Andrea Thompson: The Growth of Advice-Only Planning & Cross-Border Tips | TWB Podcast #61

Our guest this episode is Andrea Thompson — Founder and lead financial planner of Modern Cents, a virtual, advice-only firm she launched in 2022 after more than 16 years in the financial industry. A CFP who also writes and marks the national CFP exam for FP Canada, Andrea built her practice to serve Canadians who have cash flow instead of assets, making quality financial advice accessible to younger people and those below traditional asset minimums. In this episode, Dave and Andrea dive into the rise of advice-only financial planning in Canada. They explore why she walked away from the traditional model to build Modern Cents, the factors fueling the model's growth, how advice-only planners find clients and where the pricing sweet spot lands. They also break down one of the model's biggest hurdles, the implementation gap between receiving a plan and actually executing it, along with the question of whether financial planners and investment advisors should stay in their respective lanes. The conversation also explores Andrea's specialty in cross-border financial planning, including the common mistakes Canadian residents make with their US 401(k) accounts. They discuss the overlooked psychological and financial value of annuities and why so many people resist them, how young adults should balance saving for a down payment against retirement, and the case for term insurance over permanent cash value policies. Whether you're curious about the advice-only model, weighing the value of professional financial advice or navigating the complexities of cross-border planning, this episode is full of practical takeaways you can put to use right away. 💈💈💈 The Wealthy Barber Podcast is Canada’s go-to source for approachable, entertaining, and free financial education. Hosted by none other than David Chilton—former Dragon on CBC’s ”Dragons’ Den” and the best-selling author of ”The Wealthy Barber” and ”The Wealthy Barber Returns”—this podcast is here to help Canadians manage their money better. Much better. Find all episodes and more Canadian personal finance content at https://thewealthybarber.com. 💈💈💈 Show Notes (00:00) Intro & Disclaimer (00:55) Intro to Andrea Thompson (02:43) Why Andrea Started Her Advice-Only Firm (06:43) Factors Fueling the Growth of Advice-Only Planning in Canada (07:55) Lead Generation for Advice-Only Planners (09:25) How CFP Education Has Improved Over the Years (11:55) Community and Collaboration Within Canada's Financial Planning Industry (13:55) Overcoming the Implementation Challenge in Advice-Only Financial Planning (21:23) Navigating Investment Execution for Advice-Only Clients (23:47) Should Investment Advisors and Financial Planners Stay in Their Respective Lanes? (28:03) Should You DIY Your Retirement Plan? (29:52) What's the Pricing Sweet Spot for Advice-Only Planners? (32:27) Cross-Border Financial Planning Challenges (35:35) Common Mistakes with US 401(k) Accounts for Canadian Residents (36:53) The Psychological and Financial Value of Annuities (40:41) Why Don't People Like Annuities? (43:34) Balancing Down Payments and Retirement Savings for Young Adults (47:43) Childhood Money Lessons from an Actuary Father (48:29) Term Insurance vs. Permanent Cash Value Insurance (50:07) The Critical Importance of Disability Insurance (51:29) Conclusion