Common myths relating to Financial Advice
Seeking financial advice from your planner can benefit you no matter how old are you or you are married or not , getting high or low income.
A good financial advice can not only help people for saving money, but also protecting their money and their family member financially and building wealth for the future.
People intentially escape from financial advice due to various reasons. Some of them puzzled with their financial situation, whereas others don’t have much surplus funds to invest.
most of the people have a misconception that the financial planning is just about relevant only for retirement planning. Certainly, poor financial acts.
Let us know some very common myths and facts about ‘FINANCIAL ADVICE’. Think twice and get to know the reality before basing any of your financial actions upon the following:
Myth 1: Don’t have enough surplus money for investment.
Fact: You actually don’t need a enough surplus funds to invest.
It is not necessary to be a high net worth individual to get the benefits from financial advice. Your financial planner can actually help you with everything from budgeting to managing debts, and from superannuation to planning retirement.
Myth 2: People close to their retirement look for financial advice
Fact: It is never too early to seek advice.
Usually, people don’t consider for seeking advice until they are nearing the retirement age to take advice from financial planner . It is never too early to start.actually , peoples who start early their professional lives can largely benefit from a sound financial advice.
The earlier a person starts building wealth, the better. It is always beneficial to develop good money habits at an early age, to prevent you from financial problems later in life.
Myth 3: Not required
Fact: Seeking financial advice is actually one of the most important things one can do.
Most people don’t have insurance (that may include life insurance, income protection plans, trauma insurance, and disability – total and permanent -TPD insurance), in the event of the loss of their income.
Financial advice can even imply that you have a will to ensure that right funds end up in the right hands and at the right time.
It is also important that you have a permanent power of attorney, to enable someone to guarantee guardianship if you are incapable.
Myth 4: Financial Planners charge too much.
Fact: You cannot actually afford not to have a financial advice.
Considering all the benefits of financial advice, you will realize that is indeed worth it. Financial advisors are in fact a good value for money.
Sometimes, advisors also offer initial consultation for free or at discounted price. This can surely be of help to people, who don’t want to involve in the complete financial planning process straight away.
In addition to free, there can also be a scaled advice. Such kind of advice addresses financial issues one at a time for e.g. budgeting, insurance, etc.
Myth 5: Will I get an independent financial advice?
Fact: Choose financial planner wisely
Take wise decisions to find and be sure of someone you can trust. You should try considering a licensed partner, who doesn’t receive open commissions on any of the investment products.
Search a good financial advisor who charges a reasonable fee for their advice and its implementation. Ask from friends and family. Since finance is quite a personal matter, so you need to look for someone who understands both you and your situation.
Some people are confident enough to make significant financial decisions on their own. Some others may need a helping hand, may be that of their financial advisor. Financial advisors do not assure you a magic mantra, but can surely assist you with any kind of financial situations.
No matter you choose to go solo or with any financial planner, remember two important things – keep on educating yourself and refrain from any kind of financial myths, rather get to know the facts.