Disclosure Statement: Durand Financial Services Pty Ltd and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. General Advice Warning: The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.
Financial planning is a journey that requires patience, discipline, and strategic thinking. While many investors are tempted by the allure of quick profits, the value of working with a Financial Adviser lies in their ability to help clients maintain a steady and disciplined approach to investing.
By reweighting portfolios regularly and providing expert guidance, Financial Advisers play a crucial role in helping investors stay on track to meet their long-term financial goals.
One key area where Financial Advisers add value is in portfolio management.
Over time, market conditions fluctuate, and certain asset classes may outperform or underperform others. A skilled Financial Adviser will periodically review a client’s portfolio and make adjustments to ensure it remains aligned with their long-term objectives. This process of reweighting portfolios ensures that the risk profile of the investments stays consistent, avoiding overexposure to a single asset class that might lead to increased volatility.
Rather than chasing short-term gains or trying to time the market, financial advisers encourage a steady, disciplined investment strategy. Historical data supports the benefits of such an approach. Investors who stay committed to a long-term plan and resist the urge to make rash decisions based on market fluctuations tend to experience more stable and reliable growth. By leveraging an adviser’s expertise in risk management and portfolio diversification, investors are better positioned to weather market volatility and stay focused on their goals.
A recent article in the Financial Standard highlighted the tangible benefits of seeking financial advice. According to the article, investors who work with financial advisers experience an average premium of 5.7% in returns. This premium comes from various factors, including the adviser’s ability to optimise investment strategies, manage risks effectively, and offer emotional support during market downturns. This extra value underscores the importance of having a professional to guide investment decisions, particularly when emotions or market trends could lead to costly mistakes.
In summary, working with a Financial Adviser offers both practical and financial advantages. By regularly rebalancing portfolios and providing a steady, data-driven approach, advisers help investors achieve long-term success and add significant value to their financial planning journey.
Original article appeared here first:
https://www.financialstandard.com.au/news/advisers-add-5-7-premium-179805636?utm_medium=email&utm_source=WildebeestNewsletter
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)