From social work to finance: Helping clients in transition

Robinson, senior financial planner with D. Robinson & Associates Inc. in Winnipeg, focuses on clients in transition, specifically those about to move into retirement. To help clients navigate that change, Robinson, 56, uses his background in social work to ask questions, educate clients on financial topics and look beyond the numbers to focus on clients’ objectives.

Clients facing a layoff are worried, Robinson says: “They’re anxious about whether they’re going to be OK. There are a whole lot of other non-financial considerations, and if you’re sensitive to them, people really appreciate it.”

Robinson’s business, established in 2000, also includes another financial planner as well as administrative staff. He works on a fee-only model and is not licensed to sell investments; instead, he focuses on the overall financial planning needs of his 150 or so clients. Robinson, who holds the certified financial planner (CFP) and registered financial planner designations, works with corporations and government bodies to help their employees understand their retirement plans.

Most of Robinson’s individual clients are between the ages of 45 and 60, although he has some clients as old as 85. He provides advice on pre-retirement planning and offers retirement income reviews and retirement viability reviews.

On the corporate side, Robinson spends more than 100 days of the year presenting seminars for employees in both the public and private sectors regarding their retirement plans, particularly their pensions. These seminars can range in length from half a day to three days, depending on the organization. For some of these clients, Robinson has to get down to the basics, explaining how RRSPs work, basic tax planning and what is reasonable to expect in investment returns.

Many of these sessions are general retirement planning seminars. In some cases, however, businesses that are downsizing their workforces hire Robinson to provide planning services for employees who are about to receive a severance package.

Typically, Robinson will work with these clients in two phases. The first phase is a group information session designed to educate employees and help them prepare for an individual planning meeting.

Robinson then meets with these employees individually two or three times to discuss their personal finances and to discuss their next step, whether that’s to return to the workforce or to retire.

People in these situations can feel as if their lives and financial situations have been turned “topsy turvy,” Robinson says. These individuals need help in assessing both their long-term plans and their short-term necessities. Robinson will cover several topics with these clients, such as their cash flow and the tax implications of their severance pay. Helping these clients determine their immediate needs for the first 12 to 18 months after they receive their pink slip is crucial.

Robinson also focuses on the non-financial anxieties clients may be feeling when early retirement is a distinct possibility. These conversations can cover topics ranging from housing and potential health issues to hobbies and interests.

“It’s not like I’m counselling per se,” Robinson says. “But I think people appreciate some of my counselling skills and [ability to go] into a bit of coaching, as opposed to pure financial planning.”

Not that Robinson does all the counselling himself. He recommends clients to other professionals when appropriate, such as accountants, lawyers, wellness consultants and couples counsellors.

Robinson’s penchant for counselling comes from his previous career with Manitoba Telecom Services’ (MTS) employee assistance program. Initially, Robinson, who has a degree in social work, provided general employee support and guidance on wellness. He also became interested in the financial side of things, so he completed his CFP designation while working at MTS.

With that added qualification, Robinson began advising MTS employees on financial issues in much the same way as he works with his clients today. For example, he would advise up to 300 people in one year regarding retirement or severance issues while also running educational seminars.

“[That work] was a nice, supportive introduction [to financial planning],” he says.

Robinson’s interest in financial issues dates back to his days as a student at the University of Manitoba. To help finance his education, he provided tax return-preparation services to small-business owners and farmers. While dealing with those clients, Robinson realized how confused people can be about their finances, even people who have been running their own businesses for years.

“I was puzzled [about] why so many people in business still would be having issues with their investments, their banks and their taxes,” Robinson says. “And [those issues] drove me to be more interested [in financial planning].”

Today, Robinson still meets many people who are unclear about the fundamentals of their finances or who simply have never had a deeper conversation with a financial advisor about what they want from their plans. Yet, Robinson notes, there now is greater emphasis at investment industry events on matters beyond the basic “nuts and bolts” of a financial plan.

“I’ve seen an increasing number of speakers on psychology, and personal growth and development,” says Robinson, who believes the shift toward discussing the emotional side of financial planning has occurred as a result of demographic trends.

The wave of baby boomers who are set to retire in the coming years, for example, want to talk about how they can make their lives meaningful in retirement once the basics of their financial plans are in place.

As well, Robinson notes, a growing understanding of behavioural finance is changing the way the investment industry approaches financial planning.

“Seeing that element of personal finance being recognized more,” he says, “is kind of gratifying.”

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