People often ask, is getting professional financial advice worth the cost? Until recently, this hasn’t always been as easy to answer due to a lack of quantitative proof. However, the evidence is now in: having a financial advisor has been shown to provide real value. There’s a definitively positive relationship between Advisors and their clients’ financial health. From goal setting to risk management to estate planning, Advisors offer a broad range of services, many of which have a quantifiable benefit. More specifically, investors benefit from financial advice in three main ways: their net worth, retirement readiness and disciplined planning.
Increasing Your Assets
Compared to unadvised households, those that use an Advisor amass considerably more wealth over time. This equates to approximately double the amount over four years, and almost four times more after 15 years and above.
In dollar terms, that’s the difference between $250,000 and almost $1 million, or between $1 million and close to $4 million. The longer the client-Advisor relationship, the greater the impact in terms of higher levels of wealth.
If a comfortable retirement is the primary long-term goal of investors, their Advisors are a key partner in getting them there.
Being Retirement Ready
Whether your retirement is just around the corner or decades away, feeling in control of your future contributes to your financial and emotional well-being. It’s more than anecdotal – there’s research to back this up. Investors who work with Advisors report that they’re more confident in their retirement.*
In other words, having an Advisor by your side can be about more than just money. It’s also about peace of mind and being able to enjoy your golden years worry-free. That can be priceless!
Staying On Track
From marriage and children to divorce and illness, life changes over time.
Advisors know how to fine-tune financial plans to meet the changing needs of their clients while sticking to a long-term investment strategy.
Part of the role of an Advisor is empowering investors to make smart, informed decisions about their finances and coaching them through those inevitable bad days when they’re prone to act on emotion rather than think rationally about their money.
As life evolves, your financial situation may be complicated, but fortunately, you’re not alone when you have an Advisor to see you through.
Simply put, working with an Advisor results in higher household savings and better investor behaviour – a winning combination.
As your trusted Advisors, I am here to help you reach your financial goals and provide peace of mind.
Call my office today to create a plan that meets your goals.
*“The value of advice report 2012,” Research conducted by the Center for Interuniversity Research and Analysis on Organizations (CIRANO) on behalf of the Investment Funds Institute of Canada (IFIC).
**“The gamma factor and the value of financial advice,” Claude Montmarquette and Nathalie Viennot-Briot (CIRANO), 2016.