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(October 9, 2007) Nearly half of all adults in Ontario — 46% — have not drawn up any kind of financial plan to save for retirement, according to a survey by investorED.ca. And that’s just the tip of the iceberg.

The survey also found that 58% of parents have no plan for funding their children’s education, and a staggering 88% have never had a financial plan to save for a home.

“The survey results are alarming,” says Tom Hamza, president of the Investor Education Fund, which developed the investorED.ca website. “Without a financial plan, people run the risk of spending too much today, while failing to consider their future needs.”

Among those survey respondents who used a financial advisor, 24% said they did not ask many questions, largely out of a lack of confidence or knowledge. Advisors need to recognize that a lack of questions does not always indicate understanding of a concept or product, and should ask their own questions to ensure the client understands.

“One of the first rules of investing is to never put your money in something you don’t understand,” says Hamza. “When their advisor recommends a certain strategy, investors need to understand it and how it fits their goals. They also need to track how their investments are doing, at least on an annual basis.”

The survey found that 13% of investors spoke to their advisor or broker about performance less than once a year, if at all.

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Western Financial buys two firms

(October 9, 2007) Western Financial Group has announced the acquisition of two additional firms in Alberta: Younger & Holmes in Peace River and Fimac Insurance in Fairview.

“Our agency network continues to expand in growing communities in Western Canada,” said Scott Tannas, president and CEO of Western Financial Group. “Both operations have strong market share in their respective communities.”

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RBC launches anti-scam website

(October 9, 2007) In an effort to educate Canadians on the perils of online scams, RBC has launched its Phishing Resource Centre online.

One of the most common scams on the Internet arrives via e-mail and appears to be legitimate correspondence from a bank. The e-mail will typically ask for the recipient’s account number and PIN, claiming some form of security investigation. When the user enters this information, it is forwarded to the scam artist, who may then clean out the account.

Despite the fact that all banks have repeatedly insisted they never ask for such information, there are still many people who fall victim. The Phishing Resource Centre includes tips for consumers to avoid becoming the next victim.

“Everyone needs to be more vigilant when conducting business via the web, and through education and awareness, people can take simple steps to protect themselves against online threats,” said Jim O’Donnell, senior vice-president and chief information security officer, RBC.

(10/09/07)