#FinancialPlanning #Investing #MoneyManagement
Hey there, fellow financially savvy Redditors! 💸💡
I wanted to pick your brains on the topic of financial planners. Do you think they’re worth it for the average person in this sub who already has a good handle on their money matters? 🤔
I mean, we’re all following the flowcharts, dabbling in stocks and property – but is there still value in seeking professional financial advice?
If you’ve worked with a financial planner before, I’d love to hear about your experience. Did you find it beneficial, and would you recommend it to others?
Here are a few reasons why consulting a financial planner could be worth it for even us financially-savvy individuals:
– They can provide personalized strategies tailored to your specific financial goals. 📈
– A fresh perspective from an expert may uncover blind spots or missed opportunities in your current financial plan. 👀
– They can offer guidance on complex financial situations like estate planning or tax optimization. 💼
So, what do you think? Have you considered working with a financial planner, and if so, why or why not? Let’s discuss and share our insights! 🤗💬
I think the flowchart and wiki are an excellent resource for those earning up to a certain amount or have a certain amount of funds.
But when you are talking about large amounts of capital, salary or serious long term goals basing your finances on stuff you got off the internet for free is worth as much as you paid for it.
Look at what qualified financial *advisers* can do:
[https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/do-you-need-a-financial-adviser](https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/do-you-need-a-financial-adviser)
Not unless you’ve inherited vast sums in a short space of time
For the general population, I’d say yes as they often don’t know the very basics so any advice is good for them.
For someone in this sub who has a basic understanding, will do a bit of reading and ask questions… then no, most probably are very capable to do their finances on their own.
This does of course vary, if you have a huge chunk of money, lots of debt or complicated finances then a financial advisor may be useful.
Similar to cleaners. People can be on a lot of money and not have one, but there are some who think they need it / nice to have (appreciate some places you have to have a cleaner).
Still, its something that can be done on your own.
Caveat: I’m in the industry, so take this with a pinch of salt.
Ultimately, it’s like any service industry. I could hire a personal trainer or come up with my own exercise routine. I could paint my own house or hire a decorator to do it. I could learn to service my car myself or pay a mechanic to do it. Everyone has their own cut-off point of what they’d rather do themselves and what they’d rather pay someone else to do for them.
The whole “put your money in x” is the easy part. That’s what we tend to get judged on by this sub but it overlooks the rest of the financial planning process. There’s a fairly sizeable number of posts from people on here where they’re not asking the right kind of question because they’ve not really thought about their goals or fully developed a financial plan before rushing ahead.
A lot of what a financial planner will go through with someone will be what is on the flowchart but, from what I can recall the mods saying, most of the responses they receive when they delete threads are that the OP has read the flowchart but doesn’t fully understand it. It’s not the right delivery method for everyone and there’s no guarantee that everyone is applying it correctly.
Most financial planners will offer a free initial consultation and I believe most people would benefit from this.
Unless one is earning over £200k and so is subject to the tapered annual allowance on pension contributions, or has received a substantial windfall (£500k+) then IMO there’s nothing that a financial planner can offer which isn’t doable for free by following the flowchart and looking at the wiki.
I’ve been to a couple, and it was worth it.
First, when I was young, they talked to me and my partner about our shared goals and our individual attitude to risk. I think it is enormously helpful to have a neutral 3rd party conduct these conversations. It was pretty revealing!
They also talked us through the various financial products available, whether things like life assurance was worth it, how to buy a property and protect our deposits, and common traps people fall into.
Many years later, we had another session with a different IFA. We explained what we were doing, why we were doing it, and how we planned to achieve our goals. They basically said “Yeah, sounds like you have this figured out. Don’t forget about X, Y, and Z.”
Asking an IFA to manage your money probably isn’t useful unless you are *really* uncertain and want to palm off responsibility elsewhere. Asking an IFA to discuss your finances is usually a good plan – especially if you’re a couple.
If you don’t have anything complicated, it’s not worth it.