MONTREAL, Feb. 11, 2014 /CNW Telbec/ - According to a CROP poll1 conducted for Laurentian Bank, more than a third of all Québecers
consider the management of personal finances to be a difficult task.
This situation can lead to a lot of stress during the RRSP season,
particularly among those who feel they don't have sufficient means to
save. Moreover, the repayment of debt also constitutes a major concern
for 42% of Québecers.
Saving for retirement can indeed be difficult, especially for those
preoccupied with reimbursing money owed. To make matters worse, the
resulting stress can have serious repercussions on physical health.
Generally speaking, people tend to make use of the necessary tools to
take care of their physical well-being. However, this is not always the
case when it comes to their financial health, as evidenced by the
survey findings below:
-
72% of respondents indicated that they regularly consult their family
doctor
-
40% of respondents rely on the expertise of financial professionals
-
39% of respondents who don't consult a financial advisor consider it to
be hard to manage their personal finances
Just as the family physician does with respect to physical health, the
financial advisor can establish a realistic and overall review of one's
financial health and propose a series of concrete solutions. "Meeting
with a financial advisor once a year is sufficient to develop a savings
plan or strategy for repaying debts," underlines Guylaine Dufresne,
F.P., Senior Manager of Investment and Financial Planning.
"Furthermore, conducting a review of one's financial situation can help
reduce stress. The financial advisor brings an outsider's view to the
situation and can allow savers to identify solutions they may not
otherwise have seen on their own." Laurentian Bank's expert financial
advisors are accessible via the institution's extensive network of 153
branches across Québec and are trained in finding solutions suited to
the specific needs of each individual.
According to Guylaine Dufresne, there are three fundamental strategies
that everyone can apply to optimize their saving and, thus, reduce the
stress that can be associated with managing personal finances.
1. Knowing one's net worth
Calculating one's assets and subtracting all liabilities provides for an
accurate picture of one's net worth or estate value," she explains. "It
is important to complete this exercise at least once a year to
determine how one's financial situation is evolving. By doing this
analysis with an advisor, an effective strategy can be found to help
grow net worth more rapidly."
2. Establish a realistic budget
"The basis for managing personal finances is knowing one's income and
cost of living," emphasizes Ms. Dufresne. By establishing a budget that
takes all expenses into account, it becomes easier to determine one's
saving capacity. "People don't hesitate to save for such things as the
purchase of a home or a future trip. They should do the same for their
retirement."
3. Have the means to save
Systematic saving remains one of the best ways to have money set aside
for one's golden years. In that regard, by regularly debiting a
specific amount from one's account, it is easier to make a habit out of
saving. Moreover, for those who don't have enough money put aside to
invest, or who wish to take advantage of unused contributions, it could
be advantageous to take out an RRSP loan or draw on an RRSP line of
credit.
"There is no single answer that is ideal for everyone," concludes
Guylaine Dufresne, "and with the multitude of financial products
available, it can be hard to determine the best solution. A financial
advisor can help savers see more clearly and gain an accurate picture
of their situation to be able to make more informed financial choices."
About Laurentian Bank
Laurentian Bank of Canada is a banking institution whose activities
extend across Canada. Recognized for its excellent service, proximity
and simplicity, the Bank serves one and a half million clients
throughout the country. Founded in 1846, it employs some 4,000 people
whose talent and dedication has made it a major player in numerous
market segments. The institution has $34 billion in balance sheet
assets and more than $37 billion in assets under administration.
Laurentian Bank distinguishes itself through the excellence of its
execution and its agility. Catering to the needs of retail clients via
its extensive branch network and constantly evolving virtual offerings,
the Bank has also earned a solid reputation among SMEs, larger
businesses and real estate developers thanks to its growing presence
across Canada and its specialized teams in Ontario, Québec, Alberta and
British Columbia. For its part, the organization's B2B Bank subsidiary
is a Canadian leader in providing banking and investment products and
services to financial advisors and brokers, while Laurentian Bank
Securities is an integrated broker that is also widely known for its
expert and effective services nationwide.
___________________________________
1 The survey was conducted by CROP between December 9 and 13, 2013 among
a Web panel of 1,000 Québecers.
SOURCE Laurentian Bank of Canada
