08:28] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Mm. Okay. Really, really interesting stuff. So, you know, you call your, your company Visit Financial Fitness. Could you tell us a little bit about how you define financial fitness?
[00:08:41] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: For sure. So when you hear the term financial literacy, and that's the term I hold, heard my whole entire. It really comes with a negative connotation because you're basically saying someone's illiterate around their finances and it makes most people kind of take a step back and then they start to feel bad about themselves.
[00:08:58] There's no shortage of ways to feel bad about yourself when it comes to money, and unfortunately, that's usually the, the default emotion that comes with it. So I wanted to go from a, a more positive place. So financial fitness is kind of a journey we're on our whole entire lives. Everybody's. We wanna take positive forward steps to increase our financial fitness, and it might be taking like with physical fitness, taking that first walk around the block, we got off the coach, we're gonna walk around the block, Maybe we're gonna learn about different kinds of bank accounts, or we can be a little bit more advanced and we're gonna run a marathon.
[00:09:28] With financial fitness, we could be learning about different kinds of investments and becoming a more sophisticated investor. There's room for everyone and we're on this journey. No two people are at the same place. And so if we focus on the positive, we take forward steps, we're gonna make mistakes, which is natural, but just to get back on course and, and stay with it for your life cuz things are changing every day I learn new things every single.
[00:09:50] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Oh, absolutely. I, I really appreciate that. You know, I, I believe. Language proceeds behavior. And so I really appreciate this take on fitness and that connection to really this idea of, of being healthy around your attitude, towards money, how you think about it, how you treat it, how you leverage it. I came to some of those concepts a bit later in life and you and I have talked about that previously.
[00:10:11] And I, I just think it's so important that, that people learn about this as early as possible. So, you know, when you think about corporate employees, for instance, which make up the bulk of, of the audience for this show, you know, what would you, what would be your biggest tips for them? Things to think about when it comes to their financial fitness?
[00:10:31] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: So, kind of two things. When it comes to working at the, the corporation firstly you need to take, take responsibility for it. It doesn't matter if you have an advisor or someone's your financial planner. You need to take responsibility for your financial situation and, and ask those questions and step up even if it's, I'm not sure what to ask, please.
[00:10:49] Please educate me depending on where you are. When you're working and you get that job in an organization or you're reviewing your benefits annually, it's Really.
[00:10:56] important to look kind of at two areas. One, where can I get things free? So don't, don't leave money on the table. And two how can I get discounts or deductions on things?
[00:11:07] And so there's a lot of things that get overlooked. I know from my own experience when I joined TD and my dad was a banker, so we, we went through my benefit package and I made sure I got into the employee stock matching program and made sure that even though my paycheck was gonna be a little bit lighter at the beginning, I was gonna be Acquiring shares and the organization was gonna contribute, that is one that gets left untouched most of the time.
[00:11:28] So I don't wanna see anybody leave money on the table. And it could be stock ownership if you're in a publicly traded company. It from a retirement perspective, it could be a pension or it could be like a retirement savings matching program. You wanna make sure that any money that's available to you, you take the benefit of oftentimes they'll give you benefit credits as well with going against like health or medical.
[00:11:49] Dental expenses all kinds of things like that. And be sure to explore all your insurances. I know critical illness is an insurance that most people do not take up, and then all of a sudden they get one of the big four illnesses. So cancer life threatening cancer heart attack, stroke in coronary bypass.
[00:12:06] Therefore, major. , you get a check immediately from the insurance company. So if you're not able to work or you need the funds for something else, it really saves you. So I would encourage people to do that. So those are some of the ones where you're gonna get something right away. Oftentimes, if you're working in a large corporation, you're gonna have and be entitled to benefits.
[00:12:23] So when I was at td, they had a corporate membership with good life. So compared to like $1,400 I might pay on my own. Going in as an individual, it was $400 for a year long membership. So make sure you take advantage of all of those kinds of benefits. They. Big employers generally now have a website where you can see all of that stuff and make sure that you take advantage of it as well as if there's even discounted tickets to an event.
