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  • Rachael Ooi

Do I really need a financial planner?

Usually the first thing that people think is why do I need a planner, what can they provide that I can’t do myself? I mean I read the Your Wealth Consultants budgeting post and I manage my money coming in and out of my bank account, pay my mortgage, my bills and still have enough to go on a nice family holiday each year. You might think, ‘yeah I’ve got this covered,’ ....but do you really?


In your life what are things that you strive for? I bet financial success comes somewhere in the top 5, whether that be through paying off your mortgage, having money in the bank, no debt, a comfortable lifestyle or simply having wealth (whatever that means to you). The crazy thing is that most people fail miserably when it comes to money. Why is that?


Do you ever get in the car, start the engine with no idea where you are going or how you are going to get there? I doubt you would as that would be pointless. Having a financial planner is like having a roadmap for your finances. There may many routes to get to your destination, in fact I can guarantee there are multiple different roads that you can take but without knowing where you are going, there is little chance you will get there.


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How can you set out on a financial journey, or any journey for that matter without an understanding of where you are going? A financial advisor can help you understand what your goals and objectives are and provide a roadmap on how to get there.


How much money will be enough for you to achieve financial freedom, well that is different for everyone and often requires guidance to calculate. Working out how much you need to allocate to various aspects of your life is not as simple as it may seem. How do you calculate how much you may need for retirement? How much would you need if you were to become totally and permanently disabled? How much would it cost if you were unable to work for the rest of your life? Have you ever thought about it?


Did you know that 80% of 65 year old’s rely on a full government age pension and have less than $100,000 in assets outside of the family home. Only 10% of people at age 65 have more than $500,000 or more, which is the minimum amount most people need to live a decent retirement. That means currently 90% of people are living below a decent retirement.

The biggest question you need to ask yourself when considering whether you need a financial advisor is how will you feel if you get to age 65 and had failed?

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