If you’re considering wealth management but are completely new to the process, you likely have some preconceived ideas, and possibly reservations, about what working with a financial adviser is like. Like a lot of the industry, there are plenty of myths and misconceptions surrounding the financial advice service, some of which can be off-putting to those who are new to the process. In this blog we address dispel some of those myths and illustrate what you can expect working with a financial adviser to look like.
You must be wealthy
One of the most common misconceptions about working with an adviser is that you have to be in possession of a lot of assets or money to work with one. Whilst this might have been true 20 to 30 years ago, it is certainly not the case anymore. Financial advisers not only advise on managing wealth, but also on debt management and prevention, saving, mortgages and estate planning; services that are applicable to the average individual, not just the wealthy. Moreover, not all advisers charge fees at a percentage of assets, some now charge hourly or by subscription. Making a one-off payment to sit down and discuss financial planning or any of the issues listed above can be very beneficial in the long run, ultimately saving you money. Fundamentally, the aim of a financial adviser is to help you gain wealth and improve your financial position – insight from an adviser can be beneficial to anyone in any financial position.
Another frequent reservation sometimes held by those who are considering employing the services of a financial adviser is that there might be communication issues as a result of technical language or industry jargon. People are often concerned they might not necessarily be able to follow the advice of their adviser as the process might be overly complicated or inaccessible to those who are unfamiliar with financial terms. This could not be further from the truth. The financial advice process is designed with the client’s accessibility in mind; it is broken down and presented in a clear and comprehensible way that makes it digestible even for those who have a very basic understanding of the world of finance. If you are ever unsure or confused about something, ask your adviser straight away and they will be able to clarify for you.
It’s not worth the money
Understandably, a lot of people are hesitant to spend their money on advice from an adviser when they feel they could learn how to invest and manage their assets themselves. Whilst it is always good to develop your understanding of personal finance, it is unlikely that any amount of googling will be a substitute for the knowledge and insight of an experienced financial adviser. Not only do advisers often pay for their own fees several times over in financial gains or savings, but they also help you to prevent making any mistakes which could cost you a lot more. Investment in any capacity is a risk and paying to drastically reduce that risk for your financial security and peace of mind is a price worth paying.
Lose autonomy/control over finances.
For those who prefer autonomy over their finances, the thought of putting control of them into someone else’s hands can be daunting and unappealing. Even clients who prefer to take more of a backseat position in the management of their assets would probably be averse to feeling as if they have minimal control over their finances. With a financial adviser, this is not something to be concerned about at all. The process is very much team-orientated and absolutely nothing will be invested or decided without your approval. You can be as involved as you wish with your asset management and your adviser will ensure regular meetings to assess your objectives and check you are happy with how everything is going.
Only for those over a certain age.
One of the most frequent misconceptions concerning financial advice is that it is only for those who are older and are nearing retirement or are thinking about managing their inheritance. Again, this could not be further from the truth. Working with an adviser from a younger age means you can benefit from their services for longer, not just towards the end of your life. Whilst retirement is one of the life events that trigger the need for financial advice for many, there are other occasions where an adviser can be incredibly useful. If you are looking to get a mortgage or invest a large sum of money from an inheritance, then financial advice can be imperative to avoid making costly mistakes. There is no minimum age where advice concerning finances is not beneficial; the younger you start considering your financial future the better.
Whilst some might have a very specific idea about the kind of individuals that make use of the services of financial advisers, the reality is that there are people at every stage in life with varying amounts of wealth who benefit from the process every day. The most important part of working with an adviser is finding one who is right for you and who specializes in the area you require help with, be that investment, estate planning or retirement. If you would like to take the first step towards achieving your financial objectives with the help of an adviser, contact us today.
This communication is based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity