Gen Y: Why you need Financial Advice
As a Millennial you may be sceptical of the need to pay for financial advice (preferring to consult friends and family and do your own research online), however there are benefits that may be obtained from sitting down with a financial adviser.
Areas for improvement
It seems many young people are experiencing money stress and are not on track to the future they expect and deserve. So if this sounds like you, perhaps it’s time to take matters into your own hands and seek the assistance of a financial adviser.
But can an adviser really help me?
Some younger people are wary of seeking financial advice believing that they don’t have enough money to invest, can’t afford it or simply don’t need it. But these days there are advisers who offer simple, straightforward advice for a transparent fee, meaning you only pay for the advice you want.
Budgeting, debt management and saving
With a greater access to credit and continually growing pressure to consume, it can be easy to not live within your means. But budgeting and saving doesn’t have to mean going without. A financial adviser can help make your money work smarter for you – helping you pay-off debts sooner, plan and stick to a budget and suggest ways to get clever about saving. They can also help you set goals – providing better motivation and introducing money habits that can set you up for life.
With retirement so far off, the last thing many Millennials want to think about is their super. But that’s exactly why it does matter. The power of compounding growth may mean the decisions you make for your super now can have an even greater effect on your retirement savings than those you make closer to retirement. In fact, something as simple as changing to an account with lower fees, consolidating super or updating your investment strategy can have a major impact down the long road to retirement.
An adviser can help you get off to a good start – tracking down any lost super you may have, consolidating into one diversified portfolio and choosing a strategy that fits with both your time to retirement and comfort with risk.
These days you don’t need a lot of money to invest to have access to a diversified portfolio of quality investments. An adviser can set you up with a straightforward, low cost starter portfolio helping you to potentially spend less on fees and have more to save for your future. Better yet, once you have portfolio in place, you’ll have more motivation to start investing more regularly and your adviser may suggest strategies such as a regular savings plan.
Protect your valuables
As you start hitting major life events such as starting your career, getting into a long-term relationship or buying your first home, it becomes more and more important to have the right level of insurance in place to protect yourself and your loved ones from financial misfortune. A financial adviser can suggest strategies to get the protection you need to protect your most valuable assets – your family, your lifestyle and your ability to earn an income.
To a generation that is accustomed to getting all the best resources they need cheaply (or even free) online, financial advice can seem costly at the outset. But when you consider the money you can save and grow over the next 30, 40 or even 50 years, you can see the reasons why it is worth considering seeking professional advice now.