Positive economic indicators and stock market gains are two vital signs that helped Canadians feel more optimistic about their financial health of late, according to research compiled by Russell Investments Canada Limited.

The Russell Financial Health Index (RFHI), based on an online calculator that gauges the overall financial health of Canadian investors, recently increased for the second consecutive quarter. The RFHI is now at its highest level since the fourth quarter of 2008, up to 51.1 points from its low of 47.9 points in the third quarter of 2009 (higher points means greater financial optimism).

“In addition to Canadians feeling more optimistic about their finances of late, the RFHI results also indicate that having a financial advisor continues to have a positive impact on a person’s financial health,” says Fred Pinto, Managing Director of Distribution Services at Russell Investments Canada Limited.

Investors who recently used the online calculator displayed less concern across almost all of the 11 potential areas of financial concern listed in the RFHI. Having sufficient income to cover essentials saw the greatest decrease in concern among Canadians.

Investors are also less concerned about having enough income for their lifestyle, riding out Canada’s economic performance, and having a reliable source of income.

However, a few factors did show increased concern among Canadians. Having the ability to leave assets/inheritance to beneficiaries saw a notable increase in concern, followed by concern over finding reliable, trustworthy, professional advice and worries about the financial impact of medical issues and healthcare needs.

The RFHI gathers its data from a confidential web survey, which takes approximately five minutes to complete. Based on a user’s answers, a Financial Health Score is assigned, which can be measured against the scores of other Canadian investors who have used the tool.

Russell Investments Canada Limited is a wholly owned subsidiary of Tacoma, Wash.-based Frank Russell Company.

IE