Webinar

Financial Planning: What’s Stopping you from Getting Started? | Cherry Live!

July 5th marked the launch of our inaugural Cherry Live! series.
Free webinars, Q&A's and interviews where we discuss topics that matter to health care professionals.

About the Event

A down to earth, real conversation where we dove into the world of financial planning, tailored for Canadian physicians with our distinguished guest speaker Mitch Mastel, CPA, CFA, Financial Advisor from Pinder Wealth Management, Raymond James.

We discused Mitch's background, including his familiel ties and years of physician focused work over the course of his career lending to his insight into the intricacies of physicians' financial landscapes.

Mitch dug into his "why" and his job as financial advisor. He dropped some incredible bits of actionable tips for us maximize investments and discussed paying down interest and diversificaiton of portfolios. We hope this informative webinar has inspired us all to rip off the band-aid and take a step toward financial wellness!


More Resources:

LinkedIn: https://cherryhealth.co/linkedin

Facebook: https://www.facebook.com/cherryhealthinc/

Instagram: @cherry.health

Twitter: @cherryhealthinc

Learn more or book a call with Mitch.

Have questions? We want to hear them!

Feel free to reach out on any of our platforms and join the conversation.


Full Transcript below:

0:02
all right so I want to thank everyone welcome to the first Cherry live session
0:08
these Cherry live sessions are hosted by Cherry Health um and really meant to cover different
0:14
topics and speakers and um situations that matter to healthcare professionals across Canada if you're
0:20
not familiar with cherry Health it is the medical Network across Canada if you
0:25
haven't joined yet check it out at cherryhealth.ca and we'd love to have you join today we are joined by Mitch
0:32
master who is a financial advisor with Raymond James Mitch is very familiar with the Physicians base having grown up
0:39
with a dad who's actually a family doctor as well and so he brings that level of knowledge and experience to everything he does in working with
0:45
physicians in his in his work uh Jordan who is also here as a panelist is one of
0:51
the co-founders of cherry health and is also a family doctor practicing here in Calgary
0:56
um so today we are going to really focus on
1:02
people's awareness understanding and um any questions that you might have around Financial Health uh and financial
1:09
advisors and and investing so those types of topics um we've heard from a lot of Physicians
1:15
that we work with and Jordan can jump in uh you know shortly here in comment too that investing uh setting up for the
1:24
future as a physician you know that Financial wealth and Financial Health is often a topic that people push off and
1:31
often something that they're they're not feeling comfortable early on in having conversations about or diving into
1:37
whether it's because they have debt whether it's they have other um you know things holding them back and
1:42
we want to help people break down some of those barriers that stop them from getting started so I'm Elita I'm also a
1:48
member of cherry health and I'm going to be facilitating the conversation today there is the Q a open to everyone if you
1:55
have a question please pop it into that q a section and I'll be addressing those we will talk for about 30 35 minutes
2:03
um just conversationally answering some of those questions and and talking about Mitch and his experience and then Jordan's as well and then we'll open the
2:09
mics after that to any questions that anyone might have um from a discussion perspective so
2:15
Mitch let's start with you why don't you introduce yourself and and tell us a little bit about what you got what got you into this industry in the first
2:21
place as well yeah hi everybody very excited to be here today and glad to be partnered with with Cherry Hill I think
2:27
they're doing something pretty special um so just a little bit about myself I my background uh I mean I I started out
2:34
in the in the world of accounting Anderson young learned that side of the business and then I ended up at National
2:40
Bank for a couple years um well I did my CFA always wanting to do what I'm doing now that was always
2:46
kind of the end the end goal um several years ago I made the jump
2:52
over to Raymond James and it's it's not by coincidence I ended up at this firm
2:58
um because we are independent we're not a bank we could run our business our way and um I I watch my dad as a family
3:05
doctor and my brothers I have a couple brothers who are actually also uh doctors as well one's still doing his
3:11
training one's an orthopedic surgeon Saskatoon um and um you know I find it a unique
3:17
subset of clients because I see a lot a lot of potential uh if you do it right
3:23
and start start early and um building that wealth over time and so I find an
3:28
interesting uh to work with doctors I've worked with a number of them and a number of professionals from my network that's kind of what makes my uh my
3:36
business and um I uh it's been a great focus and uh it naturally just has
3:43
evolved into kind of my clients at um so this has been a good partnership with cherry health and trying to
3:49
continue on that mission um yeah Jordan why don't you introduce
3:54
yourself well I'm Jordan I'm family physician in my background obviously in healthcare
3:59
and then the tech startup space so I founded Cherry Health couple years ago now we just had our third anniversary
4:05
last month uh and so I'm doing part-time practice now as a family doctor working
4:10
in the weight loss management space and then most of my week is actually spent in the the software Tech startup world
4:16
so you have to do be here and learn a little more about Finance because it's still a big black box of mystery to me
4:22
is a newer stage physician yeah I think that's such a
4:27
a great comment that black box and it's still a piece that that causes a little bit of resistance maybe a little bit of
4:34
