Putting time on your side is one of the best ways to achieve your financial goals. The earlier you start, the better your chances of success in creating wealth for yourself and your family.
One aspect of time’s power is compound interest. Investing and saving at a young age ensures you can maximize the momentum in interest or capital gains that builds exponentially over time. Another important way to benefit from time is to seek the guidance of a Certified Financial Planner early. CFPs tailor portfolios to the needs of each individual, family or business. To determine those needs with precision, a CFP examines a wide range of financial variables, from cash flow and savings to the goals and risk tolerance of each client. Experienced CFPs prescribe an array of investment choices that bring a client’s life goals into sharp focus. A CFP’s guidance can be life-changing. His or her counsel can help send kids to college, ensure a comfortable retirement, put families on a path to prosperity and keep businesses soaring toward success. Over the years a number of studies have attempted to quantify the value of a financial advisor. According to Russell Investments’ 2023 Value of an Advisor report, the value of a professional CFP is significant, and the best outcomes are achieved with financial planners who “help clients save money by keeping them focused on the long term rather than falling prey to emotions when markets get volatile.” The 2023 study highlights four elements that demonstrate the value of financial advisors: A CFP’s guidance in balancing and diversifying portfolios; encouraging consistent investing; customizing financial plans to address each stage of a customer’s life; and devising effective strategies to minimize taxes. “When we launched our Value of an Advisor study [10 years ago], an advisor was essentially a stockbroker,” the report contends. “Now, they can spearhead a network of experts to provide customized wealth planning for entire families. We believe the value of an advisor has increased as the services they offer have broadened and deepened.” The services mentioned are familiar to readers of this blog: family wealth planning, portfolio rebalancing, diversification, insurance, charitable giving, estate planning, trusts, cash management, income and distribution management, asset allocation, wealth education, family relationship management and career considerations. In addition to this wider range of services, clients increasingly seek clear lines of communication and deeper professional relationships with their advisor, along with customized solutions. The report points out the importance of rebalancing a portfolio regularly, benefiting from the insights and guidance of a CFP. It notes that a portfolio that featured a 60-40 equity/fixed income balance in 2009 would have become an 82-18 “growth portfolio” by 2022 if left untouched. “Maintaining the allocation of assets within the original guidelines keeps your portfolio aligned with your stated risk tolerance and your expectations for your money,” reads the report. “When you factor in the reduction in volatility that rebalancing can provide, the potential ‘risk-adjusted’ return is crucial. This is the return you get from your portfolio while still being able to sleep at night.” Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. Comments are closed.
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AuthorNathan Garries is a Certified Financial Planner who has been involved in financial advising, financial planning and wealth management for over two decades, carrying on a family tradition of three generations. Archives
October 2022
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