The AFA (Association of Financial Advisers) recent survey of 100,000 Australians confirmed significant benefits of a quality advice relationship.
An effective relationship is based on understanding and trust.
Trust is the single most important element in any good relationship especially when it comes to financial advice.
Survey Results – Top 10 client benefits of quality advice and trusted adviser relationship
From the clients perspective
- Helping me make fully informed decisions
- Avoiding costly mistakes
- Helping me clarify and align my core values and tangible goals
- Developing my strategy to ensure I can achieve my goals
- Disciplined and timely implementation of my strategy and action plan
- Helping me understand complex issues and make smarter decisions about money and business
- The convenience of consolidating my financial needs in one place
- Practical administration of my financial affairs
- Acting as my financial coach – Chief Financial Officer
- Holding me accountable to do what it takes to achieve my goals
The AFA Survey confirmed that people with a close and trusted relationship with their Financial Adviser are
- Happier with their current financial position and investment portfolio
- Are generally wealthier than people that do not get advice
- More comfortable and engaged with their finances
- Have greater certainty and control over their financial position
- Much more confident with their future financial wellbeing
Annual value of advice statement
With the introduction of FOFA (Future of Financial Advice) legislation, clients are encouraged to ask their advisers to provide an annual statement of the advice and service provided and the fees charged for that advice.
Clearly, the value of the advice should be at least equal or exceed the cost for the relationship to be viable.