Some people might hesitate to seek financial advice because they’re concerned about the cost, but the real question is: “Can you afford not to?"

Clearly, any financial products (and associated risk) you buy as a result of advice should be affordable, and an IFA will want to understand your circumstances and financial position before making a recommendation. However, it’s worth noting that advice fees are usually calculated as a small percentage of the money you have invested and can usually be deducted automatically from those investments, rather than you having to pay out a cash lump sum.

People who paid for financial advice enjoyed an average uplift of £48,000

The long-term value of financial advice

As advocates of financial planning, it’s up to us to convince more people of the value of advice. The return on your investment won’t be immediate (although there is immediate value in the peace of mind that comes with having a plan), but the longer-term benefits can be life-changing.

A study by the International Longevity Centre (ILC), a respected think tank, has discovered that people who paid for financial advice between 2001 and 2006 enjoyed an average uplift of £48,000 in their wealth after ten years compared to those who didn’t.

The study also calculated that over those ten years, the benefit of additional wealth accumulation was 2,400% greater than the cost of the initial advice.

And if you’ve ever thought, “I’m not rich enough to need to pay for financial advice”, the study found that those termed as ‘just getting by’ benefitted from a boost of 24% to their pension wealth after ten years, compared to 11% of their more affluent counterparts.

According to this research, whatever socio-economic band you fit into, seeking professional financial planning and advice from an independent financial adviser is highly likely to improve your financial position well beyond the cost of the service.

The risk of DIY financial planning

In contrast, a study by Moneybox, the savings app, revealed that 27% of the 4,000 people surveyed regretted not planning their future finances better, with 37% saying they believed they’d missed out on opportunities to grow their money. And 20% felt they would have been better off if they’d known who to ask for better advice or guidance.

Managing your money to ensure you have enough to meet the future goals you’ve set yourself requires careful planning, and regular reviews. With the help of a financial expert, you can avoid many of the common pitfalls, like underestimating the impact of inflation, not taking full advantage of all the tax breaks open to you and buying the wrong financial products.

An investment in your financial future

At Amber River, we believe you should view the expertise of an IFA as an investment in your future.

An IFA will start by painting a picture of your life – they’ll seek to understand your current situation, any potential challenges you may face, and your future goals and aspirations. Only then can they create a plan that’s perfectly tailored to navigate the ups and downs of your life. We call this personalised approach ‘life landscaping’’ – a process that ensures your financial plan grows and adapts with you.

Why should you pay for financial advice?

There are many benefits to taking financial advice from an Independent Financial Adviser. Your adviser will:

  • use all applicable tax allowances and reliefs. This will allow your money to have the potential to grow faster.
  • know how to maximise your protection under the Financial Services Compensation Scheme (FSCS). This will ensure your money is safer.
  • use cashflow modelling tools to show how you can maximise your returns for the level of risk you’re comfortable with and can afford to take. This can give better potential performance for your investments.
  • conduct robust due diligence on all funds and products before recommending them to you. This will save you time and worry, while giving you reassurance.
  • will use their skills and knowledge to guide you through whatever life throws are you, such as a death in the family, divorce, or stock market crashes.

Amber River advisers only offer independent advice

Choosing an independent adviser is important to building a financial plan tailored to your precise needs. That’s because unlike restricted advisers, who are tied to specific product providers, they have access to the entire range of financial products on the market.

With Amber River’s network of experienced IFAs, you gain access to bespoke financial planning that’s affordable, meets your immediate needs and secures your future prosperity. Our advisers are committed to providing independent, comprehensive advice tailored just for you.

Get in touch

If you want to arrange an appointment with an Amber River financial planner in your area, please call 0800 915 0000, or alternatively use our contact form here.