With talks of a big recession and rising costs, many people are worried for their financial future. During these tough times, many Australians turned to financial advisers. Advisers do more than just watch the market. They help with taxes, understand rules about public benefits, and guide people through big life choices. They’ve shown they’re worth their weight in gold this past year.
In this blog article, we’ll explore the value of financial advice, specifically highlighting the five priceless benefits of partnering with a professional to guide your financial journey.
1. Financial planners can help you with proper asset allocation
Australia’s investment world is full of exciting choices, from city properties to new tech startups. But it’s not just about chasing the latest trend. Smart investing means having a plan. Financial advisers help with that. They watch the market, guide choices, and adjust plans as things change.
Everyone has unique dreams. Maybe it’s a beachside retirement or a city apartment. Advisers get that. They craft plans that fit individual goals, considering how much risk one is willing to take and how long they plan to invest.
Investing comes with risks. That’s a given. But a good strategy can help manage those risks. Financial advisers use diversification, spreading investments across different areas. This way, not all money is tied to one place. The goal? A balance between safety and growth.
Financial planners play a crucial role in client’s financial situation, risk tolerance, and investment objectives to create a robust strategy that navigates the intricacies of the investing world.
An advisors job is to ensure that your portfolio is well-rounded and resilient and optimised to align with your long-term goals.
2. Financial planners can help you check your emotions when investing
Recent and unexpected events can drastically change the world and impact your investments. from the sudden appearance of COVID-19 and the Ukraine war to unexpected banking crises in the US and soaring interest rates.
These disruptions sent markets on a roller-coaster ride, with the values of our portfolios taking temporary hits, making many of us nervous.
Without expert advice, it’s easy for you to get swept up in the chaos. You might feel the urge to buy when everything seems rosy and quickly sell out of fear when the mood darkens. It’s a natural, yet often expensive, reaction.
Advisers are here to help during these challenging times, offering more than just financial advice. They’re here to coach you through these emotions, guiding you away from common pitfalls. Their insights and steady hand are crucial in helping you stay committed to your long-term goals, even when the markets are turbulent.
Think about past events like the global financial crisis (GFC). Even though it feels like a distant memory, its effects lingered for many of us. But advisers have always stressed the strength of a well-planned portfolio. Both the GFC and recent events have shown that, with the right approach, you can navigate through even the roughest financial challenges.
Now, more than ever, their wisdom is essential. As we see rates jump from record lows to heights we haven’t seen in over a decade, many of us feel like we’re in uncharted territory. With an adviser’s guidance and emotional coaching, you’re better equipped to manage your feelings and continue on your journey to financial well-being.
3. Financial planners can help you make smart financial decisions
Advisers are more than financial gurus; they’re life navigators. As life gets messier with evolving family dynamics, tricky regulations, and external disasters, the guiding hand of an adviser becomes vital. Think of them as your GPS through the maze of life’s financial stages: from the hustle of early adulthood, through the contemplative years of middle age, to the golden ages of seniority.
According to the 2023 Intergenerational Report, Australia’s elderly population is set to surge. The next 40 years will see a doubling of those above 65, a tripling of those above 85, and a six-fold increase in centenarians. This demographic shift means that many Australians will face financial choices that previous generations might not have grappled with:
- Ever heard of the “bank of mum and dad”? For many grown kids, it may be the only opportunity to get a leg up onto the property ladder.
- Grandparents are reaching deeper into their pockets, making sure their grandkids get the best education, even as those fees continue to skyrocket
- Modern families mean second weddings, blended clans, and a spider web of estate planning.
- The “sandwich generation” is feeling the squeeze, juggling support for both their kids and their elderly parents.
- Flying solo in retirement? The choices, like deciding on superannuation contributions, are more diverse than ever.
Your financial journey will have its own flavour. One moment you’re climbing the career ladder, the next you’re juggling family and mortgages. Later on, health and legacy might dominate your thoughts. Whatever the chapter, advisers are there, making sure each decision is a step forward, not a stumble. They’re the allies ensuring your finances and family thrive at every unexpected twist and turn.
4. Financial planners offer technical expertise you can leverage on
Advisers aren’t just number crunchers; they’re financial guides navigating Aussies through the dynamic financial landscape. Consider this: a 2021 survey revealed Australians scored 68 out of 100 in financial literacy. With advisers constantly decoding regulatory shifts and cutting-edge products, their insights become our advantage.
The Baby Boomer generation is on the cusp of retirement. And with that comes not only decisions about pensions, estate planning, and aged care but also a whirlwind of emotions. Stepping back from work life and gearing up for those golden years can stir a myriad of feelings. Advisers understand this. They’re not just crunching numbers; they’re helping folks navigate the emotional currents of major life shifts.
In addition, financial advisors can explore Australia’s safety nets like childcare rebates or the age pension. They’re not just financial cushions; they offer peace of mind. Advisers ensure folks aren’t missing out on what they’re entitled to. This isn’t merely about dollars and cents. It’s about comfort, security, and trust. It’s the genuine care and deep dives into their clients’ lives that truly elevate advisers from mere consultants to life allies.
Ever peeked into the world of financial markets? It’s intricate, to say the least. For financial advisors, they’ve dedicated careers to mastering the art of financial solutions, turning jargon into actionable insights for their clients. Choosing to work with an adviser is like unlocking a treasure trove of hard-earned wisdom.
5. Financial planners can help you plan your taxes
While many may believe tax know-how is primarily the domain of accountants, the role of financial advisers in this space is crucial. Their grasp on markets, estate planning, and notably, tax intricacies, ensures that clients are well-positioned for optimal financial growth.
Superannuation is at the forefront when discussing tax-centric financial advice. Continued regulations, like the introduction of caps limiting capital held in tax-effective retirement funds, necessitate a deep dive into strategic planning.
But, tax planning doesn’t stop at superannuation. Advisers, with their comprehensive approach, also cater to tax implications outside superannuation, spanning investing to social security.
Here’s what advisers offer beyond superannuation:
- Investment solutions that employ low turnover strategies or tax minimisation tactics
- Insurance strategies that allow for tax benefits when holding policies in super
- Guidance on entitlements ranging from the Child Care Subsidy to the Family Tax Benefit and beyond
- Clarity on seniors’ benefits like the Age Pension and Home Equity Access Scheme
- Navigating the domain of small business grants and incentive payments
In a nutshell, tax planning isn’t just a once-a-year affair. It’s an ongoing strategy, a puzzle that advisers love to solve.
Valuable Financial Advice from Retirewise
As you work towards financial independence and a prosperous retirement, it’s essential to have reliable experts guiding you. This is where Retirewise steps in.
Our team of certified financial advisors is committed to helping you make decisions that boost your retirement funds.
Book a no-cost strategy session with our advisors today. We’ll discuss your objectives, review your financial situation, and present strategies to fast-track your journey to a fulfilling retirement.
Click below to arrange your strategy session with Retirewise Australia and make your retirement vision come true.