[00:12:45] Maybe it's to Canada's Wonderland or to a museum, something like that. You don't wanna be paying more than you need to, so get all your free stuff and don't pay more than you need to for stuff you can actually get a benefit from.
[00:12:56] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): I love it. Yeah, it's so true cuz I, I mean, I, I, I've, you know, been fortunate enough to work with some companies where I got stock options and there was RSP and so, and I always jumped on it cuz you know, I think a lot of financial training from my parents other than avoid debt at all costs if you can, don't pay interest.
[00:13:13] Which good baseline advice, but there wasn't much more. But it was around. Yeah. Take the free stuff. It, You just made a comment though, a few, a few minutes ago where you said, you know, it's not, there's not a high take up on that stuff. And it's funny cuz I. I've done it all in talent management and hr, everything except comp and benefits.
[00:13:32] So I have some insights certainly in there, but, but that's not been an area where I've practiced. So I, I actually it doesn't completely surprise me, but I do find it a bit sad, right? That, that that stuff is there for the taking and people are not, not taking advantage of it.
[00:13:45] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Yeah, this morning I was just teaching behavioral finance before I hopped on with you and I was actually telling the students, we were talking about choice theory and when you have to make complex financial decisions when there's too many choices, you do nothing. And you're kind of paralyzed in analysis or, or you're just not sure what to do.
[00:14:02] You don't wanna make a mistake. So there's actually studies out there that show if you're automatically opted into something and to not have it, you have to opt out. There's way more significant take up when you're automatically in versus if you have to select yourself in and all of these things where employers are gonna match, generally you have to opt in.
[00:14:21] Number one, it's less work for them.
[00:14:23] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah,
[00:14:24] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: You have to initiate it and it saves them money if you don't do it. So, they've told you about it and it's in this huge benefits package, whether it's online or even get a little book. But you have to take that initiative and there's lots of people in the, the companies who can help you.
[00:14:37] You can talk to your colleagues, you can talk to your manager. I'm sure there's an HR contact as well but make sure you get briefed on, on everything and you drive that process, though it's not up to anybody else beyond letting you know, Okay, here's the date, here's what you gotta. But you've gotta drive that and make sure you understand everything.
[00:14:53] And the good thing about benefits is every time you have usually there's an annual renewal. And then anytime you have a life change, you're able to open them up and take a peak and, and review things. So maybe you didn't have as much insurance when you didn't have children. Now you're expecting a baby.
[00:15:06] You're gonna gonna make that change in your benefits.
[00:15:08] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): well, so, okay, so a few things I wanna, I wanna touch on in, in what you just said. So when you talk about Behavioral choice theory, just refer listeners back to the episode with Paul e Eisen. I use user Experience 1 0 1 with Paul Eisen. He's got a PhD in Human Factors, and he talks about that exact thing when it comes to designing how, how people interact with systems and processes and so on.
[00:15:29] So I, I appreciate you bringing that up. I also think, you know, it's fascinating. A so many of my, my clients and the companies that I talk to are really struggling with, you know, the quiet, quitting kind of thing, the great resignation. And, and there is, there is a war for talent. I mean, people are really struggling to fill vacant roles with, with qualified, talented people and to attract the right people in.
[00:15:52] And yet oftentimes there's, they have stuff in their toolbox and one of them might be, you know, dusting off. Here's all the great things we, we offer. And, and just talking about it more in a different sequence, right? So that you drive take up so people really see the value, but also that, you know, it kind of draws them in like, wow, there's value add here.
[00:16:12] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Yeah, even for just putting it in plain language, I mean, I speak to all my students about it that it's not about the dollars and the salary, it's what's the whole package look like. And maybe you're 5,000 less on salary, but look, you have the, maybe you have a defined benefit pension. Like I know C I B C still has, so a lot of my students you can try to get in there.
[00:16:29] You're gonna have a better pension than you're gonna have over at TD or the other organizations just because of things that they offer. So, not to be blinded by salary, but considered the whole thing.
