We all want trusted financial advice; however, finding it isn’t always easy.
I started Savvy Saver Solutions because I myself have encountered the challenge of trying to find trusted financial advice. I want to share my knowledge and experience to help you, my readers, understand your financial situation and guide you towards achieving your goals and financial independence.
A popular choice for financial advice is to go to your local financial institution and speak with an advisor.
Having both worked in the industry and been a financial planning client at a financial institution, I have come to the conclusion that this option isn’t always the most trusted solution. Below are my reasons to support my conclusion.
Are Financial Institutions a Trusted Source?
In March 2017, it was revealed by Go Public that TD bank tellers would do anything they could to meet their sales goal. The result is that customers pay the price for ‘unrealistic’ sales targets; one teller revealed, “Customers are prey to me. I will do anything I can to make my [sales] goal.”
Advisors and planners at financial institutions have sales quotas to meet, in which their jobs and bonuses depend on. As illustrated above, even bank tellers have quotas. Now, put yourself in their shoes – if you are pressured to make sales to keep your job, would you really have your client’s best interest in mind?
If that is the culture that can be expected from Canadian financial institutions, are you really in the position to be getting the best advice?
A few years ago I was approached by a planner at a financial institution to come in for a ‘free’ financial plan. Being naïve, I was excited and jumped at the opportunity. However, after going through the experience, I realized that it wasn’t really a ‘free’ plan. In fact, what I received didn’t meet my criteria of a financial plan and was more a snapshot of my current position rather than forward looking. I was simply sold products to help ‘meet’ my goals without quantifying or showing me how my goals would be met.
After educating myself and going through the initial courses in financial planning, I know that a financial plan entails more than what I was provided.
Now don’t get me wrong, I do enjoy working with my planner – but it is because I have educated myself and understand my financial position and don’t necessarily need anyone’s guidance to make my financial decisions. I am at the point where I need someone to execute my strategies, not assist me in coming up with my plan.
However, what about those of you who don’t have this knowledge or proper assistance? All around me I see individuals who aren’t financially conscious and rely on the advisor at their local financial institution for trusted advice. They may not be getting the comprehensive advice they need to make a proactive plan catered to their needs as some employees at financial institutions are more concerned with selling rather than educating.
How does Savvy Saver Solutions fit in?
It is evident that a lot of individuals are not financially literate. Without this knowledge, poor financial decisions are made resulting in the misalignment of goals and habits.
Trusted financial advice can help us make sound financial decisions. Based on the sales motivations of employees at financial institutions, this may not be the most trusted option.
I enjoy helping others, which is why I started this blog. Hopefully through sharing my knowledge and experiences, I can empower you, my readers, to understand your financial situation and plan for future life events. I want to inspire action rather than manipulate you to act. I want to see you succeed and achieve your goals.
~ The Savvy Saver