Dealing with personal finances can be an overwhelming task. The financial industry is saturated with different options and products making the right decision challenging and confusing. As a result, many Canadians choose to ignore or avoid looking further into financial and investment options. The truth is, we are often ill-equipped to make the best decisions for our personal situations given the financial options available, and professional help is needed.

Research consistently shows that people who have financial advice are better off financially than those who do not.

The research found that after 15 years, investors accumulated 2.7 times more assets in 2010, 3.9 times in 2014 and 2.3 times in 2018 than comparable non-advised investors. In explaining why advised investors saved more, the researchers identified higher savings rates, a greater allocation of non-cash investments, and disciplined behaviours acquired through financial advice (for example, not selling through market downturns).¹

Getting professional help is important and finding the right professional can be daunting. The questions below are some of the things that should be considered when finding a financial professional.

Who is the advisor affiliated with?

• Are they independent or employed or tied to a certain company?
• If they are employed by a specific company, are they limited to providing only certain products?

Ideally, your advisor is independent or at least has access to product solutions that are not only with their company.

What professional training and experience do they have?

• Do they have professional certifications?
• How long have they been in the industry?

What services do they provide?

Just because the title says Financial Advisor doesn’t mean the financial industry services are the same. Many advisors focus more on investments as investments are what pays them to do the work.

What do you need help with? At Connect Wealth we say: everything begins with a plan. Without a financial plan, how do you know if you are going in the right direction? These three building blocks are the foundation of a good financial plan:

• Financial Planning
• Investment solutions
• Insurance solutions

What is their investment philosophy?

• Do you understand it?
• What has their past performance success been?

Do they provide a financial plan?

• Is there a clear road map of where you are and where you would like to go?
• Do you feel confident in their ability to help you reach your goals?

Will they build a risk management plan to protect your wealth?

We hope life will go a certain way but all too often life takes unfortunate turns. Will your world be stable even if life goes sideways…death, disability, sickness?

Were you referred?

• Do you know someone already working with the financial professional?
• What was their experience?
• Would they recommend them?

How does the advisor earn their fees?

Fees are inevitable and are often not readily apparent to the client. An open discussion on what this percentage will translate to on a monthly or annual basis will allow you to realistically compare services provided for fees paid.

• What services are you receiving for your fees?
• Are the fees reasonable compared to other advisors you considered?

How accessible is your advisor?

• What will your relationship be with your advisor?
• Do you have direct contact with them or is the relationship with the institution and a different advisor tending to your needs every time you visit?

These questions are just a few key things to consider when you decide to seek help with your finances. An advisor that is doing the right things for you will make you feel at ease, bring clarity to an ever-changing financial landscape, and fundamentally change your financial future through the execution of a well-thought-out plan.

References

¹Financial Advice in Canada Whitepaper, November 2022, Page 6

Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting-edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.com