Do You Think a Financial Advisor Will Care About Your Health?

As Mississauga has adopted a Healthy City initiative, residents of Mississauga and other GTA communities tend to focus on the medical and social services that serve physical and mental health issues. The underlying issues of financial security or poverty are rarely mentioned in a discussion about health and well-being, although there is a direct correlation between them. More and more, people will have to depend on their private wealth in retirement years, and there is a very real risk that many people will not be financially self-sufficient in old age. What is the solution?

Janet Baccarani and Jennifer Black of Dedicated Financial Solutions, a team of Financial Advisors and Certified Financial Planners with Manulife Securities Incorporated and Manulife Securities Insurance Inc., were asked about building private wealth and asset management through their business in Mississauga. They shared their thoughts and ideas in response to the following questions:

Q: What kind of financial problems to you think we can anticipate people will have in future years, and how can we prevent them?

A: Younger generations are not saving as much. In fact, they are spending a lot more. This impact of this trend is going to be felt many years down the road, when these individuals want to retire. Every day, we strive to help young people learn about managing and saving money, and to start planning at an earlier age.

Q: How can financial planning contribute to the Healthy Cities initiative that is being embraced by the City of Mississauga?

A: First it needs to be understood and accepted that financial well-being is both directly and indirectly linked to a community’s overall health. There is sufficient data available to indicate the connection between finances and poverty to physical, mental, and emotional well-being, as well as social issues like crime, which also impact the health of a community. Personal finance is not widely taught as a subject in our schools, but it would really help if young people understood the basics and the need to manage their finances earlier in life. The sooner they have a financial plan in place, the more empowered they will feel, and the more confident they can be in their own future. Every day, financial advisors face the challenge of reaching people and getting the message out. Without the educational foundation that is needed, financial advisors must help individuals learn the fundamentals, to take control their finances, and to apply the best strategies available for reaching their financial goals.

Q: What can you, as an independent financial advisor, do to promote the idea that financial security is a major contributor to overall health and well-being?

A: Every time we approach a prospective client, our focus is on creating wealth for a secure financial future. Part of our message is that financial security will alleviate stress and provide peace of mind, but perhaps we could strengthen the message about the connection between finances and health. We don’t speak for the financial industry or for the community on a broader platform, and maybe the message would be more influential coming from those business and community leaders. The reality is that our private financial planning business helps individuals one at a time to take control of their finances. The earlier in life that an individual starts planning and working towards their goals, the more likely that they will be financially independent in their retirement. By successfully helping one individual, there will be one less person who will need financial and social assistance from varying levels of government. We work at the most fundamental, grassroots level, where our success leads to more business and people being referred to us as potential clients.

Q: Are you still optimistic that people can save and invest to create wealth, or have those days now passed us by?

A: There are always opportunities out there. In helping individuals to find those opportunities every day, it is clear to us that we are currently presented with one of the best opportunities we will ever see. People who can overcome their fear of buying into an uncertain market are usually the ones who come out ahead in the long run. They know that a down market offers low prices and a greater potential return. Unfortunately, many people hesitate and wait until the market has already recovered, chasing the returns, buying high and selling low over and over again. It’s a difficult habit to break.

Q: What are the primary financial concerns for Mississauga and GTA residents when it comes to retirement planning, asset management and wealth creation?

A: When it comes to retirement planning, Mississauga and GTA residents should be concerned that the government social safety nets – the Canada Pension Plan and Old Age Security – will not provide them with a sufficient income to live comfortably when they retire. They should be concerned that inflation will eat up more of their available income. They should be concerned and motivated to find out exactly how much income they will actually need, and how they can possibly save that much money between now and retirement age. They should be concerned that they may have to scale back their expectations for retirement. In terms of asset management and wealth creation, it really matters if you get the right advice and follow the right examples. Look at successful investors and do what they did. We cannot stress enough the importance of having a financial plan. Consult a Financial Advisor and establish a plan that you can stick to even when times are hard. A Financial Advisor will also be able to help you identify and capitalize on the best opportunities when they occur – those times that the market prices are low and have the most potential to recover and create wealth over the long-term.

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About Dedicated Financial Solutions

Janet Baccarani, BSc, MBA, C.A., CFP, FMA, CSA, and Jennifer Black, BSEd, FMA, CSA, CFP, FCSI are Financial Advisors, operating as Dedicated Financial Solutions, a Canadian financial planning company with Manulife Securities Incorporated, a Manulife Financial company. The company provides financial planning services such as: wealth creation, money management, retirement planning, financial advice. Dedicated Financial Solutions also offers tax accounting services, specializing in the needs of Canadian investors, individuals and businesses. They can be reached at Manulife Securities Incorporated, 714 Burnhamthorpe Rd. East, Mississauga, Ontario, L4Y 2X3 Canada, by telephone at 905-896-8373, or by email at janet.baccarani@manulifesecurities.ca or jennifer.black@manulifesecurities.ca. If you’d like to learn more about Financial Planner Services by Dedicated Financial Solutions, or to schedule an interview with Janet Baccarani or Jennifer Black, visit their website today at: www.accesspw.com

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The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Incorporated.

Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The purchase of mutual funds using borrowed money (i.e. leverage) magnifies the gain or loss on the cash invested. Investors considering a leveraged purchase of mutual funds should be aware that a leveraged purchase involves greater risk than a purchase using personal cash resources only. The extent of that risk will vary depending on the circumstances of the investor and the type of mutual fund purchased. If you borrow money to purchase mutual funds, your responsibility to repay the loan and pay interest as required by the loan’s terms remains the same even if the value of the mutual funds purchased declines. Before investing, read the prospectus and speak to a financial advisor.

Manulife Securities Incorporated is registered as an Investment Dealer, or its equivalent, with the provincial securities commissions and as such our Advisors are entitled to sell mutual funds, stocks, bonds and other securities as permitted under our registration. They may also be able to provide other services or products to you through their own business. As a member of the Investment Industry Regulatory Organization of Canada (“IIROC”), Manulife Securities Incorporated is obligated to disclose to you that you may be dealing with companies other than Manulife Securities Incorporated when purchasing services or products from your Associate (remuneration to your Associate may also come from various sources depending on the services or products purchased). For example, your Associate may offer any one or more of the following through a separate business, which would not be the responsibility of Manulife Securities Incorporated: * Income Tax Preparation; * Insurance: Life, Accident, Sickness, Disability, General. Please be sure that you have a clear understanding of which company you are dealing with for each of your services and products. Your Associate would be happy to provide any clarification you require.

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