In my experience every client benefits from obtaining professional advice. We have been proactively engaged with our clients not only during this covid period but as part of our normal service, we are the coach that helps you achieve your goals!

Some highlights from the Professional Planner article explaining the Investment Trends 2020 Financial Advice Report (July 2020) a survey of 4,501 Australian adults.

 

People want Advice, in my experience all clients benefit from taking advice.

  • Advice demand doubles in 5 years
  • 6 million non-advised Australians now saying they intend to seek help from a financial planner in the next two years, up from 1.3 million in 2015.
  • half a million more people indicating they intended to seek advice since the 2019 survey.

Why, the pandemic has sparked a surge in the need for advice.

  • Against a backdrop of economic uncertainty and volatile markets, non-advised Australians realise they need professional financial advice.
  • 44% saying the COVID-19 situation had increased their likelihood of seeking advice.

The cost of seeking advice, the fee dilemma.

  • potential clients are more likely to pay for limited or scaled advice rather than full comprehensive services.
  • potential clients “overwhelmingly” prefer to receive comprehensive advice over limited advice (76 per cent over 35 per cent), the preference for limited advice “markedly” increases when cost is factored in.

After all the recent changes post the Royal Commission and previous inquiries the cost to provide advice has substantially increased. Notably the Advisers License, compliance, insurance, regulatory oversight and body membership requirements have increased, some have doubled.

 

The practical solution

  • We provide clients with the advice and service they decide upon, for those who choose to reduce the initial cost and limit the engagement there are opportunities to transition them to full advice in stages, obviously the cost is higher but spread over a longer timeframe.
  • The article states the vast majority of potential clients (61 per cent) are open to upgrading to comprehensive advice over time.

Contact VJC, we are here to help and really good at it!

Full article can be read https://www.professionalplanner.com.au/2020/09/advice-demand-doubles-in-5-years/

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.