I’ve been busy filming our latest show this month, and it’s full of real people and their relationship with money. I have to say, it’s been fascinating, and we talk to people from all walks of life to understand how they learned about money, what their financial goals are, and what they think will stop them from reaching them.
Interestingly, a reoccurring theme from people was around the need for financial advice at certain points of their lives. Those in their 40s and 50s have been particularly keen to both pay for and receive financial advice that would make a difference to them. They all, however, had real reservations about finding the right adviser.
A few people talked about bad experiences with bank planners – where they felt the advice was very “cookie cutter” and not tailored to their individual circumstances. Which really got me thinking: we all know banks had to change their model – and the recent flight from wealth/financial planning is evidence that banking and planning was not the right combination for clients.
So with the advisers left in the market, who are giving clients tailored advice that is paid for, surely the reputation and standing of advice will naturally increase over time, just by more people having good experiences and telling others.
There was no amount of hesitation for people saying they would pay for good quality advice. Where they were less sure was how to tell who was a good adviser, and what they should pay upfront.
It’s now more important than ever that advisers speak transparently about what good advice costs, and the value people will get from that in the long term. In particular, tax management and retirement planning kept coming up time and again in our interviews – it’s a specific and technical skill set and planners are well-placed to own that market over accountants with the rebuilding of trust.
So it would seem over the next 5-10 years, the natural impact of the evolution of the advice industry could well mean the reputation, standing and regard held for advisers in Australia will organically rise – and that the end of one era, whilst painful at the time, could be the beginning of another. One where a financial adviser is a respected profession that rewards advisers accordingly.
I remember the days when Mark Rantall and the FPA talked about the aspiration for advice to become one of the most trusted professions in the country. Perhaps this year sees that journey become a little more achievable and not as far away as many would have believed.
I look forward to showing you our latest work – it’s some of our best and once again shows just how important advisers are.
The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.
