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Post-pandemic to-do: Why in-person financial advice tops the list
More Canadians are eager to see their advisor in-person than attend a concert, sporting event or visit a buffet restaurant, according to new TD survey
TORONTO, June 17, 2021 /CNW/ - As Canadians grappled with financial instability during the COVID-19 pandemic, the need for investment advice swelled to new levels, according to a survey commissioned by TD. While Canadian investors have long relied on advisors, that trusted relationship may be more critical than ever as Canadians, businesses and the economy begin the road to recovery.
The 2021 TD Survey, which surveyed 2,508 Canadians about the impacts of COVID-19 on their finances, found that during the pandemic nearly half (48 per cent) of the respondents said they use their advisor as their main source of investment information, and nearly one-third (29 per cent) of respondents cited their advisor as the most trusted source for investing information. In fact, the Canadian client-advisor relationship can be viewed as so powerful that more than half of respondents, regardless of income, said they would rather resume in-person meetings with their advisor, than go to a concert, sporting event or buffet restaurant when the pandemic end or public health measures allow.
"The survey findings suggest that Canadians may value financial advice now more than ever, given the strain the pandemic has had on all of us, whether emotionally or from a health or financial wellness perspective," said Paul Clark, EVP, TD Bank Group & Head of Private Wealth Management and Financial Planning. "Over the past year, the conversations advisors have been having with clients are the ones they will remember long after this is over. And what we've heard from clients more and more is they're feeling more confident and reassured, while our advisors tell us they've never felt more equipped and ready support clients through life's ups and downs."
Key findings from the 2021 TD Survey include:
- Six-in-10 (61 per cent) of respondents left their investments alone in 2020, with high-net-worth individuals* more likely to be a part of that group than less affluent respondents.
- Seven-in-10 (69 per cent) high-net-worth respondents did not change their investment strategy during COVID, preferring to "ride the storm".
- For advice on achieving their investment objectives, seven-in-10 respondents preferred to invest through an advisor, while one-quarter preferred to invest themselves.
- Three-in-10 (32 per cent) high-net-worth respondents were more likely to use a mix of both their advisor and independent research for investment information, compared to 20 per cent of less affluent respondents.
- Three-in-10 (30 per cent) high-net-worth respondents were more likely to talk to their advisor at least monthly, compared to 19 per cent of less affluent respondents.
When compared to results of a similar TD survey conducted in 2019, the results reveal that, despite external factors, most Canadian respondents choose to "ride the storm" when it comes to volatility in the stock market. In 2019, among respondents who invest, nearly half (47 per cent) said they choose to keep their investments during times of volatility. Those 2019 respondents who had an advisor were more likely to stick to their wealth plans than those without, the survey also found.
The 2021 results also emphasized how the COVID-19 pandemic likely drove heightened emotions among Canadian investors:
- Despite the information they receive, more than a quarter (27 per cent) of respondents believed they make poor investment decisions at least sometimes, with the main reason being their emotions and worries getting in the way.
- Nearly half (45 per cent) of respondents said that protecting their assets and health is what matters most to them, while three-in-10 (28 per cent) wanted to build net worth.
The new survey supports TD Wealth's efforts to help meet an anticipated increase in demand for personalized financial guidance in 2021 and 2022. TD Wealth offers holistic financial services to help Canadians build net worth, implement tax-efficient strategies, protect what matters, and leave a legacy. More than simply investing advice, TD Wealth advisors are dedicated to helping Canadians along their journey to reaching their financial goals. To learn more about working speaking with an advisor visit td.com/ca/en/investing/wealth.
For the purposes of the 2021 TD Survey, high-net-worth individuals were defined as having at least $1 million in assets, excluding a mortgage.
About the 2021 TD Survey
TD Bank Group commissioned Leger to conduct an online survey of 2,508 Canadians, weighted by age, gender, region and income, using Leger's online panel. Responses were collected between March 7 and 17, 2021. The margin of error for this survey was ±2.0%, 19 times out of 20.
About the 2019 TD Survey
TD Bank Group commissioned Leger to conduct an online survey of 1,500 Canadians, weighted by age, gender, region and income, using Leger's online panel. Responses were collected between March 20 and 27, 2019. The margin of error for this survey was +/-2.5%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the fifth largest bank in North America by assets and serves over 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.7 trillion in assets on April 30, 2021. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group
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