Key takeaways
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If you value the experience of experts in other aspects of your life, don’t discount it when it comes to managing your life savings
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A financial adviser can help you implementing a financial plan to stay on track with your goals
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They can also review your investments to assess where you currently stand and determine if your investment portfolio needs adjusting to meet your goals.
Deciding whether to manage your own money or seek the advice of a professional is a big decision.
Not everyone needs an ongoing relationship with a financial adviser but many people who could actually benefit from one, don’t seek professional advice or believe they don’t need it.
In this article we address some of the signs that may indicate a financial adviser could be beneficial.
1. You never find the time to review your financial position
Making the right financial decisions takes time, skill and effort.
So, if your to-do list is endless and you never quite have time to tackle your personal finances, a financial adviser could help to ensure your life savings are getting the attention they need.
Why is this important?
There can be a cost in delaying good financial decisions or making poor ones.
For example, if you’re close to retiring, you may want to become more conservative with your investing by shifting all your money into low-risk assets like cash. But this can be costly—your returns will be so low that your portfolio is unlikely to outpace inflation. It’s therefore important to consider having some money invested in higher risk, higher returning assets, such as shares and property which a financial adviser can guide you on.
2. Basing investment decisions on the latest fad
Too many investors focus on the latest investment fad, rather than creating an investment portfolio that has the highest probability of achieving their long-term goals.
Understanding what your long-term financial goals are, will provide the direction on how you set up your investment portfolio. This includes the types of investments you choose to buy into, how long you need to generate those returns and how much risk you’re willing to take on.
A financial adviser can review your investments to assess where you currently stand. They can then determine if your investment portfolio needs adjusting to meet your goals.
3. You don’t have a financial plan
Perhaps you’re hoping to retire early but not sure if you can afford to. Or maybe you want to pay off your mortgage faster to reduce debt.
A financial plan is like a roadmap, designed to turn whatever vision you have for your life, into reality. It will provide the direction for where you need to go.
Getting organised and building a strategy is a critical step to achieving your long-term goals but it doesn’t end here.
People often need help implementing their strategy, staying on track with their goals, or revising their plan when circumstances change. This is where a financial adviser may be able to help you.
4. You’re always worried about your financial situation
Perhaps you’re a busy working parent that doesn’t have time to oversee their investments, or maybe you’re close to retiring and are concerned about running out of money.
Worries about money can cause a lot of stress and anxiety. Getting your finances in order, with the help of a professional, may therefore help to reduce or remove this source of concern.
A financial adviser can also identify risks or opportunities that you’re unaware of. For instance, there could be strategies to help reduce your taxable income or increase your investment returns. Alternatively, you may have too much of your money invested in one area—rather than across many—which could be exposing you to greater risk.
Bottom line: If you value the experience of experts in other aspects of your life, don’t discount it when it comes to managing your life savings.
Speak to us on Phone 02 9279 2001 to learn more about how we can help.
Source: MLC July 2021
Important information and disclaimer
This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. The information in this article is current as at June 2021 but may cease to be accurate in the future.
NULIS is part of the group of companies comprising IOOF Holdings Ltd ABN 49 100 103 722 and its related bodies corporate (IOOF Group).
Opinions constitute our judgement at the time of preparation. In some cases information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
To the extent that the information in this article is or contains advice, it does not take into account any particular person’s objectives, financial situation or needs. Before acting on the information, you should consider the relevant Product Disclosure Statement, consider the product’s appropriateness to you having regard to your personal objectives, financial situation and needs, and consider obtaining independent advice. The Product Disclosure Statement for the MLC Super Fund is available at https://www.mlc.com.au/personal/superannuation/products or can be obtained by calling 132 652 (Monday to Friday between 8am and 6pm AEST/AEDT). Returns are not guaranteed and past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the IOOF Group accepts responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.