[00:16:38] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah, so true. Excellent. Okay. Now what I'm also thinking too, cuz a lot of the folks listening, so there's some stuff here that will be applicable for them personally, but also I would proffer that, you know, there's a lot of consideration here for what they can think about when, when they're looking at how we we treat employees and, and how we encourage.
[00:16:59] And, and you know, not just the benefits we offer, but how can we help with that, that financial understanding and know how. And that brings me to, you know, you and I were talking in the green room about that other point of why financial acumen is so important for corporate leaders. Could you talk a little bit about that for us?
[00:17:17] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. And so if it's lots of HR people listening, you might be starting to cringe. As I'm saying, you need to know how to read financial statements. And the reason being is that at the end of the day, there's an organization being run and for you to contribute to your maximum. You have to understand how your strategy is gonna financially impact the organization, how everything fits together, and be able to talk about that in dollars and cents and so that you have credibility in that arena.
[00:17:42] So if you're not sure how to read financial statements, Take a course, get a coach, make sure that you can do that. And then every time that you're presenting your ideas tie in how that actually applies from a revenue or expense standpoint. And a lot of times it's from an expense standpoint. How is that gonna tie into the organization and what will be the benefits?
[00:18:00] Be very concrete with numbers. Senior executives love numbers and board members love numbers. So if you can show how x expense for something is going to lead to a 30% reduction in turnover, Quantify that stuff and, and actually back it up. And I think that that will serve your career really well.
[00:18:16] Those who are going to be continuing on a high trajectory moving into more senior and senior roles. Having that acumen is critical and you will be evaluated on it whether you realize it or not. And certainly at my time at td, as I was seeing who was going to be presenting to the risk committee of the board or to the external board directors I was privy to conversations where certain people were not permitted to go in front of the board cuz they wouldn't stand up as credible.
[00:18:38] And certainly those who could tie their arguments in we'd hear feedback after the presentations. And so, all of that stuff matters. So if you work on your personal financial stuff, but then that. Financial acumen, it will really help you in your career. And not that you're gonna be moving over to a career in finance, unless that's your dream and your goal, but certainly it will help you as you continue to advance and be a strong partner for the organization and really a strong contributor.
[00:19:01] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah, I, I agree because, you know, I've led succession planning in several organizations and You know, the highest levels and, and, and have definitely seen how that comes into play. Now, I'm just going to add the caveat. You don't have to be a Traci Biscuit. You don't
[00:19:14] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: No, no
[00:19:15] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): you know, a charter financial analyst and, and, you know, with all, all those credentials behind you.
[00:19:19] I am certainly not, and I was, was an executive. I. , but I did learn early on as a, as a manager originally when I had my first kind of cost center, you know, to stay on top of that monthly and to be reconciling, you know, and asking lots of questions and really seeking to understand. So, I, yeah, there's, there's a, there's a lot there.
[00:19:38] And then I also think it's important to remember the, the, the personal takeaway, right? The more you. At work, you're, you're going to be able to extrapolate that to your own life, your financial future, and retirement planning and so on.
[00:19:52] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Exactly, and I'll just share a couple tips for people who are thinking, How can I do this? How can I do it on.
[00:19:56] my own? Your CEO is probably talking about the things that matter to them, and they're talking about is there a challenge with revenue? Is there expense constraint? They're guiding you and telling you all of the things that you need to know.
[00:20:08] If it's a publicly traded company, you can read your quarterly reports, you can read your annual report. There's analysis that's done for you out there. If it's a private company the CEO is still talking. Maybe not to the same degree of what they're sharing, but you're gonna be able to. Feel the sentiment and know what's important to them.
[00:20:23] So it's not a, a big black hole where it's a mystery. There's clues and guideposts all along. And it, once you know their priorities and you stay on top of them, they're gonna translate into yours as well. And so you can make everything fit together.
[00:20:35] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Y very wise. You know, I do a lot of talking about how to influence stakeholders. Because that's a core part of what talent leaders need to do cuz they're very much caught in the organizational middle, right? So they're trying to, to create programming and growth opportunity, really help people maximize their potential.
