Philip Pearson
AUTHOR Philip Pearson| CREATED 14 Jan 2016
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Seven reasons why you need advice

What can an adviser do for you that you can’t do for yourself, and how much difference will they actually make to your savings and investments?

How often have you heard that heart-sinking phrase “If I were you...” and immediately decided to ignore it? Friends and family are happy to dole out advice – not all of it wise.

When it comes to your finances, who do you know who is in exactly the same financial situation as you? Each of us earns different amounts, owns different things and has their weaknesses, strengths and goals. Nor do we necessarily want to disclose any of it to friends or acquaintances.

That’s why it can be useful to have an adviser who you can talk to in confidence. Old Mutual Wealth research1 into long-term savings found that seeing an adviser regularly and having an income target in mind can result in a 53% increase in retirement income versus those who sought no financial advice.

The study also showed that those who took no financial advice had an average annual retirement income of £18,138. It rose to £24,794 with financial advice –and £27,736 with a target and financial advice.

Advice needs to take into account what is important to you and help you plan to retire when you want, with the lifestyle you want. Here are some of the benefits of discussing your finances with an adviser:

  1. Impartiality. You can gain an impartial third-party review of your situation. Your adviser is not emotionally involved in your family situation and can provide a fresh perspective.
  2. Expertise. An adviser will have expert knowledge and be able to guide you to make an informed choice.
  3. Experience. He or she will often have tax and trust knowledge that can help optimise your financial position. For example, divorce, separation, legacies and trusts all have tax implications which will need to be taken into account.
  4. Reviews. Regular reviews are needed to ensure you are on target to reach your financial objectives. Your adviser will establish a timetable for these.
  5. Perspective. Investment markets can be volatile in the short term. A financial adviser will provide perspective and guidance as to when to rebalance a portfolio. This helps to overcome the short-term risk of panicking when markets fall and selling at the wrong time.
  6. Suitability. An independent review of the whole of the financial market will ensure you have the right financial products to meet your needs.
  7. Goals. Measurable goals which will take you towards your financial ambitions – in terms of timescale, appetite for risk and family protection.

Convinced? Have a chat with your financial adviser about what they can do specifically for you. If you don’t have one and want to find one in your area, try Find an adviser.

1 Old Mutual Wealth, Redefining Retirement 2015.


Philip Pearson

Philip Pearson is a Chartered Financial Planner and partner at P&P Invest based in Southampton. He is an expert on investment and pension planning, and winner of the Small Business Media IFA Award for 2011.