As a financial adviser I meet a lot of people and each one has their own individual relationship with money. Some are confident. Some are cautious. Some want to know as much detail as possible. Others are comfortable just understanding the bigger picture and are happy having someone with the experience and expertise to look after the details.
Everyone’s situation is different. But when it comes to seeking advice about money, I find there are two themes that often underlie money questions: trust and uncertainty.
Trust is obviously important when it comes to financial advice. But it’s not only because money can pay for things we value (like housing, transport, retirement and more leisure time, for example.)
We’ve all heard stories about what can happen when there’s a breach of trust. Sadly, the financial industry has not been immune to instances of firms acting unlawfully by failing to act in the best interests of their clients. The harm of such conduct goes beyond even the significant financial losses to clients of those firms.
Law-abiding financial advice firms are also then left to contend with increased levies and costs, which are then passed on to consumers as a result.
Then there’s a broader, more intangible aspect: it can make it even more difficult for people who need financial advice to take that daunting first step and reach out to a professional adviser when they need it the most.
The other main theme that underpins many people’s questions about money is (un)certainty.
Uncertainty becomes particularly relevant when it comes to investing.
As a financial adviser, I’d be doing my clients a disservice if I claimed to know with certainty what the future would bring any investor in terms of (positive or negative) returns each year if they invested money here or there.
In fact, I’d steer clear of any financial adviser who claims they can guarantee a particular return on investments (other than keeping your money in the bank, that is).
Does that mean you shouldn’t invest? No. It means that – as much as you may feel you want to hear an outcome (that sounds certain) – what you really want your adviser to do is inform you of the real risks (and possible outcomes) so you can make informed decisions about your money. And with that risk can also come reward.
So next time you’re looking for certainty (and can’t find it anywhere), acknowledge the feeling of wanting certainty.
It’s precisely because things are uncertain that we look to find someone we can trust. – You don’t choose a financial adviser because they can accurately predict future outcomes. You choose them because they can help you make more informed decisions about your money – so align your finances to support what matters most to you.
If you’d like to speak with a trusted financial adviser, we’re here to help. To book an appointment, call Align Financial on (02) 9913 9995.
