Benefits Of Financial Planning

More Optimism, Confidence, Peace of Mind

The Financial Planning Standards Council conducted a study on the value of financial planning. They found that clients who utilize comprehensive financial planning tend to have a more optimistic outlook and are much more confident when it comes to reaching their goals.

In all the categories they measured, those engaged in comprehensive planning had a much more positive outlook and felt much better about their financial affairs and had greater peace of mind. Strikingly, that was true at all levels of income.

Individuals with comprehensive financial plans consistently scored higher in terms of closeness to achieving life goals (short- and long-term). The results underscore how salient comprehensive planning can be for one’s financial and emotional well being.

Worth More  

Respondents receiving advice from a Certified Planner were worth more in terms of overall value of assets and investments under care. These people also had a more positive emotional outlook; felt closer to achieving their life goals; and have longer and more engaged relationships with their planner.

The value of financial planning is as apparent in the $600K net worth category as it is in the under $350K category. In fact, the study shows that those at the lower end of the net worth scale benefit most from a comprehensive plan – which effectively debunks the myth that financial planning is only useful for the rich.

Better Off Financially and Emotionally 

They saw very clearly that Canadians who engaged in what we call comprehensive, integrated financial planning appear to be significantly better off, not only in terms of their financial well-being, but in terms of less tangible emotional factors as well. 

A financial plan is a living document that evolves over time. It's hard for people who don't have a plan to understand the document's emotional impact, but if you have one, you clearly understand the benefits. 

Roadmap and Scorecard

A financial plan is both a roadmap and - as time goes by - a scorecard. It isn't enough to build a financial plan; our needs and objectives change over time. For example, saving for your children's education might be a priority while that wasn't the case ten years ago.

The ongoing planning process means that the plan will change to reflect changes in your life, and measure your progress toward achieving your goals. Knowing what needs to be done and having someone to help you get there provides a great deal of comfort.

Seeing Your Accomplishments

One of the surprising rewards of the initial financial planning process is realizing how much has already been accomplished. 

You can see families that have been paying down their mortgage, have a pension plan through their employer as well as RRSPs and RESPs – but don’t have a clear picture of what their efforts will mean over time.

When it is laid out for them, most people start to feel much less uncertainty about the future.

Prepare for Significant Events

Financial planning helps you prepare for life’s most significant events – your children’s education, the wedding of a son or daughter, your lifestyle in retirement, being able to care for your elders.

You can’t prepare for all of life’s events, of course, but when you identify and plan for most of them, life is just better. Financial planning makes that happen.

When it comes to finances, an important element of happiness is knowing that the money you have will support you throughout your lifespan.

Create Maximum Benefit and Financial Resilience

Comprehensive financial planning gives you confidence that your finances are being managed in a way that creates maximum benefit.

It also creates financial resilience, preparing families for the inevitable “life’s bumps and bruises” that come along.

Unanticipated changes such as a serious illness or a job loss, for example, have financial consequences. Working with someone you trust can help you manage them effectively.

All mutual funds and approved exempt securities are provided by Portfolio Strategies Corporation. All other products and services are provided by Brian Lepicq.