How can a financial adviser help you?

How can a financial adviser help you?

Chris Browne

The best financial advisers develop strategies which factor in client goals, risks, costs, as well as a typical spending habits.

When not approached responsibly, investing can be like gambling – luck of the draw. With the help of a good financial adviser however, investing can be more like an exact science with a higher chance of success.

A good financial adviser knows that investment strategy is about more than performance. Above all, an investment should be viewed as a tool that can enable people to live the life they want to lead. Maybe you want to buy your first home, travel overseas every year or retire early. Whatever it is that you want, a good financial adviser should take the time to listen to your hopes and dreams and then work backwards from there to devise an investment strategy that will help you achieve what you desire.

Furthermore, a financial adviser should minimise the risk, at least to the point that your main goals and objectives are achieved with any extra cream above that being a bonus. One of the ways a good financial adviser will go about doing this when investing is by encouraging clients to build a diverse investment portfolio that consists of a mixture of property, shares, bonds, and cash.

While a financial adviser should manage risk and maximise the likelihood of success, beware of advisers who don’t mention the possible downsides of investing. Real estate markets can crash, a financial crisis can occur and things can happen that are out of anyone’s control. Therefore a financial adviser is obligated to make you aware of ALL possibilities, both good and bad, along with best and worst case scenarios.

As well as advising on prospective long-term investment gains, a financial adviser should also guide you through any financial benefits or downsides. These include associated taxes (obviously with the help of an accountant), fees and potential government legislative change, all of which can be daunting and confusing without the guidance of a professional.

Lastly, an adviser should always look at your investment strategy as part of a holistic financial strategy. Perhaps there are little tweaks you can make to your spending habits that will enable you to build your investment portfolio faster? Investment advice is always best given by someone who understands the broader picture of your financial situation.

The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice or its related entities. This information is general in nature and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. To view our full terms and conditions, click here.

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