Provided by Mercer: 15/6/09
In the face of ongoing global financial uncertainty, more people are turning to financial advisers for guidance.1 However, some are still reluctant to get advice, citing the high cost as a deterrent and questioning the value of advice when confidence in the ability to earn a good return is low2.
But the value of good financial advice lies in more than just earning a return. Intangible things such as knowledge, comfort and peace of mind are key benefits of an ongoing working relationship with an adviser who can tailor planning and advice to your personal needs, whether you need advice for a specific event or for planning for your future.
Here we answer some key questions about getting good value financial advice.
When is the right time to get financial advice?
As a general principle, the earlier you seek financial advice, the better off you may be. People often seek advice in response to a specific event, like retirement, death of a family member or when they’re looking to buy a house, but being responsive rather than proactive might mean missing out on opportunities. By the time you seek help, it may be too late and you may find yourself compromising your goals in order to meet an immediate need. Forward planning is the key.
What value is there to be gained from getting advice?
Getting good advice may allow you to take advantage of the financial opportunities and choices available to you. Arming yourself with knowledge and information can help put you on the front foot, giving you a sense of control and, more importantly, peace of mind.
But financial advice is about more than knowledge. It’s about building a framework for making decisions to suit your current lifestyle as well as your needs in the future. And that means being supported in accessing a range of options and choices that are right for your personal situation and needs.
And whilst there are costs for getting that advice, research has shown that over the long term, the projected financial benefit of getting that advice can outstrip what you pay for it in the first place3.
What are the risks of NOT getting advice?
One of the risks associated with not getting advice may be that of missed opportunities. These can take a number of forms, including paying too much tax, or missing out on claiming benefits for which you are eligible. Another significant risk may be not having insurance cover or, if you do have insurance cover, having an insufficient level of cover for your or your family’s needs. Getting information and assistance is the first step towards ensuring you don’t miss out.
How does a typical financial advice session work?
In some cases, your first consultation with a financial adviser may be free of charge. This can provide you with the opportunity to make up your mind whether the adviser’s style and methods suit you.
You’ll generally be asked for a range of information about your lifestyle and financial situation as well as what you hope to achieve by seeking advice. The conversation should also cover the scope of the service the financial adviser can offer you.
Make sure you’re comfortable
It’s important to work out for yourself whether the adviser is someone with whom you can be comfortable working. Remember, it’s your personal financial situation and you’re seeking their expertise. To gain the greatest value, find an adviser with whom you can build a productive working relationship.
A good financial adviser will help you understand how their advice will benefit you, before you make a commitment to using that advice. The value of the advice they’re offering should be clear. It should provide a common-sense view of “where to from here” and most importantly, it should help give you comfort, confidence and peace of mind.
Like some advice?
Mercer financial advisers can assist you to develop a financial plan to help you get on top of your finances. To make an appointment to discuss your needs, please contact us on
1800 633 403. The initial consultation is free of charge.
1 Mercer Super Trust Member Experience Study – March 2009: 28% of respondents are “very likely” and 34% are “fairly likely to seek professional advice about their investments”
2 Mercer Super Trust Member Experience Study – March 2009: verbatim responses
3 Good advice is money well spent. Case study booklet, Financial Planning Association of Australia – December 2008
This information has been prepared by Mercer (Australia) Pty Ltd ABN 32 005 315 917 for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any investment decision.
