What is a financial advisor and when should I see one?

29 Sep What is a financial advisor and when should I see one?

It’s a question many people ask, so we have put it to our in-house specialist Luke Grundy. So, what is a Financial Advisor, what do they do and when should I see one?

Financial Advisors come in different forms, you have your all rounders and your specialists and making sure you are sat in front of the right one at the right time is crucial to getting the correct help. The easiest way to think about this is to think of the all rounders as your GP, they can help you with almost everything you need when it comes to financial advice – Budgeting and Money Management, Superannuation, Investments, Personal Insurances, Debt Management, Retirement Plans, saving plans etc…  However, at certain times they will need to refer you to a specialist, to get the correct advice for your situation.

You then have your specialist who specialise in one or two areas, much in the same way an anesthesiologist or oncologist does – they have a specific expertise in one area and that is where they focus their time and efforts, for example – Self-Managed Superannuation specialist, investment specialist, Retirement specialists and aged care specialist. These advisors will be able to help you in their relevant speciality and refer you to other professionals when more help is needed.

So not all advisors are created equal and it pays to find out what your advisor is qualified and registered to give advice in, before meeting with them. Make sure you ask your advisor during your first meeting if this is an area of advice that they are familiar with.

ASIC’s Moneysmart website has a find an advisor tool which is a great place to start –

www.moneysmart.gov.au/investing/financial-advice/financial-advisers-register

 

So, at Humblebee Financial Planning what can we help you with. We are all -rounders when it comes to advice and can help in many areas. The easiest way for us to explain how we help is to break down our clientele into age brackets – or life stage events – and show you what we typically help these clients with:

 

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Age 25-35 – Clients are typically first home buyers or thinking about buying, either with young families or looking to start a family. Areas of concern include:

  • Savings plans – How to save for a deposit
  • Money Management – wanting to get ahead early and make their money work for them.
  • Family Protection – Personal Insurances – Risk Management
  • Investment advice – To buy a house or not to buy a house
  • Superannuation advice – Education and understanding

 

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Age 35-55 – Clients typically have families, have debt against there home, are earning and working at there full capacity and trying to get ahead whilst also enjoying life. Areas of concern include:

  • Family Protection – Personal insurance – risk management
  • Money Management – How to handle the cashflow of the household – They want to get ahead but also enjoy the money they are working hard for
  • Debt management and reduction strategies
  • Investment strategies – how to build wealth
  • Superannuation and looking towards the future