Financial planning advice – the key to surviving an economic downturn
26 June 2008
Despite most Australians fearing they aren’t financially stable enough to endure a recession, only three in 10 Australians currently use a financial planner, prompting CUA (Credit Union Australia) to encourage people to seek professional advice.
A recent study by the Financial Planning Association (FPA) of 1,100 people found that 69 percent of Australians feared losing their job if the economic situation worsened, and 91 percent were concerned about the rising costs of groceries and petrol.
The study also found that people using financial planners were 77 percent more likely to hold on and ride out share market volatility.
CUA (Credit Union Australia) Managing Director Mr Graham Olrich said the call for Australians to use professional financial planning services could not come at a better time with the new financial year looming and the current economic conditions likely to continue for some time.
“Quality financial planning advice is great in helping people reach their goals and to reduce the occurrence of debt no matter what is happening in the economy,” he said.
“Unfortunately a common misconception is that financial planners are only for rich people, and are a luxury rather than a necessity.
“Many people are sceptical of the value of professional financial planning advice but what many don’t know is that a financial planner is affordable, not to mention wise, for helping people realise and secure their long-term financial goals.
“Financial planners can give direction and meaning to your financial decisions, help protect and build your income or investments, or help you to plan important changes in your personal circumstances. This is particularly important with the increasing cost of fuel, groceries and interest rates.”
Mr Olrich said financial planners allowed their clients to see ‘the big picture’ when making financial decisions, and provided them with a sense of security and peace of mind that they were on their way to meeting their financial goals.
“Your goal may be to plan for retirement, start a family, buy property, pay the mortgage off sooner, save for your children’s education, or invest in shares – whatever your goal a financial planner can assess your personal circumstances, risk tolerance and financial needs and put you on the right path to financial freedom.
“They can help you to work out what you want to achieve, how to make it a reality and understand any problems you may encounter along the way, no matter the economic season.
“On top of that financial planners offer advice on financial products, tax laws and the benefit system.”
Mr Olrich said consulting a licensed professional was essential.
“To be sure your financial planner is qualified you should deal only with representatives of a dealer group registered with the Australian Securities and Investments Commission (ASIC).
“It’s also important to sight qualifications and a copy of their authority to advise, and all potential clients should be given a Financial Services Guide at the first meeting.
“All CUA financial planners are committed to the FPA code of ethics and rules of professional conduct, and are passionate about helping their clients achieve their financial dreams.”
To make an appointment for a free initial consultation, please contact CUA Financial Planning.
