I often hear people ask “Do I Need A Financial Advisor?”

Well for many people, the answer is yes, because quite simply that relationship may be one of the best investments that you will ever make.

I’ve identified over 20 areas where I believe we add value to our clients, but I’ve just picked a few to give you a flavour in this article, and they include:

  • Goals and planning

  • Behavioural coaching

  • Investment oversight

  • Risk assessment and management

  • Tax planning

  • Confidence building

So, let’s look at these in turn:

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1) Goals and Planning

I’ll just give you an example, when Alice in Alice in Wonderland, asks, the Cheshire Cat

“Would you tell me please, which way I ought to go from here”

and the cat replies “That depends a good deal on where you want to get to”

And this is the same for all of us.

The first stage in achieving, your long-term financial goals is to have a larity of what they are. This is a key area of our expertise and we get help discuss, plan and agree a detailed and realistic plan for your financial future.

We ask you questions in a relaxed, but structured way. We help you understand the risks and the opportunities available and we build a clear plan for your future.

Without a long-term plan your finances are unlikely to head in the right direction, so our job is to give you confidence in the future.

Most people find it hard or impossible to project returns, costs, inflation and their income needs into the future. We use powerful, but simple cash flow tools that will illustrate this for you in a straightforward manner.

Foreseeing a picture of your future in regards to monies in and monies out can really put into perspective how your plan is progressing.

2) Behavioural Coaching

Research shows that investors may be losing up to 2% each year by falling into common traps

Humans have evolved to survive over many thousands of years. Unfortunately we have also learned some bad habits and vices in that process.

Many of them we are not even aware of, we buy high and sell low, we value the near-term, more than the long term, we hold onto investments that have fallen, we believe information that reinforces our own views.

Part of our role is to act as a coach helping you avoid these mistakes and guide you to a better future. Research shows that investors may be losing up to 2% each year by falling into these common traps. So we can assist you in avoiding these.

We hold your hand through difficult times, such as divorce, death, redundancy and business sales, and making wills are all stressful times.

We have experience and expertise and understanding to assist and guide you with all of these. We are there when you need us most.

3) Investment Oversight

The first thing that comes to mind is don’t put all of your eggs in one basket. A well-diversified portfolio can deliver the returns that you seek with a lower amount of risk.

Often I see with my clients, or new clients that come on board, is that they take far too much risk than they need to or they’re comfortable with. So we use sophisticated tools to help you achieve these returns that you need within the risk tolerance that you are comfortable with.

Reducing costs and efficiency can compound up to big differences over the years. Again, not so great, maybe in the short term, but long term over many years it makes a huge difference.

We have access to portfolios across from as little as 0.4% each year, versus the average managed fund of 1.37 per year and that comes from money management itself.

Wraps or platforms can add real value and make portfolio management easier. We can make sure we select one that meet your needs. We make sure the platform is cost-effective, flexible and reliable making life much easier for you.

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4) Risk Assessment and Management

There is a pernicious risk that few investors are aware of and this is called Sequence of return risk. It can have a massive impact on how long your pension fund, for example, in the worst case it could reduce your income by nine or more if you get it wrong.

We can help you plan and take simple and effective steps to mitigate that risk and give you a longer lasting retirement income. Risk is a complex subject with many different dimensions.  We will help you navigate and understand risk to ensure the solutions we recommend meet your needs. We use our expertise, structure questions and have a conversation with you to guide you to a solution that meets your needs and objectives in a way that you understand.

5) Tax Planning

We make sure that we use all of the applicable tax reliefs and allowances each year for you thus saving tax and helping your money grow much faster. Estimates suggest that this could boost returns by at least 1% each year, so on £100,000 investment this would be a £1,000 a year. In practice I’ve seen it much more than this.

And what about student debt and the rising house prices? These have put huge pressures on the next generation. It is little surprise that parents and grandparents want to help;

  • But what are the most effective and secure routes to do this?

  • How do you gift but retain family control?

  • What are the tax implications of gifts?

  • Or house purchase?

I often see people incur a tax liability when selling assets and or gifting money in the wrong way, which results in a larger tax bill of tens of thousands of pounds or more. So we can help with all of these questions to provide the confidence and value you seek.

And what about passing on your estate effectively to the next generation?

This can be done by using simple trusts, wills, and other strategies that can make you a money end up in the hands of the people that you want, your loved ones.

Poor planning can see up to 40% of your hard-earned savings, or investments paid to the tax man. Again costing you and your loved ones tens, if not hundreds of thousands of pounds on larger estates.

We give you peace of mind that you are wishes are met, you are loved ones protected and they get more of your estate when you pass.

6) Confidence Building

We can spot opportunities much easier for you. Understanding your objectives allow us to be alert to opportunities, new products, new services, new tax freedoms, better strategies, we are your eyes and ears in the ever-changing tax legal and product environment and we will always keep you on track.

Once you have established your risk profile, we manage and review your investments on a regular basis to make sure you stay on track over the months and years ahead.

We assess your risk profile on a regular basis and the risk of your portfolio to make sure that you are in tune with each other.  Making the right choices about your pension is so important for a happy retirement.

Again, I see this being done wrong so many times.

For example, the freedom to draw your pension benefits how you wish was introduced back in 2015. Initially, they were trumpeted as offering great choice for consumers, but over time it has become clear that planning and managing income from a pension pot, that may last 35 years or more is far more complex than initially thought. I you know this because I am a pension specialist so I do come across this every single day.

Also understanding sequential risk and asset class returns versus inflation, establishing a sustainable withdrawal rate, managing life and health longevity and planning cash flow over four decades is well beyond most investors, especially as they move into later life.

We will simplify the process for you and be with you for the long run to ensure you have peace of mind and don’t run out of money in your retirement years when you need it most.

We have built up our expertise over many years and are fully qualified Financial Advisors, regulated by the Financial Conduct Authority or FCA.

We have a statement or professional standing issued by an independent professional body and we are required to maintain minimum standards and conduct regular and continuing professional development. Keeping up to date with all financial matters allows us to give you the best possible advice.

So in summary, whilst many people prefer to manage their own financial planning either because they enjoy it or want to save on advisor costs which is absolutely fine (I’ll cover this in another article / video). However, there are many more people that can’t or don’t want to because they don’t have the time or the inclination to do so, especially when it comes to the area of advice they need to address is a complicated one and the cost of getting it wrong vastly outweighs the cost of engaging with a good financial advisor.

why work with a financial adviser

And remember it costs absolutely nothing to find out and have an initial discussion with an advisor.

And for those of you who would like it, I have also created a handout of why work with a financial advisor, which is free for you to download, just click the image or Click Here.

Watch the “Do I Need A Financial Advisor?” Video

Listen To The Podcast

To speak to an IFA, contact Tony Thomas on 07585 592494, email tony@ttwealth.co.uk or book a discovery call by clicking the button below.