1 December, 2016

Planner’s Corner: Advice Has Benefits

In the investment world, regulatory changes known as the Client Relationship Model 2 (CRM 2) are occurring. This has led to notices on your investment statements outlining fees and standardized rates of return.

So why work with a Certified Financial Planner® and pay fees for his services? Several studies have been completed in the past 5 years which indicate there

are benefits to receiving and paying for advice:

 

1) Improved net worth – advised households grow their wealth 3.9 times more than non-advised households over 15+ years
2) Increase financial focus – advised households are more likely to have a Financial Plan and advisors help investors better control their emotions with regards to investing
3) Better retirement readiness – advised investors report greater confidence about their retirement outlook and investors who have used an advisor for more than 10 years are more likely to retire ‘comfortably’

 

Jim Hummel, CFP®

 

Sources:
2016 The Centre for Interuniversity Research and Analysis of Organizations in Montreal survey of Canadian households
2012 Investment Funds Institute of Canada Value of Advice Report
2014 The Financial Planning Standards Council survey