Making The Most Of Strategic Advice
Do you think of your adviser as someone who specialises in superannuation, insurance and investment products? While this is certainly true, many people don’t realise that a good financial adviser also helps them think about wider advice issues affecting their lifestyle. For example, what would be the impact if you wanted to work only 3 days a week instead of 5? What is the likely income your current rate of savings will generate in retirement? Can you afford renovations, or to invest in a new business, and still maintain your current lifestyle?
Strategic Advice looks at the wide scope of your circumstances; it covers risk, investment, debt, cash flow, estate planning as well as social security and includes an active ongoing advice relationship between the adviser and their client.
When we seek financial advice we often have an idea about what we want our adviser to address, and some of us may only require assistance establishing something specific like an insurance policy or a self managed super fund. But there are many other aspects in your financial situation that your adviser could help you with. Seeking Strategic Advice and not just limited advice will allow you to get the most out of your adviser and your finances.
How to get the most out of your adviser -
Services
The next time you speak with your adviser, come prepared with a list of things you would like to achieve in your life. Spend time discussing how you might be able to structure your situation to be able to do the things that are most important to you. For example, some young couples delay starting a family because they are worried about finances. Rather than waste precious time, why not ask your adviser to help model the impact of taking some parental leave, and suggest ways to make your plans a reality? Other times, older employees want to scale down the number of hours worked but don’t know the impact of this decision on their other plans. Talk with your adviser about these issues - taking that next step could be the key to reaching your goals sooner.
Communicate
Ensure you contact your adviser with details of any major event in your life. For example a marriage, divorce, birth of a child, sudden illness, inheritance or a new home purchase, can certainly change your financial position . By keeping your financial adviser up to date, you ensure that he or she can raise opportunities or issues with you when they are most timely. Have you told your adviser about your medium to long term goals? Or have your goals changed since you last met with your adviser? To ensure you are receiving Strategic Advice you need to let your adviser see the whole picture.
Ask questions
If at any stage in the financial planning process you do not understand what your adviser is recommending, don’t be afraid to ask questions. The more educated you are regarding your financial plan, the more ownership you will have of the process, ensuring you are getting the most out of the services on offer. Likewise, a good adviser needs to ask you a lot of questions to really understand your financial situation and goals.
Make sure your plan is on track with reviews
The key to Strategic Advice is communication. By engaging in regular reviews, both you and your adviser will ensure your financial plan is continuing to meet your needs. This is the time to update your adviser on any changes that have occurred since you last met if you haven’t already done so.
Let us worry
With regular legislative changes within the financial industry on taxation or superannuation, it’s hard to keep up and easy to get confused. This is why you seek the help from an adviser in the first place. Once you have your finances in safe hands don’t let the media or GFC hype get you down. If your strategy or portfolio require any changes your adviser will address these with you.
If you have friends who are feeling the pinch in their pocket or cant keep up with industry changes, why not refer them on to your adviser and let them have peace of mind too.