When should I reach out to a financial advisor?

Melany Goodhue -

It's never too early

I have financial planning clients who are less than a month old.  That’s right, their parents hold their investment “In Trust”, but these investments are theirs to do with that they please when they turn 18.  What’s the benefit?  The miracle of compound interest – the earlier you start, the more you have – significantly.

Here's a quick analysis

A 20 year old would have to save $361.04/month at a 6% rate of return to have a million dollars at retirement.  By waiting only FIVE years, a 25 year old would have to save 38% more every month!  A 35 year old has to save 1.75X the amount a 20 year old would, and a 45 year old would have to save FIVE TIMES the amount a 20 year old would have to.

What’s the message here?  Don’t delay, start today.  No really though - Be AN ADVOCATE for the young people on your life.  They may not thank you now but you can bet on it they will be one day!

“I’m worried I’ll be judged by how much I DON’T know”

According to Stats Canada, only 8.7% of men and 5.5% of women describe themselves as ‘very knowledgeable’ when it comes to financial matters.  In other words, you and everybody else, my friend!  Your financial advisor is not expecting you to be an expert in financial management, and they are there to teach you everything you need to know.  This will help you gain confidence and feel in control of your money-making decisions.

“I’m embarrassed at how little I’ve saved”  

Broadbent Institute says HALF of Canadians aged 55-64 who don’t have a pension have less than $3,000 saved for retirement.  About 47% of Canadians have an average of $21,000 in retirement savings.  This speaks to the financial planning crisis in Canada.  If you are part of this statistic, know that you are not alone, and your financial advisor will expect this.  You have to start somewhere, and the earlier the better.

People who work with a financial advisor have a greater net worth than those who don't

Did you know that IFIC’s research showed that Canadians who work with an advisor have on average 4X more investible assets and 3X greater net worth than those who do not?  That’s the difference between $500,000 in retirement and over 2 MILLION dollars.  And why do you think that is?

Clients receive direction, motivation and accountability

At the 1 year review when my clients are on a high with how quickly their wealth has grown, I ask my clients this question.  Overwhelmingly, their response was that they receive direction, motivation, accountability and professional money management.  Things they just couldn't achieve on their own.  How do we accomplish this together?  Various activities, here are just a few:

  • goal setting
  • cash flow management
  • a comprehensive evaluation of their current and future financial state
  • a step-by-step plan on how to accomplish their goals

We follow our 5-step planning process called PULSE to make sure no stone is left unturned.

  • P – Preparation.  Intake, Goal-Setting & Fact-Finding
  • U – Uncover.  Budgets, Net Worth Analysis & Projections
  • L – Lifelong Plan.  Customized Step-By-Step Recommendations.
  • S – Start Now.   Implement Your Plan.
  • E – Evolve – Monitor, Review & Expand Your Plan

Has the idea of financial planning for your future crossed your mind? If not, did you just realize that you haven’t?