unsureness and all that kind of jazz um and while that's true for Physicians I think it's true across the board for
4:39
many people but Mitch why don't you tell us a little bit about um your experience working with with folks who are earlier stage in
4:46
understanding investing and working with financial advisor and and what that really entails what that what that means
4:52
yeah for sure so I'll kind of dub this down to the simplest terms um because I don't know everybody's kind of entry
4:59
level experience with uh investing here um so working with a financial advisor
5:05
my job at its core is to be your personal CFO your financial quarterback
5:10
and oversee everything from a holistic view of your financial well-being to help you achieve your goals over the
5:16
long period of time short and long-term goals I guess we should say so starting with you know some of the doc some of
5:23
the doctors for you know they've been in school for a long period of time typically will have accumulated some
5:28
line of credit debt and other student loans and the conversation often happens is
5:34
well where do I begin and what level do I start investing in building Equity so everything in this world and my view of
5:42
things is everything is you know you have assets and you have liabilities and
5:47
that equals equity and we want that Equity number to go up uh as fast as possible so people will often there's
5:55
there's two things when if you do have a debt one is some people go oh should I pay off all that first before start
6:01
investing well that might make some type of sense um people if they have debt there is a
6:07
way what um if we return over the interest rate and on the debt you could basically
6:14
mathematically be ahead so there's an actual um two two things one is actually what's
6:19
the math tell us and what's the other thing is what's people's emotional uh connection with that as well so one of
6:25
our our you know the biggest hurdle starting out is coming up with the game plan to pay
6:30
down any debts and build equity at a pace that's appropriate for for you know
6:36
the specific individual decline so that's one of the biggest hurdles off the get-go you like that so
6:42
understanding you know people often don't want don't think that it's time to get started with a financial advisor or started on this until they've paid down
6:48
their debt and what you're saying is don't wait for that start the conversation early and and start coming
6:55
up with the plan and it may be that it's not the right time but there's also things that you can do to get started
7:00
early on yeah absolutely so well the big thing with us too is like I'll I I'm happy to meet with any knowing the
7:08
potential and it's all about doing little things over the long period of time if you've just ended school and
7:13
you're you know say your early 30s or even late 30s or what you know that the idea is you're a younger like relatively
7:21
younger with high earnings potential over your career and it's about doing little steps over the long period of
7:28
time so we would essentially come up with a game plan where we would pay down debt at a certain pace and we will track
7:35
that progress over time and um and at the same time build equity
7:40
when interest rates were you know almost zero you know it didn't really make a
7:46
heck of a ton of sense to be rushing to pay off that debt at a super high speed because you're you're essentially buying
7:52
yourself a you know two percent rate of return When interest rates were low every dollar nowadays that you're paying
7:58
off your line of credit if it's floating is basically buying yourself a prime
8:04
minus 0.5 rate of return so that's now you know let's call it six percent just to keep numbers simple
8:10
right so that is part of the puzzle and then also if you have different types of
8:17
debt one you might have MasterCard credit card debt line of credit debt and you know student loans at what pace do
8:24
we pay each of these down and and that'll be part of the the practice as well and then coming up with the plan
8:30
okay if we put some money in RSP we'll end up reducing our earnings for the year and we could put that against the
8:36
line of credit um but basically coming up with a game plan to build equity at a pace that's
8:41
suitable for you so that's kind of the kind of the Crux intro part I see one of
8:48
the biggest issues I've seen is where um on top of like just deciding a pace of
8:56
pain down dad is when if you have it is that sometimes if you don't have a plan
9:01
at the speed to pay down things what happens is you go out and buy you know a car a new house and and then five years
9:09
later they go oh my line of credit is still 350 000 right but having a plan in
9:15
place where okay here's your earnings let's get you here's how much you spend every year and here's the pace at which
9:21
you can pay down debt and build equity um that's important to do and having that conversation and walking through
9:27
the numbers is important to do the second thing I see the issue doing is people um and I like I work with a number of
9:33
doctors and professionals and this happens early on is they will try it and they don't really understand their risk
9:39
tolerances and they'll try and hit a home run in a one-off investment and it'll be super high risky and they'll
9:45
put a large sum of money in and I've seen this happen multiple times not saying that everybody would do that and
9:51
and it ends up like you know you could lose money and if you lose another you know fifty hundred thousand dollars that
9:57
takes a long time to pay back um especially you know uh you know and
10:03
and sets you behind in terms of the um long-term time Horizon and even worse
10:08
than that if you do that in your tfsa you're never getting that contribution room back so it's about doing little things over the big period of time even
10:14
if even if you're putting in uh six thousand sixty five hundred bucks a year into your tfsa and did nothing else and
10:21
and invested it in a conservative way earning seven eight six seven eight percent a year
