Why You Should Choose A Financial Advisor
There are common misconceptions about the value of working with a financial advisor. Some believe you have to be rich to be worthy of financial advice. Others take a DIY (Do It Yourself ) approach, believing that online resources will guide their needs. Some people feel that they are too young, too old, or too much in debt to benefit from working with a financial advisor. However, the truth is that financial advisors are not just for the rich, and they can play an essential role at any stage of your financial journey. Research supports the idea that a financial advisor can be an invaluable resource, a guide who will work with you to achieve your financial goals.
Here are some strategies that could help put you in the driver’s seat of your financial life, post-holidays and beyond.
Investment Strategies
Canadians who work with an advisor on their investment strategies enjoy almost four times the assets of investors who don’t (over a 15 year period), according to a 2016 report by Cirano1. The same report debunks the myth that advisors only work with the wealthy. According to Cirano’s study, the majority of Canadian investors had investable assets of less than $25,000 when they first started working with a financial advisor. Also, be aware that many financial institutions (i.e., banks) charge fixed fees even if they don’t make you money. “Buyer Beware.”
Savings Strategies
The ability to put away savings regularly is fundamental to reaching your long and short-term financial goals. 80% of those who work with a financial advisor say that this relationship empowers them to develop skills and strategies that help them achieve better long-term savings habits2. Remember, investing is a marathon, not a sprint. Returns from investing in good quality mutual funds, over time, far outperforms CICs, etc.
Tax Efficiency
Canadians who work with financial advisors take advantage of tax-sheltered registered accounts at about twice the rate of non-advised Canadians. Working with financial advisors also increases access to a wide range of solutions and strategies designed for tax efficiency3.
Increased Well-Being
Your financial advisor is your financial partner. Beyond investing and saving strategies, to help you achieve your goals, their professional advice may also help to reduce your stress around finances and the future. In the 2019 study by BlackRock4, 76% of those who work with a financial advisor report having an increased sense of well-being.
Managing investments and making consistently sound financial decisions takes skill and commitment. It is also not a one-time thing. Researching, executing, and monitoring financial decisions drains your most precious commodity, i.e., your time. A financial advisor has the skills, time, and expertise to support you through a lifetime of complex and changing financial needs, such as education, retirement and tax planning, insurance solutions, intergenerational and estate planning. Finding the right advisor may be the most significant step you can take towards feeling good about your finances now and in the future.
It’s the time to take action & get started.
Call for an appointment to see how I can help you with your financial planning, regardless of your age. I work at turning your future dreams into reality!
Also, visit myfinancialsolutions.ca for additional financial information on insurance, retirement, estate planning, investments and whole host of other financial topics.
Robert Hughes,
P. Eng., CFSB, CFP, CPCA
myfinancialsolutions.ca
1. 2016. The Gamma Factor and the Value of Financial Advice.
2. 2019. 2. Canadian Mutual Fund & Exchange Traded Fund Investor Survey.
3. 2012. 3. New Evidence on the Value of Financial Advice.
4. 2019. BlackRock Global Investor Pulse.
