Financial Planning

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Welcome to the Business Gay Podcast where we talk about all things business, marketing and entrepreneurship. I’m your host, Calan Breckon, and on today’s episode I have financial advisor and educator Parisa Pajooh. Parisa is a seasoned queer financial advisor and educator dedicated to making financial literacy and planning accessible, inclusive and personalized. With a focus on trust, transparency, and understanding each client’s unique circumstances, Parisa offers a supportive, holistic approach to financial and investment planning. Parisa is a member of the Financial Advisors association of Canada and actively volunteers by serving on committees and boards including the Rainbow Entrepreneur Collective and the Estate Planning Summit. I’m excited to talk financial planning and education with Parisa, so let’s jump in.

Hey Parisa, thank you so much for joining me on the podcast. How are you doing today?

[00:01:41] Parisa Pajooh: Doing fantastic. Thank you for having me.

[00:01:43] Calan Breckon: Yeah, I’m really excited to dive into kind of all things like financial, financial planning, all of these things tend to in the queer community, specifically queer plus community, you know, 10 we have different needs and different things. So I’m excited that we have you on today and we’re going to just jump right into it on that kind of, you know, same thread of thought. What are some unique financial challenges that queer folks face that often get overlooked in, you know, the heteronormative or typical financial industry?

[00:02:15] Parisa Pajooh: Yeah, I mean, that’s a great question. I think when it comes to challenges, you know, there are so many layers. I’ve been in the industry for the past 10 years and five years ago I started kind of like my practice and I’ve been serving a lot of queer families, business owners and individuals across the country. And what I’ve realized is that our system is traditionally built for that, you know, default nuclear family with one retirement Plan and you have a house in the suburbs, you know, and, and then this is not the story for most of us, you know, it doesn’t fit all of us. So a lot of us, we are navigating non traditional family structures, for example, or there are gaps in legal protections or for example, a lot of queer clients that I have conversations with, they have been faced discrimination or for example, lack of family support when it comes to their finances. Right. So naturally these things impact how we earn money, how we spend money and how we plan for it, you know. You know, I had clients, for example, that they may be more likely to support the chosen family or face like they have, like they have to deal with higher health care costs due to gender affirming care. Right. So because some of those cost is not always being covered. Right.

So I think it’s really important to have an advisor, to have a person in the industry that represent, you know, us in this very male dominated and male populated industry and who understands these unique challenges. Right. Because this is part of my lived experiences as well.

[00:04:07] Calan Breckon: All right, yes, there’s definitely. We could go on and on, I’m sure about. I had this one conversation with somebody about how they had more of a polyamorous relationship. And so they were like, well, how do we plan for this kind of a relationship? And it was quite a long term relationship. And they’re like, well, how do we get housing? How do, how does everybody get their kind of fair share, their equal share in all these different kinds of things that, you know, it doesn’t necessarily go into the quote unquote nuclear families. So there’s lots of different challenges that the queer community does face.

So what’s maybe one myth about money or financial planning that you want to break down and bust right now?

[00:04:48] Parisa Pajooh: Well, that’s an easy one. It’s just always I hear from people that, okay, I’m going to wait until I become wealthy and I become super rich and then I’m going to be ready to start planning or investing or work with a financial advisor.

I think from my experience that’s the biggest myth that I’ve heard because that’s completely not true.

And to be honest with you, when I was younger, in my early 20s, I had the same idea as well. I’m like, okay, I’m going to work hard and I’m going to make so much money and then I will start planning and looking after my money. But then I realized that planning isn’t about having all the answers or checking all the right boxes. Right.

It’s about getting that support, getting that advice and education and having access to resources while you’re still figuring things out right as you go.

So I think in my opinion, the earlier you build that relationship with someone you trust who understand your values, your objectives, your goals, the better your foundation is going to be.

[00:05:55] Calan Breckon: Yeah, definitely. I think everybody always says starting earlier is better than starting a little bit later. For sure. So what does it actually look like to work with a financial advisor then? And like, how is your approach more holistic and inclusive than like the typical experience?

[00:06:13] Parisa Pajooh: Yeah, for sure. I think working with a financial advisor, I think it should be beyond just a one time transaction. And unfortunately, this is what most of us have access to. Most of us have access to branch level service, you know, which is basically okay. It’s very fast, it’s very, it’s not really personalized. You don’t really have that time to talk your goals and objectives, your values.

But you know, it’s honestly should be more than just a one time thing. It should be an ongoing relationship.

So, for example, when I work with someone, you know, the first phase is like who you are, you know, what are some of your goals, what are some of your objectives? Okay, let’s analyze your current financial situation. Okay, Parisa, here you are now as a person, as a business owner, you definitely have some goals, objectives for your financial life. Okay, let’s put that all in, you know, in the agenda to talk about it.

