Australia’s healthcare system is quickly being overrun by the rising rate of COVID-19 infections. Doctors, nurses and other healthcare professionals should be commended for their services to the community as the days become increasingly uncertain and the government’s response to the pandemic intensifies.
I’m no expert when it comes to healthcare, but I believe I’m correct in saying that one of the biggest issues Australia could face is a shortage of hospital beds in intensive care units (ICUs).
A shortage of financial planners is also hitting our citizens as the growing health crisis triggers a financial one.
Only 20 per cent of Australians use a financial planner. Those people will arguably be in a more fortunate position than those who have been unable to afford advice or have struggled to see the value in it.
Make no mistake, the role that financial planners play in the community has been a point of debate and contention for many years. But in times like these it becomes crystal clear, and essentially boils down to one word: help.
Help is the name of the game when it comes to professional financial planning. A financial planner’s role is to help you navigate your financial circumstances and secure not only your retirement, but your cash flow needs through your working life, through periods of unemployment and major life events.
The COVID-19 pandemic is a major life event for all Australians. Whether you are directly impacted by the virus or know someone who is, the financial impact of the evolving situation will touch all of us.
For many working Australians under the age of 50, this will be the first time they have experienced a recession in their working lives. We have been economically blessed as a nation for close to 30 years. But our Prime Minister and other state leaders have made clear that we are entering an economic crisis, the length and depth of which is, like many things these days, still uncertain.
The power of helping others
Australians who work with a financial planner are empowered to make confident financial decisions specific to their individual circumstances. There is no one-size-fits all approach when it comes to your personal finances.
While the government is rolling out a major stimulus package for the economy, it is important that each Australian accepts that their own situation is unique.
A financial planner helps you understand your financial situation, improves your financial knowledge, gives you options, helps you access the government benefits you’re entitled to and gives you guidance throughout your life. The long-term goal may be growing wealth, but in the short-term it is about helping you feel in control about your financial situation and giving you peace of mind and greater confidence.
It is in the current environment that Australia’s financial planning community will step up and be of service to those who require, possibly now more than at any other stage in their lives, the guidance of a trusted financial professional.
It is easy to rush into panic and fear in these unprecedented times. But cooler heads must prevail, and that is the duty of a financial planner: to provide advice that is in the best interest of their clients.
The role of a financial planner has been frustratingly obscure in the minds of Australians in what could be considered the lost years of regulatory overreach and political posturing. With an economic crisis now unfolding, it seems the industry is under resourced to handle the scale of financial casualties.
It is important, however, that our work at the FPA continues for our members and their clients.
We must make advice more accessible
Financial planners across the country are extremely busy providing counsel to their own clients as this financial crisis unfolds. Unfortunately, many of them will be inundated with requests from prospective clients but must now give priority to the long-term customers with whom they have a close and critical relationship.
This is a sad situation that must be resolved once we are all back on our feet and are able to reflect on these dark days from a place of optimism and with a fresh pair of eyes.
The FPA believes financial advice should be available to all Australians, not just the wealthy. Sometimes, it is only when we are forced into an uncomfortable position through powers beyond our control that the answers present themselves.
We believe the answer to a financially healthy nation lies in the democratisation of financial advice.
We can ease the burden on government services like Centrelink with the help of financial planners.
We can make advice affordable by allowing Australians to expense its cost as a tax offset.
We can show the majority of Australians why financial planning is a valuable service.
We can help those facing financial hardship.
And we will play our part in rebuilding this great nation for many years to come.
Dante De Gori, chief executive, FPA
Have you noticed that the healthcare system is far from being overrrun? 20 new cases a day, of which only a few need to be hospitalised may overwhelm a small town but not Australia.
I’ve been a member of the FPA for well over 20 years. Goodbye FPA. I will be leaving when membership is due for renewal in June. Having pre 2009 qualifications I had to complete a course in Australian Tax Law for $1,200 and will now meet TPB requirements. It took me about 4 hours but compared to FPA membership it was well worth doing. The only advisers left at the FPA will be those working for some Bank like licensee where there membership is paid in bulk.
I was looking for somewhere to gauge opinions on the value of continuing with FPA membership. I’m struggling to see the value. Anyone wish to comment?
I can honestly say the only thing the FPA feel like it has achieved for advisers is, some nice scones and tea at an annual conference. But I don’t need to pay to have friends. My advice is just join the cheapest association you can. FINSIA and the Stockbrokers & Planners associations are charging $550. I’ve spent many hours writing to Treasury, ASIC and local members and have had better outcomes. You know what they say about doing the same thing over and over and expecting a certain outcome. Resign.
Preaching to the wrong audience Dante!
More evidence that the FPA are out of touch with reality are part of the problem. Irrelevent drivel.
Usual rubbish from Dante. Yawn. Dante has no clue!
