You may think that a financial planner is only for those with money to invest or planning for retirement. The truth is, we can all benefit from professional advice when it comes to our finances. Sound financial advice at any stage of life brings with it multiple short and long term benefits, as explained below.
Financial Benefits
Good advice leads to better financial decisions and outcomes. Typically, people using a financial planner pay less tax and have little to no bad debt. A financial planner will ensure your money is working harder for you at all stages of your financial lifecycle, including more income in retirement, lower tax and interest bills and enhanced net wealth.
Emotional Benefits
The emotional benefits of receiving sound financial advice cannot be under estimated. A solid financial foundation and an ability to better manage finances leads to greater preparedness for life events – contributing to greater peace of mind.
A recent survey by Core Data shows almost 80 per cent (79.4 per cent) of respondents say that an advice relationship contributes to greater peace of mind. More than 80 per cent (81.5 per cent) of survey respondents say financial advice has given them more confidence in making financial decisions.
Behavioural Benefits
A good financial planner will work with you to address long-term habits and spending behaviour. People who receive financial advice report being more in control of their finances than unadvised individuals.
In the Core Data report, more than half (54.9 per cent) of the survey respondents say that as a result of receiving advice they now save more; and 60 per cent say that since receiving advice they’re better equipped to handle sudden, one-off costs.
In summary, a financial planner can provide you with:
- Confidence in financial decision making
- Confidence around budgeting and spending decisions
- Peace of mind
- Better preparedness for life events and milestones, including retirement