Do I Need a Financial Adviser? Busting Myths About Advisers

The Financial Advice Association Australia (FAAA) have released research recently, that will blow all false notions about financial advice out of the water.

As claimed by the Financial Planning Standards Board (FPSB) Value of Financial Planning Research 2023, managed in partnership with research consultancy MYMAVINS, clients who work alongside a financial planner say they are better off, with half of all clients being highly satisfied with their wealth, as opposed to just a third of unadvised consumers.

Are you wondering, “do I need a financial adviser?” We’re here to help. In this blog, we’ll explain the value of financial advice based on the latest FAAA findings. Read on!

Four in five clients of financial advisers also said they feel financially secure and that their finances are discernibly better off.

Myth busted: financial planners only help those who are wealthy

One of the biggest misconceptions about financial advice is that hiring a financial adviser is only for the wealthy. The Financial Planning Standards Board (FPSB) found that three in four clients earning $120,000 or less per year who work alongside financial advisers felt financially secure and confident in their financial future, which is higher than unadvised consumers on the same income. It is the job of a financial adviser to assess your financial situation, no matter how prosperous or unprosperous, and to tailor strategies that will improve your financial position. Financial planners work with people at all seasons and stages.

A solid financial planner will focus on what your objectives are and formulate a financial plan to help you achieve them. This may mean that you are trying to save for your first house and wedding, or perhaps you want to save for your children’s future. Or maybe you are aiming to live out your golden years travelling and enjoying life. A financial planner is there to help you achieve your own dream and improve your financial outlook.

Myth busted: financial planners can only really help you with retirement and superannuation

The myth that financial planning is only needed at retirement and for your superannuation has since been refuted, with about 90 per cent of millennials who work with a financial adviser agreeing that they are better off financially because of their financial advice.

A good adviser will take an overall and holistic look at your financial situation and advise you on ways to maximise and look after your financial position and reduce your risk.

Your strategy may involve many different facets such as insurance, tax advice, budgeting, investment advice, debt consolidation, property investment, estate planning and Centrelink advice. And yes, this advice also includes, but is not limited to retirement planning and your super. From building a property portfolio to planning for retirement, the financial planner’s role is to take a look at your situation and tailor a strategy to meet your personal goals and objectives, no matter what your stage in life.

Myth busted: financial advice costs more than it is worth

Although many believe financial advice costs more than it is worth, around 80 per cent of financial planning clients said the benefits far outweighed the costs. Nine out of 10 also said they trust their financial planner to act in their best interests as client. This includes create a solid financial plan, helping with investment management, achieving your financial goals and more.

FAAA chair David Sharpe stated “Advice professionals and their clients have always known that these longstanding myths that have been regarded as public truths are false, but with these research findings, the high value that financial advice can bring is undeniable. Not only do clients who work with a financial planner feel they are better off, they also feel more at peace with their finance, which is especially important as family budgets are strained by the rising cost of living.”

The research takes into account the FAAA Value of Advice Index, which outlines the difference between those who do work with a financial planning professional and those who do not. “…the index showed that financial planning clients experience a higher quality of life, greater financial confidence, and more financial satisfaction than those who are unadvised,” said David Sharpe.

Our Newcastle financial advisers will help you reach and exceed your goals

Many Australians do not bother to consult financial planners because of preconceived misconceptions they hold about advisers. No matter what your stage in life, consulting a financial adviser is an investment in your future. A financial planner will work with you to help you achieve what is important to you and your family. A great financial planner works hard towards adding real and actual benefit to your life.

At Elliot Watson Financial Planning, our dedicated team are here to help. From creating an expert investment strategy to building a retirement plan, establishing an emergency fund or assessing the risk tolerance of your investment portfolios, we provide ongoing advice tailored to your personal circumstances.

If you’re still questioning, “do I need a financial adviser?,” chat with our Newcastle team. We’ll ensure you receive the right professional guidance on all your financial matters.

Get professional advice from our expert financial advisers today.

For expert financial planning advice, get in touch with Elliot Watson Financial Planning today at 02 4038 1623.

[1] Research from www.ifa.com.au

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