Click Here to read the full article “People with planners happier about their finances” written by Laura du Preez for IOL on the 21st of August this year.
This article refers to how people who use a financial advisor are more satisfied with their overall financial position.
The survey was conducted among more than 400 people aged between 35 and 74 years with a household income of more than R30 000 a month.
The outcome of this survey shows us how a financial advisor can assist clients with their finances through the updating of wills, investing excess cash and planning for retirement.
The survey found that those with financial advisors had more diversified investments, were making better provision for their retirement and had more life cover.
In addition the survey found that those individuals who use a financial advisor are more likely to:
- Have updated their Will in the past year
- Have an emergency fund
- Have investments across the different types of financial products, these include unit trusts, endowment policies, fixed deposits, and so on
- Feel financially prepared and secure
- Pay their financial planner a fee rather than commission
- Start their retirement planning earlier
It was noted that the large percentage of people who felt they could do their own financial planning tended to over estimate their own abilities.