85% don’t need financial advice… Radio Interview

Daniel Hewitt was recently interviewed by Glenn Hartas from LAFM radio about why seeking financial advice is something everybody should consider doing.

“Who needs financial advice anyway?” A very small portion of Australians seek financial advice, but a lot of them need it.

Here’s how the conversation went:

Glenn Hartas: One question the recent Royal Commission into the financial services industry raised was, who needs financial advice anyway?

If you believe one commentator, financial advice has been oversold. This guy is saying you simply don’t need it. Just put your savings against your home loan. Is it that simple? Joining me is Dan Hewitt, who is the director of Financial Framework. Welcome to The Drive Home. So, what’s your opinion? Has financial advice been oversold?

Dan Hewitt:Thanks for having me, Glenn. Look, financial advice has obviously been in the spotlight with the Royal Commission recently and I think it’s been a good thing. I think it’s put the spotlight on the industry to try and better the advice and better the way that it’s delivered and the way it’s charged. But yeah, in my experience as an advisor over here in Western Australia. A very small proportion of Australians seek advice and a lot of people need it.

Glenn Hartas: What are the risks of not receiving financial advice?

Daniel Hewitt: “Not being totally across your financial situation. When you’re looking at your finances, changes that you make in the long term have very big consequences down the track. There’s a lot of people that probably have a bit of an idea about what to do, but they might not have the time or the inclination to do it, so that’s where you might get an advisor to help you. There’s also a lot of people that don’t quite know what they should be doing.”

Glenn Hartas: So, when you’re thinking about your finances it’s not always about what’s happening now. Sometimes it’s about what could happen in the future.

Daniel Hewitt: “We’re sort of geared to be positive, which is good, but that’s where advisors come in and go, Well, what happens if you can’t work? How long can you survive financially? Is it set up so that you can get the money back out if you need it, if you are laid off work or you have an accident or injury and you need that money?”

Glenn Hartas: Within our lives should we consider financial advice?

Daniel Hewitt: “There’s really no downside because if you go, do some research, most advisors will have an initial meeting with you and you’ll get a general feel for it without having to have any obligations, and then you can work out if it’s good for you.

Whether you have an idea on how to deal with your finances or not, seeking advice from experts isn’t a bad idea. Financial advisers can give you a different perspective of your financial situation at the same time provide you options that best suits you.

Daniel is one of three directors at Financial Framework. He uses his broad financial skill set and experience to help clients, like owners of small to medium enterprises, structure their affairs to help them, and their businesses, move forward with confidence.