Financial advice spans entire life cycle of Canadian families

Professional financial advisors help Canadians prepare for important events and needs throughout their lives, and to become more financially self-sufficient. Financial advisors play a fundamental role in raising the financial literacy of their clients. More and better financial advice improves the financial literacy of consumers.

The Task Force on Financial Literacy concludes that Canadians require financial literacy training throughout their lives. Among its key recommendations:

… that the Government of Canada, in partnership with stakeholders, provide tools to help Canadians become better informed about the role and benefits of professional financial advice, as well as how to choose a financial practitioner.

Canadian households are much better off when they receive professional financial adviceProfessional financial advisors help Canadians to save and plan for their future, and to protect the savings they have accumulated through comprehensive planning and a wide range of life and health insurance and investment solutions. People who receive financial advice accumulate significantly more financial wealth, are better protected, and are better prepared for retirement and unexpected events than people who do not receive advice.

Based upon information from Investor Education Fund: www.GetSmarterAboutMoney.caSource: Task Force on Financial Literacy Report, December 2010

Living yourretirement

Caring for aloved one

Dealing withdying and death

Receivingunexpected money

Coping with illnessand disability

Being victimizedby fraud

Getting separatedor divorced

Planning forretirement

Losing a jobStarting abusiness

Having a baby

Getting married

Buying ahome

Buying a car

Acquiring an education

Getting anew job

Openingan account

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1.58x

1.99x

2.73x

4 - 6 Years 7- 14 Years > 15 YearsYears with a Financial Advisor

Growth in Financial Assets Over Time of Households that ReceivedAdvice Compared to Those That Did Not Receive Advice

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f Ad

vise

d v

s. N

on-A

dvi

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Fin

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Source: Econometric Models on the Value of Advice of a Financial Advisor; CIRANO; July 2012

The Value of Financial Advice

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About Advocis and its members

Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 11,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for consumer protection and professionalism. Professional financial advisors and planners help consumers make sound financial decisions that ultimately lead to greater financial stability and independence.

As a voluntary organization, Advocis is committed to professionalism among financial advisors. Our members are professional financial advisors who adhere to an established professional code of conduct, uphold stan-dards of best practice, participate in ongoing continuing education programs, maintain appropriate levels of professional liability insurance, and are committed to putting their clients' interests first.

Advocis members are provincially licensed to sell life and health insurance, mutual funds and other securi-ties. They are experts who can provide a full range of financial services, including estate and retirement planning, wealth management, risk management and tax planning.

For more information, visit www.advocis.ca.

The Value of Financial Advice

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