Is It Worth Paying for Advice If You Already Invest Yourself?

Investing is only one part of your financial picture.

You might also need to think about your pension, tax, savings, retirement plans and how you’ll eventually use the money you’ve built up.

A financial adviser can help you look at how these different pieces fit together, rather than considering each decision in isolation.

They might help you work out whether your pension contributions are on track, how to make the most of all the various tax allowances or how to balance investing for the future with more immediate financial priorities.
Advice could be particularly valuable if your circumstances are changing.

If you’re approaching retirement, have received an inheritance, are going through a divorce or your earnings have increased, it could be a good time to get advice.

Managing your own investments can give you control, but it also means you’re responsible for deciding what to invest in, how much risk to take and when to make changes.

If you’re comfortable researching investments, understand the risks and have a plan you can stick to, you may be happy continuing on your own.
But if you’re unsure whether your investments are suitable, you’re worried about market falls or you’re tempted to make frequent changes in response to headlines, an adviser could help you review your approach and make decisions with greater confidence.

That doesn’t mean an adviser can guarantee better returns or prevent losses. The value may lie in helping you make informed decisions, avoiding mistakes that could undermine your long-term plans, and gaining peace of mind.

Financial advice isn’t free, so it’s important to understand what you would pay and what you would receive in return.
An adviser might charge a fixed fee, an hourly rate or a percentage of the money they manage for you. The right comparison isn’t simply whether you could invest more cheaply yourself.

It’s whether the service provides value that’s greater than the cost.
Royal London research with the International Longevity Centre found that people who received financial advice between 2001 and 2006 had, on average, £47,706 more in pension and other financial wealth around a decade later than similar people who had not taken advice. The researchers estimated that this included around £31,000 in additional pension wealth and £16,000 in other financial assets.

This doesn’t mean an adviser will automatically make you £47,000 better off, or that the benefits will outweigh the fees for everyone.

But it does suggest that good advice can have a lasting financial impact. So when weighing up the cost, consider not just the fee, but whether advice could help you make better decisions about your money over the long term.
It’s also worth remembering that value can be felt in different ways.

For example, the value might come from helping you create a plan for retirement that makes you feel positive about the future, gives you more clarity about what you need to do, or gives you a lasting sense of security and peace of mind.

Paying for advice doesn’t have to mean handing over control of your investments or signing up to an ongoing service.

Depending on your needs, you might benefit from a one-off financial review or advice about a specific decision.
Alternatively, if your finances are more complicated or you want support as your circumstances change, an ongoing relationship with an adviser may be more useful.

Be clear about what you want help with before you approach an adviser. That will make it easier to compare services and the fees for those services.

The answer to this is – yes. Getting financial advice doesn’t necessarily mean giving up control of your investments.

You could continue choosing and managing your own investments while asking an adviser to help with your wider financial plan, pension decisions or tax planning. You can discuss what you want to manage yourself and what you’d like help with.

The important thing is to find a service that fits your needs, rather than paying for support you don’t want or need.

It could be worthwhile if it helps you make better-informed decisions about your overall finances, deal with complex questions or feel more confident about your plans.

It may be less necessary if your finances are straightforward, you understand your investments and you’re comfortable managing everything yourself.

But you don’t have to choose between doing everything yourself and handing everything over to an adviser. The best approach is the one that suits your circumstances, gives you the support you need and justifies the cost.

Speaking with an independent financial adviser could help you better understand your circumstances and decide the best next steps for you.