“Our goal is to have properties all over the world”: Sara Loriot is determined to keep dreaming big

Loriot is the host of “Diverse Dividends,” a video podcast series by CFA Society Toronto that premiered in January. The series features in-depth, candid interviews with senior leaders from diverse sectors and topics, including asset management. Below, she shares her earliest money memory, her money heroes, what got her started in finance, and where she wants to own her next vacation property.

Who are your money heroes?

Being a finance professional, one might assume that I have money heroes, but I don’t. However, there are people who have influenced my view on money. My sister influenced me on becoming astute in finance at a very young age, because she identified early signs in me that made her think I’d be good at it. We had planned to start a business together when we were just kids and my role would have been to manage its finances. It really stuck with me because she really believed that I’d be good at it, and as a result, so did I! It completely influenced my career trajectory. Additionally, when I was 12 or 13, my best friend’s father gave me a book titled The Wealthy Barber by David Chilton. The book had a profound effect on me as I discovered the power of compounding. At the time, I felt like I had made a discovery.

How do you like to spend your free time?

I like to spend my free time with my family, creating memories and watching my one-year-old daughter grow up. It’s funny how, before my husband and I had a child, I do not remember what we did with all of our free time! With our family, the simplest moments such as having a dancing party with our daughter are the best. We also love spending time at our cottage and connecting with nature, trying new recipes and discovering new wines (not with my daughter, of course.)

In addition to creating memories with my family, I like to spend my free time doing things I hope have an impact. I am a very proud volunteer with CFA Society Toronto, the world’s largest professional association of its kind serving the finance and investment industry of Toronto. My engagement with this organization has allowed me to organize events that are relevant to me and on topics that I care about. For example, I’ve organized conferences on the topic of women in finance, and I’m the host of CFA Society Toronto’ new series, “Diverse Dividends,” where I get to interview influential leaders in our industry. Being a part of CFA Society Toronto has been instrumental to my career. I wish I knew I could have become a member before I became a CFA charterholder.

If money were no object, what would you be doing right now?

Do you want to see my vision board? My husband and I have ambitious goals for our future, which has allowed me to reframe how I view money and the place it holds in my life. Money is what will allow me to get to our end goal, which is to spend quality time with our family, without restrictions. Part of our lofty goals is to have properties all over the world and to spend time at each of them as our hearts desire. Gotta dream big, right? So if money was no object, you’d find me, alongside my husband and daughter in our Spanish villa by the water. It feels ambitious, and far away, but the best way to ensure it happens is to start dreaming about it.

What was your earliest memory about money?

I remember being very debt-averse and saving every penny I had. This might have something to do with the fact that my parents were not very good with money, and the impact it had on me. Despite it all, I always had everything I needed. However, I remember promising myself at a very young age that I’d be financially comfortable when I grew up.

What’s the first thing you remember buying with your own money?

Five-year-old Sara received $20 for her birthday and bought a pair of shoes. Older Sara is still the same!

What was your first job?

I was 15 when I got my very first job and I was working in the kitchen of St-Hubert, a chain in Québec.

What did you do with your first paycheque?

I was going on a school trip to Europe and wanted to save extra money. I’m somewhat extroverted and very social and, based on this, the hiring manager had promised me a hostess job on the premise that I had to start in the kitchen. The hostess job never came and my time there did not last very long! My trip to Europe was well worth it, though.

What was the biggest money lesson you learned as an adult?

Having goals. But more than that, having short, medium and long-term goals, and knowing that there are no limits to what your goals can be. As I mentioned, learning about the power of compounding when I was in my early teens had a profound effect on me. When I was completely on my own at the age of 21, and the only person I could rely on financially was me, I started setting goals for what I wanted out of life, which included never being financially restrained. I started saving as much as I could, and when I had enough to invest, started investing and took full advantage of the magic behind the compounding of money. The point being that by setting goals, you know where you’re headed, either because opportunities come to you and you seize them, or you make it happen.

We actually discuss the importance of setting goals in the first episode of the Diverse Dividends video podcast series, where I interview Heather Cooke, CIO of The Audra Group. She emphasized how vital it is to set tangible goals—both in your career and personal life—so you can chart a clear path to wherever you want to go.

What’s the best money advice you’ve ever received?

To invest a small percentage of your income at every paycheque, and to automate it.

What’s the worst money advice you’ve ever received?

