(Feedsy Exclusive)

Most people view financial advisers as investment managers whose job is primarily to select investments and ensure their clients get a certain level of returns. However, the role of a financial adviser goes far beyond this conventional notion.

These days, the value that financial adviser delivers to their clients should ideally be a balanced mix of technical and soft skills, especially during times of high market volatility.

In this post, we talk about the evolving roles of financial advisers and the skills they need to benefit their clients beyond providing investment advice.

Evolving roles – counsellor, financial expert and client advocate in one

With changing client needs that are increasingly becoming more complex over time, a financial adviser can take on various tasks.

As counsellors, they can act as advisers who’ll help handle the emotional strain of making tough financial decisions and their potential consequences.

In certain instances, an adviser may be regarded as a technical financial expert of sorts or guru, providing their own perspective or analysis and acting as the voice of reason. When necessary, a financial adviser might also serve as an advocate defending or acting on behalf of their client and their interests.

While explaining such intangible value advisers provide can be challenging, the benefits of having one are evident when clients feel more assured or secure. In turn, clients are better able to deal with the unpredictability of the market. They also have the confidence of knowing that everything is under control and that they have an expert they can depend on when things get tough.

Preventing costly emotional blunders

Investors who forsake a strong investing plan because of emotion or fear typically lock in losses and miss out on the eventual rally after periods of turbulence.

Therefore, financial advisers must have distinct expertise in gaining a client’s trust and offering sufficient reassurance. This way, clients will keep to their long-term financial plan, avoid getting emotional when the market is in turmoil and steer clear of costly behavioural blunders brought on by frustration and despair.

With a lot of Australians facing financial stress at some point in their lives, emotional support during difficult times is an important aspect of the financial adviser value offer. In fact, it’s not unusual for clients to seek advice from financial experts in times of tragedy, illness, death and financial difficulty.

Therefore, special skills such as behavioural coaching and giving emotional support can prove to be more valuable to a client than simply asset allocation. This is especially true when it comes to regulating the behaviour and emotions of a client, particularly when there’s turbulence and uncertainty in the market.

If you need expert financial advice, seek the help of a seasoned adviser with the right technical and soft skills to help you navigate market highs and lows successfully.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

This information does not take into account the objectives, financial situation or needs of any person.

Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.

(Feedsy Exclusive)

Protecting one’s family is a vital aspect of parenting, and every parent has their own unique ideas about what it means to keep their loved ones safe.

As a parent, you feel the need to protect and keep your children safe, especially in the early stages of their development. During this critical period of your children’s lives, they wholly depend on you for everything, including food, clothing, shelter, and protection from the outside world.

In protecting their family, some people prioritise emotional and mental well-being—something that’s certainly laudable. However, it’s also crucial to remember the practical side of things.

Financial security is a key component of protecting your family. This involves ensuring that there is enough money to cover living expenses, pay for medical bills and your children’s education, and save for the future.

But how do you protect your family financially? How do you prepare for possible financial hardships or challenging situations that can drain your funds?

The importance of financial planning

If something drastically goes wrong in your life, do you have plans and policies in place to ensure that your loved ones are financially secure even when you’re no longer able or around to provide for them?

As a parent, it’s natural to worry about worst-case scenarios happening to your family, including:

• A family member becoming critically ill or requiring long-term hospitalisation
• Someone becoming handicapped or passing away
• You, your partner or both of you becoming jobless
• Losing all your savings in a scam

While these thoughts can be difficult to process, it’s crucial to plan for them.

Financial planning can help ease some of the anxiety that comes with these what-if questions. And to ensure your family’s financial security in the worst-case scenario, it’s crucial to not only have savings and investments but also insurance.

Some examples of essential coverage designed to keep families financially protected include:

• Life insurance
• Critical illness coverage
• Family income benefit insurance

These insurance policies help to ensure your family’s living expenses are covered while also providing them with an income and giving them the ability to pay off a mortgage.

