The value of things can be difficult to quantify sometimes, especially when it’s a service rather than a product. Perceived value isn’t simply based on cost, as there are various factors.
When weighing up how valuable something is to you, you might consider the convenience, confidence or the long-term impact it has on your life.
But, how much do you value financial advice? First, let’s address the financial impact.
Research from ILC-UK found those who received financial advice accumulated significantly more liquid assets and pension wealth than unadvised peers. The research compared a group of people who received advice between 2001 and 2007 with a group that didn’t. The two groups were then revisited between 2012 and 2014 – and the results speak for themselves:
- Those described as affluent and receiving advice accumulated, on average, £12,363 (17%) more in investment assets and £30,882 (16%) more in pension wealth compared to an affluent, non-advised group. That’s a total comparable gain of £43,245!
- The benefit was even larger among people earning a little less. The advised group accumulated on average £14,036 (39%) more in liquid financial assets and £25,859 (21%) more in pension wealth.
Evidently, taking advice can deliver real and measurable financial benefits. As always with financial planning, the advice provided and the potential results are ultimately dependant on your personal circumstances, goals and aspirations. We also have to take into account things like your tolerance towards risk and capacity for loss.
It’s all about asking the right questions and thinking long term:
- What exactly do you want to achieve, in five, 10 or 20 years’ time?
- What level of income do you need to support that goal or lifestyle?
- How much money do you need to support that spending?
The clarity and confidence this can provide adds significant value to the service.
It’s worth pointing out that not all financial advisers are equal. Some are not truly independent. Others might have varying levels of experience and qualifications. It’s always worth doing your homework and looking for social proof, such as reviews and testimonials.
There are several other benefits that add value, some of which you might not realise.
Having a dedicated professional looking after you
Our knowledge of the financial markets is second to none. This means you benefit from the best and most appropriate financial products, each tailored to your values and objectives.
We also steer clear of jargon, ensuring that you always know exactly where you are throughout your financial journey with us.
Personal and bespoke advice
There are lots of resources available to help you make financial decisions, especially online. But, apart from the challenge of assessing their legitimacy, how do you know if they are right for you?
That’s where the value of a personal relationship comes in. It sounds like such a simple thing, but we work to understand exactly who you are, what matters to you and what your hopes and aspirations entail. By building that relationship with you from the very start we’re perfectly positioned to formulate the best financial plan for you.
You’ll save time
Time is a precious commodity. With busy, modern lives, it’s understandable that some things in life can get left behind. Working with a financial planner can free up your time to focus on other things, such as your family or career.
Research from Hargreaves Lansdown proves convenience is something we’re willing to pay for. Amazon Prime, for example, has over 100 million members willing to pay for the convenience of next day delivery and having media on demand.
Takeaways are another good example: they found that in 2016 we spent an estimated £9.9 billion on takeaway food. That’s an average weekly household spend of £4.70. When you compare this to the typical supermarket shopping bill of £60, it means we’re willing to pay 8% more per meal for the convenience of a takeaway.
Managing your finances can be complex and time-consuming. The composition of an investment portfolio, and monitoring its performance and market fluctuations, all takes significant resources.
Peace of mind
You can’t really put a price on peace of mind. But, in our increasingly chaotic lives, knowing your finances are being carefully managed can really help reduce the burden, especially during current political and economic uncertainty.
Reduced stress lets you live in the moment, enjoying what’s happening around you; family, friends and new experiences. By engaging a financial planner, you shouldn’t need to worry about your future financial security.
How much do you value advice?
Coming back to the original point: when you consider the value of advice to you, you need to take a close look at what’s important. It could be the time saving, peace of mind, or the knowledge that you have a qualified, experienced professional working with your best interests at heart. It could be all three!
By understanding what adds value for you, we can help you get the most out of financial advice. If you’d like to discuss your situation, email us at admin@stongegatewealth.co.uk or give us a call on (01785) 876222.
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