Here’s why you need a financial adviser

If you were to ask ten people where they get their financial advice, chances are you’d hear ten very different answers. From a friend at work who “knows about investing”, to a cousin who once made money trading crypto, to the endless stream of “finance hacks” on social media, it can feel like everyone has an opinion about your money.

But here’s the reality: very few South Africans are actually seeking advice from the people trained to give it. According to the recent Momentum Group BMR household finance survey, only 9% of South African households use a professional financial adviser.

The vast majority either rely on their own knowledge and experience (77%) or turn to family and friends (12%). This means 91% of households are navigating one of life’s most important areas – money – without professional guidance.

And it’s costing them. Momentum’s research shows that households working with a certified adviser have, on average, 9.5 times more in investments than those who don’t. So why are so many people hesitant to seek financial advice?

 Here are some of the most common misconceptions  – and why they don’t hold up.

Misconception 1: “I can find all the information I need online". 

There’s no shortage of financial content online. The financial advice space has changed vastly with the introduction of social media, digitised financial advice, and, recently, with artificial intelligence (AI). And with this touch-of-a-button access, people enter into conversations with financial advisers having more knowledge than ever before.

As a result, what people need from a financial adviser is not only more information – it is insight and advice. They are not looking to be told what to buy; they are looking for someone to help them think about what matters and how to achieve their goals.

Moreover, this shift has empowered potential clients in how they want to interact with advisers. People want to participate in the decision-making process. When you’re an active participant in shaping your own life, you understand the reasoning behind each decision. Everyone wants to feel that they have some level of ownership of their finances – with someone beside them who listens carefully, understands deeply, and guides wisely.

It is also important to consider that, as the research shows, much of the information available online is unreliable or lacks proper context, with studies finding that up to 80% of forex and crypto-related advice on social media is misleading.

This is because advice isn’t just about information; it’s about context, tailoring solutions to your unique circumstances, and keeping you accountable and on track. An online video can’t analyse your budget, help you balance your short- and long-term goals, or stop you from making an emotional decision when markets dip.

Misconception 2: “I don’t earn enough to warrant a financial adviser”.

Many believe that unless they’re earning a six-figure salary or have millions to invest, advice isn’t for them. The truth? Financial advice is about helping you make the best decisions with the money you have now –  whatever that looks like.

Whether you’re starting in your career, juggling debt, or looking to buy your first home, advice can help you create a plan that fits your life and your budget. And suppose you partner with an adviser as soon as you enter the working world. In that case, you will realise the full financial benefits of small monetary contributions that accumulate and compound over time.

Misconception 3: “I cannot trust a financial adviser with my personal information and money”.

A lack of trust is a significant barrier. South Africans often say they’re reluctant to open up about money –  even with professionals. But a qualified financial adviser’s role is not to sell products; it’s to provide objective advice that is transparent and in your best interests.

In fact, what clients value most in advisers is integrity: being open, honest, and focused on their needs rather than just selling products. It’s understandable to feel cautious, but remember: your adviser is there to partner with you. Outstanding, trusted relationships, transparency, and clear communication are the foundation needed for building wealth.

Misconception 4: “Financial advice is for those in a different life stage than me”.

Another common belief is that advisers are only for people with large investment portfolios or those nearing retirement, with young professionals in their 20s and 30s often thinking they can ‘figure it out later’.

In reality, financial advice is most powerful when you start early. The earlier you start working with an adviser and making consistent contributions, the greater the impact will be on your long-term wealth creation and the better equipped you become to navigate life’s milestones and curveballs.

You are the expert when it comes to your own life and your family. The right financial adviser acts as a guide, coach, and mentor, helping you build and protect your financial dreams along your unique journey, whatever your income level or life stage.

At the end of the day, it doesn’t matter whether you’re just starting in your career or preparing for retirement – financial advice can have a profound impact on your future success and your ability to make your goals a reality. Much like checking your tyres before a long road trip, the right adviser helps you prepare before you embark on the next stage of your life journey. It’s about setting yourself up to travel further, with greater confidence, and knowing you have someone in your corner to keep you on track.

* Minnie is the CEO at Consult by Momentum.

PERSONAL FINANCE