Posted on: February 7, 2022
Are you going to keep your New Years' resolution in 2022? If your resolution is to get a financial plan, let us give you 5 good reasons why it is worth keeping that important promise you've made to yourself.
- Better outcomes. According to the survey undertaken by the Certified Financial Planner Board of Standards, 48% of those with a plan said they were living comfortably whereas only 22% of those without a plan felt the same. And, according to research undertaken by Charles Schwab, 54% of those with a plan felt "very confident" in reaching their financial goals whereas only 18% of those without a plan felt confident of the same.
- Pay less tax. One of the signposts on the "road to hell" reads as follows: 'Next Stop CRA'. Income tax will be the single largest expense you will face in your lifetime. Not managing it is as criminal as evading it. Think of it as a protracted game of chess and you need to play strategically; split income, maximize deductions, invest tax-efficiently. If your RRSP, TFSA, Corporate Investment and Personal Investment portfolios all look the same, then you are not investing tax-efficiently. We always find legitimate ways to pay less tax when developing a plan.
- More wealth. A recent study undertaken by the Investment Funds Institute of Canada determined that investors working with a plan and an advisor, over a period of 15 years or more, accumulated 273% more wealth than those without! That's life changing and given longer life expectancies, more wealth is required to maintain your lifestyle.
- Two heads are better than one. When it comes to reaching your financial goals, this is especially true. If you work with someone who is a CFP, CFA, or certified planner, they can bring a wealth of knowledge and experience to find solutions that make achieving your goals easier. A plan and an advisor can save you from yourself. When you are on your own, it is very difficult to keep your emotions in check and spend the time required to stay on top of your finances. A plan will give you direction and discipline, and an advisor can make sure you're sticking to it.
- Less stress. Between the work you do, managing through a global pandemic, the weather, family issues… you have enough stress in your life already. A plan will help bring your finances and your goals into perspective. Knowledge is power. To quote the Government of Canada website Choosing a financial advisor - Canada.ca:
Managing your investments can be complicated. You may not be comfortable investing on your own. A professional financial advisor or planner can help.
An advisor can create a detailed financial plan, which involves:
- assessing your current situation
- determining your present and future goals and needs
- giving advice on the financial products that are right for you
- reviewing and updating your investments periodically
So, what are you waiting for? Call or email to arrange a no obligation meeting to get you on the road to a more heavenly outcome in 2022.
Let's talk!
