Remember the old Mission Impossible television show? You know, the ones when the critical message warns the listener that they have 10 seconds until the tape self-destructs? Would you be surprised if I told you that cinematic moment has more in common with financial success than almost any other video about investing you’ve ever seen?
Learning how to get things done in a compressed time period, before the clock hits zero, and without losing focus could actually mean the difference between the retirement you’ve always dreamed of and running out of money when you need it most.
The Major Impact of Small Distractions
There have been countless studies done on the cost of interruptions and distractions in the workplace. In-fact, according to Basex research, interruptions cost the U.S. economy $588 billion a year. Here at Nest Wealth we have the data to show you how distractions at home can be even more impactful on your family’s future.
For example, making the choice to switch to a low cost digital wealth management solution could save the average Canadian investor over $300,000 in needless fees over an investment lifetime. What surprised us most however was that if a user gets distracted at the wrong time, they likely will never come back to do the very thing that’s in their best interest.
We have opened thousands of accounts for Canadians just like you, and our data shows that if a potential client doesn’t get their account opened within 2 days, if they don’t put time aside to finish what they start, then life takes over and it falls off their to-do list.
People are making decisions quickly. In fact, 66% of people who start looking into RRSP account options with Nest Wealth make a decision and have their account set up the same day. Within 48 hours, 80% of people have set up their account. This means that of all the Nest Wealth clients who ended up opening accounts, less than 1 in 5 did it more than 2 days after their initial interaction with the site. That’s shocking! If a Canadian investor doesn’t find the time to complete something that’s entirely in their best interest within 48 hours, it becomes unlikely they will ever complete it.
We understand that there are countless demands on your time. You’re busy. That’s why once you decide to start the task of opening an RRSP account, you need to get it done. Otherwise, the phone rings, you get pulled away to feed the kids, fold the laundry, walk the dog, shovel the driveway and the list keeps growing (and growing). All of a sudden it’s months later, other priorities have taken over and you are missing out on saving for your future. It’s a real situation that one minute put aside today can actually shave years off of your retirement date down the road.
Fast, convenient, sophisticated
This type of data is exactly why we set out to make opening a RRSP account as fast and easy as possible. We knew Canadians needed something they could complete all at once, in less than 10 minutes. You don’t need to book a meeting with an advisor and take time out of your day 3 weeks later to find your way to their office. There’s no pile of paperwork for you to fill out and you don’t have to go search for a fax machine. The whole process is online. We ask you a few questions to understand your objectives, you fill out some information about yourself, and then e-sign the documents.
Once you complete your set up, we put together a truly customized portfolio that can help you reach your specific retirement goals. From there it’s simple, you save money, pay less in fees, and we use our technology and investment expertise to manage your portfolio. This way, you can get back to feeding the kids, folding the laundry and walking the dog, while we take care of the rest.
For too long the emphasis on investing has been to start early, and while nobody would deny the benefits of getting a jump start on savings, our data now shows the real importance lies in finishing what you started as quickly as you can. Otherwise you’re likely to continue to remain in that high fee mutual fund, stuck with that firm you don’t like, or holding a bunch of cash or equities that don’t make a heck of a lot of sense in the context of a long term plan. Starting early is important, but finishing what you start as soon as you can…that might be the most important lesson of all.