What Do People Seeking Financial Advice Want to Know?

What Do People Seeking Financial Advice Want to Know?

When individuals decide it’s time to seek financial advice, their questions typically revolve around major life changes and significant financial decisions. Here are some of the most common concerns and queries we encounter at Newcastle Advisors.

1. When Should I Seek a Financial Advisor?

There’s often confusion about when the right time is to seek professional financial advice. While many people delay reaching out until they face an urgent financial situation, the ideal time to connect with an advisor is long before a crisis. Some key times to consult with a financial advisor include:

  • Starting a new job or receiving a promotion. A sudden increase in income can lead to decisions about investments, taxes, and wealth management.

  • Approaching retirement. Planning for retirement is critical to ensuring you’ll have enough income in your later years.

  • Going through major life events. Divorce, death in the family, receiving an inheritance, or having a child are all moments that can cause significant shifts in your financial picture.

  • Dealing with investments. If you're looking to maximize your returns, diversify your portfolio, or get a second opinion on existing investments, expert guidance is crucial.

2. The Role of a Financial Advisor

Financial advisors offer comprehensive advice tailored to your unique situation. They help you:

  • Plan for the future. A solid financial plan includes your short-term needs and long-term goals. Advisors create strategies that align with your objectives.

  • Manage investments. From making informed decisions on where to invest, to protecting your assets and managing risk, an advisor can steer you through the complexities of wealth-building.

  • Maximize retirement savings. Whether it’s optimizing your superannuation or exploring pension options, financial planners help ensure your retirement funds are in order.

  • Handle complex situations. Estate planning, inheritance issues, and setting up trust funds for children are all areas where a financial advisor’s expertise can prove invaluable.

3. You Need Investment Advice

Many clients seek guidance when faced with investment decisions. Some common concerns include:

  • Evaluating stock options from an employer: “I’m moving on from my current employer and they’re giving me the option to execute my stock options. Should I do it?”

  • Investing a large sum of money: “How do I invest large sums safely and wisely? I want to maximize my returns and have my savings work for me.”

  • Reassessing current investments: “We want to reassess our current investments and find ways to make them work harder for us.”

Investing can be daunting. Many people hesitate or feel uncertain about the stock market or emerging trends like cryptocurrency. DIY investing apps can help beginners, but be cautious of 'fin-fluencers' and unqualified investment gurus. A professional financial advisor can help you diversify your portfolio, avoid mistakes from market volatility, and make smart, long-term decisions.

At Newcastle Advisors, we incorporate investment strategies into holistic financial plans, using techniques like dollar-cost averaging to maintain steady growth over time.

4. You Received an Inheritance or Payout

Receiving a lump sum, whether through inheritance, a TPD payout, or even winning the lottery, can be both a blessing and a burden. Clients often ask:

  • How should I invest a windfall? “I have been left a lot of money and have no clue what to do with it. It’s just sitting in a savings account, and I need advice.”

Having a financial advisor in this situation is critical to ensure you don’t squander the opportunity. We’ve helped clients optimize their payouts for long-term financial security. Take Ben, a Queensland business owner who sold his tech company for $300,000 and blew much of the money on a poorly planned business venture. With proper advice, Ben could have safeguarded his future and avoided financial pitfalls.

5. You Are Moving from Overseas or Interstate

Moving, whether from abroad or interstate, comes with financial complexities. Clients returning from overseas often seek help with:

  • Navigating Australia’s financial systems. “I just moved back and have money in all different places. I need help setting up my Australian finances.”

Financial advisors can help you transition smoothly by organizing your finances, setting new goals, and ensuring you take full advantage of opportunities in your new location.

6. You Have a High Income But Little Time

Many clients with high incomes come to us with this sentiment: “We’re earning more than we know what to do with, but we feel like we’re not maximizing our money.” High-income earners are often too busy to manage their wealth effectively.

An advisor can create a strategy that maximizes your financial potential, minimizes taxes, and ensures your money is working for you. High-income clients should also consider setting up estate plans and succession strategies to protect and grow their wealth for future generations.

7. You’re Planning to Start a Family

Starting a family can add financial stress. Clients often ask about:

  • How maternity leave and reduced income impact their finances. “I’m the primary earner, and I need to know how starting a family will affect us financially.”

A financial advisor can help you plan for expenses like childcare and education, ensuring your family’s financial security for the long term.

8. You’re Going Through a Divorce

Divorce is a deeply emotional and financially complex process. Many clients come to us after losing assets and seeking ways to rebuild their financial lives.

Financial advice during and after a divorce is critical. We work with clients to create a new financial strategy tailored to their post-divorce reality.

9. You Just Got a Promotion

Promotions often come with additional income and benefits like bonuses or shares. Clients commonly ask:

  • How to make the most of a promotion. “I just received a promotion and I’m earning more than ever, but I feel like I have less money than before.”

A financial advisor can help you restructure your budget, optimize your savings, and protect your income with strategies like income insurance and smart investments.

10. You Want to Change Your Superannuation Fund

Many Australians are concerned about their super fund returns, particularly as one in five funds returns below their benchmarks. Clients looking to switch super funds often ask:

  • How to choose the right super fund. “I’m looking to fix my SMSF and want advice on structuring my super, investments, and insurance better.”

Selecting the right superannuation fund can significantly impact your retirement. A financial advisor can ensure your super strategy aligns with your long-term financial goals.

What to Prepare Before Seeing a Financial Planner

Before meeting with a financial advisor, it’s essential to:

  • Evaluate your financial situation. Know your goals and financial challenges.

  • Gather relevant documents. Bring your income statements, investment portfolios, and superannuation details to the meeting.

To get the most from your first meeting with a financial advisor, it helps to be prepared. Gather key documents like your income statements, expense reports, and details of any assets or debts. Most importantly, be clear about your financial goals—whether it’s buying a home, planning for retirement, or investing in your future.

If you’re ready to take control of your finances and create a long-term strategy for success, now is the time to seek professional financial advice.

Matthew McCabe