The importance of financial advice
It’s a common response for people to think that as their finances are not complex, they don’t need the guidance and support of a financial planner. However, with most working Australians now accumulating savings through compulsory superannuation, proper advice can be the difference between retiring at age 60 or 70 or the difference between a basic retirement and a comfortable retirement.
A good financial adviser can help you identify goals, set an overall financial plan, and avoid or deal with road bumps. They are there to make sure things get done when they need to be done and keep you accountable for your customised plan.
Managing your finances could be to help fund your children’s education, take a career break, buy that special something that you’ve always wanted, or just live a comfortable retirement. Getting great financial advice takes all of this into account and aims to meet your day-to-day living expenses, manage your debt, and ensure tax effectiveness, so you can achieve your goals now and into the future.
Your world, and your family’s world, can dramatically change through unexpected illness or injury. A good financial plan will consider life’s ups and downs and take measures to protect the wealth you’re building. You must think about what would happen if your adult child was to suffer a major medical injury like a car accident and was hospitalised for months. How would this impact your life as well as theirs? If they were in the unfortunate situation of not having proper insurance, their financial position would deteriorate and it’s likely this would impact your ability to work and comfortably cover your own financial obligations. A trusted financial adviser takes all this into account and provides strategies for all contingency plans.
The unfortunate fact is that over half of all Australians underestimate the total income they’ll need to live comfortably in retirement. Whilst more people are actively seeking financial advice, there are many that don’t seek professional advice especially at critical life stages including approaching retirement.
IOOF’s paper The True Value of Advice shows that 90% of those surveyed agreed receiving financial advice was critical to their success. Those who receive advice are more than twice as likely to handle unexpected adverse events than those who do not receive advice.
The earlier you get that advice the easier and better off you could be. Starting early is a way of ensuring you will have the financial freedom you deserve. Get your children started by referring them to a trusted adviser and covering the cost of the initial consultation. If you’re already a client of JBS Financial Strategists and your children are under the age of 30, they can come and see us for a complimentary appointment. They’ll get a full analysis of their situation and any recommendations to improve their position in a no-charge Statement of Advice.
Reach out to the JBS Financial team here and help someone you know get started.
Ref: IOOF paper The True Value of Advice – IOOF