Why you're not too young to see a financial adviser

13/03/2018   Whitney Lian, Paraplanner

Financial planners are for old people, right? Well, not really.

The idea of seeing a financial planner, at any age, can be daunting. In fact, just about anything relating to finance is often placed in the “too hard” basket; something to be looked at another day.

It may seem that seeking financial advice is something you only do when you’re older and actually have money but maybe the best time to start is actually now! According to a 2016 study by the Financial Planning Association of Australia, 67% of Gen Y respondents “dream about the future at least a few times a week”. But what are we doing to make our dreams a reality? Are we putting up too many roadblocks by thinking financial planning is not for us?

I sat down with one of our financial advisers here at The Hopkins Group, to see what he had to say about some of the reasons why Gen Y aren’t seeking financial advice and getting a head start on planning their financial futures. As a member of this generation myself, these are some of the common objections I hear my friends make (and some I’ve even been guilty of thinking myself), so I was interested to hear how an expert could counter these arguments.

I don’t have enough money to invest

Well, one of the most crucial parts of being a financial adviser is to work with clients in terms of their budget and their spending; to make sure you are maximizing what you currently have to work with, helping you develop and cultivate more ways to be able to grow that wealth. This can be the money that’s currently in your super or in your personal account.

The earlier you start, the greater compounding effect you will have with your income. So I certainly think it’s important for young people to seek financial advice even though they may feel like they don’t have that much money.

I don’t know anything about finance

That’s one of the reasons why you see a financial adviser - we’re the specialists in that space! It’s our job to be across all of those things for you and help educate you along the way. That way, you’re also getting an understanding of what it takes to grow your wealth.

I’m too young to be thinking about insurance

I think that’s a thought a lot of young people have – that they’re bullet proof. The reality is that bad things happen, even to young people. I have a friend who died on the basketball court from a heart attack at 37 – he suddenly collapsed and couldn’t be revived. So I certainly think if you have a family and loved ones that it’s something worth considering, because if something happened to you then you’d want your family to be looked after.

I’m just going to leave my super with AusSuper/Hostplus etc…

It pays to be informed about what choices you have available. Industry funds are certainly  a huge proportion of Australian’s use but some of the disadvantages of that are the control you have and knowing where your funds are invested.

If you were to see a financial adviser to have them actively manage your super portfolio, then you’re looking at a bit more return, control and knowledge about what’s happening with your super contributions. It is important to make sure you’re selecting appropriate investments so that you are able to outperform those superfunds from an active management point of view.

It’s too expensive to see a financial adviser

The cost for seeking financial advice varies - it is related to the level of advice you’re after and the time spent providing advice. I normally break up my costing into three separate areas. The first would be a statement of advice fee, which involves the cost of preparing the advice document. The second fee is the implementation fee; when you receive the advice and you’re happy to go ahead for us to implement it on your behalf then there is sometimes a small fee to implement that strategy. The third fee is the ongoing advice fee, which you pay us for managing your portfolio and attending to any changes in your circumstances or in the marketplace and just being available to address any queries or concerns you may have.

Final points 

If there is one message I think we can all take away from my chat, it’s that it is never too early to seek financial advice. Think of financial advisers as your personal trainers – except instead of working on your physical health, they’re working to make sure you’re in great financial shape.

Financial advisers like the team at The Hopkins Group are there to help you learn more about your own situation and how you can put strategies in place to achieve your goals and make sure you’re prepared if life throws you curve balls. And the best thing is, the earlier you start, the longer you have to work on your results – hopefully placing you ahead of those who put things off by putting up the objections like those discussed in this blog.

So what are you waiting for? Get started today.


General Advice Warning: This blog may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. It is important that you consider your own situation before acting on any information contained in this blog.  Please seek personal financial advice prior to acting on this information.

Disclaimer: Shane Light is an Authorised Representative and John Hopkins Financial Services Pty Ltd is a Corporate Representative of WealthSure Financial Services Pty Ltd Level 1 190 Stirling Street PERTH WA 6000 ACN:130 288 578 AFSL: 326450.

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