What are some of your fears? What does your family dynamic look like? What is some of the biases that you have? Right.

And then asking about these things, when I do that with my clients, it helps me to really understand their mindset around money, how they make their decisions, you know, if they have any like financial support in their family or not. Right. And what type of life they’re trying to build, what type of retirement, you know, they’re planning to have.

And it’s really interesting and I love this aspect of my profession a lot because sometimes you talk to people who are in their late 20s or early 30s and retirement obviously looks so far away. Oh, Prisa, come on. Like, that’s another 30, 40 years from now. I don’t need to talk about it right now or think about it, but I get it. But you know, we can, we can always, you know, close our eyes and envision like what type of retirement I want to have. Right.

So I think working with someone, going back to your question, with a financial advisor who does things on a more holistic approach, it kind of like creates that Space for you to build that personal connection. And obviously based on that, we’re going to create your financial plan and then the next stage is to implement that plan. And, and the implementation stage is, you know, of course, very important. But again, back to that branch service. It’s usually when that relationship between the advisor and client stops, okay, you sign your forms, we open your accounts, you’re good to go. You’re probably never going to get a call from us, right? I barely hear from my clients like, who had that kind of like relationship with advisors that like, you know, my advisor called me like every quarter to check on me, to see how my life is going. Usually the system is not built that way.

But for me, once we implement that plan, the next stage is basically okay, we have to keep monitoring your plan and review your financial plan as we go. Right? Because we are looking at this long term approach. So because you’re a person and as you grow, your financial needs grow as well. You probably, you know, have maybe you have a home or now you have a baby or you have a new job, right? So it’s really important to keep monitoring and reviewing your plan and keep those conversations going between us.

So that’s basically how like my relationship with clients look like. And this is the typical experience they get.

[00:09:52] Calan Breckon: Okay, so you kind of were touching about the differences between independent advisors versus like a branch advisor. Can you dive a little bit deeper into that? Because I know like once upon a time I had a branch advisor, but like they really didn’t do much. I think all we did was like open a mutual fund and then years later it ended up biting me in the butt anyways.

And so because I went and lived abroad and such and such, and so it was just like none of this was explained to me and I just felt like, well, what’s the point of this person? And it wasn’t very personable. So. So dive a little bit more into that difference between independent versus advisor.

[00:10:30] Parisa Pajooh: Right. I mean I get really passionate when I get asked this question and honestly I can go on and on, but you know, there’s a lot of differences. You know, just like as I explained, I think the type of relationship is very different and I have so much respect for my colleagues, you know, in different branches, you know, but it’s just like simply like because of lack of time, you know, they don’t have that time to spend. Like imagine like there’s 30 people in the line, they don’t have the time to sit with every individual and have it, you know, 30 minute 45 minute conversation. Right.

So I think the biggest difference is that relationship that you get to build with your independent financial advisor. They’re kind of like your support team, right? Because when I work with my clients, you know, we’re talking about their taxes. We have, we bring, sometimes in different cases we bring lawyers or bring accountants in the team. So we are here as a team to support you.

And so I think that’s one of the biggest differences. And another difference is that independent financial advisors, their access to financial products or strategies in the market is not limited to one branch. Right. Like for example, if I was, if, if I was working at bank, I probably only have access to what that bank has. Right. So my shelf would be very limited versus us independent advisors. We work, you know, with really big channel of like products, a lot of product providers.

So yes, yeah, just like we have this privilege to offer more options to our clients for sure.

And I think another thing is, like I mentioned before is that ongoing support and ongoing relationship and that follow up. Right. Usually my clients with me, they get, we do quarterly based reviews. Right. And sometimes that review can be a 10 minute. Hey Prisa, let’s jump on a zoom call. Okay. Are we still on track? Everything’s good. It could be 10 minutes. It could be something a little bit more deeper that we need to kind of like change the client’s plan as we move forward.

[00:12:45] Calan Breckon: Definitely this kind of question popped into my head as you were talking about all this is that obviously going with an independent financial advisor is going to have costs to it associated differently than if you were at your bank. Your bank kind of has that baked in.

And I’m not going to ask about those costs specifically, but what I am going to say is that the thought I had was around embarrassment around debts and that in the queer community quite often we, you know, there’s so many stories of people being kicked out or not having that financial support or you know, kind of that broken system which then is the knock on effect throughout our lives and that there’s that embarrassment around your finances, whether you’re in debt or you can’t hold money. And so how does somebody who maybe is in that position, who wants to do this but doesn’t have those capabilities or doesn’t necessarily have the funding to be like, oh well, I need to spend X amount of dollars with this person that just seems like money going out when I have this debt.

Maybe. Can you speak a little bit about that?

