How to manage the risks of being a financial planner
- by admin
Financial planners face a number of different risks that can make it more difficult to manage your money, according to a new study.
And while they can help, they also face significant personal risks, such as anxiety about being seen as too busy or overly stressed, says a new report from the University of Calgary.
The study is the latest in a series of reports from the Centre for Applied Financial Planning and the University that explore the risks and rewards of financial planning.
The Centre for Financial Planning, which was launched by the Alberta government in 2012, is funded by a provincial government and is run by former Ontario finance minister Mike de Jong.
While the financial planning profession has historically been seen as a male-dominated field, the new study suggests it is not the only field where women may have greater financial challenges.
The report says there are several key issues facing financial planners today, including rising unemployment and rising health-care costs.
According to the report, the economic recovery is outpacing the rate of growth in the employment rate, with only 15 per cent of respondents saying the labour market is improving and 40 per cent saying it is worsening.
It says the economy is growing more slowly than the labour force participation rate, which is at 66.4 per cent, which means more people are working but not working as much full time.
About one in three people who were not in the labour or school-based labour force are in the workforce, according the report.
The economic recovery may not be slowing, however, because many of those in the jobless force are now eligible for public assistance, which helps pay for their benefits.
The recession has had a dramatic impact on the number of people who are unemployed, with the number going into public assistance at a record rate in the third quarter of 2016, the report said.
The number of employed people has fallen by 6.2 million people since the end of the recession, while the number who are not in work fell by 4.9 million, according a Statistics Canada report released last week.
The Canadian Federation of Independent Business and the Canadian Federation for Independent Schools also reported that the number participating in jobless benefits dropped by nearly 9 per cent in the fourth quarter of the year, but those benefits remain lower than they were in the first quarter of 2017.
According a report from Bank of America Merrill Lynch, a significant part of the unemployment benefits program is paid for by the provinces.
The Federal government has been trying to make unemployment benefits more sustainable, including a new $5-per-week minimum wage, and the federal government has made a commitment to boost employment in the economy by at least 2 per cent per year over the next five years.
But the federal Liberal government also announced a $10-per of income tax for those earning $150,000 per year, a $1-per hour increase in the minimum wage and an increase in childcare tax credits.
That includes a $2-per child-care benefit for single parents, and a $3-per day tax credit for parents with children under the age of six.
The Ontario government announced last week that it is reducing the minimum age for working spouses, to 21, and increasing the minimum income for working partners, to $150 a week from $100.
The Alberta government has also announced its plan to increase the minimum minimum age to 20 by 2019, but is also reducing the eligibility age to 24.
Both the Saskatchewan and Manitoba governments have announced increases in the eligibility ages, and Manitoba has increased its income-splitting threshold for single working couples to $100,000 from $80,000.
The federal Liberals have also announced the introduction of a universal basic income, with an age limit of 65, but the government has not set a date for the rollout.
The Canada Pension Plan, Canada Child Tax Benefit and the Ontario Disability Support Pension are also on the table for changes, according as well.
The government said in a news release that it has a plan to create a new Canada Pension Fund that will cover all retirees who work for at least 15 hours a week, and to increase benefits for people who do not work at all.
Financial planners face a number of different risks that can make it more difficult to manage your money, according to…
- Which of the big US financial companies can you get your hands on?
- What you need to know about APEX Financial’s new AMP-backed products
- Why you should be more invested in Haverdink
- Financial managers are more likely to take their own money
- How to Secure Financial Management Companies Without Going to Jail (PDF)