Lee Nickelson is an Authorised Representative, GWM Adviser Services Limited, Australian Financial Services Licensee
In the wake of the Royal Commission into Misconduct in the Banking, Superannuating and Financial Services Industry, it is important that we continue to focus on the benefits of receiving expert Financial Advice.
SunSuper commissioned CoreData to investigate the benefits of advice in their 2017 Value of Advice report which produced some interesting results. Overwhelmingly, those surveyed who receive financial advice are more ”well” in life. They are better equipped to deal with unexpected expenses, more prepared for retirement and have more confidence in making financial decisions (1).
80% of those currently advised believe advice has given them more confidence in making financial decisions
Financial literacy is an important benefit and outcome of an advice relationship. Whilst we don’t expect clients to follow the movements of the NASDAQ, having an understanding of investment characteristics such as income versus capital values, the importance of asset allocation and investing for the long term gives clients greater confidence when making financial decisions. This in turn brings a greater sense of financial security and less worrying about money. After all, our definition of wealth is an absence of financial worry.
79% of those currently advised believe advice has given them more control over their financial position
Planning for the future is so important as it gives you confidence you can achieve your immediate and future financial goals. Whether it is setting aside funds for a rainy day, increasing your savings, or contributing to a retirement plan, having an advice relationship allows you to map out your own path to financial freedom.
77% of those currently advised believe advice has helped them feel prepared for retirement
Many of us think that retirement is so far away that it doesn’t warrant planning now – this couldn’t be further from the truth. Einstein’s 8th wonder of the world is compounding returns, earning interest on your interest, so paying attention to your retirement nest egg early, no matter how small, is well worth while.
67% of those currently advised feel advice has made them more equipped to handle sudden, one off costs
Through accountability, information and support, receiving financial advice can help people establish contingency plans, insurance and debt management strategies to deal with unexpected events and life’s twists and turns.
80% of those currently advised believe advice has given them more peace of mind.
Financial security is important for everyone, to know we are on the right track and not borrowing from our future to live the life we are currently. A staggering statistic from the report is 39% of those unadvised felt they had enough money to pay for recreational activities compared to 79% who were advised.
Financial stress affects people’s lives in quantifiable ways. It can affect your health, relationships at home, and both your productivity and attendance at work. This is why we continue to believe in the value of financial advice; knowing that it improves lifestyle outcomes and overall wellbeing.
If you are interested in your own financial health check, please don’t hesitate to contact an Financial Adviser at Income Solutions.