Seven ways a financial adviser can add value to your life

Johannesburg - Just like in cricket, success in one’s financial journey requires teamwork and strategy. As the ICC Women’s T20 World Cup 2024 unfolds in Abu Dhabi, UAE, it serves as a perfect reminder that collaborating with a qualified financial adviser can help you score big on your financial goals.

According to the Reserve Bank, the ratio of household debt to nominal disposable income in South Africa reached 62.4% in 2023, slightly up from 62% in 2022. In practical terms, this means that for every R100 a household earns after tax, R62.40 is used to service debt. Such high levels of household debt leave little room for saving or investing, making it difficult to build financial security.

Bertie Nel, Momentum Head of Financial Planning and Advice, says it’s best to think of an adviser as your financial coach, guiding you to victory on the field of finance.

“Just like every player needs a solid team to perform at their best, having the right financial adviser can make all the difference in reaching your financial goals,” says Nel. “The right adviser is there to provide the expertise and guidance you need to confront the complexities of financial planning even when life can feel overwhelming and unpredictable at the best of times.”

He provides a list of life moments when a financial adviser can add serious value in this crucial game of life and success:

Navigating career changes

Whether you’re changing jobs, switching careers, or dealing with a sudden job loss, a financial adviser can help you make smart financial decisions. From managing severance packages to preserving and maybe adjusting your retirement savings, they ensure your finances stay on track during transitions.

“Many people don’t realise how crucial financial advice can be during a career shift,” explains Nel. “They help you keep your long-term goals in focus while managing the immediate changes.”

Planning for big life events (and the small ones too)

Whether it’s a marriage, starting a family, or sending your children to university, a financial adviser helps you plan for life’s big (and sometimes small) milestones. They provide strategies to balance the costs while keeping your financial goals in mind.

“Life events, big or small, often come with financial implications that can be overlooked,” says Nel. “Sound advice from a financial adviser can help you prepare so you can enjoy these moments without financial stress.”

Coping with a health crisis

A serious illness or unexpected medical costs can throw your finances into disarray. Your financial adviser can guide you through any claims, accessing savings, and reworking your budget to accommodate such medical expenses.

“Health crises can be overwhelming, emotionally and financially,” says Nelk. “The right financial adviser will help you manage the financial side of things, so you can focus on recovery.”

Making the most of windfalls

Receiving an inheritance or a bonus? A financial adviser can help you make the most of windfalls by advising on investment opportunities, tax implications, and other ways to grow that money for the future.

“It’s easy to get caught up in the excitement of a windfall, but thoughtful planning can turn it into long-term financial security,” explains Nel.

Preparing for market volatility

In times of market uncertainty, it’s tempting to make impulsive decisions about your investments. A financial adviser offers steady guidance to help you stay the course and avoid common mistakes like panic-selling or overreacting to short-term changes that could result in value loss.

“When the markets get rocky, a financial adviser provides a calm, strategic approach,” says Nel. “Their role is to help you navigate volatility with confidence.”

Managing unexpected expenses

Whether it’s a sudden home repair or an unforeseen emergency, life has a way of throwing financial surprises your way. A financial adviser can help you create a buffer in the form of an emergency fund and provide guidance on managing unexpected expenses without derailing your long-term plans.

“A solid financial plan includes preparing for the unexpected,” explains Nel. “Financial advisers help ensure you have safety nets in place to weather life’s financial surprises.”

Evolving with your goals

Your financial goals will change over time, and so will your financial strategy. Whether you’re shifting your priorities or aiming for new milestones, your financial adviser helps you reassess and adjust your plan to align with your evolving life goals.

In closing, Nel adds, “Investing in a financial adviser is investing in your future. They not only help you manage your finances but also empower you to make informed decisions that align with your goals, no matter what your current circumstances are.”