tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, June 15th, 8:37PM

News

rss
Latest Headlines

Beyond wealth – financial planning works

New Zealanders who work with a financial planning professional are better off, a new study shows.

Wednesday, October 11th 2023, 8:05AM 2 Comments

by Sally Lindsay

Launched for world financial planning day, the study of 1,001 advised and unadvised people shows close to 60% of people who use financial planners are highly satisfied with their wealth, whereas just 30% of those who don’t use financial planners feel the same way.

The study by the financial planning standards board, using an independent research company, examined the financial and non-financial impact of financial planning across quality of life, financial confidence, financial satisfaction and experienced value, while debunking myths surrounding financial planning.

It found about 90% of clients of certified financial planners (CFP) feel financially secure and a similar proportion – 80% – feel tangibly better off. Close to 90% of CFP clients said the value of financial planning outweighs the cost, while 99% said they trust their financial planner to act in their best interests.

Financial advice NZ chief executive Katrina Shanks says her organisation supported the global research as it knows financial planning makes a difference to New Zealanders’ lives and, “we wanted independent research to support this position.”

The research shows New Zealanders have less financial confidence than the global community unless advised by a CFP, in which case their confidence is higher than global results.

The Financial Planning Index in the report scored unadvised New Zealanders’ financial confidence at 57 vs 60 from global participants. In contrast, those who worked with a CFP outperformed the global CFP score: 76 v 71.

Financial planning standards board chief executive officer Dante De Gori says in the existing volatile climate, where unexpected events can send shockwaves through the global economy, the role of financial planning in general, and of CFP professionals in particular, has become even more critical in helping people make financial decisions and achieve long-term goals, while enjoying a better quality of life.

The survey included people aged 25 and over, earning more than $90,000 a year or holding more than $50,000 in investable assets.

“Financial advice unlocks benefits beyond money by improving overall mental health,” the study says. More than 44% of people who work with a CFP professional have reported financial advice positively impacted their mental health and family life. Plus, 77% generally feel they can cope well with any health issues.

Gen Y (aka millennials) is more hands-on, having greater experience with direct investing. One in five of gen Y-ers have traded directly online since 2020, with one in 10 trading before the pandemic and continuing afterwards.

Gen Y-ers have more interest in investing in novel, non-traditional asset classes, the study says. One in 5 gen Y-ers claim to currently have at least some crypto assets and one in three would consider it.

Tags: Financial advice

« FMA reviews players in Kloogh Ponzi schemeMore time on clients, less on investment »

Special Offers

Comments from our readers

On 11 October 2023 at 12:49 pm John Milner said:
This is my 35th year in the industry. In the early days I couldn’t bring myself to help clients into the investment products that were available at the time as they were nothing short of appalling.

However, we have come a long way as an industry, with transparency and client goals at the forefront. But, since the introduction of level 5, we appear to be evolving into an industry of average. Advisers levelling off once they have achieved the dizzy heights of level 5 - you know the one, entry level.

Massey had to drop the CLU courses because of a lack of participation and CFP levels aren’t keeping up with international growth levels from what I can see.

My association could probably do more too. I couldn’t tell you the last time we celebrated a new CFP at a meeting. But then again, we no longer have those now sadly.

Enough of my rant. Time for our industry to start walking the talk if we want to be considered as professionals and start acting like professionals.
On 12 October 2023 at 10:13 am Steve Wright said:
Well said John Milner. I'm pretty sure that achieving the level 5 requirement is no guarantee that advice given will be compliant with the Code or the FMCA.

‘Base level’ qualifications require ongoing, deliberate and diligent CPD, hence the Code Standard 9 CPD requirements. This is true for life and health insurance advice too, which is actually relatively complex.

My concerns for FAPs and advisers is that achieving ‘base level’ qualifications can contribute to advisers (and FAPs) developing unjustified levels of confidence in their competence. This is probably consistent with the Dunning Kruger Effect and acts as a handbrake on effective CPD and increases liability risk.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 ▼7.09 ▲6.95
SBS Bank Special - 7.14 ▼6.49 ▲6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.84 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.24 6.75 6.39
Median 8.64 7.19 7.17 6.65

Last updated: 12 June 2024 4:04pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com