You might think financial advisors are only for people with loads of money who need help managing it. But if you’re thinking about owning a home someday, perhaps resuming world travel once Covid is under control, or even maintaining your standard of living into retirement, managing your finances is mission critical to achieving those goals.
Small changes can make a big difference to your savings account and lifestyle. A financial advisor can fine-tune your choices so you get the best result.
Those who get financial advice report significantly higher financial and mental wellbeing than those who don’t. If you still need a little more convincing, read on for 10 things your financial advisor can do for you.
10 Ways a Financial Advisor Can Help
- Keep you on track to achieving your goals. They help you set realistic goals, map out how much you’ll need to reach them, and regularly review your progress.
- Set up mindful budgets and savings plans. Don’t just ‘save what you can’ - an advisor can help you make a solid plan to assess what is do-able for you to save each week and what method of saving will work for you.
- Create a plan tailored to you. A good financial advisor takes into account your circumstances, short- and long-term goals, income and expenses, and lifestyle to form a strategy just for you.
- Advise you on investments. They can assess what level of risk you are comfortable with and recommend how to diversify your funds. You can then choose your own investments or set up your advisor with the permission to manage your investments on your behalf.
- Align your money with your ethics. Some funds invest in stuff you might find unethical - like animal testing, GMOs, and nuclear warheads - which you could unknowingly be contributing to. They can make sure your dollars are going to funds you are happy to support.
- Ensure you are set up for retirement. Optimising your KiwiSaver now is critical to having enough money later on - the right fund, the right provider and the right contribution rate are key factors. Don’t spend years in the wrong fund and find yourself caught short.
- Make sure you’re protected with the right insurance. Whether it’s life insurance, health insurance or insurance for your business, an advisor can make sure you choose the appropriate plans for you. You’ll be covered for what is reasonable without overspending on plans you don’t need.
- Provide an objective, outsider’s view of your finances. Money is often tied up with our emotions, and an advisor can help prevent making decisions based on gut feeling and ensure you’re acting based on facts and logic.
- Prepare you for what’s coming. Advisors are experts on managing life transitions - like having children, paying for university, and retiring - and can be proactive managers so you are prepared for anything life throws at you.
- Relieve financial stress. Especially with Covid wreaking havoc once again, more of us are looking at pay cuts, redundancies or worse. Many people think of an advisor when they have a healthy cash flow or come into money, but having an advisor is especially helpful when money is tight.
Let the Experts Help
As Kiwis, a lot of us like to DIY. But when it comes to finances, winging it with some number 8 wire will not cut it. Our finances tie in to many aspects of our lives and need regular attention, taking up precious time and energy.
A financial advisor will work in partnership with you to help you live the life you want. It should be a long-term relationship, so make sure you choose someone you trust, and like. Don’t be afraid to ask questions - it’s your money! Using their expert knowledge to make small changes will have a big impact on your lifestyle for years to come.
At BetterSaver, we are committed to giving independent, unbiased advice to all Kiwis. We want to ensure everyone has an equal opportunity to make the best financial decisions possible. Sign up to our waitlist so when we launch you’ll be one of the first to access advice to optimise your KiwiSaver investment now to start saving for a better future.