Gut instinct is no match for expert advice

Gut instinct is no match for expert advice

Gut instinct is no match for expert advice

By Paul Clitheroe 6 February 2017

One of the marvelous aspects of living in the digital age is the ready availability of information. It’s a far cry from the days when we often made decisions based on a hunch, and that’s just as well. Research by broking group Mortgage Choice confirms that one in three Australians have regretted a financial decision based on gut instinct.

When it comes to money matters, the way we make choices is extremely important as there can be a lot riding on the outcome. Our financial lives have grown more complex and we are constantly called on to make key decisions, anything from “Should I pay more off my mortgage or put more into super?” through to “Which blend of investments is ideal for my portfolio?”

It’s a complicated world, and behavioural science sheds a fascinating light on the way we approach financial decisions. Unfortunately, research shows there is often a disconnect between what we know is the right thing to do, and the action we actually take.

The thing is, financial decisions are a part of everyday life – whether it’s looking for ways to save, deciding which credit card offers the best value, choosing a home loan, or planning for retirement.

Whatever the decision, being confident and informed can make a difference to your financial wellbeing and peace of mind. Research by the Australian Investments and Securities Commission (ASIC) found one in three Australians find dealing with money stressful and overwhelming. Yet the study also found one in ten people don’t consult any source of information at all when making money-based choices.

So, what’s the solution? An obvious step is to skip gut instinct and do some research.

There is a surprisingly large range of advice options available. A wealth of comparison sites show the latest deals for a vast range of financial products, and the MoneySmart website is an excellent source of education on basic money management.

The downside of these sites is that the information they offer isn’t tailored to your needs. And that’s where forming a long term relationship with a professional financial adviser, who understands your circumstances and goals, can make a valuable difference.

Interestingly, the Mortgage Choice study mentioned earlier found less than 10% of Australians have regretted a decision made after seeking financial assistance.

The bottom line is that going with your gut instinct may be fine when it comes to selecting golf clubs for the back nine, but it’s no basis on which to build financial security.

Paul Clitheroe is a founding director of financial planning firm ipac, Chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.

Paul Clitheroe AM is a founding director of financial planning firm ipac, Chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.

Gut instinct is no match for expert advice..... we get what you need

Take the first step towards your financial future. 

If you need help with personalised advice on financial planning, be it wealth strategies or protection for you or your family, or a need to discuss your present or future retirement options give us a call today on 03 6343 1007.  

Alternatively send us a message or simply book an appointment now with one of our qualified financial planners on our online booking service at a mutually acceptable time.

Copyright © FinancialPartners Blog  All Rights Reserved

Feel free to copy and share this but include the entire article and reference back to this site thanks.

FinancialPartners (Tas) Pty Ltd ABN 26 160 284 739 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

‘This blog post contains information that is general in nature. It does not not take into account the objectives, financial situation or needs of any particular person.  Because of this, before acting on any advice, you need to consider your financial situation and needs before making any decisions based on this information.

 You should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.

 If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

Leave a Reply

  • Just a small sample of some of our previous blog posts

    • The end of US quantitative easing
      The end of US quantitative easing   30 October 2014 Key points After phasing down its quantitative easing (QE) program all year the US Fed has finally ended it. Monetary tightening still looks unlikely until mid-next year at the ......
    • Like to work overseas?
      Like to work overseas? Here are some things to consider before making an international move. When it comes to working overseas the options can be endless. You may be considering teaching English in Italy or taking a job that’s very similar ......
    • Hats off to working parents!
      Hats off to working parents! Research into skilled workers shows that working parents are more productive employees. According to the Australian Institute of Family Studies, the number of parents who work is far greater than a few decades ......
    • Have we reached the bottom?
      Have we reached the bottom? Shane Oliver Chief Economist and Head of Investment Strategy Although it’s unlikely that we’ve seen the worst in sharemarkets, we do expect them to improve by the end of the year. In this article we look at the ......
    • How To Save Money For The Holiday Season In A Month
      How To Save Money For The Holiday Season In A Month Holiday season is such a wonderful time to have fun and enjoy with your family right? Say that to someone who is responsible for the expenses that come with the holiday season and they’ll ......