The Value of Good Advice
The value of good advice
A research report from CPA Australia, CoreData and the University of NSW has put a value on the benefits of financial advice to Australian society. The comprehensive study found that the value of advice is $24,716 per person per year.
Only about two in five Australian adults use the services of financial advisers, accountants or mortgage brokers. If we could increase that to everyone it would mean a $630 billion boost to the Australian economy each year.
That’s probably not reasonable. But if we could increase the number of people receiving advice to one in two, it would mean $113 billion of stimulus to the economy each year.
But it’s not just about the money
According to the Australian Psychology Society, financial issues are the leading cause of stress amongst Australians; even higher than worries about health.
Financial stress is bad for our families and it’s bad for our communities. Those who feel financially stressed drink more, sleep less, have worse mental and physical health, and have more conflict in their personal relationships.
Advice reduces financial stress
The good news is that Australians who have an active relationship with a financial adviser feel more organised, are more confident when making financial decisions and they’re less likely to suffer from financial stress.
When an adviser reduces a client’s financial stress, they may also lessen the client’s tendency to turn to alcohol or drugs, help them sleep better, and improve the quality of their family relationships.
The CPA Australia research also found that advised clients have more peace of mind and greater confidence in managing their finances. And with greater confidence with finances comes confidence in preparedness for key life events, like retirement.
But the emotional benefits of advice are just the start. There are clear, demonstrable and measurable financial benefits as well.
Tangible benefits for individuals
People with an active relationship with an adviser make better financial decisions. They are more efficient with their investments, make more of their opportunities and avoid more financial mistakes than unadvised people. They feel more financially resilient, so they have more confidence to spend. Even though they spend more and do more in their lives, they are still wealthier and take fewer financial risks than the unadvised.
Access to quality advice in the Central West
That’s why we think it’s so important that Australians access the services of a professional financial planner as they approach retirement. Especially in regional areas.
At Daniel Crump Financial Planning, we’re doing our part. We’re bringing new generation, professional retirement advice to the Central West. We’re based in Orange, and regularly visit Bathurst, Dubbo, Lithgow and Mudgee.
If you’d like to experience high quality advice first hand, give us a call. We’d love to help.
Daniel Crump is the founder of Daniel Crump Financial Planning. This article is general and does not consider your personal circumstances. If you would like advice specific to you, give us a call.
