It’s a huge decision whether to work with a financial adviser or handle your investments independently. Not everyone needs to work with a financial planner or consultant on an ongoing basis. Professionals who specialise in financial planning and management are known as financial advisers. When you are having a family, being laid off, saving for retirement, or handling an inheritance, for example, financial counsel might be helpful.
It’s crucial to decide what you want to gain from the counsel before your initial consultation with an adviser. Before making any suggestions, an advisor should take the time to learn about your priorities and your short and long-term objectives. We’ve compiled a quick list of reasons why you should consider using a Financial Adviser.
Supporting your goal-setting and accomplishment
If you provide an advisor with correct information about your circumstances, they can personalise their counsel to best match your needs. For instance, you could wish to:
- retire at age 65 and maintain your current standard of living
- Pay off your mortgage by a specific year while also setting up money for your children’s education.
- Have adequate assets and insurance to provide financial security for your family in the event that you are unable to work.
- Ensure that your investment plans are more tax efficient.
- Take charge of your assets and retirement plans so you may build money the way you want.
- Recognize whether you’re on track to meet your financial goals and determine whether any adjustments are necessary.
You can receive a precise picture of your financial health by providing your financial consultant with information about your financial condition.
The following details about you will be requested of you when you meet with a financial advisor:
- personal circumstances, such as your age, place of employment, and marital status
- Financials: Your assets, liabilities, sources of income, and current and future expenses
- insurance products like life and health insurance
- wills and powers of attorney are examples of estate arrangements.
During research, time and money are saved
There is a ton of investment-related information available online, but having too much information is not always a good thing. How can you tell what information is reliable? Do you have the time or the knowledge necessary to sort through this massive volume of information?
A competent financial advisor can do all the tedious work on your behalf, freeing up your time to focus on what matters most to you—living your life. Finding the financial solutions that are best for you might be made easier by working with a financial advisor. A dependable advisor can help you choose the tactics that will work best for your situation, ease your financial strain, and move you closer to your objectives.
Accountability & Reliable Counsel
How frequently have you made plans with the purpose of following through, only to fail to do so? When you are working alone on a challenging task, losing momentum is considerably simpler. Therefore, it is advantageous to have a dependable, neutral third party who can hold you accountable. Finances are no different for you. A dependable financial advisor can serve as the objective third party you require to keep you on track.
Trust is among the top issues people bring up when discussing financial advisors. Less significant than the trust you share is the plan and investments that were picked for you. Trust makes sure you provide the adviser all the information they require to make the best suggestions.
Having the confidence to persist with your long-term plan despite unfavourable short-term market movements.
What you need to know about creating a financial plan that works for you.
At your initial consultation, a financial planner should go over how they collaborate with you to create your Personalised Financial Plan. To understand what your financial advisor is giving, you should ask the following questions if you do meet with one.
Be careful to cover the following topics during the initial meeting:
the advice’s scope (what is and isn’t included)
- the price and your payment choices
- what details they’ll share with you and how frequently
- when they will ask your consent and when they will consult you?
- what skills they have to handle your accounts and tactics
- how frequently you’ll meet to assess the success of your financial plan
In order to help you achieve your goals, an advisor will try to determine how much risk you’re willing to take. This will enable them to suggest appropriate investments for you. If there is anything you don’t understand, ask the advisor to clarify. Always feel at ease with your advisor and their suggestions.
Your financial advisor will create a financial plan for you once you’ve decided to move forward. You will be shown this at a later meeting in a piece of writing called a Statement of Advice (SOA). You can decide to follow part or all of the advice only when you are confident in your understanding of it and are comfortable with the risks it entails.
Plan your taxes
Proper tax preparation is one of the most crucial (and sometimes disregarded) aspects of a successful investment strategy. Your investments can be properly structured by a financial advisor to maximise their tax efficiency. They can also help you with sophisticated tax planning techniques that you shouldn’t try on your own. You can minimise tax with the aid of reliable consultants. The ability for your accountant to communicate with your financial adviser to offer current financial information is a clear advantage of selecting a financial consultant that works closely with your accountant.
Market Knowledge
When things go wrong, a lot of people who first tried to make their own financial plans turn to financial advisers. The finest instructor is, in fact, experienced. A competent financial advisor has repeatedly survived market fluctuations and changes in other types of investment vehicles. They have also witnessed individuals who work alone.
An expert advisor will be able to listen to your goals and offer knowledge and recommendations that you just cannot get on your own. Relying on a reputable financial advisor can also assist you in avoiding generic investment advice and plans that might not be suitable for your individual needs.
Recognizing Market Changes and Regulatory Shifts
When it comes to handling market swings and legislative changes that may have an impact on your long-term financial objectives, a financial adviser can also possess exceptional skill. They can therefore be well-prepared with the methods and techniques you need to maintain the course of your approach. A smart counsel will remind you that trying to time the market is impossible and that entering and exiting the market quickly carries significant risk. Most people who try to time the market historically miss the high peaks, which results in a lower return on their assets.
Constantly being up to date with market and regulatory changes is a part of a professional financial adviser’s job. You may make smarter selections if you keep up with market trends with the aid of a reliable advisor. The government is continually making adjustments to the already complex superannuation laws. Your financial advisor can explain how regulatory developments like this may affect your circumstances and your strategy and offer tailored advice on how to fully benefit from them.
If you want to talk about whether hiring a financial adviser will be beneficial for you, contact our office right away.
Basic Advice Caution
The information on this page and on this website has only been created for general informational purposes; it does not constitute personalised counsel for any one individual. Any advice found on this page or on this website is general advice and does not take into consideration the specific needs, financial circumstances, or investment objectives of any one person.
Before making an investment choice based on this advice, you should think about whether it is appropriate for your unique investing goals, objectives, and financial situation, with or without the help of a securities adviser. Additionally, the examples given on this page and across this website are just meant to serve as examples.
Although every effort has been made to ensure the accuracy of the information on this page and on this website, Chan & Naylor, its officers, representatives, employees, and agents expressly disclaim all liability for any error, inaccuracy, or omission from the information contained in this website, as well as for any loss or damage suffered by any person directly or indirectly as a result of relying on this information [except for any liability which by law cannot be excluded].