Blue Chip Issue 89
Blue Chip Journal – The official publication of FPI. Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry.
Blue Chip Journal – The official publication of FPI. Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry.
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BLUE<br />
CHIP<br />
FPI | Research<br />
• 84% agreed with the statement, “I am satisfied with my dayto-day<br />
cash flow and spending confidence” versus 73% of<br />
unadvised respondents.<br />
• 80% agreed with the statement, “I am satisfied with risk<br />
management to protect my wealth” versus 70% of unadvised<br />
respondents.<br />
• 94% said the services provided by their planner were meeting<br />
their needs.<br />
• 86% agreed with the statement, “My CFP® professional has<br />
supported me to make the best financial decisions I can”.<br />
• 88% agreed with the statement, “My CFP® professional has<br />
helped me manage financial risks in my life”.<br />
BENEFITS BEYOND MONEY<br />
The survey underscored the benefits the clients of CFP®<br />
professionals enjoy beyond purely financial ones:<br />
• 80% agreed that financial planning helped fulfil life dreams.<br />
• 65% said financial planning positively impacted their family life.<br />
• 83% felt they could cope better when faced with health issues.<br />
• 62% reported that financial planning positively impacted their<br />
mental health.<br />
DEBUNKING MYTHS ABOUT FINANCIAL PLANNING<br />
The survey puts to rest several popular myths about the profession:<br />
Myth #1: Financial planning is only for the rich. Fact:<br />
Quality of life, financial confidence and financial satisfaction see<br />
improvement in the advised, even those with lower incomes.<br />
Advised respondents earning less than R1.25-million a year<br />
showed higher scores on all metrics compared with unadvised<br />
respondents in this income group.<br />
Myth #2: Financial planning is only needed at retirement.<br />
Fact: Advice has benefits to quality of life, financial confidence and<br />
financial satisfaction at all ages. Almost half of Gen Y respondents<br />
(47%) cited buying a property as their top trigger for seeking<br />
financial advice.<br />
Myth #3: Financial planning costs more than its worth. Fact:<br />
The experienced value of financial planning delivers benefits that<br />
far outweigh the fees clients pay. Almost nine in 10 advised clients<br />
(87%) agreed that financial advice had brought more value than<br />
it costs.<br />
Myth #4: Advisors lack objectivity. Fact: Unadvised consumers<br />
have concerns about finding a trustworthy financial planner. However,<br />
the evidence shows that advised consumers overwhelmingly trust<br />
their advisors to put their interests first – 94% of respondents<br />
using a CFP® professional said they trusted their planner and<br />
87% valued their planner for being independent.<br />
YOUNGER GENERATIONS<br />
Of the 1 005 respondents in the South African survey, 508 were<br />
Generation Y or “Gen Y” (born between 1981 and 1996), 284<br />
were Generation X or “Gen X” (born between 1965 and 1980),<br />
and 213 were Baby Boomers or “BB” (born prior to 1965).<br />
“Having a financial planner gives peace of mind because they help you establish goals and<br />
achieve them. It also reduces the risk of losing money because you know the decision you are<br />
making is the best one. Since you are helped by a professional, you have confidence.”<br />
Client of a CFP® professional | Female, 28, Gauteng<br />
24 www.bluechipdigital.co.za