Another important document that can help you secure your kids’ future is by leaving a legal will detailing whom you plan to entrust their care to in the event of your death. Doing this can prevent serious disputes from arising, especially when you have a sizeable estate and your children are still minors.

Start preparing today for a secure tomorrow

Planning for the future is just as important as preparing for parenthood.

There are things you can do today to achieve financial security, such as saving, budgeting wisely, investing, and purchasing insurance policies.

The earlier you do these things, the better you’ll be able to protect your family against financial uncertainties and challenges.

Seek advice from a financial advisor to help you with planning and selecting policies that are suited to your situation.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

This information does not take into account the objectives, financial situation or needs of any person.

Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.

(Feedsy Exclusive)

Do you struggle to pay your bills every month? Does it sometimes feel like you’re never going to earn enough money to save anything? Has your goal of financial freedom remained elusive through the years?

Knowing and understanding the fundamentals of saving and investing is crucial if you want to take control of your finances and fulfil your financial goals. 

Sadly, many people delay managing their finances because of a lack of time or knowledge. However, the sooner you start financial planning, the earlier you can achieve the results you want. 

Being a successful investor is more than possible if you get the basics of saving and investing right. 

1. Set goals.

To start, set personal financial goals that are specific, measurable, attainable, realistic, and within sensible timeframes (S-M-A-R-T). Once you have identified your goals, you can make informed choices on how to achieve them.

Some examples of smart goals include saving $12,000 in six months or paying off your credit card debt within one year.

2. Save first.

Saving is essential for improving your quality of life. In the short term, having a savings safety net frees you from living paycheck to paycheck and allows you to access your money during emergencies. 

In the medium term, having a regular savings plan establishes your financial track record, which is essential if you apply for financing. It can also help you reach your goals, such as purchasing a new car or saving for a home deposit. 

Regular saving combined with smart investing can help supplement your superannuation when you retire and allow you to accumulate greater wealth in the long term.

To make saving easier, commit to putting money aside at the start of your pay period and spend only what is left. Automatic deductions from your pay or bank account to a savings account make it easy to save first.

3. Set a budget.

Budgeting is an essential tool for managing your finances and cash flow. List all your sources of income and outgoing expenses realistically, and make changes where necessary.

Set a weekly, biweekly or monthly budget. Commit to it and avoid overspending and impulse buys.

4. Consolidate accounts.

Consolidating multiple savings accounts can reduce fees and help you reach your goals sooner. The same applies if you have more than one superannuation account. Consolidating your super will allow you to save on administration and management charges.

5. Consider investing.

Investment returns are a crucial consideration when investing. When choosing to invest, you want to get the best return on your investment, whether through income or growth.

There are four main asset classes to choose from when investing: cash, fixed interest, property, and equities. You can invest directly or indirectly via a managed fund. 

If you don’t know how or where to start, a financial adviser can help you choose the right type of investment or one that’s compatible with your financial situation and goals.

By applying these tips and getting expert advice, you can stay on track and attain your financial objectives.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

This information does not take into account the objectives, financial situation or needs of any person.

Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.

(Feedsy Exclusive)

Why Time Is Wealth

If you were to choose between money and time, which option would you go for?

For some, the answer is easy: it’s money. The reason, of course, is that people measure one’s level of success and wealth by the size of one’s bank account, number of properties, investments and other assets.

Children grow up thinking that to be happy, they need to live in a mansion, own several expensive automobiles and have a fat bank account — or that having money (lots of it) is the key to happiness. This way of thinking puts a tremendous amount of stress on people who then end up second-guessing the choices they make in life.

If, say, you chose to be a small-time vegetable farmer rather than the high-powered corporate lawyer your parents wanted you to be, would you consider yourself successful? Perhaps not in the eyes of a society where more money means success.

The problem with chasing money

Wanting to be financially independent is a good thing. Setting out to achieve financial security by saving, getting insurance, investing and working extra is a practical and desirable goal.

The problem lies in how some people get too caught up in the idea of chasing money. Instead of working to live, they end up living to work. They spend day after day, week after week, and then months and years accumulating money, hoping someday they’ll have the time to enjoy the fruits of their labour.

