In life, we often seek expert advice for things like our health and well-being and our careers. But when it comes to financial advice, many people are reluctant to seek it out either because they do not understand the value it can provide, or because they think they do not ‘qualify’ for it (they feel they are not wealthy enough to warrant seeking financial advice). But at Endorphin, we see every day how working with the right financial advisors can not only be beneficial but also empowering for our clients. So, we want to take some time to talk about the benefits, whilst dispelling some of the myths of financial advice.
What do financial advisors do?
Financial advisors look at every aspect of their clients’ finances and lifestyles, in order to provide advice as to how clients can reach their financial and wealth management goals. This often includes advice about budgeting, investing, planning for retirement, tax and insurance. Advisors can help you plan for the future and make informed decisions about your finances. In addition, they will also put practical strategies in place so ensure their clients can achieve those goals. These goals can be short term (saving for your first home or paying off a debt) or long term (planning for retirement).
Some common myths about working with financial advisors
When talking to clients who are thinking about seeking financial advice and wealth management in Sydney and Melbourne, a few common concerns crop up. We are going to address some of these.
Myth: It is not worth getting a financial advisor unless you are very wealthy or have a lot of assets.
This is one of the biggest barriers that stops people reaching out to financial advisors, and we are here to tell you that it is not true! Our goal is to empower our clients by helping them plan for the future or manage their current circumstances. There are many different reasons to consult a financial advisor, and you can do so for any of your financial or lifestyle goals. For example:
- Paying off your mortgage as soon as possible.
- Creating savings and wanting to know the best way to invest them.
- Knowing how best to manage a sudden change in finances, like an inheritance or money from the sale of a house.
- Ensuring you can retire comfortably.
- Ensuring you can provide for your family if you become sick or injured.
- Getting out of debt.
- You have a lifestyle goal you want to attain, such as better work-life balance, going on a dream holiday, or having a tree-change.
If you’ve ever thought about any of these things, then you qualify for financial advice.
Myth: I’ll be given generic advice that isn’t suitable for my situation.
Here at Endorphin, we have a client-first philosophy. This means that all our financial advisors in Melbourne and Sydney give advice and wealth management strategies that are tailored to meet the specific needs, goals and desires of our clients. When we say our strategies are tailored, we mean they’re really tailored. That means we get to know you, your lifestyles, your hobbies, interests, future goals and potential future challenges, and we put you at the centre of your financial strategy, not just your assets. If you feel ever feel you’re being offered advice that is unsuitable for you, it’s important to know that a good financial advisor shouldn’t make you feel pressured to sign anything or accept recommendations that you’re not comfortable with. It’s certainly not the way we do things here at Endorphin!
Myth: I’ll be told to make high-risk investments.
Part of creating custom financial strategies for our clients is also understanding their tolerance for risk. Some clients are happy to take bigger risks in the hopes of a bigger return, and we can offer expert guidance in taking these types of risks. Other clients don’t feel as comfortable taking risks, so we develop a different strategy to meet their financial goals. Again, the key thing to remember here is that good financial advisors shouldn’t pressure you to take risks you’re not comfortable with.
Myth: It will cost too much to work with a financial advisor, so it’s not worth it
Of course, like any service, financial advisors do charge based on the time and services they’re providing. But depending on your goals and circumstances, a good financial advisor should save you more money than you pay them in the long term. They do this by looking for ways to save you money on insurances, increase your investment returns, help you get out of debt faster, and budget and save better. It can be a long-term game, so think of it as in investment in your finances.
Myth: A financial advisor will just tell me to stop spending money on things I enjoy.
We can’t speak for all financial advisors, but that’s certainly not our approach here at Endorphin Wealth! We provide wealth management advice to motivate and inspire our clients to reach their goals, whatever those goals may be. We even helped one of our clients put a plan in place so he could retire early to pursue his dream of sailing around the world! Of course, depending on your circumstances, your advisor may suggest cutting back on spending if it will help you achieve goals like financial stability or getting out of debt, but our aim is always to get our clients to a place with their finances that allows them to enjoy their lives more, not less.
What are the benefits of working with financial advisors?
Now that we’ve dispelled some of the common myths around financial advice and wealth management, here are some of the benefits that you might not have thought of yet…
Be proactive about your finances:
We’ve mentioned how financial advisors can help you achieve your goals, but what if you aren’t sure what goals you should be setting? You might have some vague ideas about owning an investment property or the type of retirement you’d like to have, but without any clear goals, it can be tempting to let your finances tick along, saving a bit here and there, but with no real plan in place. A financial advisor can look at your income and assets, and help you get some clarity around the type of goals you could be setting. Once you know what you’re working towards, you can be much more proactive about your finances.
Help you understand your goals:
If you have multiple goals, talking to a financial advisor can help you understand which ones to tackle first and put strategies in place to ensure you achieve them.
Provide expert insight:
Finance can be confusing, but like any field, that’s why there are experts. We do things like engage in external investment research so that we can find the best investment opportunities for our clients, using our expertise to reduce risk and increase returns.
Provide ongoing support and advice:
If you choose to work with a small firm like Endorphin, you will receive personalised service, and be able to develop close, ongoing relationships with your financial advisors. That means there will be someone in your corner if anything changes, and as you work towards achieving your goals.
We hope this has cleared up some myths, and highlighted how working with a financial advisor could benefit you.
The first step in working towards your goals is to meet with an advisor. We have financial advisors in Melbourne and Sydney, and you can book an obligation-free consultation today. Click here to get in touch.
Call financial advisors Melbourne: 03 9190 8964
Call financial advisors Sydney: 02 8052 3566