Why is personal financial advice important?

The Connector
12 September 2022
3 min read

Whether you’re starting out or further along in your life journey, good financial advice can help you set goals and plan on how to achieve these goals. A financial advisor can help you create a financial plan and support you along the way. Financial planners are qualified professionals who use their knowledge to help individuals better prepare for life’s ups and downs.

Many people look for financial advice when they have an important life event like getting married, starting a family, or when they are reaching retirement age, but financial advice can help you at any stage of your life.

Qualified, professional financial advisors use a step-by-step approach with their clients. The advice process typically uses a phased approach:

  • Understand your needs

Your advisor gets to know you and understand your financial situation. They will assess your current
financial health - your assets, liabilities, income, insurance, taxes, investments, and estate plan.
At this stage, the advisor should explain how they charge for their services.

  • Define your goals and agree on the advice you need

The advisor helps you clarify your financial goals and set out what you are trying to achieve in the
short, medium, and long term.

The advice you need depends on your financial goals, the stage of your life you are in and your current
financial situation.

  • Make a recommendation and discuss this with you

The advisor makes recommendations for your financial plan. It’s important that you read through the
recommended plan.

If you have questions, this is the time to discuss these.
You can then decide to action any of the recommendations.

  • Help implement recommendation

The advisor is there to help you implement any decisions you make based on the recommendations.

Financial advisors must make sure that their recommendations are personalised to your circumstances. They can give peace of mind when their years of expertise and knowledge are applied to your personal financial situation.


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