10:27
um get your bogey as I call it and you will end up you know that's gonna be a
10:33
million dollar account in 30 years 35 years on its own without tax so I mean
10:38
it's about taking Little Steps from an earlier stage and um then and coming up with game plan versus you know waiting
10:45
another so many years until uh you know it's you're behind the eight ball so so
10:52
you mentioned and Jordan I want to come back to you shortly from uh to to ask about your experience
10:58
um sort of as a as a physician who has earlier career about what you came out of
11:04
um you know School thinking and how familiar you were with this but I I wanna I'm gonna come right back to that but I want to ask one more thing because
11:10
you mentioned this this sort of Hail Mary um investing you know hey I see something and it's got a lot of you know
11:17
um buzz maybe going on out there I hear about it talked about in the media or this that and the other
11:24
um is there a time in a place where people can play with some of that buzz and play with some of that like how
11:30
would you recommend people to still you know feel as though they're having a bit of fun with what's going on out there but also you know maybe being a little
11:36
bit more prepared and a little bit more strategic at the same time yeah of course well so
11:43
there's always you're always going to see exciting things and people talk about you know investing is fun right so it is
11:51
fun but um you don't always have to be sexy to be successful at it right like Warren Buffett gets he gets Rich slow that's
11:58
why people think that's what he says people don't like following a strategy because you know what you're gonna get rich slow everybody wants to get rich
12:03
quick and that's not the goal here um but they're the idea behind it is with with like say me I'm I become your
12:10
financial partner right so if you hear one of these ideas it doesn't mean we can't buy we could absolutely buy
12:16
anything in your accounts it's your money um but we have all the research basically where we can look and see how
12:22
things have done um have equity research from professionals whose job is to analyze
12:28
stocks and me who used to be an equity research analyst and can read this you know research and talk to the analysts
12:34
and decide if it actually is a good idea or not right so you know for example you
12:40
know and I hate talking about it but um I I saw a lot of people that have the whole tfsa in 2020 in Bitcoin and you
12:49
know they've that's that's just not just one the right account to put that in too that's just way too much exposure to one
12:56
asset class at all and um I always say like not to go down this rabbit hole but when you're dealing with
13:02
something like that that it isn't a company it isn't the business it's all speculation so it's a high risk
13:07
investment that you're pretty much gambling on not I'm not even going to get in the discussion of that asset
13:13
class but just as an example so um you can absolutely but you you want
13:19
to have the correct amount of risk to a certain asset that's why we build the versified portfolio you don't just go
13:26
put all your eggs in one basket right um a good example of this and I see this
13:32
all the time living in Calgary is we will have um and this is not MediCal but people
13:39
that are an engineer working at Canadian natural resources and they'll come to us and they'll be like here's my net worth
13:45
I got a million dollars and still have seven hundred thousand dollars worth of Canadian Natural Resources stock that
13:52
they've accumulated over the last 20 years and as good as a company as it's
13:58
been and it's trading at 75 bucks now I've seen it be 12. and so it's pretty hard when you go to retire and go oh boy
14:04
the market crashed and now I actually only have a hundred grand so you know you don't all want all your eggs in one
14:11
basket especially when you work work at so it's about building a diversified portfolio and believing that you know
14:17
the economy is going to grow and Company's going to do well and we'll build wealth over time right yeah so
14:23
that's you kind of touch on something else that's so important is
14:29
um tap into a resource who has spent a lot of time getting to know this stuff who's who's spent as much time I mean
14:35
you're a CFA and a certified accountant as well I mean you've spent as much time getting to know this industry and
14:41
getting to know this as as doctors spend getting to to know how to be a a doctor so hey let's let's rely on people who
14:49
have you know some some depth of knowledge when we're trying to make some of these decisions but Jordan I do I
14:54
want to come back to you a little bit um here as a as a physician who was earlier in your career back to my question there
14:59
what was it like for you um coming out and tell us a little bit about what your thoughts around investing were because I
15:05
think that's probably pretty relevant to our audience and and pretty on the ball for for a lot of them too
15:11
well yeah so it started earning money all of a sudden like just switch flipped
15:16
and now you have a career and an income and then it was kind of a what do you do with this right like you
15:22
know previous experience in that like just living off of a line of credit so there was no actual like income or
15:28
investing to be done so it was basically like starting from scratch like infantile level of knowledge and then so
15:34
it's it you have the giant line of credits like your student loans from the federal government from the provincial
15:40
government from the bank just going through med school and residency and then I don't know the number one thing
15:46
you think about is that kind of looming over your head or at the same time you're like should I just leverage
15:53
invest and then tap that all the way out and like I don't know what what's the current kind of
15:59
you know meta and advice in terms of the line of credits and the interest rates
16:04
