IG Wealth Management Financial Literacy Month Study: Despite Advantages of Financial Planning, Myths Still Persist – Yahoo Finance
Just one-third of Canadians have a good understanding of what a financial plan is
More than 80 per cent (mistakenly) believe it’s just about investment management
Canadians with a plan are three times more confident they’ll reach financial goals
TORONTO, Nov. 12, 2021 /CNW/ – To mark Financial Literacy Month, IG Wealth Management (“IG”) today released a study on Canadians and financial planning. The results find that, despite the value a financial plan can provide in helping achieve one’s goals, myths continue to exist around what a plan actually is and the role one can play in building confidence and achieving financial well-being.
IG Wealth Management logo (CNW Group/IG Wealth Management)
The study, conducted by Pollara Strategic Insights for IG, noted that Canadians who have a holistic financial plan (i.e. one that brings together multiple dimensions of their financial world, including budgeting, debt, insurance, estate and retirement planning as well as investing and an overall tax strategy) are three times more likely to feel very confident that they will be able to achieve their financial goals than Canadians who do not.
Further, the study revealed the following:
Only one-third of Canadians feel they know “a lot” about what a financial plan is and how it can help them.
More than 80 per cent reported that a financial plan is all about their investments, with very few appreciating that a truly effective financial plan covers off much more than just portfolio management.
And, while 61 per cent of Canadians reported having a financial plan, the majority stated that their plan was primarily “one-dimensional” and focussed almost exclusively on their investments.
“We know that a truly personalized holistic plan can play a significant role in helping realize your financial goals– we see this everyday in the work we do with our clients,” said Damon Murchison, President & CEO, IG Wealth Management. “Despite this there remains many misconceptions about not just the value a plan can provide, but also about its components.”
Of concern, the study found that almost three-quarters of Canadians who both use a financial advisor and have a financial plan reported that their plan focusses exclusively on investments.
Mr. Murchison noted that, while investment management is important, to be truly effective …….