In today’s world, making the right financial decisions now can pay significant dividends in the not so distant future. Despite this, many Australians are still deciding to navigate the complex maze of investment options, retirement planning, and wealth management all by themselves. This is a big responsibility and can be easily overwhelming, especially when you are already juggling full time work with raising a family. To help you, we have set out the top 6 ways a financial advisor can make managing your finances as simple and stress-free as possible.
Maximising Returns on Investments
Whether you are considering stocks, bonds, or property a financial adviser can help craft a tailored investment strategy which aligns with your goals and risk tolerance. By procrastinating, you risk leaving your money in underperforming assets, preventing you from achieving your full financial potential.
HUB24 (Australia’s leading Self-Managed Super Fund platform) conducted an experiment into the impact that delaying decision making had on investment performance in volatile markets.1 They found that after 1 week of delay, over 42% of the benefit was already gone. After 6 weeks, 60% of the benefit was gone. A financial advisor can help you navigate market volatility to ensure you are best placed to achieve your financial goals.
Navigating Complex Tax Regulations
Australian taxation laws are notoriously intricate. Failing to navigate them effectively and efficiently can result in unnecessary tax liabilities. A financial advisor can provide detailed insights into tax-efficient strategies, by comprehensively analysing your income streams, current investments, possible deductions, your financial goals and different tax structures.
By conducting a thorough assessment, financial advisors can identify potential opportunities for tax optimisation and devise strategies to legally minimise your tax burden. Procrastinating on the decision to seek professional advice, may mean you are paying more tax than is necessary and therefore making it harder to achieve your financial goals.
Planning for Retirement
Whilst retirement may seem far away, the sooner you start planning the stronger your position will be when it comes time to retire. A financial advisor can assess your current financial situation, project future needs and devise a comprehensive retirement plan tailored to your goals for retirement. In essence, partnering with a financial advisor empowers you to shape your financial destiny proactively. By initiating planning early and leveraging expert guidance, you can fortify your position for a fulfilling and secure retirement journey.
Protecting Against Life's Uncertainties
Life is unpredictable, and unforeseen events such as illness, disability, or premature death can derail even the most detailed financial plans. A financial advisor can recommend appropriate insurance policies to safeguard you and your loved ones against such possibilities. Do not be in a situation where you are left saying “I should have, I would have and I could have - but I didn’t.” Consider whether you should seek financial advice to ensure you are best placed to deal with life’s curveballs.
Managing Debt Effectively
Debt represents a complex financial reality, acting as both a tool for enhancing purchasing power but also as a source of considerable risk if it is not managed with care. It is therefore important to ensure you are navigating the use of debt as efficiently and effectively as possible.
A financial advisor can help plan a debt reduction strategy or help explore refinancing options to lower your interest expenses. This can provide you with the peace of mind that you are doing everything possible to make yourself debt free. Taking a proactive approach to debt empowers you to regain control over your finances and work towards alleviating yourself of the stress and anxiety often associated with debt. By procrastinating, you are allowing the burden of debt to linger for longer than necessary, weighing down your ability to achieve your financial goals.
Each day of delay translates to unnecessary interest expenses piling up, steadily draining your financial resources. By enlisting the support of a financial advisor, you can navigate the complexities of debt management effectively and work towards achieving lasting financial freedom.
Setting Clear Financial Goals
Whether it's buying your first home, funding your children's education, or embarking on a dream vacation, financial goals give purpose to your wealth accumulation efforts. A financial adviser can help crystallise your objectives, break them down into actionable steps, and monitor your progress along the way. Delaying advice may mean delaying the realisation of your aspirations and pushing your dreams further out of reach.
There it is, the top 6 ways a professional financial advisor can help you in your financial journey. Of course, financial advisors can do a lot more and if you have a specific issue or concern it's always a good idea to see if your financial advisor can help.
Taking the first step to achieving financial freedom is always the hardest. Sometimes seeking financial advice can seem overwhelming, but the thought of leaving your finances to chance can bring about significant anxiety. This is why we have created our 100% free 3-minute WealthCreate Quiz, which will highlight the areas of your personal finances that need some attention. Don’t delay it any longer, take the first step towards achieving your financial dreams by taking the WealthCreate Quiz now.
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Disclaimer: The information contained or implied in this article is factual information and provided for educational purposes only. It should not be taken as constituting financial advice or professional advice. It is not intended to imply any recommendation for any financial product, give an opinion about a financial product, or influence your decision about financial products. Whether a financial product is right for you will depend on your own personal circumstances. You should consider seeking independent financial, legal, taxation or other professional advice before making any decision.