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When should I seek financial advice?

Amanda Varidel



Most people who see a financial adviser will tell you they wished they’d seen them sooner and when you ask a financial adviser when they recommend people see them, “as early as possible”. 


But even if you don’t see a financial adviser at a big moment like starting your first job it’s good to set up some good financial habits. Better habits you set up with your finances the better you will be in the long term. 


With the benefit of compound interest, saving a little today will result in exponential growth because you’ll be earning interest on interest on interest for as long as you remain invested. 


And when it comes to super, what you contribute into super when you’re in your 20s works harder than what you contribute later. Just a little money from your early earnings when you potentially have fewer expenses and responsibilities will result in a very welcome sum as you near retirement. 


Major life changes  


As your life undergoes major change it’s a good idea to review your needs and see an adviser to help with the complexities. 


When you enter serious relationships and maybe become de facto or married, it’s important to work out your financial affinity. If you are combining finances, it’s sensible to be working towards shared goals and setting a financial plan that you can both check regularly.  


Your adviser can help with strategies to help you both, and you might need to work on your legal positions – do you have a will, a power of attorney, power of enduring guardianship? Have you set your superannuation beneficiary? Keep in mind that if you do marry, your previous will becomes invalid, so you should update all your legal documentation.  


Buying a house is a big decision. Before you buy, it’s good practice to see an adviser to work out how much you can really afford, how to best structure your loan, where to get your loan and how to manage your financial plan with your new mortgage. Look at your insurances and make provision in case an accident or illness thwarts your plans. It’s also a time to make sure you have a robust savings plan with emergency funds.  


Having children 


Bringing children into your life will change all your financial plans and decisions. This is a good time to see your adviser to revisit your goals, reset your financial plans, and check your cash flow, budgets, and insurance levels. If you or your partner die or become incapacitated, consider your plans to support your family. You might also like to set up a fund for private schooling, pay for university, or other child-related expense.  


Breaking up 


You should see your financial adviser as soon as you know your relationship is beyond saving. You will need time to plan a strategy to split assets and figure out what your goals and plan will be going forward. Establish what you can afford to rent or buy and potentially change your beneficiaries and powers of attorney.  


Retirement 


This is the reason most people seek financial advice. They might seek it from a financial adviser or from their super fund. People tend to get serious about their superannuation about 10 years out from retirement. This is usually the time where income is at a peak, and expenses have reduced so it’s a good time to build the super balance and work on a transition to retirement strategy. It’s also a good time to review insurance policies, investment strategies outside super, and set a general financial plan.  


Losing your job 


Redundancies are commonplace today and seeing a financial adviser can often help at this time to put things in perspective and adapt your plans accordingly. Most importantly they can help put your mind at ease by helping you set a new financial plan until this period of uncertainty ends. 


Best practice  


While these large life moments are triggers for financial advice, it’s valuable practice to have an annual or semiannual visit to your advisers to check you’re staying on track to achieve your financial goals. 

 

 

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Stu Varidel AR 324007 and Your Choice Financial Planning Pty Ltd ABN 80124246877 trading as Heart Financial Advisers CAR 323623 are authorised representatives of Sentry Financial Services Pty Ltd ABN 30 113 531 034 & AFSL 286786.

Warning The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Heart Financial Advisers and Heart Mortgage Services nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

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