[00:13:48] Parisa Pajooh: It’s true there are, I mean, different independent financial advisors as you might Know, they have different structures of like how they get paid.

You know, we have, right now in the market we have fee based planners, which is basically per session or per plan.

We have commute based advisors and there are advisors out there that have like sliding skill. Right.

So I think that, you know, I can only talk about myself and I think how I do things.

It’s basically, you know, I started my practice to provide the services, this knowledge to everyone, regardless of like how bad or how good their financial situation look like and how much money they have and where they’re from and what’s the, their statuses. Right.

And I think the best way for them is to know that there are advisors, you know, in the financial industry that are willing to meet them at, you know, whatever stage of life they are.

You know. So for example, I use the house analogy. Always like the house analogy or financial house analogy is basically, okay, I understand you have some debt to deal with or you know, you need to take care of your budget or cash flow or your. I work with a lot of small business owners that their pain, like the, the main pain for them is inconsistent cash flow. Right. Some months it’s better, some months it’s lower. So how, how can I sustain that? Right.

And, and I don’t know if it’s all this makes sense at all, but what it’s trying to say is like the best way is like, yes, there are different advisors that they’re doing different things, but there are still advisors out there that are willing to kind of like work with you and with whatever budget that you have.

[00:15:48] Calan Breckon: Yeah, right, that’s important.

[00:15:50] Parisa Pajooh: You know, like I had those situations before, you know, that, you know, client was completely transparent with me that hey, I want to hire you, you know, as my advisor and I want to work with you. But that’s my situation right now. But I really want to do that. And you know what, again, some of the, based on their products or the strategy or the plan that we do for them, sometimes those partner companies actually compensate us directly.

So I actually, there has been a lot of cases that I didn’t need to charge my client upfront. Right. So it was a win, win situation for both of us because at the end of the day I get compensated for my time and my effort and they get to have me as their advisor and their plans are, you know, being implemented. So yeah, sorry, I don’t have a straightforward answer. No, that’s when it comes to planning, it’s really like, it’s very like one by one. But I think you know, just in short is like reach out and talk to the person. You know, I myself offer like a, you know, complimentary session and then we can figure that, figure things out together, right? Because at the end of the day, you know, there are advisors out there that they are very committed to their mission. Right. And you know, if, and like myself and you know, if the, how if I get to have that conversation with client and understand the situation and I understand that, you know, they need that help and support, but it might not be able to, you know, cover my cost or something like that. We can always get creative and find other like alternative options.

[00:17:37] Calan Breckon: Okay, yeah, that’s really important information because knowing that it doesn’t necessarily need to come from the person, that it can come from outside. Like there’s a product that you have that you’re like, oh, I’m going to get compensated from this. So it’s okay because something’s going to be coming in. It’s definitely really important because that helps the folks that maybe are a little bit embarrassed about their financial situation being like, well, I can’t afford to work with that person. It’s like, well, give me a call. Maybe there are ways that we can work together. So that’s really good.

Moving into kind of more the long term thought process is like, why is it, you know, why is the long term planning important? Like tax planning, estate planning, especially important for queer folks. And what are some of the things that we should be thinking about now?

[00:18:26] Parisa Pajooh: I think I really like that you mentioned state planning. And so state planning basically means that, okay, I’m, you know, I have a financial plan, I’m investing, I’m working really hard, I’m making all this money, right?

So one day I’m going to get older, right? What’s my plan? Basically to pass on this assets, this money, whatever I have under my name to my next generation, whether it’s my chosen family or kids or beneficiaries or partners in the most tax efficient way possible. Like as you know, they’re like, Canada is one of the highest tax regimes in the world and we pay a lot of taxes, right? So, so state planning can look a little bit different for queer people, right? Because most queer folks like us, we don’t benefit from that legal assumptions around marriage, inheritance, right. Or like having that beneficiary, right.

So this means that simply if we don’t have a plan and if we don’t start looking at that long term planning, our intentions basically might not be honored.

And I really hope that anybody who is listening to this.

And you know, I’m, you know, I get really passionate about this topic because I always make sure that my clients have a will on file.

It doesn’t matter if you’re in your 20s, in your 30s, in your 50s, does not matter how much money you have, if you have kids, please make sure that you write your will. I know it’s a tough and emotional task to do. I’m happy to navigate those conversations, help my clients. I’m not a lawyer. I can’t write wills and power of attorney and those legal documents myself. But I will always make sure that it’s part of your financial plan.

And you know, because, you know, I hear from a lot from queer clients that, okay, you know, I don’t know if I ever have kids or not. Right. I totally hear you. Like, you know, I’m on the same boat as you.

But you know, you might have a favorite charity or maybe you’re so passionate about like different causes. Right.

