* Those who received comprehensive advice most optimistic
* Study eliminates net worth as an influencing variable
NIAGARA FALLS, Ontario, June 15 Canadians who
receive comprehensive financial advice rate their emotional and
financial well being higher -- often significantly so -- than
those who do not receive advice, according to a study released
The Value of Financial Planning Study, conducted by polling
firm the Strategic Council on behalf of the Financial Planners
Standards Council (FPSC), asked a series of questions online to
7,383 English-speaking Canadians between August 2009 and
The respondents were broken up into three groups: those who
had received comprehensive financial planning from an adviser,
those with limited financial advice, and those that had not
It also separated the groups into different net-worth
categories to eliminate net worth as a variable when evaluating
the impact of financial planning.
"Overall, the survey's results indicate that the benefits
of financial planning are much more than simply the
accumulation of wealth," said Cary List, president and chief
executive of FPSC, when presenting the study at the Canadian
Institute of Financial Planners annual conference.
"Those individuals who receive comprehensive, integrated
planning have a significantly more optimistic outlook on their
emotional and financial well-being compared to those who
"They feel better prepared to deal with financial
emergencies and manage through difficult economic times, they
are more confident in reaching a wider spectrum of key life
goals, and...they have a better understanding of their
financial needs and thus are more confident in this regard."
EMOTIONAL WELL BEING
When asked to respond to the statement, "I feel I barely
get by every month", 30 percent of those who had received
comprehensive advice agreed.
Comprehensive advice was defined as being given by an
adviser who provides financial planning for major life goals
and events in at least three of the following areas: household
budgeting, tax, retirement, estate planning, investing, debt,
and risk management.
Of those who received limited financial advice, 39 percent
agreed with the statement. Limited financial advice was defined
as advice in just one or two of the same areas as the
Among those with no financial advice -- including "do it
yourselfers" -- the number of those who agreed with the
statement jumped to 57 percent.
To the statement "I worry a lot about my financial
situation," 44 percent of the comprehensive group agreed, 49
percent of the limited group agreed, and 60 percent of the "no
planning group agreed.
Some other statements and responses included:
- I have a hard time achieving my goals.
Comprehensive, 30 percent agreed; limited, 34 percent;
none, 44 percent.
-If anything should happen to me the people I care about
would be looked after.
Comprehensive, 72 percent agreed; limited, 60 percent;
none, 38 percent.
- I am on track to reach my desired lifestyle in
Comprehensive, 51 percent agreed; limited, 33 percent; no
planning, 18 percent.
-I am content with the way my life is going.
Comprehensive, 62 percent agreed; limited, 51 percent; no
planning, 37 percent.
- I have peace of mind.
Comprehensive, 61 percent agreed; limited, 48 percent; no
planning, 36 percent.
- Retiring in the lifestyle you want to.
Comprehensive, 43 percent said they were close; limited, 30
percent; no planning, 16 percent.
- Not having to worry about money.
Comprehensive, 45 percent said they were close; limited, 33
percent; no planning, 16 percent.
- Making sure there is enough money for post secondary
education for you children.
Comprehensive, 53 percent said they were close; limited, 38
percent; no planning, 19 percent.
(Reporting by John McCrank; editing by Peter Galloway)