Clients want to shoot for the moon but don’t have financial plans

By Staff | January 25, 2017 | Last updated on January 25, 2017
2 min read

In a survey by RBC Insurance about segregated funds, 87% of Canadian respondents agree that they’d like investments that grow and guarantee principal.

Read: Educate clients on risk of loss, OSC roundtable urges

That desire to have it all is probably no surprise, but other survey findings might be.

For instance, 60% of respondents didn’t know about seg funds. And 80% failed a true-or-false quiz on those funds.

Further, when asked about fees, responses varied widely. While 33% say they wouldn’t mind paying a higher fee for the guaranteed principal provided by a seg fund, 47% disagree and 20% are unsure.

Read: 28% of B.C. clients don’t know how advisors are paid

Overall, survey responses potentially underscore the lack of understanding Canadians have about their financial needs and about financial products. That lack might represent an opportunity — not to mention a lot of client conversations — for advisors, especially with 83% of respondents saying estate planning is important to them.

Read: 5,000 people retire each week. Are we ready?

Of course, identifying something as important doesn’t necessarily translate into action.

A CIBC poll finds that 46% of Canadians don’t have a financial plan despite feeling concern about retirement. Of the 54% who do have a plan, 36% say the plan is only a budget, a short-term plan or something “other.”

But having a financial advisor makes a difference. Those who have one feel better able to manage setbacks (61%).

About the surveys

CIBC’s survey was conducted this month among 1,007 Canadian adults with household incomes greater than $100,000.

RBC’s survey, conducted in November 2016, consists of 1,002 Canadians aged 55 and older with household incomes greater than $100,000. staff


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