[00:20:53] And yet they're often not the ultimate purse strings holders. They've got a be for the money bank. Time and it's, it's can be very frustrating. So oftentimes you need to be able to, to influence in a very powerful way. So, I think what you're talking about noticing what are the clues, right? What are the guideposts that, that are out there?
[00:21:10] What, you know, to help me meet people where they're at, meet those decision holders where they're at, right? And, and, and speak their language essentially. And that's why the financial language is so key.
[00:21:21] Yeah. Yeah. Excellent. Okay, so let's. I don't know, segue a little bit over to another area that's very much on people's minds.
[00:21:31] It's this whole environment of inflation concern about impending recession versus soft landing. Rising interest rates. Can you tell us a little bit about what you're seeing?
[00:21:43] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. So just to level set inflation is the increase in goods and services over, and we generally look at a common good. Of goods and services. So more expensive over time. We're at kind of highs from the last 30 years at this point in time. We've seen in Canada another recent rate hike. Another one expected to come shortly and so everything is more expensive.
[00:22:05] And some employers were very Kind and gave increases across the board. And some have not been able to move and, and not cuz they're unkind but they may not be able to do so financially. Things are tight. People are, were coming out of the pandemic. Budgets are still tight. Everything costs more so people are having to make choices about what, how much groceries are they going to buy because the same hundred dollars buys less food than it used to a month ago and six months ago.
[00:22:28] So people are getting, making some hard choices around that. Another thing that is really impacting people is variable rate debt. So if you have a line of credit supported by your home or, or unsecured it's probably, unless you've got it in a fixed rate, it's prime plus something. And so your borrowing cost has just increased tremendously, and that becomes very, very challenging when more of your budget is going towards paying down.
[00:22:50] More people are using their credit cards. Some of the surveys I've seen recently is that credit card use is up month over month, significantly because people are not necessarily changing their spending or there's things that they can't alter, and the difference is going on the credit card.
[00:23:04] Because there's no more funds around to be able to pay for those things. So it's a very stressful time. Financial anxiety is very high. If you don't know your financial situation, I would highly encourage everyone to get clear on what's your budget, how much money comes in, is there anything that can be deferred?
[00:23:18] If you get into a really tight situation even thinking about talking to not that you. File for bankruptcy, but to talk to a licensed insolvency trustee just to get some counseling around your situation, whether you're at a point where you've got too much debt and you need to get into a consumer proposal.
[00:23:33] there's lots of resources out there for you to talk to because you don't, this isn't something you wanna just close your eyes and hope it gets better. We're gonna have more rate increases coming. Inflation's gonna continue to increase for a while at least. And so understanding your situation, what the potential pitfalls are, and then then figuring out a plan is all really important.
[00:23:51] just Taking a breath.
[00:23:52] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Taking a breath. Cause I think it's easy to panic right now. And often we panic. I mean, whether you're talking about money or, or whether to change careers or what, you know, cuz I, as a coach, I see all kinds of situations where people get stuck. Like stuck in muddy fear. Right? And a lot of the, the time it's because they haven't actually.
[00:24:11] taken, sort of extracted the stories and and so on that are swirling around in their mind to kind of figure out, okay, what's real, what's not? Cuz we tend to awfulize and
[00:24:21] catastrophize. So, so with money it's particularly important, like get some.
[00:24:26] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: facts.
[00:24:27] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): I did a post on get support like that is, that is the secret to getting results.
[00:24:31] So if you don't wanna panic, you don't wanna go into debt or, or be bankrupted, then get support. Have somebody take a look, you know, at it. Even just, I found in. And my experience, just making an appointment with a financial planner kicks my butt in gear, right? Cuz all of a sudden I'm organizing all of the data I'm having to look at it and really get clear on, on what my situation is and what are my questions.
[00:24:54] So it kind of, it, it, it gets your head out of the sand really quickly.
[00:24:58] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. And it's non-judgmental, like not to cringe whenever you gather the information factually and put it together and just take a breath at that point, and oftentimes it's not as bad as you think.
