Toronto, ON, October 9, 2007 – According to a study from the Investor Education Fund, a significant portion of Ontarians don't have a road map for their financial future.
The study shows that nearly one half (46%) of Ontario adults have never had a financial plan to save for retirement. In addition, 58% of parents don't have a plan to save for their children's education while close to nine out of ten adults (88%) have never had a financial plan to save for a home.
"The survey results are alarming," says Tom Hamza, president of the not-for-profit Investor Education Fund. "Without a financial plan, people run the risk of spending too much today, while failing to consider their future needs."
The Investor Education Fund survey also showed that some Ontario investors' relationships with their financial advisors may need improvement. One quarter (24%) of individuals who have both investments and a financial advisor indicate that they don't ask a lot of questions of their advisors, citing reasons such as a lack of confidence or knowledge. In addition, more than one in ten (13% or close to half a million investors across the province) admit to speaking with their advisor or broker about the financial performance of their portfolios less than once a year or not at all.
"One of the first rules of investing is to never put your money in something you don't understand," offers Hamza. "When their advisor recommends a certain strategy, investors need to understand it and how it fits their goals. They also need to track how their investments are doing, at least on an annual basis."
The Investor Education Fund survey also shows that many people who have investments in Ontario are willing to go it alone without professional financial advice. While six in ten Ontarians have investments (60%), four in ten of these investors (330/546 = 39.6%) do not have a financial advisor.
According to Hamza, financial planning doesn't have to be difficult or expensive. There are a number of online tools available to help investors plan for their future. The Investor Education Fund website www.investorED.ca helps investors ask the right questions before making key financial decisions. Some of the most valuable sections of the site offer information that investors won't learn on commercial sites, such as their responsibilities as an investor and what they should expect when working with a financial advisor. Case study examples show the effects of financial decisions including how much is needed to retire comfortably. Easy to use worksheets help consumers quickly create retirement plans and budgets.
About the Survey
These are the findings of the Investor Education Fund/Ipsos Reid poll conducted from Sept. 3rd to 7th, 2007. A representative randomly selected sample of 905 adult Ontarians was interviewed online. The results are considered accurate to within +/-3.3 percentage points, 19 times out of 20.
Download the full report: Ontarians not planning for their financial future
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