Or to ask the question in a different way: how do you quantify and measure the value of receiving good financial advice?
Simply put, the value of a Financial Planner adds to your financial plan and ultimately your investment return, and lies in the behavioral coaching we give our clients.
Here is a graphic illustration to set the scene:
As Illustrated in the block on the left, Investor A and B could theoretically both achieve the required investment return. However, Investors seldom do because they make decisions during the course of the investment term that negatively affect their ultimate investment outcome.
These potentially negative decisions include, withdrawals when markets are down, switching to incorrect investment funds when market conditions and the investment goal require a different investment strategy, investing in products and funds that are not tax efficient given their circumstances, and the list goes on.
This is where we as Financial Planners fit in. Behavioural coaching could mean the difference between achieving for instance your desired retirement goal, or falling short and not being able to draw enough income to fund your retirement expenses.
As experts in our field we have the knowledge and experience to guide you to make the right decisions at the right time for the right reasons. It is human nature to make impulsive and emotional decisions when it comes to money and investments, especially in times when there has been a drop in your investment value and perceptions are that more bad news is on the horison.
Without careful consideration of the impact of your decisions you could potentially cause a negative outcome that never would have transpired had you received the right advice and coaching to adjust that instinctive behaviour to act on impulse and out of an emotional point of view.
I welcome you to engage with me or any one of the planners at MyPlan. We follow the Lifestyle Financial Planning philosophy and would like to share and discuss some behavioural coaching principles that are essential in making your financial plan future proof in today’s challenging and ever-changing world.