How financial advice can help you

Even if a person has a small asset base and no funds to invest, the help and guidance of a financial adviser can be valuable.

The accumulation of wealth is a long-term process which occurs parallel to a person’s professional, private and family life, so a good approach is to have a few key strategies in place so that wealth can grow through life’s journey.

It’s common to seek advice in the event of a financial windfall, such as an inheritance or redundancy payout. But another approach could be to set up a wealth creation plan – which might include things like salary sacrificing extra money into superannuation, shares, or an investment property – which are continual and ongoing rather than reactive and one-off.

The reality is, many of us have a limited understanding of our finances and the investment world, and a second opinion can be valuable in protecting us from making mistakes, and instead, putting us on the right path.

There are many rules and regulations, plus a huge diversity of competing investment types, for people to navigate their way through successfully.

Getting the most out of your hard work

In many cases, opinions and words of advice come from friends and family. But financial advisers are industry professionals who are governed and regulated by the Australian Securities & Investments Commission (ASIC).

They’re trained to assess a person’s financial position and help them understand the different options available, so they can make informed decisions about their finances.

Recent research by AMP involved speaking to clients of AMP Financial Planning practice – Advice First. Here’s what one of them had to say. “I have so much confidence in the Advice First team. I am happy to just connect the dots and allow them to do the rest. I would say ‘everyone who values informed decision making (financially) needs to have a financial adviser’, because having one gives you incredible reserve to get the most out of your hard work.”

Engaging with a financial adviser can help educate a person and improve their financial literacy and understanding, so they can begin to make their own decisions based on a better understanding of wealth creation. However, for some, the benefit lies in “someone managing my money better than I ever could be bothered to.”

Cutting through the fog

Many people are faced with several complex and competing financial priorities. Saving for retirement, owning a home, having an emergency fund, putting aside money for children’s education, plus enjoying life with holidays and recreation.

It can be a struggle to balance these priorities. People can find themselves trapped by unnecessary credit card debt, landing in a low-performing superannuation fund by default or leasing a prestige vehicle at a high cost which undermines other goals. Some find basic budgeting a struggle.

Solving these dilemmas, getting priorities in perspective and understanding how they fit together holistically in delivering life’s financial goals is not easy, but it can be made easier with professional financial advice.

Good results can come from an ongoing relationship with a financial adviser, where people can build trust, enabling both the client and the adviser to work together to help the client achieve their financial goals.

This advice is of a general nature only and does not take into account your personal situation and all of your objectives, your financial situation or needs. Before making any decisions you should seek advice from a professional, qualified financial adviser.