now like there are things going to go all the way up to 18 so like our parents might have seen before like should we be
16:11
aggressively paying that down or is it okay to like hang on to it slowly over time
16:18
yeah I mean too twofold on that so one interest rates I don't foresee them going to 18.
16:24
um we so just a little background on how rates work and the reason why they've
16:29
been higher is because um they're trying to beat up the consumer because inflation is high right
16:36
so you have monetary and fiscal policy and monetary policies determining your
16:42
interest rates in the market and the idea is for the Bank of Canada specifically is to get inflation and GDP
16:49
being the economy growth to be equal about two percent a year right and so
16:54
what's occurred though through coven excess spending so everybody's got a bunch of extra cash and rates are low so people are outgoing and buying new cars
17:01
new boats new houses new everything and that creates uh High inflationary period
17:06
and then there's also another issue where inflation's been high is because there's supply chain bottlenecks right
17:12
so it's kind of a two-factor issue and what occurred last year is they thought okay let's start raising rates it's time
17:19
to start raising rates we're coming out of covid and and naturally we're going to have what's called a soft Landing
17:24
inflation will come down naturally and we'll be back on track but that hasn't occurred
17:30
um it has to some degree but inflation has come down to a bit it hasn't come down as much as they wanted the issue
17:37
with raising rates though is that it creates um
17:42
uh credit risk so you've seen in the U.S where rate increases even though those
17:49
banks that went bankrupt uh Regional Banks were invested in very safe
17:54
Securities at two percent their Equity value of those Securities becomes
17:59
negative and so basically it wipes out all the value of the bank they didn't actually have anything that was like
18:05
high risk and gonna go bankrupt in there it's just that your Equity imploded so that's that's the race I think rates are
18:12
going to stay higher for longer I think we will probably have some more rate hikes throughout this year probably small right hikes half percent to a
18:18
percent more and they'll be held out longer until inflation comes down so that's the number one so on that fact
18:26
as soon as you every new dollar I see you have every new dollar earned had you have an ability to do anything you want
18:33
with it really but it becomes a new decision do I pay down my line of credit
18:39
or my other debts and which debts do I pay down so the first thing if you we decide okay
18:45
and this could be a every month when you get paid a decision making process okay what do we need to pay down and it'll be
18:53
down your you know do we pay a lot of credit do you pay your MasterCard Bill do you pay student loan well you're
18:59
going to pay down and by the way if you have room on your line of credit and you have twenty thousand dollars in credit
19:05
card debt you should definitely take a line of credit and pay off the credit card so you want to pay down the highest levels of debt first and consolidate
19:11
them into one piece and then the lowest interest rate debts last so when you're
19:17
investing technically with borrowed money the second that we make that decision to invest the money versus Pay
19:24
down the line of credit um their the decision needs to be that the
19:30
rate of return on the investment needs to be higher than the line of credit interest or the interest that you're
19:36
being charged on your debts as a whole right so if you're you're interest rated
19:42
like I just quoted six percent Prime minus 0.5 just to make numbers simple is six well I'm not going to go buy a bond
19:50
with that money that earns you five percent you'd be a negative one percent return but if there's a structure note
19:57
that pays 12 okay that might make sense right so there is some decision making around around that when rates drop down
20:05
to a really low number at you know three you know two percent then it made a ton
20:12
of sense to you know okay let's maybe take a pause on paying down the line of credit and and put money towards uh my
20:19
tfsa and my rrsp and build those accounts up so um I know I would not go and fully lever
20:25
it all and try and hit a home run right now now I see it as new dollars coming in because
20:32
um you are growing like everybody's I would assume is starting to work and earning some income and that income was
20:38
going to grow every year and so it's a decision that'll be ongoing as as things occur and that's what you know
20:44
three or four and I can see opportunities in the market if I went and bought Enbridge today and Bridge is
20:50
traded down a 48 bucks it pays a seven percent dividend I'm going okay it might make sense buy
20:55
some man bridge this month or TD Bank or callus all pretty safe if you bought
21:00
those three stocks on its own you'd have a six percent yield which matches your interest rate plus upside so
21:07
um but if you ask me that same question six months ago I'd be like no pay down a lot of credit yeah so that's what I'm hearing because there's is no
21:13
one-size-fits all and it's really taking a look at where you're at what your earning potential is and and what what
21:20
levers there are that should be pulled at that right time in space for that particular person and for their
21:25
situation oh definitely I never even considered like the dividend this just
21:31
kind of shows how rookie I am yeah like it's always just like what's the the equity value of the Securities that
21:38
you'd be buying and then does that go up or down and then that is the the return but in terms of just like big
21:44
established companies generating Revenue just having dividends come out of that that actually makes a lot of sense yep
21:50
yeah well exactly and the I the thing is um when like talking about company so
21:57
when you when you invest right the lowest risk thing you could do ever is
22:03
