There seem to be a few common myths and misconceptions surrounding financial planning and seeking advice. Our aim is to make things easy to understand, so we have created a range of short videos that dispel some of these myths.
I need lots of money to see a financial planner
Some people think they need lots of money to see a financial planner.
This isn't true if a financial planner charges an transparent, dollar based fee for their service - much the same as other professions. This way, the advice is unbiased. From the adviser's perspective, it doesn't matter if you're starting out and seeking advice to build wealth or if you're much older with a million dollars in the bank.
This will not be the case if a financial planner generates their income by taking fee based on a percentage of the investments they "manage" for you.
Obviously in this instance, from an adviser's perspective, the greater your investment, the more they earn.
For example, if you had a super account worth say, $20,000 and your adviser was charging you 1%, you'd only be a $200 a year client. So really, it'd be no surprise that you never hear from them, as opposed to the client with half a million invested.
If you're not sure how your adviser charges, ask them.
I need to be nearing retirement to see a financial planner
Some people think they need to be nearing retirement to see a financial planner.
This is quite the opposite. In fact, the earlier you seek advice on building your wealth for retirement, the more time you have to plan and prepare, and the easier it is.
Think about it this way. When you left school and got a job, what sort of financial advice did you receive - if any?
How different do you think your life could have been if somebody had shown you how to build wealth at a young age?
The point is you can never to be too young or too old to get financial advice. The only difference is that the advice will vary depending on who you are and what stage of life you are at.
