What is the value of financial planning?

Category: Financial Planning

We can get the answer to just about anything in a few clicks. However, the difference between getting a solution and the one which is right for you can be huge. This difference is where the value of good advice is.

The truth is everybody would probably benefit from financial advice in some way. Saving and investing is complicated, and most of us need help making decisions on asset allocation, diversification, and retirement vehicles, to name just a few challenges.

A report in 2017 revealed how getting financial advice helped people have more money. It says those “who work with a financial planner are an average of £40,000 better off”.

Another report found those who had paid for advice had a pension pot nearly double that of those who had not. It also found they had more cover in place to protect their families in case of the worst happening.

One of the biggest investment providers in the world, Vanguard, found there to be seven components of the extra value expert advice can bring:

  • Asset allocation: The overwhelming factor in determining investment performance
  • Rebalancing: Keeping a portfolio’s risk and return profile on course
  • Lowering costs: The one factor guaranteed to improve returns
  • Behavioural coaching: Avoiding the costly mistakes of giving in to fear and greed
  • Tax-efficiency: Minimising the amount HMRC takes away from performance as possible.
  • Spending strategy: Crucial to maintaining the value of a portfolio in retirement
  • Total return versus income: Making the most of a portfolio for both income and capital

Helping people build more life savings means they are on the way to getting more out of life. There are plenty of studies around the world which echo these findings. 1 2 3 4 5 6 7

Another benefit of advice is how confident you might feel about your finances. Research carried out for the Financial Conduct Authority (FCA)  found those “who choose to employ a financial adviser receive the emotional benefit of peace of mind that they are doing the best they can to meet their financial objectives”.

Getting more from your money matters but getting more from life matters more

There is a lot of truth to the old saying, “If you don’t know where you are going, any road will take you there.”  Many of us get so caught up in growing our money we never think about why we are doing it. There should be a purpose to having money and building your wealth. But what money cannot do is create this purpose in and of itself.

Eventually, you might be able to live comfortably off the money you have saved. After a lifetime of working hard, your return on your investment might be security in retirement. That is when it is time to stop focusing on your return on investment and start enjoying a better return on life.

The sooner you can make this shift into the mindset of getting more out of life, the better. Life is to be enjoyed, and there is always a balance to find between saving for tomorrow and enjoying today. Enjoying life along the way can make the transition into retirement even more comfortable. Instead of struggling to replace work with leisure, you will be ready to pour even more of your time and energy into what matters to you.

Start by asking yourself, “What is my money really for?”

Financial planning is not a one-off activity for a set point. It is a journey spanning a lifetime. We work with you to create a plan aligning your life, your money, and your values. In our experience, these elements rarely align on their own. Any financial decisions you make should help you get more out of life as well as from your money. We love helping people find that meaning and put their lives at the centre of the financial planning process.

Would you like to see how we could help you get more out of your money and your life? Feel free to book in a free no-obligation chat here or get in touch.


Your investment may fall as well as rise, and you may not get back what you put in.

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