Andrea Thompson, certified financial planner at Modern Cents in Mississauga, pictured in Gran Canaria, Spain, at the volcanic rock formations of Barranco de las Vacas.Supplied
In Behind the Advice, we ask advisors about their relationship with money from a young age, lessons learned over the years, and how those experiences influence the advice they give clients today.
Andrea Thompson, certified financial planner at Modern Cents in Mississauga, talks about growing up in a financially savvy household, why she studied science before getting into financial services, and why Mary Poppins would make a good advisor:
Describe your upbringing and how it shaped your relationship with money.
I was born in Toronto, but my younger sister and I were raised in a few different cities across Canada, including Ottawa, Bedford, N.S. and Oakville. My dad was an actuary and my mom was a nurse. My parents were pretty consistent about saving money. We lived off my dad’s salary and saved my mom’s. My parents saved up to buy their first house, mortgage-free, back when that was possible for working-class families.
My dad started teaching me about money from a very young age. As a preschooler, I remember reading the stock pages with him on Saturday mornings and I’d say ‘yah’ or ‘boo’ depending on whether his mutual funds were up or down. I got a paper route when I was 10 and my dad helped me open my first savings account.
My parents told me growing up that I would have to pay for a third of my post-secondary education, so at age 16, I got a part-time job at Michaels, an arts-and-crafts store. I saved every penny because I wasn’t sure how long it would take. Unfortunately, it took even longer than I expected after I got into an accident with my mom’s car (I wasn’t injured) and they made me pay for the $4,000 in damages.
What did you want to be growing up and how did you get into financial services?
I didn’t know what I wanted to do when I was growing up. I studied biology and environmental science in university because I found it interesting and challenging, but I wasn’t sure what I would do with that degree.
While in university, I started working summers at the life insurance company where my dad worked. I’ve been working in the industry ever since, focusing on financial planning.
I did spend one summer studying volcanology at the University of Hawaii, which was fascinating. It wasn’t ever going to be a career for me, but a lot of my travel these days involves hiking volcanoes.
Ms. Thompson near the summit of Mount Teide volcano on the island of Tenerife, Spain after an arduous e-bike journey up the volcano.Supplied
Why did you choose to start your own business?
I had always been interested in advice-only planning, but it wasn’t something many people were doing full-time until more recently. I remember around 2010, someone told me the only way I could earn a living doing advice-only planning was to also do tax preparation, so I put that idea on the shelf.
Then, as the years went by, I noticed more clients were asking for it. In 2022, I took the leap and started my own advice-only firm focused on Canada-U.S. cross-border planning, believing many people were looking for what I could offer.
When I told some people in the industry that I was planning to start my own firm, I was told it was a silly move, that I wouldn’t be successful, and that I would come crawling back to the brokerage world. That triggered something in me to prove them wrong, which I did.
What is the biggest money mistake you’ve made and what did you learn from it?
I made some risky investments with my personal money early in my career. I came from the life insurance side and focused on financial planning, so I didn’t have much experience with investing. It was in early 2008. I was trading options and margin investing without fully understanding the risks. I lost a lot of money when the markets crashed later that year.
I learned that the stock market doesn’t just go up, which seems ridiculous, but it was my first market correction, and I learned the importance of diversification. I’m still carrying forward capital losses from 2008.
Which famous person or fictional character would make a great financial advisor and why?
Mary Poppins. This nanny came into a chaotic household and made everything simple for the family. She held court, but in a fun way, and had the family’s respect. She brought that whole family together.
What advice do you have for someone who wants to do what you do?
Understand the difference between doing the job and running a business. Being an advice-only financial planner requires you to be adept at both, if you’re thinking about starting your own practice.
Not everyone wants to handle the business side, so talk to others who have done what you want to do first and make sure you understand what you’re getting yourself into.
This interview has been edited and condensed.