5 reasons to have a Financial Adviser

In today’s uncertain and volatile economy, succumbing to financial stress has become all too common. In such a scenario, having a financial adviser in the UK is becoming increasingly essential. Financial advisers are professionals who can provide you with practical advice and guidance on all aspects of finance, including investments, savings, mortgages, and retirement planning. 

Below we highlight 5 reasons to have a Financial adviser help you with your personal finances and help you reach your financial goals.

Firstly, a financial adviser can help you navigate complex financial decisions. For example, investing in the stock markets can initially appear risky and complicated. However, a financial adviser can assess your financial situation and suggest the best investment options for your needs. They can provide unbiased guidance, taking into account your risk tolerance, tax implications, and diversification opportunities.

Secondly, a financial adviser can provide continuity in managing your finances. A financial adviser will work with you through different financial milestones throughout your life. They work to ensure that your financial plan adapts with changes throughout life including job changes, taxes, and even loans. This ensures that your plan continues to be relevant, and you can make crucial financial decisions confidently.

Thirdly, the tax environment in the UK is constantly changing, and keeping up with changes can be complex. A financial adviser stays abreast of these changes and provides guidance to ensure you comply with the law and maximise tax benefits.

Fourthly, a financial adviser can help clients prepare for retirement. A financial adviser can assess your goals and provide a plan to take advantage of available pension schemes, maximising the amount of income available to you in retirement.

Finally, a financial adviser can help you achieve a better work-life balance. With a professional handling your finances, you can focus on what really matters to you – whether this is family, career, or other passions. Stress is often caused by a lack of control over financial circumstances. Having a financial plan and adviser enables people to be more confident and take control of their financial life.

There are multiple reasons why you should consider having a financial adviser help you with your personal finances. The above are all worthy reasons, however arguably the most relevant reason isn’t listed and that is to achieve peace of mind. Financial advisers help you to live a financially secure life. 

Research undertaken by Vanguard, best known for their index-tracking funds, found that financial advisers can boost investors returns by up to 3% each year. In addition, a report by International Longevity Centre (a think tank) in conjunction with Royal London found that consumers who received financial advice between 2001 and 2007 were £40,000 better off than their unadvised counterparts by 2012-2014.   

Of the report’s many findings, perhaps the most of interest is the revelation that the lower income group benefited from financial advice even more than the affluent people did. Following financial advice, the average saver in the lower income group had their pension pot boosted over a decade by 24% (£35,054), compared to savers in the same wealth class who didn’t receive any advice. In the ‘affluent’ group this difference was more modest, though still dramatic –affluent people who took advice had £24,266 more after 10 years than their unadvised counterparts, an 11% boost.   

However you read the above, the positives of receiving financial advice are clear. 

If you’re thinking of seeking financial advice, our multi award winning team of Chartered Financial Advisers can help you. Initial meetings are free and enable you, and us, to understand how a financial adviser can help you in your current position.