You may be wondering what a financial adviser does, and why you need one.

Simply speaking, a financial adviser is a professional who helps you build wealth by making smart decisions about how you save, spend, and invest your money. Financial advice is important for everyone – not just the super wealthy.

The best financial advisers use their experience and knowledge to develop personalised plans that achieve the financial objectives of their clients. These plans can cover investments, budgeting, saving, insurance, superannuation, estate planning, and tax strategies. Advisers will also check in regularly with their clients to track and assess progress.

A financial adviser may also execute market trades on behalf of their clients.

We all have unique dreams and objectives. A skilled professional can help make these plans a reality. A good financial adviser can become your financial planning partner for life.

The first step in the process is understanding your financial health. You can’t plan for tomorrow without knowing where you stand today. To begin with, your financial adviser will want to meet with you to ask questions and perhaps complete a questionnaire. Your answers help your adviser understand your circumstances and tailor a plan to meet your individual needs.

Your financial advisor will want to know about your sources of income, expenses, assets, and liabilities, as well as your projected retirement needs. You’ll also cover more subjective topics, including your risk profile and investment preferences.

Building Your Financial Plan

Your financial adviser compiles and analyses all of this information and develops a detailed plan that will form the roadmap for your financial future. The plan will summarise your financial situation, net worth, assets, liabilities, goals, and risk tolerance.

The plan will include potential best-case and worst-case retirement outcomes, and the steps you should take to optimise your retirement wealth. If you’re married, the plan will also consider survivorship issues for the remaining partner if one person dies.

Your adviser will establish an asset allocation suitable for your risk profile and objectives. A risk-averse individual might hold a greater share of cash and government bonds, while a risk-tolerant individual may take on more stocks, property, or cryptocurrency assets. Your asset allocation may also be adjusted as you draw closer to retirement age.

It’s important for you to understand what your adviser has recommended, and why. Don’t follow recommendations blindly. Be aware of potential conflicts of interest. It’s your money, and you should be comfortable with how it’s invested. Ask your financial adviser why they suggest certain investments, and whether they receive commission for those recommendations.

Once your investment plan has been activated, your financial adviser should be in contact regularly to review your goals, track your progress, and answer any questions that arise. In addition to these regular meetings, you should also consult with your adviser if you anticipate a significant change in your circumstances, such as marriage, divorce, buying or selling a home, changing jobs, or growing your family.

Next Steps

Financial advice is not just for high-net-worth individuals. Anyone can work with a financial adviser, at any age, and at any stage of life.

Seeking financial advice early will help you to build wealth, plan for the future, and ensure a comfortable and financially independent retirement.

To learn more about your options and to help you achieve your financial goals, it’s a good idea to reach out to an experienced financial adviser as soon as possible.

At Omura, we offer expert financial advice services in Sydney and throughout Australia.

Call us today on 0433 960 702 or email terry@omura.com.au for a free, zero-obligation consultation.