Why working with an adviser can help to boost your wealth

Category: News & United Kingdom

While you may already understand the benefits of sound financial advice, research has shown that working with an adviser could provide considerable value when it comes to your financial and emotional wellbeing.

Most notably, a study produced by the International Longevity Centre (ILC) with the support of Royal London, underlines this.

It revealed that UK adults who took professional financial advice between 2001 and 2006 enjoyed an average increase in the value of their assets by roughly £48,000 after 10 years, compared to those who took no advice.

The same study also found that the benefits of advice were particularly significant for those who developed an ongoing relationship with their adviser.

Furthermore, leading investment fund managers, Vanguard, found that working with an adviser can add around 3% in net returns on investments when following its framework of advice for wealth management.

As you can see, the value of solid financial advice is well worth it. It can help you make the right investment choices and shape your behaviours when it comes to investing.

So, continue reading to discover how working with a financial adviser could help you to boost your wealth.

An adviser can ensure you have a robust plan in place

One of the most prudent aspects of working with an adviser is that they’ll ensure you have a robust financial plan in place. Like most things, when you establish a plan, you can start working towards specific goals, rather than leaving things to chance.

This is particularly important if you have assets in both the UK and Australia. Without a plan, you may not benefit from the synergies that exist between the two jurisdictions, or you might make costly mistakes that could damage your long-term financial prospects.

With a particular set of goals in mind, a plan can help you fully understand what you want to achieve, your priorities, and how your existing assets or income could aid you in meeting these targets.

This could make it far easier to deliver on your aims and aspirations. It’s about working smarter, not harder.

They may help you avoid financial pitfalls

Financial services, planning, and investing can often be tricky subjects. They are full of complicated jargon, and there are strict regulations that differ from one area of finance to another.

For instance, you may not be taking full advantage of your tax opportunities or optimally managing your inter-country wealth.

Making tax mistakes can often be costly and irreversible, and could even erode your investment or savings gains over time. This is why working with a planner with specialist knowledge in both the UK and Australia can add real value, particularly when it comes to navigating rules between the two nations.

As for investing, creating a well-diversified portfolio aligned with your attitude to risk can help you to work towards your life goals. Without this advice, you could find yourself taking too much or too little risk, or with a portfolio that is not as tax-efficient as it could be.

A financial adviser will assess your attitude to risk and help you understand which investments best suit you and your current and future circumstances.

Advice could help you manage your financial behaviour

Overseeing your investments isn’t the only area an adviser could help you excel – they may also assist you in managing your financial behaviours.

This is important, as unhealthy financial behaviours could hamper your progress towards your long-term goals. It’s easy to make knee-jerk, emotional decisions when it comes to your wealth – and a financial adviser will help you to manage these emotions and avoid potentially costly emotion-led decisions.

Indeed, according to Vanguard, the behavioural coaching provided by financial planners generated the most value to investors in both the UK and Australia, compared to other factors such as tax planning and asset allocation.

They can review your plan and adjust it as necessary

Professional advice doesn’t just improve your investing ability but can also help you put a robust plan in place that gives you an unclouded vision of your financial future.

You may already have a rough idea of where you want to end up, but planning with an adviser can bring your financial milestones into focus, and help you keep refocusing as events change.

Also, as your life changes, so can your plan. For example, if you plan to emigrate at some point, this is a big step that takes detailed planning.

Without a concise plan devised with the help of an adviser, the impact of getting this move wrong could have detrimental effects on your financial wellbeing.

They could offer an extra pair of eyes and act as a financial confidant

Above all, working with a financial adviser can simply provide you with a financial confidant and a sounding board when it comes to managing your wealth.

Indeed, a study from Royal London revealed that working with a financial planner could leave you more in control of your finances, more financially secure and stable, and more confident about the future than someone who went it alone.

This is particularly the case when you must navigate two sets of tax rules and pensions regulations, and exchange rates between two different jurisdictions.

Get in touch

As you have read, we can help you boost your wealth and bolster your long-term financial prospects. With offices in both the UK and Australia, we are ideally placed to help you – especially if you have assets in both jurisdictions.

If you have any queries regarding your financial planning, please get in touch with us.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

This article is for information only. Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances. All contents are based on our understanding of ATO and HMRC legislation, which is subject to change.