Investment Guide

The benefits of financial advice

There’s no doubt the financial decisions you make today can have long lasting results, both for your present and future life. So, whether you're a seasoned investor or just starting out, chatting to a financial adviser can help you take control of your finances and make a difference to your financial wellbeing.

Is it worth getting financial advice?

Yes. Seeking financial advice can help you make informed financial decisions, navigate unexpected events, keep calm during market ups and downs, and stay focused on your long-term goals. Saving and investing is not always easy, but a financial adviser can help you create a plan. They can recommend investments, insurance, and other tools that align with your needs, goals, and comfort level with risk.

It’s never too late to plan for a comfortable and secure financial future. Empower yourself and make informed financial decisions for you and your family both now and in the future.

The importance of financial advice

Check out our video below where AMP Executive Blair highlights the importance of financial advice, the benefits of helpful guidance, and where to go for expert advice.

What are the benefits of financial advice?

Here are some key benefits of getting professional financial advice to help you achieve your financial goals.

1. Goal setting and planning

A financial adviser can help you define your financial goals, whether it's a comfortable retirement, first home, or dream vacation. They'll then work with you to create a plan to achieve them.

2. Expertise and knowledge

Advisers stay updated on the latest financial trends and have a deep understanding of things like investments, insurance, and planning for retirement. This means they can explain complex financial concepts in a clear and easy to understand way.

3. Risk management

Advisers can assess your risk tolerance and develop an investment strategy that aligns with your comfort level. If suitable they can help you diversify your investments, which is one way to minimise risk and optimise returns. They can also help you with investment decisions.

4. Retirement planning

Advisers help plan for retirement by estimating the amount needed for a comfortable retirement lifestyle and can assist with retirement savings strategies, including employer plans and other retirement accounts.

5. Adaptability to life changes

Advisers help navigate changes in income, expenses, and financial priorities and can adjust financial plans in response to life events such as marriage, the birth of a child, purchasing your first home or a career change.

6. Estate planning

Advisers can put you in touch with the right people to assist in creating an estate plan, including wills, trusts, and beneficiary designations.

7. Continuous monitoring and adjustments

Typically, it’s possible to set up regular annual catch up sessions to review and adjust your financial situation with your adviser to ensure you stay on track to reach your goals.

Who is financial advice for?

There is a common misconception that financial advice is just for the savvy investor with large investments. That’s simply not true. Financial advisers should be seen as a partner on any financial journey, someone to walk that path with you to help you achieve financial security. Having a well-thought-out financial plan based on expert advice can provide financial stability, peace of mind and reduce stress.

According to a previous Money and You survey, released by The Financial Services Council as part of its work on New Zealanders' relationship with money, found that people who got financial advice received an average of 4% better investment returns and had 3.7% more in their savings.

With that in mind, one of the best things you can do to ensure your finances are on track is book an appointment and have a conversation with a financial adviser today. By speaking with a financial adviser, you can find out how your plan is working (or not) for you, and they can provide guidance on some suggested changes if needed.

Frequently asked questions

Is seeking financial advice a good idea?

Absolutely! Financial advisers can be valuable partners in navigating your financial journey. They can offer personalised guidance based on your unique goals, risk tolerance, and financial situation. Making financial decisions can feel daunting, especially with ever-changing markets and complex investment options.

Seeking professional financial advice can be a wise decision as a good financial adviser doesn't offer a one-size-fits-all solution. They take the time to understand your circumstances. This personalised approach ensures your financial plan is tailored specifically to you, creating a clear roadmap for achieving your goals, whether it's saving for a first home, planning a comfortable retirement, or leaving a legacy for your loved ones.

Advisers have in-depth knowledge of investment options and market trends. This expertise allows them to navigate complex financial decisions with confidence. For many of us, financial worries can be a major source of stress. A financial adviser can provide peace of mind by monitoring your progress, adjusting your plan as needed, and offering ongoing support. This partnership ensures you're always on the right track, even when faced with unexpected life events.

It's also key to remember that financial goals are rarely achieved overnight. A financial adviser helps you maintain a long-term perspective. They can keep you motivated during challenging times and ensure your financial decisions today are paving the way for a prosperous tomorrow.

What are some of the benefits of working with a financial adviser in New Zealand?

Financial advisers can help you with a range of financial decisions, including retirement planning, investment decisions, and budgeting. We know that financial markets can be complex. Advisers translate jargon into understandable terms, helping you make informed decisions. They assess your risk tolerance and tailor strategies that align with your goals, giving you peace of mind.

Researching financial products and strategies can be overwhelming. Advisers offer their expertise, saving you valuable time and effort. They can navigate complex financial options, ensuring you choose the ones best suited to your needs. Whether it's saving for a first home or securing your retirement, a financial adviser designs a roadmap for achieving your long-term goals. They consider factors like inflation and market fluctuations, helping you stay on track for the future you want. Advisers can also empower you with financial knowledge and guidance.

By working with a professional, you can gain insights to make informed decisions for your long-term financial well-being.

Do financial advisers only work with wealthy people?

Not at all! This is a common misconception. Financial advisers work with people from all walks of life and income levels. They cater to a wide range of people, from young professionals just starting their careers to families planning for their future and retirees seeking to maximise their income. Financial news might showcase advisers managing massive portfolios, but that's not the whole picture.

Seeking professional financial advice is essential for everyone, regardless of income. Working with a financial adviser can help you build a strong foundation (budgeting, emergency savings) and navigate financial products (KiwiSaver, investments) to suit your goals and risk tolerance.

Whether it's buying a home or planning for retirement, a financial adviser creates a personalised strategy for your long-term financial goals.