The Value of Financial Advice

As I have realised over the years, all clients have different requirements, expectations and financial situations. Therefore, it isn't easy to generalise the value of financial advice. So, I decided to split down the various areas where I add value and can help you plan for your financial future.

Expertise and experience

I have been a financial adviser for many years, building up an array of qualifications, expertise and experience. While there is value in theoretical knowledge and practical expertise, it is only when you combine the two that you get the actual value. Over the years, I have come across a considerable number of financial situations, many of which have required creative thinking and the ability to, coining a phrase, think outside the box. This helpful attribute comes with expertise and experience, and while it may come naturally to me, the value to my clients can be immense.

An unbiased approach

As an individual, looking at your own finances, investments and plans for the future, whether conscious or unconscious, it is impossible to escape a degree of bias. You may have your favourite investment vehicles, shares and fund managers, sometimes leading to a blinkered approach. Whether as a relatively new client or someone I have worked with for many years, while appreciative of your situation, it is essential that I look at your scenario and potential solutions with an unbiased eye.

Flexible short, medium and long-term planning

There are many elements to financial planning, which can be grouped as short, medium and long-term. A short-term aim may be to buy your own home; in the medium term, you may be looking to start a family, while in the longer term, retirement planning may be uppermost in your mind. These are just examples of different scenarios because, as mentioned above, we are all different, and crucially, it is essential to be flexible.?

While I always take a long-term approach to client advice, the introduction of the Consumer Duty regulations has made this a legal obligation for those in our industry. As I have done for years, I continually revisit client scenarios to see if there is room for improvement and any changes which need to be made to better their financial situation.

Market contacts

Over the years, I have met some helpful and engaging individuals in the financial services industry, many of whom have become friends. This has allowed me to build up a significant number of market contacts that continue to prove very useful when looking for competitive rates, specific products or market insight. In this industry, we are continually learning, with new products, services and regulations emerging regularly. My widespread network of contacts, taking in different subjects, expertise and experience, has allowed me to enhance the services that I provide to my clients.

Looking at the broader picture

When I initially meet a new client, they typically come to me with a specific financial issue that needs addressing. In the early days, it is essential, from my point of view and to fulfil my regulatory obligations, that I have a detailed understanding of the client's situation. Commonly referred to as "Know Your Client", this allows me to take a look at the bigger picture, which can often help to solve the initial issue and more.

For example, when it comes to investments and tax relief, these can often be maximised by using the allowances of spouses or partners. Something as simple as an ISA investment can, over the years, build up a significant tax-free investment portfolio. This is just one occasion where looking at the broader picture can be hugely beneficial in the future. Then we have additional issues such as retirement planning and inheritance tax - the list goes on.

Tax planning

Carrying on from the comments above, many of us are inclined to discount tax relief and tax breaks, some of which are available on a "use it or lose it" basis. It is only further down the line that clients realise the long-term value of these allowances, but unfortunately, we can't travel back in time. Tax planning is the umbrella that shields your investments, finances and estate, leading to potentially significant cost savings in the longer term. We don’t often get help from the tax authorities, so, where possible, use your allowances and tax relief.

Emotional support

Looking at it from a personal and professional point of view, the Covid pandemic is something none of us will forget. It also highlighted an area of financial advice which many people previously failed to recognise; emotional support. While the pandemic was a rare occurrence, many clients were genuinely concerned about their long-term finances and how they would survive.?

I have experienced several financial tremors in my career and have seen how markets react, adapt and change. Therefore, this experience allows me to provide a degree of emotional support to clients, whether this means adapting their financial strategy or a relatively brief discussion to put their minds at rest. Being a sounding board is all part of the service.

Summary

In reality, it is impossible to put a value on financial advice because it can mean very different things to different people. I have highlighted the various areas in which I add value, both practically and theoretically, to allow clients to look to the future with a degree of confidence.?

The world of personal finance is littered with misunderstandings, rumours and counter-rumours, which can impact our core financial beliefs and, in some cases, confidence. Part of my role with clients is to address these issues with a straightforward, unbiased approach. Consequently, I make myself available for clients whether they wish to discuss specific financial issues or require a degree of guidance and reassurance - feel free to call me.