March 15th, 2017
For many, the belief is that financial advice is for the benefit of the wealthy. But how true is this, and can you really afford not to enlist the services of a Financial Adviser.
In an age of disillusionment with the financial services sector, a large proportion of the population may follow the new age route of DIY investing, and to try and be unbiased, this does come with some advantages; A reduction in fees, greater control over your investments and not having to spend the time talking to someone about finances, which being realistic wouldn’t be at the top of everyone’s to do list. However, there is a cost to doing this and a potential loss of benefits.
So, what can an Adviser do for you and why not follow the DIY option?
Irrelevant on the type of Adviser that you choose, whether that be Independent or Restricted, you are going to be gaining access to a professional whom is qualified to at least Diploma level, if not more, and has experience of advising clients on investing their hard-earned cash in to the markets.
Whilst receiving this advice, the Adviser will verify all of your needs and priorities, can assess the suitability of any existing investments, whether that be pensions or other investment vehicles, and ensure that they are invested in to the right place for you. When comparing this to the DIY option, how comfortable would you feel assessing your pensions given the impact that this could have on your financial future?
A good Adviser will also help you to avoid any potential slip ups that could be made in doing the investments yourself, such as paying more tax than you need to, taking too much risk with your investment, or even blowing your cash too soon in retirement and having to put up with the subsistence level of living that the State pension would provide.
As an example of the value of advice, research shows that the average UK income in retirement is £19,000 per annum. However, the average for those who set goals working with a Financial Adviser is £26,000. Put another way, by not working with a Financial Adviser, a client can potentially lose out on an extra 36.8% or as much as £157,000 over the course of a 21-year retirement (Old Mutual Wealth / YouGov survey, July 2014).
This is not a comprehensive list of benefits, but hopefully it does highlight to you some of the benefits of seeking professional advice, and why DIY may not always be the best option.
Please contact Duncan Craze, Financial Planner at Contractor Wealth for further information.
The value of investments may fall as well as rise and past performance is not a guide to future returns.
Financial advice is given by Contractor Wealth Management Limited which is an appointed representative of Intrinsic Mortgage Planning Limited and of Intrinsic Financial Planning Limited who are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register (http://www.fca.org.uk/register) under reference 440703 and 440718.
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