5 Reasons Why You Should Consider A Financial Advisor
Whether you’ve got too much money to know what to do with (boo hoo), not enough (there’s never enough is there?) or somewhere in between, finances can be intimidating. What you do with your precious pennies extends beyond just wanting to make more of it – your financial decisions should feel aligned with your personal values and goals too.
If you’ve ever wondered whether you should see a financial advisor for help making these money moves, the answer is likely yes. We work closely with our good mates at Inovayt Finance because (speaking of values) we’re on the same page in how we approach client relationships and innovation. If you need more than just our word for it, here are five reasons you should consider a financial advisor.
You’re a stressed out ‘what if’-er
Peace of mind comes from more than just a yoga class. Whether you have a plan or not, financial security means that there’s a lot less stress around those ‘what if’ questions that pop up. You want to retire at 60, but what if you get to 52 and you only want to work another year or two max? You’re saving for that super yacht, but what if an incredible opportunity comes up to invest in a new business venture when you’re only half-way to your goal?
A financial advisor is able to make recommendations that give you flexibility and maximise your ability to make money and liquify your cash flow, if that’s what aligns with your values. They guide you to invest based on your risk portfolio or how comfortable you are with taking risks so you don’t end up with investments or decisions outside of your comfort zone. Basically, a financial advisor understands that people under pressure don’t act on logic alone. They keep your worries in check with fact-based advice to see you through.
You feel like you pay a lot of taxes
We knew that would get your attention! Tax is a necessary evil that can feel like a real drainer on your final bank balance. A financial advisor isn’t just there to help you plan for the long term, they are also equipped to guide you in one of the key factors in wealth creation – tax planning. Whilst we specialise in tax planning for business, it’s a thing for individuals too and Inovayt have those bases covered. Structuring your finances to maximise your income after tax income means encountering options around salary packaging, superannuation, investments and tax deductible debt. This is not a battle you will face alone when you have a financial advisor *cue superhero music*.
You love TikTok
Now that we have the attention of our under 35’s, we can talk about retirement. Don’t you dare keep scrolling. We know retirement can feel like a future you problem (it literally is), but your ability to plan for it now will make the road to a work-free life far less turbulent and far shorter. Like any long term goal, your financial advisor can assess your current thoughts on retirement, assess how much moola that will realistically require and give you the map to get there. The same can be said for your big picture plans like opening a business, buying that house by the beach, or creating a passive income to support you while you travel the world (in 2032 when the borders reopen).
You need help allocating assets
Big players you’ll recognise in the world of assets are bonds, shares, cash and real estate. You may already be balancing them or balancing your preference for owning one over the other. Home ownership is often one of the biggest assets we consider and at the same time, can often also be the first we purchase. However, property is not your only investment option (although Inovayt does also specialise in mortgage broking, winner winner).
Diversifying or tapping into a broad range of assets is one way you can manage your risk, but it can feel overwhelming to those of us who think of soup when someone says stock. A financial advisor comes armed with the knowledge to help you balance the risk and return of investing across one or many types of asset classes.
You had a plan, but things have changed.
You may have purchased shares and an apartment 10 years ago while you were a single bachelor or bachelorette but now you’ve had kids and your priorities are a little different. Perhaps you bought shares that feel more volatile than anticipated so you want to give your portfolio some more security. You need to realign the weightings of your portfolio of assets and do what is known as rebalancing. Who can help you with that? Your financial advisor.
We live in the world of finance and we’re a team of finance junkies who believe in the power of educated planning to secure your financial future. We also know that there are people out there who are motivated to follow their own guidance when it comes to money and we love that.
However, for the majority of people we encounter, good intentions and good results are not synonymous. Ask yourself: if you’re not working with a financial advisor, will you really do it yourself?