Who can benefit from financial planning in Australia? We would argue almost everyone! But don’t just take our word for it – even the latest government research indicates that seeking financial advice is a good idea.
The Australian Securities and Investments Commission (ASIC) has published four waves of responses from its financial attitudes and behaviour tracker, and they make for interesting reading.
We’ve selected some of the key findings from the report (and from other research) to highlight why financial planning for the future is so important.
Get ready. We’re going to hit you with a handful of stats for the price of one. Yes, three in 10 people find dealing with money stressful and overwhelming, but this wasn’t the only issue people have with their finances:
Many people could clearly benefit from more financial planning in Australia, but what are the biggest areas of concern?
‘How can I boost my wealth in Australia?’ is a common question we hear. A sophisticated investment strategy is one way to grow your nest egg, but ASIC discovered that many people aren’t aware of the basics.
Forty per cent of Australians didn’t know the risk-return trade-off principle, which means you have to take on more risk if you want to achieve higher returns on your investments and vice versa.
One-third had never heard of diversification – the practice of investing across different types of assets to offset risk. Perhaps that’s why 45 per cent of people reported losing money on investments between September 2015 and February 2016.
The proportion of Australians seeking financial advice climbed from 16 per between March and August 2015 to 20 per cent between September 2015 and February 2016. We expect this trend to continue in the future.
IBISWorld predicts demand for financial planning and investment advice will create 1.7 per cent annualised growth in the industry until 2022.
With a growing number of people recognising that financial advice is a good idea in Australia, can you afford to be behind the curve on your money management future?
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