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Did you know working with a wealth advisor can improve your well-being? Thumbnail

Did you know working with a wealth advisor can improve your well-being?

Financial Planning

Imagine you’re planning a trip through unfamiliar terrain and there’s no GPS to guide you. You have a general sense of where you’re going, but don’t know which route will get you there with the least amount of wrong turns and in the best time possible.

Many people feel this way when they think about the journey towards their financial future and don’t have a wealth advisor to guide them along the way. For high-net-worth investors, despite having substantial wealth, not having a clear strategy for managing, preserving, and growing that wealth can be stressful. The main reasons that cause this stress are:

  • Concerns about wealth preservation: High-net-worth investors often worry more about preserving their wealth rather than just growing it. They may be stressed about protecting assets from market volatility, taxes, inflation, and ensuring their wealth lasts across generations.
  • Complex financial decisions: Managing a large portfolio often requires more complex financial strategies, involving estate planning, tax considerations, and navigating diverse investment vehicles, which can add stress.
  • Fear of losing their lifestyle: With greater wealth, the fear of losing it (and the associated lifestyle) can lead to stress, especially during market downturns.

The good news is that one of the most impactful steps you can take to reduce financial stress is also one of the easiest: simply engage a wealth advisor. What happens when you do? According to FP Canada, Canadians who work with an advisor feel more optimistic about their financial future than those who don’t (56% compared to 48%). On the other hand, Canadians who don’t work with a wealth advisor are 33% more likely to be stressed about money and 23% more likely to have lost sleep worrying about their finances than those who do. 

There are at least four reasons why professional financial advice for high-net-worth investors can improve your well-being:

  • Financial security and growth: It can lead to better performance with less volatility, since your portfolio will be expertly constructed and regularly monitored.
  • Emotional returns: Beyond financial returns, it can generate emotional returns as you enjoy the peace of mind that comes from having a well-thought-out, personalized financial plan to manage through all of life’s events.
  • Long-term cost efficiency: It can save you money with cost-efficient, tax-efficient strategies that let you keep and grow more of your hard-earned income.
  • Manage behaviour bias: It can protect you from making mistakes motivated by the behavioural biases we all have – for example, the fear of missing out on the next opportunity and the strong drive to avoid losses no matter what.

When you work with a wealth advisor you trust, you’re making a strategic investment in your financial and emotional well-being. You’ll have a guide through the journey of your future, easing financial stress and its symptoms, so you can live life confidently.