TORONTO, Dec. 11, 2013 /CNW/ - A national study of Canadians with more than $100,000.00 in investable assets shows that worries over health-care needs have emerged as the second most-important driver, behind retirement itself, of their investment planning.
Among investors under 50, 34% identify health care as a priority compared to the average of 46% of all respondents, but even among this younger group, health care needs emerge as a significant rationale for investments. Even among respondents with $1 million+ in investable assets, 41% identify "health-care needs" as an important investment objective.
The independent study was commissioned by Dundee Goodman Private Wealth and conducted by The Strategic Counsel between September 20th and 27th. It surveyed 311 individuals selected on the basis of their investable assets, excluding real estate, and carries a margin of error of plus or minus 5.6% 19 times out of 20.
"The findings around health care were a surprise" stated John Cucchiella, Senior Vice President and Head of Retail at Dundee Goodman Private Wealth. "We thought that priorities like travel and leaving a legacy for kids or charities would be top of mind. I think the wealth management industry in Canada may be a bit out of touch with their clients. This was definitely an eye opening experience for us."
The findings indicate that, with the boomer retirement wave about to crest, many Canadians are concerned about the financial challenges that arise from an aging population and rising life expectancy in the developed world. Health care costs increase dramatically as populations age, and many Canadians are well aware of this fact through their experience with the needs of elderly parents.
"Immediacy crystalizes priorities" observed Christopher Kelly, the Strategic Counsel Partner who designed and directed the survey. "We are all having to think realistically about what we'll need in order to get by when we stop working, and I expect that health care costs will become a priority for a growing number of us for the foreseeable future."
The survey indicates that:
- the Investment Advisor (IA) emerges as the most important professional that respondents deal with,
- planning tools (including financial plans, investment plans and investment policy statements) are important to a substantial majority of all respondents. They attach significant importance to these tools and to reviews of them at least annually,
- respondents who have a relationship with an independent, non-bank firm tend to be more confident in their IAs than those with bank-owned relationships,
- respondents identify poor performance of IAs or poor performance of their portfolios as among the most common reasons for switching investment firms,
- half (50%) of the respondents report that they selected their IAs or PMs based on a referral from friends, family members or colleagues (39%) OR through business referrals (11%), and
- the research data reveal that the majority of respondents attach importance to dealing with an investment firm that offers proprietary products. But the qualitative research reveals some skepticism among respondents about such products because they are deemed to be more advantageous to the firms.
The study findings also indicate that there is a need for Canadian investors at all levels to better understand their options, and that this creates an opportunity for the large, medium-sized and small firms serving them.
With more than 20 years in the retail investment advisory business, Dundee Goodman Private Wealth is home to Portfolio Managers and Investment Advisors who deliver expert advice to clients who have accumulated enough savings and investments to appreciate and value the help of an expert.
Dundee Goodman Private Wealth is a division of Dundee Securities Ltd., a member of the Investment Industry Regulatory Organization of Canada and of the Canadian Investor Protection Fund. Dundee Securities Ltd. Is a wholly-owned subsidiary of Dundee Corporation (TSX: DC.A, DC.PR.B, DC.PR.C) a publicly traded global asset management company.
SOURCE: Dundee Goodman Private Wealth
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