7 researched benefits of financial advice

People who received financial advice saved $2,457 more each year than those who had not received financial advice, according to a recent KPMG Econtech research report.

This suggests that people receiving financial advice

could be $49,140 better off over 20 years.

The report, conducted on behalf of the Investment and Financial Services Association, also estimated how the prospect of more Australians receiving financial advice could benefit the wider economy.

The 7 benefits of financial advice from the report are summarised below:

1. Provision of an individual wealth management strategy.

2. A reduction in risk through diversification.

3. A better match between an individual's risk profile and asset selection.

4. Financial discipline.

5. An average increase in personal savings on average of $2,457 per annum.

6. At a national level, the ability to reduce the dependence on foreign financing of domestic capital, could lower the risk premium for investment in Australia.

7. At a national level, increased national savings has the potential to reduce the current account deficit. Remaining finances mean higher investment and capital stock gains, in turn supporting gains in GDP. 

Sourced from Investment and Financial Services Association ‘Value Proposition of Financial Advisory Networks'.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.