Benefits of Financial Advice
While most people are aiming for financial independence, only a small minority of Australians will achieve this goal. Professional financial advice can improve your financial position and support the lifestyle of yourself and your family.
There is no shortage of smart and innovative ways to manage and grow and protect your wealth, and it can be difficult to navigate the complex landscape of available strategies by yourself. When it’s your money, it’s hard to let go.
You can do too much – such as making changes too frequently, or too little, like sitting on the side lines waiting or investing only in a bank account. Either way can be counter productive. That’s where financial advice can be so helpful. Financial advice can help you manage risk and take a systematic and disciplined approach to investing.
The following points are some of the benefits that financial advice may provide you:
Before you think about where to invest, you need to know why you invest. Good financial advice is not only about answering questions, it’s about defining your goals, both immediate and long term, and recommending solutions that fit your personal circumstances to achieve those goals. A Financial Planner can help find the things that matter to you – a comfortable retirement, money for your children’s education – and build a plan around helping you achieve them. It’s that plan – personal, long-term and flexible – that helps all your financial decisions move you closer to your goals.
Financial advice provides you with a roadmap. Your personalised plan prepared by a Financial Planner will detail your current position and recommend solutions to reach your destination (goals).A Financial Planner helps make objective and fact based decisions. Many financial decisions are difficult as they require analysis, information and most importantly, compromise. It is common for people who do not seek the advice of a Financial Planner to research numerous financial options but decide nothing as they become overwhelmed and it ends up in the ‘too hard basket’.
Setting a budget to ensure your immediate needs are being serviced as well as establishing groundwork for the future.
You may learn how to reduce debt and start a wealth creation plan.
Recommending solutions that take advantage of tax concessions or investment options that have a higher return potential for the same level of risk, or the commensurate increase means that your money may grow more.
There’s lots of research to suggest that individual investors make emotional decisions about money. They often buy when the market’s high and sell when it’s low – the opposite of an efficient investment strategy. A good Financial Planner is also a financial coach and educator to help you invest more successfully. They should be available to answer questions, help review ideas that you present, build your knowledge, and increase your financial skills and confidence.
Warren Buffett once said “to invest successfully, what’s needed is a sound intellectual framework for making investment decisions and the ability to prevent your emotions from corroding that framework”.
Many people make investment decisions that are influenced by emotions. Money in all honesty can be a very emotional issue. A Financial Planner can provide crucial impartial advice which focuses on and encourages successful investment behaviour without emotional ties.
The amount of money you need to have accumulated to provide for the standard of living you want in retirement. How to maximise your retirement savings with both Centrelink and tax laws.
Getting the risk/return trade-off correct is the key to successful investing. Your Financial Planner can help you find the right balance. Global Financial has invested heavily in technology and uses Finametrica Risk Profiling system, a psychometric test of personal financial risk tolerance.
The FinaMetrica system has become an important part of the know-your-client process for more than 3,000 largely independent high-end financial advisers in 12 countries. More recently larger organisations including international banks and insurance companies have become users.
It is often the case that people discover they need professional advice after it is too late. The earlier you begin, the greater the benefits. Protection of your assets and goals for you and your dependants through the use of insurance can be a vital part of your financial plan. A common example of an unrecognised need is personal risk insurance – Australians as a group are massively under-insured in relation to the risk of death, illness or injury.
How to plan and manage the transition of your estate should you die or become incapacitated to such an extent that you can no longer make the necessary decisions regarding your investments.
Superannuation, including Self Managed Superannuation, Investments, including direct shares, Estate planning and Insurance. All these areas are crucial, all complex. An experienced Financial Professional does a thorough analysis of a client’s situation to help you get the benefits you are entitled to receive and implement an appropriate strategy based on your needs. Global Financial uses specialist investment and insurance researchers to investigate the products available, rate their strengths and weaknesses and regularly review their performance and management. This helps you to choose quality products that meet your needs.
Remember your circumstances will change. Marriage, divorce, buying a house, a new child, children’s education, redundancy, retirement and getting an inheritance all have an effect on your lifestyle. These events can also require changes to your investment strategies and goals. In addition there are continual changes in legislation and taxation as well as Changes in economic and market environment. It is important that proper advice is given when there are economic and market environment changes that may affect your investment. Strategic portfolio positioning during such times is essential!