Financial advice: the pros and cons

Regardless of your financial status or situation, good financial advice at key stages of your life can be a worthwhile investment. However, many people may be reluctant to take on financial advice because of the costs involved, or they just think that it is simply too intimidating.

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The benefits of financial advice

Financial advice at key stages of your life such as marriage, childbirth, moving house or retirement can save you money. A report published by the International Longevity Centre identified that those who sought professional financial advice between 2001 and 2006 ended up with a total boost to their wealth of £47,706 in 2014/16.

Taking financial advice may provide you with more protection if things go wrong. Financial advisors in the UK must be qualified and are supervised by the Financial Conduct Authority. Obviously, it is important to do your due diligence as a client, but once you have found a trusted professional advisor, you will feel more confident and reassured that the decisions you make are right for you.

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Handling your own financial planning yourself can be very time-consuming and possibly confusing. Why spend hours or even days on your financial planning when an advisor can handle this for you? A financial advisor will have access to a wider range of products and choices and will have the experience and knowledge to know what is right for you now. Advisors often use financial advisor software that automates much of their work, giving them more time and power to work for you.

Disadvantages of financial advice

One of the most popular barriers to financial advice is the cost. Financial advisors can provide guidance on a range of issues, such as mortgages, tax, equity release, pensions and investments. The fees for their advice will differ depending upon the topic and the complexity required. A professional that is experienced with financial advisor software should be able to utilise powerful tools that help keep costs down while offering the most up to date information.

Although financial advice can be beneficial, there is a risk if you choose the wrong advisor. Many people aren’t confident that financial advisors have their best interests at heart. Do your research and shop around when you are looking for financial advice.

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