Blasting through financial inertia

Financial uncertainty and the complexity of financial information are holding Canadians back from investing, says Standard Life.

Standard Life has launched financial-inertia.com, a site to help people understand their investment styles, how finances and investing fit into their lives, and what might be preventing them from saving or investing.

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“Even those who actively manage their savings can benefit from understanding their financial mindset,” says Charles Guay, President and CEO of Standard Life.

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The site categorizes respondents into five profiles, based on social research from Environics Research and Standard Life’s own data.

They are:

• Sophisticated investor: 15% of Canadians. They’re in charge, with the determination to achieve financial goals. These investors are highly educated, driven and most likely to hold a wide range of investment vehicles. They score low on social connections but high on personal health.
• Confident accumulator: 23% of investors. They’re ambitiously striving to get ahead. These are educated white-collar people who are goal-oriented and optimistic. They’re highly engaged in their finances, and want to leave money to their children.
• Contented passive: 21% of investors. They see financial management as a routine chore. These investors are slightly older than average, semi-professional workers with secure jobs. They earn average incomes and are likely to understand the basics of investing, but only look at their investments from time to time.
• Cautious analyzer: 20% of investors. They’re constantly worrying about the future, and whether they’ll have enough money to retire. These investors often feel squeezed for time, and don’t like monitoring their finances.
• Concerned investor: 22% of investors. They’re struggling and uncertain of how to improve their situations. These investors have less education, lower-income jobs and little savings. They rely on friends and family for advice, and since managing their finances makes them anxious, they avoid it at all costs.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.