How do we add tangible value?
Independent studies estimate Financial Advisers can add around 3% per year of additional return *
We summarise into 5 key areas where Financial Partners can add value to you:
- Financial “peace of mind” / Financial planning - more time doing the things you enjoy; let us do the worrying for you
- Minimising ”tax leakage” - Ensuring that all available tax reliefs are utilised
- Investment and risk management - Ensuring that you take no more risk than necessary, including use of behavioural science
- Helping drive good financial behaviours - experienced Financial professionals who will provide counsel and help avoid pitfalls such as selling out of investments during market turmoil
- Financial opportunities - Providing access to investments solutions that many clients may not ordinarily be aware of
A common view is that working with a Financial Adviser is all about finding the “best” investment. Whilst good investment management is certainly a factor, a sound holistic financial plan focused on your personal goals and objectives is the real key.
And if we come back to how a joined up plan of financial planning, tax optimisation and investment management could provide an additional 3% pa, what impact would this have?
Compound growth
Assuming £250,000 invested, an average of say 5% growth per year might be achieved. Over a period of 15 years, this would grow to £529,223. If you achieve that extra growth through working with a financial adviser that we looked at earlier and after their charges let’s say returns are 7%, - the same investment would grow to £714,341. Over £185,000 more! *
Remember, the key is a sound holistic financial plan focused on your personal goals and objectives, avoiding pitfalls such as selling investments at the wrong time, taking unnecessary risk or not minimising tax leakage.
(There will always be platform and investment solution charges whether you invest DIY or through an adviser)
https://www.advisorperspectives.com/commentaries/2015/05/29/capital-sigma-the-sum-of-the-various-sources-of-advisor-created-value
