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