Financial Advice in 2016
Many people still hesitate when it comes to seeking professional financial advice in 2016. There are still many preconceptions and indeed misconceptions that the financial services industry carries from years gone by. Sitting in the back of people’s minds, frequent mistaken beliefs include – ‘sales driven profession’, ‘commission motivated’ – to name just a few common opinions.
The financial services industry as a whole has gone through many changes in recent years. Importantly individuals who provide financial advice are now required to hold a higher level of qualification than ever before, and equally as important to note is the removal of commission for advisers and adviser firms. Firms who describe themselves as Chartered must now have at least 50% of advisers holding the ‘Chartered’ status to keep this title. This has had the desired effect in producing a profession of highly qualified and passionate individuals who are not sales or commission driven. The new charging structures are completely transparent and fee based which enables clients to see exactly how much they are paying for financial advice, in product charges and enable them to get a real value for money service.
To try and put a figure on the value an adviser can add to your portfolio and your life is difficult as everyone’s circumstances are different, however Vanguard (one of the world’s largest, and client owned investment management company) recently released a figure of 3% in net returns per year. The figure is net because charges and fees have already been removed, so it represents the ‘real’ percentage. This figure is obviously not guaranteed and could be more or indeed less, but it is an illustrative amount to demonstrate the value in financial planning. Also it is worth keeping in mind that sound financial advice can save you potentially very large sums of money in tax, by helping you utilise perfectly legitimate allowances and tax free investments that you might not otherwise have been aware of.
As time goes on it would be great to continue to change public perception of the industry, to demonstrate the very real changes that have been made over the past few years and for more people to start seeing the real value in professional financial advice.
We are currently offering a free pension review to the first 10 people to contact us by 10th August 2016. This offer is subject to qualifying conditions.
Please contact us by phone: 01908 523740 or email firstname.lastname@example.org.
Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.