Most of us like to believe we can manage our own money.After all, we now live in an era where financial information is everywhere. You can read investment blogs online, learn about bonds and equities on YouTube, compare insurance plans online and even use robo-advisers to build a diversified portfolio in minutes. Some people are also turning to AI for financial advice.So it is a fair question: Do people still need financial advisers?The answer is not a simple yes or no. More importantly, many people do not actually understand what "financial advice" means in the first place. In Singapore, the national financial education programme MoneySense defines financial advice as being given when someone assesses your financial situation and recommends investment or insurance products.
Under the law, these people who give out such advice – known as financial advisers – must be representatives appointed by licensed financial institutions such as banks, insurers or brokerages.But in everyday conversation, the term "financial adviser" has become a catch-all label that mixes together very different roles. Some advisers mainly sell insurance. Some focus on investment products. Some specialise in retirement planning. Some are tied to specific institutions, while others can recommend products from across multiple providers. Therein lies the problem. Many people do not actually know whether they are receiving financial advice, product recommendations, or a sales pitch dressed up as financial planning – which is why some wonder if they can do without a financial adviser.WHEN YOU PROBABLY DO NOT NEED A FINANCIAL ADVISER Not everyone needs a financial adviser for every financial decision made.If your finances are relatively straightforward and you are willing to learn, many parts of financial planning can be done by yourself.For example, if you are young, single, have no dependants and simply want to start long-term investing, you may not need to seek out a licensed adviser or purchase a complicated investment product with high management fees. Instead, a globally diversified, low-cost portfolio may already be sufficient.
