A short interview/conversation (YouTube video) between Jayson Lowe and Vern about personal financial planning in Canada. The speakers contrast the product-focused advice (e.g., maxing out RRSPs) with a process-focused approach centered on "becoming your own banker" — i.e., controlling the banking function for one’s needs — and argue that becoming your own banker should be used alongside other tools, not necessarily instead of RRSPs.
Chapters
Do you think this should be the core of your financial plan? I have this argument with financial advisors about it all the time. Says they say you should max out your RRSPs first. I say this insurance strategy covers all basis.
Well, again, this is not an either or. So should I become my own banker or should I max out my RRSPs? It's an as well as. So become your own banker as well as all the other things that you decide you want to utilize money for, whether that's investing, RSPs, whatever suits your fancy as part of your overall financial plan. We're not going to say that. Think about this. If the only tool that you have is a hammer, every problem begins to look like a nail. We're describing a process that goes on no matter what. Regardless of what happens with interest rates, regardless of what happens in the economy, regardless of what happens with real estate, Bitcoin, gold, silver.
Whatever that may be. The process of banking goes on no matter what. What needs to be clear is that if you're not controlling any of the banking function as it relates to your needs, then you have an opportunity. And so, provided a person understands the problem, the solution becomes clear. What I'm hearing, based on what you just described, Vern, is that the conversation is product focused. Should I buy this product or that product? If so, how much should I purchase, put into this product, and how much should I put into that product? We're talking about a process. And so if you know that someone has to control the banking function as it relates to your needs, how much of that function do you want to control? That's the question. And the answer is obvious. You should take control of all of it.
And that's really the piece that most advisors aren't talking about. Isn't that right, Jason?
Oh, gosh.
And we have so many great colleagues in the profession and, and I respect the good work that they do and that they want to serve other people. And that's all great. But the fact of the matter is this, most people, most people in this, what's called the financial services industry have rudimentary understanding at best of the tool, let alone the process. You know, there's no such thing as having arrived in knowledge. There's always something new to learn. And my hope is, is that you learn something new. And if you feel drawn to the message and you feel compelled to discover more, then get your hands on a copy of Nelson's book and continue your journey of learning. Now. Your clients will thank you for it. Because once you understand the problem, the solution becomes clear and you implement this in your own life, you'll be shouting this from the rooftops to your clients. And the conversations will become more process focused and not product focused. Anybody can sell a product.
