Financial planning involves making the best use of resources to ensure income, financial growth and security. It may involve risk management and insurance, investment, taxation, retirement and estate planning issues.

A financial adviser can help you make money and maintain or improve your lifestyle with a sound financial plan. This will include helping you to avoid pitfalls, using your money to best advantage, and choosing products that suit your needs. A financial adviser will also help you understand risk, so you can assess what the best options are for you.

If you are planning for your retirement, have received a lump sum of money or have just left the workforce, or you simply want to make the best use of your money, then you should contact a financial adviser.

Talking to a financial adviser will

• help you make more informed decisions about your money
• help you use your money to best advantage, and
• help you choose products that suit your needs

To discuss your financial options and find out how we can assist you, simply fill out our online enquiry form and we will be in contact with you within one business day.

By Vishal Teckchandani
Fri 26 Jun 2009

More than 25 per cent of wealthy clients in 2008 withdrew their assets from their wealth management firm and deserted their financial adviser, new research shows.

More than one in four high net worth (HNW) clients in 2008 withdrew their assets from their wealth management firm and deserted their financial adviser due to a loss of trust and confidence, new research shows.

Nearly half of all HNW clients lost faith in their adviser and wealth management provider, according to Merrill Lynch Global Wealth Management and Capgemini’s annual world wealth report.

Around 80 per cent of HNW clients also lost confidence in regulators for being unable to detect early symptoms of the economic downturn and failing to stop corporate losses.

Additionally, wealth management profitability was hurt by lower assets under management due to the loss of clients and attrition and an increase in clients holding low-margin products, the report said.

Globally, HNW clients held on average 50 per cent in cash, term deposits and fixed income funds in their portfolios in 2008, up 6 per cent from 2007.

The study also found clients aged 31 to 45 were more inclined to leave their wealth management firm than clients who were 46 to 65, as they have known their adviser longer. Clients who made their fortunes from business and income also have a higher propensity to leave than clients with inherited wealth.

“This is a significant finding because 52 per cent of HNW wealth was generated from business ownership and another 18 per cent was generated from income,” Capgemini senior manager of financial services Wayne Li said.

He said advisers who are quick in relaying statements to clients, have transparent fees, good risk management capability and a wide range of product choices will be able to boost retention in the future.

“A European HNW client asked her banker for a detailed report on her financial holdings at the end of last year, and when she didn’t hear back from the bank in 10 days, she transferred $25 million from the larger firm to the smaller firm who promised her the delivery of such a report within a day,” Li said.

“In this environment, there is no excuse for delays and as a result of that the larger firm lost business.”

The number of HNW individuals tumbled by 23.4 per cent to 129,200 in Australia and by 14.9 per cent to 8.6 million globally in 2008.

HNW clients, classified as having US$1 million or more in investable assets, saw their combined wealth slump by 19.5 per cent to US$32.8 trillion at the end of last year.

source: Investor Daily