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 INVESTING 101 |
Benefits of Professional Advice
Introduction to Investing
Benefits of Professional Advice
The world has become much more complex in the past couple of decades. Technology has been the primary catalyst for much of the change. Investing has been greatly impacted by these changes. Technology has increased the quantity, quality and access to financial information. This makes it tempting for many people to make their own investment decisions. However, for many people, the help of a professional financial planner has become an even more important factor in reaching their future financial goals.
"It's too complicated". "I don't have time". “I don't know where to begin." Sound familiar? As the range of potential investment opportunities grows by leaps and bounds and with governments changing tax rules every time you turn around, the need for long-term financial security in the face of these changes becomes increasingly important.
Turning to a professional Financial Advisor can help you to help find your way through the confusion. In fact, finding the right advisor may be the most important financial decision that you make. The right advisor can be an invaluable partner, providing expert and objective guidance to deal with what can be a complex and emotional subject: your money. He or she can help you develop a personal financial plan tailored to your specific investment profile, objectives, risk tolerance and time horizons.
Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals may include buying a home, saving for your child's wedding or education, and/or planning for retirement. A financial plan provides a term of reference, direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your life. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.
The financial planning process allows you to take a "big picture" approach to where you are financially. It involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals. You always keep in mind your current situation and future plans.
And remember - financial planning does not end with the first meeting or development of the initial financial plan. It should be an ongoing life process. When circumstances change or a life event occurs you need to revise your plan. For example, the birth of a child, an inheritance or a change in marital status will each affect your plan differently.
Sound like a lot of work? It is. Even so, it may be the most important work you do. Most people spend more time planning a holiday than they do planning their finances. Don’t make that mistake. It’s certainly more fun planning how to spend your money in Cancun than to think about which mutual fund to buy for your RRSP. But, we all need to develop a sound financial plan and, in doing so, many people prefer the help of a professional Financial Advisor. Consider this option - because a professional has the time, training and experience to help you. As well, they can provide a more objective point of view (while you plan your holiday).
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