Blue Chip Issue 89

More documents

Recommendations

Info

BLUE CHIP FPI | Research • 84% agreed with the statement, “I am satisfied with my dayto-day cash flow and spending confidence” versus 73% of unadvised respondents. • 80% agreed with the statement, “I am satisfied with risk management to protect my wealth” versus 70% of unadvised respondents. • 94% said the services provided by their planner were meeting their needs. • 86% agreed with the statement, “My CFP® professional has supported me to make the best financial decisions I can”. • 88% agreed with the statement, “My CFP® professional has helped me manage financial risks in my life”. BENEFITS BEYOND MONEY The survey underscored the benefits the clients of CFP® professionals enjoy beyond purely financial ones: • 80% agreed that financial planning helped fulfil life dreams. • 65% said financial planning positively impacted their family life. • 83% felt they could cope better when faced with health issues. • 62% reported that financial planning positively impacted their mental health. DEBUNKING MYTHS ABOUT FINANCIAL PLANNING The survey puts to rest several popular myths about the profession: Myth #1: Financial planning is only for the rich. Fact: Quality of life, financial confidence and financial satisfaction see improvement in the advised, even those with lower incomes. Advised respondents earning less than R1.25-million a year showed higher scores on all metrics compared with unadvised respondents in this income group. Myth #2: Financial planning is only needed at retirement. Fact: Advice has benefits to quality of life, financial confidence and financial satisfaction at all ages. Almost half of Gen Y respondents (47%) cited buying a property as their top trigger for seeking financial advice. Myth #3: Financial planning costs more than its worth. Fact: The experienced value of financial planning delivers benefits that far outweigh the fees clients pay. Almost nine in 10 advised clients (87%) agreed that financial advice had brought more value than it costs. Myth #4: Advisors lack objectivity. Fact: Unadvised consumers have concerns about finding a trustworthy financial planner. However, the evidence shows that advised consumers overwhelmingly trust their advisors to put their interests first – 94% of respondents using a CFP® professional said they trusted their planner and 87% valued their planner for being independent. YOUNGER GENERATIONS Of the 1 005 respondents in the South African survey, 508 were Generation Y or “Gen Y” (born between 1981 and 1996), 284 were Generation X or “Gen X” (born between 1965 and 1980), and 213 were Baby Boomers or “BB” (born prior to 1965). “Having a financial planner gives peace of mind because they help you establish goals and achieve them. It also reduces the risk of losing money because you know the decision you are making is the best one. Since you are helped by a professional, you have confidence.” Client of a CFP® professional | Female, 28, Gauteng 24 www.bluechipdigital.co.za
FPI | Research BLUE CHIP Gen Ys are proving to be highly engaged with their finances and are open to the value financial planning can bring. Now established income earners, Gen Ys are on the verge of receiving unprecedented levels of intergenerational wealth via inheritance or gifts. Almost half of Gen Ys (47%) and a similar percentage (43%) of Gen Xs already have or are likely to come into an inheritance or major financial support – 32% of Gen Ys and 44% of Gen Xs expect to do so in the next five years, and for some, the amounts will be significant. Over half of Gen Ys (54%) said they would turn to a professional advisor for help with their inheritance as opposed to obtaining help from family or friends or using other sources. The survey found Gen Y is different from older generations in the following respects: • While face-to-face advice is a top choice (73% of Gen Y versus 82% of Boomers), Gen Ys are significantly more likely to turn to digital channels to manage their finances (77% of Gen Y, 70% of Gen X and 67% of Boomers are using apps or websites to help with budgeting, investments or credit). • Gen Y is more hands-on, having greater experience with direct investing: 19% of them had taken up direct online trading since 2020, with a further 13% already trading before the pandemic and continuing to do so. • Gen Y prioritises socially responsible investing: over 90% of Gen Ys prefer to invest in companies that have some purpose beyond profits, higher than Boomers (seven in 10). • Gen Y is more interested in investing in novel, non-traditional asset classes. Crypto assets are more popular among younger generations: 40% of Gen Y respondents claim to currently have some crypto assets and 35% would consider it. This compares with 44% of Boomers who would not even consider it. However, Gen Ys are under no illusions about the risks crypto presents: 60% of them agreed that it is a “very risky investment”. PERCEPTIONS AND BARRIERS TO ENTRY Clients who have interacted with CFP® professionals are highly likely to recommend them to others. The Net Promoter Score (the difference between promoters and detractors) for CFP® professionals is significantly higher than for non-CFP® advisors: +34 versus +28. The CFP® designation is widely recognised even among respondents who do not use an advisor (55% of them were aware of