The financial marketplace is continually introducing new products and strategies to help the client but, ultimately, it is making clients feel more uncomfortable or even paralyzed. The confusion is so great that they must rely on a financial expert to do the work – if they even get that far. In order to do well, clients have to really trust the expert they are using or be knowledgeable and engaged themselves.

Outside of the traditional ‘investment advisor’ or ‘financial planner’ role, ‘financial coaching’ has emerged over the past ten years and has taken on the task of helping Canadians navigate through the world of finances. The idea and its use has picked up since the government initiated a financial literacy task force in 2009 to ensure Canadians could make informed financial decisions for themselves. This new type of financial service will help increase a person’s ability to own a home, retire comfortably or help their child attend postsecondary school.

The services provided range from budgeting, debt management and asset allocation to planning for retirement.

The need for financial coaching services is great, given the current household debt income ratio is 163.4% (Stats Canada, 2013).  To understand what this means, in 1980 the ratio was about 66% in Canada and when the housing bubble burst in the U.S. the ratio there was about 163% (TD, 2013).

Canadians that are holding debt and assets could be in serious trouble if interest rates rise, or employment declines.

I am here if you have any questions or would like to learn how to best save and manage your money.

Shannon