The Sydney Morning Herald will have you falsely believe that “the financial advice industry has been dealt a blow with evidence that some of its biggest names – AMP, Colonial, and BT – are mostly telling clients simply to buy products offered by their parent companies.” Read the original SMH article.
That conclusion is wrong. Believing it will cause you unnecessary stress and probably lose you money.
The reality is that this product focus is stressing about the detail and missing the big picture.
For example, product focus is like stressing about finding the best pair of mountain climbing shoes.
- What if you’re never quite sure you’ve got the best shoes so you never set off on your trek up the mountain? (Behaviour and delay)
- What if you set off but you’re on the wrong mountain? You get to the top and you look across and realise you actually wanted to summit a different mountain? (Life goal clarity)
The greatest cost in wealth creation is behavioural. The long term lifestyle cost of a slightly more expensive product to get you from A to B is minimal when compared to the cost of delay.
Don’t allow worry about product-aligned financial advice to cause you to procrastinate from taking positive action with your finances. The procrastination will be far costlier to your short and long term lifestyle.
Further the product has nowhere near the impact of getting the right strategy and being clear on your goals. And since goals clarification and strategy selection are the steps before product selection all good financial planners will advise you on that irrespective of them being tied to product provider. That is the true value of planinng your finances.
Stop worrying about finding the best investment product and just take positive action today towards your personal clearly defined goals.
If you need greater clarity of your goals and you need support to consistently take action then hire a financial planner to guide and suport you. They’re like a personal trainer for you and your money.
P.S. Just in case you’ve assumed I am tied to a product provider – I’m not. I deliberately choose my licensee to ensure I can recommend an extremely broad range of products across many providers. I am aligned to your best outcome not to a product. (Just ask my clients.)