Guardian Financial Planning Executive Manager, Steve Browning, has voiced concerns about there still being an ‘…alarming amount of people who are not seeking out advice and taking control of their finances.’
Mr Browning’s comments follow in the wake of new research from both Australia and the UK, which reveals that people are burying their heads further into the sand one year into the Global Financial Crisis.
Mr Browning related UK findings that showed 80% of the country’s population were not satisfied with their financial position but only 5% would seek professional help.
“Here in Australia it’s not much better, with the recent Suncorp WealthSmart survey finding more than half (51%) of respondents thought seeing a financial adviser was important, but only 12% had actually sought advice,” said Mr Browning.
…one of the key issues is that of perception of financial planning and financial advisers
According to Mr Browning, one of the key issues is that of perception of financial planning and financial advisers, particularly given recent well-publicised corporate failures.
Mr Browning highlighted two of the myths that feed the perception issue:
- That financial planning is only for the rich
- That people think they have to buy a financial product
A good financial planner will focus on strategy, not products
“It just isn’t the case,” said Mr Browning. “A good financial planner will focus on strategy, not products.”
Mr Browning added, “You don’t travel without a map, you don’t cook without a recipe and you don’t run a business without a plan, so why are we so reluctant to apply the same logic to our finances?”
“We look to experts in other areas of our lives, why shouldn’t we seek the help of a professional when it comes to our finances?”
