A financial advisor will assist you with setting achievable and realistic goals for your future. This could be either starting a business, a family, planning for retirement – all of which are important chapters in life that need careful consideration. 

A financial advisor will take their time to discuss your situation, short and long term goals and make recommendations that are right for you and/or your family. Ongoing evaluation and monitoring are also important in case of any major changes to your situation that would need adjusting.

A study from Dalbar (2019) has illustrated that over 20 years, while the average investment return has been around 9%, the average investor was only getting 5%. And the difference, that 400 basis points per year over 20 years, was driven by the timing of the investment decisions.

Their role:

  • Manage your portfolio
  • Protect your assets – estate planning
  • Retirement planning
  • Manage your super
  • Tax investment and management

Before creating a plan 

You will be required to take a risk tolerance questionnaire to provide your advisor a clearer picture to determine your investment asset allocation and preference. It will touch on your income, liabilities, assets and expenses to begin creating the financial plan that best suits you. 

What happens next?

Your advisor will examine whether you are a high, medium or low risk taker and set up an asset allocation that fits your risk tolerance and capacity based on the information you have provided.  For example a high-risk (high return) individual may invest in shares and property whereas a low-risk (low return) individual may want to invest in cash and term deposits. 

Four main reasons and advantages to engage a financial advisor: 


1. Setting measurable financial goals :

  • To set specific and measurable goals. Meeting with an advisor will open up and help you reach goals you may be not aware off. 
  • Allow you to understand the effects of your decisions and carefully analyse potential results. 
  • A new advisor can give you a whole new approach and improve your control over your financial lifestyle.

2. Manage your income effectively :

  • You will gain a better insight on how much money you will need for both monthly and annually expenses to help increase your savings. 
  • Therefore, the more you save, you can choose to invest and build your wealth.

3. Save time:

  • Once you engage a financial advisor, you don’t have to manage your portfolio. 
  • This saves you a lot of time, effort and energy.

4. Financial Security :

  • It is important to have proper insurance policies which can provide peace of mind for you and your family.