Research confirms value of advice

financial-advice/property/IFSA/chief-executive/

5 November 2009
| By Mike Taylor |
image
image
expand image

Financial planning delivers a definable benefit to consumers, according to new research released today by the Investment and Financial Services Association (IFSA).

The IFSA-sponsored KPMG Econotech research revealed that the provision of financial advice can deliver a person as much as an additional $2,457 a year.

According to the chief executive of IFSA, John Brogden, the research highlights the value of advice not just to individuals but also to Australia as a whole because of its capacity to reduce the nation’s foreign borrowing requirement.

He said that if an extra 5 per cent of Australians received financial advice, the implications for the Australian economy within five years would be substantial, resulting in savings as a proportion of gross domestic product (GDP) increasing 0.5 per cent, foreign liabilities of GDP falling approximately 1.5 per cent and GDP itself rising 0.6 per cent.

In releasing the data, IFSA renewed its argument for the provision of financial advice to be tax deductible.

“Given the clear value and importance of financial advice, any reforms must ensure affordable access to financial advice for those Australians who most need it, particularly low income earners and young people,” it said.

“One way to improve access to financial advice is to make all financial planning fees tax deductible in much the same way fees for services associated with purchasing and owning an investment property are tax deductible,” IFSA said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS