Are you someone who’s more likely to listen to your mates for so-called ‘free’ investing tips than seek out professional advice from an independent expert? If so, listen up.
Of course friends have their place in life – just not when it comes to important decisions about money. Not every financial decision requires formal advice, but some decisions are just too important to be making based on hearsay or guesswork alone. (That’s not usually something your friends will tell you when they’re bragging about their latest money-making schemes or telling you where you should be putting your money.)
I find that a useful question to ask is: ‘What’s the cost of getting this wrong?’ If the answer is small, you may be able to research and decide yourself. If the answer involves tax consequences, investing large amounts, long-term retirement income, Centrelink, estate planning, insurance or major debt, professional guidance may be well worth your while. Advice isn’t just about where to invest your money; it’s often about avoiding mistakes, understanding trade-offs and gaining confidence. – And like most things in life, money skills take practice.
So whether you’re thinking about higher education, retirement, receiving an inheritance, separating, selling a business, starting a family, caring for ageing parents, looking to invest, or just feeling unsure about super, tax, or insurance – independent expert advice can help you make decisions that will serve you and your future self.
To get more value from your first advice meeting, think about: what you own, what you owe, and what you want life to look like. You may also want to bring along details of super, debts, income, insurance and any major expenses. But most importantly, bring your questions. The clearer you are about what matters to you, the easier it is for an adviser to explain your options in a way that’s relevant and makes sense to you.
…So when it comes to money advice, mind the gap. Value friends for their friendship, but manage your money with a plan, and tap into professional advice when you need it the most.
For financial advice to make the most of your money decisions, book an appointment at Align Financial. Call (02) 9913 9995.