The Biggest Myth About Financial Planners

Ask people if they keep their money in a bank and the vast majority will answer yes. They know that their money is important and it’s worth it to spend a little to protect it.

But ask them if they use a financial planner to help them take better control of their investments, and 75% of people will tell you they don’t. Instead, they add financial planning to the long list of chores they’ve already got on their plate, including cleaning the house and taking the dog for a walk.

And that is creating undue stress and anxiety in many people’s lives.

The prevalence of financial anxiety

Just under half of Canadians (44%) say money is one of their biggest worries, often stealing their sleep at night. And, if you talk to younger Canadians, that jumps to 53% (Millenials) and 48% (Gen Z).

With the recent increase in the cost of living, and the spiralling prices of homes and rent, it’s easy to understand why money creates so much stress and anxiety in the lives of Canadians. 

However, it doesn’t have to be that way. If you’re struggling with financial anxiety, there is a way you can reduce the negative impact of that stress – working with a Financial Planner.

Clients of Financial Planners are 33% less likely to stress about money and 23% less likely to lose sleep over it. They are also more optimistic about their futures, with 56% reporting a bright view of the future, versus the 48% who are optimistic about doing it themselves.

So if Financial Planners can lower your financial anxiety, just like keeping your money in a bank does, why are so many Canadians trying to go it alone?

The myth of the wealthy

Somewhere along the line, a myth has sprung up, tying the financial industry as a whole to luxury vehicles, private clubs and an expensive lifestyle. People think if they can’t afford a BMW, they shouldn’t go to a financial planner. 

In fact, it’s often the exact opposite.

The people who are struggling the most are those with low financial literacy and little time or energy to understand how to improve their financial position. Yet, they’re struggling to go it alone because they think they need more money before working with a Financial Planner.

Why Financial Planners are for everyone

The first step to creating functional wealth is not getting a job that pays you 7 figures. There is no end to people with great jobs and poor spending habits who struggle with financial anxieties to create a solid action plan. Without a plan, there is no amount of money that will ever be ‘enough’. 

But, with a strong plan in place, you can make the most of every cent coming in, and start building the life you want. A Financial Planner will help you create that plan, so you can create the steps you need to take to meet your goals.

Then, once you have your plan, you can begin to make your way towards your financial goals, like security and even purchasing a home.

But, it’s important to remember the plan comes first, not the money. 

Even if you only have five dollars a month to start investing, it’s better to work with a financial planner to create a cohesive plan so you can build towards your goals and your peace.

The cost of using a financial planner

Of course, for those who are dealing with financial anxiety, the thought of adding yet another cost to their lives may seem counter intuitive. 

However, Financial Planners charge in a variety of ways, making it easier to leverage their services, no matter how much money you have to invest today. Typically, a Financial planner will charge hourly or as a percentage of your assets.

This allows you to find fees that will work for you, so you can move forward.

Find the right financial planner for you

To find the most peace of mind, you need to find a Financial Planner you can trust. 

To do that, look for someone with a Certified Financial Planner (CFP) designation. You can find a list of Certified Financial Planners on the Financial Planning Association of Canada’s website.

Each of these professionals listed will have a bachelor’s degree or at least 10 years of experience. They are also held to fiduciary standard, which means they won’t try to sell you on something you don’t need.

So if you’re worrying about money, take the step to find some peace and start looking for a Financial Planner to help you make a plan.