Financial advisers seem to appear to have a reputation for being too expensive with ASIC reporting consumers’ top barrier to getting financial advice was the cost. Of the 64% of survey participants feeling advice was too expensive, 35% simply do not seek financial advice as a result of this perception.
The studies are accumulating to show that often people who could benefit from financial advice the most, fail to see a financial adviser due to the misconception that they won’t be able to afford it. Yes, we charge for our services and yes, this could feel like a lot initially. However, the process of receiving financial advice is much like visiting your GP for health advice or hiring a property manager to look after your investment property, yet when it comes to these things, we’re happy to pay for the expertise.
What are the benefits?
The majority of the time, we are in much better shape when we seek help. When it comes to financial advice, a study by the FAAA has shown that Australians who have a relationship with a financial adviser are not only financially better off than unadvised Australians, but they also have a better quality of life with 41% reporting benefiting from improved family life and 44% reporting an improvement in their mental health. In addition, Griffith University released a journal in 2022 following the COVID-19 pandemic stating that advised clients are 6.25% better off financially if they have a relationship with a financial adviser during a crisis.
When it comes to financial well-being, we’re your specialists. We’re the ones that could help you optimise your financial position and achieve your most important goals. And often this is achieved through utilising strategies that most people haven’t considered or don’t know exist. Unfortunately, without it, this could mean paying extra tax and/or fees, losing money as a result of high-risk investing or failing to have enough money to have a comfortable retirement.
How much would you pay to know that you are in the best financial position and can see where you’re headed? Sometimes having absolute clarity of your life’s desires and how you will achieve them is priceless.
Without harping on about how amazing financial advisers are, the reality is, that those who don’t receive financial advice have a much lesser chance of achieving what’s important to them. And for those advisers like us at Alman Partners, this is heartbreaking.
My pro tip is to contact a licenced financial adviser, like us here at Alman Partners, and have the conversation (not the latest fin-fluencer). You might be surprised how little an initial meeting may cost. Don’t let the preceding reputation stop you from finding out whether financial advice is right for you. If you don’t try, you’ll never know. Taking this step could be the best and most profitable decision you’ve ever made.
Resources:
Report REP 627 Financial advice: What consumers really think (asic.gov.au)
FPRJ-Vol-7-Iss-1-Loy.pdf (faaa.au)
Ashleigh Thompson (BBus(FinPlan)) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
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