What is the value of advice? You may understand who we are and how we work, but commonly many overlook the true value we provide. Studies show that strategic advice from a financial adviser can add real financial value to your wealth. On average, clients of professional firms make an extra 3% – 4%. And the more complex your situation, the more value we can bring to you.

Monetary value

In their 2019 ‘What it’s worth’ report, the International Longevity Centre (ILC) found those who received financial advice in the years 2001 – 2006 were on average £47,706 better off in 2014 – 2016 than their unadvised peers.

They found the wealth uplift from advice comprises of an extra £31,000 of pension savings and over £16,000 extra in non-pension assets.

Here at Balance: Wealth Planning, we are certain of the value we add through our careful financial planning. For example, two areas where we often add notable value include making sure clients use their marriage allowance and optimising the tax position for our retired clients.

This can add around £36,950 of value for a couple, mainly through combined pension wealth.*

*The example above is based on a couple aged 60 maximising their pension allowance each year for 15 years and achieving a nominal investment return of 5% per annum (excluding costs) and where the couple begins to benefit from utilising their marriage allowance, saving further income tax over the same period.

Often the value can be much higher than this and other areas such as inheritance tax and estate planning or capital gains tax planning can add a substantial amount of wealth.

Beyond the numbers

Some of the benefits of planning are intangible and don’t always have a monetary value attached. You cannot see the financial difference straightaway, but the impact on your lifestyle can be significant and almost immediate.

For example, if we can demonstrate that you can retire sooner than you think, afford to double your holiday budget or buy a place in the sun, you will be less wealthy than if you worked for another 10 years. But you will be happier and healthier – and that’s worth a great deal.

These are just a few of the non-financial benefits of financial planning:

• A sense of empowerment when you can see what you have and what is possible
• Financial guidance to help you make better financial decisions in all areas of life
• Gentle challenge or reassurance about your ideas and plans (this can often save you money too)
• Professional oversight, so you don’t have to worry about running out of money during your lifetime or not having enough
• Lots of flexibility to adapt; you are never tied in
• Financial security & peace of mind knowing that you are not alone dealing with the finances – A study by Vanguard found that the emotional value you get from working with a financial adviser, such as your trust in them or personal connection with them, accounts for 45% of the total value of the service.

Value of ongoing advice

Change is inevitable, but it can impact your ability to achieve your long term personal and financial goals. Therefore, ongoing reviews are essential to ensure your plan stays on course.

In fact, evidence from the ILC shows an ongoing relationship with a financial planner leads to better financial outcomes. They found that those who had ongoing advice experienced on average nearly 50% higher pension wealth than those who received advice only once, at the start.

That’s why we believe it’s important to periodically review your plan to account for any changes and to ensure you have the highest possible chance to successfully achieve your goals.

How do we do it?

Here are just five ways we help people to achieve their financial goals whilst maintaining their financial security:

• Having a team of experienced planners who are continually expanding their knowledge and studies, no matter what stage of their career – One of our core values is Growth.
• Dynamic and tax-optimised saving/spending strategy (which helps boost your wealth further)
• Cost-effective implementation by managing investment costs (which helps your wealth grow more)
• Investments that keep to your risk tolerance (helps to minimise risks and maximise your returns)
• Sensible investments (not taking unnecessary risks)

What do we add for you?

We aim to provide education on the importance of financial advice and the impact this has on your well-being. Ultimately, our planning service will improve and strengthen your financial situation; providing the right support, at the right time.

Our promise to you:

• We say what we do, and do what we say.
• We will always act in your best interest at all times. Without exception.
• Give you peace of mind and financial security.

Lastly, our forward-looking planning meetings are designed to ensure that we continue to add value to you throughout our professional relationship.

If you would like help putting your financial plan together, or need to discuss any changes to your plan, then please get in touch and speak to one of our financial planners.