- On August 15, 2017
On the surface of it financial advice may seem expensive, especially when your purchase is initially intangible.
However, a new report will make for interesting reading for anyone considering financial advice who is unsure of the value.
According to the International Longevity Centre – UK (ILC-UK), people who take advice are on average £40,000 better off in the long run than those who do not.
Drilling down, the independent report found that those who had received financial advice between 2001-2007 had significantly more liquid financial assets and pension than their unadvised peers by 2012-14
The document examines the impact of financial advice on two groups – those described as ‘affluent’ and people who were ‘just getting by’.
The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and £30,882 (or 16%) more in pension wealth.
While the ‘just getting by but advised’ group accumulated on average £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth.
This research demonstrates what we’ve long known through our work with our clients at Faron Partnership and clearly shows that good financial decisions with a good financial adviser can make a significant difference to your financial well-being.
Avoiding Poor Decisions
These gains also reflect the financial advantage in avoiding poor decisions which can have a detrimental effect on your wealth.
This is particularly noticeable at times of a market downturn when fear drives people to forget their long-term goals and take short-term decisions to sell investments when history has shown that it’s just the time to ride out the storm.
Our role is often educational, while offering mentoring and guidance. It’s much more than just product-related advice.
The ILC-UK report also included some other Interesting findings. Notably, people from both groups who took financial advice were far more likely to save and invest in the equity market than those who did not.
The ‘affluent but advised’ group were 6.7% more likely to save and 9.7% more likely to invest in the equity market than the equivalent non-advised group.
The ‘just getting by but advised’ group were 9.7% more likely to save and 10.8% more likely to invest in the equity market than the equivalent non-advised group.
And the report also found that 9 in 10 people are satisfied with the advice received from their financial adviser, with the clear majority deciding to go with their adviser’s recommendations.
So, if you’re weighing up the pros and cons of using a financial adviser it’s important to keep in mind the long-term benefits when considering the short-term cost. Making the right decisions now could pay dividends for your future financial well-being.
Remember, the value of your investments can go down as well as up. Past performance is not a reliable indicator of future outcomes.
For a free consultation about your financial needs call 0118 974 0159 or email firstname.lastname@example.org.