10 Good Reasons To Use An Impartial Financial Adviser

Financial planning and advice are not just for the very affluent – everyone can benefit from it. Good financial planning can help you achieve your future goals and aspirations and secure you and your family’s long-term future. Here are 10 reasons why you should speak to an impartial Financial Adviser.

1. To Protect Your Loved Ones

There are basically two types of Financial Adviser, firstly the Financial Advisers that are aligned or tied to one particular Product Provider (In House/Direct Sales Advisers) who are only advising on their Company’s own products (limited choice). Then, there are, non-aligned Financial Advisers, who offer a full range of different product provider plans, from the marketplace and can advise you which one is best suited should the unthinkable happen. An impartial financial adviser will match marketplace product provider products and will assess your financial position and guide you through the best options to protect yourself and your family, whether you are single, married, have children or they have long left home. Whatever your needs, an adviser can help ensure personal tragedy does not turn into financial crisis.

2. To Find the Right Combination of Assets

Investment is as much about protecting the potential downsides as it is about targeting maximum growth. High returns are often associated with high risk – and not everyone is happy if their investment falls by a third or more overnight. An impartial Financial Adviser will make a detailed assessment of your attitude to risk before making any recommendations. They will also ensure you don’t put all your eggs in one basket by helping you diversify not only across asset classes but also across accounts, individual funds and product providers.

3. To Help Plan your Spending and Saving

To secure your long-term financial future, you need to build some assets, initially to get you through the rainy days and then to pay for those holidays and luxuries. So, step one is to plan your spending so that you can begin to save – and step two is to plan to save so you can build your wealth as efficiently as possible. Regardless of whether you currently have $10 or $10,000, an impartial Financial Adviser will look at your situation and find the best starting point for you.

4. To Obtain an Objective Assessment

Every new product or investment opportunity is accompanied by hype, proclaiming it is the best ever –but that does not mean it is right for you. Investors the world over have been and will continue to be caught out by market bubbles or high charges because they don’t take a step back. A financial adviser knows how products and assets work in different markets and can outline the downsides for you as well as the benefits. Between you, you can then make a more informed decision about what hype you can believe – and what products you really need to avoid.

5. To Help you Plan for Retirement

Once your short-term saving needs have been met, you are then in a position to start thinking about your longer-term goals. People are becoming more aware that they cannot rely on the Government for more than the absolute basics. However, planning for retirement is a complex business and there are many different options available.

Superannuation/Pensions have come a long way in terms of KiwiSaver and other Superannuation/Retirement plans flexibility and offer a wide range of investment options. An impartial Financial Adviser will not only help sift through the many rules and product options but can also help construct a portfolio to maximise your long-term prospects.

6. To Save Money

Once your risk and investment assessments are complete, the next step is to look at tax and even the most basic overview of your position could help. It may simply mean using KiwiSaver plan to benefit from Government incentives or it could mean choosing growth assets over income, and to use any tax allowances rather than overpay tax. Alternatively, for more complicated arrangements, it might mean setting up a Family Trust or moving assets to your Spouse or Children to make full use of their personal allowances. An impartial Financial Adviser will always have your tax position in mind when making recommendations and can help point you in the right direction even in complicated situations.

7. To Buy Your Home

The mortgage market is complicated enough already, with its fixed, discounts and floating interest rate options. AERs, higher lending indemnity fees and early redemption fees. Then when the GFC hit and things then got even worse with greater deposits being required and restrictive lending imposed on the Banks.

However, buying a house is still one of the most expensive decisions we make, and most of us need a mortgage. An impartial Financial Adviser/Mortgage Broker could save you thousands, particularly in times like this. Not only can they seek out the best interest rate and Lender Cashback deals, they can help you assess sensible levels of borrowing, make the most of your deposit and might also find lenders who would otherwise not be available to you.

8. To Keep you on Track

Even when you have every product you need taken care of and your investments are set up and running to plan, someone needs to keep an eye on them in case changes in markets or abnormal events push them off course. You can ask an impartial Financial Adviser to do this monitoring work for you. They can assess the performance of individual investments against their peers, ensure that your asset allocation does not get distorted as markets move and also help you consolidate gains as the dates of your ultimate goals approach.

9. To Help Achieve your Dreams

As you progress through life, you begin to build your assets and your income begins to increase. You then start considering how you can enhance your position rather than simply consolidate it. This could mean anything from looking to retire early through to paying school fees for private schools or investing in overseas property. However, your dreams evolve, a financial adviser can help assess what is realistically possible – and put the best plan in place to help you achieve it.

10. For Peace of Mind

Money is a complicated subject and there are many things you need to think about to both protect it and make the most of it. Markets are volatile and the media is prone to exaggeration of both the risks and the rewards. Employing a good financial adviser can take the emphasis away from you and move it into the hands of an expert. Whether you need general, practical advice or a specialist with dedicated expertise, the money you invest in taking advice could be paid back many times over in the long term.