When it comes to managing their finances, 51% of Canadians say they do not have both short and long term investment goals, according to survey results released Monday by Bank of Montreal.

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%).

“When it comes to investing, having an end goal in sight can make it easier to get started,” says 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.”

The survey also found that the less than half (43%) of respondents stated that their portfolio could withstand another downturn — with 40% 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,” says 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.”

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%) compared to those who have not consulted anyone (48%);

> of those with investment goals, 51% describe their main goal as actively saving for retirement, while 13% are looking to improve their net worth;

> the majority of Canadians (58%) hold investments that provide some tax benefits (RSPs, TFSAs);

> half of Canadians (50%) have not changed their approach to investing due to the economic downturn.

The study was conducted via national telephone omnibus survey with a representative sample of 1,042 working Canadians between November 4 and 8.

IE