have money in your in your savings account at the bank right that would be essentially the risk-free
22:09
rate of return it'll pay a little bit of Interest sitting in there but what people don't see is what your your money
22:14
if he just sits there is deteriorating to inflation right every year your dollar becomes worth less the second
22:22
lowest class thing would be buying a GIC right okay here's a five percent for
22:28
whatever amount five years whatever the government's offering it's locked in you can't touch it
22:35
stand for like uh like a government investment like
22:41
why can't I think of it off top of my head anyway a GIC it's basically a deposit
22:51
from you know government savings and so they will return yeah and they'll pay
22:56
you a rate of return it's basically the interest rate um and the prime interest rate generally
23:03
depends what the yield curve is doing for different periods of time okay right
23:08
now pretty flat yield curve roughly five percent let's call it it's locked
23:14
in money you don't have access to it you can't cash it out okay that's the downside to it you're not gonna go do that if you haven't ever
23:21
any any sort of debt because you'd probably be lower than your interest rate the next level thing would be
23:28
buying a bond a bond is when you loan money basically to a corporation a
23:35
municipality uh government of Canada and when you buy a bond it's called fixed
23:41
income bond is a type of fixed income and fixed income we know the return profile the second we buy it if held to
23:47
maturity every Bond will have be like this your principal amount needs to be
23:52
paid back at a certain period of time okay so that'd be the next lowest thing second we buy it we know the yield to
23:58
maturity the next up the level ladder to keep things simple there's you know different ways
24:03
to wrap things in between is the stock and stocks can have different levels of risk depending on what you're buying so
24:10
you have companies that are Blue Chip and come in with where I'm coming back to this is names in Canada like you know
24:16
amberages your child says your Banks highly regulated oligopolies
24:21
um they're well established companies been around for you know 100 plus years and bridges raised its dividend every
24:27
year for the last 36 years they are generally lower volatility
24:33
don't move as much in the U.S you know you might have Google and apple and
24:39
Amazon they don't pay you any money to own those like they don't pay a dividend well Apple does but like Amazon for
24:46
instance doesn't um you your your your shares increase in value is how you make
24:54
money on it and the reason it does that is because the company grows and so all their profits go back into building the
25:01
business and those names while they've done extremely well and I anticipate
25:07
they will continue to do extremely well you're betting on the growth of those companies and so they're actually in
25:13
terms of how you value a business priced earnings generally are more expensive and are
25:19
more volatile right so the more yielding names more established less volatile pay your dividend
25:24
um and then you'd have like Venture which would be like more speculative investing um so in the terms of the range of like
25:30
just stocks there's a lot of different types you can buy and that's why you have to have a balanced portfolio you
25:36
develop a portfolio that gives us a level of income that we need to pay off your interest on your line of credit match it at least with upside
25:45
um or if you retire like okay say you need a hundred thousand dollars to live off in retirement well okay if I earn
25:51
five percent on two million dollar portfolio that's 100 Grand so that your
25:56
actual asset allocation through your life time over your period of you know from when you're growing to when you're
26:03
established to when you're retire to when you're old and gray will change and we will adjust so that's the goal
26:12
really is to to see where people are at we're talking a lot today about early career um and probably having some of that debt
26:18
still but obviously it's it's your role to talk to people who are at different stages of their career um and closer to retirement or earlier
26:25
stage so for those who are earlier stage and Jordan was talking about being like well I didn't even know these things
26:31
exist and I feel like I have all this debt and some of its credit some of its um line of credit all these kinds of
26:36
things student debt um if a person is going to meet with you how do they need to prepare is there
26:41
anything that you expect from them to have you know information on like what does a person what should a person
26:48
um think about when they're when they want to meet with you yeah for sure so first of all like I'm a little bit
26:54
different in how I operate in the sense that like I I love what I do doors open
26:59
happy to chat with you I'm never going to be like you sign up today or else I'm not helping no like it's a long-term
27:05
process and I'm young I want to be in this business for a lot of years and I like working with you know professionals
27:11
that have a lot of potential um I've basically it's taken people from Ground Zero uh up
27:18
um I definitely like and you'll be surprised like with your earnings if you do it the proper way it's going to
27:23
scroll into a good number and you'll be very confident more more than comfortable if you do it right
27:29
um so generally how the process works is if we we'll meet and the the thing is we
27:35
will get to know one another um get to understand your situation right so you don't necessarily need to
27:42
be like so Step One is being like hey Mitch let's have a conversation I'm happy to do it um and take the time to do it and as
27:48
much time as you need and then the first thing is getting to understand your situation of what's going on that is
27:53
doesn't really take prep we discuss we kind of discuss what your concern are what your goals are what's your family
28:00
