Planning adds real value
Jo-Anne Bloch
The Financial Planning Association (FPA) has produced research reinforcing the value of advice by revealing how much value is unlocked when consumers consult a financial planner.
The research, conducted by Rice Warner Actuaries, looked at eight case studies and revealed that $1.7 million in collective financial value was unlocked by obtaining and acting on financial advice.
Commenting on the research findings, the chief executive of the FPA, Jo-Anne Bloch, said the components of advice that generated the most value for clients included financial education, maximising government support, budgeting, goal setting, life insurance, tax management, compounding returns and cash flow management.
“A financial planner can help consumers understand the benefits and risks of investing, relative to their particular situation and longer-term financial goals, which is critical during times of market volatility like we have experienced recently,” she said.
Rice Warner Actuaries director Michael Rice said the non-financial benefits of advice included increased savings through more planned cash and debt management, improved lifestyle stability arising from appropriate insurance coverage and enhanced life opportunity.
“We found that obtaining financial advice on a single issue can lead to changes in savings behaviour such as setting proper budgets or following a plan for paying off debt,” he said.
The FPA will launch a promotional campaign in May to present research findings to the public, according to Bloch, who expects some difficulty in attributing value to intangible benefits.
“The challenge for us now is to distil the message,” Bloch said.
AUTHOR
Mike Taylor
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
