Control issues still driving DIYers to shun advice

Personal control issues are amongst the reasons some investors do not seek out professional financial advice, according to new research released by the Australian Securities Exchange (ASX).

The ASX 2017 Investor Study conducted with Deloitte Access Economics has also confirmed that the use of advice is highest among those with higher incomes.

“Currently, around 60 per cent of all investors use some form of professional advice (from a financial planner, full-service stockbroker, accountant, or lawyer) to help guide their investment decisions,” the study analysis said. “Financial advice (from a financial planner or full service stockbroker) is more commonly sought by higher income investors, although the differences are modest.”

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It said investors had stated the top reasons they used advice were that the advice could be tailored to their personal circumstances, and that an adviser helped them better manage risk in their portfolio.

“For those not using advice, their main reasons are a preference to be in control (‘do-it-yourself’

investors), and that they are not convinced that advice adds value,” the study analysis said. “Of these ‘do-it-yourself’ (DIY) investors, they may not be averse to using financial advice, but it could be that the current form of advice does not suit their preferences.”

The study also found that there was unlikely to be any slackening in the creation of self-managed superannuation funds (SMSFs), with the research revealing 30 per cent of adults who did not currently have an SMSF intended to set one up.

The study also found that three-fifths (60 per cent) of Australian adults directly hold investments of some sort (including investments not available on a financial exchange) outside of their institutional superannuation fund.

It said this meant that many Australian adults were comfortable investing, but they are not necessarily investing in on-exchange investments.

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Probably doesn't suit them because advisers have to tell the clients some very unsavory home truths about their stupid spending habits, poor judgment, being too greedy and having to learn some patience and moderation. My experience has shown that the ones that don't value advice are get rich quick greedy bastard and deserve to be ripped off AKA Storm Financial and Agri Investments etc.They also don't like to pay for advice because advisers don't articulate how valuable this is. Combine all of this with the ISN defamatory attack on all advisers for their own financial gain and the client believes this crap. Funny how a lot of the senior ex-Insurance management and executive crooks ended up in Industry super funds management isn't it.
I retired at 66 late last year and still have great relationships with most of my clients who employed my services 29 years ago and yes they have done very well financially over all these years even during all the corrections.

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