There’s a lot of misconception about financial planning and how it can help you. Here is a list of the top 6 myths surrounding financial planning. We hope that by dispelling some of these common myths you can get a better understanding of financial advisers and how they can assist you to achieving financial prosperity and security.
Myth #1: Only people who have already accumulated wealth and/or assets can see a financial adviser
This is one of the biggest myths surrounding seeking professional financial advice. Most people believe that you need to have already established yourself financially before a financial planner can help you. Some financial advisers will only want to work with you if you have some established assets as by advising you on how to allocate this wealth this allows them to be paid. At Financial Spectrum, our financial advisers are fee-for-service, or charge a flat fee instead of earning a commission. This means that they are able to assist you in accumulating wealth through things such as setting up savings plans and budgeting, whereas other advisers won’t as they wouldn’t earn a commission for this advice. The value of advice at the early stages of your life can be just as great, if not greater than when you have already built up your wealth.
Myth #2: Financial Planners just sell their clients managed funds
Many people believe that financial planners just sell managed funds to their clients. This isn’t true. Whilst a financial adviser can recommend their clients invest in specific investments as one tool to help grow their wealth, a holistic financial planner will look at areas such as debt reduction, tax minimisation, property, shares, superannuation, insurance, and cash flow just to name a few. All of these areas are important when looking to grow and secure wealth – not just investing into products. Some financial advisers have a greater emphasis on placing their clients into managed funds as this provides them with payment via a commission. This perhaps may explain why this myth is a common one. Not all financial advisers are equal however. Financial Spectrum is in the minority when it comes to offering clients truly holistic advice. Because Financial Spectrum doesn’t earn commissions, its’ financial advisers place just as much emphasis on areas such as paying less tax and budgeting, as placing clients in managed fund investments.
Myth #3: I’ve already got an accountant, so I don’t need a financial planner.
Many people already have an accountant that they know and trust for their financial needs so they don’t think that they would benefit from seeking the services of a financial planner. What most people don’t understand however, is that although it is very important that accountants and financial planners work together in partnership, both fulfil very different needs. Financial advisers are trained to take a more holistic approach to your finances than accountants are. Whereas an accountant will complete your tax return or offer advice for small business, a financial planner will work with you on understanding your life goals and help to implement a financial plan to help you achieve them.
At Financial Spectrum, we work closely in partnership with accountants to ensure that our clients receive the benefit of a team approach.
Myth #4: I don’t need a financial planner – I’m nowhere near close to retirement
A common misconception is that financial planners are only to help retirees or people starting to think about retiring. This is very far from the truth! Whilst it is true that there are many financial advisory firms whose target market are retirees, at Financial Spectrum is one such privately-owned financial planning firm based in the Sydney CBD.
Financial Spectrum –
About the Author:
Financial Spectrum are a team of financial advisers based in Sydney, Australia. We are independently owned and stand out from the crowd in our approach to creating and managing your wealth. We are fee-for-service and don’t rely on commissions. Experts in: – financial planning – estate planning – funds management – insurance – structured investments – taxation planning – property investment – business succession – crisis planning – superannuation
For more top articles and free ebooks about financial planning and investing, visit http://www.financial-planner.com.au