You’ve worked hard to build a secure financial life. You’ve got a good job, a comfortable home, and maybe even some savings tucked away. But with so much conflicting information out there, you might wonder: could a financial advisor really make a difference?
The answer, based on research by Brokers Ireland, is a resounding yes. The numbers don’t lie.
The research shows that those who seek financial advice are better off and achieve their financial goals. Regardless of how much you have to save or invest, make sure you get the best advice for better financial outcomes.
The Power of Professional Guidance
The research found a significant difference between those who use financial advisors and those who go it alone. This includes:
Stronger Financial Position
Those with financial advisors benefit from larger pension pots, more savings and investments, and a wider range of financial protection products that are better suited to their exact requirements (such as Life Assurance and Income Protection).
Greater Confidence:
People who receive financial advice feel more in control of their finances and are more confident about their financial future, including retirement. Great financial advice offers direction and an ability to track your progress and you move towards whatever goal you are hoping to achieve.
Informed Decisions:
Financial advisors help you understand your options and choose the best products and strategies to meet your unique needs. This leads to better financial outcomes in the long run. There are a plethora of products on the market and some might be redundant depending on your situation – but you need to have read the small print…which is what the financial advisor does.
Risk and Goals:
Nobody wants to risk losing large amounts of their hard earned money. But what is risky? How much risk are you willing to take? We talk to clients who have previously misunderstood risk, and chose options that didn’t actually align with their goals. They say they don’t want to take any ‘risks’ with their money, but ultimately chose savings and investment options that lost them money slowly, rather than making them money slowly.
We believe the value of advice is often in the process of explaining the outcomes of the decisions at hand, and giving people confidence to make better, more assertive choices that align with their goals.
Financial Planning for Every Stage of Life
As we age, our financial needs change. Here’s how a financial advisor can be especially helpful at different stages (we’re making some assumptions here):
Young Professionals (30s)
Starting a pension plan early is very beneficial, and a financial advisor can guide you on contribution amounts and investment options. They can also help with budgeting and saving for future goals such as a home purchase or starting a family.
Mid-Career (40s & 50s)
This is a time to focus on growing your nest egg and protecting your family’s financial security. A financial advisor can help you maximise your pension contributions, review your life insurance coverage, and plan for your children’s education.
Pre-Retirement (50s & 60s)
Now’s the time to fine-tune your retirement strategy. A financial advisor can assess your retirement income needs, suggest investment strategies for your existing savings, and help you navigate the complexities of accessing your pension. Sometimes delaying your retirement can pay dividends… but only if you know how to read the market.
Beyond the Numbers: Building Financial Literacy
Financial advisors don’t just help you with investments; they empower you to make informed financial decisions, but what does that look like in reality?
- Understanding Your Options: Financial advisors explain the complexities of financial products in clear terms, helping you choose the ones that best suit your goals and risk tolerance. Even the most financial savvy clients are unable to keep up with the evolving products on the market – that’s the role of an advisor.
- Tax Efficiency: They ensure you’re taking advantage of all available tax benefits on pensions, investments, and other financial products. This is very useful when running your own company as there are tax efficiencies that can be achieved.
- Long-Term Planning: They help you set realistic financial goals and develop a personalised roadmap to achieve them, considering factors such as inflation and potential future healthcare needs. When we discuss the future with clients, we never assume everyone wants the same outcome (retirement). Some of our clients are happy working beyond their 60’s – we ensure that their money is also working.
Finding the Right Financial Advisor in Ireland
Finding the right financial advisor is an important step towards a secure financial future, but with so many options, how do you choose the right one?
Now we know that word of mouth is powerful…many people seek advice from family and friends. However, when it comes to your future, wouldn’t you prefer to have tailored advice that comes from an independent advisor who knows the various products and services and can make recommendations on the same?
If you are starting the search, we recommend taking the first step. Prioritise qualifications and experience. Look for an advisor with a proven track record and the necessary certifications. The Qualified Financial Advisor (QFA) certification is a basic requirement. These credentials demonstrate the advisor’s commitment to professional development and adherence to ethical standards. But that should not be the sum total of their qualification.
Once you’ve identified a pool of qualified advisors, consider their communication style and service offerings. Do they explain complex financial concepts in a way you can understand? Does their approach feel collaborative, allowing you to express your goals and concerns openly? Do they offer comprehensive financial planning, or do they specialise in specific areas like retirement planning or wealth management? Matching your needs with the advisor’s expertise is crucial for a successful partnership.
Transparency regarding fees is also essential. Financial advisors typically charge a percentage of assets under management (AUM) or a flat fee for specific services. Understanding their fee structure upfront allows you to compare costs and make an informed decision that aligns with your budget. Don’t hesitate to ask about additional expenses associated with investment products they recommend. By prioritising qualifications, clear communication, and fee transparency, you can confidently select a financial advisor who will become a valuable partner on your financial journey.
The Bottom Line
The Brokers Ireland study clearly demonstrates the value of financial advice. By working with a qualified professional, you can achieve greater financial security, build a more robust retirement plan, and gain the peace of mind that comes with knowing your finances are on track.
Here to help you save for today, tomorrow and for the unexpected.
At Lynx Financial Services, our team of experienced financial advisors are dedicated to helping you achieve your financial goals. We understand that everyone’s circumstances are unique, and we take a personalised approach to financial planning.
We’ll work with you to assess your needs, risk tolerance, and investment goals, and develop a tailored plan to secure your financial future. Let us help you navigate the complexities of financial planning and make informed decisions about your retirement income. No jargon, no hidden fees, just plain talking, strategic financial advice.
