More Planning, More Money
How much value does a plan add?
Both scenarios start with $500K and have an average return of 6%, but by adding 1.75% in planning value, it equates to more money in your investment account.
From a study conducted by the Financial Planning Standards Council, only 32% of Canadian have any type of financial plan, limited or comprehensive. Yet Canadians who engage in comprehensive financial planning report significantly higher levels of financial and emotional well-being than those who do no planning or limited planning. Further to this piece of mind, it has been found that having a plan that is followed and updated by an advisor can add 1-2.5% to your rate of return annually.
Having a plan matters! While 1-2.5% may not seem like much, that compounded over time adds up to a lot of money! And what's even better, unlike the markets, having and following a plan can be controlled.
As they say, failing to plan is planning to fail. Contact us today to help you create a complimentary plan.
This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns.