We often hear a lot of reasons about why people won’t engage a financial adviser. Some are obvious reasons, while others are far-fetching and stem from outside opinion; often by family members. Whatever camp you’re in, pro or against, we’ve listed our top reasons why people don’t engage with a financial adviser.
Top six reasons why people do not engage:
- It’s not for me, I’m not in a position to afford it.
- My finances are all over the place and I’m ashamed to admit to it.
- The type of information is far too complex and time consuming.
- The advice is tailored towards the advisor getting the commission from product recommendations.
- It’s too expensive.
And the most common reason, which we often love to hear as we really like a challenge:
I don’t need advice. I know what I’m doing. It really isn’t that complicated.
These types of attitudes mostly sit with people who don’t truly understand wealth and have been guided by either family or friends. Unless someone knows your situation intimately and they’re working in the financial industry, they are only speculating. What’s good for them is unlikely going to be ideal for you.
Another strong belief we see is thinking all debt is bad. Investment debt is 100 per cent tax deductible and if structured appropriately can significantly boost your ability to generate wealth.
Not understanding what financial planning is can also be a major hinderance. With little education around managing your finances it isn’t surprising why people are so conflicted on whether they should engage or not.
Financial planning is about developing strategies to help you manage your financial situation and meet your life goals. The first step is to make sure you have access to the right advice and understand how that advice will benefit you.
We find our clients will engage with us at various stages of their life. These include:
- Buying their first home
- Starting a family
- Supporting the family
- Managing debt
- Reaching their retirement goals.
If you have any questions about how you can reach your financial goals and you want to worry less about your long-term financial position, contact us now or call 1300 473 347.