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Navigating the Storm: How a Financial Advisor Can Be Your Lifeline

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Many Canadians are feeling overwhelmed with the current state of the financial landscape. Inflation, volatility, as well as rising interest rates, have all added insult to injury, there is no way around it we are currently living in challenging economic times. A financial advisor can help make sense of it all and help get you in the right direction. Here are a couple of key benefits of working with a financial advisor.  

Avoid emotional investment habits.

Market volatility is highly uncomfortable even for the most seasoned investors. Many have the illusion that we have a kind of control over the outcomes of the market that does not match the unwelcome reality. It’s important for investors to not let their emotions get the best of them when faced with volatility, In the great words of many that have come before me” This too shall pass.” In situations where the market is in a downturn your financial advisor can help you resist making impulsive decisions out of fear and panic, Sometimes the best reaction is to take no action at all.

Building wealth through better savings behavior

Saving money is challenging for many individuals, despite their best intentions and efforts, people often struggle to build savings due to psychological and behavioral barriers involved. Think of your financial advisor as a coach that gives you not only the little boost that is needed to get over this said barrier but the know-how to stay above. Research has shown the positive outcome of having a financial advisor, for example, on average individuals that had a Fa for 15 years or more had asset values that were 131% higher on average than those that did not  

Making too many financial decisions can also lead to decision fatigue, which in turn can make it difficult to make calculated and good decisions about saving, Research has shown that willpower is a finite resource and can be depleted by decision-making , your Financial advisor can take some of the mental load off your shoulders by providing you with a plan and strategies that will help you reach your savings goals.

Building a more resistant portfolio

It is unfortunate but sometimes markets go through periods of volatility, The growing unpredictability in the market highlights the importance of adopting a strategic method for portfolio construction. This approach should be capable of withstanding market fluctuations and be in sync with long-term investment goals. Financial advisors have the knowledge as well as the experience to help their clients build customized diversified portfolios, that can adapt and even thrive in a variety of market environments.

The last word

In these challenging times, the role of a financial advisor becomes as crucial as a lighthouse in the sea of economic unpredictability. They provide steady, rational guidance, help mitigate impulsive, emotionally charged decisions, and foster effective saving behaviors to boost wealth. Their expertise in constructing resilient portfolios is invaluable, tailoring strategies to withstand market ebbs and flows, and aligning investments to your long-term goals. In essence, navigating the financial storm is no easy feat, but with a financial advisor by your side, the journey becomes a bit less daunting and a lot more navigable.

- Mitchell Cathcart, Marketing Assistant, Kondwelani Kalinda, Licensed Assistant & Financial Planning Associate and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Mitchell Cathcart Marketing Assistant, Kondwelani Kalinda, Licensed Assistant& Financial Planning Associate and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.  

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

References

• https://econreview.berkeley.edu/4242-2/

• https://cirano.qc.ca/files/publications/2020RP-04.pdf

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