by To celebrate Financial Planning Week last week Benjamin King Money Wealth put together a number of posts why seeking financial advice is important to you.
Murray Nicol, Financial Advisor at Benjamin King Money Wealth provides the firm’s approach to Financial Planning.
“At Benjamin King Money Wealth we take a Goal’s Based Approach to our Client’s Financial Planning. Starting with your Goal’s and Objectives, understating what is important and then working with our Client on formulating a Plan. We will often say the process is:
- Goals and Objectives,
- Education and understanding,
- Strategy,
- Structure,
- Investments.
This approach helps achieve our Client’s maximum financial well-being”. Financial success doesn’t happen by accident. It takes planning, knowing where you are heading and devising a strategy for how you will get there. Benjamin Franklin summed this up by saying “If you fail to plan, you plan to fail”.
This year, the Financial Planning Standards Board (FPSB) unveiled some compelling insights from their “Value of Financial Planning Research.” This comprehensive study aimed to quantify the impact of financial planning on the lives of clients. It introduced the FPSB Value of Financial Planning Index, which ranges from 0 to 100 and serves as a powerful indicator of the influence financial planning has on individuals’ lives.
One of the key findings of the study was that 68% of individuals advised by Certified Financial Planners (CFP) reported experiencing a higher quality of life compared to 63% of those who received no professional advice. Moreover, 65% of CFP-advised individuals expressed greater satisfaction with their financial situation, a notable increase from the 55% reported among unadvised individuals.
The impact of financial planning extended beyond just the numbers; 64% of CFP-advised individuals stated that they felt more confident in their financial decisions, contrasting with the 56% of unadvised individuals who shared this sentiment. Furthermore, a striking 74% of CFP-advised clients reported a better overall experience with the financial planning process, reflecting the substantial value of professional financial guidance.
When clients were asked about the top five benefits of working with a financial planner, their responses painted a clear picture of the positive changes brought about by these partnerships:
- Better financial decision-making confidence
- Improved financial well-being and peace of mind
- Saves time and effort when organizing finances
- Helps to explain and simplify complex financial matters
- Greater satisfaction with their wealth
Financial planning not only enhanced the financial aspects of clients’ lives but also had a significant impact on their overall well-being. A noteworthy 73% of CFP-advised individuals believed that financial planning helped them fulfill their life dreams. In addition, 68% felt more capable of coping with health issues, emphasizing the broad spectrum of benefits that financial planning provides.
The positive impact of financial planning extended to families and mental health as well. 40% of CFP-advised individuals stated that financial planning had a positive impact on their family life, while 45% reported improvements in their mental health, highlighting the holistic benefits of professional financial advice.
Trust was another significant factor. A staggering 95% of CFP-advised individuals expressed trust in their financial planners to act in their best interests. This trust is a testament to the industry’s commitment to maintaining high ethical standards and client-centric approaches.
The study also revealed that financial planning has become a top priority for the younger generation, particularly Generation Y. Several interesting statistics indicate that they are proactive and keen on securing their financial futures:
- 47% of Gen Y have or expect to receive an inheritance or major financial support in the coming years.
- 47% anticipate receiving these funds within the next decade, with 80% of them expecting sums above AUD$75,000.
- 72% of unadvised Gen Y individuals are open to paying for financial advice, reflecting their recognition of the value of professional guidance.
- 36% have never engaged with a financial planner but are open to the idea, with 59% of them planning to seek such advice within the next three years and 89% within the next decade.
In summary, the FPSB Value of Financial Planning Research highlights the profound impact of financial planning on the lives of Australians. Whether through improved financial well-being, increased confidence, or even better mental health, the data paints a clear picture: financial planning is a catalyst for positive change and a trusted partner in achieving financial and life goals. As the younger generation recognizes its value and prepares for the future, the role of financial planning in our lives is set to continue evolving and expanding.
Please contact a financial planner at Benjamin King Money Wealth to discuss if your current financial advice is not meeting your financial well-being and objectives. We would be more than happy to assist.
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