By Rosemary Bigmore
PAYING someone to help with your money can feel counterintuitive, but expert advice can add real value to your financial future - particularly at times in your life when circumstances change.
Here are some of the reasons why financial advice can be worth it.
1 Your money could grow faster
It’s all too easy to make mistakes with our money when we’re investing it. That’s because we have psychological reactions to the stock market rising and falling that can cause us to act illogically. We also find it hard to invest in line with our own risk appetite, and don’t always realise the amount of risk we’re taking with our money.
Financial advisers can take the emotion out of investing, as well as help you define your aims and help you to stick to a personalised plan that’s right for your needs.
2 You could save tax
Tax is complicated, and no-one wants to pay too much of it. Structuring your investments to ensure that you don’t pay unnecessary tax on investment gains and making the most of tax breaks from the government to encourage your pension saving can be seriously good for your wealth. As well as helping with this, a financial adviser can help ensure that your family don’t lose the bulk of your legacy to inheritance tax when you’re gone.
3 You could put your family on a more stable footing
When your life changes, your financial plans should too. So whether you’ve just got married, had a child, or experienced another life change, a financial adviser can help ensure that your financial plans evolve along with new goals.
Whether it is planning ahead to fund private education or university, or ensuring the correct protection products are in place to provide an income if you are unable to work, a financial adviser can help to put your family on a stable financial footing.
4 An adviser can help you plan a career change
Staying in one career for life is less and less common, with many of us relocating overseas, working part time, or becoming self-employed. All of these changes have financial implications, and a financial adviser can help with changing pension plans, re-mortgaging your home and dealing with shifts in income.
Financial advice may involve an initial outlay, but as you can see, employing an expert to ensure you use your money wisely can pay dividends over the long-term.
Investments may fall as well as rise in value and you may not get back what you put in.
This document is based on Old Mutual Wealth’s interpretation of the law and HM Revenue and Customs practice as at 10/2019. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change.
Quilter plc products and services are provided through our two divisions: ‘Advice and Wealth Management’ and ‘Wealth Platforms’. For a list of our companies and their regulatory authorisation details visit our website at quilter.com. Our business is registered in England and Wales. The content of this promotion has been approved by Old Mutual Wealth Limited, part of Quilter plc. Old Mutual Wealth Limited is registered in England & Wales under number 1680071. Authorised and regulated by the Financial Conduct Authority. Financial Services register number 165359. VAT number 386 1301 59.