|A newly published piece of research claims that people who receive advice about their finances have higher levels of health and well being.|
Confident though I am in the value of good advice, this seemed a bit like a magic bullet to me. On closer inspection it seems that it is not just simple cause and effect.
The missing link is that the process of getting assistance from a financial planner increases the recipient’s financial literacy levels. A good adviser teaches their
|clients about the financial system and products as they go. This empowers the client to make their own financial decisions with confidence. It is the feelings of greater understanding and sense of control over the situation that results in reduced stress, which in turn brings the health benefits.|
If it is so good for you then, why isn’t everybody doing it?
I suspect that for some people, getting financial advice is a bit like going to the dentist or quitting smoking. You know that it is a good idea, but it looks a bit painful or difficult. This is especially the case for those who are not confident with their level of understanding or who are worried that they may be told that things are worse than they imagine.
Sometimes though, you have to just bite the bullet, grit your teeth and tough it out. And why wouldn’t you? There are stresses enough, why worry about your finances when you don’t have to?
(If, like me, you want to read the whole research paper it is here: https://www.afa.asn.au/sites/default/files/uploaded-content/field_f_content_file/14739_afa_-_white_paper_may_2016_-_a_money_wellbeing_and_role_of_financial_advice_final_final.pdf )
© Summation Strategies 2016.
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