The power of a financial adviser
during uncertain times

Some of the information in this article may be out of date. We are currently in the process of updating our content to reflect FY26 details.

There’s no denying it… 2020 has been a very difficult year. The impact of coronavirus has been felt in every country around the world, and as a result we’ve experienced significant instability within global markets.

During these challenging times, it can be extremely beneficial to have a trusted financial adviser. Someone who knows your personal situation and can help you navigate the uncertainty with sound advice and professional assurance.

Their knowledge and support can be a powerful tool in helping you maintain focus on your financial goals. With their help you can continue building your wealth even during the most unsettling times.

Results of recent research indicated that 68% of retirees who sought financial advice during the COVID-19 market downturn were sticking to their financial plan. The advice they received deterred them from making poor investment decisions based on fear or a lack of understanding.

First and foremost, a financial adviser can help you understand exactly what is happening within financial markets. They have the ability to decipher industry jargon and cut through all the news – and noise – you are exposed to from nightly television market updates.

No matter how complicated the current situation is, your adviser should be able to clearly explain what is going on and how it impacts you. It’s likely that you will find your concerns are alleviated once you have a thorough understanding of the circumstances and how you might be affected.

Much of the anxiety felt around market instability comes down to not fully comprehending the big picture and being influenced by dramatic headlines.

When you are feeling uncertain, it’s easy to make knee jerk emotional decisions about your finances. This is where your financial adviser can really support you and help you stay focused on the future. They can remove the elevated emotion and concentrate on relevant facts. Ben Rossi, First Financial’s Managing Director says,

“Human beings are not designed to make good financial decisions. We are easily swayed and influenced by our emotions or by other people… and we end up doing illogical things.

An adviser is someone who will hold you to account, to keep you on track with the things you said you were going to do.”

Your financial adviser knows you very well. They know the goals you have for your financial future and they have the ability to give you truly personalised advice.

When you are worried about something, they are there to provide you with an ear to listen and also professional advice appropriate for your unique situation. They can act as a sounding board and respond in a way that resonates with you and is relevant to your financial situation. This is a very different experience when you call a large retail superannuation fund and speak to a different team member on every occasion, none of whom are able to provide you with personal advice.

Your financial adviser should provide advice based on a sound set of principles. Here at First Financial our Investment Philosophy is uniquely designed to endure market downturns and is invaluable for clients when faced with market volatility.

Graeme Quinlan, Senior Adviser and head of the First Financial Investment Committee, explains:

“Our philosophy structure is built for uncertainty… in the long term when things recover, portfolios that are set up in alignment with our philosophy almost inevitably come through stronger.”

The amount of instability we have experienced this year has certainly created challenges for people, but your adviser will have the tools to be able to implement a range of strategies to help you weather the storm.

It’s not just all about investments or interest rates… they should be able to help you with accessing Government support, assess your tax planning and ensure your overall strategy is right to make sure you have a balanced financial plan.

Finally, your adviser can help you avoid some common mistakes that people make when they are faced with financial uncertainty. While they may not be able to sit down and write your household budget for you… they can definitely provide you with information about savings and discuss ways you could curb your discretionary spending. By reducing your expenses, you can build up an emergency fund and create a stronger financial position.

They can also assist with your estate planning and make sure you have a valid will in place. With the stark reality of coronavirus, it’s more important than ever to have your wishes clearly laid out.

Our team of Financial Advisers can help support you now and well into the future. If you’d like to discuss your current financial situation with someone, please contact us today. Read more Financial Planning articles.