In this article, I will delve deeper into the value and benefits of financial advice and what this delivers for clients.
In my last article, I told you that those who take financial advice could be £41,099 better off on average. If you haven’t read the article, click here
So, what are the values and benefits of financial advice:
- We make sure that we utilise as many of the tax reliefs and allowances each year when making payments into plans meaning that our Clients’ money grows faster
- We look at how to utilise tax allowances for withdrawals. Such as using the personal, the savings and the dividend allowances. This means that our clients do not pay more tax than they need to and can make their money go further
Help clients understand what they have got
- Client often have no idea how much they have invested, the charges, where they are invested or if they are on track to achieve their financial goals. We provide structure and direction to clients finances with a clear plan to assist in achieving their goals.
Reduce portfolio risk
- We use modelling tools to attempt to maximise returns for a given level of risk/risk tolerance and volatility. We outsource our investments to specialists in this area. This means that we capture better potential performance whilst minimising the downside.
Conduct due diligence on all of our clients’ investments
- We conduct thorough and robust due diligence and research on all of the funds and products that we use. There are over 9000 investment instruments in the UK. We save our clients the time of researching them all whilst giving them peace of mind that we have selected the most suitable product and investment for them.
We hold our clients hands through difficult times
- Divorce, death, business transitions are all stressful time. We are there for our clients through these difficult times and they value our experience and expertise to assist and guide our clients through them. Our skills and expertise can also ensure in times such as divorce, assets are split fairly.
Select a cost effective platforms
- Wraps and platforms can add real value and make portfolio management easier. We make sure we select one that fits our client’ needs to make their life easier and we can spend more time on the activities that they value.
Pre-funding investment dealing
- We deliver the value and benefits of financial advice by looking at the most efficient platforms to make sure costs and time delays in investments are minimised. This could save lots of money over the years and is something often missed by investors themselves.
Manage clients’ income in retirement
- Pension freedoms are a great opportunity and we help clients to understand the options and the risks (many of which may be hidden). This could add many years income from clients fund (and save tax and other costly mistakes).
Help you to avoid common mistakes
- Sticking to a plan can be very hard when markets are substantially up or down. Research shows that investors may be losing up to 2% per annum by falling into common traps. We assist in avoiding these.
- Understanding our clients objectives and personal situations allows us to be alerted to opportunities such as new products, tax changes or better strategies. This means that our clients do not need to stay abreast of such changes themselves.
Keep your portfolio up to date
- Portfolios today are very different to those 10 years ago and in 10 years, I am sure they will be very different again. We make sure our client’s portfolios are kept up to date with developments over the years. These changes can boost efficiency which can compound into greater returns over the years.
Help work out and achieve clients’ financial goals and objectives
- We ask questions in a relaxed, structured way. We help clients understand risks and opportunities and we build a clear plan for their future. Like anything, without a long-term plan finances are unlikely to head in the right direction. Our job is to give clients confidence in their future.
Assess your risk profile
- Risk is a complex subject with many dimensions. We will help clients navigate and understand risk to ensure the solutions we recommend meet their needs. This means that our clients are invested appropriately and in line with the level of risk they are comfortable to take. As well as the risk they can afford to take.
- We will help reduce the administration of our clients’ plans as well as help them to understand what they need to keep and what they can bin. We will manage application forms and enquiries and provide valuations and updates.
Understanding income in the future
- People find it hard (or impossible) to project returns, costs, inflation and their income needs into the future. We use powerful but simple tools that will illustrate this for them. Seeing a picture of their cash flow can put into perspective how their plans are progressing and the impact certain choices may have. This is key in the value and benefits of financial advice.
Passing wealth to the next generation
- Using trusts, wills, and other strategies we can make sure our clients money ends up in the hands of the people they want, when they want. This gives our clients confidence that their wishes are met, their loved ones protected and business secured
Keep your investments on track
- Once we have established our client’s risk profile we manage and review their investments to make sure they stay on track over the months and years. We assess risk profile regularly and the risk of our portfolios to make sure they are aligned
We liaise with clients’ accountants and solicitors
- Working closely with accountants and solicitors means that we are all aligned in the best interest of our clients. We can make use of all of the opportunities available. Which takes advantage of the value and benefits of financial advice as well as these other professionals.
We make the complex simple
- While we are experienced and well qualified we never forget whose money we are looking after. We ensure our clients understand their financial plan. We make complex ideas simple and easy to understand so our clients feel empowered.
We maintain ongoing relationships with our clients
- To ensure that we are always in touch and are kept abreast of changes in your circumstances we meet with our clients on a regular basis.
This has gone some way to exemplify the value and benefits of financial advice for clients however, they are endless and the list could go on.