Why investors continue working with financial planner
Today I thought I would change a topic a little and discuss with you an interesting article I read the other day titled: Why do investors keep their financial advisers around?
Here are the findings by the Morningstar research:
5. 9% of respondents said they continue their relationship with the financial planner because of a specific financial need or goals that they have, therefore a financial planner can perform specific financial transactions as needed for clients to reach that specific financial outcome.
4. 12% of respondents said that they work with a financial planner because of returns: “He/She makes me money”
3. 16% of respondents said that they are working with a financial planner for guidance, to confirm the financial step they want to take is the correct and beneficial for their future financial outcomes. This could be during the time of stress and most certainly preparation for the time of retiring from work and going into a bit of the unknown retirement can be stressful and daunting, especially not knowing the best financial set up and if you have enough to continue your life with the lifestyle you have envisaged for your retirement.
2. 22% of respondents said that the reason they continue working with the financial planner is the quality of advice provided, such as consideration of things that otherwise maybe would not have been taken into equation, such as tax, government benefits, investment portfolios, dealing with market volatility, paying attention to estate planning, how to prepare for the extended health care etc.
1. But the biggest number of respondents – 37% said that the main reason for working ongoingly with a financial planner is a Peace of mind, discomfort handling own finances, and trusting the financial planner in their ability to work for your best interest.
And I believe this is a spot-on reason, I never promise my clients the best returns, how can I? this is outside of my control, and if anyone promises such a thing, think hard what is the reason for such a promise and what is the probability of delivering that promise?
But just because I do not promise, does not mean that the returns are poor or mediocre, actually you could as our clients and they will say that investments returns have been more than satisfactory.
What I can promise is that I will always act in the best interest of our clients. I will always be available for assistance; I will always try to find the way to improve your financial situation or your outcomes. Those are the things that I can control, as they are based on my knowledge, expertise, and experience. Markets, I cannot control, and nobody can, not even the biggest super fund as per one of my latest articles: ‘AustralianSuper makes a monster investment loss’
By: Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement
