This chart is surprising (yet probably not unexpected) in so many ways:
- One-third of Canadians with $100K or less in investable assets say they don’t need a financial professional because they don’t have enough money … the key remains that these individuals could benefit from having constructive interaction with a financial professional.
- 22% say that advice costs too much. Mind baffling is that, even in 2021, 50% of Canadians still believe their advisors effectively work for free.
- The ones that say they know enough to do it themselves, also say that tax savings are important, YET a great many of them don’t use the most useful vehicles to begin to tackle the sought-after tax efficiency part of investing.
- Not trusting people who call themselves financial advisors, likely speaks to the confusion around licenses, designations, and titles. Standardizing titles and functions, while pointing out what a “true financial advisor” does, should help … presumably.
Clearly, the financial industry has its work cut out for them. Question is, how to get through to Canadians that they need to take an interest in their financial wellbeing. Maybe we need to come up with a sexier name for “financial literacy”
(Credo’s Financial Comfort Zone Survey – Fall 2016-Fall 2020 – results from more than 40,000 Canadians)