look like what's your you know do you want to work part-time are you really putting you know the pedal down and want
28:06
to burn the Candlestick at both ends and and we'll kind of figure those things out that could change right like life
28:14
happens right and so the second part to that would then be okay let's establish a game plan and when that comes into
28:20
play we basically at that point need to open the kimono I need to understand like what the numbers are right and the
28:27
more we know the better so in terms of you know how much line of credit you have how much uh if
28:34
you have any do you have a corporation which we haven't really talked about yet um
28:39
well versed in working with that a number of Corporations and or should I
28:44
have a corporation yet um and then and then in terms of like all your any current investment account
28:51
statements um all that basically information I'd walk you through and so you know it
28:57
really depending on what we talked about in our first call in our first meeting
29:02
we could start to gather kind of the information and that is used to basically develop our understanding of
29:08
you the better we know that the better we're going to be able to serve um and then and then the relationship
29:14
grows over time so we'll one you know open accounts that's easy doesn't take
29:19
much work um pretty basic information any transfers come in kind if there is
29:26
transfers um there's no cost to transfer um and then we come up with a savings
29:31
and investing plan for you and you know whether that be into your corporation here if we have a corporate account your
29:38
rsps your tfsas whatever you need and then the relationship develops over time
29:43
right we'll come up with a you know if there's Dad debt payment strategy we're both Equity growth strata like to
29:50
build your Equity what accounts we're putting it into um then we get into you know that would
29:56
evolve financial planning um we have Financial Planning Group here we would look at your insurances most
30:02
people have insurances through the different organizations at the
30:08
um you know the provincial bodies like the Alberta Medical Association Etc but we have an insurance group in-house
30:14
where we can audit that and be like do you have enough coverage because say you're the sole bread runner in your
30:19
family and you got 350 000 debt what happens if uh you're crossing the street and get hit by a bus and can't work for
30:26
six months so we got to make sure our risks are covered um and then you know down the road
30:32
there's there's everything on our fingertips you know we have uh Raymond James Raymond James trust if we didn't
30:38
want someone in our family managing your state and Raymond Johnson Foundation when you have too much money you don't know what to do with it and you can make
30:44
your own charity Foundation the idea is that everything from A to Z like you're not going to come in on day one probably
30:50
and be like hey I need Raymond James Foundation right like it just it doesn't happen like that so it's really like
30:57
long-term relationship it evolves over time and basically um the better we know you the ability to
31:04
understand what you're trying to achieve that's my job is to deploy that in the easiest way possible I love that I think
31:10
it's that it's that moment in time of remembering there's no judgment this is not a situation where you're like oh no
31:16
you have what forget like that kind of situation absolutely not Physicians you know you I I hear this
31:22
all the time of I wish the patients would have told me the full story because then I can actually make a
31:27
better diagnosis I can support you more you tell me more and there's no judgment and I think that's really important for
31:33
people to remember too when they're getting into this because I think that's um we've heard that's something that holds people back is that fear of
31:39
judgment that fear of gosh embarrassment a little bit that our society and many's hold around debt and you know maybe some
31:46
of those spending habits and I you know I think it's just important for people to remember hey let it go don't worry
31:51
about it get in there and start early and just have the conversation with wherever you're at 100 yeah who's gonna
31:57
kind of be trustworthy and and help you along that Journey with no judgment and and get you to where you want to be
32:03
because that's the ultimate goal right yeah I've had a clients come in and I've
32:08
been in good advocating at basically getting if like as a physician we want you know we'll work with you and taking
32:16
people from zero to like millions of dollars in their accounts and just by having game plan in place right where
32:23
they didn't have it before so um I've seen it everybody people started zero with a lot of line of credit and
32:28
we've we've paid it off at their Pace that they want to do it at and build equity and and uh it's it's kind of a
32:35
game plan in place and being a partner and having somebody hold you accountable at the get-go right that makes a big
32:41
difference yeah well and I like that you talk about savings at the same time and as investing and at the same time as
32:48
paying off that debt because you know things happen maybe you you want to get that house maybe you need that new car
32:54
maybe you know you need to take some time off work for whatever reason so yeah it's great to have that whole Investment Portfolio and stuff too but
33:00
you know making sure you're taking care of some of those different pillars uh you know holistically from your about your financial health so you can really
33:07
you know be set up for success but you mentioned um you mentioned people getting started
33:12
are there any fees like tell me about what people need to think about when they're you know hey maybe I do I want
33:19
to just invest my own money and wing it and the fees are XYZ or should I be working with a financial planner what
33:24
are those what are those fees and and what should people know about about that yeah yeah that's a good question so yeah
33:30
