17 August 2020
Savers who take advice are £47,000 better off
The famous American investor Warren Buffet once said “price is what you pay, value is what you get” *. This quote has become one of the most well-known phrases in the investment world ever since but it is also a concept we can apply to many aspects of our lives.
We can ponder it when we evaluate: -
- The job the tradesman has done for us during lockdown
- Or our own DIY attempts when we couldn’t get a tradesman quickly enough
- The costs for an Architect’s drawings before starting work on an extension or building project, which the drawings then let you visualise
However, when we apply this to our financial decisions, the thinking is less clear.
It has been said that the great British public are not particularly fond of discussing our financial affairs with our friends or colleagues (and in some cases, even our own partners). Yet we look across the water at our American counterparts and find they may be happy to discuss their investments in the portfolio of their 401k (that’s a pension to you and I) with their taxi driver on the way to the airport or a restaurant – it’s often a current and lively debate. Whilst this might not be the most advisable strategy, it does indicate a level of engagement in financial decisions and planning that maybe we could learn a thing or two from?
So how do we consider this in terms of assessing the value of financial advice? Well, one such study designed to assess just that, was conducted by The International Longevity Centre and published late last year**. It found that savers who received financial advice between 2001 and 2006 were able to boost their pension wealth by £31,000, while also experiencing a £16,000 uplift in other areas of financial wealth, as measured in the two-year period 2014-16. This meant that holding other factors constant, those who took advice were on average £47,000 better off a decade later than those that did not. Not a bad result.
In the current economic environment, it’s more important than ever that you’ve got someone who can help you look after your finances.
We no longer use a mangle to dry our clothes, send messages via fax machine, or rent videos from shops. Likewise, financial advisers no longer just want to “sell you some insurance” – they are focused on delivering the best outcomes for you and your family.
So what DO they actually do and why should you consider speaking to one?
Here are seven things you might not know a financial adviser could do for you:
It’s true that we can buy so many things ourselves online now without having to go through a middle man, but when it comes to something as important as our finances, it pays to go to an expert : the value often outweighs the price!
At Retirement & Investment Solutions, we are committed to providing you with professional, independent and transparent financial advice. Our advisers would be delighted to offer you a free (no obligation) consultation to discuss your financial position and give you the chance to assess the value for yourself. Please give us a call on 01786 431 703 or drop us an email at firstname.lastname@example.org to arrange your free consultation.
* Warren Buffet’s 2008 letter to the Berkshire Hathaway’s shareholders