As a Financial Adviser in a previous life I would always hear, “I don’t have enough money to need a Financial Adviser!” Every time I would hear this, regardless of how much money they had or didn’t actually have – this was a client I would never engage. Why? It’s not a matter of how much money you have, or think you have, its about the person’s attitude to building wealth.
Like the old adage, “Fail to Plan and Plan to Fail,” the person who does not think they have enough to plan to build wealth or simply uses that as an excuse will never get the benefit a Financial Adviser can provide. Take Warren Buffet as an example – I don’t think when he started with his first investment of three shares in Cities Service valued at $38 he was thinking, “I won’t bother planning to build wealth as I don’t have enough money” – fast forward to now and he is worth $63.1 billion! Not bad for a few early visits to fathers stock brokerage – learning and taking advice from those who had the knowledge to impart! Let’s be brutally honest, there are only a handful of people in this world who have enough money not to derive the benefits of a Financial Adviser – yet I can guarantee they all still have advisers!
How can a Financial Adviser benefit me?
Financial advice benefits all. If we all had the knowledge and time to invest in our personal wealth – there wouldn’t be such a thing as a Financial Adviser. Financial Advice is an importance service that assists people navigate through various financial products and strategies to achieve their financial and lifestyle goals. Don’t know what your financial goals are? A Financial Adviser worth their salt will sit down with you and help define goals to build your slice of the financial pie.
Most think of Financial Advisers as product floggers seeking an easy dollar – again these people don’t take the time to appreciate the benefits that an adviser can offer in advising on strategies to take full advantage of those products to maximize the outcomes and to achieve your financial goals. Take an easy example of a simple life insurance policy and these questions that an individual may not appreciate but are bread and butter to a financial adviser;
- Have you truly insured enough to protect your family
- Are you aware of the different ways you can pay for your life insurance policy and the taxation consequences of each method?
- What about how a claim is handled under different ways to pay for a life insurance policy?
- Are you structuring your policy in a way which will make it unaffordable later?
This is the simplest of examples of a financial product that people take for granted. More questions can come to surface with a simple discussion. It isn’t uncommon for individuals to either have it totally wrong or have no idea that a simple tweak can improve the outcomes greatly – enter the Financial Adviser.
To assist you achieving your financial comfort, a Financial Adviser will identify your goals and define your situation. Your accountant and solicitor can also be engaged to prepare the best possible financial plan. A financial plan will be drafted considering your needs and requirements, implemented and reviewed regularly to meet your changing circumstances.
Don’t think you need some level of financial advice? Ask yourself these questions…
- Do you know what investments are best suited to investment risk tolerance and investment time frame?
- Do you know how much to adequately insure for?
- Do you know how to make superannuation contributions most effective?
- Do you know what life insurance and income protection products offer the more comprehensive definitions?
- Are you aware of how much capital you need to retire adequately?
- Do you know if you will qualify for the age pension?
- Are you sure that your assets will be passed on to the next generation effectively?
How can I maximise the benefit of a Financial Adviser?
The first tip to get the real benefit of a Financial Adviser is to have an open mind – we all think we have the answers, but it is the ones who ask the right questions and actually want the answers are the ones that succeed. Second is to shop around – all Financial Advisers are different and this is good – but some are better than others. Don’t let yourself get rushed or leave a meeting with more questions. Like any situation, trust is paramount, but blind trust is dangerous. Make sure you feel comfortable with a Financial Adviser and get all your questions answered. The objective of a Financial Adviser is to assist a client achieve a financial goal at the lowest possible risk – you need to be comfortable or no benefit will be achieved.
Those that have the least, have the most to benefit from a Financial Adviser – most Financial Advisers will sit down with a person for an hour at no cost or obligation. If there is no cost and no obligation and a person still doesn’t want the opportunity to ask the questions that can improve their financial future – then what is the real excuse?
We want all to become MoneyGeeks – share the benefits that you have received from a Financial Adviser below!
About the Author – Benjamin Irons
Benjamin has been involved in the financial services industry since 2004. Benjamin has a Bachelor in Business, Diploma of Financial Services (Financial Planning). Previously a Financial Adviser and a business owner, Benjamin has worked with hundreds of individuals and businesses to implement simple strategies to improve wealth. Benjamin writes for a number of websites to assist people take control of their finances and find their financial freedom!