The value of a financial advisor

Helping you build your worth

Research shows that households with a financial advisor have significantly more investable assets than those without. It’s a relationship that can make all the difference in helping you achieve greater financial wellness.

Working with a financial advisor can help you build greater confidence and commitment towards achieving your goals. What are some of the positive outcomes people with a financial advisor can expect? Here are a few examples.

More wealth over time

The Investment Funds Institute of Canada reports that, on average, investors who work with a financial advisor have nearly three times the net worth and four times the investable assets of those who do not. This holds true across all age groups and income levels. When asked, the majority of advised investors strongly agreed that their advisor had a positive impact on the value of their investments and their investment returns.

Learn winning habits

Advised households are twice as likely to save regularly for retirement as those who don’t seek out expert advice. By setting savings targets and having a systematic approach to building wealth as part of a broad financial plan, those working with an advisor are less likely to fall prey to risks like trying to time the market or making emotional investment decisions.

Greater confidence and comfort

Once an advised client puts their financial plan into action, evidence suggests positive results follow.

In its Value of Financial Planning study, the Financial Planning Standards Council found those who had a comprehensive, integrated financial plan that included strategies for household budgeting, tax, retirement, estate planning, investing, debt, and risk management felt the most comfortable about their finances and were confident in achieving their life goals.

Source: FPSC Value of Financial Planning

Even when times get tough – such as the global financial crisis of 2008 or the coronavirus pandemic in 2020 – those with an advisor feel more assured than those without. An Ipsos survey from the 2008 crisis reported 38% of advised investors believed their financial plan would see them through the turmoil; only 27% of the non-advised group felt that way.

91% of BlueShore clients give their overall experience in dealing with their Financial Advisor a top rating.

Ipsos, 2023

Finding the right formula

Advisors focus on creating an asset mix to match their clients’ objectives and risk tolerance. On balance, advised investors have portfolios that are more growth-oriented and tax-efficient, producing greater wealth over the long term. Non-advised investors, on the other hand, tend to favour lower-yielding cash investments and term deposits, and are only half as likely to take advantage of tax-saving registered plans like TFSAs, RRSPs, or RRIFs.

Spelling out who’s qualified

Canada’s financial services industry is highly regulated, but there’s surprisingly little to prevent someone from calling themselves a financial advisor. Fortunately, there are professional standards to give you confidence the person you’re dealing with has the education, experience, expertise, and ethics to help you achieve your financial goals.

One of the most widely respected is Certified Financial Planner, the leading designation for financial planners around the world. The CFP certification provides assurance that the advisor you are working with has the professional training and knowledge required to guide you on your financial journey. To obtain the designation, certified advisors must complete a rigorous education program, pass a national exam, and demonstrate three years of qualifying work experience – as well as committing to continual education throughout their careers.

How an advisor adds value

While working with an advisor improves the likelihood you’ll reach your financial goals, it won’t happen by accident. Success starts by partnering with your advisor to create an integrated plan that brings together all of the different parts of your financial life – from investing and managing debt, to retirement planning and insuring against risk.

A financial plan shouldn’t be a one-time, one-size-fits-all solution. An effective plan will be customized to your unique and specific needs and will adapt as those needs change.

An advisor can get you on a successful path and keep you there by delivering specialized knowledge, experience, and expertise backed by academic credentials and professional training. They’ll bring in specialists for greater expertise when required – insurance† or legal help, for example.

What if you have trouble getting started? A financial advisor will help you set your goals and articulate your priorities.

One mistake people make all too often is to equate financial planning with investing. A financial advisor takes a holistic view of your situation. This ensures fundamental areas like tax planning, risk management, and estate considerations aren’t ignored. When markets and the economy get rocky, they can offer perspective and help you make any necessary adjustments.

Getting the most out of your partnership

Teaming up with a financial advisor can be a smart decision. But like in any relationship, success takes commitment from both sides. What can you do to help make your partnership with your advisor a more valuable one? Here are four tips.

1. Be open and honest

Effective communication is the core of any solid relationship. Your advisor will have difficulty helping you if you hold back important information or leave out key details. Be clear about your financial situation, what you want achieve, and your attitudes toward risk. And have an in-depth financial discussion with your spouse or partner early on. You might find their tolerance for risk is much different than yours – that can have a big effect on your plan and its performance.

2. Keep your advisor in the loop

Your financial plan has to evolve with your circumstances. Keep your advisor updated on major life changes like marriage, divorce, birth of a child, or pending retirement. Any significant event should trigger a review.

3. Have reasonable expectations

You should expect your advisor to make specific recommendations, explain those recommendations, and identify the risks involved. What they can’t do is say with certainty what financial markets or interest rates will do, or how a recommendation will turn out. But it helps to be realistic. The days of finding a risk-free return of 6% are no more. Your hopes should reflect this reality.

4. Take initiative

Playing an active role in your finances will help you get more out of your advisor relationship. Review your account statements. Read information your advisor offers on an investment you’re considering – even do a little research on your own.

Never hesitate to ask questions about how a recommendation fits in your plan. When you meet, be prepared to have important files on hand (e.g. tax returns, statements, etc.). And of course, take lots of notes and document what you and your advisor have agreed to.

Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. The advisors and specialists at BlueShore Financial offer a powerful combination of experience, knowledge, and commitment to client service, integrating a wide range of strategies to ensure all aspects of your financial plan are covered.

Are your financial needs becoming more complex? Are you looking for smart, well-constructed solutions? Contact your BlueShore financial advisor and invest in a partnership that pays.