[00:25:10] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah. Well, and it's even, you know, I was thinking that when you were talking about you know, people using credit cards, and I know this isn't the case for, for everyone, but I know in certain cases people are using credit card cuz that's the, the, they think that's the only option. And if they are homeowner, for instance, It may not be right.
[00:25:27] They may be able to do some sort of, you know, line of credit or he home equity line of credit, something that helps them in the short term, not to make it run away debt or anything like that, but, you know, to, to, to get a better rate. So there's an example of. Saying, Oh my God, I feel like I have to put X expense on my credit card at 20% interest, which is insane.
[00:25:46] I'm gonna go and I'm gonna talk to my personal banking or financial planner and ask what are my other options? Right?
[00:25:54] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Especially if it's a short term problem. And you do have a mortgage, there's ways to defer skip payments that don't impact your credit score. There's lots of options out there. It's just getting clear on, okay, I wanna find out what they are. And then you can decide when you have all the facts.
[00:26:08] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah. Yeah. Knowing your options, so, so critical. Okay, well, thank you for, for, for commenting on that. Let's dig in a little more around this idea of personal financial planning, right? Cause I've been, you know, in my life, sort of up and down around around this, and, and I've learned a lot in the process.
[00:26:26] And I'm actually looking at, something that new again, in terms of of, of what I might do with, you know, sort of that wealth review myself. Could you tell us a little bit about resources and how it works? For instance, you know, there's advisors that are fee for service. There's others where the fee is tied to, you know, the products that they sell with a lot of the banks and so on.
[00:26:45] And then there's different levels of advisors and support that you. Based on your wealth level, it would be great if you could kind of simplify that all for us.
[00:26:54] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: All right, so just a few comments before we jump into that. So, number one, a financial plan is really just a roadmap to help you hit your goals based on your risk to. your your time horizon. So how long do you wanna hit those goals and, and really what those goals are and, and your risk around it. So it's just a plan for you.
[00:27:13] It's an individual plan, which is key. I would encourage everyone to calculate their net worth write down all your assets, everything you own a value, and then subtract everything you. In your life and see what your net worth is. Cuz a great yard stick to kind of measure is, does my net worth increase every year?
[00:27:30] Sometimes that's as impactful or more impactful than a budget when you can actually see the changes, cuz that can help you drive your spending if you're actually buying things that are assets and hold value versus things that that don't. So to two kind of things to start with.
[00:27:45] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Anything that, just to jump in on that, I think that is really key. I keep an eye on that, so I have a spreadsheet that has all of my assets. Investments, liabilities. And every time I get a statement , you know, from my r you know, this RSP or this pension or something, I updated in there so that I have a, a, a picture.
[00:28:04] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: And just to be clear, like an asset is a car house your investments, cash in your bank account, anything you own a value. So even if you have a stamp collection that's really. put something like that and then you subtract everybody you owe money to. So a car loan, a mortgage, your credit card bills anything that's outstanding.
[00:28:20] And, and over time when you're younger in your career, that number probably is negative because you might be sitting on a lot of student debt. And as you age generally that gets more positive. With the caveat that sometimes there's divorce, there's loss of business, There's all kinds of things that can happen that can impact that.
[00:28:35] But generally you wanna see an increase year over year. And so when you're looking for someone to help you create this roadmap to get to your financial goals, you may want someone to help make the plan, but you don't necessarily want them to, to do management of the assets of your investments. And it could be because you wanna do it yourself or, or perhaps you're not of a size significant.
[00:28:55] For organizations, and every organization has a different threshold. So there's fee only planners out there that sit with you and talk to you about what are my, your goals, what's your risk tolerance what's the time to hit these goals? And they actually help you map that out. They, they get all of your feedback.
[00:29:08] It's a, a collaborative process. It's not, you go there and they tell you what to do and you need to cut out coffee every day at Starbucks. They're not telling you that. They're showing you how could you reach your goals? As an alternative, like you mentioned, you could be working with a financial planner who's either affiliated with a large financial institution or who's independent.
