As a company that publicly proclaims to be Financial Planners, we’re often confronted with an increasingly creative list of objections as to why people don’t want our help. As it stands, only 10% of people in the UK use the services of a Financial Planner or Adviser, so it’s likely that you are one of the unconverted majority. So why don’t you want any help?
Financial planners often take some of the cost, hassle and stress out of managing your money yourself, and offer expert insight and support.
“I can’t afford it”
Many of the clients we meet come along to our first meeting armed with the perceived notation that my services are going to cost the Earth. Cost is a huge obstacle, with many believing that what a Financial Planner will charge them outweighs any potential gain. We completely understand this standpoint; however, we believe it is wise to accurately assess a purchase on whether the resultant enjoyment or gains supersede the initial price tag, rather than simply base a decision on assumptions. A February 2018 study by the stockbroker ‘Numis’ revealed that people who seek help are more likely to increase their wealth than those who do not. Correct planning could boost your wealth in the long-term, enabling you to achieve more of your goals and achieve security in your life for generations to come.
“Financial advice is only for the very wealthy”
Many people don’t seek financial advice because they don’t believe their assets or savings warrant that kind of attention. But the reality is that good financial planning could significantly increase their finances, simply by helping them make the correct well-informed choices. Record-breaking athletes were once untrained novices; getting good advice at the start of journey will help to put you on the right track and give you the tools to become winners.
“I don’t like risk”
For anyone who has never invested, the thought of putting hard-earned money into stocks, shares or other risk-laden vehicles feels like gambling. Will they win? Are the more likely to lose? Investments go up and down- that is an irrefutable truth- and people are understandably wary of a complex world they don’t understand.
Also, let’s factor in the undeniable fact that many people simply don’t trust financial advisers. If you’ve seen or read ‘The Wolf of Wall Street’, you’ll understand why so many people hate financial types. ‘Con-men’, ‘crooks’, ‘money-grabbers’ are some of the insults banned around, and sadly, sometimes they are completely justified. The financial market has seen its fair share of scandals over the years, but it’s important to remember that there are plenty of reputable professionals out there, and there are a tremendous range of investment opportunities available, many of which would suit even the most risk-averse personality.
There are many other misconceptions we have heard in the last two decades of financial planning, but cost, feeling ‘unworthy’ and risk are the concerns I hear time and time again. However, and we’re sure our clients will agree, once you peer past those ideas, you can often see that financial planning is actually affordable, worthwhile and incredibly beneficial.
Making the right decision on your finances is hugely important and really should be done only with the help of a professional.