Why financial advice is priceless
Do you remember the Mastercard ‘priceless’ campaign of the late 1990s?
These iconic adverts reminded the viewer, usually in a funny or thought-provoking way, that there are some things that money can’t buy.
These Priceless adverts came to mind when I reflected recently on the value of financial planning.
You see, a lot of what we do for our clients has a tangible value attached. But many other elements of our service can only be described as ‘priceless’.
Recent studies by the have found that those who used financial advice were better off than similar individuals who did not take advice.
A study originating in the United States concluded that the services provided by an excellent financial adviser have the potential to add around 3% each year to your investment returns. So we know that working with a financial adviser can make you wealthier.
The ‘Adviser Alpha’ study from investment provider Vanguard quantified the potential value added to an investor from services including rebalancing investment portfolios to manage risk, selecting low-cost investments and behavioural coaching.
When compared to the cost of ongoing advice, this added return through the provision of financial advice is excellent value.
But what takes financial advice from something valuable to something priceless? In my mind, it’s the less tangible benefits of what we do that make our services invaluable.
For example, we ensure things get done.
All too often, it’s easy to set financial goals (especially at this time of the year, when Resolutions abound), but fail to follow through and execute these goals as planned. By working with a financial adviser, we help life work by holding you to account and making sure these ambitions are realised.
There are some unquantifiable aspects of our role, which are undoubtedly priceless. We help our clients avoid the biases which arise a result of merely being human. These are biases which can derail even the most experienced and sensible investors.
One of the most important benefits our clients tell us we provide is delivering peace of mind. The ability to sleep well at night, safe in the knowledge that you have a plan for the future, is priceless.
Peace of mind ties in closely with the reassurance that you are making the right decisions, for you and your family.
One of the results of a financial plan includes being able to spend your time doing the things you enjoy, safe in the knowledge you won’t run out of money in the future, and your investments are in an appropriate place.
When the clients we work with can confidently provide financial assistance to adult children or other family members, they tell us this is priceless too.
If we believe everything we read in the press, working with a financial adviser is all about picking the best investment funds and being sold products to fill gaps. I hope this article shows you that, in addition to the tangible benefits of working with a financial adviser, it’s something that results in a priceless outcome too.