The Value Proposition: Professional Financial Planning in a DIY World by Michael Moore, Sun Life Advisor In an age of readily available investment apps and online trading platforms, many Canadians are questioning whether they need a fee-based financial advisor. While the DIY approach may seem attractive due to its lower costs, the reality is that professional financial planning offers substantial value that extends far beyond basic investment management. Consider the complexity of modern financial life. Canadians must navigate retirement planning, tax efficiency, estate planning, insurance needs, and education savings – all while managing careers and families. Each of these areas requires specialized knowledge, and mistakes can be costly. A fee-based advisor brings comprehensive expertise to these interconnected challenges, providing integrated solutions that DIY investors might miss. The behavioural aspect of investing is the most compelling argument for professional guidance. During market volatility, DIY investors often make emotional decisions that harm their long- term returns. Research from Dalbar consistently shows that self- directed investors significantly underperform the market averages, largely due to poor timing decisions. A fee-based advisor serves as a behavioural coach, helping clients stick to their long-term strategy when emotions might otherwise drive poor choices. Tax planning represents another area where professional advice typically pays for itself. Many DIY investors focus solely on investment returns while overlooking tax efficiency. A skilled advisor can implement strategies like tax-loss harvesting, optimal asset location across accounts, and strategic withdrawal planning that can save clients thousands in taxes over time.
Critics often point to fees as a reason to avoid professional advice. While it is true that fee-based advisors typically charge 1-1.5% of assets annually, this cost should be viewed in the context of value received. Beyond investment management, clients gain access to comprehensive financial planning, estate planning guidance, insurance analysis, and ongoing professional support. When these services are purchased separately, they often cost more than an advisor’s bundled fee. The DIY approach can work well for individuals who have both the time and expertise to manage their financial affairs. However, as wealth grows and financial situations become more complex, the value of professional guidance typically outweighs the costs. Many successful DIY investors eventually reach a point where their time is better spent on their careers or families rather than managing their finances. For most Canadians, the choice between DIY and professional financial planning is not purely about cost – it is about optimizing outcomes. A fee-based advisor brings expertise, discipline, and comprehensive planning that can help clients achieve their goals more efficiently and with greater confidence. While the DIY approach might save money in the short term, the long-term value of professional financial planning often proves invaluable for those seeking to build and preserve wealth across generations.
Ages 18+
MORNING MAKERS
Page 12 Hometown St. Thomas • March 2025 *Advisors and their corporations conduct insurance business through Sun Life Financial Distributors (Canada) Inc. Mutual fund business is done with your advisor through Sun Life Financial Investment Services (Canada) Inc. Sun Life Assurance Company of Canada is the insurer and is a member of the Sun Life group of companies. © Sun Life Assurance Company of Canada, 2023. *Advisors and their corporations conduct insurance business through Sun Life Financial Distributors (Canada) Inc. Mutual fund business is done with your advisor through Sun Life Financial Investment Services (Canada) Inc. Sun Life Assurance Company of Canada is the insurer and is a member of the Sun Life group of companies. © Sun Life Assurance Company of Canada, 2023. *Advisors and their corporations conduct insurance business through Sun Life Financial Distributors (Canada) Inc. Mutual fund business is done with your advisor through Sun Life Financial Investment Services (Canada) Inc. Sun Life Assurance Company of Canada is the insurer and is a member of the Sun Life group of companies. © Sun Life Assurance Company of Canada, 2023. RRSPs/RRIFs • RESPs* • TFSAs RRSPs/RRIFs • RESPs* • TFSAs Advice from someone you trust. There are lots of reasons to save money for the future – and lots of ways I can help. RRSPs/RRIFs • RESPs* • TFSAs Advice from someone you trust. There are lots of reasons to save money for the future – and lots of ways I can help. Michael L. Moore* Advisor, Sun Life Tel: (519) 637-7747 michael.moore@sunlife.com Michael L. Moore* Advisor, Sun Life Tel: (519) 637-7747 michael.moore@sunlife.com Michael L. Moore* Advisor, Sun Life Tel: (519) 637-7747 michael.moore@sunlife.com Michael L. Moore* Advisor, Sun Life Tel: (519) 637-7747 michael.moore@sunlife.com RRSPs/RRIFs • RESPs* • TFSAs Advice from someone you trust. There are lots of reasons to save money for the future – and lots of ways I can help. Advice from someone you trust. There are lots of reasons to save money for the future – and lots of ways I can help. Advice from someone you trust. There are lots of reasons to save money for the future – and lots of ways I can help. RRSPs/RRIFs • RESPs* • TFSAs Your local Sun Life Advisor for 23 years and counting. Michael L. Moore* Advisor, Sun Life Tel: (519) 637-7747 michael.moore@sunlife.com
NEW Program at St. Thomas Public Library!
Join us to create with just your hands, eyes, brains, and spirit. We will explore skills like drawing, origami, simple pottery, anything goes! Come and learn or share a creative skill of your own with others.
Thursday, March 13, 27 10 - 11:30 a.m. Ingram Room, Lower Level No Registration Required
St. Thomas
Public Library
To advertise here, please contact Geoff@VillagerPublications.com
Made with FlippingBook - Online catalogs