Imagine what your life could be like.
Now imagine if you had someone working with you who knew the right questions to ask to help you identify, clarify, and prioritise the goals that are most important to you. Someone who could help you understand what you needed to do today to work towards achieving your ideal future. Someone on the same page as you, with the relevant knowledge and ability to help you achieve those goals.
This is what it can be like when you team up with a professional financial adviser.
Why invest in a financial adviser?
CoreData research commissioned by CPA Australia in 2020 found that properly implemented financial advice could add an average of 30.6% to a person’s annual income1. Australians are investing in professional financial advice to help them reach their financial goals through efficient, tax-effective investment strategies and implementation. However, financial returns are not the only benefits of seeking professional investment advice.
According to the inaugural How Australia Retires2 report by Vanguard, whilst younger working Australians are generally relatively confident about their financial future, this confidence wanes as they age, and the longer they go without developing a plan.
Financial planning clients often mention that peace of mind is one of their prime motivations for seeking advice. They feel more confident about their ability to build strong financial foundations and a more secure future.
The CPA/CoreData research reported: “Financial and mental wellbeing are intertwined. Individuals who receive professional advice report better mental health. “Approximately four in five advised Australians say professional advice has given them greater peace of mind about their finances, greater control over their financial situation, and improved financial security.”
This was underscored by research conducted by the finance team at Griffith University’s Business School3. Griffith University’s Dr Kirsten MacDonald said that in a crisis, many financial advisers become frontline supporters, including in times of personal stress. “From a marriage breaking up to a death in the family, financial advisers are there when a client’s world falls apart. You can’t discuss money until you deal with the emotions and talk through the hard stuff,” she said. Her conversations revealed that long-term advised clients were better off, felt more informed, panicked less, and maintained good long-term financial habits.
An investment not just for the wealthy
Financial advice gives you the confidence to be more resilient to the ups and downs of life – and investment markets – even through times of stress and volatility. The most effective financial advice is personal advice, delivered by an authorised professional financial planner, and specifically tailored to your individual circumstances, goals and risk tolerance.
However, while research here and overseas demonstrates a positive return from comprehensive financial advice, most Australians are yet to realise these benefits, with a Finder survey conducted in 2022 reporting that only 16% had a financial adviser4.
Finder’s Kyle Purcell said many Australians did not believe they had sufficient wealth to justify getting financial advice. “The perception is that you need a lot of money to receive professional financial advice,” he said.
Getting quality advice early is one of the smartest investment decisions
But the CPA/CoreData research suggests that getting quality advice early is one of the smartest investment decisions you’ll ever make. Despite the competing priorities during those challenging years of paying off a home and educating children, people aged between 35 and 64 improve their income by an average of 22% per annum by investing in advice. For them, this is creating wealth and security for future years.
If you do seek advice on planning your financial future in a way that is tailored to you, the best option is to select a qualified and licensed financial planner with whom you can build a trusted partnership over many years. They will be there to coach and nurture you through the good times and the bad.
Stop imagining your ideal life and make it happen. Book an appointment to see an authorised professional financial adviser today.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
2 https://www.vanguard.com.au/adviser/en/article/portfolio-construction/vanguard_retirement_study
3 Griffith University, Business School, Financial advisers: the hidden frontline in a crisis, 2020
4 Tamika Seeto, Yahoo Finance, Millions of Aussies don’t get financial advice, 2022
