Why Should You Work With 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 do-it-yourself approach, believing that online resources will guide their needs. Some people feel that they are too young, too old, or in too much debt to benefit from working with a financial advisor. However, the truth is that financial advisors 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 and for you to achieve your financial goals.
Most people feel that they are doing all right financially and therefore do not perceive a need to consult a certified financial planner. They go through life earning a living, covering expenses and maybe saving a few dollars each month. Their perception is that they are financially OK. Unfortunately, in most cases, that is an incorrect assessment. There are many potential risks and financial ‘land mines’ that could negatively impact their family’s financial future. Unfortunately, most people live their lives day by day oblivious to the potential dangers ahead.
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.
The ability to save 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.
Canadians who work with financial advisors utilize 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 efficiency.
Beyond investing and saving strategies, to help you achieve your goals, their professional advice may also play a vital role in reducing stress around finances and the future. According to a 2019 study by BlackRock3, 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, which is 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.
Now’s the time to take action and get started. Contact my office to begin the process of getting comfortable with and in control of your financial situation.
Also, visit myfinancialsolutions.ca for additional financial information on insurance, retirement, estate planning, investments and whole host of other financial topics.
P. Eng., CFSB, CFP, CPCA
- 2016. The Gamma Factor and the Value of Financial Advice. https://cirano.qc.ca/files/publications/2016s-35.pdf
- 2019.Canadian Mutual Fund & Exchange Traded Fund Investor Survey. https://www.ific.ca/wp-content/themes/ific-new/util/downloads_new.php?id=23217&lang=en_CA
- 2019. BlackRock Global Investor Pulse. https://www.blackrock.com/corporate/insights/investor-pulse#take-action