There is little doubt that financial advisers add real value to clients – clear goals, peace of mind, financial security and confidence in the future.
With the growing transparency of fees (platforms, portfolios and advice) the need to show this value is growing. The FCA has expressed more than a passing interest.
But the price of advice is not the same as the value. As one of Oscar Wilde’s characters famously noted, “A cynic knows the price of everything and the value of nothing”.
Below are 20 things that our advisers do to add value for you and all our clients.
1. We help you determine the rate at which you need to save at to meet your long-term needs.
Value: confidence in the future
2. We assess how much risk you should take and need to take to achieve your goals.
Value: peace of mind
3. We help couples determine how they combine their objectives together into a single plan in a cost effective and tax efficient way. And ensure that everyone is involved in the decision making.
Value: peace of mind
4. We help you determine how much money you’ll need to retire and when you can retire.
Value: peace of mind
5. We help you put the right asset classes in the right amounts in your portfolio.
Value: reducing risk and potentially boosting your returns
6. We review all existing pensions and investments, including pensions from any previous employers
Value: you may be able to retire earlier, take more tax-free cash, increase life cover / flexibility, plan for IHT
7. After you retire, we help you figure out how much you can / should take out for living expenses and keep updating the numbers as your circumstances evolve.
Value: potentially prevent you from running out of money
8. We determine the most efficient way to divide your investments between tax-exempt, tax-deferred and taxable accounts (ISAs, bonds and GIAs)
Value: boost your after-tax returns
9. We regularly rebalance your assets.
Value: to help control risk and potentially add to your returns
10. We select the new generation of low-cost index funds to reduce your expenses.
Value: could add more to your annual returns
11. We prevent you from making emotional investment mistakes during inevitable market volatility, both on the upside and the downside.
Value: potentially tens of thousands of pounds
12. We help you choose the right ISA for next year. And making sure you put the most tax efficient assets in your ISA.
Value: every little extra return helps
13. We help you select funds and contributions into your employer’s retirement plan.
Value: potentially tens of thousands of pounds
14. We harvest tax losses and gains when appropriate. Use your CGT allowance, offset gains and losses.
Value: potentially thousands of pounds
Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. *Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
15. We help you determine what kinds of insurance you need, how much, and the best way to buy cover at low cost.
Value: peace of mind and potential savings
16. We make sure life insurance is written in the right trust.
Value: benefits are paid quickly to the right people in as tax effective manner as possible – potentially saving thousands of pounds in tax
17. We help you with estate planning and long-term care provision. Make a will. Sort out powers of attorney.
Value: potentially getting additional benefits to your heirs
18. We help you make decisions about charitable giving.
Value: potentially boosting what the charity receives from your gift
*The value of tax savings depends on your individual circumstances. Tax laws can change.
19. We help you make decisions about giving money to your children, grandchildren or others.
Value: potentially priceless
20. We help you with setting aside money for education for children, grandchildren or others.
Value: a long-term gift that can last for decades
If you’d like to hear more on how advisers can add value contact Adam or anyone on the team at Askaig Newington.
*Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.
*Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.