Park Place Financial
The Power of a Retirement Plan
Studies Shows Professional Advice Matters
by Greg Brown
Most people who work in this industry are drawn to it for one of two reasons:
1. They’ve seen the benefits that come with having a solid financial plan in place, or
2. They’ve witnessed the negative outcomes that can happen from not having a plan.
It’s easy to realize the impact and rewards that can come from this line of work.
Unfortunately, it was the negative impacts that drew me in. To make a long story short, I sadly lost my mom after an 8-year battle with cancer in her late 40's. Years later, I lost my dad to his second heart attack six months after he retired. Helping with dad's estate was eye opening, especially the financial side of things.
He worked hard all his life and had just retired with no work pension; basic government supports had just kicked in - Canada Pension Plan (CPP) and Old Age Security (OAS) - plus he had a small amount of savings in his personal RRSP.
Like most children, I was never involved in my parents' finances but at that moment it became apparent that somewhere along the way my parent's retirement plan had become a “let's survive today and figure out tomorrow when we get there.” Which is basically not a plan.
Personal illness and extended time away from work for both of them had an impact. Dad found himself facing a retirement lifestyle that was likely a far cry from what he and mom may have once envisioned.
HOW TO BALANCE A HAPPY FUTURE WITH A HAPPY PRESENT
Few people get excited about buying insurance and making monthly payments. And no one likes the idea of taking money from our current self to invest in our future self’s lifestyle. We all experience FOMO (the fear of missing out), but when the planning process is done right, with someone you trust, these things become more than just monthly payments.
Financial plans become helpful tools for realizing the life you want, even for the not-so-distant future, like splurging occasionally, travelling more and buying your dream home. Or down the road, enabling children to get a good education and making sure you and your family are protected and plans stay on track when health fails.
We put our trust in experts for many things in our lives: doctors, accountants, real estate agents and mechanics, to name a few. Financial advice shouldn’t be any different.
FINANCIAL ADVISORS INCREASE ROI
In fact, many studies in recent years offer concrete statistics showing the value provided by a good financial advisor.
The studies surveyed Canadians across the country about their relationship with money and savings habits. The results speak for themselves:
Households who worked with an advisor were almost twice as likely to travel regularly, splurge occasionally and generally feel "on track" when compared to non-advised households that were otherwise identical. This survey went on to show that those working with an advisor also saved more. In as little as four to six years, advisor-assisted families saved, on average, 1.58 times more than those not receiving advice. That number jumped to 2.73 times with 15+ years of advice.*
TURN DREAMS INTO ATTAINABLE GOALS
Think about that. What would you do with almost three times more money saved 15 years from now? I have asked this question many times to people of all ages and here are just some of the answers I have received:
“Buy my forever home.”
“Travel more. Much more!” “Ensure my kids get a great education.” “Retire early.” “Buy a vacation property.” “Live a better lifestyle in retirement.” “Ensure my spouse doesn’t have to work as hard.” “Spoil my grandchildren.”
Rarely do we dream like this but when we do, we can begin to understand the power of a plan. Isn't that a relationship with money we all should strive for and not just dream about? ~
* Further reading:
Centre for Interuniversity Research and Analysis of Organizations (CIRANO), The Gamma Factor and the Value of Financial Advice, 2016 and updated abstract, 2019.
Investment Funds Institute of Canada, The Value of Advice, 2012
Park Place Financial
Greg joined Park Place Financial as the first Investment Representatives when they moved into the Kingston market in 2021. Having worked in finance since 2015, as a Director at Freedom 55, Greg had many years of experience leading a team of advisors to develop their skills and business growth. He was excited to be a part of the founding Park Place team in the region as he could see how the companies values aligned with his own in approaching everything with excellence.
Greg has long had a passion for financial planning, as his own life experiences have clearly demonstrated to him the need for a proper and thorough financial plan. He believes that while health is your number one priority, you also need to apply that same importance on financial wellness to ensure a strong and sustainable future.
Originally from Listowel, Greg studied Kinesiology at Western, graduating in 1999. Shortly after he and his wife relocated to Kingston and have called it home since. He is very involved in the community having volunteered as head coach for his son’s hockey team and is also a patient experience advisor at the Regional Cancer Centre of Eastern Ontario and Board Committees of Kingston Health Sciences Centre, where he works to improve patient experience.
CONTACT ME 613-331-1870
Founded in 2012, by Mike D’Alessandro and Darrell Wade, Park Place Financial grew quickly to become one of Central and Eastern Ontario’s top wealth and estate planning firms. Its mission, to be known for excellence in helping grow and preserve the wealth accumulated by family business owners and entrepreneurs across multiple generations. In 2018, Terry Windrem Insurance Agencies joined Park Place Financial, firmly positioning the business as an industry leader in wealth and risk management.