Unfortunately, many people who need simple financial planning advice at different stages of their lives do not obtain that advice. Yet such professional guidance may make a significant difference to their financial well-being. Superannuation consultants and actuaries Rice Warner, however, have just published a new report, The Transformation of the Financial Planning Industry, forecasting a sizeable growth in the demand for such advice. And this demand would be driven, in part, by the advice being much more readily available. “Our projections show that the demand for full (holistic) advice is likely to be broadly stable while the demand for simple advice will increase substantially,” says Rice Warner. Indeed, the point would be reached where one in seven employed people obtain financial regulated financial planning advice each year. Industry Super Network had commissioned the report after the federal Government announced its proposal to bar advisers from charging commissions to retail investors. The report’s findings are based on the assumption that the proposal is passed into law. Rice Warner believes the needs for simple financial planning advice facing “average Australians” would include obtaining answers to these straightforward questions: - How much should I contribute to super to have an acceptable lifestyle in retirement?
- How much insurance cover should I obtain to look after my family and other dependants?
- How do I obtain Government assistance such as Government co-contributions to super?
Just think of different stages in your lifecycle when you could have greatly benefited from at very least a little financial planning advice. Such stages may include when you started your first job, when you first married, when you began to seriously invest, and when you were preparing for retirement. And then there are the different periods in your retirement. The list seems almost endless. Rice Warner emphasises that there are many people with “complex financial and family affairs” who would certainly benefit from holistic financial planning advice. These may include those with small-medium businesses, family trusts, significant wealth, and senior executive positions with little time to look after their personal finances. “Their circumstances require analysis [by a financial planner] before advice can be provided.” The point should ideally be reached where knowing where and when to obtain quality financial planning advice becomes second nature to much of the population.
17th-May-2010 | 
