The value of ongoing financial advice

Wealth Management

30 November 2021

The impact of having an ongoing financial advice relationship is genuine and real.

A recent Rice Warner study into the future of advice stated that investors who received advice over four to six years accumulated 60% more assets than those investors who had no advice. In addition, where advice exceeded 15 years, households accumulated 290% more assets than comparable households.

The intangible benefits are also real. A white paper produced by Fidelity International in late 2019 into the Value of Advice found that 74.3% of Australians who currently receive advice say it has improved their financial wellbeing. An additional 49.9% say their mental health has benefited. Most importantly, the 77.1% of respondents receiving advice were able to achieve their personal goals.

Ongoing financial advice

An ongoing financial advice relationship is the best way to help ensure you have the best chance of achieving the things you want in life.

But like any professional relationship, you need to do your homework to find an adviser that has the qualifications and experience to help you achieve your goals and that you feel comfortable and confident sharing your aspirations with.

Based on more than 30 years of experience, here’s what we recommend you look for if you’re meeting with a new adviser.

A structured review program

Your adviser should meet with you on a regular basis (at least annually) to update your position and ensure your financial plan remains appropriate for your circumstances.

When you meet, you should discuss your progress towards achieving your goals and update you on how your portfolio is performing.

They should take the time to understand what is worrying you, what is exciting you, and ensure that is captured in your financial plan.

Ongoing portfolio management

An important part of achieving your goals is ensuring your portfolio delivers a long term return commensurate with the level of risk that we have agreed to take.

Good portfolio management requires constant attention and is rarely a set and forget exercise so you will need an adviser who will help you construct a portfolio that is actively managed in accordance with a robust Investment Philosophy.

Access to your Financial Planner

Things can change quickly and, if they do, it’s important to have a dedicated adviser that is available to assist you when required for all matters great and small.

It also helps if they have a dedicated support team that works along side your adviser to ensure your affairs are managed efficiently and accurately.

Proactive advice

From time to time your financial plan may require some urgent attention. If it does, your adviser should proactively contact you to discuss urgent changes should if and when they are required. While this does not occur all that often, it can be invaluable when required.

Legislative and technical changes

Your adviser needs to be up to date with the latest technical and legislative guidance. Changes in this space are regular and often, and it is important that you are updated when changes occur and your financial plan is adjusted to help ensure it still meets your goals.

Working with other advisers

There will be stages in your financial journey where you need the assistance of other experts. This may be an accountant, a lending specialist, insurance or tax expert, or perhaps it could be a need for an estate planning specialist.

Your financial planner will act as your conduit in these relationships and ensure that any advice you receive is integrated into the bigger picture so look for one with established relationships or one that is part of a larger financial network.

A financial coach

Your financial planner should maintain an objective focus that will assist you in making decisions that are best for your future. Your planner should be trained and educated to help you avoid making decisions based on emotions and help you understand the implications of a decision, so that you can maintain a long term focus in times of short term volatility.

Take the first step to building a secure future

Findex starts with understanding you, your goals, objectives, needs and values. By understanding who you are, we are better able to provide advice in your best interests. So, whether it’s advice around saving for your children’s education, retirement planning or investment advice, our advisers can help you develop a financial plan and investment strategy to meet your current and future goals.

Get in touch with our Wealth Management team today or find an adviser in your local area.

Author: Jonathan Scholes

Jonathan has worked in the financial planning industry since 2001, primarily as a financial adviser. Jonathan enjoys helping individuals, families and business professionals manage and improve their financial position by understanding their personal values, goals and lifestyle aspirations. Jonathan has experience advising a broad spectrum of clients including young professionals, retirees, high net worth individuals, families, business owners and Not for Profit organisations.