At the risk of being unpopular, I think that the people who give the advice that you should exclusively invest all your money in a passive ETF, such as one that follows the S&P500, should be taken with precaution. I don’t disagree that they’re great vehicles and I hold them myself. Diversification is still the only free lunch out there. That said, there are periods in the markets where active management is needed.

Would you rather receive a large sum of money all at once or a smaller amount of money every week or month for life?

Without a doubt a large sum of money at once. Heard of the concept of present value of money? The theory says that a dollar is worth more today than it will be in the future, thanks to inflation. With a bit of financial knowledge, taking a large sum of money now can allow you to invest that money and potentially make more than you would be compared to receiving a smaller amount on a regular basis. Even if I needed a stream of income, I would go for the larger sum at once, invest it and organize a strategy around growing the capital while taking out “return of capital,” which would also be more tax-efficient than receiving a small stream of income on a regular basis. Knowing a little bit can take you very far!

What do you think is the most underrated financial advice, tip or strategy?

To invest a small percentage of your income at every paycheque, and to automate it. You learn to live without that little bit of money, while you build wealth. This is exactly what we are doing for our daughter’s RESP and I look forward to seeing how much she has when she’s 18.

What is the biggest misconception people have about growing money?

That it is risky or that you could lose your money and, at the other end of the spectrum, that high risk equals high reward. Part of financial literacy is reframing how we view risk and the role it plays in growing your money. Investing does involve taking a certain amount of risk, but there’s a spectrum and not all investments are as risky as cryptocurrencies, for example. Part of the exercise is education about the role risk plays in making money, the different types of risk, the power of diversification, and in parallel to that, your own ability and willingness to take risk, your objectives and time horizon (to name a few). For those who don’t know where to start or how to do this exercise, I recommend working with a financial advisor.

Can you share a money regret?

I wouldn’t say it’s a money regret, but my husband and I recently made a big financial decision for which we weren’t financially ready. We were presented with a unique opportunity to buy a cottage. A cottage was something we wanted for our family, but not when the opportunity came along. As they say, be careful what you wish for! After a considerable amount of number crunching and some creative financial planning, we made it work. The result is that we will not be where we’d like to be financially for the next few years. However, having mapped it all out, it’s a compromise we were willing to make in exchange for experiences you just can’t put a price tag on. Some things are invaluable and will bring you a lot of joy. With the right planning, I know things will be better financially very soon. A regret in the short-term, but a life dream in the long-term!

What does the word “value” mean to you?

I define value as being the worth you place on something, and I view it as something that is personal. For example, I might place X value on a stock, but the markets decide otherwise, meaning we value that same stock differently. Similarly, I might view something as being invaluable, meaning that no sum of money could have me trade in that item.

What’s the first major purchase you made as an adult?

I’ve always had a liking for luxury items, such as purses. My first big purchase was a luxury purse, for which I justified the cost because I spent the capital gains from my investments.

What’s your take on debt?

I’m generally debt-averse, because I didn’t grow up in a household that was financially literate. In certain instances, debt can make a lot of sense, such as when buying a house or renovating it. Again, I go back to financial literacy and understanding the role of debt in one’s financial planning. Debt itself can allow you to reach your goals faster, if you know how to use it.

What was your most recent splurge?

My cottage.

What is the last money-related book you read?

I recently finished Ray Dalio’s Principles for Dealing with the Changing World Order. What I liked about the book is that Ray is very opinionated, and he’s not afraid to share his perspectives on things. Though some of what he shares could be taken as being controversial, some of what he shared was quite eye-opening.

What is something you always have in your wallet?

IDs. I mostly tap my phone to pay.

What is your favourite possession?

My engagement ring.

What’s your next money goal?

Buy our next property. Next stop: Montreal, which is where I’m from!

Quick questions

Rent or own?

Own.

Buy or lease?

Buy. Even if using a line of credit (if the rate is cheaper than with a lease), at least you can pay yourself back, at the pace you want and without penalty.

Save or invest?

Depends on your objectives and their horizon, but generally speaking, I’d say invest if for the medium- and long-term, but save if for the short-term.

Budget or not?

100% budget!

More from My MoneySense:

• Justin Dallaire on making the right money decisions for you (not your bank)
• Lisa Hannam on measuring time and money, and more
• “Get to know and minimize the investing fees you pay”: Michael McCullough, MoneySense contributing editor
• “I have the dream job”: Brian Scudamore on making meaning with your money

About MoneySense Editors

MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

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