Canadians losing sleep over finances
And with it, so do unforeseen hardships.
That's why it is always good to be proactive and have a plan.
A new report by BMO Wealth Institute reveals that while many Canadians have a financial plan in place, very few have considered what would happen if unexpected life events arose that could cause financial hardships.
For instance, 84 per cent of Canadians polled believe they would face a major financial setback in the event of a disability; and three-quarters said the death of a spouse or a separation or divorce would have a negative impact on their financial situation.
In addition, another 60 per cent believe they are financially unprepared to deal with major life events such as retirement, declining health or the death of a loved one.
The report found that men are more likely than women to worry about being financially secure for retirement and also loss of employment; while women were more concerned about their health or the health of their spouse.
Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group, says, "A financial plan can be very helpful in ensuring you are well prepared for life's milestones such as buying a house, saving for a child's education, and retirement.
"However, one of the biggest mistakes individuals make is not stress-testing that plan against unforeseen events that can cause financial derailments."
That's why working with a professional financial advisor -- who understands the potential impact these adverse events can have -- can help you develop a practical and proactive plan to give you peace of mind, adds Buttigieg.
It's better to be safe, than sorry.
By Donna Donaldson, MSN Money
Do you have a safety net in place? Do you worry about adverse life events that could possibly take a toll on you financially?
Posted by: Jozef Spakowski | May 17, 2021 12:05:29 PM
Working with Professional Financial Advisor could possibly take A TTOOL ON YOU FINANCIALLY AND RUIN YOU EXCEPT LOSING SLEEP " if you trust the advisor before you make appointment wit Advisor.
People should thing twice to go for a advice to the Bank to unknown advisor for them.
Its critical, if the Banking Document have no clear writing to figure out in Plain Language and wit other things when we have really serious topics ( Your or Company investment money) to invest, to discuss and finally to sign the Document.
if the Document is not Clear in Writing with specific worlds, with worlds ensuring Exact Meaning and Definitions so if we reading the particular document of our Investment- Portfolio for the first time can figure out what we signing in cause of perhaps wrong Advisor.
Posted by: Jyl | May 19, 2021 3:25:53 AM
Yes, one would be silly to not worry about the impact of changing life circumstances. As for financial advisors, I have heard nightmares, too, about these, not the least of which is to sell mortgage insurance from banks which rarely pay out, no matter what the circumstances. They can create as many financial nightmares as they solve. Those in positions of trust are often not worthy of being there.
Posted by: Roger | May 21, 2021 10:37:05 AM
Having a plan is important, but you cannot plan for all contingencies. We had life, sickness, and unemployment insurance on our mortgage. Turns out it only paid for 12 months of unemployment. I guess we need to pay more attention to the fine print!
Posted by: Bruce Wareing | May 21, 2021 11:32:12 AM
It would be a SRESS SAVER if the Bank of Montreal would respond to five long distance phone calls also at least five special mailed letters. To request that I do not want online banking.I would rather have a bank statement mailed to me ,I am 82 years of age,to risk my pension deposits on the internet snoops at the very least the B OF M EMPLOYEES SHOULD NOT MAKE PROMISES THAT ARE NOT KEPT.CHECK YOUR TELUS TOWERS BRANCH.
Posted by: sam | May 21, 2021 12:42:22 PM
BMO just posted last week an article about the younger generation coming on they are going to be the big spenders...so which is it BMO...now you say if Canadians had a unexpected life event
happen that could pose financial hardships...as far as financial advsiors through banks they do not do the work like private companies...the banks are just out to take their fees...they only look at a portfolio once in awhile.....when the markets dropped to the bottom in 2008 it was because of the banks what did the financial advisors do then they sat and waited to see what was going to happen
anyone could see this coming in the last few months and they didn't....I think BMO needs to update their information...April 2013
A TD Economics study shows that the average outstanding mortgage balance was $158,642 for Canadians of all ages. Homeowners younger than age 25 had above-average mortgage debt at $176,217. But they weren’t the ones facing the most debt. Mortgage holders aged 25 to 44 averaged more than $184,000 of mortgage debt.
And while home debt is growing for the early twenties group, it’s growing even faster isn’t growing as fast as some other Canadians. Homeowners aged 65 and older showed an 8.6 per cent increase in mortgage value between 2011 and 2012 –Â nearly twice as high as those aged 18 to 24.
Posted by: Jozef Spakowski | May 21, 2021 1:26:18 PM
To Trust Bankers like Bernie and his managers with your investment is obviously not safe. If you have a Portfolio without " Document Clear Writing " before you sign the Document you can loose your investment in very short time, because the Banker invested your money not where and what you wanted. Clearly the Banker ignored you and because of that you lost your money and later he and managers didn't want to give you money back.
Is for anyone is clear Portfolio :" Select Conservative Portfolio " ????????
Posted by: Jozef Spakowski | May 21, 2021 1:46:54 PM
RBC " Select Conservative Portfolio" we ask for from Bernie with words : we want only Canadian Bonds and not Stocks. we sign the Document because we didn't have any other way just trust him when he said number of times to as , like in this portfolio is no Stock , no international Bonds or Stocks. It is only Canadian Bonds. turn out shortly he was wrong and we lost thousand of Dollars. Who is that banker Bernie ?????
Posted by: We need help now | May 21, 2021 3:36:39 PM
Most of these "bank" advisors are crooks and don't give a pinch of you what about your investments.They are just sucking up the fees,bottom loads ,top loads,management costs,etc.Bunch of crap.They always tell everyone to save,save,save.It would be easy if we all were bankers and made $500,000.00 p/yr. to have anything left over to save.The other commentators are right....don't trust insurance either unless you read every single word in the contract or they will take you for a ride too!!!!
Posted by: Jozef Spakowski | May 21, 2021 4:24:00 PM
When RBC Bankers stool more money from more people the Bank transfer them to not just to other location in the city but to other province. It happened to me with RBC Manager Mr. Harbinger in Calgary. He said to me he will help and cancel the Portfolio, but he didn't and we lost another $ 1000 on top of previous $ 6000. When he said he will help it was his last 1 hour of employment in Calgary. He was appointed to higher position in BC and hi didn't told me about that. So many crooks in one place and can we Invest in this environment ???