True value of advice

There’s plenty to consider when trying to secure your financial future. Should I pay off the mortgage or put money into super.... but what about renovations? When can I stop work? How do I afford the children’s education?

Good financial advice answers these questions by mapping out your goals and putting in place the strategy to achieve them. The traditional measures of financial advice success have focused on achieving your tangible goals, such as retiring earlier, relative investment returns, or simply spending less.

While these financial benefits of advice have long been established, can financial advice positively affect the more intangible aspects of our lives? What is the true value of advice?

The intangible value of advice

A survey[1] of 312 financial advice clients about the intangible benefits of financial advice and the results were compelling. Our survey revealed people who receive ongoing financial planning advice experience:

• 13 per cent greater levels of overall personal happiness
• 21 per cent overall increase in peace of mind
• 20 per cent increased feelings of security regarding their day to day finances
• 19 per cent less likelihood to have arguments with loved ones.

While those that don’t receive financial advice were:

• 22 per cent more likely to have their sleep disrupted due to money concerns
• 15 per cent more likely to feel stress and anxiety.
• 11 per cent more likely to feel concerned about their finances

What’s more, 83 per cent of clients surveyed endorsed the value of financial advice by saying it’s also important for their loved ones to have good financial advice!

Even if you have your financial house in order, a financial adviser provides the comfort and peace of mind of a well thought out plan, a plan that leaves you better prepared for the future. What’s more, advice extends beyond measurable financial gains, to improved physical health, stronger relationships and personal happiness. That’s the true value of advice.

[1] IOOF – True value of advice – December 2015