When it comes to determining the value of a financial adviser, it comes down to more than dollars and cents.
Numerous studies have shown that money is a relationship stressor, 33% of Australians find dealing with money stressful or overwhelming, and 44% admit to arguing with their spouse about money at least occasionally. If money alone spikes your blood pressure, just imagine what the more complicated concepts of investing and financial planning can do.
In addition to improving clients’ financial outlook and outcomes, financial advisers can help reduce that stress. Herbers & Company research found that people who use a financial adviser are nearly three times happier than those who manage their own finances. Specifically, they were more fulfilled, grateful, intentional, and pleased with their impact on the world – cited as four predictable keys to happiness – than those who did not have a financial adviser. According to the study, those who sought professional help managing their money were also happier in their relationships and communication.
While you may see the primary role of financial advisers is to help clients achieve investment outcomes, a more valuable role is as a behavioural coach and risk manager. Advisers provide substantial value by helping clients avoid pulling out of markets at the wrong time and continue to stick to their long-term plans.
In a complex world that keeps posing challenges to investors, advisers continue to add value that enables and empowers their clients to attain their long-term financial goals. Australians have relied on their advisers heavily to navigate both the practical and emotional aspects of investing. It is a relationship that proved fruitful not just in periods when markets fell, but also when investment assets rose. Of course, financial advice encompasses much more than investing. It requires in-depth knowledge of taxation and social security, plus the understanding of human behaviour that’s necessary to support people making life decisions.
Russell Investments Value of an Adviser study highlights five areas of value a Financial Adviser delivers, being Appropriate asset allocation, Behavioural coaching, Choices and tradeoffs, Expertise and Tax savvy planning and investing. Over the past year, Russell Investments’ annual analysis shows the value of an adviser in Australia is at least an additional 5.9%.
A is for appropriate asset allocation: 1.2%
B is for behavioural coaching: 3.4%
C is for choices and trade-offs: Variable
E is for expertise: Priceless
T is for tax savvy planning and investing: 1.3%
Overall, this adds an additional 5.9% PLUS!
Reach out and have a chat with a financial adviser today. It may be more valuable than you realise, and it makes good dollars and sense.
The purpose of this website is to provide general information only and the contents of this website do not purport to provide personal financial advice. JourneyNest strongly recommends that investors consult a financial adviser prior to making any investment decision. The contents of this website does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.