Jun 05 2013

The Value of Financial Planning Study

The Value of Financial Planning Study

The value of Financial Planning

The Value of Financial Planning

I am a member of the Financial Planning Standards Council (FPSC®).  It develops, promotes and enforces professional standards in financial planning through the Certified Financial Planner®/CFP® certification, and raises Canadians’ awareness of the importance of financial planning. FPSC’s vision is to see Canadians improve their lives by engaging in financial planning.

A study conducted by the FPSC Foundation called the Value of Financial Planning looked at whether those with comprehensive financial planning advice, felt better about their financial situation than those with limited or no financial planning advice.

The study broke the financial planning components down as follows.
  1. Household Budgeting (or better referred to as Debt Management)
  2. Tax Planning
  3. Retirement Planning
  4. Estate Planning
  5. Investment Planning
  6. Risk Management Planning
The study was was then divided into three degrees of service/advice as follows.
  • Comprehensive Planning – at least three of the planning components provided by a financial planner,
  • Limited Planning – at least one or two planning components provided by a financial planner,
  • No Planning – no planning advice from a financial planner.
Below is a summary of the questions asked.
  1. On track with financial affairs,
  2. on track to retire,
  3. on track to save,
  4. can deal with bumps in life ie. unexpected financial emergencies, tough economic times and/or loved ones look after in the event of death.

The survey results, not surprisingly, showed that those with comprehensive planning were significantly higher levels of financial and emotional well-being than those that who do limited to no planning.

If you haven’t taken the opportunity to work with a Certified Financial Planner, maybe it’s time to consider a Comprehensive Plan for your financial situation.

If you have further comments or questions, please don’t hesitate to contact me.

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