By: Paul Brent | The Toronto Star | November 29, 2010
Read More, and see what Scott Plaskett says about short-term investment planning.
While financial advisors hammer away at the idea that financial planning is a gradual, decades-long process, one of the country’s big banks is promoting the idea of short-term planning for those who have trouble thinking about the far-off future.
“What we are encouraging people to do is, not change the way they do financial planning, but to think about it in short-term increments,” says Rob McGavin, director of product development for GICs with the Bank of Nova Scotia.
Financial advisors for the bank will be talking a lot more about planning in five-year increments, rather than looking to 2030 and beyond.
“It is not a fear of investing, but inertia,” he explains. “It’s human nature. It is easy to procrastinate when you don’t realize the benefits until 20 or 30 years down the road.”
Reducing the timeframe to just five years means going through many of the same steps you would cover if you were planning for retirement well into the future…