A new perspective on the meaning of wealth
The Edward Jones Financial Fitness Program, which was launched as a pilot earlier this year, has so far provided training to about 2,000 students in 71 high schools across Ontario, British Columbia, Saskatchewan, Alberta, and Manitoba. sdi productions via getty images
Considering more than money and assets to plan for overall wellness
Canadians today face a reality transformed by rapidly shifting demographics – with an aging population, more older women living alone and a surge in newcomers – along with major global events and socioeconomic forces.
All these changes have, collectively, shaped Canadians’ perspective on money and what wealth truly means to them.
“In past decades, Canadians tended to focus more on what they should be investing in and how much they can grow their portfolios within a certain time horizon,” says David Gunn, president of Edward Jones Canada, part of a century-old, Missouri-based Fortune 300 company and one of Canada’s largest independent wealth managers with $52 billion in assets under care – over 40 per cent higher than total assets five years ago. “But today we’re seeing a growing desire to balance wealth with the other things Canadians value in their lives, and it’s really changing the conversations around money and financial planning.”
“What we’re hearing from younger Canadians is that, given the current economic climate, it’s more important than ever to have that foundational financial knowledge that they can build on. They want to learn more about investments and what they can do to plan for their future. Just as importantly, they want to feel more confident in their ability to manage their own finances.”
Even before the COVID-19 pandemic accelerated and magnified this switch in thinking, Edward Jones had already identified the need to “do money differently” through an approach built on the four key pillars that support an individual’s overall wellness: health, family, purpose, and finance.
“Our approach is from the point of view that wealth is more than money and assets,” says Mr. Gunn. “We recognize that wealth really is the human, intellectual, social, and spiritual capital of each of our clients and their families. This understanding allows us to deliver comprehensive planning and advice and sets us apart in our industry.”
As the country’s Baby Boomers and wealth builders continue to advance into retirement, Canadian families face increasingly complex financial and estate planning needs. Entrepreneurs are grappling with business succession, and parents are thinking about how they can best pass on their wealth to their children and grandchildren while minimizing the risks from potential curveballs.
Edward Jones received the highest score in the J.D. Power 2023 Canada Full-Service Investor Satisfaction Study of investors’ satisfaction with full-service investment firms. Visit jdpower.com/awards for more details.
Mr. Gunn says Edward Jones has made several significant investments to help ensure its financial advisors have the knowledge and resources they need to help business owners and families with complex financial needs. These include investments in multi-financial advisor offices, which provide more options for advisors to work in teams to serve their clients better while enjoying economies of scale from shared costs.
Edward Jones now has 85 of these multi-financial advisor teams across the country.
“We also have what we call our Client Consultation Group (CCG) that works with large accounts and business owners on more complex aspects such as estate planning and cross-border tax planning,” he says. “There’s a significant portion of small business owners and medium-sized businesses that we’re helping today, and the conversations we’re having with them are very different from the conversations we have with our clients who aren’t business owners.”
With its ongoing focus on understanding Canadians’ changing needs, Edward Jones is also well positioned to help Canadian women, who collectively control $2.2 trillion in assets today and are projected to control $4 trillion by 2028.
Mr. Gunn notes that despite their growing financial clout and higher likelihood to make smarter economic choices – the latter observation is supported by a recent Edward Jones study – women continue to be underserved by the financial services industry.
“We know that women investors are two-and-a-half times more comfortable taking investment advice from women advisors, so our big area of focus is making sure that we are paying special attention to our recruiting of women financial advisors,” he says. “We’ve made great progress in the last few years.”
Today, one in four financial advisors at Edward Jones is a woman – a rate that’s above the industry average and which the company continues to build on. Among all the financial advisors who joined Edward Jones in the last 10 years, 30 per cent are women.
Women also account for 50 per cent of senior leaders at Edward Jones, and more than one-quarter of new employees hired this year. To ensure its women advisors are set up for success, Edward Jones offers fully flexible work hours, the appropriate technology and resources for remote and mobile work, after-hours operations and technical support, and access to its Women’s Business Resource Group, which empowers women associates and provides them with coaching opportunities if they’re interested in potential leadership roles.
Mr. Gunn says an important change he’s seeing among families is the desire to have conversations with their children about their family wealth and the next generation’s role as stewards of that wealth.
Educating young people about finances is critical, whether they’re inheriting wealth or building their own, he adds. This is why Edward Jones recently launched the Edward Jones Financial Fitness Program, which is designed to prepare the next generation of Canadians for financial success.
“What we’re hearing from younger Canadians is that, given the current economic climate, it’s more important than ever to have that foundational financial knowledge that they can build on,” says Mr. Gunn. “They want to learn more about investments and what they can do to plan for their future. Just as importantly, they want to feel more confident in their ability to manage their own finances.”
The program, which was launched as a pilot earlier this year, has so far provided training to about 2,000 students in 71 high schools across Ontario, British Columbia, Saskatchewan, Alberta, and Manitoba.
Almost three decades after it opened its first Canadian office, Edward Jones continues to be a top choice among Canadians.
This year, Edward Jones Canada has been named the Highest in Investor Satisfaction with Full-Service Wealth Management Firms in the J.D. Power 2023 Canada Full-Service Investor Satisfaction study.
The firm also placed on Kincentric List of Best Employers in Canada for 21 years in a row.
“We know that comprehensive planning and good financial knowledge are critical for Canadians today and in the future,” says Mr. Gunn. “As Canadians’ financial planning needs continue to evolve, Edward Jones will keep working hard to find new ways to serve them better.”
To view this report on The Globe's website, visit globeandmail.com
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