Financial planning can sound daunting. We get it! Pension consolidations, family protection, inheritance tax planning, savings and investments: where does it start and stop?!
Working with a Financial Adviser means giving someone access to one of the most sensitive parts of your life, which can be emotionally and mentally challenging for a lot of people. However, whatever stage of life you’re at, and wherever you are in the world, managing your money is important.
The right adviser can make the complex, simple. In doing so, Financial Advisers can empower financial resilience and help you to meaningfully map out your finances in a way that takes account of your short, medium and long term goals.
So what’s stopping you from appointing a Financial Adviser to help you to take control of your financial future?
Here are 10 myths about working with a Financial Adviser which may stop people from seeking professional financial advice:
Despite what you may think, you don’t have to have millions of pounds in your bank or savings account to start working with a Financial Adviser. No matter how much money you have now, building a financial plan can ensure that your money works as hard as possible for you, both now and in the future.
Investing money is however only one outcome of financial advice. A Financial Advisor can also deliver family protection products, inheritance tax planning and even help you to build or consolidate your pensions as part of a robust retirement plan.
Financial Advice therefore, is much more than just about investing money: it’s about inspiring and empowering you to take control of your finances, no matter how much money you have.
When it comes to spending behaviours, everyone is different – even your Financial Adviser will have experienced overspending at one point or another.
Financial Advisers are human beings, and while it is important that you take time to find the right adviser for you and your family, it is also worth understanding that they are impartial, experienced and non-judgmental.
And for total peace of mind, no matter what you spend your money on, Financial Advisers will keep your information strictly private and confidential.
The only stupid question is the one not asked.
A good Financial Adviser will be passionate about educating and coaching their clients by carefully explaining every step taken to build your financial plan, including the reasons behind their recommendations.
Financial Advisers want you to become financially resilient and will encourage you to ask as many questions as is required for you to achieve your financial goals.
That may well be the case! But, equally, what if we told you that the advice may even be for you spend more?
Your Financial Adviser will work with you to fully understand your current spending habits however they will do so in order to build appropriate and meaningful recommendations which serve to meet your long-term financial goals.
Not only will your Adviser look at your spending habits as they are now: they will also project your future income and spending, all with a view to keeping you on track to achieve your financial aims.
Your Financial Adviser will deliver recommendations for a diversified, balanced and bespoke financial plan based on all of the information you share throughout an early fact-finding exercise.
During this early stage of your relationship, your Adviser will determine several key elements of risk pertaining to your financial situation. More specifically, what level of risk you are comfortable with, what level of risk is required to achieve your financial planning goals and, importantly, what level of risk you can realistically afford to take. All these ingredients are taken into account when formulating a suitable financial plan which is aligned specifically to your goals and aspirations. This information is vital and will go a long way in building the foundations of your investment strategy.
They will also help you to understand how much money should be held in short-term savings, and for what reasons.
This is not a necessity: it is a choice.
It is of course important that you consider how you wish for your advice to be delivered. The effects of the Covid-19 pandemic have seen the use of video-call technology skyrocket and you may be comfortable receiving advice this way.
However, given the sensitive nature of financial planning, you may instead prefer to deal with an adviser who is based locally, enabling face-to-face meetings to take place with ease.
Financial Advisers work with you to formulate long-term plans which help you realise your specific goals. Products are merely the tools to get you there.
Professional advice can ultimately save you time and help you to achieve those financial goals. It is important however that you ensure that you understand the associated costs of receiving such advice – you need to know what you’re paying for, and why. Your Adviser should be open and upfront about their fees, giving you peace of mind that there are no hidden costs at any point along the way.
Some Advisers have fixed initial fees; some charge an hourly rate for their advice; some charge based on a percentage of the total assets they advise on; and others offer the option of all three. Also, when setting up protection plans such as Life Insurance or Income Protection, your adviser is often paid commission by the provider they set the life cover up with. The commission they receive should be outlined to you in pounds and pence, and you may also have the option of paying this directly to the adviser yourself, which in turn could reduce the premium you pay.
Your financial affairs and personal circumstances don’t have to be complex to merit working with a Financial Adviser. No matter how simple your life is, there may be many ways to better structure your financial affairs.
Changes to tax and legislation are ongoing and working with a Financial Adviser can help you to make any necessary short-term changes to your financial plan in order to protect your long-term goals.
Believe it or not, it may very well be the case that your financial plan involves no investment at all. This depends exclusively on your personal circumstances and financial objectives, which will be defined based on a very deep dive of your short, medium and long term goals.
As we’ve detailed above, there is so much more to creating a robust financial plan than simply investing your money.
A good Financial Adviser will help you to take control of your finances and your financial future, educating you and empowering you to take ownership of one of the most important parts of your life.
Understanding what drives you and what you want your life to look like in the short and longer term should be an exciting and ongoing journey, with you firmly in the driver’s seat.
Finding the right Financial Adviser is important however. Their personality can be the difference between your financial planning journey being exciting, empowering and more than just about numbers.
Importantly, your adviser can help to improve your emotional wellbeing by delivering financial resilience and confidence through access to expertise, comprehensive and bespoke financial planning and a sound understanding of financial products.
No matter what your financial situation is today, a Financial Adviser can help you to build a path towards financial security for you and your family.
Disclaimer
Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
