Why Aren’t You Taking Financial Advice?

September 20, 2022

There seems to be a common misconception that getting financial advice is expensive. Having an IFA is a luxury reserved for those with bucket loads of cash, a huge pension pot and a whole property portfolio in their armoury.

Being too expensive is just one of the reasons that your Average Joe is not making the most of Financial Advice.

But is this the truth? Is financial advice too expensive? And what other objections are there? We take a look.

“Financial Advice is too expensive”

According to Money Marketing, 47% of people (out of 4,000 they interviewed) said that they didn’t take financial advice because it was too expensive. But more interesting than that was the fact that 40% of those asked didn’t even know how much a Financial Adviser may charge for their services.

This has us scratching our heads – how can something be too expensive if you don’t know how much it costs?

Costs vary from service to service and firm to firm, and everyone has their own idea of what is ‘too expensive’ so this is a difficult one to confirm or deny. What we can say, though, is that any costs associated with engaging the services of an IFA more than pay for themselves in the long run – we would know!

One study compared the financial benefits of seeking financial advice over a 10-year period. The combined benefits over this decade equated to approximately 2,400% more than the cost of the advice itself. That’s pretty impressive.

Financial Advice is a long-term game

At the end of the day, many of us are saving with the primary objective of having a great nest egg for our retirement. If you are just getting stuck into your career this could feel like a very long way off but the sooner you start saving, the better off you will be.

Also, the longer you are benefiting from the advice of a financial adviser, the more insignificant the costs will feel. And, on top of that, those who took professional advice more than once benefited even more.

“I’m not wealthy enough”

As it turns out, this couldn’t be more wrong. In fact, people with fewer assets are the ones who can benefit the most from getting a little advice.

When you don’t have all the big pension pot, properties and investments ticking you over, your money needs to work at its highest capacity. Advice from a professional will help get you there.

“I don’t know where to find one”

Maybe you just simply don’t know where to start looking for a financial adviser. Not every adviser is going to suit you and your needs so a little research will be required.

Money advice websites are a great place to start. Unbiased.co.uk, for example, will ask you a few simple questions and then match you to a suitable adviser in your area from their directory.

There is nothing better than getting a recommendation from a trusted source close to home. A lot of people ask friends, family, and colleagues who they use. Ask around everyone you know and see if they have any recommendations.

“I can do it myself”

Loads of people believe they can manage their finances adequately enough, and in some cases that is true. Although you can never replicate the knowledge and experience you get from a Financial Adviser.

We have trained for years to learn the most effective way to make money work hard. We have come across every scenario possible and overcome the most challenging situations.

Sure, you may not need to worry about challenging situations right now, but it’s nice to know you have an expert on hand if any were to arise. You never know what may happen in the future and if you’re starting early, there is plenty of time for change.

Another thing to ask yourself before deciding you are the best person to look after your finances: Do you have decent knowledge about pensions and investments? Do you have your finger on the pulse when it comes to the fast-moving financial world?

It’s a financial adviser’s job to do stay on top of legislation and regulation changes. They will advise adjustments in response where appropriate too. Just how much time and motivation can you dedicate to your finances?

GreenSkyWealth could be the IFA for you

We’re not one of those financial advisers who are only after the big bucks. We believe that financial advice should be accessible to everyone. We especially love it when people start thinking about their futures early on in their career.

If you are looking for an IFA who has your best interests at heart, can set you up for a comfortable future and is willing to answer any questions you may have – get in touch. We would be happy to have an initial chat to discuss how we can help you.

This article is for general use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be or constitute advice.