obviously uh of course there's going to be fees you're paying for professional service here and the idea is that our
33:37
value outstrips the outstrips the fees very fair in line with Market
33:42
um I I the fee numbers are based on uh can be based on one one I can adjust it
33:49
to the client situation on how depending on their portfolio for the most part though 95 of the time it's uh fee for
33:59
service so depends on uh basically you're just charged as a percentage based on total account value
34:06
um and and how that works it's an all-encompassing fee and the reason why
34:12
we this way is the best pretty much the whole industry is going this way is that it aligns uh us and and the client to
34:20
the same we both do better together um there's also it's Crystal Clear what the fees are nobody's gonna be like oh
34:27
boy like what was all this Commission on a bunch of different trades that doesn't happen when it's this it's straight up
34:33
it includes all the trading all the planning call me as much as you need like all inclusive fee structure b as a
34:42
percentage decreases as assets go up and the first hurdle um so basically generally to get on our
34:49
discretionary platform you'd need 150 000 now no no no this that I usually for
34:56
doctors I go and Advocate and I get you basically on the fee based platforms from Ground Zero
35:02
um and so and then and then we come up with the game plan and start squirreling money in there and uh and it builds up
35:10
over over time so that's a piece the the good things with it is
35:15
on our discretionary platform is that um say we wanted to make one trade
35:23
across our entire business and buy you know we wanted to buy apple and sell Microsoft that's not a trade we're
35:29
recommending and just throw an example out so great advice yeah that's not a trade we
35:36
can do it in one trade so everybody gets the same price execution because we're selling millions of dollars and buying
35:42
millions of dollars where um you you'll probably get better pricing on that because it goes to a hard trade desk
35:48
um also if there's foreign exchange involved you'd get the mid rate so these are like things that account for that
35:55
you know you're paying for it because it's part of your fee but you know that's it it's going to make up it's
36:00
going to make up some uh some cost the only thing with Visa is writ you can write them off anything outside of your
36:07
rrsp in your tfsa is is right off against investment income versus commission would be pain or loss so it's
36:14
a little more advantageous that way I think that's that's great information whether people you know I I think a lot
36:21
of Physicians get um approached routinely if they're on LinkedIn or in many other ways by
36:26
financial advisors to work with them and I think that can create a bit of a and so I think what you just went over there
36:32
people rewind and re-watched that's an opportunity for you to evaluate the people who you may consider working with
36:38
in terms of what they offer you how they can help you what does their platform what does their organization have to do
36:44
if you're you know uh I think Mitch is great but hey you know you might be somewhere different you might be getting
36:50
approached but evaluate your financial advisor make sure they're there for you that they're really gonna um support you and what matters to you
36:56
across time amen and that they are very very well educated and well seasoned and
37:01
have that depth of knowledge yeah yeah you can you know what I could probably you know go and change my own toilet but
37:08
I'm gonna probably get a plumber in to do it you know um same with you know if I have a cold
37:14
you know maybe I could go pick up some cold medicine but you know I'll probably go see my doctor right
37:20
um you're paying for professional service and that should you know basically pay for itself and dividends I
37:26
think that's the key above and beyond what you're paying in fees and I like I'll say the numbers are very fair
37:33
they're industry average and for premium service at Good at solid Acumen
37:39
um but I can also adjust the fee structuring depending on the client and how we want to work together so I'm not
37:46
going to quote any fees because because of that aspect but I'm like if I talk to you and I want I'm happy to tell you
37:52
exactly what they are it's Crystal Clear before anything happens and I know I'm just being wary of time I know we're at
37:58
that minute to go March and there's no and and absolutely there's no like if we you call we won't have discussion on any
38:04
of this like there's no cost to that I'm just that's just what I do well that's what I was going to say those they're on
38:10
the list we will we're going to share Mitch's contact information so that you have this um him as a resource to ask
38:16
any of those questions ask the silly questions um you know and and ask the really really in-depth questions if you're more
38:22
knowledgeable but don't hesitate to just get involved and start start asking questions because the sooner you start
38:28
focusing on your financial Wellness then then the better off you're going to be across time um so that about wraps us up today like
38:35
I said this conversation is recorded it's going to be saved at Cherry Health um so if you want to watch this or come
38:42
back for for tidbits of it later you can always join us at Cherry health and go
38:47
into those events to uh to be able to see these resources in the future we do have events every week coming up uh
38:53
moving forward on a range of different topics um so please come and check out the events tab at cherryhealth.ca so that
38:59
you can see um what's next and you know what's going to be of interest to you to come and join Jordan any final words
39:04
before we jump off it was good I don't know if we have time I was going to ask how like buying a
39:11
home in fact goes into the investment strategy you know that's just like you see our parents in the previous
39:16
generation and that's like a significant portion of how they build wealth how does that
