Financial Planning Month: Only One Québecer in Four Has an Effective Financial Plan in Place

MONTRÉAL, Oct. 22, 2015 /CNW Telbec/ - According to a survey* conducted for Laurentian Bank by the Léger polling firm, only 26% of Québecers have established a financial plan with the help of a professional in the field. Given that more than one third (36%) of the population does not have a written financial plan in place, Laurentian Bank would like to take advantage of Financial Planning Month to dispel some pervasive myths about the subject and motivate Québecers to get their financial affairs in order.

The Myth of Retirement

Many Québecers dream of enjoying a "golden" retirement, which is the main reason (46%) that incites them to develop a written financial plan with or without the help of a professional. The second most important motivator (31%) is home ownership. While these are long-term plans that demand a great deal of financial rigour, the rationale for the establishment of a financial plan should not only be driven by these two objectives.

Guylaine Dufresne, Senior Manager, Investment and Financial Planning at Laurentian Bank, refutes the prevailing myth of retirement. "Before thinking of one's golden years, there are many other stages in life that call for a clear look at our financial situation," she explains. "First employment income, a student loan, the birth of a first child, or building an estate are also factors that should inspire us to take our finances in hand in a structured manner."

The Myth of Wealth

The Léger study showed that people with household incomes of $100,000 and more are most likely (34%) to call upon a professional to establish a plan for their personal finances. At the same time, Québecers with household incomes of less than $40,000 were at the top of the list (44%) of those who indicated that they do not have a written plan in place.

Yet another myth to be debunked! "All Québecers, regardless of their income, are well advised to call upon the help of a professional in order to achieve their objectives," underlines Ms. Dufresne, who has been a financial planner for more than 10 years. "Professionals are best equipped to adapt different strategies to people's specific situations."

The Myth of "No Budget, No Plan"

Myths can be hard to break, particularly among those who do not have sufficient savings set aside. According to 41% of individuals, the primary reason that one third of Québecers do not have a financial plan in place is that their budget is too tight. This is especially the case for women, 50% of whom do not have a plan established.

And yet, an effectively prepared financial plan serves to provide people with a clearer understanding of their situation. "It's a total myth that people on tight budgets can't develop a plan," emphasizes Ms. Dufresne. "On the contrary, by taking things in hand and posing a few simple gestures, they will significantly improve their financial health." 

The Head in the Clouds Myth

Too many Québecers do not see the need to put their ideas down on paper. Of those who do not have a written plan, three out of ten (28%) indicated that their plan is in their head.

"A financial plan must be well thought out, carefully assessed, and most importantly, put on paper," affirms financial planning expert Guylaine Dufresne. "People who want to get into shape have a better chance to do so with the help of a trainer and personalized plan. The same principle applies to finances. With the support of an advisor and a carefully considered plan adapted to their specific needs, people put all the odds on their side to successfully achieve their objectives."

Laurentian Bank has its own team of expert advisors dedicated to providing their clients with personalized guidance and custom-tailored solutions.

*The Léger survey was conducted online between September 21 and September 23, 2015 among 1,034 Québecers aged 18 and over.

About Laurentian Bank
Laurentian Bank of Canada is a banking institution whose activities extend across Canada. The Bank serves one and a half million clients throughout the country and employs more than 3,700 people whose talent and dedication have made it a major player in numerous market segments. The Bank has more than $39 billion in balance sheet assets and $43 billion in assets under administration.

Laurentian Bank distinguishes itself through the excellence and simplicity of its services. The Bank caters to the needs of retail clients via its branch network and virtual offerings. The Bank has also earned a solid reputation among small and medium-sized enterprises and real estate developers thanks to its specialized teams across Canada, namely in Ontario, Québec, Alberta, British Columbia and Nova Scotia. For their part, B2B Bank is a Canadian leader in providing banking and investment products and services to financial advisors and brokers, while the expertise and effectiveness of Laurentian Bank Securities' integrated brokerage services are known nationwide.

SOURCE Laurentian Bank of Canada

Carine Salvi, External Communications Advisor, 514 284-4500, ext. 4695, [email protected]