Your finger is hovering over the keyboard.

Should you press “enter”, or not?

There is so much at stake and you’re just a bundle of nerves.

You are about to transfer what feels like a lot of money from your pension pot into your bank account to finally pay off your mortgage.

Is this the right decision?

You’ve done your best to research all your options online, you’ve canvassed friends and family for their opinion and you think you’re doing the right thing.

But are you?

There’s still an uneasy feeling in the pit of your stomach.

You close your eyes, click the mouse and pray you haven’t just made the biggest mistake of your life...

What would really give you peace of mind when you find yourself in this kind of situation is advice from a financial professional who deals with these issues day-in, day-out.

Reserved for the rich?

But good financial advice might feel out of reach.

After all, isn’t professional advice only for those with LOTS of money? Several hundreds of thousands, rather than a couple of hundred thousand or even tens of thousands?

If you’ve ever felt like that when making a big financial decision, you’re not alone.

Most would welcome advice but are put off by the prospect of paying for it - it’s a fundamental reason so many try to handle their finances on their own.

Maybe that describes you - but the reality is, even relatively modest amounts of money can deliver a healthy return on investment. (While bearing in the mind that the past performance of any investment is not necessarily a guide to future performance and investments can rise and fall).

But this kind of advice isn’t just for “the rich”, as many believe, but for everyone smart enough to seek it.

Do as the wealthy do

Wealthy people turn to advisers because they understand that when it comes to money matters, DIY is not enough.

Tax laws, pension regulations, the money markets: it’s extremely complex and often takes an expert to make the best arrangements to help to avoid making simple but costly mistakes that can empty the savings you have worked so hard for.

But the principal reason is that the right advice can help to grow your assets.

According to a 2017 paper by The International Longevity Centre, affluent people who took financial advice between 2001 and 2007 accumulated 17% more in liquid assets by 2012-14 than people who did not take advice.¹

They also added 16% more in pension wealth, compared to their non-advised peers.

But the charity didn’t just look at the affluent – it also tracked the financial results achieved by people “just getting by”.

And in percentage terms, those who took advice did even better than the affluent group.

They added, on average, 39% more in liquid assets than their peers who did not take advice.

And their pension wealth grew by 21% more.

On average, it added up to £39,895 in extra cash and savings.

Of course, no one can guarantee exact returns. But I don’t know anyone who would scoff at an extra £39,895 added to their bank balance.

Imagine the difference it would make to your retirement, your financial security or even your ability to sleep soundly.

As this post shows clearly, financial advice is even more crucial when money feels tight, or you are “just getting by”; a phrase which has taken on a very different meaning over the last year or so.

But with vaccines being rolled out, perhaps we can allow ourselves to consider the future beyond Covid and that could well include taking the step to take advice.

If that is the case, please do get in touch to find out how we can help you.

Posted by Bryan Parkinson

Topics: Insights & Advice, financial planning

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