08 Sep 8 reasons why financial advice is beneficial
Today we have access to more information on managing and growing our wealth than ever before. With the range of access to financial products encouraging us to compare, switch and save online, on the TV, on the radio and in print media it’s no surprise that many Australians don’t see the need for or value of professional financial advice.
However, the reality is that many Australians are concerned with their retirement planning and not as confident in their ability to receive a steady income after they give up their regular income. Many Australians are also struggling under the weight of debt and don’t have adequate savings and protection strategies in place to dig themselves out of the ever-widening hole.
DIY solutions and online platforms can really only take a person so far, and whilst it may be adequate for a time it may not be a viable option where long-term lifestyle and financial goals are applicable. Its funny isn’t it – 95% of us would probably never consider trying to fix the plumbing or electrics in our house on a DIY basis, but still people don’t see the value in professional, structured, accountable advice in the financial space.
So under what circumstances might it be beneficial to seek professional advice?
1. You’ve got better things to do
With the help of Google, in theory all you need to be your own Financial Adviser is the time and inclination. The problem is that there’s so much information available: you need a lot of time to wade through it all. Even if you have the time, sitting and watching your stocks all day or constantly reviewing your super fund’s performance or dissecting the fine print wording on your Income Protection policy is not going to do your blood pressure much good.
2. Who doesn’t love the fine print?
Most people! There are a few people who love detail (and we know who you are as soon as we find out your occupation!) but the vast majority of people don’t. A good Adviser knows a product back to front and they help you make the right decision in an informed and empowered way. Which leads to our next point…
3. Knowing yourself
Evolution has not wired human beings to make good financial decisions. Our urge to be part of the pack, to overvalue the short term, our greed and our aversion to loss can cause us real financial harm. A good financial adviser has the objectivity to help stop your heart ruling your head.
4. The secret to your financial independence
The most effective way to achieve financial independence is to do the small but important things regularly for long enough. Unfortunately, this boring truth does not get much publicity because it is not exciting and because we live in the now, now, now culture. Good Financial Advisers know which of financial levers to pull for the best outcome over the long haul.
5. Ahead of the curve
Research from the Financial Services Council back in 2011 shows that a 30 year old would have an additional $91,000 in their superannuation fund by the time they retired if they had engaged a Financial Adviser at age 30.
If you chose to engage a financial adviser at age 45, you would be expected to have an additional $80,000 in your super fund by the time you retired verses those who chose not to engage an Adviser at 45.
A 60 year old would expect to have $29,000 more within their super after engaging an Adviser at the later stages in life.
6. Someone you are accountable to
Unfortunately, too many people who make their own financial plans don’t actually follow through on them. A financial planner will be the ‘monkey on your back’ to ensure you take the steps needed to achieve your long-term goals.
7. Protecting you from costly mistakes
Often, thanks to our human nature referred to earlier, we do things that might hurt us financially such as falling for high-return promises without understanding the risks. A good Adviser has seen it before and can help you to avoid the potholes in the road.
8. They care
We might be a bit biased here, but Orion’s Financial Adviser Chris Kelly had the following to say: “To me financial advice presents an opportunity for every Australian to better prepare their financial future. The role of an adviser is that of a trusted coach that helps you to negotiate the complexity in prioritising financial goals, choosing investments, understanding the rules and ultimately having finances arranged in the most beneficial way. Every individual has unique goals and so every financial plan is a process of discovering what is important and then tailoring the most suitable advice”
If you would like advice in the areas of retirement planning, estate planning, superannuation, investments, debt reduction, protection strategies and tax effective strategies that is what we’re here for so please contact us to arrange an appointment.
This information, and any advice provided is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore you should consider its appropriateness having regard to these factors before acting on it.