The stethoscope for
our financial heartbeat

We hardly have a problem with paying a dentist or a doctor – we may moan about what it costs, but we pay for their professional insight. When it comes to the knowledge we need about our financial health, we’re often more reluctant to take out our purses. What will I get for what I pay? We worry about this and may stay ignorant about what our money heart and lungs are up to. We’re scared that every financial planner out there is a quack, ready to steal our money. But on World Financial Planning Day, 6 October, let’s consider this for a moment.

In a research report requested by the Financial Planning Standards Boardopen_in_new in 2023 are some valuable insights. Value of Financial Planning recruited more than a thousand respondents who earn more than R1 million per year or have investments of more than R600 000, both those who seek financial advice and those who don’t.

According to the findings, people who work with a professional financial adviser report “having a better quality of life, enjoying more financial confidence and resilience, and feeling more satisfied with their financial situation”. These clients say the benefits of financial planning services outweigh the costs, and that they benefit regardless of wealth or age.

This is the percentage of people who raved about different aspects:

• 80% agree planning helps fulfil life dreams.
• 83% feel they cope better when facing health issues.
• 65% say it had a positive influence on their family life.

The report also makes the case for certified financial planners (CFP) in case people are doubting the advice they are receiving. In fact, it says that 94% of people who work with a CFP trust their financial adviser to act in their best interest.

The report claims to “bust” two more myths. The first is that financial planning is only for the rich. It says 8 in 10 clients earning R1,25 million or less per year feel financially confident. For a lot of people, this may seem a high threshold, but this has been my experience from a very young age, when I hadn’t been earning a salary anywhere close to one and six zeroes. They save you money because they help you avoid expensive mistakes. They’re also more informed about what is available out there, and what will work for me (and not my loaded cousin).

Generation Y seems to agree with me – over nine in ten of them who work with a CFP say financial planning has left them financially better off.

People without financial advisers want to worry less about their money, about having enough to live on, and the ability to live their desired lifestyle.

I appreciate my financial adviser for the fact that he prioritises which financial needs I need to worry about first, and showcases how my long-term discipline is paying off. He has knowledge and experience and calms me down when I get emotional about market antics. He saves me research time, and keeps me on top of things like legislative changes.

Best is that he keeps that stethoscope to my money breast and regularly assesses what progress we’re making towards my debt, estate and retirement planning. He’ll throw a pacemaker at me if I want to do something wild like considering a two-pot withdrawal, or prescribe a drier climate if my lungs are considering an investment too risky for my nerves.

He helps me face my financial health, and regularly, so that I can keep my money affairs off the white sheets of a hospital bed.