For many, financial concerns can be a significant source of anxiety. Such worries can even impact one’s mental well-being and sleep quality. The global economic landscape, marked by high inflation, rising interest rates, and soaring housing costs, further intensifies these concerns for numerous households.
However, there’s a silver lining: professional financial planning. Engaging with a financial planner can empower individuals to regain control over their finances, enhancing their confidence and helping them remain on course to achieve their financial aspirations.
Research suggests that individuals who collaborate with a financial planner often feel more financially secure and content. They not only enjoy a heightened sense of financial assurance and resilience but also express greater satisfaction with their overall financial state.
In today’s intricate and ever-evolving world, the need for financial responsibility has never been more pressing.
Why Some Hesitate
Despite the clear benefits, not everyone seeks the expertise of a financial planner. A primary reason is the challenge of finding a trustworthy financial expert. However, the good news is that identifying a reliable financial planner is not as daunting as it might seem.
The Impact of Professional Financial Planning
A study comparing those who manage their finances on their own, those who consult a financial planner, and those who engage with a certified financial planner reveals some insightful findings:
- Individuals who collaborate with a certified financial planner report the highest satisfaction levels. They enjoy an unparalleled quality of life, exude the most confidence, and express the utmost satisfaction with their financial status. They also attribute significant value to the advice they receive.
- 3 out of 5 clients who consult a certified financial planner are extremely satisfied with their wealth, compared to 2 out of 5 who don’t seek any advice.
- 7 out of 10 of these clients live with a profound sense of purpose.
- 9 out of 10 feel financially secure.
- 8 out of 10 believe their financial situation has tangibly improved.
Addressing Financial Needs
Unadvised individuals often have several unmet financial needs. Financial planners can significantly assist in these areas:
- Ensuring sufficient funds for daily living (2 in 5 individuals face this challenge).
- Alleviating financial anxieties (2 in 5).
- Facilitating the desired lifestyle (1 in 3).
Younger clients, like Gen Y, often seek financial planning for different reasons compared to the older generation, such as starting a family or purchasing property. They also have a higher inclination towards digital engagement.
Dispelling Common Misconceptions
MYTH #1: Financial planning is exclusive to the wealthy.
FACT: 8 in 10 clients earning a household income of €80,000 or less annually feel financially secure and confident, a sentiment stronger than their unadvised counterparts.
Many believe that financial planning is a luxury reserved for the affluent. However, financial planning is beneficial for individuals across all income brackets. It’s about maximising what you have, setting realistic goals, and creating a roadmap to achieve them. Even those with modest incomes can benefit from budgeting, saving, and investing advice tailored to their unique circumstances.
MYTH #2: Financial planning is only essential when approaching retirement.
FACT: 9 in 10 Gen Y individuals believe that financial planning has enhanced their financial position.
While retirement planning is a crucial aspect of financial planning, it’s not the only one. Financial planning encompasses various life stages, from buying a home, starting a family, paying for education, to even managing debts. Gen Y, in particular, faces unique challenges like student loan debts and a volatile job market, making early financial planning essential.
MYTH #3: The costs of financial planning outweigh its benefits.
FACT: 9 in 10 clients feel that the advantages of financial planning surpass its costs.
The perception that financial planning is costly can deter many from seeking professional advice. However, the value derived from a well-structured financial plan can far exceed its cost. By identifying investment opportunities, tax-saving strategies, and efficient budgeting, a financial planner can help clients save and grow their wealth in the long run.
MYTH #4: Financial planners lack objectivity.
FACT: An overwhelming 96% of clients trust their financial planner to prioritise their best interests.
The financial industry has sometimes been marred by stories of biased advice driven by commissions. However, financial planners today adhere to CFP standards and Bank of Ireland regulations, meaning they are legally obligated to act in their client’s best interests. It’s essential to choose a planner with a strong reputation and transparent fee structure to ensure unbiased advice.
Take Action Today
Don’t let myths and misconceptions hold you back. Secure your financial future and enhance your quality of life. Contact Riordan Financial today and embark on a journey towards financial clarity and confidence.