Why Financial Advice is Your Smartest Investment

A lot of people think that financial advice is just for the wealthy, and it only helps the rich get richer. The truth is, financial advice can be useful for anyone who wants to improve their financial future.

Think of financial advice as a health check-up for your finances. Your financial adviser is like your personal trainer, helping you achieve the best possible financial health. By seeking professional financial advice, you’ll have a clear path to reach your financial goals, and that’s an investment worth making.

So, why invest in financial advice? Picture this: a young couple in their early 30s started investing in the stock market in 2019 to save for their kids’ private school fees over the next decade. Then, the COVID-19 pandemic hit, and their shares dropped by 35% during the March 2020 market crash. They panicked and sold their shares, taking a loss. However, a good financial adviser would have explained the risks, shared examples from their experience, and likely advised them to stay the course because they had a 10-year plan. And guess what? Within a year, the markets recovered and are now higher than ever.

Financial advice isn’t just about investing in the stock market. Whether you want to save for your first home, protect your children in case something happens to you, enjoy a comfortable retirement, or just understand what to do with your super or how to invest in the stock market, a financial adviser is like a one-stop-shop for most of your financial issues in life.

If you think about it, you’ve probably received informal financial advice throughout your life, whether it’s your parents telling you to save money from your first job or an Instagram ‘finfluencer’ explaining compound interest while dancing to a trendy song. A professional adviser can legally provide holistic advice by looking at your entire financial situation and risk tolerance to recommend the right investment portfolio for you. Plus, an adviser’s recommendations are based on research, which can give you peace of mind about your decisions, rather than constantly worrying about an investment you made based on a co-worker’s stock ‘tip’.

Now, you might be wondering if financial advice is cost-effective. The industry has gone through some big changes since the Financial Services Royal Commission of 2017-2019, with new education and compliance requirements to better protect clients’ interests. As a result, the number of financial advisers in Australia has dropped from around 28,000 in 2018 to just 15,872 in 2023. The good news is that while there are fewer advisers to choose from, the quality of advice is expected to improve significantly.

According to Russell Investments’ “Value of an Adviser” report, advisers added about 5.2% to their clients’ portfolios during the 2020 COVID-19 pandemic. However, the real value of financial advice goes beyond comparing fees against investment performance or tax savings. A financial adviser like the team at Virtuous Wealth can be a sounding board for your financial ideas, a resource to answer your questions (no matter how simple or complex), provide research-backed recommendations, and guide you over the long term based on their experience.

The time is NOW. Are you ready to make the investment? Your day-to-day job might not allow you to focus on your finances, our primary responsibility is to help you handle your money efficiently. Why not take the first step and book an appointment with Virtuous Wealth today? Your future self will thank you!

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Get in touch with Virtuous Wealth today to take the first step on your journey to financial freedom.