In today’s complex financial world, we are all compelled to make plenty of financial decisions. Yet according to a report by the Australian Securities and Investments Commission (ASIC), 60 to 80% of adult Australians have never sought the help of a financial advisor.
Most think that professional financial advice is impossible for them to afford. Furthermore, they think that even seeking expert advice would be expensive.
Financial advice means different things to different folk. The ASIC inquiry into Financial Products and Services in Australia found Aussies tend to define financial advice as any form of information that can help them in their decision making or setting household budget.
Here are some situations where everyone agrees getting help is a good thing:
• If you are thinking of early retirement and you want to help you manage your retirement funds, you have to work with a financial advisor. They can help you in various ways and forms of investments like cash, property or shares. Superannuation is a sensible decision to make because it results to favorable tax treatments.
• When you lack confidence as a consumer to financial matters and are quite uncomfortable in decision making regarding your finances. This will help you in achieving peace of mind and other psychological benefits to you. When you know you have access to quality financial guidance can provide assurance and confidence for you.
• If you are under extreme personal pressure yet you are ought to make a financial decision, it is time to seek the counsel of a financial adviser. Whether you are going through marital breakdowns, family crisis, redundancy of work, or retirement can be extremely stressful. A professional financial counsellor will be your support during these trying times.
• If you feel sudden loss of control with your finances, your financial advisor can be of important value. They can motivate you to stick to your financial plan, save for a comfortable retirement or build funds for a project.
• Damaging debts can be a source of stress. You need to work out with your financial advisor which debts should be addressed first or which can be put off each month. You should learn how to set up a budget and pay off all the bills in no time.
• 2 ASIC, PJC Inquiry into Financial Products and Services in Australia: Submission by the Australian Securities and Investments Commission, August 2009
• 76 Financial Planning Association, ‗FPA unveils first Code of Professional Practice‘, viewed 19 November 2009, http://www.fpa.asn.au. 77 Office of the Hon Chris
• Bowen MP, Future of Finan cial Advice Information Pack, 26 April 2010, p. 8