Getting a handle on your personal finances may be a priority in 2011, so where do you start? A good first step is turning to a financial adviser, who can help you to create a plan.
“Like physical fitness, the key to staying financially fit is to work with a good coach who will not only motivate you, but provide you with a customized plan that makes sense for you,” says Carol Bezaire, vice-president of tax and estate planning at Mackenzie Investments. “Financial advisers have the knowledge to provide customized advice that includes the right product choices and investment strategies for each individual.”
Bezaire lists several ways in which financial advisers can help your financial fitness:
Develop a savings plan: A financial adviser can help navigate through a wide array of financial products to arrive at appropriate, tax–efficient solutions that are the best fit with your personal lifestyle.
Promote good savings and investment behaviours: Studies have shown that investors who use advisers have higher savings and make higher contributions. In fact, 80 per cent of Canadians who work with an adviser feel good about their financial health at retirement.
Provide an impartial, informed view: By looking at the investor’s overall circumstances, as well as his or her risk tolerance and future financial needs, advisers can help build wealth through an appropriate asset mix. And, while the adviser obviously cares about your investment performance, he or she may also have enough distance to avoid common investor mistakes. In other words, they may help take the emotions out of investing and help you stick to a strategy. – News Canada
