It’s interesting to note that many of us are quick to pay a professional or expert in most areas of our lives from cutting our hair to doing the mechanics on our car, but, when it comes to personal finance, many scoff at the idea of paying someone to advise them on the best way to handle their money and assets. Often individuals believe they can’t justify the expense.
However, the fact is money does not come with instructions. Factor in the reality that Australian Taxation is incredibly complex and multifaceted, plus the seemingly countless areas of personal finance that need attention and deliberation such as tax, assets, liabilities, income insurance, investments, lifestyle funding, retirement planning, and more, and you get the picture … it’s an area in which you can definitely benefit from receiving professional advice and direction.
Here are some benefits when partnering with a professional Financial Adviser.
Avoid (Very) Costly Mistakes
While a savvy financial adviser can certainly provide advice on how to get the most from your money across managing your taxation, investments and retirement strategy, one of the areas that is perhaps where most money is saved, is by avoiding costly mistakes. In fact, financial mistakes are often the most costly of all.
A professional planner knows all the financial traps for multiple situations and scenarios that can be destructive to your financial health. For instance, paying too much in taxes and fees or not having adequate insurance protection, which can result in catastrophic financial consequences.
Financial Advisers See the Gaps
It’s a financial adviser’s duty to ensure you have all your bases covered, from disability insurance to an estate plan in the event of a death. While many of us prefer not to pay attention to these possibilities, a financial adviser can look at your situation without letting emotion inform where they focus their attention or allow it to cloud their judgement.
A financial adviser will consider the risks of not having appropriate plans in place for a range of situations you may not even think of and can help you understand what would occur if you did not have the appropriate documentation prepared. For instance, a strategy for down markets or an emergency plan should your health costs double or you need long-term care. This all leads to peace of mind and lower stress levels.
Experience Trumps Interest
It’s true, you are probably more interested in the state of your personal finances than anyone else, but interest is not sufficient to plan and optimise your financial future. While there is an abundance of financial information readily available in the way of articles, whitepapers, books and reports, understanding and applying this information are two vastly different things. Being financially knowledgeable is commendable and highly encouraged, but without the ability to distil this excess of information in determining what is personally applicable, actionable, and long-term worthwhile, has little value.
As Mark Twain said, “Knowledge without experience is just information”. A financial adviser has working experience across numerous situations and clients, and a current and comprehensive understanding of the ever-changing financial climate, giving them a broader perspective when advising an individual. With years of professional and real-world training, exposure to the best and latest industry tools and ongoing professional development, a financial adviser is in the best position to quickly assess your financial condition and make recommendations that are based on best practices, but also tailored to your unique needs.
Hiring a financial adviser can be a significant investment, but one you will rarely regret in the long haul.
Interested in learning more about how TWD can become your trusted financial adviser? Contact our office at firstname.lastname@example.org to speak to a financial expert.