It won't surprise you to learn that we believe that financial planning can make a significant difference when working to make your lifestyle and retirement goals a reality.
Financial planning is an ongoing process that evolves and adapts to changes in personal circumstances over the long-term, often spanning several decades. From giving you the confidence to live your life, to the pounds and pence returns that are generated, there are countless reasons why we believe clients benefit from advice.
To put a figure on it, insurer Royal London commissioned the International Longevity Centre (ILC) to undertake detailed statistical analysis to measure the effects of taking professional advice.
The evidence was clear – advisers help people save more
Spanning 10 years, the study found that customers who had sought financial advice were, on average, £47,000 better off than those who had opted to take care of things themselves.
Given the fact that this research included the 2008 financial crisis, this is an exceptional achievement – and clearly highlights the value of financial advice, especially in times of crisis.
According to the ILC report, financial advice could also improve your mental wellbeing.
Having regular contact with your planner can increase your financial knowledge and understanding. This can build confidence in your long-term plans and make you feel more in control of your finances.
Along with the clear financial and mental wellbeing, here are five additional benefits from having a long-term relationship with a financial planner.
5 benefits of working with a financial planner
1. Optimise asset allocation
Selecting the right blend of investments is the most important investment decision. Knowing how much to invest in equities, bonds, cash, and the like is crucial to your long-term financial health.
Invest too cautiously and you won’t get the returns you need; invest too aggressively and you could lose sleep.
A financial planner will help you define your financial objectives and invest taking your goals, time frame, and appetite for risk into account.
2. Keep your portfolio aligned
To maintain the correct mix of investments, every so often it will be necessary to rebalance your portfolio. This involves selling some of the investments and using the money to top up the others.
A financial planner will review the portfolio objectively and rebalance as required. This ensures that you maintain the right mix of investments and don’t take too much risk.
3. Help you stay calm and carry on
Investing can provoke strong emotions. It’s perfectly natural for investors to feel anxious, especially when circumstances cause increased market volatility.
At times of uncertainty, having a financial plan you trust can help you stay the course – regardless of what life and the markets may throw at you.
A good financial plan will allow for market downturns, including severe and prolonged ones. So, when you have a plan in place that you’re comfortable with, the best thing to do when markets fall is precisely nothing.
A financial planner will act as a voice of reason between you and an expensive mistake. They will provide sound, objective advice, helping you stick to the plan and remain invested.
4. Save on money with efficient tax planning
Taxes can be a major drag on your investment returns, so tax planning is an important part of what a financial planner will do for you. They will advise where you can make tax savings and help you avoid paying too much tax.
Your planner will advise the tax planning solutions that are most suitable for your particular circumstances, and long-term goals.
A professional planner will help you work out what’s right for you based on your tax position. They will consider the tax rate you pay now and consider the tax implications when you come to withdraw the money.
5. Make sure your withdrawal strategy is also tax-efficient
How you withdraw money from your investments can have a significant effect on your overall return. Where should you draw from first? Which investments should you sell?
A financial planner will create a withdrawal strategy for your investments. When the time comes, they will make sure that your income strategy is as tax-efficient as possible and that you continue to hold the right mix of investments.
Get in touch and talk to a financial planner
Experts in finance, tax and investments and experienced in helping people with their financial future, we can help you understand and manage your finances.
We’ll work to form a long-term relationship with you. So, you can be confident that your financial planner will be by your side to advise you through life, whatever surprises it may hold.
If you’d like to find out more about how a financial planner can help you meet your life goals or would like to speak to someone about your financial plan, get in touch. Email email@example.com or call us on 0800 055 6585.
Please note: This article is for information only. Please do not act based on anything you might read in this article.
The information contained in this article is based on the opinion of LEBC Group Ltd and does not constitute financial advice you should seek independent financial advice before embarking on any course of action.
The Financial conduct authority does not regulate taxation advice.
The value of investments and income from them may go down as well as up. You may not get back the original amount invested. Past performance is not indicative of future performance.Back to News & Views