Why Would You Use a Financial Planner When You Can Invest Your Money Yourself?

by Julie Wilson

PenLife have been advising clients for almost 40 years on the dos and don’ts of financial planning.

So we’ve heard all of the reasons to NOT seek advice.

Most are quite obvious, such as having no free time, bad experiences, or troubles paying fees. And these are all valid reservations which we’re always happy to reassure people about (this is why we’ve created our 12-month money-back guarantee).

But there’s one excuse we can’t get our heads around: the “I can do it myself” argument…

Sure, you might be able to choose funds that perform OK, which is fine if you’re only investing a menial amount. But when you’re dealing with pensions—savings you’ve been accumulating your entire working life—it’s unlikely you’re going to have expert knowledge.

It takes financial planners years and years to pass the necessary exams to become qualified; and if you’re the type of person who’ll study to that degree and make it your mission to understand it, that’s your prerogative.

But the majority of people aren’t willing to do that. They’ll spend a few hours researching bits and bobs online, then chance their entire savings on what little they’ve picked up. It’s crazy!

We understand it can be uncomfortable to transition to using a financial adviser when you’ve historically managed everything yourself.

It’s hard for proud individuals. But it’s important to know when you’re out of your depth, not just from a financial perspective (e.g., better growth and not losing money to easily avoidable tax traps), but also in terms of stress and worry.

If you’re not 100% confident that you know what you’re doing, then know that it can (and does) keep people awake at night.

Who would choose that? It’s a lose-lose for you, and it’s unhealthy.

As for the fees argument:

Let’s say you spend £20,000 on a new car.
You pay £250 per year on car insurance.
You pay £250 per year on a service & MOT plan.

That’s a pretty basic package, not including gap insurance or additional protection.

It means you would be paying 2.5% of the cost of the asset each year. And not just any asset—one that depreciates in value! Our service costs are 1%, to put that into perspective…

However, if you think you’ve reached the point where you need a hand, request our FREE guide to learn about the value financial planners really add.

Or cut out the middle man and call us today on 01904 661140 to have a FREE initial chat with a qualified adviser.

Julie Wilson
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