Why go for financial advice?

There are many occasions in life where financial advice can make a big difference. Most people who contact a financial adviser do so when facing one or more of these decisions:

• Starting a pension
• Looking to get on the property ladder
• Investing
• School fees planning
• Starting or running a business
• Tax planning
• Planning for retirement
• Taking an income in retirement
• Planning life after retirement
• Estate/inheritance tax planning
• Getting a windfall

Other reasons may include moving abroad, getting divorced, arranging for yourself or a relative to go into long term care, or any situation in which you may need to take out a financial product, such as a mortgage, or insurance protection.

How can a financial adviser help you?

A financial adviser will do much more than simply tell you where to put your money. The whole point of advice is to make your money work for you and help you achieve your goals in life.

Here are seven things you might not know a financial adviser could do for you:

1. Personal and tailored advice – an independent financial adviser (IFA) will find a solution that’s right for you, rather than just hand you an off-the-shelf, one-size-fits all solution. They’ll ask you questions about you, your job, family and lifestyle to get a full picture of who you are and what you really need – whether you’re a first-time buyer, a business owner, starting a family or preparing for retirement.
2. Knowledge of the market – an IFA isn’t tied to a particular bank or provider, which means they can research the whole market to find the right product for you. Because of this, they could have access to products that are more suitable for you than those available online.
3. Peace of mind – a financial adviser will find out what financial products you already have, even if you’re not sure where the paperwork is. They’ll look at what financial support your employer provides and confirm what you’re entitled to from the state. They’ll tell you where the gaps in your finances lie so you only buy what you need to. And they can advise you on things like tax and trusts, which many of us can find complex. Talking to a financial adviser will give you the peace of mind that all your needs have been considered.
4. Inflation – even though inflation has now fallen to 1.7%, long-term it still poses one of greatest threats to your finances. Finding an investment strategy that keeps pace with price rises is essential to make sure your savings hold their value. This is where financial advice can prove really helpful. A financial adviser will learn about your investment goals, including your attitude to risk and capacity for investment loss, and recommend a plan that’s right for you.
5. Practical help – when you start to take your retirement income or if you ever need to claim on any of your protection plans, your adviser will help you with this – whether that’s making the initial claim or following up with any paperwork for you. It’s an adviser’s job to support you throughout your partnership with them – and that includes the aspects that can often be more difficult for you during an emotionally challenging time.
6. Proactive support – a financial adviser can provide ongoing support to make sure you’re on track to meet your objectives. For example, you may need to alter how much you’re saving in your pension or how much income you’re taking from your pension because your circumstances change. Or you may need to make a claim on your protection policy. Rather than leaving you to manage this yourself, your adviser can make the relevant changes so your plans are always valid and up-to-date.
7. Save you time and money – Good financial planning and advice will guide you towards the best and most cost-efficient solution for you. Whether this means saving money or helping you fund your future through investment, seeking professional advice will save you the time and energy of trying to filter through the various options and products that are available to you online.

Does financial advice really pay?

A person who has taken financial advice is, on average, £47,000 better off than someone who hasn’t taken advice. This is according to a study published by the ILC-UK which shows the value of financial advice and how it has significantly increased the wealth of those taking advice

The study was carried out over several years to get an extensive view of people’s finances and measure the long-term impact. It looked at two groups of people to see if they were better off with or without advice. The first group were ‘affluent’ and the second group considered themselves as ‘just getting by’. Both groups ended up with an average increase in their wealth of over £47,000 more than those that didn’t take advice.

This important research also shows that financial advice is not ‘just for the wealthy’, as both groups saw a significant increase in their wealth.

Not only can financial advice add real value to people’s financial circumstances, but it can also have additional non-financial benefits. The ILC-UK study also showed that people who took advice were more confident and better prepared for the future. Getting advice improved people’s financial literacy and delivered greater control, reassurance and ultimately peace of mind.

Need advice? Kellands can help.

So, a well put-together financial plan with regular reviews by a professional independent financial adviser really could make a difference to your financial future.

Choosing an independent financial adviser is probably one of the most important decisions that you will have to make during your lifetime. Right from our first initial consultation, we seek to work with you to build a long-term financial strategy that is designed to meet your current and future financial objectives.

So if you require financial advice for the first time or are seeking a second opinion, why not talk to us.

Please note:

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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