Obviously, getting financial advice can help you manage your money. No matter your financial status or knowledge level, everyone can benefit from an objective review of their finances. Seeking help from a financial adviser will help you smash your money goals.
But there’s more to it than the financial upside. Studies conducted in New Zealand and Australia have uncovered a surprising benefit of seeking financial advice.
People reported greater levels of overall happiness and greater peace of mind. Personal relationships improved due to alleviating money-related issues, and they slept better. 87% of respondents said their adviser made a positive or significantly positive difference in their life.
That’s right - people who seek financial advice are generally happier. Studies revealed that the emotional benefits made up almost half of the value of the advice!
Many Kiwis stand to reap the benefits of financial advice. A survey on the financial well-being of 1,500 Kiwis found that:
25% have no worries
47% are doing OK
20% are getting by, and
8% are struggling
And would you believe that the 25% who have no money worries are also the group most likely to have sought professional advice?
It seems like a no-brainer to seek financial advice. Almost 70% of Kiwis are concerned about money - so why don’t we all already have a financial adviser?
Most people simply don’t know where to start. They put off getting financial advice because it is overwhelming to even think about it. Luckily the BetterSaver team is here to make it easy for you.
3 steps to finding the right financial adviser
It’s crucial to find the right financial adviser for you. It is a long-term relationship worth the effort to find someone you are comfortable with. Make sure they understand your situation and communicate well.
Here are three steps to get you started:
Focus on your ‘why’. Why do you plan on getting advice? It could be to prep for retirement, get out of debt, start investing, or sort out insurance. Getting clear on your reasons for seeking financial advice will narrow down your choices, as financial advisers can only advise on areas in which they are registered.
Start your search. There is a list of all financial service providers at Financial Advice NZ where you can search by region and areas of interest. You can ask friends or family for referrals, but keep in mind they may have different goals and needs than you. Reddit personal finance New Zealand is also a good place to learn about others' experiences with financial advisers (and get answers to personal finance questions).
Check their credentials. Anyone giving financial advice must be licensed, so make sure your selected advisers are listed on the financial adviser register. Do a Google search to find reviews.
This should help you choose a few advisers to meet and decide which is a good fit for you. At your first meeting:
Ask how they are paid. Many financial advisers are paid by selling products for a company. They are required to tell you about any commissions or bonuses they receive because it might influence what products they sell to you. Others are paid only by your fees to remove any potential conflicts of interest. It’s up to you what you are comfortable with.
Ask for examples of how they have successfully helped others in situations similar to yours. This can help you gauge if their capabilities are in line with what you need and if they have a good track record.
Ask about their approach to financial planning. You want someone whose approach feels right to you and who can explain things in terms you understand.
By getting advice on your personal finances, you stand to get more money and more happiness. Who doesn’t want that?
How BetterSaver can help
We want to help spread happiness to Kiwis by making financial advice accessible to all. We chose to focus on KiwiSaver because over 3 million Kiwis are enrolled, so it is where we can make the most impact.
Everyone deserves to benefit from financial advice. That’s why we provide advice on KiwiSaver through our easy-to-use digital tools. We cut out all the jargon to make it easy to understand. Best of all - it’s free. (And we have actual human advisers you can speak to along the way!)
The KiwiSaver industry has done a lot of good for many New Zealanders, but it isn’t easy to navigate. We think it needs better transparency, fairer fees, and open information about ethics. So we have taken on the task of collecting information from reputable sources and making it more accessible to everyone.
Through our research, we developed an algorithm to match people to a KiwiSaver fund that aligns with their goals, timeline, risk tolerance, and ethics. From this, we created a fund finder quiz that will match you to the best KiwiSaver fund for you in just five minutes.
We’re not stopping with KiwiSaver. We actively promote financial literacy for Kiwis in all areas, like investing, buying a home, saving for the future, and even starting a family. Head over to our blog to learn more on topics like how to budget and how to avoid debt traps. While you’re there, sign up for our mailing list so you don’t miss a thing.