Although financial advice is highly valued, only a small percentage of Australians actually use a financial adviser to help with their finances.
According to the recently released BlackRock’s global investor pulse survey, only 15 per cent of Australians seek advice from a financial adviser and the majority of these people are in the 55-64 age bracket or those approaching retirement.
The survey also found that income played a part in a person’s decision to get advice as 25 per cent of people who earned over $150,000 used a financial adviser compared to 10 per cent who had a lower income. With many Australians living on a tight budget and new self-managing technology being released constantly, will there be a place for financial advisers in the future?
Although there is a small percentage of Australians who use a financial adviser, 89 per cent of these people believed that professional financial advice was extremely valuable. So what are the benefits of seeking financial advice?
A financial adviser can provide you with the professional, personalised advice you may need to make informed decisions about handling and investing your money. Financial advice can cover budgeting, tax planning, investments, estate planning, superannuation, government benefits and life and risk insurance.
Some other benefits include:
Goal Setting: If you’re at a crossroads with your finances and are not sure which way to turn, a financial adviser can help you. They can help you work out your long and short term goals such as money for retirement, property or your children’s education and then make a plan to help you reach them.
Protection of your money: A financial adviser can help you plan for the unexpected. Illness or injury could drastically affect your life and also your finances. By seeking financial advice, you can put provisions in place to help protect your wealth.
Build your portfolio: It doesn’t matter if you are a first time investor or an experienced investor, a financial adviser can create a strategy to help you not only build your investment portfolio, but help you manage the investments along with other debt and living expenses.
Although it is clear that advised investors truly value financial advice, will the younger generations place the same amount of value on it in the years to come?