It goes without saying, your money is your lifeline to freedom and independence. Chances are, you work hard for every dime in your pocket and understand the importance of making your money work for you.

However, in the current landscape – with rising cost of living, a volatile market at the tail end of a Pandemic, a global banking crisis (Silicon Valley Bank, and now Credit Suisse), and a ‘rolling recession’ – it’s no wonder you’re having sleepless nights.

This is where a good Financial Advisor comes in. Offering peace of mind and valuable insights personalised to your goals, with you every step of the way. But how exactly do they add value? And how do you find a trustworthy Financial Advisor?

In this blog we will dispel some myths and shed light on this subject of “How do Financial Advisors Add Value”.

Why is it important to consult a financial advisor?

A good financial advisor offers valuable guidance and support in managing your finances and achieving your financial goals. Here are some reasons why:

1. Expertise: A financial advisor has expertise in financial planning, investment management, and other areas of personal finance that the average person most likely does not have. They can therefore provide valuable insights and advice on financial matters, helping you make more informed decisions. In fact, investors who work with a financial advisor can expect to earn around 3% more per year on their investments compared to those who don’t use an advisor (according to a study by Vanguard). 

2. Personalised guidance: Financial advisors can work with you to create a personalised financial plan based on your specific goals, risk tolerance, and financial situation. Thus, helping you develop a strategy to achieve your goals and provide ongoing support and guidance as your circumstances change. The stats only prove it: investors who work with a financial advisor for 15 years or more accumulate 2.73 times more wealth than those who don’t use an advisor! (according to a study by Morningstar)

3. Risk management: Financial advisors can help you manage risks associated with investments, insurance, and other financial decisions. Not only will they help you to better understand the risks involved, but they’ll arm you in mitigating them.

4. Objectivity: It is sometimes difficult to separate emotions from money. A financial advisor can provide an objective perspective on your financial situation and goals, ensuring decisions are made based on facts and data, rather than knee-jerk reaction, panic, or biases you may have. In fact, 85% of those who work with an advisor reported taking steps to improve their financial behavior, such as setting a budget, saving more, or paying down debt – a survey by Northwestern Mutual found. 

5. Saves you time, and stress: Managing your finances can be time-consuming and, at times, overwhelming. A financial advisor is a real time-saver in handling the details of your financial plan and investment management, freeing you up to focus on other things or spend your free time in a more relaxing way! A study by the Financial Planning Association confirms this – with 92% of people who work with a financial planner reporting feeling more in control of their finances, and 89% feeling less stressed about money.

Sure, your post-pandemic finances and goals might look quite different to a few years ago; but the universal desire for financial independence is something we all have in common. Whether it’s helping you avoid mis-timing the market from an investment perspective, or joining the small percentage of South Africans who can actually retire comfortable, there is little doubt that a trusted Financial Advisor can add a lot of value to your life. 

How to Choose the Right Financial Advisor

Now we know the value of working with a Financial Advisor, what is the best way to go about choosing a trustworthy professional ‘worth their salt’?

First off, make sure they are a Certified Financial Planner (CFP). The term ‘financial advisor’ is fairly broad and can refer to a range of professionals who offer financial advice and guidance to clients. On the other hand, a Certified Financial Planner (CFP) is a specific type of financial advisor who has met certain education, experience, and ethical requirements set by the Certified Financial Planner Board of Standards (CFP Board).

Other important questions to ask when choosing a Financial Advisor are;

How long has their firm’s leadership been in place? How long has the staff been in place? And is the age-range of their advisors broad? How technology savvy are they – as well as cyber-safe? 

Why you should choose TVC Wealth and Health Managers as your Financial Advisor

Not only are the Financial Advisors at TVC Wealth and Health Managers professionally qualified Certified Financial Planners (CFP), but this trusted family company has been successfully running since 1997 – headed up by Director and original company Founder Ronnie Els.

Their Financial Planner team ranges from 29 and 58 years old, combining traditional industry knowledge with innovative ‘new’ thinking, and the majority of the senior staff has been with the company for more than 20 years.

TVC Wealth and Health Managers regularly replace hardware and make use of cloud-based software which is updated on an ongoing basis; using password managers and advanced cyber security software to protect client data.

Remember, financial freedom is within reach for everyone. Take advantage of TVC Wealth and Health Managers’ knowledge and skills on financial matters – contact them today for advice on everything from investment and retirement planning, to insurances ranging from health/ medical, possessions, car, and household.