How valuable is financial advice?

financial advice

Where money, investments and wealth are concerned nobody sets out to make the wrong choices. The question many ask themselves is how valuable is financial advice?

In fact, can anyone assign a value to advice that could make a significant improvement to future financial prosperity?

This is a dilemma faced by all of us from time to time. As we reach certain milestones in life, we assess our situation.

Questions, questions, questions

Have we saved enough; do we have the right income protection; is the mortgage deal right for our circumstances; and can we make plans to retire when we want? 

With so much advice and many so-called “experts” to be found on TV and online, it’s tempting to apply the Do-It-Yourself ethos to money.

However, the maze of products and providers can soon seem bewildering. 

The reality is that a carefully structured financial plan can make a positive difference to your situation – no matter what stage of life you’re at.

This is where independent advice can be valuable. 

Let the numbers do the talking     

Whatever product or service you are think about buying it’s prudent to do your research. That’s good practice whatever the industry.

Where money and investments are concerned, you have an advantage in that those entrusted to give advice are now thoroughly regulated. You can speak with an independent financial adviser with confidence.

Still, it’s always a bonus to see some hard facts to back up any claims.

Figures vary, but the trend is always the same – taking financial advice will mean cost savings and greater returns in the long term.

The “Vanguard Study” as reported by Investopedia shows that clients who choose to work with a good financial advisor should receive on average a 3% increase in the value of their portfolios each year.

While 3% does not sound a lot, compound interest will mean that over time portfolios grow significantly – especially over ten, twenty or more years.

Don’t let emotions override logic!

Interestingly, the Investopedia article highlights how using a financial adviser is most valuable during times of volatility.

When markets are prone to fluctuations it’s hard keeping a cool head. People let emotions take over. There is often a momentary lapse of judgement – something that could affect investments detrimentally in the long term.

Good financial advisers will act as behavioural coaches. They will offer experience, guidance and make level-headed recommendations.

Advice should be based on real knowledge of the markets and assisted with thorough reference to historic data.

After all, markets have always shown a resilience given time.

The true value of financial advice cannot be summed up in a few words, or by an arbitrary cost. It’s about engaging with someone who digs deep to understand motives, risk and objectives.

Independent advice from Logic Wealth Planning

Logic Wealth Planning aims to give clients peace of mind.

There are no quick fixes or easy wins. For us, it’s all about helping you make the right financial decisions for your circumstances.

Please call us on 0808 1234 321 or email info@logic-wp.com to enjoy the benefits and value of genuinely independent financial advice.

Please be aware the value of investments or income from them can fall as well as rise. We are here to help you make informed decisions as you put important things in place for you and your family.

* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.