Kimberly Wood of Johnstone Wealth found herself reviewing household finances during her mom’s final days in the hospital. “You don’t want some of the last words you say to your loved ones to be about money,” she says.Supplied
In the Behind the Advice series, Globe Advisor asks advisors about their relationship with money from a young age, lessons learned over the years and how their experiences influence the advice they give to clients. There’s also a Behind the Advice podcast; you can find all of the episodes here.
Kimberly Wood, a wealth advisor with Toronto-based Johnstone Wealth at National Bank Financial Wealth Management, discusses how her dad’s career change made her think more carefully about money, serving as her mom’s executor in her early 20s, and what she learned about mixing money and friendship.
Describe your upbringing.
I grew up as an only child in a multicultural household in Oakville, Ont. My mom was Chinese, but born in Pakistan. My dad was born and raised in Montreal. My maternal grandmother, who was born in India, lived with us growing up after my grandfather passed away. She helped raise me.
My mom worked for Petro-Canada as an executive assistant, and my dad held various sales roles early in his career, including as a stockbroker and a mortgage broker. After having a heart attack in his early 50s, he became a bus driver for Oakville Transit. He really enjoyed it and found it a lot more relaxing.
I had been in a private school and hadn’t thought much about money until kids at school started making fun of me, saying I was poor now that my dad was a bus driver. At 11 years old, it was the first time I had considered my family’s financial status.
How did your childhood experiences influence your money habits?
After my dad’s heart attack and subsequent career change, I didn’t notice any major changes to my life, despite my dad having to take a pay cut in his new career, which caused me to reflect on how our family was able to do that. The ability to control your time and make choices freely is the highest dividend money pays – a lesson my dad learned during his time in the wealth industry. He was able to pivot careers to make the best decision for his health because our family was financially secure.
Saving for a rainy day isn’t just because an unforeseen expense comes along, but because it gives you the freedom to make the best decisions for you and your family. This viewpoint has always stayed with me and influenced my decisions.
What led you to a career in financial services?
Growing up, I thought I wanted to be a lawyer specializing in estates or taxes. My first full-time job was as an associate at a financial firm, a position I held while studying for the Law School Admission Test. A few months into that job, my mom got sick with congestive heart failure and passed away just more than a year later at age 61.
My mom handled most of the household finances, and during her final days in the hospital, she asked me to bring in her laptop to review them. She wanted me to handle everything for my dad and grandmother after she passed away. When I look back on that day, I think it shouldn’t have been one of our last conversations. We should’ve been talking about how much we love each other, not how to pay bills. You don’t want some of the last words you say to your loved ones to be about money.
My dad was unable to be the executor of my mom’s estate due to grief, so it became my role. Unfortunately, the estate was not as straightforward as expected, and it took three years to finalize it.
As my mom’s estate issues came to the forefront, I felt the frustration of poor financial and estate planning. I decided to pursue my certified financial planner designation because I wanted to ensure that what happened to my family doesn’t happen to others. I wanted to help others address their estate and taxes as an advisor, rather than as a lawyer.
What decision around money and investing made the greatest impact on your life?
After my mom’s passing, she left me $22,000. At age 23, it felt like a lot of money. Instead of spending it, I decided to invest the money in a tax-free savings account. Eleven years later, I still own two of the three stocks I purchased back then, experiencing first-hand the power of compound investing.
What is the biggest money mistake you’ve made, and what did you learn from it?
I could be Katherine Heigl from the movie 27 Dresses. A few summers ago, a longtime friend asked me to be part of her wedding party, and I accepted, even though I also had obligations for at least half a dozen other weddings around the same time.
Between the different weddings, rising interest rates, my mortgage renewal and the heat pump breaking in my condo, I was starting to feel stretched financially. I expressed concerns about the costs of the bachelorette party events for my longtime friend’s wedding, and it wasn’t well-received. I was removed from the wedding party. Unfortunately, it also severed the friendship.
If I had a crystal ball to know I would have been okay financially, I would have sucked it up. Sometimes money and relationships can be complicated. I’ll stand by my decision because it felt comfortable at the time, and I understand that finances are extremely personal. However, I will always consider the impact it has on my relationships moving forward.
What do you worry about when it comes to money?
I worry about what aging will look like for me as I’m single and don’t have children. While that could change, the added costs of living alone well into old age are something I plan for meticulously.
What advice do you have for someone who wants to enter your business?
Be authentic. I share my personal experiences with clients because they make me who I am. They also know that I have a personal understanding of the importance of tax and estate planning.
This interview has been edited and condensed.