So just having that written on a piece of document and even if you can hire a fancy lawyer like that would cause like 2 or 2 to $3,000 to write you will. You can simply just like have a piece of paper and just write things down, sign it and give it to your, you know, somebody that you trust in your family or your best friend or your advisor. And, and just to make sure that your intentions, whatever you have, it will be honored if something happens to you or your family.

[00:21:17] Calan Breckon: Yeah, really important.

[00:21:20] Parisa Pajooh: You know, and then I can think about like, you know, when we talk about long term planning, I talk with my clients about naming beneficiaries, creating that powerful attorneys, making sure your chosen family, your family is protected.

Right. And I think this is beyond just those legal steps. I think this is the, this is the care, this is about care and providing that care for your friends and family. So it helps us protect each other, you know, as we move forward and as we navigate this very traditional financial system together.

[00:22:00] Calan Breckon: Yeah, the system was not set up for us for sure. I know. I’ve seen things here and there about how trusts are a way that a lot of like the very wealthy set up trusts to pass on their stuff and their finances and everything to their, you know, kids or significant others or who, what have you to kind of circumnavigate certain taxes and stuff like this. And you know, most everyday regular folks have no idea about this and don’t do that. And it’s just the regular what have you happens. And there’s lots of different things and ways to, like you said earlier, navigate that in the most tax efficient way to help you and help support you and your family.

What role can a financial advisor play in someone’s life beyond just managing money? I know you kind of just talked about some, but let’s kind of wrap the conversation up of like, what else you could actually help support in.

[00:22:56] Parisa Pajooh: For sure. I think, like I said, you know, I make sure that I become part of your support team. Right.

And that’s really important to have.

It’s not just about your money management or how much money you have in your TFSA or RSV and your budget. It’s about helping you feel confident, helping you make really confident decisions when it comes to money and making sure that your personal finance is actually aligned with your personal values. Right? So, for example, a very, very common thing that we talk with clients is like, hey, I have some money and I want to invest, but I don’t want my money to support certain things, you know, like weapon manufacturing or like oil and gas industries or things like that. Is there a fund or portfolio, you know, that can help me that still grow my money? So I have a foot in the market, but also is aligned with my personal values? My answer to you is, yes, there is. Right.

But again, so that’s something that is just beyond the money management and that we come to that conclusion by having these conversations. Right.

Another thing, another role is like, and again, I’m talking about my experience and sometimes my clients, they call before making a big life decisions, right? And how this decision is going to impact me. I have clients that receive the big inheritance, like, you know, their grandparents passed away and suddenly, you know, they’re sitting at like 400, $500,000 can. That’s a lot of money. How do I, what do I plan with this? Like, how do I honestly like, you know, do anything with this money, you know, or during moments of crisis as well? You know, there are things that happen in families could be sickness and illness or death. Right.

How do I navigate those moments of crisis as well?

And I think, you know, what I like to end it with. I think money is definitely beyond just budgets and its riches and investments. It touches every part of our lives.

And I think I see my role as helping my clients navigate it just with more clarity, confidence, and less shame.

[00:25:24] Calan Breckon: Yeah, that’s great. You, you were talking about like the types of investments you can do and like making sure that you’re like, well, I want it to be in the areas I want it to be in. And I did have A guest on before William Burkhart talking about system level investing and it’s looking at like the holistic way of investing. Not just like where should you put your money in all these different ETFs and all that kind of stuff but like everything down to like the workers in the places that are working and like how they’re treated. And there are ways to look at that and define. And of course working with you know, a financial planner or somebody in that world is going to help you get access to that knowledge so that you don’t have to do all of that yourself. This has been a really fantastic, great conversation. You’re just a wealth of knowledge. Where can people find out more and folks connect with you? Parisa, thank you so much.

[00:26:14] Parisa Pajooh: Yeah, there are through my website that’s called diverse, rails or parisofinancial.com I think that’s the best way they can get a hold of me. I have my calendly linked. I always offer free and complimentary consultation sessions and honestly I always encourage people even if they don’t want to work with me.

I appreciate just connecting with like minded individuals in our community and find ways, explore ways how we can support each other. Like I’m interested to learn more about your practice as well.

And yeah, Also I’m on LinkedIn. You can just search me by my first and last name, Paris of Aju.

[00:26:57] Calan Breckon: Awesome. I’ll make sure to have all those links in the show notes for everybody listening. Well, thank you so much for being a guest, Parisa. This has been wonderful.

[00:27:04] Parisa Pajooh: Thank you so much again for having me. It’s been great.

[00:27:07] Calan Breckon: Thanks for tuning in today. Don’t forget to hit that subscribe button. And if you really enjoyed today’s episode, I would love a star rating from you. The Business Gay podcast is written, produced and edited by me, Calan Breckon. That’s it for today. Peace, love, rainbows.