Director, Financial Planning
We’ve all seen the commercials and maybe even read an article that attempts to measure the value of financial advice. Simply put, most people who work with an advisor build more wealth over time. Research shows that this is due to a combination of appropriate investment strategies, better savings habits, and coaching to avoid costly mistakes.
As Money Coaches, we have seen there are also significant intangible benefits to seeking out personalized financial advice and putting it into action.
Results from the Financial Planning Standards Council’s study, The Value of Financial Planning, backs this up. They found that Canadians with comprehensive financial plans, prepared by certified advisors such as CFP® professionals, were more likely to report feeling:
- on track to save and retire,
- able to deal with bumps in the road,
- able to live for today,
- a stronger sense of well-being, and
- higher levels of emotional, financial, and overall contentment.
When you read through the testimonials from our coaches’ clients, you can see the truth in that study’s results. The number of clients who report feeling less stressed, more in control, better able to communicate with their partner and thankful to have a trusted financial professional in their corner is truly heartwarming. We often find it’s these intangible benefits that clients appreciate most, and not just the increase to their net worth.
Canadians are Looking for Personalized, Ongoing and Trusted Relationships
A report from the Brondesbury Group, commissioned by the Investment Funds Institute of Canada, found that Canadians want personalized communication that responds to their specific questions and concerns, in the context of an ongoing, trusted relationship. This research found that two-thirds of Canadian financial services clients saw themselves as part of an ongoing advisory relationship. The FPSC’s research also found that CFP® professionals are more likely to have ongoing relationships with their clients, averaging longer than six years.
At Money Coaches Canada, we have seen the success achieved by working with our clients during our initial engagements, but also on an ongoing basis. Our industry is finally moving away from the recommendation to ‘get a financial plan’ and embracing the benefits that come from ongoing, lifelong relationships with a trusted financial planner.
Consider Jeff and Mira, two busy professionals who approached Money Coaches Canada more than 10 years ago with the (seemingly simple) question of, ‘How can we manage our cash flow to pay our bills, save for the future… and live a little today, too?’ Karin Mizgala, our Co-Founder, CEO, and a CFP® professional, was happy to help by setting up a cash flow plan to meet their short and longer-term goals. Of course, Jeff and Mira’s need for financial planning to meet all of life’s challenges and opportunities didn’t stop there, and neither did their relationship with Karin. Over the past decade, Karin has successfully guided Jeff and Mira through many financial and non-financial decisions, such as:
- What’s the best way to set up our child for future financial success?
- What would we have to change if we were to buy a more expensive home?
- Are we properly insured and how would we handle a disability or health scare?
- What should I think about if I’m considering changing jobs?
- How can we minimize our taxes?
- Are our investments earning an appropriate return and are they in alignment with our goals and personal beliefs?
- How can we prepare both financially and emotionally for retirement?
Karin’s ongoing relationship with Jeff and Mira illustrates how financial planning is a lifelong process. It also shows how much easier it is when you work with a trusted professional who knows your history, your concerns and values, and your hopes for the future.
There are, of course, very tangible benefits to financial planning. Implementing Karin’s advice has saved Jeff and Mira thousands of dollars in reduced interest charges and taxes. Karin also introduced Jeff and Mira to a specialized investment advisor, who, in addition to being highly qualified and a good fit for this couple, was able to offer appropriate investments at a much lower cost than they were previously paying. Assuming a 5% average annual rate of return on their $500,000 portfolio, reducing the fees Jeff and Mira pay from 2% to 1.2% will add an additional $150,000 to the value of their portfolio over 20 years. You can use this free calculator from the BC Securities Commission to see how much you could save.
The Most Valuable Financial Advice Centers Around You
As Canadians continue to deal with inflation on basic expenses, high housing costs, and the need to save more for retirement and our children’s education, the demand for financial planning is also expected to increase.
We know that Canadians, now more than ever, are looking for personalized and ongoing advice from a trusted advisor. At Money Coaches Canada, we thrive on being our clients’ long-term Chief Financial Officer. We get to know you and build a plan to help you live the life you want. Then we’re available when you have questions or to adjust your plan when life takes an unexpected turn. We can introduce you to qualified professionals to help you with the more specialized aspects of financial planning, such as investment management or estate planning, and we’ll keep everyone connected to ensure we’re all working towards the same objective. We see the big picture and seamlessly integrate all aspects of your finances, while always maintaining our focus on what’s most important – personalized, caring, and expert advice to help you reach your goals.
If you have questions regarding how to best manage your cash flow, plan for retirement or improve your overall financial well-being, a Money Coach can help. We work with our clients for as long as the relationship is beneficial – often for life!
