Four myths about financial advice

Super and investments 101 | Date Posted: 6 February 2024

There are many factors that play a role in a healthy and fulfilled life. These factors generally fall into three overarching categories: physical health, mental health and financial health – and they’re often connected. Good financial health can provide many benefits, including:
  • Having control over day to day finances.
  • The capacity to absorb a financial shock.
  • Being on track to meet financial goals.
  • Having financial freedom to make choices to enjoy life.
Not only that, the Financial Planning Association of Australia’s inaugural Value of Advice index revealed that Australians with an active relationship with a financial adviser experience benefits beyond financial advantages. According to the index, no matter someone’s wealth or age, the study found advice promotes and enables better quality of life – advised people generally suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth.

Yet many Australians don’t engage a professional financial adviser – they think they don’t need one or can achieve their goals by simply putting away money in the bank. Here are the top four myths about financial advice:

1. I don't need a financial plan because I’m good at saving

Preparing for retirement involves more than simply saving money. Professional advisers can help with investment strategies, taxation and ever-changing regulations, and know what benefits or tax cuts you may be eligible for. Even if you’re well under way to achieve your goals, financial advice can be invaluable in:
  • keeping you informed about the latest wealth strategies and products, as well as changes in legislation;
  • managing turning points in your life, such as redundancy, inheritance, retirement or having children; and
  • helping you manage risk and take a strategic approach to investing.

2. Financial advice is expensive

The cost of financial advice can be a barrier for people. But the Value of Advice index found that advised Australians overwhelmingly believe that advice has made them tangibly better off financially and that its value outweighs the costs.
Mine Super Financial Advice fees
Mine Super members are entitled to a complimentary appointment with Mine Super Financial Advice, but there are fees associated with providing personal financial advice. Simple advice is available over the phone or by video conference. Advice on how your super account is invested is at no extra cost to you, with other simple advice starting from just $110. More complex advice is available by appointment with the cost based on the advice you need, starting from $1,850 up to a maximum of $3,100. 
Did you know? If you have a super account and the advice is related to your account, Mine Super Financial Advice fees can be deducted from your Mine Super account.

3. Financial advice is generic

Licensed financial advisers are the only ones who can provide personal financial advice. The benefit of having a relationship with an adviser is that they can help you make confident and informed financial decisions, based on your personal situation. As everyone’s situation is unique, there’s no one size fits all approach to financial advice. A good adviser will ask questions about your personal circumstances and discuss your needs and objectives, including what income you need both now and when you stop working.

4. I’m too young

Even if retirement is still many years away, and adviser can help you on your journey to a comfortable retirement. In fact, the sooner you start planning the more likely you’ll reach your goals and have peace of mind.

Turn to Mine

Could you benefit from advice? Advisers can support you with quality advice and set in motion a financial strategy that will help you achieve the retirement you deserve. The team at Mine Super Financial Advice are here to support you to make confident and informed financial decisions, tailored to your needs and life stage.