Grow Your Wealth With Professional Advice

One of the best indicators of future wealth is whether or not a person works with an advisor. In recent years, studies have shown that people who benefit from financial advice tend to build more wealth than unadvised individuals. In fact, the additional accumulation of assets can be significant over time, leading to a more secure financial future.

So, why is working with an advisor a sensible plan for building wealth? The key is in the word “plan”. Many people fail to grow their investments because they don’t adhere to an investment plan. That’s where an advisor can help as it’s their role to develop a comprehensive plan based on their deep understanding of your unique goals and circumstances, and then encourage you to stick with this plan. An advisor will also make adjustments as conditions warrant, so you can continue facing the future with confidence.

The value of advice

One of the most important components of an investment plan is your investment strategy. An advisor will take a disciplined, long-term approach to generating investment returns that are as strong as possible given your financial objectives, risk tolerance, time horizon and other factors. Advisors can also help you avoid emotional investing so you can stay calm, disciplined and invested for the long term.

In addition, advisors will invest and manage your money in a tax-efficient manner, which includes strategies for minimizing income taxes and maximizing your use of tax-advantaged plans such as RRSPs, TFSAs, RESPs and RRIFs. They’ll also oversee your insurance needs to ensure you have the coverage you and your family need over the long term.

Choosing the right advisor for you

Since advisors play such an important role in your financial well-being, it’s critical that you go about the selection process carefully. Ask family members or close friends if they’re happy with their advisor. Getting referrals from people you trust is an effective way to identify a suitable advisor.

Once you have a few candidates in mind, meet with each of them, either in person, by phone or on a video chat. Basically, you’ll want to see if their personality, business model, product offering and service orientation match your needs. Don’t forget to inquire about their training and education, years of industry experience and areas of expertise. It’s also important to gain a sense of how well (and easily) you communicate with each candidate, and how often you should expect contact with them. And finally, ask about their compensation model (e.g., they might be paid based on transactions or charge a fee for their services based on assets they manage for you).

Many advisors can introduce you to existing clients who can share their insights and experience. After narrowing your list to one or two strong candidates, request another interview to discuss their overall offering in greater detail, to ensure a good fit.

INVESTED IN YOU

This article is a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. Investia Financial Services Inc. is a wholly-owned subsidiary of Industrial Alliance Insurance and Financial Services Inc., a life and health insurance company which operates under the trade name iA Financial Group.

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