Why financial advice matters more than ever when investing

The rise of DIY investing is reshaping the financial landscape. While this trend is encouraging, it also highlights the critical role advisers play in guiding clients through complexity and behavioural pitfalls.

Technology has made investing accessible, and younger generations are embracing it. This is good news. There’s no better time to start saving and investing than now. However, DIY investing often works only for relatively simple products, such as tax-free savings investments (also known as tax-free savings accounts or TFSAs). As life stages evolve, so do financial needs. Marriage, education funding, and retirement planning introduce layers of complexity that most individuals cannot navigate alone.

Advisers do more than pick funds. They act as behavioural coaches, helping clients avoid sentiment-driven decisions and the ‘switch itch’, which is the tendency to switch between funds due to market noise rather than adhering to a long-term financial plan and investment strategy. Financial advisers also ensure diversification, a critical element often overlooked by DIY investors. A portfolio concentrated in equities may be suitable for a risk-tolerant investor, but it may be inappropriate for someone who is risk-averse. Advisers match solutions to risk profiles, ensuring alignment with long-term goals.

Momentum’s research* shows that clients with advisers accumulate 9.5 times more investment value than those without. This isn’t just about returns, it’s about structure, discipline, and planning. Advisers begin by understanding the client’s comprehensive financial picture, including income, expenses, family needs, and estate considerations. Only then do they design a plan that integrates products and solutions into a coherent strategy.

Platforms like Momentum Wealth simplify complexity. They consolidate products and solutions, whether local or international, into a single view, enabling better conversations about goals. Features such as family aggregation on our offshore platform could reduce costs, which is an important component for generational wealth planning, while robust administration ensures seamless trading and settlement. These capabilities help advisers to focus on what matters most: client relationships and strategic guidance.

Fees are often scrutinised, but the real question is value. Platforms and advisers provide services that clients cannot replicate on their own, such as global access, consolidated reporting, and behavioural coaching. These elements can help protect clients from costly mistakes and position them for long-term success. In short, fees should be seen as an investment in peace of mind and financial security.

DIY investing is here to stay, but it’s not a threat – it’s an opportunity. Advisers who position themselves as partners and educators will thrive. By combining human insight with platform capabilities, you can deliver the personalised, holistic solutions clients need in an increasingly complex world.

We offer diverse wealth-building investment and retirement solutions, with access to local and global investment markets. For a personalised investment solution to support your clients on their journey to financial success, visit our website here.

This article is based on a podcast with the Finance Ghost. Listen to it here.

*Momentum Group Financial Advice Research Report July 2025

Momentum Wealth is part of Momentum Metropolitan Life Limited, an authorised financial services (FSP 6406) and registered credit provider. Momentum Wealth (Pty) Ltd is an authorised financial services provider (FSP 657) and part of Momentum Group Limited.