Many Canadians regret financial choices

You may not want your grandparents’ advice on choosing your next smart phone, but when it comes to creating a financial strategy, a new poll from Edward Jones suggests we should listen to our elders.

According to the poll, almost 80% of Canadians over age 65 say they’re satisfied with the financial decisions they’ve made in life, compared to 65% of those under 44.

Read: Money a bigger concern to Canadians than love

However, when asked if they would make changes to the financial decisions they’ve made if they could go back in time, 82% of Canadians under 44 would hit the reset button compared to 61% of those ages 65 and over.

“This research suggests most of us still have financial regrets,” says Patrick French, director, financial and retirement planning with Edward Jones. “Younger generations won’t have the same level of financial security through defined benefit plans as older generations, so it’s even more important to have a solid financial strategy in place to save and invest for the long-term.”

Read: Faceoff: Saving for retirement If Canadians could go back in time and start their careers again, what would they do differently?

• Save more for long-term goals (56% vs. 47% among seniors)
• Pay off debt faster (30% vs. 26% among seniors)
• Build an emergency fund (30% vs. 22% among seniors)

Read: Four in ten Canadians aren’t retiring when they want

Here are some tips to help.

• Build a budget. Have clients calculate monthly fixed costs and prioritize their goals for the next five, 10, 25 years and beyond. Do they want to travel, buy a house or retire at 60? Maybe they want to do all three. Assess what they could reduce from their day-to-day expenses to save more for long-term goals.
• Pay yourself first. Plan for a certain amount of money to go into savings each month. Pay off debt first, and then start to build emergency and long-term goals funds. If they’re just starting to work, begin saving by putting $50 a month into savings and increase that amount as they build their careers.
• Build, review and rebalance savings. Depending on their goals, recommend a strategy that is tailored to their risk tolerances, which consists of investments like mutual funds, stocks and/or bonds, designed to help their money grow.

Read: Canadian poverty measurements flawed

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.