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The value of obtaining financial advice

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There has been quite a lot of noise in the media over the last 12 months or so about Financial Advisers and their fees and charges.  Unfortunately there has been little or know discussion as to whether people were getting value for these fees.

A recent article released by the Financial Services Council posed the question "What is the Value of Financial Advice?  

They had commissioned a research paper on the topic and we thought it would be a good time to to let you know some of the findings and outcomes from the research.  We can provide a link to the full report if anyone is interested, just let us know by return email.  

Firstly though, Who or what is the Financial Services Council.  Their web site states "The Financial Services Council represents Australia's retail and wholesale funds management businesses, superannuation funds, life insurers and financial advisory networks. Our members are responsible for investing $1.7 trillion on behalf of more than 11 million Australians."  

Their CEO is John Brogden.  

Their report found, among other things that -  the people with advisers on average saved an additional $1,725 per year than those without advice and after Financial Services fees, on average saves $1,590 more than those without an adviser.  This lead to additional wealth in retirement of $90,000 for those who  sought advice at age 30, $80,000 for those who sought advice at age 45 and $29,000 for those who waited to age 60. 

This begs the question, should you wait until you are wealthy to call us, or can we help you get there and work with you?  

  • Those with advisers were more likely to have personal insurance     
  • by a multiple of 4 for each type of insurance     
  • held $29,000 more in Life insurance on average      
  • held $5,000 more TPD cover    
  • held similar levels of income protection.   

The intangible benefits advisers provided included

  • providing peace of mind
  • greater control of finances
  • improved prospect of a comfortable retirement
  • helping in the avoidance of bad investments
  • making it easier to follow a budget
  • creating an aiding the ability to save.  

If any of this sounds interesting to you, give us a call and book an appointment to see us.  It is never too late or too early.

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