Research shows that just under half of Canadians have a financial advisor. If you rent your home, or have more debt than savings you’re less likely to have an investment advisor. By comparison, if you have a family, are female, or older than 65 then you’re more likely to have an advisor.
Being the government agency that registers advisors to buy and sell investment products, the BCSC thinks it’s important for investors to work with registered advisors. But the research also shows that 60% of the Canadians who have an advisor say they rely solely on that person’s advice, and that adds needless risk.
The risks connected with over-reliance on an advisor are fairly simple. You could end up with investments in your portfolio that you don’t understand or have higher fees than other products. You could also end up with investments that aren’t suitable for your risk tolerance or investment goals.
The new InvestRight Guide to Investing can help you get more involved with your investments. We’d like to see you working with your advisor like you would with a business partner, not putting them on a pedestal as an all-knowing authority.
How to avoid online scams
Why teach financial life skills? Many students currently leaving high school – and many adults – have weak financial life skills. Also, they have little knowledge of the financial realities they’ll face. Result: Many make costly mistakes, and are more vulnerable to scams and fraud. By teaching financial life skills, you can give them the […]