Weighing Up the Cost of Financial Advice

The cost of investing in a financial advisor can seem daunting, especially to those who are unsure of the benefits that an advisor can bring. Unfortunately, this leads to many questioning the worth of spending on professional advice when they could “do it themselves”, however we all know it’s not that simple. Finance management can be a cruel game if played incorrectly.

It is for this reason that we so often make crucial yet avoidable financial mistakes, which is why it’s so important to weigh up the true value of financial services. Investing in a financial advisor may initially appear costly, but when weighed up against the gains professional advice could bring, can be more than worth it.

In fact, recent findings by the International Longevity Centre UK estimated that those who receive financial advice are £40,000 better off than their peers who do not. How so, I hear you ask? While we could talk all day about the reasons, we’ve selected three of the top benefits that investing in a financial advisor can bring you.

Preparing for the future

Everybody understands the importance of saving for the future, but not everyone knows how to do this efficiently, particularly when preparing for retirement. In fact, current statistics suggest that 60% of 45-54 year olds within the UK are unaware of how much they have saved for retirement.

This is where a Financial Advisor can help. They’re best placed to keep track of exactly how much you’ve saved, advising you on how much extra you should be contributing on top what is already given through your employment and the government. Additionally, having access to an advisor can prevent you spending too much of your pension too soon. This has become a particularly common mistake to make since the introduction of the new pension freedoms back in April 2015.

At present, we exist in a society where unfortunately inflation is rising. Many are failing to realise the impact that this can have on savings. In fact 37% of Brits between 18-65 are unaware of how to safeguard savings enough to keep things steady, much less grow them. Your financial advisor should be able to guide you through the best options to ensure that your savings continue to accumulate, regardless of the political/economic climate.

All in all, receiving financial advice can help you prepare for the future so that you can comfortably settle into retirement without worrying about your money.

Reviewing your finances

Making a financial plan appears a fairly simple process which many of us opt to create ourselves. The issue that hinders the effectiveness of a self-created money management plan is that we get too caught up in everyday life to review and change it. However this is a key part of a financial advisor’s remit, particularly here at AGL. We meet with our wealth management clients quarterly, to ensure that you never veer from your investment goals.

Services such as our wealth management programme can prevent you from making crucial yet avoidable financial mistakes through creating a financial vision document. This regularly reviewed document educates clients on how financial decisions interact and covers steps which need to be taken in preceding years to ensure you make the best decisions.

Preparing for the unknown

Nobody likes to discuss plans that are in place should the worst happen, but it is so important that we do in order to prepare for it effectively, particularly financially. Should the worst happen, the last thing that you want is your assets tied up in red tape for months to come. If your assets total more than the inheritance tax threshold, your legacy could be hit with tax implications.

We keep abreast of legislation changes as they happen. Therefore, we are always aware of the most efficient way to plan for the future and prepare for the unknown. We present you with the most tax efficient options, allowing you to make the final decision.

Whilst most of us are aware of the merits of budgeting and planning. Long-term investment strategy and planning for a comfortable future is always best approached with professional guidance. Our senior wealth managers have over 20 years of experience in the financial services sector, bringing a host of knowledge to your portfolio. This knowledge can ensure that you plan in the most productive way and get to enjoy the fruits of your labour later in life.

To find out more about how we can help you, visit aglwealth.com