Crossgrove Blog

Canadians Putting a Premium on Advice as They Navigate Current Market Environment

Thu, Nov 3, 2022 4:00 PM GMT

In advance of Financial Literacy Month, IG Wealth Management (IG) today released a study on Canadians and personal financial planning. According to the study, Canadians are feeling uncertain when it comes to their personal finances. However, those who use a financial advisor are much more likely to feel secure and "financially healthy" as they navigate current market conditions.   

The study, conducted in partnership with Pollara Strategic Insights, found:

  • Sixty-nine per cent of Canadians stated that they are not feeling financially healthy as a result of recent economic conditions.
  • Two-fifths (44 per cent) say they are getting by financially but could be better off.
  • Similarly, 44 per cent worry they are not handling their finances in the best way possible.
  • One-third (31 per cent) of Canadians who do not work with a financial advisor are worried about their finances. However, this number drops to just 16 per cent among those who do work with one.

"It's understandable that so many Canadians are feeling insecure about their personal finances given everything they're seeing out there, whether it be market volatility, inflation or rising interest rates," said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management. "In many cases, people may feel overwhelmed and uncertain of how to navigate current market conditions. It's not a surprise that those who take advantage of the advice provided by a qualified financial advisor are less likely to be concerned about their situation." 

Ms. Van Cauwenberghe noted that, in times like these, it is especially important for Canadians to work with a financial advisor who has the knowledge and expertise to review all aspects of their financial world and ensure they have a holistic financial plan so they can make better decisions and feel more confident.

Not All Advisors are Created Equal

Ms. Van Cauwenberghe also underlined the importance of appreciating that, although many financial institutions may have staff who are capable of completing transactions, not all may be able to provide the full scope of financial planning services required, including the ability to provide comprehensive advice. 

"When you're choosing a financial advisor, verify their credentials to ensure that they have expertise in financial planning. You should also make sure that they take the time to get to know your personal situation and identify your individual objectives before immediately recommending specific products. Some advisors are only capable of providing investment advice and will start suggesting specific investment solutions before they've asked you many questions – that's a flashing red light that they are more concerned about selling a product than creating a plan that meets your needs".

In fact, the study found:

  • One-fifth (21 per cent) of Canadians go to retail bank-based representatives for complete financial advice.
  • Almost half (46 per cent) of Canadians expect advice on their financial health from where they do their banking, but only 29 per cent say they actually receive this.

"Canadians deserve more when it comes to financial advice," stated Ms. Van Cauwenberghe. "It's important to understand that not all bank-based representatives are certified financial planners. While you may feel comfortable going to your financial institution for guidance on loans or investing, you may be missing out on crucial advice about all the other aspects that should make up a financial plan."

About Crossgrove & Company

Crossgrove & Company Inc. is a niche supplier of Financial Risk and Wealth Management Products, who specializes in designing customer specific plans. For nearly three decades we have been dedicated to providing both service excellence and uncompromising advice to individual and corporate clients.

By making complex financial situations manageable, a team of specialists will provide you with the information, confidence, and support you need in order to build a foundation for a sound and secure financial future.

We are an independent full service firm with access to the most competitive financial products, enabling us to guide you to the best solutions the market has to offer.

Confidence, Security, Teamwork … That’s Crossgrove & Company’s assurance to you.

About the Pollara Study

This study was conducted with an online sample of 1,500 adult Canadians between September 15th and September 20th, 2022. Results from a random sample of this size can be considered accurate to within ±2.4% per cent, 19 times out of 20. Results have been weighted to be reflective of the Canadian population.


Reference: NewsWire