The value of comprehensive financial advice

There are two ways you can go when seeking financial advice; get comprehensive advice or limited advice.

Distinguishing between the two is straight-forward. Comprehensive advice is advice for all aspects of your financial position. Limited advice is where the scope of advice is restricted to predetermined areas of your financial position, such as superannuation, insurance, or investment.

Comprehensive advice can cover a very wide range of financial needs. For instance, it’s not out of the ordinary for a financial planner to be advising on basic banking needs right through to planning estates. Comprehensive advice relates to your financial position as a whole, so the end result is a financial plan delivering on your objectives via a highly-tailored and interrelated set of recommendations. In other words, your financial planner is able to use their full skill set and implement a compatible set of strategies which may not be possible if the scope of advice were restricted.

This is not to say that limited advice doesn’t have its place, however. One of the biggest barriers to obtaining financial advice is cost so if advice is limited to a few key areas, it may become accessible to more people which is a good thing.

Furthermore, some may have aspects of their financial situation that they want to manage themselves or that are under management by other advisers. By limiting the scope of advice with their financial planner, these individuals can receive advice in unaddressed areas only, thus ensuring there isn’t any overlap with other advisers.

While these are certainly valid reasons to consider limited advice over comprehensive advice, the key thing to remember is that limited advice should not be considered a substitute for comprehensive advice.

Financial planners are trained and qualified to provide you with a road map to secure your financial future. They are equipped to advise you on a very wide range of financial matters, all of which are inextricably linked. Because of this, the best advice solutions are those stemming from the collective consideration of your financial position as a whole.

If you limit the scope of advice you are not only limiting the quality of your financial plan, but you are limiting the value of your financial planner.

 


This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax advice prior to acting on this information.Opinions constitute our judgement at the time of issue and are subject to change. Financial Planning Expert Pty Ltd does not give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
© Copyright 2011-2014 Financial Planning Expert Pty Ltd

ABN: 71 545 756 841 Australian Financial Services License: 402042

Phone: (03) 9708 8126

Email: info@financialplanningexpert.com.au

 

 

This entry was posted in Financial Advice, News Blog. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Send Us Your Enquiry Today!

    Name *

    Email *

    My enquiry relates to:

    Additional Information

    Enter the CODE below:
    captcha

  • FPE on YouTube

  • About Financial Planning Expert

    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.