Saturday May 18th, 2013
The Value of Advice
An independent study conducted by KMPG titled "Value Proposition of Financial Advisory Networks" highlights the inherent value in financial advice. The following excerpt is taken from the study
For those individuals with a financial planner, they have an average investment balance of $42,559 compared to an average investment balance of $34,346 for those who do not have a planner. The level of savings in the 2007/08 year is on average $6,991 for those with a planner and $4,341 for those without. That is, in a year, those with a financial planner saved $2,650 on average more than those without a planner. This initial descriptive analysis suggests that those with a financial planner save more and have greater investment balances than those who do not
A second study conducted by KPMG compared average sums insured between those who seek advice on personal protection and those who don't.
For death policies, the average sum insured for an advised customer was $308,212 compared with just $99,954 for direct (including mail, Internet and telemarketing).
For trauma policies, the average sum insured for an advised customer was $182,387, compared to $67,015 for a direct customer.
For TPD policies, the average sum insured for an advised client was $271,546 while those who went direct averaged less than half the cover at $105,513.
The numbers above demonstrate how those who seek financial advice are better protected against death, accident and sickness.