News Releases

BMO Survey: More Than Half Of Canadians Don't Have A Combination Of Short And Long Term Investment Goals

Majority of Canadians lack combination of both short and long term investment goals
Less than half of Canadians feel that their investments could withstand another market downturn, yet 40 per cent of have done nothing to protect themselves
Those who consult a financial planner are more likely to feel that their current portfolio aligns with their investment goals

TORONTO, December 20, 2010 – BMO Bank of Montreal today announced the results of a survey revealing that, when it comes to managing their finances, more than half of Canadians (51 per cent) say they do not have both short and long term investment goals.

The study, conducted by Harris/Decima for BMO Financial Group, also indicated that the main barrier preventing Canadians from having investment goals is a lack of money (44 per cent).

“When it comes to investing, having an end goal in sight can make it easier to get started,” said Su McVey, Vice President, BMO Bank of Montreal. “It is important to get a clear financial picture of your situation, which can be accomplished by using the free tools and assistance available to help you. Once that is established, you can work with a financial advisor to begin building a plan that can help you to minimize the taxes you're paying on savings, protect your money within secure investments and focus on long-term goals, such as saving for your retirement.”
McVey added that BMO SmartSteps for Investing, a program designed to help make sense of savings and investing, provides a good starting point for Canadians looking for clarity and direction. BMO also offers great rates on Guaranteed Investment Certificates (GICs) and Tax Free Savings Accounts (TFSAs), as well as free online tools to help Canadians get a clear financial picture at www.bmo.com/smartinvesting.

The survey also found that the less than half (43 per cent) of respondents stated that their portfolio could withstand another downturn — with 40 per cent stating that they have not taken the steps to ensure their investments are protected.

“Canadians can help insulate themselves against market volatility by ensuring their investments are well diversified,” said Serge Pepin, Director, BMO Investments. “Having a balanced portfolio that is made up of different asset classes with varying degrees of risk will help protect your investments. Be sure to speak with a financial professional, who can assist in determining the right mix for you.”

Other Key Findings:

Those who consulted a financial planner or other financial professionals are more likely to feel that their current portfolio aligns with their investment goals (71 per cent) compared to those who have not consulted anyone (48 per cent).
Of those with investment goals, 51 per cent describe their main goal as actively saving for retirement, while 13 per cent are looking to improve their net worth.
The majority of Canadians (58 per cent) hold investments that provide some tax benefits (RSPs, TFSAs).
Half of Canadians (50 per cent) have not changed their approach to investing due to the economic downturn.
The Harris/Decima study was conducted via TeleVox, the company's national telephone omnibus survey, with a representative sample of 1,042 working Canadians between November 4th and November 8, 2010. It has a margin of error of /- 3.0 per cent, 19 times out of 20.

For more information about BMO SmartSteps for Investing: www.bmo.com/smartinvesting.

Media Contacts:

Matt Duffin, Toronto, matthew.duffin@bmo.com, (416) 867-39966

Sarah Bensadoun, Montreal, sarah.bensadoun@bmo.com, (514) 877-8224

Laurie Grant, Vancouver, laurie.grant@bmo.com, (604) 665-7596