The fact is, most of us aspire to be financially secure. But few of us take the necessary steps that can help to turn the dream into a reality.
Human nature often sees us lean towards ‘get rich quick’ options. That can mean pinning hopes on a lotto win (which, by the way, has odds as high as 1 in 76 million1), or getting caught up in dodgy scams that make the crooks wealthy but which will leave their victims out of pocket.
The thing is, deep down, most Australians know what’s really involved in building wealth and becoming financially secure.
A simple formula for success
Wealth building hinges on a simple formula: Spend less than you earn, build savings, and invest wisely. Long story short, it means managing your money smarter.
However, Mortgage Choice’s recent Australian Financial Savviness Whitepaper1 confirmed that five out of six people face challenges in managing their money better.
That’s not surprising. After all, we are constantly surrounded by temptations to spend more, not less. And many people simply don’t have confidence in their ability to invest, or the time to research investment markets.
That’s where a Mortgage Choice financial adviser can help.
A mentor for your money
You can think of their role as being like a coach – or mentor – for your money. And research confirms that professional advice pays valuable dividends.
A survey by Sunsuper2 found that among those Australians who use a financial adviser:
- 80% are more confident in their money decisions and their financial security
- 72% save more, and
- 93% are sure they could fund three months out-of-work (compared to 77% never advised).
Sunsuper even crunched the numbers and found that with the benefit of financial advice, a young family can be $240,000 better off in retirement3.
It makes financial advice a sensible investment in your financial wellbeing.
So, how does financial advice work?
Quite simply, quality financial advice follows an internationally recognised 5-step process:
1. Discovery - First, you and your adviser spend time getting to know your current financial position, and your financial and lifestyle goals. From here, you work together to decide the area(s) where you may need support, and how much it will cost you. For the record, the first meeting is on them!
2. Research - If you choose to go ahead with the advice service, the financial adviser will undertake all the research needed to develop a financial plan tailored to your needs.
3. Approval to proceed - Next, you’ll meet to walk you through your plan, and can then discuss the recommendations. These strategies will be presented to you in writing in what is called a Statement of Advice.
4. Implementation - When you are comfortable with your plan, the adviser will start putting the wheels in motion to help you achieve your goals.
5. Review and update - Like any good coach, the adviser will stay in touch to help you stay on track with your goals. Depending on your situation, you may meet annually to review your plan and make sure you stay on track. Or it may be more appropriate for you to access the services on a more ad hoc basis if you have any queries or need extra support down the track.
Good advice doesn’t just help you achieve wealth in retirement. It also adds value all the way through your life in terms of helping you understand the choices you can afford to make about things like schooling, insurance, holidays, housing and your lifestyle.
To start enjoying the life you want to lead, give your local Mortgage Choice adviser a call to learn more about how you can benefit from professional financial advice.