11 October 2022

We have all heard the saying that “if you fail to plan then you should plan to fail”. So why is it then that most of us leave it to chance when planning for our long-term financial well-being?

For some people, it is just too difficult to know where to begin, while for others, there aren’t enough hours in the day to dedicate to this task. Or perhaps the future is just too far away to think about. Whatever the reason for deferring, a small investment of time with a Financial Adviser in the short-term can reap great rewards for you over the long-term. And it doesn’t need to break the bank!

A Financial Adviser can help you with guidance at any stage of your financial journey, from simple savings and budgeting advice when you are just starting out, to more complex superannuation and retirement planning advice when you are heading towards the end of your career.

Let’s talk about the benefits of hiring a Financial Adviser.

What do financial advisers do?

Financial Advisers can provide you with a broad range of Wealth Management services such as investments, superannuation, insurance and retirement planning, amongst many others. They have an intimate knowledge of the regulatory environment that exists within these areas and will work with you to construct a personalised plan that seeks to achieve your goals and objectives.

Specifically, your financial adviser can provide you with professional advice in these areas:

• Assessing your current financial situation. Before embarking on your journey to financial freedom, it’s important that you understand your financial starting point. Your Financial Adviser will work with you to help build your own personal balance sheet and establish a budget to determine any savings capacity.

• Developing short and long term financial goals. It’s hard to build a financial roadmap if you don’t know your intended destination. Whether it’s saving for a large-scale purchase (e.g. a home), investing for your children’s education, or planning for retirement, establishing financial goals in collaboration with your Adviser will help them to develop customised strategies for you.

• Handling unexpected changes. Life doesn’t always go according to plan and you might find that your circumstances change when a life event occurs. For instance, you might be faced with redundancy from your role, or you may receive an inheritance. A Financial Adviser will outline your options in these situations and guide you on your best course of action.

• Professional investment management. An Adviser has access to a range of investment solutions and can help to match you with the most appropriate solution. What’s more, they will remove emotion from investment related decisions and help you to make rational choices.

• Making plans for your estate. You may also turn to a professional adviser when it comes to estate planning. Your adviser can help make sure your estate plan is in order by working with you and your legal professional.

It’s worth noting that the exact ways in which you leverage a financial adviser will depend on your needs. Perhaps you only need to meet with your adviser annually to assess your accounts, or perhaps you will want an adviser with a more hands-on role who examines your portfolio and suggests changes as often as necessary. You can define your relationship with your adviser in whatever way you see fit.

When is a financial adviser right for you?

You might be surprised to learn that a financial adviser can be right for you even if you don’t have a large sum of money to invest – yet. Anyone can benefit from financial advice. A financial adviser can offer you tips and recommendations when you’re starting your savings journey or help you begin investing when you’ve never had anything more than a savings account.

For those who are beginning to accrue significant wealth, your adviser may look to employ more complex investment and planning strategies. They can assist you in identifying appropriate structures such as superannuation and trusts that may offer tax-effective methods of generating long-term investment returns and protecting your assets.

It may be time for a financial adviser if:

• You are getting married or divorced and need help navigating your new financial situation.

• You are just beginning to invest and you have very little investment knowledge.

• You are nearing retirement and you want to make a plan to ensure you can cover your costs of daily living.

• You have a child and you would like to make a plan for their financial future, including covering educational expenses.

• You have inherited money from a parent or other family member and need advice about how to invest it.

• You have been made redundant and would like to understand your financial options.

• You’re simply not sure how to find a balance between covering your day-to-day expenses and putting a little something away for your long-term goals.

• You would like to protect your income in the event of illness, or make sure your family is provided for financially in the untimely event of your death.

How to choose the right financial adviser

When choosing a Financial Adviser, remember that this relationship may be a long-lasting one so it’s really important to make sure that there is a strong connection from the outset.

Often, the best place to find a financial adviser is through the people that you know. Talk to your friends and colleagues who currently have a relationship with an adviser and ask them if they would be willing to make a referral. It is also worth searching independent sites such Adviser Ratings that offer public reviews on Financial Advisers, along with helpful financial information and articles.

Once you have a few advisers in mind, it is in your interests to interview several ‘candidates’. Make sure the adviser you choose is aligned with your values and makes you feel at ease. You don’t want an adviser who pushes you to make decisions that are outside of your comfort zone.

Benefits of hiring a financial adviser

The benefits of hiring a financial adviser are hard to ignore:

• Set manageable goals. A financial adviser can help you set realistic financial goals and make a plan for reaching them.

• Reduce financial stress. A financial adviser can help you to make rational financial decisions during times of market volatility when you may otherwise make fear-based, emotional decisions.

• Stay on track. It can be difficult to maintain discipline when managing your own financial affairs. A financial adviser on the other hand will periodically meet with you to check in on your financial goals and make sure you’re still on track.

• Budget smarter. A financial adviser can help you build a workable budget. It may be challenging for many people who either experience a windfall or a loss of income to adjust and keep to a realistic budget. Having a financial adviser means you have a professional to help guide you through this process.

• Learn about investing. A financial adviser will educate you about the investment options available to you. New to the stock market? Not sure what a government bond is? These are common questions and financial advisers will assist you with the answers.

Key takeaways

Anyone can benefit from financial advice, even if you are just starting out. Through their in-depth knowledge of superannuation, retirement planning, investments and insurance, a financial adviser can help you navigate the regulatory environment, maximise your wealth creation opportunities, and protect your assets and your family.

Not only can we offer knowledgeable financial advice for a variety of situations, but we have business advisory, corporate finance, tax consultant, and general insurance services to meet our customers’ needs.

Download our checklist to find out more about what happens on your first meeting with an adviser.