Debunking 5 Common Myths About Financial Advisers
If you’re new to wealth management, you might have some misconceptions about what working with a financial adviser involves. Many people think of traditional financial planning as being all about investing, superannuation, and insurance.
At Thriving Wealth, we see things differently. We believe in a holistic approach that’s all about enhancing your overall well-being, and understanding that financial health is just one piece of the puzzle in leading a fulfilling life.
Let’s clear up some common myths about financial advisers.
1. Financial Advisers Are Only for the Wealthy
A common misconception is that financial advisers are only for the wealthy. In reality, financial advice is valuable for individuals at all stages of life and financial situations.
Our approach extends beyond just managing wealth; we’re committed to helping everyday Australians build and create wealth to achieve their goals. Some of the most impactful strategies we’ve developed have come from clients who don’t have significant wealth but are willing to learn.
Think about this, who needs to learn more about how to make millions: The person who has never made millions or the person who already has millions?
2. You Only Need a Financial Adviser if You're Planning for Retirement
While planning for retirement is a significant aspect of financial planning, it’s not the only reason to consult with a financial adviser. We view financial planning as a journey that evolves with you through different stages of life.
Our holistic approach is designed to support you throughout this journey, helping you balance building wealth, managing debt, and investing without sacrificing living a fulfilling life. We understand that life is dynamic and filled with various milestones; whether it's buying a home, starting a family, or navigating unexpected expenses.
Our goal is to help you create a comprehensive plan that adapts to your changing needs and goals, ensuring that you’re not only working towards a financially free retirement but also living life on your own terms along the way. By handling the financial aspects, we help you focus on what truly matters to you now and in the future.
3. Financial Advisers Aren’t Worth the Money; I Can Do It Myself
Some believe they can handle their finances without professional help and that financial advisers aren’t worth the expense. However, managing finances effectively involves more than just basic budgeting. Financial advisers bring expertise, experience, and a strategic approach to your financial life. We help you plan ahead, ensuring that the decisions you make today align with your future goals.
When it comes to our clients, we cover every aspect of their finances - from cash flow and debt management to investing, estate planning, behavioural coaching and beyond. It’s about ensuring no stone is left unturned, tailoring our strategies to your unique situation.
Our approach includes back-testing and stress-testing all our strategies to ensure they are robust and effective, giving you the highest probability of them coming to fruition. The value we provide often outweighs the cost, especially when it comes to long-term financial health and living a life you never thought possible.
4. You Lose Control Over Your Finances
Another myth is that working with a financial adviser means relinquishing control over your finances. In reality, a good financial adviser works closely with you, prioritising your preferences and goals.
Our approach is goal-based, meaning every strategy we implement is aligned with what makes you fulfilled. This helps you maintain greater control and motivation as you work towards creating the life we plan together. We give you full control over your finances while providing regular guidance and behavioural coaching.
Our goal is to support you in sticking to the plan and ensuring that your behaviour and emotional decisions don’t hinder your progress. By working together, we aim to empower you to take charge of your financial future and ensure you never lose control of your finances while achieving your desired outcomes.
5. Financial Planning is Just Investing, Superannuation, and Insurance Advice
Traditional financial planning is often seen as being solely about investing, superannuation, and insurance. While these elements are important, they represent only a part of the broader financial picture.
At Thriving Wealth, we go beyond this traditional approach by embracing a more holistic perspective. We believe that effective financial planning encompasses every aspect of your finances, including goal setting, risk management, tax planning, financial literacy, estate planning, and more. Our approach also incorporates money mindset and behavioural coaching, recognising that how you think about and manage money plays a crucial role in achieving your overall objectives.
By integrating all these elements into a cohesive plan tailored to your unique needs and aspirations, we are able to create a wealth-creation experience that is both financially transformative and life-changing.
Conclusion
Understanding the realities of working with a financial adviser can help you make informed decisions about seeking professional advice. It’s important to remember that every financial adviser is different, with their own approach and areas of focus. However, by debunking these myths, you can better understand the role of a financial adviser and how they can contribute to your overall well-being, ensuring you find the right fit for your unique needs and goals.
About the Author
John Cachia is a seasoned financial adviser and dedicated parent of three boys. With a passion for financial literacy and wealth management, John has been in the industry since the young age of 14. His early start in finance has provided him with a wealth of experience and insight, which he now uses to guide families towards achieving their financial goals. As Australia's leading wealth adviser for young families, John is committed to helping parents become positive financial role models for their children, ensuring a secure and prosperous future for the next generation.