Research has shown that professional financial advice can make a real difference to your money. Those who use an adviser see their money grow faster than those who don’t, even when you consider the cost of advice. Seeking financial advice and putting into practice the financial knowledge you gain can increase your returns by as much as 25%, compared to going it alone, concluded Legg Mason, following a survey of investors.
Advisers add value for their clients in several key areas, including asset allocation, risk management, costs, tax planning, investment and total return. Another area where advisers can show their worth is in behavioural finance: the ability to prevent clients from making common investment mistakes.
People who choose their own investments tend to take less risk than those who take advice, which can have a significant effect on returns. A good adviser will take a considered view on higher-risk investments and search for higher returns in areas perhaps most DIY investors wouldn’t, while at the same time ensuring that clients are adequately diversified to withstand any markets shocks.
As well as growing your money faster, there are a number of other important advantages to having a tailored financial plan.
Speaking to an adviser makes you think seriously about what you want to achieve with your money. Whether it’s buying your dream home or paying for your children’s university fees, a financial planner will look at your goals and help devise a realistic, achievable plan to turn them into reality.
Taking advice from a professional means you will have annual reviews to track the progress of your finances towards your goals. This allows you to adapt your plan as your situation/needs change or make changes if you feel like you want to take a different course.
The UK tax system is complex and can be difficult to manage, a small oversight could cost you thousands in unnecessary tax. A good financial adviser will be able to navigate you through the system and make sure your finances are as tax-efficient as possible, minimising your current and future tax liability.
The array of investment and pension solutions is vast! An adviser will do all the time-consuming research, presenting you with a range of investment options that are most suitable to you and your goals. They will also highlight the pros and cons as products may look the same but can differ greatly.
In summary, it is clear there is no substitute for expert knowledge when it comes to financial management, and working with a financial advisor is always a sound investment.
Our independent financial advisers have over 100 years of experience and are highly qualified, with three of our advisers having achieved Chartered Financial Planner status and Fellowship of the Personal Finance Society (PFS).
For further information or to arrange an initial no-obligation consultation at our offices or another mutually convenient location, please telephone us on 01772 729 742, or alternatively, simply fill out our online enquiry form and we will give you a call to discuss your requirements.