Expert emphasizes importance of choosing an advisor with trustworthy expertise
A report published by IG Wealth Management (IG) in advance of Financial Literacy Month has reaffirmed the value financial planning can provide to everyday Canadians.
The study found that Canadians' personal financial situations make them feel apprehensive, but those who work with a financial advisor are far more likely to feel safe and "financially healthy" as they navigate the present market environment.
The study, which was carried out with Pollara Strategic Insights, revealed 69% of Canadians said that because of the current economic climate, they do not feel financially secure. Similarly, 44% of people believe they are making ends meet financially, but could be doing better.
Read more: Most Canadian retail bank customers seek advice for failing financial health
Another 44% of respondents feel they are not managing their money as effectively as they should be. And while a third of Canadians (31%) who do not consult a financial expert are concerned about their finances, this percentage falls to just 16% among those who do work with one.
"It's understandable that so many Canadians are feeling insecure about their personal finances given everything they're seeing out there, whether it be market volatility, inflation or rising interest rates," said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management.
According to Cauwenberghe, it is crucial for Canadians to consult with a financial advisor who has the knowledge and experience to analyze every element of their financial lives and make sure they have a comprehensive financial plan so they can make better decisions and feel more secure.
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Cauwenberghe also emphasized the significance of understanding that while many financial institutions may have staff members who can complete transactions, not all may be able to offer the full extent of required financial planning services, including the capacity to provide thorough advice.
"When you're choosing a financial advisor, verify their credentials to ensure that they have expertise in financial planning. You should also make sure that they take the time to get to know your personal situation and identify your individual objectives before immediately recommending specific products.”
Read more: Focus on client's financial goals not products, says advisor
She added, “Some advisors are only capable of providing investment advice and will start suggesting specific investment solutions before they've asked you many questions – that's a flashing red light that they are more concerned about selling a product than creating a plan that meets your needs".
According to the research, 25% of Canadians seek complete financial guidance from retail bank representatives.
And while 46% of Canadians expect their banking institution to provide counsel on their financial health, only 29% of Canadians report actually getting it.
