How investors benefit from the value of financial advice
We are living in a time of significant change in financial markets and economies around the world. However, no matter who sits in the Oval Office, where the current unemployment rate in Europe stands or what China’s gross domestic product will do, one thing has stayed true throughout – a strong advisor-client relationship helps investors navigate the constantly changing landscape and may lead to greater wealth and stability.
Advice helps investors increase their wealth and be more confident
While some may believe that the value of advice is not quantifiable, it’s quite the opposite. The value that advisors bring is measurable, and the data shows that professional advice has a positive and significant impact on the growth of an investor’s wealth.
The Investment Funds Institute of Canada (“IFIC”) found that after receiving advice for 15+ years, investors have 2.73x more financial assets than those who did not receive advice.1 That goes a long way to providing not only financial but also emotional stability through the years.
IFIC’s report also found that investors who receive advice are more likely to have established long-term financial goals and are more confident in achieving a comfortable retirement.2
Financial planning is more than managing money
One way that financial advisors help investors is by creating a robust plan that is unique to your (and your family’s) situation, helping you stay on track during times of market volatility and expertly updating your plan to make sure that it evolves along with your life.
That sort of guidance protects investors from making decisions, such as chasing returns or reacting emotionally to market volatility, which could hinder their long-term financial health. A key fact about financial plans, therefore, is that they are just as much about managing behaviour as they are about managing investments.
Why a plan is so important
If your primary investing goal is to save for a comfortable retirement, you’ll want to know what income you’ll need. Some investors strive to generate a retirement income that is 50% of their working income. Others aim for 70% or more.
In the end, the right income level and the right plan will always come down to you and what you are comfortable with. Together, we can find what works for you and create the plan to help you achieve your goals.
Call our office today and let’s talk about your financial plan.
1 IFIC, Value of Advice Report 2012
2 IFIC, Value of Advice Report 2012