Managing finances strategically and with intention
“What value would come from working with a financial advisor?” The simple fact that this query is seldom brought forward by someone already working with a professional financial advisor answers this question in part.
“Only the very wealthy need a financial planner.” Because of the “accessibility thresholds” of some financial professionals, we can see how some people think that way. However, being a good financial planning client is more about attitude. If you’re someone who wants to manage their finances strategically and with intention, you’ll enjoy the benefits of working with an advisor regardless of how much discretionary income you have.
A benchmark study was commissioned and completed1, the results of which provide insight into the potentially life-changing impact of financial planning. In summary, the study revealed that people who engaged in comprehensive financial planning:
- were substantively more likely to report feeling on track with their financial affairs than those with limited or no financial planning;
- felt more confident in their plans to retire;
- improved their ability to save;
- were more confident that they are prepared to deal with the challenges and bumps in life such as unexpected financial emergencies, tough economic times and ensuring their loved ones are financially looked after should something happen to them; and
- felt more confident in reaching their discretionary lifestyle goals, notwithstanding the importance of saving.
Updated | 2020
From the report abstract:
“[The report] discusses the 2018 survey and presents the updated results (the determinants of having a financial advisor and the impact of a financial advisor on the value of assets)…[The report] sets out our conclusions. In short, households in all income groups benefit from having a financial advisor.
From the conclusion:
[T]he 2018 results confirmed the positive impact of having a financial advisor: for example, the average household with an [financial advisor] for 15 years or more had asset values 131% higher than an average “comparable” household without a financial advisor. The financial discipline provided by an FA and the related efforts to increase household savings were the main gamma factors explaining this difference.