The True Value of Advice – Research Paper

The True Value of Advice

I recently came across an interesting white paper prepared by IOOF in December 2015, which looked at the emotional and intangible benefits that having a professional financial adviser adds to people’s daily lives. 521 participants contributed to the research and the results were staggering.


Why do people seek financial advice?

Through my experience and talking to my clients, I believe it is for a variety of reasons, but it boils down to a few key things. People that come to see me want complex and vast information simplified and filtered to their needs. They want advice on a few different areas that are important to them and put into a simple, easy to understand plan to achieve their goals. They don’t want to do all the reading and research them self while hoping they haven’t missed something important before they make a big financial decision.
The study found that 75% of people receiving advice defines a successful financial planning relationship as achieving core goals and lifestyle objectives. The next closest being a mere 14%, who responded with better than average investment performance.


What are the emotional and intrinsic benefits of advice?

For many people, having an on-going relationship with a financial planner is a bit like having a personal trainer or life coach. A financial planner keeps clients on-track to meeting their financial and non-financial goals. We keep each other accountable to achieving the goals that you set for yourself by having regular contact, on-going and adaptive advice and support. Almost every decision you make will have a financial impact, so having a financial adviser to lean on for support makes it easier when making big life decisions.


What are the stats?

The research uncovered significant emotional benefits experienced by clients who receive professional ongoing financial planning advice compared to those consumers who do not. These included having:

  • 13% greater levels of overall personal happiness
  • 21% more peace of mind with regards to their financial future
  • 20% increased feelings of security regarding their day to day finances

Ongoing financial planning clients are:

  • 19% less likely to have arguments with loved ones about money
  • 21% less likely to have their personal relationships impacted due to concerns about money
  • 13% greater levels of overall personal happiness, as compared to those who don’t receive professional ongoing advice
  • 21% overall increase in peace of mind, compared to those who don’t receive ongoing professional advice

Clients engaged in a financial planning relationship experience

  • 17% increased level in confidence that core goals and objectives will be achieved and a
  • 20% increased feeling of financial security

It was also discovered that consumers who don’t receive professional ongoing advice are 22% more likely to have their sleep disrupted due to concerns about money.

Please click here if you would like to see the full version of the study.

What is holding you back from having a financial adviser on your side to help you live a healthier, happier you?

As always, feel free to get in touch!



Leave a Reply