[00:29:27] So, fee only planner makes money. You pay them to make the. With a financial planner who actually does the investments, they're going to get paid from the fees on the investment transactions. You don't pay them a fee for the plan. And so generally when you're getting started you are going to do, probably do it yourself investing with the plan that's been created.
[00:29:46] And then as your wealth increases, you may have someone else do it for you or you may not, you may choose to do your investments all of the time. So it really. What works for you. And just like anything, even we'll compare it to dating. If you're gonna look for a financial planner, you should interview several and make sure that there's a fit, that they speak to you in a way that makes sense to you, that you understand, you don't feel like they're condescending to you.
[00:30:08] And especially if you're female, you wanna make sure you've got someone who's going to be speaking to you and not necessarily to your. So interview people, get recommendations. Feel comfortable because this is your most important thing. You wanna make sure that you feel comfortable to ask all the questions that you have, and that you don't feel like you're a bother to them.
[00:30:26] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Oh yeah. Huge. Great, great advice. And it, it's so interesting that you say, you know, especially if you are a female you know, I, I've had the experience going into car dealership years ago, and. You know, the guy looking only at my husband, but I was buying the car. I think he was just my boyfriend at the time.
[00:30:40] You know, it was so insulting. And that used to be a common story. I. In the wealth management industry for 10 years and supported wholesalers that were selling two financial planners. So, saw a lot of that world and there was a real push to, to help both our wholesaler sales people.
[00:30:56] We were selling mutual funds and the financial planners give them education around how to connect with women and, and make sure they weren't unintentionally. Putting them off right through, through those kinds of behavior.
[00:31:08] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: Absolutely. Cuz the advisors who are purely dealing with the, the male in the relationship, if that's the situation when that gentleman passes away, the women are gonna switch advisors. Like that's what the research shows. So serve both your clients. if financial planners are not interested in it, they should be upfront about that and you should make sure you are finding one that that answers your questions, makes you feel comfortable and, and yet you're gonna have a productive relationship with.
[00:31:31] Cause it's not something where you wanna switch every six months or every year. You wanna have someone for a longer period of time so that you can get comfortable with them. They can know you and then they can be watching out for.
[00:31:42] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah. Yeah. Agreed. Excellent. All right, So much good stuff here. Many nuggets of wisdom. So let's come to our wrap up question cause we're, we're actually, again, the time flew near the end. Is there a particular. Book or resource that you would recommend to listeners around this area of financial?
[00:32:01] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: No one resource per se. I find for anybody who's on Twitter finance, Twitter is very good. So if you can follow people who are talking about financial stuff, you get a really wide range of opinions and ideas which is great. Canadian Securities Institute is a great place for resources as well, as well as financial planning.
[00:32:19] Canada, that's not the right name of it, but that organization, they're gonna have lots of resources. And then anybody you're checking out for financial planning or to be your advisor will have tons of resources on their website. Wikipedia is great too. Great way to learn terms, A great way to get common sense.
[00:32:35] Plain explanations of things.
[00:32:37] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Well, and I love Investopedia. Yeah, I, I love it cuz I'm a stock options trader account on the side trying to be anyways, and I really, I've done, you know, formal training, but I really use that site a lot. I really like it.
[00:32:49] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: One caveat on social media, just to be careful be sure of who it is that you're taking advice from. There are a lot of influencers with no financial background who are promoting financial things. And so you wanna discern, does this person have credentials, do they have knowledge or experience?
[00:33:03] And then you can decide from there if you're gonna take their advice or not. Cuz it's not that it's bad advice, but they may not have the, the authority and the the background to be giving that kind of
[00:33:11] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Yeah. It has to be backed up with that kind of. I agree. Excellent. Well thank you so, so much Tracy for coming on the show. You know, we've been friends and colleagues for about five years ago and I remember when I first met you, you were just launching your show, so it's really kinda neat. It feels full circle, have you here and I appreciate it.
[00:33:29] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg: thank you so much.
[00:33:30] tracey-bissett_recording-1_2022-09-14--t05-37-52pm--61157a395affa4006d0cfc64--lollyg (1): Thank you.
