Myth busting financial advice
Posted on 16/09/2014
Just like coaches helped Winter Olympians reach the pinnacle of their athleticism, financial planners help Australians attain maximum financial fitness.
So if we know professionals like coaches’ help athletes achieve greatness, doctors help people stay healthy and architects help families build dream homes, why don’t more Australians seek financial advice?
Some people get caught up with the urban myths of advice. They might be embarrassed about their financial situation, think they don't have enough money, or believe it's for people close to retirement.
The truth is, everyone can benefit from visiting a financial planner – the young and the old, high and low income earners and single or married people. So let’s bust some of these financial advice myths.
Myth: It’s only for the super rich
Fact: You don't need a large lump sum to invest or a high disposable income.
Regardless of their income or how much savings they have, everyone can benefit from visiting a financial planner. Financial planners can assist with everything from budgeting and debt management, through to superannuation and retirement planning.
Myth: It's only for people who are about to retire
Fact: It's never too early to seek advice.
Many people don't think it's necessary to visit a financial planner until they're about to retire. While it's never too late to seek advice, it's also never too early. Whether just starting working life, raising a family, empty nesting or transitioning to retirement, a financial planner can help improve their financial position.
Myth: I don't need it and I don't have the time
Fact: It's one of the most important things you can do.
Money issues are often delegated to the 'too hard basket', but there can be devastating consequences if people bury their heads in the sand.
Myth: Planner fees are too costly
Fact: You can't afford not to have financial advice.
Many people avoid visiting a financial planner because they are worried about the cost, but it can be good value for money when you consider all the benefits of advice. Planners sometimes offer a free initial consultation or a discounted first fee so people don't have to engage in the complete financial planning process straight away. People who want to spread out the cost can opt for scaled advice, which addresses single financial issues at a time, such as budgeting, insurance or superannuation.
Myth: I won't get independent advice
Fact: It's all about choosing the right planner.
It's important for people to take the time to find someone they trust. Ask for recommendations from friends, colleagues and family, or contact the Financial Planning Association for a referral. Finances are very personal, so people need to look for someone who understands them and their situation.
Source: AMP Australia