Canadians who have engaged in comprehensive, integrated financial planning are significantly more optimistic about their personal wellbeing as compared with those who have not.
Individuals with comprehensive, integrated plans feel better prepared to deal with financial emergencies and manage through difficult economic times, and are more confident about reaching a wide spectrum of life goals.
Furthermore, there is measureable proof that those who have engaged advisors for only piece-meal, “as needed” financial advice are being left behind by Canadians engaged in comprehensive, integrated planning.
These are just some of the findings of the Value of Financial Planning study, which was conducted by The Strategic Counsel and commissioned by Financial Planning Standards Council (FPSC) during one of the most difficult economic periods in Canada’s recent history (between August 7, 2009 and January 21, 2010).
The study defined ‘comprehensive, integrated financial planning’ as that in which one’s main financial advisor has provided financial planning for major life goals and events, or at least three of the following planning components: household budgeting, tax, retirement, estate planning, investing, debt or risk management.
“Never before has there been such concrete, empirical evidence confirming the value proposition of comprehensive, integrated financial planning, and its impact on people’s confidence in achieving life goals and managing through difficult times,” says Cary List, President & CEO of FPSC.
Achieving Key
Life Goals:
“Financial planning is about putting financial strategies in place to help you manage your finances to achieve a wide spectrum of life goals in both the near and long term.
“Undertaking ad hoc, or limited financial advice, while clearly better than nothing, just doesn’t have the same impact as taking a comprehensive view of how to best manage one’s finances to meet your life goals. And those who are doing no planning at all are being left far behind,” says List.
The research also revealed that 61 per cent of individuals who engaged in comprehensive, integrated financial planning felt confident that they will be satisfied with their financial situation in retirement, as compared with 27 per cent with no financial planning and 46 per cent who had engaged in only limited advice.
“The research proves that those engaged in comprehensive, integrated planning have a far more positive outlook regarding their financial affairs, especially with regards to their longer-term financial well-being,” adds List.
Jim Grant, CFP (Certified Financial Planner) is a Financial Advisor with Raymond James Ltd (RJL).
This article is for information only. Securities are offered through Raymond James Ltd., member CIPF. Insurance and estate planning offered through Raymond James Financial Planning Ltd., not member CIPF.
For more information feel free to call Jim at (250) 594-1100, or e-mail jim.grant@raymondjames.ca. and/or visit www.jimgrant.ca.
