A holistic financial plan is more than your investment portfolio

You may know the basics of spending and saving, but what do you know about optimizing your financial plan? IG Wealth Management recently released research showing that myths are preventing Canadians from getting the most out of their financial plan.

According to the results, only a third of Canadians feel they know “a lot” about what a financial plan is and how it can help them. More than 80% of respondents said that a financial plan is only about their investments, and very few of them understood that a truly effective and holistic financial plan covers much more than just portfolio management.

“The study revealed a gap in knowledge between what Canadians perceive as a financial plan and what a financial plan actually is,” said Damon Murchison, President and CEO, IG Wealth Management. “A holistic financial plan goes far beyond investment management. It should cover all aspects of your financial life, including budgeting, debt, insurance, estate and retirement planning, as well as investments and an overall tax strategy.

Murchison noted that a properly crafted and executed financial plan can be invaluable in helping a person successfully navigate all aspects of their financial life, from minimizing the taxes they pay, to ensuring they have a “rainy day fund” in case of job loss or an unexpected expense or adjusting their retirement plans to account for rising inflation.

While 61% of Canadian respondents said they have a financial plan, the majority said their plan was mostly “one-dimensional” and focused almost exclusively on their investments.

Another concerning finding from the study is that nearly three-quarters of Canadians who both use a financial advisor and have a financial plan said their plan focuses exclusively on investments. There could be several reasons for this, Murchison says.

“Unfortunately, some Canadians may be working with an advisor who doesn’t meet their financial planning needs. Financial advisors who want to maximize the value they deliver to their clients need to work with them on all dimensions of their financial world and understand how everything is connected.

Lack of knowledge is why IG Wealth Management is committed to showing Canadians that a better understanding of financial planning will lead to greater financial resilience.

The network of advisors across Canada who make up IG Wealth Management understand that true financial well-being goes beyond investing. The team offers personalized financial solutions for retirement planning, insurance solutions, estate planning, tax planning, business solutions and much more.

Visit IG Wealth Management online to learn more about their wide range of services and start building your financial resilience.

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