By HELEN COOKE Managing Director, PBS Confidential Ltd
THE VALUE OF
Financial Planning in uncertain times
I’m sure that many of us started 2016 with the ‘traditional’ glance at the past before looking forward and making plans. Many of these plans will have financial implications; whether it’s the purchase of a new home, the impending arrival of children or grandchildren, retirement or changing jobs, or simply your plans for making the most of the annual holiday allowance.
So, when facing these important financial decisions would you think about seeking expert financial advice or would you go it alone? My own view is that the help of a financial expert could make all the difference in the world. By using a Financial Adviser you should end up being financially better off than you would have been had you not used one - it’s not just about investment growth, although we all aim for that! No, it’s more about making sure that your plan has the right framework, is robust, practical and realistic!
So why do people chose not to work with a financial adviser?
“Your friends' opinions will have been formed by their own experience and their own agendas and although
you’ll hear plenty of bragging about successes, very few are prepared to admit to their mistakes.
”
Cost. You would be right to expect to pay for expert financial advice and the potential price can put people off. However, the cost may not be as bad as you think.
Of course the first thing to remember is that no good adviser will make a recommendation based on what they can earn from it! My clients agree up-front what fees they are going to pay and what I am going to do to earn it. Often it's
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more convenient (for the client) for fees to come via an investment provider or insurance company, but that doesn't affect my recommendation.
Whatever the issue, your adviser should be able to work with you to reach a solution you are happy with. However, even before you get to the stage of paying a fee, bear in mind that it is very rare to find an adviser who isn’t prepared to offer you at least one meeting free of charge. This will allow them to establish the basics and give you an idea of the services they can offer which might provide a solution to your requirements. They will be able to give you an estimate of the cost at this stage as well.
Trust.
Deciding to entrust personal information to a stranger can be hard. I’m the first to admit that the banks and Independent advisers have not covered themselves with glory over the years, and we continue to see the ripples of these institutional problems when we read the papers, local and national! The good news is that a (long overdue) raft of regulatory and procedural changes have gone a long way to resolve these issues and there is much greater protection for the consumer. The latest stage in this process was the launch in November 2015 of the Channel Islands Ombudsman who provides a formal recourse for those clients who are unable to resolve issues with their current or previous advisers.
Above all, remember that not all advisers are built the same. The vast majority are just like you – honest, hard-working and conscientious, living with the same concerns as you, protecting their savings, funding their children’s education or caring for an ailing parent. They will understand the need to juggle finances and day to day responsibilities and will appreciate the value of time and money saved through the use of a well thought out plan and that all important second opinion.
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