Do I need a [robo] advisor?

The Financial Planning Institute (FPI) of Southern Africa has set itself the goal of reaching 1 million people in 7 years through its FPIMYMONEY123™ programme. Despite fantastic education initiatives like this, many South Africans remain sceptical about using a financial planning professional to help them take control of their finances.

 

With World Financial Planning Day about to kick off, we take a look at some of the reasons why you should consider integrating a Financial Planner or Robo Advisor into your wealth building strategy.  

 

According to recent statistics quoted on the FPI website:  

 

  • 62% of South Africans don’t reinvest retirement savings if they are retrenched or change jobs

  • 38% of South Africans don’t seek retirement advice

  • 90% of people with pensions don’t monitor their investment after signing up

  • The average South African who has been diligent about saving for retirement, ends up only achieving 40% of their targeted income replacement ratio for their final salary 

These are scary statistics for a country who has long been criticised for its poor savings habits.

 

What is important to note is that the Financial Planning Standards Board (FPSB) conducted global consumer research and found that only 22% of consumers felt that they would achieve their financial goals. Only 19% were successful at sticking to their financial planning strategies.

 

In short, South Africans are not alone.

 

Here are some of the reasons we think you should consider when making use of a financial planner to help you avoid falling short of your wealth building goals:

 

  • You should consider a Financial Planner if you find you are overwhelmed by the financial media and its focus on short-term market movements, “trading ideas”, cryptocurrencies or the latest fad to get rich

  • You find yourself regularly having to make significant annual payments to SARS – a good Financial Planner or Robo Advisor can help you identify tax savvy investments

  • Your total investment or brokerage fees are greater than 2.5% per annum – trading costs play a major part in deciding your investment return

  • You find yourself unable to budget for un-planned emergencies or your child’s education  

  • You find yourself having to fund your holiday by tapping into expensive credit  

We at OUTvest are strong believers that high-quality financial advice can make a material difference to your financial goals. For this reason, OUTvest combined the speed and accuracy of the machine with the care and skill of the human advisor to give our clients the best of both worlds. 

 

Our advice team are proud members of the FPI and we look forward to supporting the FPI with its noble intent of empowering 1 million South Africans with relevant financial knowledge and superior financial planning.

 

OUTvest is an Authorised FSP.  All investments are exposed to risk and not guaranteed. 

 

 

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