If you are thinking about investing, whether that be in shares, assets, or KiwiSaver, you should consider seeking expertise from an experienced financial adviser. The investment world can be a confusing one, and it is easy to get lost in and waste countless hours getting nowhere. So if you are wondering if seeking financial advice is worth your money, then the answer is a big YES, and we are here to tell you why.

Over the past two years the investment market has been extremely volatile, making it even harder to navigate through. Coupled with this year’s economic uncertainty, the value of getting some financial advice is at an all-time high. Our experienced financial advisers and investment team are constantly researching and aware of the continuous changes and challenges in the market and are ready to help guide you through your investment journey.

So, what is really the value of receiving financial advice? Well, according to the 2022 Value of an Adviser Report by Russell Investments, the value of an adviser in New Zealand is approximately 4.3%. This is similar to findings by the Financial Services Council’s Money & You research “Breaking through the Advice Barrier”, where advised Kiwis were found to have on average, a 4% increase in investment returns, around 52% more in their KiwiSaver and save 3.7% more for their retirement than those who are unadvised. With the knowledge of these findings, financial advisers provide real value especially during times of economic uncertainty.

How will a Financial Adviser Help?

Whether you're a seasoned investor or new to investing, there is always something that our financial advisers here at Trustees Executors can help you with.

Firstly, receiving financial advice can help you with appropriate asset allocation. According to Russell Investments’ Making Super Personal White Paper 2020, asset allocation helps to improve 85% of investment outcomes. With investment comes knowing about relative risks and rewards. Financial advisers are experts in mitigating potential risks involved in investing. Increased market volatility over the last two years and potentially in the next year to come, means self-directed investments can carry risk that may result in zero reward.

Dipping in and out of the market in uncertain times is a big risk when it comes to investing. By seeking financial advice, mitigation of these challenges becomes more straightforward, meaning you don’t need to feel like the risk is too high, which can often lead to withdrawal of investments. Abandoning investments, especially in a market dip, can mean permanent investment loss and missing out on potential subsequent market improvements.

Life can become increasingly complex and as you get older, priorities also change. When it comes to your investment strategy, this is directly affected by your life choices and what is important to you at that moment in time. Alongside this comes an increase in decisions that need to be made, and increased understanding of the consequences these decisions may have on your investments. This can be very overwhelming and can lead to burn out, which may result in further poorer outcomes. Having a financial adviser that understands your needs will help you to achieve positive outcomes whilst meeting all your financial and personal priorities. Our financial advisers will help shape an investment portfolio that takes into account your particular circumstances and preferences whilst also considering any other external factors.

The expertise of our experienced advisers at Trustees Executors is all-inclusive. Our advisers are equipped to provide advice to navigate the complexities of investing in the New Zealand financial market, and also the complexities of day to day life as a New Zealander. Our team will engage and work with you in a way that fits your needs. We can help guide you through the emotional burden of investing, advocate on your behalf, and provide perspective on your decisions.

Value Beyond Measure

The value of receiving financial advice extends far beyond the direct financial returns from your investments. The Financial Services Council’s Money & You research “Breaking through the Advice Barrier” thoroughly examines the benefits of receiving financial advice that can’t be measured quantitatively.

Findings showed that those who sought financial advice were able to save more, travel more, spend more, and have improved overall and financial wellbeing when compared to those who did not seek advice from any financial adviser. The points below outline a few of the ways value can be gained beyond the measure of direct financial returns.

• Financial Literacy – people who sought financial advice were 20% more likely to understand the different components of their KiwiSaver portfolio than those who didn’t.
• Savings – Financially advised Kiwis saved 3.7% more of their income.
• Travel – There is a 6 fold increase in the amount of times per decade financially advised Kiwis travel.
• Insurance – People who are advised are more likely to have insurance cover than those who aren’t.
• Overall Wellbeing – 13.3% of those who are financially advised describe their overall wellbeing (including physical, mental, emotional, and social health factors) to be ‘very high’, compared to those who aren’t advised, sitting at 6.6%. Also a higher proportion of people describe their overall wellbeing as ‘low’ or ‘very low’ when not financially advised.

To Conclude

The value of using a financial adviser to assist in your investments is difficult to appreciate until you see for yourself the benefits it can have for you as an investor and as an individual. As stated in the 2022 Value of an Adviser Report by Russell Investments, 74% of advised New Zealanders agree that using a financial adviser has helped them achieve better outcomes overall in their life, and 78% of this same group agree that getting advice gives them peace of mind.

Receiving expertise from a financial adviser is invaluable. Just by getting a bit of extra advice and education you can help to improve your overall outcomes in the long-term.

Contact Us

If you are interested in seeking financial advice or want to learn more, please don’t hesitate to contact the team at Trustees Executors, either by phone on 0800 878 783 or by email at [email protected].