I have recently been asked, quite rightly, why, after more than 20 years as a sought after and successful Financial Adviser, I am now suggesting that perhaps 75% of us no longer need the services of a Financial Adviser. Doesn’t seem right does it?
So why?
Two primary reasons. Firstly the change in legislation at the beginning 2013 means that Financial Advisers now have to agree fees with clients rather than having them deducted from the product. And fees are also increasing by up to 100%. A couple of years ago the fee deducted from our investments/pension to pay the adviser was typically 0.5% per annum. Today many advisers expect to receive a fee directly from us of 1% per annum. If we prefer to pay a fixed fee the hourly rate for a senior adviser could exceed £200 per hour. Research from Fidelity and Cass Business School indicates that only 14% of us are prepared to pay fees to Financial Advisers and less than half of that 14% are willing to pay fees at the level required.
Secondly many more of us are happy to do our own research on line and use the “no advice “services offered by companies such as Hargreaves Lansdown and Bestinvest. Whilst those services are truly “no advice” the guides, research documents, reports, etc. are very user friendly as is the simplicity of the valuation and transaction pages.
If the move from a fully advised service to “no advice” is just too much what you may need is not a Financial Adviser but a Financial Coach. Not someone to tell you what to do but someone to teach you what to do. After all you will take much more interest in your money than any adviser. If you don’t trust the financial services world you just have to look for a service which empowers you to get it right for yourself.
So will my Financial Adviser friends be happy about this post? I think not. But perhaps they should be. There will always be a place for well qualified, experienced advisers and if those of us who don’t need their services go elsewhere they will no longer have to adapt their services and processes to deal with clients who don’t need them and resent their fees. They can then concentrate on clients who truly need their expertise and are prepared to pay for it. Everyone wins.
ACTION POINT
If you are one of the fortunate few with invested assets of £250,000 or more and would like to know more about the One on One Personal Coaching Plan you need to email me immediately. There are limited slots which are filling up fast and when they are gone they are gone.
Important information
This document and our on going services are not personal advice. We’ll give you all the help and guidance you need to make your investment and retirement decisions, but we can’t advise you. If you’re not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser.
The value of investments/pension plans can fall or rise depending on market performance.
The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
