Financial Advice – From Brokers to Backyards and Why More Aussies Choose Mates Over Professionals for Help
If you’re seeking financial advice, who would you turn to: your family, mates or a professional financial advisor? According to new research, a growing number of Australians would rather ask family and friends than speak to a financial consultant.
But is this the best way to deal with your finances? What are the limitations of relying on family and friends for financial advice? And can you really trust a professional to give you trustworthy advice?
From Brokers to Backyards: Fewer Aussies Seeking Professional Financial Advice
A recent report from Great Southern Bank showed that less than 25% of Australians have a financial plan from a qualified expert. It also showed that during the previous year:
- 43% of Gen Z and 38% of Millennials relied on financial advice from family
- 31% of Gen Z and 29% of Millennials asked their friends for help with financial matters
Of these groups, only 1 in 10 had visited a financial consultant to seek advice. In a cost of living crisis, why are so many Australians relying on informal advice? For many, it’s about trust. They’re just not sure whether they can trust the advice of a financial professional, but they do trust their family and friends. Unfortunately, the financial guidance they’re receiving, while well-intentioned, could still be limiting.
The Limitations of Informal Financial Planning
There are some potential downsides to relying on inexpert advice. Your parents or friends may be able to recommend strategies that worked for them, but the reality is, their expertise is likely limited. When you follow advice from someone without the proper qualifications and industry experience, you risk receiving biased or outdated information that can lead to negative consequences.
It’s a bit like asking your friends for medical advice instead of seeing a doctor. With the very best of intentions, they can Google your symptoms, suggest a possible diagnosis and even recommend a treatment (perhaps something that worked for them) – but the reality is, they don’t really know.
Why You Can Trust a Mortgage Broker
In contrast, obtaining professional help from a financial consultant will give you the tools you need to make informed decisions. As Megan Keleher, Chief Customer Officer at Great Southern Bank said: “The more advice you seek out, the more equipped you’ll feel to make the big financial decisions in life – whether it is starting your savings journey, taking out a car loan or buying a home.”
So, who should you be asking for assistance with financial planning? And who can you trust to provide honest and expert advice? A great place to start is with an experienced finance broker. Why? Because brokers are governed by legislation known as ‘Best Interests Duty’. This means they are legally required to always work in your best interests, providing personalised advice tailored to your financial situation.
The Benefits of Seeking Professional Financial Advice
When you consult with an experienced broker, you can gain:
- Industry Expertise: Finance brokers are licensed professionals with specialised knowledge in a wide range of financial products.
- Access to Multiple Lenders: Brokers can compare various loan options from a wide range of lenders, ensuring you get the best deal.
- Personalised Service: A broker will tailor their advice to your specific financial situation and goals, offering solutions that best meet your needs.
- Streamlined Process: Brokers handle the paperwork and negotiations, simplifying the loan application process and saving you a lot of time and stress.
- Accurate Information: Brokers are trained to keep up with the very latest industry regulations and lending criteria. This means they can provide you with accurate and up-to-date information.
Get Expert Financial Advice You Can Trust
There’s nothing wrong with discussing your financial options with family and friends. But for your own financial well-being, why not combine their advice with some professional guidance so you can make informed financial decisions?
Schedule a free consultation with North Brisbane Home Loans expert mortgage brokers today to get started on the path to financial knowledge.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
