In This Issue
- Lifestyle Protection
- Estate Planning
- Retirement Planning
- Tax Efficiency
- Team Leader
The results of a recent poll reported by Fidelity Investments stated that 71% of retirees who worked with a financial advisor have the retirement they were hoping for. Of those retirees who did not use did not use an advisor, only 53% have the retirement they had hoped for. Additionally, 52% of pre-retirees expect to continue working in retirement, and 48% of working retirees do so for financial reasons.
If you are serious about achieving your financial objectives, chances are you need a financial advisor. He/she will help you identify your unique problems and define your goals in specific, measurable terms. Then your advisor will provide detailed recommendations that can help you reach your goals.
Some advisors work for fees only. Since fees can run into thousands of dollars, fee only advisors are usually employed by the more affluent. Some advisors are compensated entirely by commissions earned on the financial products acquired through them. Others use a combination of fees and commissions to provide a more affordable service.
No advisor, no matter how much they are paid or how good they are, will magically solve all your financial problems. The aim is to help you define your goals, establish their order of importance, and show you how to achieve them.
What can a financial advisor do for you? Here are some key benefits:
Lifestyle Protection – We all face the same risks in life that can disrupt our lifestyles,
Estate Planning – Just as you wouldn’t expect your home to be built by someone who didn’t use blue prints, don’t expect your family to take care of your affairs without clear written plans for the event of your death or illness. Your advisor can also work with other professionals who will help you with important estate documents and strategies.
Retirement Planning – After determining your risk tolerance and calculating your retirement income needs, your financial advisor can recommend appropriate savings plans to help you reach your goals. He will also regularly review your plans to make sure you are still on track.
Tax Efficiency – Every Canadian has the right, perhaps even the duty, to pay as little income tax as legally possible. Your advisor can help you arrange your finances in as tax efficient manner as possible, and make recommendations of various alternative methods to pay any income taxes that do become payable as inexpensively as possible.
Team Leader – A proper financial plan can often require the services of several professionals, including lawyers accountants and bankers. Your financial advisor can act as the leader of this team to make sure all the different parts of your overall financial plan get implemented in a timely, cost efficient manner. – M Dumond