But then, how much money is enough?

People find themselves so engrossed in their never-ending quest for more money that they end up sacrificing their precious time. Then, before they know it, they realise that the person they see when they look in the mirror is an old man or woman who spent their best years accumulating material wealth.

Shifting the attention from material wealth to time wealth

The term “time wealth” or “time affluence” refers to a person’s ability to spend time on things or activities that matter to them or give them personal satisfaction. But who is really rich: the one who possesses time wealth or the one who has amassed material wealth?

There’s a famous adage that says “time is gold,” and it still rings true today. When people are working, they are literally using time and energy to generate money through the salary or income they receive. In a larger sense, as long as one has time, the opportunity to build or accumulate wealth remains.

But when all one has is money, one can’t even use it to buy time. This is especially true for people who forget to take care of themselves and their relationships in their desire to become rich. They end up alone, get sick or die because of their relentless pursuit of money.

Smartly spend your time wealth

For a period in your life, time spent accumulating material wealth may seem worthwhile. However, you can make better use of your time on things that’ll satisfy you personally rather than financially.

Remember your lifelong dreams and your relationships?

Make time for them and nurture them. They’re the reason you started making money in the first place.

And with everything you know about finance, you can afford to pause from work and focus on living — really living.

But if you need wealth advice or tips to help you make better financial decisions suitable for your unique situation, get in touch with a professional financial adviser.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.

Feedsy Exclusiv

For some people, a major reason for beginning to prepare for life’s ‘what if’ scenarios is starting a family.

If your primary concern is taking care of your family, life insurance is an excellent option. It makes sure that your loved ones are supported financially, both now and in the future, as they cope with financial burdens that may come in case the unfortunate happens.

Check out the benefits of life insurance and some of your options if you’re thinking about getting it to give your family financial security.

Life insurance benefits

In general, a life insurance is designed to provide protection to beneficiaries in the event the policyholder dies or becomes incapacitated.

It offers a lump-sum cash payout to the beneficiaries you designate if you suffer from a terminal illness or pass away.

To be specific, life insurance provides the following benefits:

• It can give you peace of mind. By providing for your family in case of your death, disability or permanent injury or a serious illness, you’ll have more confidence knowing they’ll be financially secure no matter what happens.
• It can reduce the financial burden of a terminal illness. If you become seriously ill and rack up hospital and doctors’ bills, you can receive a payout, which can reduce your financial worries. However, to enjoy this benefit, you need to make sure your policy provides for this benefit.
• It is flexible enough to cover a range of situations and life stages. There are a variety of policies offered by providers to cover different professions and life stages. Most of them also allow for a range of benefits that policyholders can choose from.

Types of life insurance cover

Depending on your needs and priorities, you may opt for the following types of life insurance.

• Accident-only income protection: If you’re hurt in an accident and cannot work for longer than the waiting period, this insurance will pay you a monthly benefit of up to 70% of your average income.
• Funeral cover:This provides a cash payout that can be used to pay for the final costs of a loved one’s funeral expenses.
• Income protection: This typically provides a monthly payout equal to up to 70% of your regular income if you’re temporarily unable to work because of illness or injury.
• Term life: Although this form of policy offers a lump sum payment, it can also work as a salary replacement, so your family can continue living in the manner they’re accustomed to. They can also use it to pay off your obligations.
• Total and permanent disability (TPD): If you suffer a total or permanent disability because of a sickness or injury and cannot work, this type of insurance provides a lump sum payment to replace lost income, help with medical costs, and pay for recurring debts and bills.
• Trauma:This provides a lump-sum payment if you experience one of the serious ailments detailed in your policy. Depending on what’s covered, it can provide financial cushion if you experience a heart attack, cancer diagnosis, or stroke.

Unlike savings, life insurance provides your family with financial security immediately.

So, even if you’re saving and investing, consider getting a suitable life insurance policy today to ensure your family’s financial stability in the event of you becoming terminally ill, physically incapacitated, or passing.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.