The True Value of Financial Advice: A Compass for your Life Decisions

Worrying about money and financial decisions is something that affects every family, regardless of financial position or socio-economic status. And it can be stressful; the decisions we make today will impact us long-term and making them without a plan is a little like deciding how you will get to a destination without knowing where you are going.

That’s the key advantage and true value of financial advice. It gives you a compass to make these decisions in a way that supports your long and short-term goals. Here are just some of the ways the right financial advice can enrich your life today and tomorrow.

Finding a happy balance

It’s often said that you can live rich or die rich, but in reality, you can find a happy balance. Most of us work to live, and your money should be there to support your goals at every life stage. Your financial adviser can take a holistic look at your life goals and build a roadmap to live life to the fullest, whatever that means for you. For example, you might be choosing between early retirement or working longer and taking an annual overseas holiday. For some, the answer will be obvious from the outset, others will need to give this some thought, but both are valid life and financial choices.

We are all making these types of decisions every day without any oversight into the long-term impacts. That’s where your planner can really help, striking the right balance between living a full life today and preparing for the future.

Protecting what’s important to you

Insurance is often seen as a “necessary evil” but having the right cover should be part of your financial plan to protect what’s important to you – from your family to your finances. In the financial advice industry, unfortunately we see the devastating consequences of underinsurance, particularly when someone can’t work due to accident, injury or illness. People lose their homes, children have to change schools, and a family’s standard of living can change dramatically.

These aren’t just financial consequences – they are emotional and lifestyle ones that affect the people we love. Unfortunately, in Australia today, underinsurance is a very real problem. Many Australians rely on the insurances in their superannuation, without knowing what’s actually covered, and in some cases, even paying more than they would for the right cover.

As part of your financial plan, your Apt Adviser will regularly review your insurance needs and make sure you have the right protection in the most cost-effective way at every life stage. Then, if disaster strikes, you can focus on navigating the personal consequences without also dealing with nasty aftershocks.

Making decisions in a crisis

Whether it is a personal, national or global situation that causes a change in finances, your financial plan will prepare you to navigate these. Providing you with frameworks for decision-making and a guiding plan will stop you having to make panicked decisions that can having lasting impacts.

We saw this only recently when markets dipped at the start of the pandemic — natural biases led people to make snap decisions, such as selling at the bottom of the market or moving their super into cash. These moves simply locked in losses.

Those will a financial plan were able to navigate the downturn much more comfortably. Naturally in a situation like this, many advised clients still felt a level of panic, but by reaching out to their adviser, they were able to discuss the impacts of these moves and make informed decisions – not knee-jerk ones.

Alleviating stress

No matter your circumstances, we all worry about some element of financial decisions. And financial stress can have some disastrous physical and emotional impacts. It’s a leading cause of relationship breakdown and can have a raft of health consequences.

The right financial plan provides a true north that you can come back to and keep yourself on track. An adviser isn’t there to tell you what your life goals should be. Instead, they are your personal finance coach, there to support you in achieving them.

If you haven’t put a financial plan in place or it’s time to revisit yours, contact the Apt Wealth team to discuss how our client-first, value-driven approach can help you live for today while planning for tomorrow.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.