According to a recent study called “Trust in Advice” by Financial Advice New Zealand, financial advice offers real financial as well as psychological benefits to customers, and advisers in New Zealand are widely seen as trusted professionals. But what is financial advice worth? At some point, most Kiwis will consider the question of whether to hire a financial adviser. Unfortunately, most choose not to work with a professional.

So, why is it that most of us decide to go it alone? Is paying for financial advice really worth it? The survey data clearly says it is. Nearly all Kiwis who pay for financial advice report that they are very satisfied with the service and experience greater financial security and freedom than those who don’t.

Despite that, the advice industry is changing. People are increasingly turning to free digital advice and more general sources to help them, even if a traditional adviser might serve them better. While financial advice is still highly regarded, many large financial organisations – like banks – are pulling out of offering advice. At Trustees Executors Private Wealth, we’re bucking the trend, continuing to offer personal financial advice. The study confirms what we and our clients have known for some time: that solving clients’ money problems adds considerable value to their lives.

Financial advice is about taking control of your future

Financial advisers are often erroneously seen as people who tell you how to best invest your money. That’s not strictly false, but it’s also an inadequate explanation. A good financial adviser can help you to navigate a confusing array of investment options and make well researched and detailed investment recommendations. Really, though, money is just a means to an end. Financial advisers don’t just focus on the money, but also on helping clients to achieve the ultimate purpose behind building wealth in the first place.

A financial adviser’s real job is to help their clients realise their financial and personal goals. It’s not always about pursuing the greatest possible returns. Often, that means helping the customer to build their own financial competencies over time, allowing them to manage their finances in a way that allows them to create the lifestyle they want for themselves. Whether that means finding a way to secure a comfortable retirement for someone getting a late start or building secure intergenerational wealth depends on the customer, their goals, and their situation.

Advice works

According to Financial Advice New Zealand’s Study, Kiwis who use advice are much more likely to feel financially secure, to save at least 10% of their income, to purchase a home, and to feel in control of their financial future. Moreover, a study by the Financial Services Council (FSC) last year, Money & You - Breaking through the Advice Barrier, showed that advised Kiwis receive 4 per cent more in investment returns than unadvised Kiwis, and hold approximately 50 per cent more money in their KiwiSaver account.

Many large organisations are no longer offering advice

While it’s clear that advice is a valued (and valuable) service for consumers, many large organisations are phasing out personalised financial advice. Australasian banks in particular have been conflicted in the way they have been selling their own products (Hayne Royal Commission). Younger people are also increasingly turning to free digital advice as an alternative to a traditional financial adviser.

At Trustees Executors Private Wealth, we believe in personalised financial planning and advice, both in terms of its value for our clients, and as a viable and competitive service that continues to earn its place in the financial services industry. FSC research as well as studies like “Trust in Advice” consistently demonstrate a high degree of satisfaction with, and trust in, financial advisers among Kiwis. While digital advice definitely has its place, it can’t offer the specific and personalised support that a financial adviser can bring to the table.

Are you concerned about your retirement goals, or building and protecting wealth? If you’d like to learn more about how we can help you to achieve your financial goals, contact us to take advantage of a complimentary no-obligation consultation with one of our Private Wealth Advisers today.