Perspectives...
While we certainly appreciate clients who take an active interest in their personal finances, often their perspective is clouded by a 30 minute business news show, or worse, "water-cooler advice"...
· Only about 6% of Canadian Investors meet the criteria required to be successful at being their own financial advisor (1.1)
· “The positive effect of advice on wealth accumulation cannot be explained by asset performance alone; the greater savings discipline acquired through advice plays an important role.” (1.2)
(1.1)https://www.ific.ca/
Paying for Advice: Why Options are Important
Montmarquette et al, CIRANO (July 2012)
(1.2)https://www.ific.ca/
New Evidence on the Value of Financial Advice by Jon Cockerline, Ph.D.
Advocate...
Surprisingly, we often find new clients in investments that don't match the conversation, or ones that force them into paying taxes unnecessarily. We really feel the tax side is a major factor in proper financial planning and is frequently overlooked...
· “Financial Advisors add value in a number of ways: by recommending asset mixes that are right for the needs of their clients; by advising on vehicles for optimization and tax efficiency; and by encouraging savings through programs and planning targets.” (1.2)
(1.2)https://www.ific.ca/
New Evidence on the Value of Financial Advice by Jon Cockerline, Ph.D.
Better Together...
Some of our best client relationships are ones where we not only have an annual income tax meeting, but also an RRSP meeting and a fall review. We can't help but feel that the more often we meet, the better the outcomes...
· “Average net worth for advised investors is nearly three to four times greater than that of non-advised investors.” (1.2)
o Advised Household vs. Non-Advised Household (1.2)
- 4-6 years with advisor = 1.58x more assets
- 7-14 years with advisor = 1.99x more assets
- 15+ years with advisor = 2.73x more assets
(1.2)https://www.ific.ca/
New Evidence on the Value of Financial Advice by Jon Cockerline, Ph.D.
Discipline...
Our process helps our clients develop the discipline required to achieve their financial goals, whether through proper tax planning, investment selection, or recognition of estate planning issues...
· “Almost 9/10 mutual fund investors invest with an advisor and they benefit significantly from the disciplined savings behavior that they acquire through these relationships.” (1.3.1)
· “Advice allows investors a better chance of: accumulating greater wealth through better savings behavior; building towards a more comfortable retirement; selecting tax-efficient investment vehicles; maintaining a long-term investment strategy; protecting against poor financial decisions; and avoiding emotional investing habits.” (1.4)
(1.3.1)https://www.ific.ca/
Paying for Advice: Why Options are Important - Montmarquette, Claude and N. Viennot-Briot, “Econometric Models on the Value of Advice of a Financial Advisor”, CIRANO (July 2012).
(1.4)https://www.ific.ca/
The Value of Advice Report 2012