Why you need ongoing advice, not just set and forget

Cara Brett 7 February 2015


Now, I know this seems like it is going to come across as a big fat advertisement for our business and what it is we do. Yes, probably to some degree, but I want to tell you about a real life example as to why you can’t just set and forget your finances.

I recently had some lovely people come to me asking for help on a life insurance policy that they had taken out some 27 years earlier.

They paid their premiums each year comfortable with the fact that if something were to happen, they would receive a payout upon death.

A few weeks ago they received a letter in the post, letting them know that the policy expires in 2 weeks. News to them, they had no idea and thought that if they kept paying the premiums the insurance would be there.

Unfortunately for them, they had an old old policy, that had never been reviewed by the financial adviser who put it in place. Some of these policies expire when you turn 65, which is the reason why the policy was cancelled. The thing is, pretty much every single life insurance policy out there today, now goes to age 99. This should have been reviewed and rectified many years ago when the better policies came on the market, or at very least, prior to the expiry date.

Just like there is an expiry age on insurance policies, there is also a maximum entry age. If you are over the age of 65 to 70 (depending on the policy), you are unable to get life insurance at all.

Thankfully, these guys can probably get themselves something given they have a few years up their sleeve, but it could have been a lot worse.

Insurance, super and investments should never be a set and forget plan. If you have an adviser, they should be reviewing this every single year to make sure that you aren’t missing anything. As we get older and closer to retirement, the rules start to change, and your adviser needs to be on top of this to ensure that you are in the best financial position in your twilight years.

If your financial adviser hasn’t contacted you in over a year, then ask why. A yearly review may not necessarily mean getting a whole new insurance package, it may just mean a confirmation that what you currently have is the best in the market and suited to your needs. Some peace of mind so to speak, and that is what your financial adviser is for.

Or… it could mean some issues can be picked up sooner rather than later so that down the track you don’t have any unexpected nasties.

And that my friends, is the reason why engaging a financial adviser should be an ongoing relationship. They are there to put your best interest first, start forward planning even before you do, keeping an eye on things that you don’t even know you should be keeping an eye on and letting you know exactly what you can and can’t do legally with your money.

Yes, I make money out of being a financial adviser, it is my livelihood, but it is something that I am very passionate about. It is more complex than most people know, and unfortunately I see situations like this all the time. Financial Advice does cost money, there is no getting around that, but if you are smart, get a financial adviser that you trust, they will put you in a better position in the long run than you would have been by yourself and not paying for the advice. I stand behind that every day.

Soap box moment over 🙂

This post is from our resident Financial Planner Cara Brett. Check out her details on the About us page.

Posted in: Cara Brett, Investments, Insurance, Financial Planning and Superannuation.

About the author: Cara Brett

Cara Brett proudly heads up Bounce Financial - founded in 2014 after a successful, decade-long career in the financial services industry. Cara’s experience encompasses both the financial product and financial advice sides. This gives her a comprehensive and holistic knowledge of all facets of financial planning.