The power of good advice

I recently read an excellent piece in the Harvard Business Review about why people find it so hard to ask for help in both their personal and professional lives. The author lists many reasons for this—trust issues, not liking to feel vulnerable, an inherent desire to be self-reliant, etc.—before offering a rationale on why it’s always a mistake to go it alone.???

I found this article fascinating as I’ve never been shy to ask for help myself. Everything in my life, I do through advice. When I buy a car, I use a broker to find the right vehicle for my family’s needs. If my wife and I remodel our kitchen, we bring in interior design and renovation experts to develop a plan and follow through. I even hired a personal trainer to advise me on a six-month nutrition, exercise and sleep program.

While some may view all this advice as an extra expense, I see it as a way to stay on track and achieve my goals. If I’m not an expert in a certain area, I want the peace of mind that comes with knowing someone has my back.

Nowhere is the value of good advice more critical than in personal finance. I believe the tailored, highly-attuned guidance that only an experienced and qualified professional can offer is the surest path to long-term wealth creation for the majority of Canadian investors.???

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The value of human advice??

According to a 2020 study, advisors who deliver comprehensive wealth management add as much as 2.88% more value to clients’ portfolios than if those investors were to manage their portfolios alone. One reason cited for this was how advisors help investors avoid behavioural mistakes, especially during times of market distress. The process of building wealth can naturally lead to charged emotions, and it is the human advisor who better understands the ebbs and flows of the market and is best equipped to steer clients away from making impulsive decisions.???

In another recent study, human advisors delivered higher returns on investment than robo-advisors, every time. Unlike digital alternatives, advisors can offer truly holistic wealth planning advice, covering topics such as asset protection, income planning, tax minimization, multigenerational wealth transfer, etc. Digital platforms also lack the empathy and trusted guidance a seasoned advisor provides. Without that, digital advice will always come up short, regardless of your age cohort.???

That’s not to say there’s no role for technology and digital solutions in our business. According to the J.D. Power Canada 2022 Full-Service Investor Satisfaction Study, client satisfaction is highest when “investors experience a mix of human and digital interaction.” So, we’ve made significant investments in tools, applications and platform infrastructure designed to improve back-end processes, provide clients with real-time access to financial performance, and enhance both the advisor and client experience.?

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The value of unbiased advice??

In staunch contrast to corporate models, iA Wealth platforms provide advisors the freedom to build their businesses as they see fit. Beholden to no one, with every decision their own, they can offer a personalized approach tailored to the individual client’s unique life situation and financial needs. That starts with listening, asking the right questions and having those difficult conversations.?

Canadians need help achieving their financial dreams, and our advisors take this objective seriously. They have an intimate understanding of the complexity of their client’s family structure, life situation, and values. They’re able to offer the most informed and unbiased advice and solutions in the industry. And they’re around for the long haul, at their clients’ side every step of the way, making sure they stay on track to reach their financial goals.???

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The strength of the iA Wealth model boils down to the power of good human advice and the long-term relationships that blossom between our advisors and clients as a result.??