Misconceptions about Financial Advising

Thinking about the best way of managing your finances but not sure who to turn to? Learn about the misconceptions people have about financial planners and how they can be of service.

If you’ve never engaged in comprehensive financial planning with a professional, you might wonder about the process and whether it’s right for you. My name is Mark Ritcey and I offer a free financial plan which includes both Wealth Management and Wealth Protection. If you’re not exactly sure what that means, you’re not alone. There are many misconceptions about financial planning. Read on to get the facts.

Myth 1: Life Insurance is expensive.

Many life insurance options are extremely affordable. In fact, a healthy 30-year-old female non-smoker can purchase $500,000 of life insurance for less than $20 per month with the guarantee that the premiums stay the same for 10 years. Buying Life Insurance is one of the most selfless acts you can do for your family as the insured will never see the full benefit the policy.

Myth 2: Group Health & Dental Insurance is enough

If you currently have group health insurance through your employer, there most likely is a component of Life & Disability and possibly Critical Illness insurance included. Typically for a family, this coverage is not nearly enough on its own, and if you ever lost your job, you lose your coverage. A personally owned Life, Disability & Critical Illness insurance policy is a cost effective way to get adequate coverage for you and your family where your coverage is guaranteed and you own your policy.

Myth 3: Investing with an advisor is expensive.

Many advisors do charge for building a financial plan for their clients. I do not. In saying that though, if I do create a comprehensive plan for you and your family, and you decide to go forward with the recommendation, my hope is that you use me as your advisor. Hiring me, you get a local, competent; advisor to prepare a comprehensive financial plan tailored to you and flexible to your needs. (Investing includes Pensions, RRSP’s, RESP’s, TFSA’s and Mutual Funds)

Myth 4: My Financial Advisor does it all for me

Working with me, I provide a component of education. Although you don’t need to fully understand all aspects of financial planning, you do need to be engaged in the process. You also need to be an active participant as I rely on you to provide all the relevant information about your financial situation and life objectives. Your financial plan is something we build together and review on a semi-annual or annual basis.

Myth 5: I’m saving enough for retirement.

Are you saving enough? How do you know? Most Canadians underestimate the amount of money they’ll need in retirement. The only way that one will know the amount they need for retirement is to create a financial plan that sets out specific goals you wish to prepare for. When set, you can then determine the capital needed to set aside to accomplish your personal goals. It is when you know the amount needed at the end of your working career that you are able to know the amount of money you will have to set aside each month to achieve the retirement you so desire.

Myth 6: My affairs are all in order. I don’t need a Financial Advisor

I still have yet to meet this individual. Whether it’s RESP’s, RRSP’s TFSA’s, current Life, Disability or Critical Illness coverage, just getting a free consultation on your current investments and insurance products could save you money, update your risk levels on your investments, or just educate you on what you currently have. Even if you want a review of your current needs, I’d be more than happy to sit down and review.

As a Milton Resident, Husband and father to three young girls, all under the age of five, I know some of the pains and struggles you may be going through. You may not know where to start. Whether it’s a quick 15 minute conversation over a coffee, or a full comprehensive review at your dinner table, I am here as a professional to provide answers to your questions. At the very least, I guarantee that you will learn something new.

 

Blog written by Mark Ritcey Financial Advisor:

mark.ritcey@f55f.com 

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