It is easy to think investing is just a matter of picking the best funds to grow your money and with modern technology, the information to do this is accessible to all.
However Financial Planning is more than this. It starts by knowing a client’s goals and objectives and then setting up a plan to help protect and build your assets, making the most of your investments and securing the long term future for you and your family.
A financial adviser understands how using tax breaks can make an enormous difference to returns, and that different products benefit from different tax regimes.
Financial advisers also know that any investment return must be judged by the amount of risk taken to achieve it. High returns are often associated with high risk and an adviser will make a detailed assessment of your attitude to risk and capacity for loss before making any investment recommendations for you.
Advisers build investment solutions based upon investing in a range of differently risk rated assets, and to a certain extent of a contradictory nature to each other, to provide a balanced return rather than one that lurches between one that reaches for the stars or plumbs the depths. Through an ongoing control service, this keeps you on track to achieve your objectives by monitoring your investments and their performance, ensuring recommended asset allocations are retained despite market fluctuations, and that underlying funds are producing anticipated returns and performing well against other comparable funds. This can provide reassurance in times of market volatility such as we are experiencing currently with the Covid19 situation.
Cash flow planning is often part of the advice process and involves the projecting what an individual’s financial position will look like say in retirement, knowing what their asset values are and their likely expenditure. Is there enough money in my pot to enable me to help family, such as children with a deposit for their first property and retain enough for my own needs? Can I afford four foreign holidays a year?
Dealing with providers for a client is an onerous and time consuming task, the burden of which can be borne by Advisers who are accustomed to dealing with them regularly and for whom it is commonplace.
The legislation surrounding pensions has been altered on numerous occasions and is notoriously difficult to navigate your way through, and this is where professional advice can come into its own.
Many advisers offer a no commitment free first meeting to give some insight as to how they work and what you should expect. You could find that by engaging with a Financial Adviser over the longer term, the money you invest for the expert advice will be compensated in the achievement of your financial goals.
If you are looking for help with your investment or pension planning, please contact us for an initial no obligation discussion.