Seeking financial advice may initially come with a cost, but the long-term benefits can make a significant impact on your financial wellbeing. According to many studies, investors who received advice over four to six years accumulated 60% more assets compared to those who did not seek advice.
We know that a household with a robust long-term financial plan would be more likely to have liquidity reserves, accumulated assets, an understanding of market behaviour, less reliance on government support, and other advantages in terms of overall wellbeing (Irving et al., 2011).
Let’s compare:
- Real estate agents commissions can be as high as 2.2% of the selling price.
- Do you have a cleaner? 3 hours a week add up to over $3000 annually.
- Legal fees when navigating divorce start at $10,000.
- Have you got a gym membership that you are not utilising? That is at least a $1500 annual cost.
- Do you get your hair coloured? We all know how much that process costs.
Life is undeniably expensive, but instead of focusing on the costs, let's consider the benefits of a comprehensive financial plan.
Here's how a financial plan can make a difference in your life:
1. Stop wastage - Let's start by making the most of what you have right now. We will help you with budgeting and managing your debts effectively.
2. Navigate volatility - Emerging research undertaken during the pandemic finds that those in long-term advice relationships are better prepared financially and behaviourally (in terms of market volatility) and thus are more likely to be able to ‘ride out the storm’ and not be forced to liquidate assets at market lows or panic sell (Loy et al., 2021).
3. Investment strategy - Building a passive income stream for your future is essential. We will guide you in creating an investment strategy that aligns with your goals.
4. Retirement strategy - Superannuation and retirement planning advice are crucial. We will help you map out the steps needed to secure your desired retirement income.
5. Tax minimisation - We will work alongside your Accountant to ensure you benefit from tax minimisation strategies and deductions.
All these sound great, but how much will it cost you?
Initial advice can range from $2000-$4000 as the preparation is greater, however the annual costs are much lower once a plan is implemented. In most cases the advice is tax deductible too - well worth the effort.
Contact us for a free, no obligation meeting with one of our Financial Planners.
Kylie Harding is an Investment Adviser who believes in free access to information about building financial literacy at every stage in life has the potential to empower women and inspire economies.
Contact Kylie today on [email protected] or 02 9998 4206.
