Getting sound advice from someone you trust with knowledge in a certain area can have a lasting impact on the way you make decisions and manage your life, both in business or your personal life. Financial advice is no different. Solid, professional financial advice from a dedicated financial adviser can make a huge difference to the way you manage your investments and money, and how you make financial decisions. Financial advice can:


  • Help improve investment outcomes 
  • Offer peace of mind
  • Help you plan for retirement
  • Manage your taxes and superannuation
  • Lessen financial strain – and therefore lessen strain on your relationships


Studies have shown that on average, those with financial plans will accumulate more than three times the assets after 15 years compared to those that make their own decisions, or do no financial planning of their own. 


Financial planning and advice from a professional can benefit your financial position in more ways than one. Here are a few financial advice benefits.


Tailored to you


Your financial adviser will look at your full financial picture, and help you see things you wouldn’t necessarily pick up on if you managed your own finances and decisions. While there are plenty of books and websites out there claiming to help by offering free financial advice, they are not specific to you and your situation. Your financial adviser will have a clear understanding of all aspects of your finances and investment portfolios, and will be able to tailor their advice to your situation specifically. 


Not just investment management


Financial advisers certainly deal with more than just investment portfolios or investment management. They can assist you with planning for retirement, including understanding how much you need to save, and how to achieve those goals. Superannuation management is so important in our ageing population, and is simplified with a financial adviser on your team. 


Life insurance can be intimidating and confusing to understand on your own if you’re unsure of the level of life insurance you should take out, and how to plan for the premiums. If you’re looking at buying a new home, your financial adviser can help you, from ‘can we afford it?’ to ‘how can we save a deposit?’ and ‘how will we manage our repayments?’ Your financial adviser will be able to determine if you can save money on your taxes, or if you can minimise your outgoing costs related to interest. 


If you are looking at making an investment or adding to your investment portfolio, financial advisers have the knowledge of the market as well as an understanding of your financial position. They will be able to offer valuable advice before and during the decision-making process, and during management of said investment. 


Understanding complex financial decisions


Some aspects of financial planning and investment management require specialised skills which the average John or Jane Citizen may not possess. Professional financial advice is a great way of understanding complex and/or risky financial decisions, such as complicated investments, self-managed super funds, or derivatives. 


The benefit of financial management in relation to complex or risky decision-making is that you may be able to undertake projects or make decisions that you otherwise wouldn’t understand or feel confident in pursuing on your own. Financial advisers will be able to assist you in understanding and mitigating the risks of each financial decision or investment made. This increases the chance for financial success. Studies have shown that clients with financial plans have, on average, 60% more advisory assets than those without a plan. It’s not that clients without financial plans necessarily make poor financial decisions, but that they may hesitate and keep from making any financial decisions that may increase their assets or wealth. A financial plan offers confidence and, more importantly, potential for financial growth and better portfolio returns. 


Various stages of life


Financial advice taken on at a young age leads to a lifetime of good decision-making and a cumulative increase of funds and assets. It’s estimated that approximately half the value of advice comes from simple advice in relation to savings. It goes to show that understanding and valuing savings habits from early in life will go on to create more cumulative wealth as life goes on – but that’s not to say it’s too late to seek financial advice later on in life. It’s never too late to examine, understand, and seek advice for your own financial situation. 


Not just for the wealthy


Financial advice is certainly not only helpful for the wealthy or those with more disposable income. In fact, those from lower socio-economic wealth bands or with lower incomes are expected to gain more from professional advice than those with a higher level of wealth. A large part of this is due to the clients of a lower income being less likely to allocate assets to potentially high-yielding investments, due to lack of confidence or understanding, and their lower level of income. Financial advisers will examine the income of a client, help them understand the potential risks or gains of allocating assets to various investment classes, and help them make decisions they may not have otherwise made on their own. 


But that’s not to say that clients from a higher wealth bracket won’t benefit from financial advice – each individual financial situation can benefit from a professional financial adviser examining, understanding, and offering advice on said situation. 


The Takeaway


The value of financial advice cannot be overstated, no matter your age, socio-economic bracket, or income level. A professional financial adviser will be able to examine your specific financial position and offer advice in regards to retirement, saving, buying a home, investing, entering the stock market, and so many other potentially daunting aspects of investment portfolios and financial positioning. To get started on planning your finances and to reach your financial goals, speak to your GSK Financial Adviser Perth

August 2, 2021

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.

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