39:21
play into I don't remember one final big question I think if we go a couple
39:27
minutes over it's okay I think that's a big one that matters to people for sure yeah for sure well first of all like uh
39:34
for a lot of people their home is their largest asset right uh if you're gonna invest in one thing uh not to discuss
39:42
how Bullard should bearish Ham on the Canadian real estate landscape um there is some cities where it's you
39:48
know unattainable to some degree um and also looking at the rates right now if you had a million dollar home
39:55
instead just for sake of arguments say there was zero percent down you know at
40:00
the you know five six percent issue you're paying fifty sixty thousand dollars you're in interest on that on that loan but uh homes uh it's it's an
40:08
interesting asset class because it's one where you can actually use you can't use your shares of Apple for anything your
40:14
homes where you live so I'm all about you know going and getting a proper home that you need don't overextend yourself
40:21
um and it should perform pretty well over the long period of time
40:27
um you know if you want to discuss mortgage rates right now I can talk to you about how you want to do that I probably would not fix in a mortgage at
40:33
this rate I'd probably float it um and um because the amount of
40:38
immigration into Canada I think you know it's going to be pretty pretty solid asset class just because Supply isn't
40:44
there um so you know they're not building enough new homes to basically cover how
40:49
many you know our increase in population but on that front too you want to be careful of how much money you're putting
40:56
down against your home and also it'll impact cash flow make sure you're not overextended because you know doctors
41:02
income's pretty St pretty sticky we could pretty well well um calculate that out and and also you
41:10
probably want to get 20 down on a home as well because because
41:16
um otherwise you're going to be paying um uh Insurance on you know having an under
41:22
levered over levered loan to value on the home homes alone levered investment Mortgage Debt isn't bad debt to have
41:29
because it's held against a asset class that's solid and so it's it's uh it's a
41:35
naturally elaborate investment um to have so you put 20 down your your milk so you had a million dollar home to
41:41
make things easy math if that increases in value by let's call it two three percent a year against how much money
41:48
you've actually invested in it um basically makes it levered and can increase the returns but I think it's
41:55
just a good thing if if you can't afford it if you're the right spot I mean don't over try and get it you know don't try
42:00
and overpay and like force it um get into something you like and are going to be into for a period of time
42:06
and depending on where you're at you know this cost to transact on homes so depending on the province Alberta is not
42:12
bad but you know Ontario is and so um on that front you know what I I love
42:18
real estate as an asset class and they can do well over a period long period of time and it's an asset class that you use so I think if if all all lines I
42:26
think it's good to go purchase home right it might be something that the first first bit of your conversation is
42:32
around saving for it and making sure that absolutely and you can invest the same towards it and also too like if you
42:38
buy a bond that expires in a certain period of time right so you're like I'm actually going to buy a home in five years and I you know I buy a million
42:45
dollar home you know we could go buy a fixed income that will we could develop a portfolio that okay in five years
42:51
you're going to have 200 000 to put down right because you have the fixed rates to return so there's there's definitely
42:57
strategy around around the home front for sure gotcha thank you
43:03
most of my med school friends I would say are renting versus buying so it seems like a topical yeah it's tough
43:11
right now there's just not like well especially in in Calgary here there's just not enough homes for sale
43:18
um to to make it spin um like it's everything your bid and
43:24
across Canada and you're going to be overpaying interest rates are high and
43:30
um we'll we'll see what happens but I could foresee especially a city like Calgary where you're gonna have like I
43:36
think hundreds of thousand new people moving here from across Canada and that'll only push pricing higher
43:44
um you think about like you think in Canada like you have in the major cities you know Vancouver is
43:51
priced High Toronto is probably high Montreal price High what are you kind of
43:58
left with in terms of you know reasonable real estate markets where you you know younger generation can't afford
44:04
to do it and like some of it's in Alberta uh Calgary Edmonton Saskatoon
44:10
um you know East Coast I've heard you know pricing's pretty high there so like it really depends but it's all relative
44:16
when our parents bought homes it's the opposite was the case because their homes cost a lot less but the interest
44:21
rates were a lot higher right so um home pricing is is adjusted to those
44:27
types of things right now it's just like there's not enough supply of homes and rates are high so it's really kind of
44:33
put us in a tough position so I would be patient right now to find something to be honest you know awesome
44:40
all right well that's where we're going to call it today thank you again Mitch for joining us thanks Jordan for hopping
44:45
on the call um as well and look forward to chatting again soon thanks everybody my pleasure thanks so
44:52
much guys and anybody feel free to reach out if you have any questions happy to chat awesome thank you take care

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Cherry Health

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About the Author

Cherry Health

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Cherry Health

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