Why Your Mum and Dad’s Financial Adviser Might Not Be Right for You

Have you ever felt hesitant to seek financial advice, worried that your situation may not be "big enough" to warrant professional guidance?

You're not alone. 

The financial planning industry revolves around managing significant wealth, and those that have accumulated this wealth already.

It's like visiting a doctor who tells you to come back when you're healthy - shouldn't they help you get there?

Most advice practices require you have minimum amount of “investable” assets or a high-income level to enter the door. Investable assets usually mean shares, cash, super, or anything major outside of your properties.

What the outcome? 

It leaves many in their 30s and 40s wondering if they'll ever receive personalised advice.

Many advice firms have an average client age well above 60, as a result that's the demographic that the advisers focus on serving.

Why?

People aged over 60 already have money, access to super, and usually are more willing to pay for advice to help them stay wealthy.

Because most advisers know their clients are on average over age 60, they can spend their time researching and implementing retirement and tax strategies applicable to larger client base.

Let's face it, managing wealth and building wealth require completely different skillsets so they may not be the right match for you anyways.

So, what happens to everyone else?

Most of time the adviser will point you in the direction of some free resources to try and keep some goodwill with you until you become wealthy enough for their services. The best advisers will match you with another specialist advice firm better suited to your needs.

The mum and dad exception

There is however a major exception, when you are referred to the firm by a close family member.  

Advisers want the best for their clients, and this includes their kids and the wider family so they will do their best to help.

What’s the issue then?

The problem is that adviser spends all day working on issues facing those entering retirement or are already retired.

Let’s go back to our medical example. Say you are a 39-year-old female and you have recently had your second child.

Would you prefer to go to the doctor who specialises in post-natal care and women’s health issues, or the doctor at the local retirement home who only sees young women and babies every other month when their grandkids visit?

Who do you think is going to a service more tailored to your needs? Even if the doctor is younger themselves, who do they service every day?

Advisers can’t be everything to everyone, if they are then they are talking to no one consistently to understand the needs of their core clients.

If you are matched with an adviser that services a group of clients unlike you then you are likely getting the “Happy Meal” version of their services, a service cut down as best they can to suit your needs and they might put few shiny toys in there to keep you distracted.

Managing wealth and making wealth are different skillsets. The same concept applies to those financial advisers that advise people at various stages of life.

I’ve been in this industry for a decade and there cannot be more difference between someone in the first year of retirement vs someone who has young kids, a home loan, and can’t find the time to think about long term planning.

What should I do then?

Find an adviser that specialises in advising people like you, or where you want to get to in life.

As an example, I’ve helped hundreds of people achieve financial freedom - and I know the best time to get started is in your 30s and 40s.

I used to work with retirees but I didn’t enjoy of hearing the regret in their voices about decisions they made in their earlier years of life, wishing they worked with an adviser sooner.

So, I founded a business exclusively working with people in their 30’s and 40’s. Most of my clients have family’s already or are planning one soon. They are professionals or own their own professional services business. They own a home with a decent mortgage or are about the buy one.

Financial advice is a broad industry

Sometimes your mum and dad will have the same needs as you… but most of the time you are a different life stage and you need someone with the skills to help you build wealth, rather than manage wealth.

Want to know more?

1) You can click here to book a free 15-minute free clarity call with Sam Woodhouse to discuss how this may relate to you.

2) Join our Your Money Simplified email list to start taking control of your money today. And when you subscribe, I'll give you a PDF called My 3-Step Process for Building Your Road Map to Financial Freedom.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.