How to know if you should be seeking financial advice

Joe Phelan's picture
Should seeking financial advice in the near future be pushed to the top of your agenda?
Computer keyboard with an 'advice' key

It is vitally important that you understand your financial situation, especially when preparing for retirement. But do you need to seek financial advice? Would you benefit from professional guidance, or should you go it alone?

Do I need advice, or should I do things on my own?

When it comes to managing your finances, the do it yourself vs. take advice debate is one that many investors wrestle with at some point.

DIY advocates might argue:

- You can take out investments, pensions, mortgages and insurance yourself online without the cost of advice.
- It’s better to be in control of your own destiny.

The counter argument:

- Advisers have years of specialist education and experience.
- The cost of a mistake can be huge, and if you DIY you have no protection under the Financial Services Compensation scheme.
- Just a small improvement in how your finances are managed should more than offset the costs.
- Managing your own finances (properly) can be extremely time consuming, and VouchedFor reviews prove that even the most financially literate people still utilise advisers.

Ultimately it’s your own decision, but we recommend that you at least speak with one or two well-rated IFAs before making it.

What is the value of financial advice?

Based on thousands of client reviews, we would summarise the value of advice as:

- Confidence that your money will stretch far enough to meet your future plans.
- Increased investment returns and income.
- Reduced risk and greater financial protection.
- Saved time.
- Peace of mind things have been done properly.
- Protection through the Financial Services Compensation Scheme (in the event of bad advice).

It’s difficult to quantify the value advisers add. One adviser may generate higher returns than another, but that does not necessarily mean they are better at their job. It could, for example, just be because they deal with clients who are happier to take risks. Hopefully by reading clients’ reviews on this website, you’ll get a better feel for the benefits advice can deliver.

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