The Benefits of Hiring a Financial Adviser When Investing

Investing requires a whole lot of knowledge in various aspects. However, not everyone will have the same skill and experience or the resources to learn all this. Luckily, you do not have to do it all by yourself as an investor.

If you have difficulties fully understanding certain aspects of investing or just need additional advice, you don’t have to worry. In this article, we will discuss the benefits of hiring a financial adviser as an investor.

Why Hire a Financial Adviser?

There are many benefits of hiring a financial adviser as an investor. A financial adviser can help you with the following:

1. Develop a Financial Plan

A financial advisor can help you develop a financial plan that includes your goals for investing, inside and outside of superannuation. They can also help you determine how much money you will need to invest, how to finance your investments, and what type of return you need to aim for to achieve your goals.

Without a financial plan, it can be difficult to build a strong foundation for yourself so that you can achieve the short-term and mid-term goals needed to set you on the right path to financial freedom.

In addition to this, your financial adviser can regularly review your portfolio to ensure you stay on track and can help you make necessary adjustments along the way.

2. Minimise Your Taxes

The Australian tax system is a multi-faceted, extremely complex system that becomes more complicated as you accumulate more wealth and attract higher tax rates. As you grow your wealth, it is likely that you may become liable for capital gains tax and your income from investments will require tax paid on interest, dividends, rent, etc.

Your financial adviser can help you structure your investments and finances to take advantage of investment opportunities whilst also considering the most tax-effective strategies and structures for your situation – this will help you to minimise your tax burden and in turn create more wealth for you.

3. Choose Your Investments

Investing can be risky, but it is one of the key ways to grow your money. While there is no such thing as a risk-free investment, there is a way to manage the risks and hopefully secure your desired returns.

No one knows when and how deep the market will fluctuate, but the market’s movement will affect your investments. The extent of the effects depends mainly on what kind of risks you take. The higher the risk, the more chances of getting a return; the higher chance of losses as well. Everything is about achieving a balance and learning which asset types you are willing to invest money in.

An experienced Financial Adviser has experience in constructing portfolios and understands how investment in different assets should be balanced and diversified based on your financial goals, risk tolerance, investment time frame and circumstances.

4. Protect Your Wealth

A robust financial plan is not only focused on growing your wealth but protecting it also. When it comes to protecting your assets, lifestyle and loved ones, seeking professional financial advice about life insurance will help prepare for the unexpected.

Life insurance products are complex and need to be tailored to each person and their circumstances to be effective as there is not a ‘one-size fits all’ approach. A customised combination of insurance, including Life, Total and Permanent Disability (TPD), Trauma (or Critical Illness), and Income Protection can minimise the financial impact on you (and your family) if ever a claim should be made. Expert insurance financial advice in this area is crucial to ensure you get appropriate wealth protection.

What Are the Responsibilities of a Financial Adviser?

A financial adviser is a professional who provides clients with financial planning and investment advice. Financial advisers can work with individuals, families, retirees and business owners from all walks of life. However, all financial advisers share the common goal of helping their clients achieve their financial goals.

The most common services a financial adviser can provide assistance in are Superannuation / Self-Managed Super Funds (SMSFs), Retirement Planning, Wealth Management + Investment Advice, Insurance Advice, Aged Care and Estate Planning. Many larger firms will have a team of advisers – each with their own expertise to ensure you get quality advice.

Put simply, a financial adviser is there to work in your best interests and ensure you have a quality financial plan in place so that you can achieve financial success and security.

Start Your Journey to Financial Freedom with Newcastle Financial Planning Group!

Investment planning is a difficult thing to do, but you don’t have to do it alone. With Newcastle Financial Planning Group, you can trust us to guide you through making difficult decisions in investment. Our team is passionate about delivering the best possible outcome for you based on your needs.

If you need an investment adviser, we’ve got you covered! Call us or book online to secure your first appointment with us today and learn how we can work together to achieve your financial freedom!