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Whether you’re saving for retirement, a new home or your dream vacation, it pays to have an expert in your corner
Ask successful people about their accomplishments and many will tell you the same thing: they didn’t do it alone. It’s important to have a team to support you, and when it comes to your money one of your best teammates is a financial advisor. Whether you’re saving for retirement, a new home, your children’s education, or a dream vacation, having an advisor on your side can help you cross the finish line.
Just like a personal trainer can help you get into physical shape; an advisor can help you strengthen your financial well-being. Research has shown that in just four to six years, investors who work with an advisor have nearly double the assets of similar investors who don’t. And the longer you work with an advisor, the more you can gain, according to findings from The Investment Funds Institute of Canada.
Advice enhances asset growth over time
The longer investors get financial advice, the more their investments grow:
- 1.7 times the wealth after four to six years.
- 2.9 times the wealth after seven to 15 years.
- 3.9 times the wealth after 15 or more years.
Here’s how an advisor can help you make the most of your money:
Your own personal money map
In order to know if you’re heading in the right direction, you need to know where you’re standing right now. An advisor will consider your income, your monthly expenses, your savings and any debt to give you an aerial view of your personal finances with an arrow that says, ‘You are here.’
“Having a clear view of the landscape can help you see what’s possible. Suddenly, it’s a lot easier to have a conversation about where you want to go,” says Carissa Lucreziano, vice-president of financial and investment advice at CIBC.
Once you’ve got a map, an advisor can help you find the most efficient route to reach your destination and navigate any forks in the road.
A money coach to keep you on track
The same way a walking buddy can help you stay active; an advisor can help you keep moving toward your goals. You can meet with them on an annual basis or as often as you’d like. Having that structure means that even when life gets busy, you’ve got someone else working with you to make sure your finances get the attention they need.
Are you thinking about having a baby, renovating your kitchen, or changing careers? An advisor can help you adjust your plan so that you can enjoy the process while still working toward your long-term goals. While the past couple of years have shown us there are some events you can’t fully plan for, an advisor can help you find ways to build an emergency fund. That way you’ve got shock absorbers for potential bumps in the road like loss of income, urgent home repairs, or medical bills.
From time to time, you might read a headline about the stock market that makes your stomach tighten. An advisor is your go-to person to help you understand what it all means, specifically for you and your plans. Cool heads tend to prevail, and an advisor can help you sidestep a knee-jerk reaction that could cost you in the long run.
The more you know, the further you can go
Eighty per cent of investors say they have better saving and investment habits because of their advisor, according to a study by the Canadian research organization Cirano. Saving and investing are the backbone of building wealth, so every bit of know-how can help you make your money work harder for you.
Making the most of your money is also about making choices. Let’s say you have a work bonus you want to invest. Do you put your money in a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP)? What assortment of stocks, bonds or mutual funds do you buy?
“An advisor can help you understand the ins and outs of all your options so that you can make a confident decision,” Lucreziano says.
Because advisors have a full picture of your finances and know what you want to achieve, they can help you understand what options are available to help you reach big goals like buying a home or a car. Whether you’re looking at a mortgage, loan, lines of credit, or credit cards, an advisor can help you determine what you can truly afford based on interest rates, your cashflow, and all your financial commitments. That way you can avoid overextending yourself and stay on track to meet your objectives.
Ready to get started?
An advisor can help clarify all of your financial questions, from managing your day-to-day cashflow to saving for retirement. Even if you’re not quite sure what your goals are yet, they’ll work with you to explore all the possibilities. Take the first step and book a meeting today.
Visit the CIBC SMART ADVICE™ hub for financial advice for all life’s moments.
Advertising feature produced by CIBC. The Globe’s editorial department was not involved.