Value of Advice
Studies and research continues to show that Canadians that work closely with a financial planner are saving more, living better, and experiencing higher levels of overall happiness in their lives. The Value of Financial Planning, a three-year longitudinal study which included close to 15,000 Canadians, was commissioned by FPSC® and the Financial Planning Foundation.
The study revealed that regardless of net worth, Canadians who engage in comprehensive financial planning report significantly higher levels of financial and emotional well-being than those who do no planning or only limited planning. Those with comprehensive plans felt more on track with their financial goals and retirement plans, felt they had improved their ability to save in the past five years, felt more confident that they could deal with financial challenges in life and felt better able to indulge in their discretionary spending goals.
Most busy professionals and business owners simply do not have the time, knowledge or resources to make fully informed financial and insurance planning decisions for their future. Consider the following facts when deciding if you should work with a financial planner to help you create an integrated financial plan and ensure that you are doing everything possible to maximize your wealth, minimize your taxes and make smart financial planning decisions for your future:
- Average net worth of advised investors is nearly three times greater than that of non-advised investors.[IFIC, The value of advice: report, 2011]
- The investable assets of advised investors were found to be four times greater than those of non-advised investors. [IFIC, The value of advice: report, 2011]
- Households using advisors had an annual savings rate of 8.6 per cent, compared to only 4.3 percent for non-advised households – save at twice the rate. [IFIC, New evidence on the value of financial advice, 2012]
- When asked, 61 per cent of advised investors strongly agreed that their advisor had a positive impact on the value of their investments, their net worth and their investment returns. [IFIC, The value of advice: report, 2011]
- Families who receive financial advice have 4.2 times the median assets of non-advised families. [IFIC, New evidence on the value of financial advice, 2012]
- Individuals using an advisor for their financial planning had more than twice the retirement savings of those who did their own planning, and more than four times the savings of those who did not have a financial plan. [IFIC, The value of advice: report, 2011]
- 81 per cent of those with comprehensive financial plans report feeling on track with their financial affairs compared to only 44 per cent without a plan. [FPSC, Value of financial planning, 2012]
- 62 per cent of households with 30-49 year olds who receive advice say they regularly save for retirement, compared to just 33 per cent of non-advised households. [FPSC, Value of financial planning, 2012]