Marketing dribble. The reason why many industries are in strife is because leaders are more interested in feathering their nests with high incomes rather than working hard for the industry to grow & thrive. Should take leaf out or NZ prime minister book and take pay cut.
Still waiting for my refund from the FPA for fee for no service for the last 16 years while I am on the other line with AMP for the last hour and half !
It’s a pity the industry has not embraced the professional year to encourage entry of new advisers. We could end up with a closed shop and less access to affordable advice.
Seriously? Who has time?
We will end up with much less access to affordable advice. But it has nothing to do with the PY. It is caused by overly complex and expensive regulation. Advisers simply cannot service most consumers for a reasonable price under the current regulatory burden. And it’s getting worse.
As an aside Dante, can I challenge your opening statement. Our Government would have us believe that our “healthcare system is quickly being overrun by the rising rate of COVID-19 infections.” It’s a great way to instill fear and get us to accept things that the proposed ‘George Orwell App’, which will benefit them to our detriment for ever. But in fact, if you interview nurses in the ICU areas of the major hospitals you learn something extraordinary. At the Royal Melbourne hospital, last I heard from a nurse in ICU there, a week ago, there was ONE patient. A woman in her 40s. Staff at the Alfred hospital are well prepared, but they are quiet. I’m not questioning the value of nurses or financial planners, but it’s curious to think of the cure potentially being a lot worse than the virus in Australia.
Rory Robertson tweeted yesterday that Australian ICU ventilator utilisation is currently at 2%. Doesn’t sound much like “quickly being overrun” to me Dante??
I believe we have over 2,000 ICU beds around Australia and 49 patients (a fantastic position to be in)
I thought we only added value to clients with complex needs ????
Dante….Australian’s in crisis can’t afford Financial Advice and Financial Advisers can’t afford Australian’s in crisis. I don’t wish to seem heartless but the commercial reality is that it’s fine to serve longstanding fee paying clients but we can’t starting serving the deluge of penniless non-fee paying clients. The “crisis” stuff you mention is the domain of government funded “Financial Counsellors”. The last thing Australians who have lost their jobs and have no money to feed their kids need is a Financial Advice invoice. They need $$$ to feed their kids.
This press release was brought to you by our proud partners AMP, CBA, Westpac Bank and IOOF.
Geez thanks Dante – obviously worked furiously on this with your scriptwriters over the weekend.
And good on you – got it in an internal industry publication!!
Why not get out and show your face to the media at large and get these sort of messages in the wider community? OR, you could dip in to the FPA savings (aka term deposits) and start promoting the industry nationally OR is that not what the FPA does for its members??
Come to think of it, not sure what you’ve done to ensure the future viability of the industry.
Spoken like a true accountant Arthur!
or traveller on his way through the galaxy… 🙂
Actually our rate of infection is so low that our hospitals are comparatively empty and as such, elective surgery is back on the agenda.
You have failed your members – where have you been the last couple of years – you have assisted in making advice more expensive. Compliance is out off control – ask any planner. FPA is a joke.
Love these motherhood statements!!!-not
Hello Dante, just a reminder, due to reforms your organisation supported, financial planning is now only available to the wealthy. The real Aussies can just sit on hold on their super fund call centre.
“The FPA believes financial advice should be available to all Australians, not just the wealthy.”
Nice to know the FPA believes this but do advisers and their respective licensees believe this too? Really? I would beg to differ looking at the Royal Commission findings …
“We can ease the burden on government services like Centrelink with the help of financial planners.”
Seriously? Most clients just want to see if they can get more pension not less…. prove me wrong! Or are you now helping those unemployed get jobs?
“We can make advice affordable by allowing Australians to expense its cost as a tax offset.”
With a caveat that the tax offset is only available to those on lower incomes right? Not with millions in funds or SMSFs?
“We can show the majority of Australians why financial planning is a valuable service.”
How? Obviously failed to do so up until this point given only a 20% take up rate….
“We can help those facing financial hardship.”
Best Joke of the Day! Financial Advisers help those facing financial hardship – no they are called financial counsellors and do not serve their own self interests first!
This whole article is an oxymoron and no, that is not a defamatory or an obscene comment.
Arthur you have clearly never assisted someone assess their eligibility nor complete the application forms to obtain the age pension,Commonwealth Senior Health Care Card, Income Assessment for Aged Care Facility. These are all organised by Centrelink .You try and do it yourself and it will take hours to get through on the phone and work out eligibility. Also why do you assume that more than 20% of people are prepared to pay for advice ? The reality is there are many many people in the world like you that are cynical and will never pay for advice or a service. Arthur we don’t want you as a client and the 80% like you. This is not meant to be an offensive comment. We have a business to run and people like you are not of any interest to us. The last thing in the world we will ever do is to shape our business to target you as a client so stop trying to evangelise to us.
Arthur Dent, Hitch-hike you way out of our Galaxy…you’re burning up…