Let’s face it, Australia’s financial investment rules and regulations are onerous and confusing.
It takes years to be qualified for most professions in the industry, so it’s unrealistic to expect your everyday Joe to keep up with the latest.
Financial advice is not only a good idea, it might just turn your life around. New research shoes that well-advised people are happy people.
Business research company MYMAVINS found that people who sought out financial advice measured higher on many aspects of quality of life, including retirement advice.
Read: Are you financially vulnerable?
The Financial Planning Association of Australia (FPA) commissioned the group to research more than 1000 people, including about 400 who had been given financial advice.
The study found that people who had consulted a financial adviser had a better quality of life. They also enjoyed a better family life, better mental health and more confidence about having a comfortable retirement.
“They are more likely to be living with purpose, are more optimistic, have more resilience in the face of challenges, are more connected with others, and even feel healthier,” the report stated.
The top 10 key benefits advised Australians received from a financial planner were:
- greater confidence in having a comfortable retirement (47 per cent)
- improved financial wellbeing (40 per cent)
- improved financial decision making (37 per cent)
- improved money management (33 per cent)
- improved general wellbeing such as peace of mind, health and social aspects (32 per cent)
- improved ability to achieve desired standard of living (32 per cent)
- helped you achieve your financial goals (30 per cent)
- greater financial control (28 per cent)
- greater wealth growth (28 per cent)
- improved financial freedom (27 per cent).
FPA chief executive Sarah Abood said the research clearly demonstrated the value of financial advice beyond dollars and cents.
Read: Many older Australians can’t afford insurance
“On average, advised Australians rate their overall life satisfaction at 7.3 out of 10, significantly higher than the 6.4 rating from the unadvised,” Ms Abood said.
“Australians with an active relationship with a financial planner are better off in multiple ways. They suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth.
“Regardless of the client’s wealth or age, the study found advice promotes and enables better quality of life.”
Advised retirees are happier retirees
The study also found that pre-retirees who sought financial advice had twice as much confidence about the next phase of their life when compared to those who had not been advised.
Advised early retirees have greater confidence their money will last the rest of their retirement than those who are unadvised (63 per cent versus 40 per cent).
They’re nearly twice as likely to expect at least a comfortable retirement compared to those who are unadvised.
Read: Eight passive income ideas to help you build wealth
Two in three live a comfortable or lavish lifestyle compared to only one in three of those unadvised.
“Advised Australians overwhelmingly believe advice has made them tangibly financially better off and that its value outweighs the cost,” Ms Abood said.
If you are thinking of seeing a personal adviser, the government website moneysmart.gov.au says it’s a good idea to first collate all your financial information such as debts, assets, expenses, etc.
Make sure you discuss costs, the scope and frequency of advice and the level of authority to manage your investments.
All licensed financial planners must provide you with a Statement of Advice. This should cover the basis of the advice given and any payment schedule.
Have you received formal financial advice? Did it give you more confidence about your future? Why not share your experience in the comments section below?
