Why the personal touch of a professional financial planner is irreplaceable

Personal finances can cause Canadians stress and sleepless nights at the best of times, but today’s economic environment feels particularly overwhelming. We’re facing a number of challenges that seemingly pose threats to our long-term financial well-being, from the high cost of living to housing market volatility and an uncertain economic outlook.

Research reflects these realities. In surveys commissioned by FP Canada from Pollara Strategic Insights in 2021 and 2023, over the two-year period there was a significant drop in respondents who felt they were getting ahead or were financially secure. There was also a correlated increase in those who felt that they were just getting by with no savings or who were falling behind on monthly expenses.

In 2021, the split between those getting ahead and falling behind was roughly 50/50. But in 2023, those who reported they were falling behind had increased by 10 percentage points to 60 per cent while only 40 per cent felt like they were getting ahead.

Although this data suggests an alarming trend, the encouraging thing is that we know tools are available to help Canadians get on track towards achieving financial well-being. In particular, working with a Certified Financial Planner professional or a Qualified Associate Financial Planner professional can help Canadians take control of their financial situation and build financial resilience. With this being Financial Planning Week in Canada, it’s the ideal time to shine a spotlight on financial planning and the important role it can play for all Canadians.

The personal touch

In today’s world, a growing number of digital tools – apps, robo-advisers and online calculators – promise quick solutions to financial uncertainty, and the number of digital solutions will only increase with the growth of AI-driven technologies.

Digital financial planning tools are highly efficient for some needs. Consumers can use digital solutions to create budgets, track expenses and manage money across multiple platforms. In addition, many financial planning professionals are increasingly leveraging technology to streamline client interactions and provide real-time data analytics, enhancing their ability to support clients’ financial goals in a more efficient and responsive manner.

But while technology enables financial planners to deliver faster and more analytics-informed insights, a personal relationship remains crucial for truly understanding your unique goals, values and emotional needs, allowing planners to provide tailored guidance and support through life’s financial challenges. If you need an in-depth checkup on the health of your finances and an effective treatment strategy – in other words, a multi-layered and workable financial plan – working one-on-one with a professional is essential.

That’s because financial planning is personal. It’s about you – your dreams, your values and your aspirations, whether that means buying a house or travelling the world. Professional financial planners work closely with their clients to assess their unique needs, goals and aspirations for managing their money both at the current time and when life events require changes to the plan.

Some may believe financial planning is only for the wealthy or for those nearing retirement. But in fact, it’s essential for every Canadian, in every chapter of life – whether you’re starting a new life in Canada, fresh out of university or planning for retirement. Partnering with a financial planning professional is about designing a roadmap for your financial future that not only helps you address ongoing challenges but also prioritizes your personal dreams while easing your financial anxieties.

The research we’ve conducted bears this out. The 2024 Financial Stress Index found that 44 per cent of Canadians say money is their leading source of stress. However, Canadians who work with a financial professional, such as a CFP professional or a QAFP professional, are 33 per cent less likely to be stressed out about money and 23 per cent less likely to have lost sleep over financial worries.

The Pollara study found that among the Canadians who had received professional financial advice, nine in 10 said it was valuable or very valuable. The top benefits they reported were greater peace of mind, improved financial skills and knowledge, and greater confidence in decision-making.

The importance of resilience

The past few years have shown us the importance of being financially prepared for the unexpected.

The COVID-19 pandemic, followed by rising inflation and climbing interest rates, reminded us that financial resilience – the ability to withstand economic setbacks – isn’t just a luxury; it’s a necessity. It’s also critically important to our health, with our 2024 Financial Stress Index showing that financial stress can lead to anxiety, depression and other mental health challenges.

A professional financial planner provides comprehensive support, assisting clients with managing cash flow, developing investment strategies, planning for taxes, preparing for retirement, organizing estates, and addressing insurance and risk-management needs. In doing so, they help develop a safety net to ensure your long-term goals are not impacted by unforeseen events.

Trusted advisers

But financial planning isn’t just about surviving; it’s about thriving. It’s about achieving your goals in a way that makes sense for your unique personal situation.

Professional financial planners serve as trusted advisers who help you define what success looks like for you. They take into account your lifestyle, family obligations, risk tolerance and even the emotional aspects of money. This personal connection ensures your financial plan is tailored to your individual goals and evolving circumstances.

Professional financial planners come to deeply understand your unique financial hopes, fears and dreams. They consider the trade-offs you might need to make or the unforeseen challenges you may face. And here in Canada, only those who have met rigorous standards of excellence in financial planning can call themselves Certified Financial Planner professionals or Qualified Associate Financial Planner professionals.

If you’re intent on building a secure and resilient financial future, partnering with a CFP professional or QAFP professional will help you manage economic uncertainties and achieve the goals that matter the most to you.

Canadians can get started by visiting FinancialPlanningforCanadians.ca.

Advertising feature produced by Randall Anthony Communications. The Globe’s editorial department was not involved.