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.
Protect yourself from these scams
With household debt rising to alarming levels in Canada, it is evident that we need to encourage young Canadians to be fiscally responsible in order for them to achieve their life goals. In this post, I will point to some websites aimed at helping young people develop their financial skills. This is not an extensive […]