The value of financial planning advice

Can you quantify the value of advice provided by a financial planner? In the US, a study by Russell Investments calculated that in 2022 4.91% of value would be added through rebalancing of investment portfolios, behavioural coaching, customised planning and tax management.

This is a message that was echoed in the UK. In 2017, The International Longevity Centre, a specialist think tank on the impact of longevity on society, published a report called ‘The Value of Financial Advice’. It quantified the value of taking advice for people’s overall financial outcomes. They concluded that fostering an ongoing relationship with a financial adviser leads to better financial outcomes. Those who reported receiving ongoing advice had nearly 50% higher average pension wealth than those only advised at the start.

So, could you benefit from financial advice? We have summarised six key areas where we believe we add value to clients.

Financial planning is fundamentally not about your money, it is about you

We work closely with clients to define their investment goals, identify concerns, and create a comprehensive financial plan to fulfil life objectives. This can include many services beyond investment selection and asset allocation, such as financial planning, estate planning, insurance, or charitable gifting. This can also include education and imparting a certain level of knowledge about investing and other financial matters, which can translate into discipline. By partnering with Gerald Edelman who knows and understands them, clients can make financial and investment decisions in the context of their entire financial picture.

There is value in the time and resources required to manage one’s financial life.

Staying up to date on the changing landscape of investments, financial planning, taxes, and other regulatory matters requires time, expertise, and resources. There is also the coordination of other service providers, such as custodians and asset managers, which is required to execute a comprehensive financial plan. Many people outsource other aspects of their lives to professional service providers because they either understand the complexity of the matter or place a greater value on time gained. By delegating their financial and investment details to Gerald Edelman Wealth, a client can spend more time doing the things that are most important to them.

Many investors may be challenged to remain objective and stay disciplined during volatile markets

Many emotions stem from matters involving money. At Gerald Edelman Wealth, we combine a deep understanding of a client’s financial situation and personal goals with an ability to remain objective when times get tough. This balanced perspective can encourage clients to make rational investment decisions. Often, this means keeping investors focused on the long term and tuning out the noise of distractions that can take them off course.

Cost is identifiable, performance is not. We focus on the former and aspire to the latter

While everyone should understand the fees they are paying for services they receive, purchasing the lowest cost option is not always the best decision. Many factors need to be considered, such as the quality of the service, experience and expertise of the provider, the range of services offered, interactions with the provider, the level of customer service, or the overall experience. Cost is unlikely to be the primary consideration when selecting a physician or lawyer, and the same notion should apply to professional financial advice. We pride ourselves on not charging extra for everything – our clients only pay for the advice they need, not the products they don’t. We are always transparent with our charges.

Life is unpredictable, but a financial plan doesn’t have to be

Gerald Edelman Wealth can assist in planning and preparing for life’s uncertainties, which can help clients stay on track when the unexpected occurs. A client’s goals and circumstances will evolve, and we can bring structure and clarity to financial decisions while helping clients understand new challenges and opportunities that may arise as they move through life.

It’s hard to put a price tag on peace of mind

A study by Morningstar indicated that making sound financial planning decisions can generate 29% more income on average for a retiree. While this is an important uplift, many investors seek a formula or a magic number to help them justify the fees they pay for financial advice. The reality is that every investor has a unique financial journey and helping investors feel positive about their financial position as they move toward achieving their goals can be a major part of the value of professional financial advice.

Five things Gerald Edelman Wealth can help you with:

• Prioritise – Decide on your goals and objectives to create a personalised financial strategy with customised solutions to help you meet them.
• Regularly review – Reviewing and rebalancing your plan as circumstances change.
• Manage your emotions – Helping you stay on track to meet your goals.
• Retirement planning – Developing a plan to withdraw your assets so that you are less likely to outlive your money.
• Considerations – Making you aware of any tax consequences of your investment strategies and withdrawals.

Next steps

What we do is as much about relationships as expertise. Being able to work with an adviser who understands your personal needs is vital for you to continue to benefit from expert advice and see your plans evolve over years.

The first step towards your financial plan is an initial meeting, at our cost, to explore your current position and aspirations.

To arrange your first consultation with us, email David Horowitz or contact us here.

This article is only for general informational and educational purposes. It is not offered as and does not constitute financial advice. You should not act or rely on any information contained in this article without first seeking advice from a professional. The Financial Ombudsman Service is available to handle individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit this site. Gerald Edelman Wealth Limited is an appointed representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority.