What You Don't Know Could Cost You

The age old saying, 'Ignorance is bliss', may apply to many things in life. However, when it comes to your finances, ignorance can be absolutely devastating. Even the government is calling the startling low rate of financial literacy among Canadians an epidemic that can have catastrophic consequences for the nation's economic future.

A lack of knowledge on even the most basic financial matters has already led to a cascade of calamities that will have a far-reaching and long lasting affect on all of us. Among them:

  • It is reported that over 50% of all Baby Boomers are financially ill-prepared for retirement. *
  • Families left destitute because of inadequate life insurance on primary income earners.
  • Families uncertain about how to pay for the high cost of post-secondary education. **

Most of these people didn't plan to fail; the problem is that they simply failed to plan adequately. While 30 years ago it may have been enough to just save religiously, the economy and the financial markets have since become much more complex, volatile and uncertain. And, when you consider all of the moving parts of a family's personal financial situation, each affected differently by various economic currents, you can no longer just set it and forget when it comes to your finances.

Financial Literacy Begins with You

Understanding the financial world begins right at home with your own personal financial situation. Most of the people who fail out of ignorance probably did not have clearly defined financial goals. Without a vision for the future, there's little to motivate a person to learn and achieve. Establishing goals and then mapping out a plan to achieve them will force you to learn about your options and understand the possible obstacles. Many people have found it useful to have a qualified financial advisor guide them through this very important process.

Most people are unaware of many of the financial realities they face. For instance, while most people may realize that we are all living longer these days, they don't really know what that means in terms of their financial needs. A 35 year old male today, could expect to live until age 87. That translates into as many as 25 years in retirement on income sources that he must create.

Ignorance is Costly

The road to financial success is full of roadblocks, the biggest of which is poor budgeting habits. A shocking number of people don't budget, and, as a result most of them are swimming in debt, have little or no savings, and are just a pay cheque away from financial disaster. While this can be attributed to laziness, or lack of discipline, the fact is that most people don't understand the true cost of debt and the time value of money. If a young couple could budget to save just $500 a month for 35 years with an average return of 5%, they would accumulate nearly $600,000. When you have control of your finances, and have your priorities straight, saving $500 each month isn't very difficult.

Time is a very valuable, but diminishing resource that should not be wasted. The more quickly you can put your money to work for you, the longer it will have the magic of compounding interest working for it.


* Are We in a Baby Boomer Retirement Crisis? - Investopedia (2019)


** Education Savings - Government of Canada (2019)


Questions about Your Financial Strategy?
Contact our office!

Copyright © 2019 AdvisorNet Communications Inc. All rights reserved. This article is provided for informational purposes only and is based on the perspectives and opinions of the owners and writers only. The information provided is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of the AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

What our clients are saying...

  • Anthony made the process very clear and explained each step along the way. He was very honest and straight forward. My expectation from a financial planner is that they are honest and transparent. Anthony definitely met my expectations and I would be happy to recommend him to my family and friends.

  • When working with a financial planner our expectations are to maximize our investments and have a solid plan for retirement. We now have a greater awareness of our current portfolio and options to best protect our estate. We were provided with good information to use in order to make better investment and estate planning decisions. We would gladly recommend Anthony to our family and friends.

  • We value the personal service and detailed explanations we receive from Anthony on an ongoing basis. We feel comfortable recommending Anthony to our family and friends as he is someone who we can trust and has our best interests in mind. He has been great at helping us work towards a comfortable and manageable retirement.

  • The financial planning process we went through was clearly outlined and explained to me. I wanted to have a better understanding of my financial position and to know whether I could retire early or not.

    I am happy to recommend Anthony to my family and friends.

  • We valued having more options and new strategies in managing our finances up until retirement. Our expectations when working with a financial planner is to have someone who is very knowledgeable with investments and to work with someone who has the time to meet with us for intelligent discussions and provide alternatives for us to consider. Anthony definitely more then exceeded our expectations and we would be happy to recommend him to our family and friends.

  • We appreciate Anthony’s efficiency, his friendly demeanour and ability to listen to our concerns. We value his honesty and willingness to adhere to our wishes, with an understanding of possible implications and his commitment to explain any negative consequences accordingly. Anthony searched out new life insurance coverage as part of our estate planning. He was thorough and communicated each step in the process to us in a timely manner. We wanted someone who thoroughly understands the financial markets and can explain them in a comprehensible manner. We wanted to work with someone who can respond readily to our needs and who can provide proper advice. Anthony delivered on what he promised and definitely met our expectations. We would absolutely recommend Anthony to our family and friends.