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Is it worth using a Financial Planner and Adviser? What the research says.

Updated: May 6

A Financial Planner and clients sitting around a table discussing the benefits of financial advice

Financial Planners and Adviser's can provide both quantitative benefits (helping you save or make more money) and qualitative benefits (providing you with guidance and clarity regarding your goals and removing the time, stress and mistakes from managing your own finances).


We can provide value to most people and when we believe we can't relative to the cost of the fee, we will offer clients other free resources instead.


Now, let's dive into what the research says:


Vanguard's Adviser Alpha report suggests the value of working with an Adviser could be as much as 3% per annum of the total portfolio value. This does not mean that Adviser portfolios always outperform non-advised accounts by 3%, but rather the cumulative effect of behavioural coaching and wider Financial Planning advice can lead to a benefit that large. For example, when clients are fearful in market downturns (like we saw with the COVID dip of March 2020), the benefit of Adviser's reassuring guidance to stay the investment course can be enormous.


The FAAA's Value of Advice Index shows that Advised Australians are more likely to feel financially secure than those who are unadvised (85% vs 62%).


IOOF's research indicated that 86% of clients agreed advice helped them achieve personal goals.


Challenger's research indicated retirees with an adviser were 14% more likely to be confident or very confident in their ability to live a comfortable life.


Whilst finally, the governments MoneySmart website states a "financial adviser can help you set financial goals so you feel confident that your future plans are achievable. If you’re not on track to achieving your goals, an adviser can help you put the right strategies in place, or set more realistic goals.

Financial advice can be useful at turning points in your life, like when you're starting a family, being retrenched, planning for retirement or managing an inheritance".

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