Many people seek financial advice from friends, family and websites, instead of seeing financial professionals. Is this a reaction to recent scandals? Have you lost faith in financial planners?
It may not come as a surprise that the reputation of the finance and banking sector has been sullied by repeated rackets, constant corruption and instances of deceit, scandals and ethical breaches. But the truth is that not all financial planners are bad and we shouldn’t tar them all with the same brush.
Besides, YourLifeChoices has some great tips for choosing a financial planner, as well as expert advice on how to deal with a planner, including the questions you should ask, and the most common questions people forget to ask.
A recent study by the Financial Services Planning Board revealed that just 17 per cent of those surveyed agree that they are knowledgeable about financial matters. And around 19 per cent say they are successful at sticking to financial strategies and 22 per cent have confidence that they’ll achieve their goals.
Only 32 per cent have a written financial plan.
When it comes to financial advice, 68 per cent of consumers rate trustworthiness as the most important consideration, yet six in 10 don’t know whom to trust.
The most important financial matter for most people – not just retirees – is retirement planning. In fact, 50 per cent of those surveyed placed retirement planning as their top concern, followed by investment planning (38 per cent) and budgeting and debt management (36 per cent).
Other financial focuses include:
- being debt free
- being prepared for an emergency
- owning a home
- planning for retirement
- managing their own finances
- supporting others financially
- managing investments.
World Financial Planning Day is about offering you the knowledge and resources you need to develop successful financial strategies and meet your money – and life – goals.
Possibly the most trustworthy source of information when it comes to researching financial planning is the Australian Securities and Investment Commission website. You could also try the Financial Planning Association of Australia.
Finding a financial planner you can trust may be a challenge, but a planner who understands your needs and goals and can help you achieve them is truly an invaluable resource – and one that can help you take control of your financial life.
Do you trust financial advisers? To whom do you turn when you want to discuss money? Do you consider yourself financially savvy? What sort of information do you find most valuable?