It’s the question millions of people ask themselves and no wonder as just a quarter of the population seek professional financial advice.
That leaves three quarters of UK adults, some 39million people, not taking any form of professional advice or guidance around their finances, according to research from Royal London around the advice gap.
The biggest barrier is people being put off by the cost, while others think they can take care of their own cash and some have never considered it as something they might need.
There are also those who are too proud or embarrassed to talk about money and others who don’t really understand what an adviser does.
On the other hand, some people think their finances are too simple and advisers are only interested in people who are rich.
Factors to consider when considering financial advice
There are no hard and fast rules around who can or cannot get financial advice. But the value of your assets can have an impact. Many advisers will not take on a client unless their assets (pension, investments etc.) are worth a minimum amount – typically an average of between £75,000 and £100,000.
Other factors around whether you need financial advice or not include your personal circumstances and your needs and goals. Also, the products or services you are looking for, your financial experience and level of financial understanding, and the complexity of your needs.
If you are simply looking for a helping hand around managing your money, such as details around financial products that are available (what they offer and if you are eligible). Or you want to know the best buys on, say, ISAs and savings accounts. Financial guidance may be enough to help you make your decisions.
There is a lot of free information available online, from tips to articles and best buy tables, as well as in newspapers and magazines.
This isn’t regulated, as it isn’t personalised recommendations, just general information around finances and products to help people narrow down their choices.
I set up Frankie’s, a financial education network, to do just this. Offer a first step and a relaxed, informative place where people can dip their toes into the financial world. My aim is to help educate, particularly women, around finances and products, so people have the knowledge and tools they need to be bolder and confident when making financial decisions.
Whereas if you are looking for something more in-depth – plans and strategies to help you reach your goals, help around investing a large sum of money, need help with tax or inheritance planning – you should think about getting financial advice. Something the team at FSWM can support with.
Advice is regulated by the Financial Conduct Authority. A qualified professional will look at your situation and use their expertise and industry knowledge to make personalised recommendations to suit your individual needs.
Choosing a financial advisor
Many advisers will offer a free initial consultation, a good opportunity to get to know each other and see if you connect well. I’m an advocate for building a relationship with your advisor, and ensuring they understand your personal needs and goals, and can help you to find the best way to achieve them.
While it may not be a straight-forward yes or no as to who needs financial advice. One thing is for sure. Better financial education in schools is vital and would be an excellent first step, to help everyone have a better understanding of managing their money and getting the best outcomes.
It would also help to get more people engaged with financial products and planning from an early age – ensuring they feel confident to make better informed decisions throughout their lives.
If you’re interested in exploring more about how financial advice might work for you, get in touch for a confidential chat.