A Financial Adviser's role

What does a Financial Adviser do?

Most people think of seeking the aid of a Financial Adviser to invest in shares or dabble in the stock market, but this may be only a small part of what a Financial Adviser does in their day to day operations. 

One of the key roles of a Financial Adviser is to use their knowledge and expertise to help you construct a sound, personalised plan to achieve your financial goals. This means that investments are not the only thing considered. The Statement of Advice (SOA) that your Financial Adviser prepares for you will also examine your savings, budget, insurance and tax strategies.

Your Adviser doesn’t work off their own agenda! You are very much involved in the planning process. You will provide your Adviser with information about your current financial situation and you will discuss your goals so that your Adviser has a good understanding of what it is you want to achieve. Your Adviser will also consider your tolerance for risk which will be determined using a questionnaire.

Your Adviser will also discuss your estate plan with you and if you are already working with an Accountant and/or Lawyer, your Adviser may need to liaise with them on certain matters. Pretty much anything that is related to your current and future financial position will be considered.

Your relationship with your Adviser doesn’t necessarily end with them providing you with a plan forward. You can continue working with your Adviser so that they can regularly review your financial position and existing plan and make any modifications as required by shifts in markets and/or financial laws. Your Adviser is also there to keep you accountable for smart money management by advising against making emotional decisions about your money.

When should you engage the services of a Financial Adviser?

Pretty much whenever you need a clear plan of action for managing your money! This could be when you start your first job, after receiving an inheritance, or it could be when you are sorting out your retirement! It is never too early or too late to seek advice!

When it comes to considering the fees associated with hiring a Financial Adviser, this needs to be thought of as an investment. What are you prepared to invest today for greater results in the future?

A person vs Robo-advice

Given today’s technology, it is no wonder that you can jump onto a computer program, enter your data and be provided with financial advice. Don’t forget, robo-advice is generated using algorithms and are limited to their programming. A real person can read between the lines, ask you alternate questions and delve further into situations that require a more complex assessment.

In summary...

A Financial Adviser can...

  • Discuss your financial situation with you and formulate a financial plan to help you reach your financial objectives.
  • Provide advice and/or manage your investments, superannuation, retirement and estate plan based on a strategic plan.
  • Help you make smart money choices that are not emotionally driven. 

What they can't do...

  • Use a crystal ball to determine how the markets will react to current events. 
  • Control the fluctuation of interest rates and/or property values.  
  • Make decisions about your finances without your consent.  

If you would like to know if engaging with a Financial Adviser is right for you,

book in with Shylea for a FREE, no obligation consultation today!

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