Investing 101

How important is financial advice?

According to a study by Statistics Canada, people who receive financial advice feel more confident that their retirement savings will help maintain their standard of living in retirement. Of the 5.7 million near-retirees (ages 45-59), 71% received financial advice from at least one source while the remaining 29% received no advice at all.

Other factors also come into play: income, pension coverage and registered retirement savings plan assets. However, the relationship between feeling confident and receiving financial advice remains even when the other factors are taken into account.

Many people might believe that getting financial advice is about beating the markets. It’s not. It’s about giving you the confidence to pursue your long-term goals. An advisor can help you choose appropriate investments, identify opportunities and help you avoid costly mistakes that could derail your financial plans.

Where is the value of advice?

Think of your advisor as your financial coach. Your coach can see your financial situation from the outside and provide an objective view. A coach encourages you, keeps you focused on your long-term goals and reports on your progress as you pass various milestones.

The value of financial intangibles

Perhaps the single greatest benefit to using a financial advisor is the impartial advice that one can provide. An advisor keeps the focus on risk and reward and encourages more successful investing behaviour.

The value of time

Few people in their working years have the time that’s required to do a good job of managing their finances. A financial advisor encourages you to take some time to review your overall financial picture and provides efficient systems that make it easy for you to save and invest.

The value of consolidating information

Over the past decade, the Internet has emerged as the unparalleled source of information. The problem is, it still takes a great deal of work to separate useful financial information from the not-so-useful. An advisor can consolidate massive amounts of financial information to help you stick to your long-term plans.

To learn more about the value of advice, how to get started, choosing and working with your financial advisor, check out www.mackenziefinancial.com/advicematters.