Why Smart Advice Matters
What can an adviser do for you that you can’t do for yourself, and how much difference will they actually make to your savings and investments?
The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.
Tax planning is not regulated by the Financial Conduct Authority.
How often have you heard that heart-sinking phrase “If I were you…” and immediately decided to ignore it? Friends and family are happy to dole out advice – not all of it smart!
When it comes to your finances, who do you know who is in exactly the same financial situation as you? Each of us earns different amounts, owns different things and has their weaknesses, strengths and goals. Nor do we necessarily want to disclose any of it to friends or acquaintances.
That’s why it can be useful to have an adviser who you can talk to in confidence. Old Mutual Wealth research* into long-term savings found that seeing an adviser regularly and having an income target in mind can result in a 53% increase in retirement income versus those who sought no financial advice.
The study also showed that those who took no financial advice had an average annual retirement income of £18,138. It rose to £24,794 with financial advice –and £27,736 with a target and financial advice.
Advice needs to take into account what is important to you and help you plan to retire when you want, with the lifestyle you want. Here are some of the benefits of discussing your finances with an adviser:
- Impartiality. You can gain an impartial third-party review of your situation. Your adviser is not emotionally involved in your family situation and can provide a fresh perspective.
- Expertise. An adviser will have expert knowledge and be able to guide you to make an informed choice.
- Experience. He or she will often have tax and trust knowledge that can help optimise your financial position. For example, divorce, separation, legacies and trusts all have tax implications which will need to be taken into account.
- Reviews. Regular reviews are needed to ensure you are on target to reach your financial objectives. Your adviser will establish a timetable for these.
- Perspective. Investment markets can be volatile in the short term. A financial adviser will provide perspective and guidance as to when to rebalance a portfolio. This helps to overcome the short-term risk of panicking when markets fall and selling at the wrong time.
- Suitability. An independent review of the whole of the financial market will ensure you have the right financial products to meet your needs.
- Goals. Measurable goals which will take you towards your financial ambitions – in terms of timescale, appetite for risk and family protection.
*Old Mutual Wealth, Redefining Retirement 2015.
Ablestoke Financial Planning LLP’s Registration Number is OC367708 and place of registration is England. The Company Registered Office is Admirals Offices, Main Gate Road, The Historic Dockyard, Chatham, Kent, ME4 4TZ.
Ablestoke Financial Planning LLP is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register under reference 440703 and 440718. The term partner is used to refer to a member of Ablestoke Financial Planning LLP.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Buy to let mortgages are not regulated by the Financial Conduct Authority.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.