Do you put money aside for savings, investing and retirement? Many Canadians do, but we often have funds and accounts scattered here and there – a pension through work, an RRSP or RESP at the bank, and a private life insurance policy. It’s a bit of a mish-mash – we may have many elements of a plan, but not a cohesive one, with one road map and one advisor to guide us along the way.
The Financial Planning Standards Council (FPSC) said that in a recent three-year study of 15,000 Canadians, those with a comprehensive financial plan had a higher level of financial and emotional wellbeing than those without. In its report on the Value of Financial Planning, FPSC said that choosing a qualified financial planner is an important first step toward financial wellbeing, as is knowing your financial goals and understanding associated fee structures.
“Financial planners can help you plan for retirement, find the best way to finance a new home or save for a child’s education,” the report said, pointing to several key questions to ask a planner so as to find a competent, qualified professional you feel comfortable with: what are the planner’s qualifications, experience, services offered and approach to financial planning?
According to Riley Klassen, certified financial advisor and branch manager at Raymond James in downtown St. Albert, statistics show that people who use a financial planner have a dramatically higher level of savings than those who don’t. “Even with fees, there’s more money in your pocket,” said Klassen who, with 15 years of experience, gives clients an unbiased view of all the available options for investing and retirement savings. Independent firms aren’t tied to specific products the way that financial institutions are. “Success depends on a few things: clear communication between advisor and client, and finding a good fit – building a relationship of trust.”
A certified planner can ensure your investments are diversified, Klassen said, and minimize the risks for your money. “It’s not about the next best investment, it’s about finding the investments that won’t destroy your portfolio – about keeping an eye on the long-term financial goals and lifestyle for retirement,” he said, pointing to solid vehicles like RRSPs, RESPs, Tax Free Savings and mutual funds, all of which can be good investments for certain clients at certain times in life.
“Most people start saving in their thirties, and they have some assumptions of what they need to save for retirement, but a financial planner can set up accounts so as to protect against unforeseen events,” Klassen said. “It’s about transparency and clarity for the client – it’s peace of mind.”
