What Value Does a Financial Adviser Add?

What Value Does a Financial Adviser Add?

This question may seem a little odd coming from us but nevertheless its worth reminding ourselves about the value we continually strive to add for our clients.

A well-crafted financial plan is a critical starting point towards achieving financial freedom.  An independent financial adviser will help develop a workable plan to suit his or her clients’ personal financial goals and needs.   In this role a financial adviser identifies individual needs regarding estate and retirement planning, protection against disability and severe illness as well as investment in general.

The financial adviser acts as an investing coach, helping to set clear goals, providing the right solutions and navigating the sometimes mind- boggling product choice.

Product knowledge is indeed key to the service a financial adviser offers.  Different products have different tax structures and different objectives.   Making the right choices to suit different circumstances is crucial.

The financial adviser can help clients avoid emotional decisions, such as bad timing in making investments, switching investments too often and wasting retirement savings when changing jobs.

The financial adviser can help provide on-going planning so that clients can have peace of mind while pursuing life goals

Research has shown that using a financial adviser can double the savings rate of those who use such services as opposed to those who don’t.  According to research, using the services of a financial adviser leads to asset accumulation four times higher over a 15 year period compared to those who do not use such services.  It has been estimated that this translates into the equivalent of an extra 3%-4% per annum return on investment.

Finally, as we do at Maximus, a financial adviser, backed up by a well trained and experienced admin team, provides an essential link between the client and the financial institutions who hold the relevant risk policies, as in the case of life assurance, and investments with various asset management companies.  We believe this is a vital service as the alternative of clients being left to deal with a myriad of companies on their own is far from ideal.

  • 3 Dec, 2018