Category Archives: Financial Adviser

The Value of Advice

The Value of Advice:

It is often difficult to ascertain the advice value, provided by financial advisers. It’s difficult because much of the value we provide to clients, or more particularly, the value client’s state they get from their relationship with us, is not easily quantifiable.

However, Russell Investments has recently released their “2019 Value of an Adviser Report” where they have tried to quantify the value of our advice. In addition, they have identified areas where value is provided but the value in these areas was difficult to quantify.

Most of the value that they can quantify are for things advisers do every day, often without clients being aware. These include:

  • Ensuring your portfolio asset allocation remains in line with the risk profile originally agreed to,
  • Advice and cautioning clients against poor investment decisions,
  • Providing guidance around the tax implications of decisions you are making.

These day to day tasks are estimated to contribute around 4.4% on average per year to the performance of client portfolios.

But Financial Advisers do much more than this. Getting a plan in place, helping you to focus on the outcomes that you have indicated are important to you. Helping develop strategies that will assist you in:

All of these things have value, but that value is difficult to quantify in dollar terms, but knowing these strategies are taken care of, can help you sleep at night. What value do we place on peace of mind?

If you are considering getting advice, speak with a Certified Financial Planner, who is part of an FPA Professional Practice. Take advantage of the Value of Advice.

Peter Jordan is a Sub Authorised Representative 244948 of Joredg Pty Ltd as trustee for the Jordan Hybrid Fixed Trust, Corporate Authorised Representative 473095 of Keystone Partnership Pty Ltd AFSL No 466137

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The Ideal Financial Adviser

financial-adviser

The Ideal Financial Adviser:

The Ideal financial adviser is “someone who likes you and doesn’t care about  our feelings.” This is an adaptation of a quote from Daniel Kahnemann.

Good advice is not always something we want to hear or read. It does not always fit with what we think or what we want to do. In this age of instant gratification, financial advice can often fall into this category.

Spending hard earned money on new cars, overseas holidays, perhaps even a new home, is not always wise and does not necessarily fit into your financial plan.

Do you have a financial adviser, and if you do how strong is he or she when it comes to “encouraging” you to stay the course, to stick to the plan, to follow the course of action that will give your financial plan the best chance of success. If purchasing new cars, overseas holidays, or a new house is needed, then the financial plan needs to be adjusted and you need to understand the cost of this spending in terms of the achievement of your longer term goals.

And, do you respect the financial adviser enough to listen, to listen to what she or he says, and to take it on board and act on the recommendations.

And if you don’t have a financial adviser, how do you know you are on track to meet your financial goals, if in deed you have defined the goals and the path to success in regards to those goals.

Financial Planners are a unique breed – we need to listen carefully, to analyse the numbers, to be empathetic, and yet to be firm, and to develop workable strategies and monitor the outcomes. Financial Plans take time to yield results, they are not short term. You and your financial planner need to be able to work together to achieve the stated goals. Like life and all relationships, there will be good days and not so good days, but focusing on the goals should result in eventual success.

Our firm, ClearWay Advice and Financial Management is a FPA Professional practice.