Last Thursday we asked advisors whether their clients had too much debt. The results so far aren’t too surprising.
Voting is open until Sunday so If you haven’t done so, click here
While we wouldn’t suggest our poll results are scientific by any means, they certainly can point to trends or patterns. Recent media highlights a complete lack of retirement readiness by most Canadians with debt being a big part of the problem.
Manulife Bank reported at the beginning of December that almost 50% of homeowners expect to be in debt in retirement. Further, one in five of these homeowners will use their home equity to supplement retirement income.
Even more disheartening: one-quarter of respondents don’t view their mortgages or car loans as debt.
Is it any wonder then that almost 80% of advisors who’ve responded to our poll believe their clients either have or might have too much debt?
With this in mind it might be a good idea for advisors to make “debt reduction” a major priority for their clients in 2015.
After all, Charles Merrill
did exactly that in 1929, stating to clients, "Now is the time to get out of debt. We do not urge that you sell securities indiscriminately, but we do advise that you take advantage of present high [stock] prices and put your own financial house in order.”
Debt reduction is never a bad idea.