In most cases when people engage with a financial planner, their expectation is quite clear – they are seeking guidance on investment matters, ensuring they have adequate planning measures in place, and looking for Education around their financial situation so that they can make good decisions to help them achieve their goals and objectives.
But there are benefits of engaging with a financial planner that go far beyond just that.
Multiple studies in relation to the benefits of financial advice have found that good advisers deliver positive mental health benefits to their clients. Research from IOOF found that respondents who received ongoing financial advice experienced 13% greater levels of overall happiness, a 23% increase in peace of mind, and were 19% less likely to have arguments with loved ones.
Financial advice isn’t just about accumulating wealth. The process of exploring and defining your objectives, creating a plan to meet these objectives and gaining clarity and comfort on your financial situation will generally lead to a much higher sense of well-being and this is proven to have a positive effect on personal relationships.
A greater sense of well-being
When there is clarity on what it is you really want out of life, there is also a sense of control. The byproducts of this can be a reduction in anxiety and depression, an increased resilience in your personal and work life and overall enhanced satisfaction. It’s no secret that having a sound financial base is important, and it makes sense that this will provide more Peace of Mind in our day-to-day lives.
A positive effect on personal relationships
Good relationships are basic fundamental of human happiness. All good relationships, whether personal or at work, are built upon trust. And this is no different for a client’s relationship with their financial advisor.
When there is trust, there is openness. For financial advisors, this openness is incredibly important and leads to clients discussing very personal issues within their lives that concern them. Good advisors will listen. They will address a client’s concerns and anxieties with common sense and practical strategies to help. This can be an amazingly therapeutical for clients who are struggling in their financial or personal lives.
Another area often overlooked can be the self-satisfaction and boost in self-confidence that comes along with establishing a strategic plan based on goals and objectives. Continual progression towards one’s goals and objectives can provide an incredibly powerful boost to their sense or worth and wellbeing.
In the immortal words of Bob Dylan, ‘the times, they are a-changin’.
Financial planning is becoming less and less about the dollars and cents and more and more about personal well-being. Embracing this change will be the key to ensuring that good financial planners provide not just great strategic financial advice, but also strategies and education that will be personally and emotionally life changing for decades to come.
(Note: The information provided in this article is for informational purposes only and should not be construed as legal or financial advice. It is always recommended to consult with qualified professionals regarding your specific personal needs.)