Why financial advice is about peace of mind, rather than just investment returns

Financial advice is a broad-reaching discipline, offering various different benefits that combine to add value to your life.

One reason you might turn to an adviser is for help managing your investments. Whether you’re investing in your pension for your long-term future, or in an ISA or General Investment Account (GIA) for medium-term goals, you might seek the services of a professional to help you design a portfolio aligned with your risk tolerance to generate the returns you need.

Interestingly, according to a survey of those who work with an adviser, the peace of mind clients gain is another of the biggest benefits they receive.

So, find out why, and how we can help you achieve true financial peace of mind.

More than half of investors use an adviser for peace of mind

The data that shows the value of peace of mind comes from a survey of 1,000 financial advice clients who have over £300,000 in investable assets.

As published by FTAdviser, the survey found that 54% of investors who work with an adviser do so because it offers them peace of mind. This was one of the major benefits that clients named, compared to:

• 44% who said they attribute value to having their tax managed efficiently
• 35% who said they do so for the adviser’s financial expertise
• 17% who said they don’t have time to manage their money themselves.

While this may seem surprising, it actually makes sense when you consider the true purpose of financial advice and planning.

The whole point of financial planning is to organise your wealth so that you can reach your goals for the future.

Whether you want to move to a dream home, retire at 60, or provide financial support to your children and grandchildren, everyone has different targets for what they want to achieve in life.

Whatever your personal goals, you know that you’ll need to save and invest in a way that gives you “enough” to achieve them. An adviser can certainly help here, making recommendations and managing your savings and investments in a way that’s suitable for you.

But ultimately, the “softer” side of what financial advice offers is what it’s really all about. It’s crucial to know that:

• An expert has a handle on your money, especially during periods of market uncertainty
• Your wealth is suitably organised, according to your needs and risk tolerance
• You’ll have enough to live your desired lifestyle
• You’re on track to meet your goals
• You have financial security.

These less tangible benefits are a significant part of what makes financial advice valuable – and that’s why more than half of the surveyed investors recognise it to be the case.

Investment returns matter – but they aren’t the “be-all and end-all”

Of course, just because many clients say that peace of mind is one of the most important aspects of advice to them, it doesn’t mean that investment returns aren’t important – in fact, 66% of survey respondents described investment returns as “critical”.

Generating a return on your money certainly matters. Whether through a pension, a Stocks and Shares ISA, or a GIA, investing your money offers you the opportunity to grow your wealth over time.

This ideally keeps your money level with or ahead of the rate of inflation so that you maintain or increase its value in real terms.

You can benefit from compound returns – that is, growth on growth – when investing over a longer time frame. You can also make the most of certain tax-efficient benefits, whether that’s tax relief on your pension contributions, or growth free from Income Tax and Capital Gains Tax (CGT) in a pension or ISA.

But even so, investment returns are still not the be-all and end-all. They may well be the vehicle that drives you towards what you want to achieve, but your goals are the real destination – and a big part of that destination will likely be in knowing that you are financially stable and secure.

So, while creating an investment portfolio that suits your needs is certainly important, remember that having reassurance and peace of mind over your money can be incredibly valuable.

Get in touch

If you’d like to achieve financial peace of mind, we can help at Britannic Place.

Email info@britannicplace.co.uk or call 01905 419890 today to find out more.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.