it). Of those, 74% agreed with the statement “The CFP® designation is the only globally acknowledged mark of professionalism for financial planners”. So, what are the ongoing barriers to entry, and what would trigger someone to see a planner? Key reasons for not using a financial planner were: • Finding someone I could trust. (Gen Y 34%, Gen X 35%, BB 45%) • I feel it is too expensive. (Gen Y 32%, Gen X 38%, BB 40%) • Lack of urgency, I will do it when I am older. (Gen Y 23%) • I don’t know where to start. / It’s too complicated or confusing. (Gen X 24%) • Finding and assessing a suitable planner. (BB 27%) Key triggers were: • Buying a property. (Gen Y 47%, Gen X 24%, BB 13%) • Coming into a substantial sum of money. (Gen Y 37%, Gen X 48%, BB 53%) • Approaching retirement. (Gen Y 34%, Gen X 50%, BB 41%) • Have more financial control/grow wealth. (Gen Y 36%, Gen X 38%, BB 47%) • Financial distress/bankruptcy or debt. (Gen Y 37%, Gen X 40%, BB 31%) CONCLUSION Money is a source of stress for many people. For some, it can take a personal toll, affecting their quality of sleep and even their mental health. The current economic climate isn’t helping. The global economic outlook is strained, with stubbornly high inflation, rising interest rates and living costs squeezing family budgets. The good news is that professional financial planners can enable people to take control of their financial lives, empowering them to feel more confident and stay on track to achieve their goals. Lelané Bezuidenhout, CFP®, CEO of the FPI, and Dante de Gori, CFP®, CEO of the FPSB, say the survey endorses the value of professional planners in today’s uncertain world. Bezuidenhout says, “Obtaining professional financial advice from a CFP® professional is important as they have specialised knowledge and expertise in various financial planning areas. CFPs® create personalised financial plans, helping clients achieve their financial goals, manage risks, optimise tax strategies and operate with a fiduciary duty to prioritise the client’s best interests. The findings of this study show that consumers should entrust their financial planning to a professional, and more specifically, a CFP® professional.” De Gori adds, “In this current volatile climate, where unexpected events can send shockwaves through the global economy, the role of financial planning in general and of CFP® professionals in particular has become even more critical in empowering consumers to make informed financial decisions and achieve their long-term goals while enjoying a better quality of life. The findings in this global study illuminate a compelling reality: the immense value that CFP® professionals bring in supporting clients’ financial needs amid times of uncertainty, reinforcing the reputation of the CFP® certification as the global symbol of excellence in financial planning.” “He is a certified financial advisor with ongoing studies, knowledgeable in keeping up to date with compliances, market performance, and products.” Client of a CFP® professional | Female, 65, Western Cape www.bluechipdigital.co.za 25
Page 1: BLUE CHIP 0.5 CONTINUOUS PROFESSION
Page 4 and 5: CONTENTS ISSUE 89 NOV/DEC/JAN 2024
Page 6 and 7: CONTENTS ISSUE 89 NOV/DEC/JAN 2024
Page 8 and 9: BLUE CHIP FPI UPDATES | CEO message
Page 10 and 11: BLUE CHIP On the money Making waves
Page 12: BLUE CHIP On the money Making waves
Page 15 and 16: RCA-BCJ-23-2 Our tailored platform
Page 17 and 18: BEHAVIOURAL FINANCE | Books BLUE CH
Page 19 and 20: COLUMN BLUE CHIP Consider paying of
Page 21 and 22: FPI | Financial Planner of the Year
Page 24 and 25: BLUE CHIP FPI | Research The power
Page 28 and 29: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 30 and 31: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 32: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 35 and 36: INVESTMENT | Offshore BLUE CHIP The
Page 37 and 38: INVESTMENT | Economy BLUE CHIP 1% o
Page 39 and 40: INVESTMENT | Asset management BLUE
Page 41 and 42: Partner with us, become an FPI Appr
Page 43 and 44: MAKE YOUR MONEY WORK ANYWHERE. At O
Page 45 and 46: INVESTMENT | Economy BLUE CHIP Thin
Page 47 and 48: FINANCIAL PLANNING | DFM BLUE CHIP
Page 49 and 50: Calling ALL Financial Advisors Bran
Page 51 and 52: Help us create a better tomorrow. I
Page 53 and 54: ROUND TABLE SERIES | Offshore inves
Page 55 and 56: FINANCIAL PLANNING | Self developme
Page 57 and 58: PRACTICE MANAGEMENT | Technology BL
Page 59 and 60: USE AI FOR EFFORTLESS AGENDAS & MIN
Page 61 and 62: FINANCIAL PLANNING | Technology BLU
Page 63 and 64: FINANCIAL PLANNING | Technology BLU
Page 65 and 66: PRACTICE MANAGEMENT | Technology BL
Page 68 and 69: BLUE CHIP PRACTICE MANAGEMENT | Tec
Page 70 and 71: BLUE CHIP CLIENT ENGAGEMENT | Commu
Page 72 and 73: BLUE CHIP FINANCIAL PLANNING | Reti
Page 74: BLUE CHIP FINANCIAL PLANNING | Reti
Page 77 and 78:
FINANCIAL PLANNING | Retirement BLU
Page 79 and 80:
PRACTICE MANAGEMENT | Accounting BL
Page 81 and 82:
GOALS BASED ASSET MANAGEMENT HEALTH
Page 83 and 84:
FINANCIAL PLANNING | Retirement BLU
Page 85 and 86:
FINANCIAL PLANNING | Leadership BLU
Page 87 and 88:
CLIENT ENGAGEMENT | Behavioural fin
Page 89 and 90:
PRACTICE MANAGEMENT | Business deve
Page 91:
YOU SHOULD THINK CAREFULLY ABOUT TH
show all

Blue Chip Issue 89

Create successful ePaper yourself

Delete template?

Save as template?