The Value Of Financial Advice

Recently, IOOF did a study on the real value of good financial advice. This study found that 90% of advised clients had reported that they had found themselves in a better financial situation as a result of their advice, with 89% of these clients saying that they were able to live out their desired lifestyle as a result of their financial advice. It does not matter what your age, gender, wealth or lifestyle is. Financial advice really does benefit anyone in their own situation. So why is it that only 27% of Australians have received advice in the past? There may be a misconception that obtaining financial advice takes up your time and is costly or difficult. In fact, the opposite is true. Let’s talk about what good advice is worth to you.

Solid Financial Advice That Cuts Through The Noise

The sheer quantity of information and general advice that is available online and through a variety of written sources is huge. Sifting through all these strategies, statistics and studies can be overwhelming and send you on a wild goose chase of information that may not be appropriate for your situation. Half of the 11,600 advised clients surveyed, reported that ‘guidance for investing money and assistance in making financial decisions’ was the top reason they continued to seek advice.

Financial Planners have gained necessary industry training and insight through experience and work within a network of other professionals who can work together to help you achieve your goals.

Tailored Financial Advice

Having an adviser that understands your specific needs, can communicate well and is someone you can trust is paramount. In the IOOF study, 66% of advised clients held a long-term relationship with their adviser of over 5 years, with 41% having a client relationship that was 10 years or more. Time allows a deeper understanding and insight into options and scenarios that may need to be considered to ensure a client’s financial prosperity. Ninety-seven per cent of advised clients agreed or strongly agreed that their adviser had their best interests at heart. Time also helps to develop trust and a real partnership when it comes to a client’s financial future.

Advice Is A Financially Feasible Move

Obtaining advice from a trusted financial adviser allows you the opportunity to make more money than through attempting to do it all on your own. Vanguard research evaluates that with a net return of 3% generally made through receiving advice, even when you factor in a fee of 1.1%, you could be still ahead financially by 3%. The myth that financial advice can be expensive is truly debunked. Obtaining quality advice can put you ahead not only financially but also afford you the confidence to achieve your goals.

Apathy can often be your biggest downfall when it comes to financial prosperity. Having the confidence and certainty of an expert on hand to back your decisions with industry insight, will cut through the procrastination, saving you time and money. The Vanguard study assesses financial advisers can give you a net return of 3%, meaning you are actually losing out not having a financial adviser. When you factor in the savings on your tax and interest, reduction of debt, ability to financially handle adverse events and the value of your time, financial advice really does start to reveal itself as quite invaluable. IOOF explains this as an advice dividend, which represents the value that is gained financially and through wellbeing because of good advice. This research reveals that this dividend spans across age, wealth, and gender.

In It For The Long Haul

A good financial adviser sees a client relationship as a long term one. When you take on a partnership with a quality adviser, you will get just that – a partner and mentor, not to mention a counsellor, project manager and coach. Over the course of your relationship with an advisor, you’ll appreciate the assurance and insight you gain along the way. Then, when big decisions need to be made quickly, you’ll not only feel more equipped to make them, but you will have the peace of mind knowing you can call on your advisor for some direction when necessary. A quality advisor will encourage their client to look deeper than just surface level finance talk and work out what their real priorities and values are. From here, goals can be set and achieved that are truly tailored to the individual.

Life is hard to predict and navigate. Being able to prepare and tackle events in life takes partnership, strategy and tools to equip you to make the right financial decisions and achieve your goals no matter what.

Call 02 4038 1623 and make an appointment to speak to a financial adviser at Singleton Financial to partner with you today.

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.The views expressed in this publication are solely those of the author; they are not reflective or indicative of licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the express written consent of the author. Elliot Watson Financial Planning Pty Ltd trading as Singleton Financial and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.