Alison Cannell, a financial advisor with Cannell Wealth Management Inc. in Cambridge, Ontario believes there is no better time than the New Year to take control of your financial future.
Alison is committed to empowering young adults, especially women, to lay the groundwork for building financial independence and beginning to create generational wealth. A millennial herself, Alison is uniquely positioned to understand her clients’ concerns. She says, “We’re a generation that has faced a housing crisis, student debt, and economic uncertainty, but we’re also resourceful and forward-thinking.”
Achieving financial goals
One of Alison’s strengths is simplifying the complexities of finance.
She says, “For many of my clients, saving for a home, a child’s education, or looking down the road to retirement can feel like daunting financial goals, but I help guide them through smart planning and the strategic use of various account types to assist in building a strong financial foundation.”
Tax Free Savings Account (TFSA) is a great account, depending on clients’ needs. Many investors are under the misunderstanding that this account is only meant to act as a savings account. But it is also a great option for investments, since any growth and income can be withdrawn tax-free for eligible Canadians. As of 2025, the lifetime contribution limit for this account is $102,000 (2025 annual limit is $7,000) depending on the year the client was born. Alison says, “It’s a wonderful option for investments. Some goals my clients have for this account type are to assist in purchasing their first home, saving for retirement, or even saving for their children’s wedding.”
First Home Savings Account (FHSA) is a dream for first-time homebuyers. This account has a lifetime contribution limit of $40,000 per person, however, contribution room does not begin accumulating until the account is open (You have 15 years to use this account, otherwise, it can be rolled into an RRSP/RRIF tax free without taking contribution room). Contributions are tax deductible, similar to RRSPs. As long as the funds are withdrawn for a qualifying first-time home purchase, like a TFSA, they are tax free. Alison says, “When building wealth as a millennial, many want to save for their first home, and they’re very interested in the FHSA.”
Registered Education Savings Plan (RESP) helps parents save for their child’s education. The real benefit is in government contributions like the Canada Education Savings Grant (CESG), which matches 20% of contributions annually up to $500 per child. Alison says young couples who are starting a family may not be aware of the RESP and its benefits.”
Registered Retirement Savings Plan (RRSP) is a ticket to help plan for a comfortable retirement. Contributions are tax deductible, and your investments grow tax deferred until withdrawal. If you’re a first-time homebuyer or heading back to school, you can even dip into it temporarily without penalties under specific programs. As we approach the tax filing deadline, individuals can take advantage of RRSP contributions. Alison says, “Clients may be aware of TFSAs and RRSPs, but they don’t always understand the complete benefits of each account type. The earlier you start the more time your money and investments have the potential to grow. Time is one of the biggest advantages an investor may have.”
The magic of compounding
Compounding interest is like planting a money tree. Your initial deposit grows as it earns interest, and then that interest earns interest. The graphic illustrates how over time, this snowball effect turns small contributions into big savings.
For example, as the graph attached demonstrates, an investor, starting at age 25 who sets aside $5,000 a year for 10 years and then stops investing, and assuming an 8% annual rate of return, will have nearly $800,000 by the age of 65.
However, an investor starting at age 35 who sets aside $5,000 a year for 30 years until the age of 65 will have about $612,000, also assuming an 8% annual rate of return.
In the first case, the early start allows the investor’s money to grow over four decades, with compounding doing the heavy lifting. Despite contributing three times as much, the investor who started 10 years later doesn’t have the same runway for growth. Alison says, “People don’t realize the difference that investing over the long-term can make. Time is one of the best assets. It’s a compelling case for starting early and letting time and compounding grow even modest savings into a retirement dream.”
Education is confidence
Alison Cannell enjoys educating clients, especially women, on investments, markets, and the economy, and how to make smart decisions about their financial futures. She says, “Most clients who transfer their portfolio to my management at Cannell Wealth are not always aware of what they’re invested in, and my goal is to change that. Building financial confidence is as important as building wealth.”
Among the most common questions Cannell is asked is regarding mutual funds and dollar cost averaging. She says, “I deal with mutual funds and explain what they are and their many benefits. I provide fund options and review these with my clients. It’s their money and I believe they should be fully part of the decision. I always want to walk them through the various allocations of the funds, historical returns, and how they stack up to their peer group, and we then agree on the investment fund(s) together. Many of my clients have an average income as well as net worth, and one of the great benefits of mutual funds is you can get great diversification with a smaller amount to invest. I also explain the many benefits of dollar-cost averaging as a more manageable way to hit their contribution goals.” No moves are made without a client’s approval.
Alison adds, “I thoroughly explain everything, ensuring clients understand, and are comfortable with it. I never want a client leaving a meeting being unsure of what we’re doing or what we discussed.”
The benefits of a trusted advisor
Many do-it-yourself investors make decisions based on emotions or incomplete information, leading to costly mistakes. Alison says, “The number one thing I’ve been told by clients who’ve tried to invest on their own is that they lost money. They tried to diversify and create their own portfolio, and they have all lost money.”
A financial advisor like Alison Cannell can not only guide, but help with an investor’s success, educating, sidestepping mistakes, and keeping goals on track.
Think of an advisor as a financial quarterback. They’ll call plays such as budgeting, saving, and investing, while spotting risks and adjusting strategies, while the client advances their life goals. Alison says, “A financial advisor provides professional insights into savings vehicles, mutual funds, and other investment options tailored to the clients’ goals. I help them stay on track to ensure their plans are not derailed.”
Alison assesses a client’s overall financial health and then develops a plan tailored to each individual. She says, “What makes me different is that I focus on the younger generation and women who are looking to build wealth. I guide clients toward setting financial goals without overwhelming them.”
Independent financial advisors like Alison Cannell are held to the same rigorous standards as the large financial institutions. But they have the added advantage of offering personalized, unbiased advice and all funds invested are safe and secure.
Start sooner than later
Starting to invest while you’re young is like giving yourself a head start in a race; it’s easier to win when you’ve got more time on your side. The earlier you start, the longer your money has the potential to grow, turning small contributions into something substantial.
Investing early with expert advice means you’re setting yourself up to secure your future with long-term financial success.
Contact Alison Cannell at (647) 963-6106, via email at [email protected] or visit her online here.
Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc. The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was prepared by Alison Cannell who is an Investment Funds Advisor at Cannell Wealth Management Inc. a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.
