The value of financial advice
Typically, your financial journey starts by reading personal finance blogs, watching social media influencers, or talking to friends about the stock market. While getting started might be filled with
excitement, long-term financial success comes with emotional decisions. Investment success can be less stressful with a professional who can help you keep your emotions in check and ensure your
investments meet your financial goals.
Research consistently shows that hiring a professional investment advisor is the best way to meet your long-term financial goals. The 2024 Fidelity Retirement Report breaks down the value of advice in three key areas.
1. Retire with peace of mind.
Inflation, among other economic issues, naturally affects investors. However, 92% of retirees with a written financial plan feel more positive about their financial situation; only 73% of those without one say the same. With pre-retirees, that gap widens significantly to 81% and 54%, respectively, according to our latest report.
It’s easy to see why having an advisor helps calm nerves: you want peace of mind knowing your financial goals can be met. Whether seeking advice on tax efficiency to increase net returns or preserving wealth in the right investments for your needs, working with an advisor can help ensure you’re prepared for retirement. A financial plan offers a granular view of how you can reach your goals, providing everything from details about your income sources in retirement to a budget estimating your ongoing spending.
Think of a financial plan as a roadmap to your financial success, bringing your vision of retirement to reality and giving you comfort that your money can last. Both retirees and pre-retirees surveyed by Fidelity wanted a cushion of extra money to boost their quality of life, enabling them to enjoy hobbies such as travel.
2. Safeguard investments against emotions and market volatility.
Financial markets have become increasingly complex, requiring enhanced investment strategies to secure long-term financial health. While navigating complex markets can be challenging, the biggest hurdle is managing your emotions. Making emotional decisions can be a greater risk to your portfolio than market movements, particularly during downturns. Financial advisors function as trusted and pragmatic partners, collaborating with you and considering your life events, risk tolerance and time horizon. By performing ongoing risk assessments and making proactive adjustments to your portfolio, financial advisors and planners can help you stay on track to meet your goals.
In fact, 69% of Canadians who work with an advisor say they are closer to achieving their financial goals, in part because a professional makes sure investment choices are based on logic rather than emotion.
3. Get customized planning for individual goals.
Financial advisors have deep expertise and access to services, proprietary resources, and tools to help you make informed decisions. These added capabilities enable professionals to adopt a customized approach to your unique needs and capitalize on investment opportunities more quickly.
That’s why Canadians who work with an advisor are 72% more likely to say that they feel optimistic about opportunities for future investment growth.
Advisors also have valuable expertise in areas beyond financial portfolios, such as insurance, business succession planning and philanthropic endeavours. The decisions you make today can affect your future goals, so it’s wise to have a holistic picture of your life circumstances and access to specialists to make your strategic plan comes to fruition.
Your financial journey may have occasional ups and downs, but these bumps are easier to manage with professional advice. When you have support you become emotionally and financially equipped to find – and stay on – the right path and enhance your financial well-being. That’s the value of advice.
