This year has been a year like no other with constant change and unpredictability so is it a good time to consider approaching a financial planner and who do you choose?
The Financial Planning Association of Australia’s website https://fpa.com.au/ says “Financial planning is about developing strategies to help you manage your financial affairs and meet your life goals – and the first step is to make sure you have access to the right advice. Working with a professional financial planner can give you confidence and peace of mind that your financial future is secure.” In other words, it’s about getting to know you, what you want and helping you achieve that.
Fenton & Associates are committed to the journey with you through the principles of long-term investing. A quick internet search will reveal a multitude of principles but underlying these principles is the importance of good value investments and recognising that whatever the financial markets are doing in the short term, they will recover and more in the longer term.
There is a hard lesson in the current pandemic where thousands of superannuation fund members who reacted to the early market volatility generated by the pandemic by switching their superannuation investment options crystallised their losses. Data provided to a Parliamentary Committee shows that many of those who rushed to switch during this multi-billion downturn missed out on the opportunity to benefit from the recovery in markets which increased by 17.77% in the April-June 2020 quarter.
There is also a surprising benefit of seeking out financial advice. Recent research shows the true value of advice as more than half of people without an adviser worry about money daily or weekly compared to around a third of people who do have an adviser. What may be surprising is that the overall wellbeing of people who have an adviser is markedly better in areas such as relationships, mental and physical health. The impact of financial advice on Australian's long-term goals was also positive, with 72.1 per cent saying they feel reasonably or very prepared for retirement. Meanwhile, 29.5 per cent of those surveyed without advisers say they feel the same way.
Though there has not been any change or impact at Fenton & Associates, the financial services profession has gone through significant upheaval over the past 12 months with over 8,000 advisers exiting the industry. It makes us wonder who is looking after the clients of those advisers that have left. We welcome the opportunity to assist you and your loved ones, family and friends that need advice. There is no cost or obligation associated with meeting with us initially.