Investors are reaping the benefits of developments across the financial planning landscape.
Major changes to the way financial advice is provided are leading to a growing professionalism in financial planning.
The current industry reforms support the need for financial planning among the many Australians who say they are not confident and would like to learn more about investing to ensure they have enough money for retirement, according to a survey by the Financial Services Council.
The survey found that investors who use a financial adviser save more than those without one and report a greater sense of control because they’re more aware of their financial options.
According to the survey, Australians who receive financial advice will have substantially more in retirement:
- a 30 year old would save an extra $91,000
- a 45 year old would save an extra $80,000
- a 60 year old would save an extra $29,000
New laws, such as the Future of Financial Advice (FOFA) reforms, are also designed to improve the trust and confidence of investors.
“It is a concern that only one in five Australians seek financial advice,” said Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten in a statement.
While the financial services industry and the government are still negotiating the final details, the new reforms are designed to encourage those people who have doubts and concerns about the value of such advice, or who have just never thought about it – those other four in five people – to perhaps in the future get financial advice," Shorten said.
A financial adviser aims to understand your needs and your attitudes to money and investing. Then they work with you to explore your options and to create a financial plan based on your goals.
And that’s just the beginning of the relationship. With a plan in place, regular review is important and it’s a good idea to keep in touch with your adviser to make sure you keep on track and identify any new opportunities.
So if you’ve put off seeking financial advice, now more than ever is the time to reconnect with a financial adviser to help you to make the most of your investments and plan towards a comfortable lifestyle in retirement.
What can your adviser do for you?
- Help manage your cash flow
- Look after your estate
- Put your debt to work
- Explain how things work
- Assist you with a savings plan
- Keep you informed
- Invest your money
- Teach your family basic financial concepts
- Help you realise your goals
- Plan for your future
- Take care of your retirement
- Offer you special investment opportunities
- Protect your lot
- Connect you with experts
Article by Tracey Evans
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