SYS Group Financial Consultant Daniel Nagle puts his own spin on why he thinks your financial advisor is like Tiger Wood's caddie, Joe LaCava
I thought it was best to wait until February to tap into new year’s resolutions and peoples’ enthusiasm for change. (Some may argue I wasn’t organised enough over Christmas to be ready for starting this in January, but I will trust in your good judgement to come to your own conclusion!) I want to start off with highlighting the importance and value of having a Financial Advisor in your corner. Hopefully, you’ll grasp my Joey LaCava reference by the end of this!
As we all know, no two individuals share the same goals or ambitions. Each person is unique, with their own needs, targets and budgets. When it comes to managing money, building wealth, securing your future and ultimately drawing up a plan for fulfilling your investment objectives, professional financial advice must be tailored to meet your needs. Whether it’s your dream house, an annual holiday or achieving financial security, each person’s goals/wants are as important as anyone else’s.
As many cope with the change to their financial circumstances due to COVID, professional advice can improve your financial situation and your wellbeing.
Peace of Mind
Having access to financial advice is strongly linked to feeling more secure and less anxious about money. According to a survey carried out by Brokers Ireland, around 3 in 5 people who have received financial advice report that they feel financially more secure and stable, compared with under half of those who have not received any advice. Tiger Woods referred to his caddie and long term friend, Joe LaCava as a pillar in his 2019 Masters success.
Just 1 in 3 of those who have received financial advice report feeling anxious about their household finances, compared with over 40% of those who haven’t.
Keeping your head when everyone else is losing theirs
The COVID-19 pandemic has left many people feeling less stable and/or confident in their financial situation. Brokers Ireland reported that 35% of those who have not received financial advice feel anxious about their finances.
Financial advice helps you plan and navigate any future shocks or crisis. And while you can experience the benefits of advice after just one meeting, it is essential to receive ongoing advice over the long term as your situation and life goals change. As I have outlined in previous blogs, a financial advisor is like a caddie for a golfer. They don’t leave you after you warm up before the round of golf. They are with you every step of the way!
This means your advisor gets to know you and your background and can help you adjust to whatever life has in store (or bad golf shot in the golfer’s case!). Those people who have an ongoing relationship and receive regular financial advice are twice as likely to report feeling in control of their finances as people who do not.
Trust in the process and your advisor
One of the key benefits of financial advice is that it gives you access to expertise on topics that are complex. This provides you with more confidence and increased peace of mind. People who have received financial advice report feeling three times more confident about their understanding of financial matters and products than those who haven’t.
For example, areas that some people find confusing concern Retirement Planning and understanding their Life Insurance and critical illness options. Among those who have not received advice, around 1 in 4 people say they would not know where to start when it comes to the different options available to them. Among those who received advice, that number is fewer than 1 in 12.
Take the next steps
As usual, this was and never will be a standard, jargonised series of blogs, but if you have read this and it sparks your attention and you would like to find out more on the topic, I can offer a couple of options! Firstly, you can contact me directly at email@example.com or via my LinkedIn profile.
Alternatively, you can continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully, we can continue to help our clients and potential clients